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June 8, 2021, 2:52 p.m. EDT

Meme Penny Stocks Are Here to Stay; 3 For Your Summer Watchlist

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Jun 08, 2021 (Penny Stocks via COMTEX) -- 3 Meme Penny Stocks For Your June Watchlist

Meme penny stocks are here to stay. While it began as more or less of a joke, these small-caps have become extremely popular among all types of investors. But before we get into what they are, let's talk about penny stocks . When investing in any stocks under $5 , the first thing to know is that volatility is high. This is due to the combination of low prices and high volume. Penny stocks are not for everyone and trading them takes careful consideration and experience.

Next, it's important to remember that having a trading education is extremely important. Because these stocks move so quickly, investors can win big or lose just as big in a matter of a few minutes or hours. This should not serve to scare you, but rather it illustrates how fast things can move when it comes to small caps.

Meme Penny Stocks; To Buy or Not to Buy?

In a market like today, we find stocks driven in many unconventional ways. In case you have been living under a rock, Reddit's 'wallstreetbets' has been the root cause for major gains in many popular securities.

Blue chips like GameStop Corp. ( NYSE: GME ) and AMC Entertainment Holdings Inc. ( NYSE: AMC ) have seen tremendous growth for no reason other than being meme stocks. These companies both have an incredible bullish sentiment from retail traders, despite rather poor performance and with AMC, a high chance of bankruptcy several months ago.

The internet, and more specifically social media, has drastically changed how news is relayed. With access to international and domestic news at the touch of a button, current events have never been more accessible. This rapid stream of constant information has caused a great deal of volatility in the market. And this intense speculation is only fueled more via apps such as Robinhood. But, with the proper know-how, investing in meme penny stocks can be lucrative for some.

[Read More] Former Penny Stocks That Exploded in Value, One Up Over 3,500%

When considering penny stocks to buy , making a watchlist is also very important, especially in the case of meme penny stocks. Making a watchlist can help to both keep your list organized, and gauge social sentiment on a company. This can be done through reading online platforms such as Reddit and Twitter, or even reviewing what reputable news sources have to say about the recent market trends.

With large price movements, there are usually reasons that investors can find for an explanation. For instance, both GME and AMC both highly discussed on Reddit, and any trader viewing social media could see this. Rather than buying these stocks because of intrinsic value, investors wanted to bet against massive institutional short positions. The goal was intended to force large hedge funds to sell their short positions on both of these companies and caused massive losses.

Considering all of this, meme stocks are popular now and look like they could be for quite some time. While it may have begun as a trend, it remains a popular paradigm shift that could continue to affect the stock market in the future. With this in mind, let's take a look at three meme penny stocks for your June watchlist.

3 Meme Penny Stocks To Add To Your June Watchlist

  1. Cyclerion Therapeutics Inc. ( NASDAQ: CYCN )

  2. MoSys Inc. ( NASDAQ: MOSY )

  3. Agenus Inc. ( NASDAQ: AGEN )

Up by around 24% at midday is Cyclerion Therapeutics Inc. While no specific news came out today, CYCN has released several updates in the past few weeks. More recently, it announced a global license agreement with Akebia Therapeutics Inc. ( NASDAQ: AKBA ) for the development and commercialization of praliciguat. Additionally, it is also raising around $18 million in capital through a separate private placement.

In the agreement, Cyclerion could receive as much as $225 million in milestone payments including around $15 million in the first year and a half. In total, CYCN could receive up to $585 million in payments if all long-term milestones are hit.

Peter Hecht, CEO of Cyclerion stated that "This capital, coupled with the praliciguat out-license announced today reinforces our strategic focus in CNS and will accelerate the advancement of clinical studies for CY6463 and the further development of our next generation molecule, CY3018."

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