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HMNY Inventory & 7 Different Reddit Penny Shares Hoping for a Takeover

Bear in mind Helios and Matheson (OCTMKTS:HMNY)? As you could recall, the Moviepass dad or mum firm crashed and burned in 2019, submitting for Chapter 7 chapter in early 2020. However, after a 12 months of being declared defunct, its thinly traded inventory has proven small indicators of life. The explanation? It appears to be falling consistent with the pattern of Reddit penny shares. The rumor mill is abound with discuss of the corporate — which provided month-to-month limitless passes to film theaters at a set worth — making a comeback. As well as, longstanding rumors of a takeover from deep-pocketed patrons like Amazon (NASDAQ:AMZN) or Netflix (NASDAQ:NFLX) have been making the rounds. Admittedly, the rumors surrounding HMNY are probably simply discuss. The market appears to assume so, anyway. The inventory nonetheless trades for lower than a penny per share. There is probably not a lot alternative right here. But, it does recall to mind the potential for a few of this 12 months’s hottest penny shares to rally on mergers and acquisition (M&A) rumors.InvestorPlace – Inventory Market Information, Inventory Recommendation & Buying and selling Suggestions As “meme-stock mania” has lengthy since peaked, many Reddit shares are struggling to bounce again to their February highs. It might be a bit speculative. However, for a number of of those small corporations, it’s straightforward to see them as additionally being potential targets for strategic or monetary acquirers. 10 of the High Nasdaq Blue-Chip Shares to Purchase So, which Reddit penny shares might be takeover targets? Or, at the least, which of them are hoping for a takeover? Contemplate these seven names as particular prospects: Allied Esports Leisure (NASDAQ:AESE) Cinedigm (NASDAQ:CIDM) ION Geophysical (NYSE:IO) Nokia (NYSE:NOK) Organigram (NASDAQ:OGI) Ovid Therapeutics (NASDAQ:OVID) Trivago (NASDAQ:TRVG) Reddit Penny Shares: Allied Esports Leisure (AESE) Supply: Roman Kosolapov/ Shutterstock In current weeks, esports venue operator Allied Esports Leisure has tried to mount a rebound. However, at round $2.78 per share, the inventory has but to bounce again in the direction of its highs from earlier this 12 months. But, think about this one of many Reddit penny shares probably to see curiosity from potential patrons. How so? For starters, the “story” behind AESE inventory is already fairly M&A-heavy. As you could recall, the corporate acquired a low-ball takeover provide from the on line casino and gaming operator Bally’s Company (NYSE:BALY). This was on the heels of the corporate making an attempt to divest its non-core World Poker Tour (WPT) unit. So, what’s the newest? To date, Bally’s hasn’t come again with the next provide. Nonetheless, with the WPT deal nonetheless pending, Bally’s might come again to the deal desk. And the way about different potential acquirers within the gaming house? Different mid-sized on line casino and gaming corporations, akin to Golden Leisure (NASDAQ:GDEN), might presumably resolve this title is a good bolt-on acquisition. Personal fairness might be as properly, given the chance to roll-up this rising business. I wouldn’t purchase AESE inventory on this issue alone. Nonetheless, there’s loads of potential for it to see one other pop on takeover discuss. Cinedigm (CIDM) Supply: Pavel Kapysh / Shutterstock.com Currently, the NFT (non-fungible token) phenomenon has been garnering CIDM inventory a ton consideration. Nonetheless, Cinedigm’s core streaming enterprise often is the extra fascinating a part of the story right here — and the explanation that it’s one of many high Reddit penny shares that’s probably to get a takeover provide. Cinedigm is a small-fry within the content material streaming house. That stated, it’s been build up its content material library, by way of acquisitions in addition to offers just like the one it inked with Reddit favourite Genius Manufacturers (NASDAQ:GNUS). Now, who could also be occupied with buying Cinedigm? With its $245 million market capitalization, even with a takeover premium, a deep-pocketed media purchaser might simply swallow up this “also-ran” operator. Nonetheless, a extra probably purchaser could be one other equally sized peer. That’s, one other media title working on the fringes of the leisure enterprise. Actually, a tie-up between Cinedigm and Genius Manufacturers might be an ideal match. Genius — with its valuation still-inflated at a $544 million market cap — might merge with this firm in an all-stock merger. Such a deal would have great working synergies. It might additionally assist Genius transfer one step nearer to turning into a serious title within the leisure house. 