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The Top 10 Meme Stocks on Reddit: Should You Buy, Sell or Hold?

To discuss the buy-worthiness of the top 10 meme stocks, we first need to define what those top 10 meme stocks are.
Of course, there are multiple ways…

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This article was originally published by Investor Place

To discuss the buy-worthiness of the top 10 meme stocks, we first need to define what those top 10 meme stocks are.

Of course, there are multiple ways to define the category. For instance, we could put together a list based on some arbitrary measure like the market capitalizations mentioned on Reddit’s r/WallStreetBets. 

That would be fine, given that there is no definitive top ten list for meme stocks. However, I want to approach it from a slightly different angle — I’ll be using the list from memestocks.org. This is simply a list of the most memed stocks for the past 24 hours on r/WallStreetBets. The list is refreshed every hour.

So, without further ado, let’s look at the buy-worthiness of these top ten highly mentioned meme stocks. 

  • United States Steel Corporation (NYSE:X)
  • Tesla (NASDAQ:TSLA)
  • AMC (NYSE:AMC)
  • GameStop (NYSE:GME)
  • Nvidia (NASDAQ:NVDA)
  • Palantir (NYSE:PLTR)
  • Tilray (NASDAQ:TLRY)
  • Ford (NYSE:F)
  • PayPal (NASDAQ:PYPL)
  • Advanced Micro Devices (NASDAQ:AMD)

Meme Stocks to Watch: United States Steel Corporation (X)

Steel stocks: rods, bars and other forms of steelSource: Shutterstock

First up on this list of meme stocks, United States Steel makes a lot of sense given the current environment and incoming infrastructure bill. The argument being forwarded over on r/WallStreetBets relies heavily on that catalyst. It goes like this: 

“United States Steel Corporation is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania, with production operations in the United States and Central Europe […] Hm, isn’t a highly influential person from this area? Isn’t an infrastructure Bill on its way to getting passed?”

Fair enough — obviously, the catalysts are currently in place for United States Steel. Of course, the meme itself was posted about 2 months ago as of this writing, but the points remain relevant. I’ll also add that I agree with this buy-worthy sentiment being discussed in regard to X stock. 

Since Reddit first began talking about it, United States Steel posted solid third-quarter results. For the period, sales approached $6 billion. The company also recently transferred the benefit-paying responsibilities for 17,800 of its retiree employees off of its balance sheet. That gives it more operational leeway moving forward.

I’d agree that X stock deserves a buy, especially given the plans in motion.

Tesla (TSLA)

Tesla (TSLA) badge on back end of red Tesla carSource: Hadrian / Shutterstock.com

The most important news related to Tesla right now is CEO Elon Musk’s continued selling of the stock. Recently, Musk proposed that he would sell 10% of his TSLA stock after putting up a vote on Twitter (NYSE:TWTR).

So far, Musk has sold off roughly 5 million shares after dumping another 640,000 shares on Nov. 11. If he keeps his promise, the CEO will sell 17 million shares in total, representing 10% of the 170 million shares he owned when he first agreed to the draw down.

Right now, a lot of the conversation on r/WallStreetBets centers on Musk being volatile and the inherent risk he brings to traders. There’s a lot of concern because of that. In fact, many investors have noted that they exited their positions due to his unpredictable behavior. 

Since Musk will likely continue to be a contrarian, the CEO will probably keep selling TSLA stock, price be damned. I’d suggest waiting for this one of the meme stocks to drop to its 50-day moving average below $900 before buying any shares. 

Meme Stocks to Watch: AMC (AMC)

Image of the entrance of an AMC Entertainment (AMC) branded theater. undervalued stocksSource: Helen89 / Shutterstock.com

I’ll get straight to the point with AMC; I definitely don’t think this pick of the meme stocks is a buy. I’d sell it because the bottom is going to fall out sooner or later. This is despite the Reddit crowd continuing to cry “to the moon again soon.”

