3 Penny Stocks to Add to Your Watchlist With New Fed Updates 

Right now, the major focus of the stock market and penny stocks is moves being made by the Federal Reserve. On April 6th, the Fed announced a plan to shrink the balance sheet by roughly $95 billion per month. It will do this by a half-percentage point or 50 basis point increase in interest rates moving forward alongside other measures. 

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It’s worth noting that investors knew this was coming following months of inflation increases and economic troubles in the U.S. as a result of the pandemic. However, with the conflict in Ukraine causing even more strain, this is more important than ever. 

So, understanding exactly how this will affect penny stocks is crucial when it comes to making money with small caps in 2022. Today, we saw major moves from companies like Exicure Inc. (NASDAQ: XCUR) and Harmony Gold Mining Co. (NYSE: HMY) and others. 

And because of that, we see just how important it is to stay up to date with market happenings. Additionally, having a trading strategy will be a big step in reducing losses. With this in mind, let’s take a look at three penny stocks to watch after the market dropped during trading today. 

3 Penny Stocks to Watch as the Market Drops 

  1. Bitnile Holdings Inc. (NYSE: NILE
  2. RLX Technology Inc. (NYSE: RLX
  3. Ensysce Bioscience Inc. (NASDAQ: ENSC

Bitnile Holdings Inc. (NYSE: NILE) 

Bitnile is a penny stock that we’ve been covering for quite some time. And over the past few weeks, NILE stock has garnered a great deal of attention despite a one year drop of more than 75%. In the past five days, shares of NILE stock have fallen by around 23%, however, in the last day, we’ve seen it climb back by over 7%. So, what is making NILE stock move right now? To understand this, we have to take a look at its most recent update. On April 5th, the company announced that it has invested roughly $127 million into data centers and Bitcoin miners. 

“We are on schedule with our delivery of bitcoin miners and the buildout of our data center. Given our recent payoff of debt and improvement in our financial condition, we anticipate our efforts to continue smoothly, including the funding of our additional investment in bitcoin miners and data center infrastructure.”

The Executive Chairman of Bitnile Holdings, Milton Todd, Ault

As part of a previous agreement, the company had a purchase agreement to buy roughly 20,600 miners from Bitmain. So, with the price of Bitcoin continuing to move in the past few weeks, it’s clear that NILE is making big moves right now. Whether this makes it worth adding to your penny stocks watchlist however, is up to you. 

Penny_Stocks_to_Watch_Bitnile

RLX Technology Inc. (NYSE: RLX) 

Another big gainer today is RLX stock, which shot up by over 2% at EOD on April 6th. While this gain is nothing to write home about it is a welcomed uptick after its six month drop of over 59%. The most recent news from the company came on March 11th when it announced its fourth quarter and fiscal year 2021 financial results.

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In the results, the company posted net revenue of $298.8 million, which is a 17% increase over the same period of the previous year. Additionally, its gross margin came in at 40.2% with a U.S. GAAP net income of $77.6 million compared to a net loss of RMB236.7 million in the same period of the previous year. 

“We are pleased with our operational and financial performance in the fourth quarter, ending 2021 on a strong note. Despite the evolving industry regulatory framework and challenging backdrop of recurrent COVID-19 outbreaks, we remained focused throughout the year on optimizing our distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades.” 

The Co-Founder and CEO of RLX Technology, Ms. Ying Wang

While RLX stock is highly volatile, the company does look like it has a lot to offer. Considering that, do you think RLX is a worthwhile addition to your list of penny stocks to buy?

Penny_Stocks_to_Watch_RLX

Ensysce Bioscience Inc. (NASDAQ: ENSC)

One of the biggest gainers of the day on April 6th is ENSC stock. At EOD, shares of ENSC had shot up by over 8.2% to more than $1.44 per share. This gives it a five day and one month gain of more than 30% and over 50% respectively.

So, why are shares of ENSC stock climbing right now? The big news came as the company reported a loss in its 2021 full year earnings of $1.48 per share. However, alongside this the company held cash and cash equivalents of $12.3 million. It states that this funding should be plenty for its trials that are planned for 2022. 

The CEO of Ensysce, Dr. Lynn Kirkpatrick stated “Following the successful completion of our convertible note financing of $15 million, providing the necessary funds to advance our clinical trials, the year concluded with an exceptional Company milestone as the first patients were enrolled in the Phase 1 study of PF614-MPAR™, the first product utilizing our MPAR™ platform designed to reduce drug overdose.”

Recently, there has been a major focus on biotech penny stocks. And while ENSC has not made any major announcements in the last few days, the company remains a major focus for many investors. Because of its volatility, the choice is yours whether ENSC stock is worth buying or not. 

Penny_Stocks_to_Watch_Ensysce Bioscience (ENSC Stock Chart)

Can Penny Stocks Continue to Climb?

With so much momentum in the stock market, it’s tough to say if penny stocks will continue to climb. However, by understanding exactly what is going on in the stock market, investors can fully take advantage of the market moves. 

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In addition, having a concise and well-thought-out trading strategy will give you the best chance of profitability. With this in mind, do you think that penny stocks can continue to climb?

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  • The Beginner’s Handbook For Trading Penny Stocks
  • Penny Stock Alerts And Ideas
  • Learn To Trade Penny Stocks
  • Free Access to The Fastest Growing Highest Rated Trading Chatroom
Privacy Policy

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | news@pennystocks.com

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