On the hunt for penny stocks? April has delivered us some significant climbers and now that we are over halfway through the month, looking ahead at what will happen come May is important. In this volatile marketplace, gains and losses can happen instantly, so keep an eye out for those movers and shakers.
Here are some penny stocks that could be considered undervalued as they battle through a low ebb.
Penny Stocks in April: Eastman Kodak (NYSE:KODK)
Okay, KODK shares are having a volatile April. Starting the month on a high of $3.12 USD, this penny stock has fallen significantly to be selling at its current price of $2.38 USD. In the midst of the downward trend, there have been plenty of spikes where short-sellers can turn a quick profit.
But looking long term, this newly reinvented company may have a much brighter future ahead. Where it was at one time the king of printed photography everywhere, Eastman Kodak has had to adapt to a culture that simply doesn’t print photos anymore—certainly not like we used to.
But adapt it has, and now Eastman Kodak offers various services including commercial print, electronic displays, packaging, commercial films, 3D printing, and various other relative services. It’s a low price for a company that has been around for a long time and is showing $96 million in net earnings for fiscal 2017. Is it undervalued? You decide, but it’s certainly a potential play.
Penny Stocks in April: PDL BioPharma (NASDAQ:PDLI)
Another potential play that has stuck around for over a decade is PDL BioPharma, a company that was, at one time, very successful. But four years ago these shares (that once traded at over $60 each) began crossing penny stocks territory. Now, PDLI stock trades for $3.49 USD on the NASDAQ.
Initially, PDL BioPharma made its money by acquiring the rights to, or patents of, highly marketable drugs. This worked well until the climate shifted and drug developers began doing this for themselves. The business model it operated in, effectively, barely exists anymore, so the company is struggling to acquire drugs and market rights.
A shift in business operations may change everything for this company, though—it has made all the right contacts and has a vast knowledge of the BioPharma sector. Reinventing itself could very well make a profitable business in time, so the potential for this penny stock is nowhere near gone.
What do you think? Are you a penny stocks investor? What’s on your radar?
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