It’s really simple — don’t be fooled by AMC. It seems like investors were expecting great things from the company when it released earnings on Nov. 8. After all, share prices were rising steadily in the run up to the release. However, for the period, AMC posted a $224.2 million loss on $763.2 million in revenue.

Of course, that requires context in order for us to make any kind of judgment call. Compared to 2020, those results look phenomenal. In Q3 2020, AMC recorded only $119.5 million in revenue, leading to a $905.8 million net loss.

But if we go back to the pre-pandemic era, we can get a clearer picture of AMC. In Q3 2019, the company posted $1.317 billion in revenue, but still posted a net loss of $54.8 million. 

There’s little positivity to be taken from any of this. All told, it’s best to stay away from AMC stock. 

GameStop (GME) 

GameStop (GME stock) logo on the outside of a storeSource: Emil O / Shutterstock.com

For GME stock — the next pick on this list of meme stocks — I’m going to start by borrowing some words from fellow InvestorPlace contributor David Moadel. In his piece, Moadel gives a thorough account of the beginning of the meme stock movement, back when retail traders beat Wall Street at their own game.

“In late February […] short sellers who bet against GME stock lost $1.9 billion in two days. By late May […] those shorting Gamestop had sustained a staggering $6.7 billion of losses in 2021 […] Fast-forward to mid-November 2021, and the share price is hovering near $200. GME stock defies technical analysis, just as the Reddit users defy traditional investment principles. The stock goes wherever it wants to, so predicting its path is neither possible nor relevant.”

Moadel has a point; GME stock continues to move unpredictably. There isn’t much else to say here. If you already own shares, it makes sense to hold this pick because it could easily spike again. 

Meme Stocks to Watch: Nvidia (NVDA) 

Nvidia (NVDA) logo displayed on phone screenSource: rafapress / Shutterstock.com

Next up on this list of meme stocks is Nvidia. When it comes down to it, I believe NVDA stock is a buy. This is despite the fact that Nvidia’s current share price of $300 is above its median $260 target price.

This company is set to release earnings on Nov. 17 after market close. All indications are that Nvidia should reach approximately $6.83 billion in revenue for the quarter. That will represent a 44.4% increase year-over-year (YOY) from the firm’s $4.73 billion in revenue a year earlier. It’s hard to imagine that investors are going to find much to dislike in those results.

Nvidia has appreciated some 51% over the last three months while the PHLX Semiconductor Index (NASDAQ:SOX) has only risen roughly 16%. This stock is the cream of the crop, not an undeserving beneficiary of some illogical run-up. 

Palantir (PLTR) 

A close-up shot of a hand on a screen with the Palantir (PLTR) logo.Source: Ascannio / Shutterstock.com

Perspective is everything in the stock market. To most, when a company beats both internal guidance and Wall Street consensus, it should rise. And in fact, Palantir did beat both its internal guidance and Wall Street consensus in its Q3 earnings. However, the share price dropped anyhow.

Palantir posted $392 million in Q3 revenue, ahead of the $385 million expected within the company and on Wall Street. But the problem was lower than expected government business in the quarter. 

That said, I’d ignore it. Firstly, Palantir is already providing bullish guidance of $418 million in revenue for Q4. That’s greater than Wall Street expectations. But the point that’s really worth noting is Palantir is damned if they do, damned if they don’t

Before, the narrative was that the company was too conservative and dependent on government contracts. Now, it’s problem is that it doesn’t do enough government business. Meanwhile, the firm is posting record numbers and being punished for them.

I think the market will eventually come to its senses on this pick of the meme stocks. PLTR stock is a buy. Don’t let the overly influential voices of a few Wall Street analysts convince you otherwise. 

