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.
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?
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