Two climbers are on our penny stocks radar today. Both in the media sector, they are Limelight Networks (NASDAQ:LLNW) and DHX Media (TSX:DHX).
Let’s check these out.
Penny Stocks to Watch: Limelight Networks
At the time of writing, Limelight Networks stock is up 1.72% and selling for $2.95 USD on the NASDAQ.
Limelight provides a content delivery network service, used for the delivery of digital media content and software. Business is growing quickly. According to Investorplace, “Revenue is expected to rise 6% this year and 11% the next, with earnings growing at a long-term rate of 15%.”
If that is the case, then LLNW shares may break out of the penny stocks territory in the not-too-distant future. The company showed revenue of $184.4 million in 2017, and with streaming services becoming the mainstream choice for entertainment, there is real potential that LimeLight Networks will see a surge in demand.
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Penny Stocks to Watch: DHX Media
DHX Media is a Canadian media production, distribution, and broadcasting company. At the time of writing, the DHX penny stock is up 2.66% and selling for $1.93 CAD.
DHX Media is troubled by debt, and this is one reason for its 44% decline in stock value in 2018. The company has $550 million in long-term debt as of the most recent quarter. That won’t sound so sweet to investors, but with a market cap of roughly $260 million CAD, and shares selling for a low price of $1.93, there’s potential here.
DHX has secured a partnership in Sony (NYSE:SNE), which allowed it to reduce some of its debt and at the same time buddy up with a power brand. It sold 39% of its Peanuts intellectual property to the tech giant.
Now its portfolio consists of Teletubbies, Inspector Gadget, Yo Gabba Gabba!, YouTube content provider WildBrain, along with the aforementioned Peanuts.
This content-rich portfolio may become more valuable as time goes on and from where it stands, the company is certainly giving itself options.
What penny stocks are on your radar?
Featured Image: DepositPhotos © leungchopan