Meme Stocks to Watch: Tilray (TLRY) 

marijuana in storageSource: Shutterstock

Next up on this list of meme stocks is a marijuana play: Tilray. I’d remain wary of TLRY stock right now. Over the past few days, cannabis stocks are up. But that’s a consequence of recent legislative action from the U.S. House of Representatives and little else. Barron’s reported the following as well:

“A House committee last Thursday approved a bill that would require the Department of Veteran Affairs to conduct clinical trials into the therapeutic use of marijuana for veterans.”

This all sounds great, but it’s really a footnote that will quickly be forgotten. Soon enough, investors will get back to the same narrative that has plagued Tilray and the cannabis sector at large: revenues aren’t really living up to expectations. 

Tilray is expected to grow its revenue base approximately 2.5% between this quarter and the next. Even worse, analysts expect the same $974 million in revenues in 2021 to be unchanged in 2022.

Ford (F)

Ford (F) logo badge on grill of carSource: JuliusKielaitis / Shutterstock.com

Next up on this list, play the long game with Ford and F stock. Why? Because — although Ford should contract on a sequential basis between Q3 and Q4 — growth lies ahead. The company’s revenues are predicted to shrink 7.2% to 33.4 billion in Q1 of 2022. 

At the same time, though, the company should see revenues move substantially upward in 2022, to roughly $144 billion. That’s a significant increase from the $127 billion expected in 2021. 

This company is leaning heavily into the electric vehicle (EV) revolution and expects 40% of sales to come from EVs by 2030. To that end, it has recently increased 2025 electrification spending to $30 billion on the low end. 

What’s more, Ford’s F-150 is a perennial best seller. That won’t change this year, as it will be the top-selling vehicle in the United States. But it’s the electric version of the F-150 that investors should also pay closer attention to. Demand has been so high that the company has had to increase its investment to keep up.

All told, this pick of the meme stocks seems to have a bright future moving forward.

Meme Stocks to Watch: PayPal (PYPL) 

PayPal (PYPL) logo overlays daylight photo of corporate buildingSource: JHVEPhoto / Shutterstock.com

Next up on this list of meme stocks is PayPal. This company is facing a tough period right now. Of course, that means it’s certainly in the position for contrarian investors to establish a position. But I’d advise against that. PayPal’s overarching problem is a weak outlook for not only the remainder of 2021 but 2022 as well. 

Specifically, the company recently announced that it was reducing online payment volume and revenue forecasts for Q4. PayPal also pulled back revenue growth forecasts for 2022 to 18%. That annual forecast was lower than the previous guidance. 

As a result, PYPL stock has fallen to a low this year. Payments company stocks aren’t doing well across the board and there’s little to suggest PYPL will buck that trend.  

Advanced Micro Devices (AMD)

The last entry on this list of meme stocks, Advanced Micro Devices is in the type of situation where things are so good that the market is worrying if they are too good.

What do I mean? Well, for one, AMD stock is up approximately 65% year-to-date (YTD). On top of that, Meta Platforms (NASDAQ:FB) recently named the company as its choice for data centers. Facebook will use AMD’s Epyc central processing units in its centers.

CEO Lisa Su noted that AMD is working with Facebook to support future data center expansions. That suggests AMD could be the chip to power the developing Meta Platforms’ metaverse. All told, it doesn’t make much sense to bet against AMD given that it’s winning hardware contracts and more.

FREE REPORT: 17 Reddit Penny Stocks to Buy Now
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On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Resources Top 5: Hopeful uranium stocks, an important graphite deal, and lots of imminent news flow

Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government Cauldron Energy dusts off Yanrey uranium project, despite ……

  • Aspiring graphite miner Black Rock invited to finalise agreement with Tanzanian government
  • Cauldron Energy dusts off Yanrey uranium project, despite government opposition
  • Redstone (copper, cobalt), Latrobe (magnesium) and Empire (gold, copper, nickel, PGEs) up on no news

Here are the biggest small cap resources winners in early trade, Tuesday December 7.

