As 2021 comes to a close, the defining investing trend of the year (meme stock madness) is admittedly on the wane. Unlike earlier this year, investors aren’t exactly bidding up as many stocks, including penny stocks, “to the moon” as much anymore. Especially as other speculative asset classes, like cryptocurrencies, have come back in vogue.
That said, I wouldn’t say this phenomenon is fully over. Retail trading, the primary driver of this phenomenon, may be down from where it was earlier this year. But the percentage of individual investors actively trading stocks remains well above where it stood before the Covid-19 pandemic.
Among this pool of investors, there are still plenty looking to trade high-risk, high-return stocks. The key to profiting from this dynamic? Finding the names with a combination of positive news and plenty of hype on platforms like Reddit’s r/WallStreetBets could result in an epic, upward surge in price.
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So, which penny stocks stand to make such moves between now and year’s end? These seven stocks have a shot of spiking in the coming weeks:
- Vinco Ventures (NASDAQ:BBIG)
- Grom Social Enterprises (NASDAQ:GROM)
- Globalstar (NYSEAMERICAN:GSAT)
- Kaival Brands (NASDAQ:KAVL)
- Senseonics (NYSEAMERICAN:SENS)
- Super League Gaming (NASDAQ:SLGG)
- Zomedica (NYSEAMERICAN:ZOM)
Penny Stocks With Explosive Potential: Vinco Ventures (BBIG)
Source: shutterstock.com/Postmodern Studio
After a meme-driven move to as much as $12.49 per share back in September, BBIG stock has fallen back to penny stock levels (under $5 per share) in recent weeks.
Yet while it seems like the meme crowd is making their exit, it may be too soon to say “the party’s over” with Vinco. Why? While I have taken a cautious view of the company, due to its complex structure, and the sketchy details it’s provided to investors, it still has a shot of proving its skeptics wrong.
Why? Namely, due to the potential of its key holding, an indirect 40% stake in Lomotif. Soon to be rebranded Lomo, it’s a video-sharing site that is trying to turn itself into the next TikTok. But while it’ll be years before Lomotif has any chance of hitting TikTok-level success, BBIG shares could make another leap much sooner than that.
For one, the pending spinoff of its NFT (non-fungible token) business, Cryptyde. This event may lead to an en-masse move back into shares, ahead of its completion. The release of more detailed financial information could give it a boost too. Particularly more info about its planned merger with ZASH Global (which it partnered with on the Lomotif investment). I’d tread carefully, as it has many of the hallmarks of flash-in-the-pan penny stocks, but I wouldn’t write it off just yet.
Grom Social Enterprises (GROM)
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Grom Social Enterprises, which operates a more family-friendly social media platform, has taken off in the past month. Trading for under $2 per share in late September, even as the meme hype surrounding it has taken a breather, it’s still up over 100% from where it was just a few months ago.
However, despite its latest meme-driven run appearing to be fading, I wouldn’t discount its chances of going on yet another rollercoaster ride. Mainly, because of how much it moved last month on just a small bit of news. As my InvestorPlace colleague Christopher MacDonald wrote Oct 22, its last hot run was driven by news of Grom adding increased safety features to its platform, plus news of a successful capital raise through a private placement.
If these types of developments (small potatoes in the grand scheme of things) could spark such big moves? It’s easy to see the next updates from the company having a similar effect. The caveat? Buying this is more of a bet that a second round of mania is in store, and less of a bet on the company’s underlying fundamentals.
Although the sole analyst covering this stock projects its sales to nearly double between 2021 and 2022 (from $10.4 million to $19.9 million), the company’s middling results in prior year cast doubt as to whether this is attainable. If the meme hype fails to return, and the company releases numbers that fall short of these projections, a big drop in price will likely follow. Caution is key, but if you’re looking for a low-priced meme play that could trend again, this may be the ticket.
Penny Stocks With Explosive Potential: Globalstar (GSAT)
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Rumors of it signing on Apple (NASDAQ:AAPL) as a customer has resulted in wild swings in the price of GSAT stock. Unfortunately, as our Louis Navellier recently wrote, it isn’t likely that the tech giant will make a deal with Apple to provide satellite connectivity for iPhones.
The silver lining? This isn’t the only potential catalyst that could send this stock back into orbit. With its new focus on providing connectivity for the fast-growing internet of things (IoT) space, it has the potential to lock down big ticket deals with other major companies.
With its low-stock price, any sort of deal news will likely result in a big spike in price for shares. What’s also appealing with Globalstar is that its underlying value may vastly exceed what the market estimates the company is currently worth.
