Buying penny stocks can be high risk. But when investors get it right these small-cap stocks can deliver spectacular long-term returns.
Here are four top penny stocks I’m considering snapping up today.
Mind Gym
Should you invest £1,000 in Barclays right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays made the list?
Revenues at Mind Gym could splutter in the near term as businesses scale back spending. But I believe sales could rise strongly over a longer time horizon as the focus on mental health intensifies.
The penny stock helps workers improve both their wellbeing and their productivity. And its clients (which include blue-chip firms like GSK, Microsoft, and Vodafone) seem to love what it does. Repeat revenues account for 87% of the group’s total.
Mind Gym is prioritising investment in digital to drive future growth, too. This could take earnings to the next level as online learning and interaction takes off. The successful launch of its Performa coaching platform in early 2021 underlines the huge potential of its digital strategy.
SRT Marine Systems
Project delays have been a big problem for SRT Marine Systems of late. Indeed, the complexity of its technologies means that such dangers are an ever-present issue for the firm.
Yet I still like the look of this penny share. SRT’s products allow ships and boats to be tracked and monitored while at sea. Such surveillance is critical in modern shipping and it has a variety of applications. This includes helping shipping companies monitor vessel movements, and improving port and waterway management and preventing accidents.
As the global economy grows over time and trade increases, demand for the penny stock’s hardware could increase strongly.
Shanta Gold
Volatile commodity prices can have a huge negative impact on mining companies’ profits. But as gold prices boom, I think now could be a great time to buy yellow metal producers. Shanta Gold is one such company on my radar today.
Physical gold like bars and coins, or financial instruments that track the gold price, don’t pay a dividend. But certain gold stocks do. Shanta Gold for instance provides a handy-if-unspectacular 0.8% dividend yield for 2023. And City analysts expect shareholder payments to grow strongly over the short term.
I also like this gold digger because of its exciting production and exploration plans in Africa. First gold at its Singida mine — an asset that will boost group output by up to 50% — was poured in March, for instance.
tinyBuild
The video games market is highly congested. And independent games studios like tinyBuild lack the financial resources of the industry’s biggest players to help it succeed.
However, the rate at which the gaming market is growing suggests this penny stock could still be a top investment. The leisure software sector is worth more than the movie and music industries combined. And it’s tipped to keep growing strongly as spending in emerging markets rockets and technological improvements continue.
I’m also encouraged by tinyBuild’s long track record of success. Titles like Hello Neighbor and Graveyard Keeper have sold in huge quantities. And the company has a strong pipeline of releases to keep revenues streaming in.
