3 Potential Reddit Stocks

Potential Reddit stocks like HIVE Blockchain Technologies (TSXV:HIVE) Should be on your radar.

| More on:
investment research

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Reddit stocks are here to stay. Retail investors have figured out that they can use social media to collectively deploy maneuvers that were previously only available to institutions. The short squeezes should continue in the near future unless regulators change the rules. 

That’s probably why you might want to add some of these potential Reddit stocks to your watch list. Here are my top three picks. 

Potential Reddit stock #1

U.S.-based, Canada-listed MedMen Enterprises (CNSX:MMEN) is a prime candidate for potential Reddit stock. The cannabis dispensary has been beaten down in recent years after the departure of its CEO. When the cannabis stock bubble popped, it pushed MedMen down further. 

Now, the stock is trading 97% lower than its all-time high in 2019. Short sellers are betting on an eventual bankruptcy, which means the stock is ripe for a short squeeze and could be a potential Reddit stock. The stock does get some mentions on the popular WallStreetBets Reddit forum. 

Some retail investors argue that MedMen’s network of physical dispensaries puts a floor on its valuation. The value of these hard assets could be unlocked by better leadership or a potential merger or acquisition. 

In short, there’s plenty of meme-worthy potential here. 

Potential Reddit stock #2

HIVE Blockchain Technologies (TSXV:HIVE) is arguably a safer bet than any cannabis or failing cinema stock. And the fact that a crypto stock would be considered “safe” is probably an indication of how much the stock market has changed over the past year. 

Nevertheless, HIVE is working with robust fundamentals and a surprisingly bright outlook. China’s clampdown on Bitcoin mining firms effectively eliminates the competition for HIVE. The difficulty of mining each incremental BTC has halved since Chinese authorities started moving on domestic operators last month. 

Despite this trend and the fact that Bitcoin could rebound sharply as it has in the past, short-sellers have been betting against the stock aggressively. 23.5% of Hive stock’s daily traded volume is based on short bets. That’s what makes it a potential Reddit stock that could see a dramatic leg up if retail investors recognize it.

Potential Reddit stock #3

Cineplex (TSX:CGX) is my final pick for potential Reddit stock. Just like its American counterpart, Cineplex stock has been beaten down over the past year. It’s also been a top target for short-sellers. Now that the economy is reopening and movies are back, Cineplex could see a sudden turnaround.

My Fool colleague Andrew Button believes this potential Reddit stock has more potential than its American counterpart. Based on the company’s lower price-to-sales ratio, Cineplex is far less risky. 

Meanwhile,  about 20% of CGX’s volume is short. That makes it a prime candidate for a short squeeze. Keep an eye on this potential Reddit stock as moviegoers head back to the big screen this summer. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends CINEPLEX INC. Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. 

More on Investing

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Stocks for Beginners

New Investors: Follow the KISS Model With These 3 TSX Stocks

These TSX stocks keep it super simple for new investors. You'll need each of these services over the next decade…

Read more »

stock research, analyze data
Dividend Stocks

RRSP Investors: 1 Cheap TSX Dividend Stock to Buy Now and Own for 35 Years

RRSP investors can still find top TSX dividend stocks to buy at discounted prices.

Read more »

A airplane sits on a runway.
Investing

Why Did Bombardier (TSX:BBD.B) Stock Surge Over 75% in a Month?

Bombardier (TSX:BBD.B) stock has surged over 75% in last 30 days after strong second-quarter earnings. Is it a buy at…

Read more »

financial freedom sign
Stocks for Beginners

Millennials: Pay Down Debt and Get Rich in Just 1 Decade

Millennials continue to have huge debt on their hands, but they can pay it off and become rich by getting…

Read more »

Cogs turning against each other
Dividend Stocks

2 of the Safest Stocks (With Dividends) to Buy in Canada Now

Here are two of the safest stocks investors in Canada can buy now.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Got $1,000? Buy These 3 Top Growth Stocks

These three Canadian growth stocks could deliver superior returns over the long run.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Top Canadian Value Stocks Worth Buying Right Now

Here's why Alimentation Couche-Tard (TSX:ATD) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are two top value stocks to consider right now.

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Ivanhoe (TSX:IVN) Had a Record Quarter: Should You Buy the Stock Today?

Ivanhoe Mines Ltd. (TSX:IVN) delivered record profits in its Q2 2022 earnings, which should spur investors to look hard at…

Read more »