7 Marijuana Shares to Purchase As Canada’s Consumption Continues to Rise Once more, this thesis is speculative at greatest. However this inventory, at $1.48 per share, might see one more enhance if a attainable purchaser steps as much as the plate. Reddit Penny Shares: ION Geophysical (IO) Supply: Shutterstock Oil has made an incredible comeback over the previous 12 months. That’s been a boon for oil exploration and manufacturing (E&P) shares. However, it’s additionally been a shot-in-the-arm for oil companies performs like IO inventory. As InvestorPlace’s Mark Putrino mentioned on Apr. 21, ION Geophysical gives data-driven options for the E&P business. It’s a distinct segment enterprise and one which’s not resistant to the cyclical nature of the oil and gasoline business. Nonetheless, with issues on an upswing, it might resolve that now’s the time to scale itself up. Very like the E&P house, ION’s business is stuffed with small operators. This firm itself has a market cap of simply $39.6 million. However, whereas it might not get purchased out by a bigger rival, it might itself grow to be an acquirer of the competitors. For instance, there’s one other publicly traded title on this house, Dawson Geophysical (NASDAQ:DWSN). A mix of those two corporations might assist wring out economies of scale. Not solely that, Dawson is sitting on a cash-rich stability sheet — $41.5 million versus a $55.6 million market cap. An all-stock merger with this firm might give overleveraged ION an enormous infusion of money. Each of those corporations could also be extra centered on the oil-patch restoration than on M&A. However it’s nonetheless a chance, incomes this title a spot on this record of Reddit penny shares. Nokia (NOK) Supply: rafapress / Shutterstock.com With its practically $27 billion valuation, it’s odd calling Nokia a penny inventory. However, having a inventory worth of round $4.70 per share — underneath the $5 per share cutoff level — NOK inventory does match into this class. Meme-stock pleasure helped spring some life again into this telecom tools “also-ran” title. However, whereas rivals like Ericsson (NASDAQ:ERIC) and Huawei have performed a a lot better job at capitalizing on the “5G Revolution,” Nokia has nonetheless generated a good quantity of enterprise from this improvement. Late final 12 months, NOK inventory was listed as one of many “high European M&A targets” in a survey performed by Bloomberg. So, who could be a probable purchaser of this firm? Granted, already being a large-cap title, there’s a restricted purchaser pool for Nokia. Nonetheless, there are just a few prospects. 7 Shares to Purchase for Could For instance, a reputation like Motorola (NYSE:MSI) may even see Nokia as a worthwhile merger associate. And don’t rely out non-public fairness patrons, both. With $1.9 trillion “in dry powder globally,” monetary patrons want to focus on massive corporations like this one to maneuver the needle for his or her funds. NOK shares could not have meme-stock developments on their aspect. However, any type of takeover chatter could also be sufficient to push this high-profile member of the Reddit penny shares again up above $5 per share. Reddit Penny Shares: Organigram (OGI) Supply: Shutterstock Sundial Growers (NASDAQ:SNDL) has been the hashish penny inventory making essentially the most headlines recently. However, with its $1.44 billion market cap, it’s probably too huge for rivals to swallow. Nonetheless, with its $574 million battle chest — the results of dilutive inventory choices — it may be on the prowl for acquisitions. A attainable goal? One other one of many Reddit penny shares, Organigram. Now, OGI inventory itself presently sports activities a $785 million market cap. This may be powerful to swallow for Sundial, if it went with an all-cash bid. However, Sundial might probably pull off a part-cash, part-stock deal. So, what could be the advantage of such a merger? With a decrease ahead price-to-sales (P/S) valuation than Sundial, including Organigram would assist easy out SNDL’s still-frothy ahead a number of. That is on high of the apparent price financial savings and merger synergies that might come up from combining these two small, Canada-based operators. And, if pot lastly turns into authorized on the U.S. federal degree? The