3 Penny Stocks to Watch in May 2022
With May at almost the halfway point, there are a lot of things that penny stocks traders need to understand. Right now, the major concerns surround rising inflation, climbing interest rates, and geopolitical tensions. All of this has led the stock market to be in one of the most volatile places it has been in, in quite some time.
So, while this can be scary for some who invest in penny stocks, for others, it can pose a great way to make money with small caps. During morning trading, we saw a small market recovery which was then beaten out by more bearish sentiment to end the day. This continues the losing streak that we have seen recently, and is clearly not a positive sign for investors. However, we are seeing some momentum with certain stocks that could be worth keeping an eye on.
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Now, understand that penny stocks have been and likely will remain some of the most volatile assets out there. And as a result of this, traders need to have a solid strategy on hand that can adapt to the shifting conditions of the market. So, with all of this in mind, let’s take a look at three penny stocks that climbed during trading today.
3 Penny Stocks to Add to Your Watchlist
- Allena Pharmaceuticals Inc. (NASDAQ: ALNA)
- Lordstown Motors Corp. (NASDAQ: RIDE)
- Mullen Automotive Inc. (NASDAQ: MULN)
Allena Pharmaceuticals Inc. (NASDAQ: ALNA)
One of the largest gainers of the day so far is ALNA stock. By EOD, shares of ALNA stock had shot up by more than 80%, which is no small feat. Despite a one month drop of over 40%, it’s clear that ALNA stock is seeing some bullish sentiment right now. While many penny stocks climb without news, there are some assumptions we can make about ALNA’s trading patterns on May 12th.
Last week, the company announced a $2.8 million registered direct offering. The company stated that it plans to use this money for both working capital and the repayment of debt. While it is tough to explain why shares of ALNA stock are exploding right now, the company has seen some sizable volume changes that could indicate ALNA stock is trending. To understand this further, we can take a closer look at ALNA stock.
Allena Pharma is developing a range of oral enzymes that could be used to treat metabolic diseases. Currently, its pipeline includes Reloxaliase, which is in a Phase 3 study and several Phase 2 studies. This is exciting news, and is one of the reasons that investors believe in the long term future of ALNA stock.
Lordstown Motors Corp. (NASDAQ: RIDE)
Another major gainer of the day on May 12th is RIDE stock, which shot up by over 48%. This gain occurred right after market open and is due to some exciting news announced. Recently, the company has been on the verge of declaring bankruptcy, which has caused major bearish momentum with the company as of late. However, only a day ago, the company announced the closing of a deal in which it sold its Lordstown facility to Foxconn. This will give it $230 million in cash as well as $27 million in reimbursement for costs.
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And, the pair agreed on a deal for a manufacturing-supply agreement regarding Lordstown’s EV pickup truck. Right now, there is a major amount of emphasis on the electric vehicles market. And although it has been a tough time for all stocks, there could be some hope for the future of RIDE stock with this new deal.
Considering how speculative it is, it’s clear that investors should be willing to take on high risk with a company like Lordstown Motors. But, if it can begin to sell its EV at higher numbers, there’s no reason why it couldn’t be on your list of penny stocks to watch.
Mullen Automotive Inc. (NASDAQ: MULN)
MULN is a penny stock that we have covered numerous times in the past few months. And today, shares of MULN stock shot up by more than 7%, which is no small feat. After a one month drop of over 65%, today’s 8% uptick is a welcomed move for the company and investors alike. And, this comes after a double-digit drop only a day or so ago.
So, while many investors are suspicious of MULN’s future, it’s worth taking a closer look at the company. A few days ago, the company made an exciting announcement regarding its solid-state battery testing at the Battery Innovation Center (BIC). It stated that it has completed the cell preconditioning preparation process for cell performance recycling. This comes as the company has announced that its 150-KW-hour battery could deliver over 600 miles of range.
“I am pleased with the initial preconditioning results on our solid-state polymer battery cell and we’re progressing to the next stage of testing with BIC. The battery has performed well and I’m looking forward to see finalized testing results from BIC later this month.”
The CEO and Chairman of Mullen Automotive, David Michery
This is exciting news, and is an update that is likely behind Mullen’s recent bullish sentiment. Considering that, will it make your penny stocks watchlist?
Which Penny Stocks Are You Watching Right Now?
Finding penny stocks that are worth buying can be challenging. However, because there are so many penny stocks to choose from, there are plenty of options that could allow investors to profit.
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Now, with that in mind, having a trading strategy is the most crucial part of buying and selling penny stocks. Considering this, which penny stocks are you watching right now?
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