 

CAULDRON ENERGY (ASX:CXU)

(Up on no news)

When the WA state government implemented a ban on most new uranium mines in 2017, CXU stopped work at its flagship ‘Yanrey’ uranium project and began searching for other dirt to play with.

It now has a historic gold project called ‘Blackwood’ in Victoria and a silica sands play called ‘Ashburton’ in WA. It is also poking around Yanrey again, which is a lot more interesting now that uranium prices are on the move.

While government support (or lack thereof) for new mines has not changed, a recent survey uncovered a bunch of “highly prospective targets for follow-up drilling” at Yanrey.

“Our ultimate objective is to explore for uranium mineralisation amenable to extraction by ISR,” CXU exec chairman Simon Youds says.

“Economic deposits of sandstone-hosted, palaeochannel-style uranium can be mined using ISR in the lowest cost quartile of uranium mined globally.”

“This characteristic makes these deposits extremely attractive for mining at any uranium price and necessarily must form the basis of any uranium resource portfolio.”

Yanrey exists within a larger uranium province that is slowly being uncovered, Youds says.

“There is potential here for a scale comparable to the best uranium-endowed province globally and that, with astute leadership, Western Australia is at the threshold of a new energy resources boom.”

At Blackwood, CXU has stumbled upon visible gold in an underground area historically excavated for access purposes only:

“The visible gold observed, coupled with the beautiful sandstone-shale contact and structurally complex geology, provides an exciting new target for drill testing,” Youds said in November.

“The observation of visible gold further increases our confidence in the remaining mineral potential of these historical mines.”

The $11.5m market cap stock is down 6% over the past month, and 30% year-to-date. It had $1.5m in the bank at the end of September.


 

REDSTONE RESOURCES (ASX:RDS)

(Up on no news)

The nanocap, which has partially bounced back from recent losses in early trade Tuesday, is drilling to grow the 38,000t copper, 535t cobalt ‘Tollu Copper Vein’ deposit, part of the ‘West Musgrave’ project in WA.

Tollu hosts “a giant swarm of hydrothermal copper rich veins” in a mineralised system covering a +5sqkm area, ~40km from OZ Minerals’ (ASX:OZL) world-class Nebo-Babel nickel-copper deposit.

A conceptual (theoretical, not real yet) exploration target suggests up to 627,000t of copper may be present, the company says.

Recent portable XRF analysis of new drilling returned hits like 16m at 2.62% copper from a 74m downhole, including 6m at 6% copper from 76m.

These will be confirmed by traditional assay, the company says. Labs are backed up to the hilt, so who knows when that will be.

RDS say exploration will continue “at the earliest opportunity” in 2022 with a deeper RC drilling program at priority targets.

The $12m market cap stock is up 30% over the past month. It had $2.6m in the bank at the end of the September quarter.

 

BLACK ROCK MINING (ASX:BKT)

It’s been a good news week for aspiring graphite miner BKT.

Today it announced it had been invited by the Mining Commission to attend a ceremony in Dar es Salaam, Tanzania on Monday 13 December “to finalise an agreement with the Government of Tanzania”.

Black Rock managing director John de Vries is currently in country and is expected to attend, BKT says.

The company has also just completed a massive 500t pilot plant run – the largest ever, it says — to send off for qualification (testing) to potential customers in North America, Asia and Europe.

This will ultimately support project financing, BKT says.

The company now needs to finalise off-take terms with cornerstone investor POSCO, and secure finance to underpin a $US116m Phase 1 development capex program.

The $183m market cap stock is down 10% over the past month, and up 115% year-to-date. It had $9.3m in the bank at the end of September.

 

LATROBE MAGNESIUM (ASX:LMG)

(Up on no news)

Early works – like fixing fences, site clean-up, contracting — are happening apace at LMG’s magnesium project in Victoria’s Latrobe Valley, with construction on an initial 1,000 tonne per annum magnesium plant due to kick off in Q1 2022.

Production starts up to 12 months later in Q4 2022.

