Penny stocks are valued under $5, and while the low share price and the possibility for huge returns can be a hugely attractive proposition for investors, these stocks also carry with them a lot of risk and even less a guarantee of returns than larger stocks.
Penny stocks are generally made up of former big hitters that have fallen down the pecking order, or smaller startups that are yet to achieve their full potential. With Christmas fast approaching, we’ve looked at two stocks that could keep your portfolio ticking over into the New Year. Let’s get into it.
LiveXLive Media Inc (NASDAQ:LIVX)
LiveXLive Media is an entertainment streaming platform, combining audio and video, available in the US and Canada. This penny stock actually experienced a steady rate of decline through the first 10 months in the year but has shown signs of recovery in recent weeks, which suggests that now might be an opportune time to invest. The company recently reached an agreement with ReachTV, which will see its content broadcast in 750 airport venues, reaching an audience of up to 100 million customers.
LIVX stock is currently trading for $2.45 and started the year as high as $6.90 before sinking into penny stock territory in April. However, it looks like this stock reached a bottom in mid-November and has nearly doubled since then.
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Kadmon Holdings Inc (NYSE:KDMN)
Small-cap biotech stocks can be very risky plays, but investing in the right one and waiting on the results of certain clinical trials can make investors a fortune overnight. Kadmon Holdings is one such penny stock, and it has had a fantastic year so far. This week saw KDMN stock hit a value of just under $5, representing a 200% gain in the last six months. The company is set to release updated results for a study into its chronic graft-versus-host disease (cGVHD) at a major industry event taking place this week, which could drive even further gains.
So that’s our penny stock picks for this chilly December Tuesday—are there any more on your radar? Let us know!
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