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3 Meme Stocks to Buy on the Dip: June 2024
ACBAurora(ACB) Investor Place·2024-06-25 20:37

Core Viewpoint - The article discusses the potential for meme stocks to experience significant rallies, emphasizing the importance of identifying stocks with decent fundamentals that can benefit from speculative trading [1]. Group 1: Meme Stocks Overview - Meme stocks can experience rapid price increases, making it challenging to find good entry points [1]. - GameStop (GME) is highlighted as a meme stock to avoid due to its poor fundamentals and significant price drop from 62.8to62.8 to 23.7 [2]. - The focus is on identifying meme stocks that are undervalued and have the potential for a rally when bought on dips [1][2]. Group 2: Riot Platforms (RIOT) - Riot Platforms is considered undervalued with a forward P/E of 14, despite a 15% decline in stock price over the last 12 months [3]. - The company has a zero-debt balance sheet and a cash buffer of 1.3billion,allowingforaggressivecapacityexpansion[3].−RiotPlatformsaimstoincreaseitsminingcapacityfrom12.5EH/sto31.5EH/sbytheendoftheyear,withalong−termgoalofreaching100EH/sby2027,potentiallyoffering5xto10xreturnsinthenext24to36months[4].Group3:AuroraCannabis(ACB)−AuroraCannabisispositionedforgrowthwiththeupcomingU.S.Presidentialelectionsandfavorableglobalregulations,includinglegalizationinGermany[5].−ThecompanyreporteditssixthconsecutivequarterofpositiveadjustedEBITDAandaimsforpositivefreecashflowbyDecember2024[6].−AuroraCannabishasbeenconsolidatingfornearly12months,indicatingapotentialforabreakoutifbusinessdevelopmentsremainpositive[5][6].Group4:EnteraBio(ENTX)−EnteraBiohasseenapricecorrectionfrom52−weekhighsof1.3 billion, allowing for aggressive capacity expansion [3]. - Riot Platforms aims to increase its mining capacity from 12.5 EH/s to 31.5 EH/s by the end of the year, with a long-term goal of reaching 100 EH/s by 2027, potentially offering 5x to 10x returns in the next 24 to 36 months [4]. Group 3: Aurora Cannabis (ACB) - Aurora Cannabis is positioned for growth with the upcoming U.S. Presidential elections and favorable global regulations, including legalization in Germany [5]. - The company reported its sixth consecutive quarter of positive adjusted EBITDA and aims for positive free cash flow by December 2024 [6]. - Aurora Cannabis has been consolidating for nearly 12 months, indicating a potential for a breakout if business developments remain positive [5][6]. Group 4: Entera Bio (ENTX) - Entera Bio has seen a price correction from 52-week highs of 3.35 to $1.87, presenting a buying opportunity [7]. - The company focuses on oral delivery of peptides for treating conditions like osteoporosis, which affects 200 million women globally [7]. - Entera Bio has sufficient cash runway through Q3 of 2025, reducing the risk of immediate equity dilution [8].