The plant will be expanded to 10,000 tonnes per annum magnesium shortly thereafter, with further plant capacity expansion to be considered once it is operating successfully.

Magnesium has the best strength-to-weight ratio of all common structural metals and is increasingly used in the manufacture of car parts, laptop computers, mobile phones, and power tools.

In November, LMG said current magnesium price was US$6,150 per metric tonne and expected to hold.

“LMG’s revenue estimates are based upon US$3,250 per tonne which was the magnesium price in June 2021, before the China supply shortage commenced in September 2021,” it says.

“If the current price of US$6,150 per metric tonne held long term, it would increase LMG’s estimate of EBITDA for its 10,000tpa plant by some $56m.”

In 2020, world magnesium production was ~1 million tonnes, of which China supplied ~85%.  China has begun a 13-year plan to increase Mg in cars from 8.6kg to 45kg by 2030, requiring an additional 1 million tonnes of new Mg production per annum.

$131m market cap LMG is down 21% over the past month, and up 335% year-to-date. It has raised $11.5m  via placement to help fund the initial $39m 1,000tpa plant.

 

EMPIRE RESOURCES (ASX:ERL)

(Up on no news)

This busy polymetallic explorer has already drilled 13,000m so far in 2021 at the ‘Penny’s and Yuinmery’ projects in WA, with diamond drilling of some juicy gold, copper, and nickel-copper-PGE targets at Yuinmery due to kick off sometime this month.

ERL would’ve drilled even more if not for issues getting hold of a rig, something the company intends to fix in 2022.

“Our exploration plans for 2022 include the lock-in of a core drilling rig and driller for exclusive use by Empire,” chairman Michael Ruane says.

“This should assist in accelerating at least the drilling component of our exploration programs for the forthcoming period. The rig will be particularly useful for the deep drilling required for the promising Yuinmery targets (eg Smiths Well/YT01).”

The rig should be ready for commissioning this month, he says.

The $14.85m market cap stock is up 30% over the past month. It had about $3.5m in the bank at the end of November.


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Author: Reuben Adams

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Energy & Critical Metals

Met testwork proves Sovereign’s Kasiya will deliver a premium natural rutile product

Special Report: Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting…

Metallurgical testwork has confirmed Sovereign Metals’ Kasiya project in Malawi will deliver a premium natural rutile product, setting the stage for the company’s landmark scoping study.

Testwork continues to demonstrate the world class nature of Sovereign’s (ASX:SVM) Kasiya deposit, with simple and conventional processing delivering levels of 95% to 97.2% TiO2 with low impurities at stand-out metallurgical recoveries ranging from 94% to 100%.

That makes Kasiya competitive on TiO2 grades with some of the world’s largest natural rutile operations like Iluka’s Sierra Rutile and Rio Tinto’s Richards Bay Minerals.

It opens the door for discussions with tier-1 offtakers in the markets for TiO2 pigment, titanium metal and welding, where customers are facing widening supply deficits in a strengthening market.

Additionally, testwork has shown conventional flotation methods can be used to produce a coarse flake graphite by-product from rutile gravity tails with 60% at a coarseness of +150µm, suggesting it will have a high basket value when sold to market.

A program at SGS Lakefield in Canada confirmed simple processing methods delivered a very coarse-flake graphite concentrate at 96.3% TGC.

“Consistently achieving premium rutile specifications with stand-out recoveries via conventional “off the shelf” processing methods reinforces the robustness of metallurgical and processing performance of the Kasiya rutile mineralisation ahead of the upcoming Scoping Study,” Sovereign managing director Dr Julian Stephens said.

“These continued very high-quality product specifications should generate further interest from end-users across the titanium sector as the global structural deficit in natural rutile supply continues to widen.”

Processed rutile being despatched to potential customers. Pic: Sovereign Metals

Kasiya scoping study round the corner

With the results in today’s announcement, Sovereign has now demonstrated the impressive metallurgical qualities of the Kasiya resource in two separate rounds of met testwork.