merged corporations would have sufficient scale to pounce on the chance. This attainable deal could also be wishful pondering. Nonetheless, if Sundial or some other small marijuana firm makes such overtures, it will be greater than sufficient to ship OGI inventory — now at $2.65 per share — trending greater as soon as once more. Ovid Therapeutics (OVID) Supply: Shutterstock Subsequent up on this record of Reddit penny shares is Ovid Therapeutics. Again in March, I mentioned a number of biotech penny shares price a glance. One in every of these attainable alternatives was OVID inventory. Particularly, a power that this biotech play possessed was that it had already established a deal to commercialize the main candidate in its pipeline. Takeda Pharmaceutical (NYSE:TAK) made a licensing deal for the corporate’s Soticlestrat seizure remedy. The monetary consideration? $196 million upfront, with a complete monetary payout of $856 million. Like I put it earlier than, that’s not a nasty chunk of change for a small-cap biotech firm. After popping on the information, Ovid Therapeutics has held regular. At this time, OVID inventory modifications palms at slightly below $4 per share. However, there’s a long-shot catalyst that might give it an enormous enhance. I’m speaking about its associate, Takeda, shopping for the entire firm. 7 Sizzling Shares to Purchase Due to Hovering Gross sales Certain, with it locking down the rights to a flagship candidate, there’s no use for Takeda to do a buyout. That’s very true, provided that analysts like Charles Duncan of Oppenheimer have grow to be bearish about the remainder of Ovid’s pipeline. Duncan lately downgraded the inventory, primarily as a result of firm scrapping improvement of its OVID-101 Angelman syndrome remedy. Even so, although, Takeda already owns round 15% of Ovid. If Soticlestrat finally ends up turning into a larger-than-expected success, the Japanese pharmaceutical big could discover it worthwhile to purchase up the remaining. Reddit Penny Shares: Trivago (TRVG) Supply: Tobias Arhelger / Shutterstock.com Final up on this record of Reddit penny shares is Trivago. Because of each the “journey restoration” commerce and Reddit-stock mania, TRVG inventory has already gone “to the moon.” Up to now six months, shares of Trivago have rallied round 162%. At this time, it trades at $3.56. At first look, plainly journey shares like this firm — an operator of journey reserving websites, primarily in Europe — have gotten overheated. The vaccine rollout within the U.S. and Europe has made many keen about surging journey demand later this 12 months. Nonetheless, all bets are off as as to whether this performs out. Mainly, the “pent up demand” thesis could fail to fulfill expectations. If a restoration doesn’t occur as projected, shares like this one are susceptible to a correction. But, if this inventory pulls again, M&A chat might save the day. At decrease costs, strategic patrons may even see Trivago as a worthwhile bolt-on. Suppose Reserving Holdings (NASDAQ:BKNG) or Expedia Group (NASDAQ:EXPE). Briefly, don’t purchase TRVG inventory on takeover potential at this time. As an alternative, put it aside as a attainable purchase following any travel-stock selloff. On Penny Shares and Low-Quantity Shares: With solely the rarest exceptions, InvestorPlace doesn’t publish commentary about corporations which have a market cap of lower than $100 million or commerce lower than 100,000 shares every day. That’s as a result of these “penny shares” are steadily the playground for rip-off artists and market manipulators. If we ever do publish commentary on a low-volume inventory that could be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this reality and warn readers of the dangers. Learn Extra: Penny Shares — Learn how to Revenue With out Getting Scammed On the date of publication, Thomas Niel didn’t (both immediately or not directly) maintain any positions within the securities talked about on this article. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock evaluation for web-based publications since 2016. Extra From InvestorPlace Why Everybody Is Investing in 5G All WRONG It doesn’t matter if in case you have $500 in financial savings or $5 million. Do that now. High Inventory Picker Reveals His Subsequent Potential 500% Winner Inventory Prodigy Who Discovered NIO at $2… Says Purchase THIS Now The put up HMNY Inventory & 7 Different Reddit Penny Shares Hoping for a Takeover appeared first on InvestorPlace.



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