As B. Riley’s Mike Crawford argued in his “buy” rating on the stock back in June, the potential value of its C-band spectrum, plus other “hidden assets,” justifies giving it a price target of around $3.25 per share. Not bad for a stock trading for just $1.60 per share today! With the Apple rumors no longer priced into it, and the potential for it to zoom if other potential deals become reality, keep an eye on GSAT stock.
Kaival Brands (KAVL)
Source: Shutterstock
Like GROM stock, KAVL stock is another low-priced name that’s more recently popped on the radar of meme traders.
As InvestorPlace’s Samuel O’Brient reported last week, shares shot up in price on Oct. 27, following news of the Food and Drug Administration (FDA) giving an administrative stay to a marketing denial order the agency gave one of the company’s key products (Bidi).
With this administrative stay, Kaival can proceed with selling the product while it’s under regulatory review. So, what’s the appeal of buying it? Its recent meme wave has ended, but another rally could be in the cards–assuming further action from the FDA for Bidi is favorable to the company. Before rushing out to buy it, however, keep in mind the risks.
An unfavorable FDA ruling could mean a dramatic decline in price. So too could something like a dilutive capital raise. While it just did one in late September, it may have to execute another one down the road, given its recent operating losses. If you can stomach the risk, give it a closer look. Otherwise, you may want to consider other penny stocks that, while risky, may not be as risky as this one.
Penny Stocks With Explosive Potential: Senseonics (SENS)
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Taking off during the first meme wave, Senseonics has held onto most of its gains. And for good reason: in time, its flagship product, Eversense, a continuous glucose monitoring (CGM) system, could become a widely used product among patients with diabetes.
Especially, once it obtains FDA approval for an 180 day version of its product. Once it’s able to market this monitor, which only has to be replaced twice a year, its sales are expected to take off. It’ll become less expensive, and therefore more accessible, alternative to traditional glucose monitoring methods. Partnered with a leader in the diabetes product space, Ascensia Diabetes Care, it’s well positioned to ramp up commercialization when the time comes.
With a market capitalization of $1.73 billion, at today’s prices (just under $4 per share), much of its future upside potential is already baked into the SENS stock price. However, any sort of progress with the FDA will likely help it move higher. Perhaps, back above penny stock levels and toward its high of $5.56 per share.
Add in the potential for it to get short-squeezed, due to its high short interest (19.2% of outstanding float), and there’s a lot on the table for Senseonics to rally once again in the near-term.
Super League Gaming (SLGG)
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As the name suggests, Super League Gaming is primarily in the esports business. Earlier this year, when esports plays were popular, shares traded for substantially more than what they trade for today (around $3.30 per share).
In recent weeks, enthusiasm for SLGG stock has picked up. But not due to its main business of operating esports platforms. Instead, as our William White reported Nov. 2, it has to do with the company’s recent purchase of Bloxbiz, a company that sells ads displayed within metaverse environments, such as through Roblox (NYSE:RBLX).
The latest buzz surrounding this is no surprise, given that Facebook’s (NASDAQ:FB) name change to Meta has been a rising wave, lifting the boats of anything with either the phrase “meta” in its name, or in the case of Super League Gaming, anything associated with the metaverse.
Of course, buying this stock on “meta madness” alone doesn’t make much sense. In a few weeks, the run-up in all things meta will likely reverse. But given the possibility that this latest bolt-on purchase puts it on the path to growing its revenues? Buying now, while it’s still down massively from its high, could prove to be a profitable move in hindsight.
Penny Stocks With Explosive Potential: Zomedica (ZOM)
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As you likely know, Zomedica was one of the most popular penny stocks during the initial meme stock boom. Excitement over the company’s Truforma pet diagnostics platform sent it from well under $1 per share, to as much as $2.91 per share.
Flash forward to now, and it seems like the boom times have long ended for ZOM stock. It’s not only back to sub-$1 per share prices, but the company is still struggling to get the commercialization of Truforma off the ground.
Mostly, because of delays in rolling out the assays used with the Truforma system. For now, it’s going to be tough for the company to find veterinary practices interested in purchasing the device. However, once the assays are available, the resulting bump up in sales for its flagship product could send it back over $1 per share once more.
Along with this, there is something else that could help Zomedica move in the right direction once again. Its recent purchase of Pulse Veterinary Technologies could be the start of an acquisition spree, which would be an effective use of the millions it raised through a secondary offering earlier this year. Acquiring businesses and potentially wringing out cost efficiencies could help create shareholder value.