The testwork also confirms Kasiya will deliver strong recoveries and product specifications based on conventional off-the-shelf processing technology, which bodes well for its future development.

Proving the original results were certainly no fluke and opening the door to interest from Tier-1 offtake customers, they set up Sovereign to release a scoping study in the coming weeks.

With most of the technical disciplines now complete, mining optimisation and capital and operating cost estimations are currently being finalised.

A new indicated mineral resource estimate is also on the way after substantial resource drilling to build upon the world-class inferred resource released in June.

That confirmed Kasiya as one of the largest natural rutile deposits in the world, with an inferred resource of 644Mt at 1.01% rutile and a high-grade component of 137Mt at 1.41% rutile.

 


 

 

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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Nio Will Bounce Back With Impressive Delivery Numbers

Nio (NYSE:NIO) stock has been under pressure for the past month. The Chinese EV company suffered from the investor sell-off and the Chinese government…

Nio (NYSE:NIO) stock has been under pressure for the past month. The Chinese EV company suffered from the investor sell-off and the Chinese government crackdown.

A close-up shot of the Nio (NIO) ES8 vehicle.Source: xiaorui / Shutterstock.com

However, China is one of the top EV markets in the world and it is expected that there will be a consistent rise in the demand for EVs in the coming years. The EV market in China nearly tripled to 19% in October, according to Forbes. The market is growing bigger, and it is moving very fast.

Nio is making strong strides in the industry and has already made its presence felt with a wide product range. NIO stock is less than half of the all-time high of $66. 

Nio started the year with a bang and was trading close to $53 in January. It hit a high in February and has been declining since then. NIO stock is down 24% in the past six months, but this does not mean you can write off Nio. The company has a long way to go and there are several catalysts working in its favor.

Impressive Delivery Numbers

The entire EV industry was facing a chip shortage and had major supply chain issues which led to a dip in deliveries. Nio did not have a good October, but it did bounce back in November. It reported 3,667 deliveries in October and delivered 10,878 vehicles in November which is a 105% increase from a year ago. This brings the year-to-date deliveries in 2021 to 80,940 vehicles, a 120% increase from 2020, and the total deliveries to 156,581. 

For the fourth quarter, the company expects deliveries between 23,500 and 25,500 vehicles. That means the company will have to deliver extraordinary numbers in December to meet the projections. Considering the current situation of the market, it looks difficult for the company to meet the revenue or deliveries for the fourth quarter, and this may impact the bottom line.

However, I believe Nio should not be judged simply based on the October deliveries. The chip shortage and supply chain issues affected every automaker and it is temporary. Looking at the big picture, Nio shows strong potential to grow and meet the growing demand of consumers in the thriving EV market.

Battery as a Service Is a Major Draw

Nio recently signed an agreement with Shell (NYSE:RDS.A, NYSE:RDS.B) to build and operate the battery charging stations. It includes the installation of 100 swapping stations in China by 2025 and pilot stations in Europe in the next year. The company’s battery-as-a-service (BaaS) offers a huge advantage in the competitive market and this partnership is a clear path towards International expansion. BaaS allows consumers to buy cars without batteries and subscribe to the program to swap batteries at the stations. This reduces the cost of the car significantly. 

It is also setting up a factory at the NeoPark EV industry park in China and expects to roll out the first vehicle in the second quarter of next year. The company will have NIO day on Dec. 18,  when it expects to launch its new ET7 sedan.

The Bottom Line on NIO Stock

Do not panic due to the investor sell-off and instead load up on NIO stock in the dip. Nio is one of the top EV players in the industry and the market is only growing bigger in the coming years. The company has a lot lined up for 2022 and it will benefit investors.

A dip in delivery numbers for one month does not speak anything about the potential of the company. Look at the bigger picture and see how far Nio has come. The company is set to grow bigger on high demand and sales. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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