3 Hot Penny Stocks to Add to Your Watchlist in Late May
With another day of trading penny stocks here, there is a lot for investors to know. In the past few weeks, buying and selling penny stocks has been extremely difficult given the amount of volatility in the stock market during that time. While today, we are seeing some bullish sentiment with the S&P 500 up slightly, the market is still fluctuating greatly.
To make money with penny stocks, investors need to have a firm understanding of what they’re buying, and more importantly, when to buy and sell. Penny stocks are all about timing. If you can buy a stock at $0.50 and sell it at $1.00, you’ve just made a 100% return on your investment. However, if you buy a penny stock at $1.00 and it drops to $0.50, you’ve just lost 50% of your money.
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As you can see, timing is everything when it comes to penny stocks. And, the biggest driver of price movements with penny stocks is speculation. If news comes out that a company is doing well, or if there are rumors surrounding a potential announcement, the price of the stock can move up or down very quickly. So, make sure to understand exactly what is driving the price of the penny stocks on your list and how to take advantage of that. Considering this, let’s take a look at three hot penny stocks to add to your watchlist right now.
3 Penny Stocks to Watch in May 2022
- Tellurian Inc. (NYSE: TELL)
- Transocean Ltd. (NYSE: RIG)
- Exela Technologies Inc. (NASDAQ: XELA)
Tellurian Inc. (NYSE: TELL)
During trading on May 17th, shares of TELL stock managed to climb by more than 14%. This is a large gain that brings Tellurian Inc. right under $5. And at this price, it’s clear that TELL is working its way out of penny stocks territory. In the past five days, shares of TELL stock have climbed by more than 22%.
To understand why, we have to look at its most recent announcement. on May 4th, the company announced its Q1 2022 financial results. In the results, the company ended the quarter with more than $300 million in cash and total assets of around $700 million. Additionally, the company brought in $26 million in revenue from the sale of natural gas which is compared to $8.7 million in the first quarter of this year.
This is all very impressive for the company and shows the growth of Tellurian and the energy industry at large right now. And, with plenty of free cash to continue funding its operations, it’s clear that TELL stock is in an advantageous position right now. So, with all of this in mind, will TELL make your penny stocks watchlist or not?
Transocean Ltd. (NYSE: RIG)
Another energy penny stock that is seeing sizable gains right now is RIG stock. At midday, shares of RIG had shot up by over 3.3% to more than $4.16. Since it announced its Q1 financial results on May 2nd, the company has seen some negative trading patterns. And this makes sense given that its loss in that time was greater than expected. In the Q1 report, the company posted a net loss of $0.28 per share, which is wider than the consensus of $0.22 from Zachs.
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Despite this, it still managed to beat revenue estimates, coming in at $615 million for the period. But, this is lower than its YoY amount of $653 million. The main reason for this drop comes as the company saw its day rates decline to around $334 thousand from around $373 thousand a year earlier. And while this was not unexpected considering the current state of the economy, it is disheartening for investors. So, considering that, will RIG be on your list of penny stocks to buy or not?
Exela Technologies Inc. (NASDAQ: XELA)
While XELA stock’s gain of 1.6% at midday is nothing to write home about, its high volume and 15% gain in the past five days are. The most recent announcement from the company came today when it stated the successful completion of its exchange offer for shares of common stock.
On May 17th, the company posted the completion of its previously announced offer to exchange shares of XELA common stock for 6% Series B Cumulative Convertible Perpetual Preferred Stock. This comes out to 20 shares of common stock in exchange for one Series B Preferred stock share. In addition to this news, a few days ago, it announced a 5-year contract with OBB, which is the national railway company in Austria. This deal will be valued at around $2.5 million, and should bring in a large amount of capital to the company.
“XBP is helping a number of customers regardless of where they are in their digital transformation. We are proud to align with ÖBB to help manage their Bills and Payments pain points. Our language and technology solutions including artificial intelligence are also compatible with legacy accounting systems bringing together the new and the old.”
The President of Exela EMEA, Vitalie Robu
Whether this makes XELA stock worth buying or not is up to you.
Which Penny Stocks Are You Watching Right Now?
With so much going on in the stock market right now, it can be very difficult to profit. However, with the right strategies on hand, making money with penny stocks can be much easier than previously imagined.
[Read More] 3 Penny Stocks That Climbed Today, Here’s Why
But, with so many factors to take advantage of in the stock market, investors need to have a well-thought-out strategy that can adapt to shifting market conditions. Additionally, always make sure to only invest what you are willing to lose. While losing is not ideal, it is a possibility considering the sheer amount of movement in the stock market right now.
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