With the holidays just around the corner, investors are eagerly on the hunt for some stocks to bring a little cheer to their portfolios. Penny stocks trade for $5 or less and they can be a great opportunity to turn a small investment into a big return. However, they do carry with them a great deal of risk, given that they are usually made up of fallen angels or fledgling stocks yet to live up to their full potential.
However, if you’re an investor with a stomach for risk, we’ve got two penny stocks on our radar that you might want to check out. Let’s take a look.
Encana Corporation (TSX:ECA) (NYSE:ECA)
Encana is a Canadian oil company currently based in Calgary but will be moving its headquarters to Denver in 2020. The transition to the US is what makes this penny stock look like such a good bet at the minute, given that the recent Canadian election was not favorable to the oil industry and a shift south of the border provides the firm exposure to increasingly larger pools of investment in US index funds and passively managed accounts.
ECA stock is currently trading for $4.12 in New York, and gaining on the company’s announcement that it had formally filed paperwork on that move to the US. A shareholder vote is scheduled for January 14 with a two-thirds majority needed, and further gains could be ahead should that pass as expected.
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Assertio Therapeutics (NASDAQ:ASRT)
Assertio Therapeutics is an American pharmaceutical company that specializes in products for treatment in neurology, pain, and diseases of the central nervous system. This penny stock has rocketed over 50% this morning after announcing that it had sold its Gralise product to Alvogen for $127.5 million USD. The company says it plans to use the funds to focus on its faster-growing products and increase its flexibility for future developments. ASRT stock is now trading for $1.19.
If you’re a lover of small-cap stocks, we’ve picked out five more that you might want to take a look at before the year’s end.
Featured Image: DepositPhotos © sbotas
