Christmas is a time for family, good food, goodwill, and good gifts. On the subject of gifts, what gift could be better than the gift of wealth creation? The average Brit will spend about £390 on presents this festive season and that’s fair enough since we all like to spoil the ones we love. However, £390 could get me at least 390 shares in some of my favourite penny stocks right now. With any luck by the time Santa comes around next year, my £390 investment in these three penny stocks will be worth a fair bit more.
An award-winning penny stock
If there was a naughty and nice list for stocks over the past year, Zephyr Energy (LSE: ZPHR) would be right at the top of that nice list. At this time last year, a share in this company was trading at 0.82p. Today it is worth 6.85p – representing an award-winning 755% appreciation in share price. Not bad for a penny stock. The winner of the Best Performing Share Award at the prestigious AIM Awards this year is a growing oil company with operations in the US Rocky Mountains. The longer-term risk for Zephyr is the obvious push to phase out fossil fuels, but for the moment, demand remains high. The combination of high demand, recent successes in drilling activities, a very competent and experienced management team, and the 6p price tag on this stock make it a no-brainer for me.
A potential dark horse going into 2022
Travel and lifestyle bookings company Ten Lifestyle Group (LSE: TENG) is next on my list. In the wake of the Covid-19 pandemic, the company has naturally taken quite the beating. Losses have been the order of the day over the past two years but the stock price is yet to reflect this. In fact, this penny stock is up 16% year to date. Now, am I expecting this stock to make me wealthy? Certainly not. But what I’m willing to gamble on is a return to some semblance of normalcy in 2022. Already in September of this year, the company announced that bookings were back to pre-pandemic levels. Provided restrictions continue to get lifted, there could be nice returns here in 2022.
Should you invest £1,000 in Idox Plc right now?
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Cheap tech
Idox (LSE: IDOX) is probably my favourite addition to this list. You simply don’t get tech companies that cost 69p. My colleague James Reynolds, recently wrote about how this penny stock rose roughly 20% in the past year. Idox sells software solutions, mainly to governments but also in the private sector. With a growing base of recurring and non-recurring customers, Idox is likely to continue on its upward trajectory in the future. What I would like to see from Idox in the coming year is growth of its markets at home and abroad. Right now Idox has some presence in Egypt, the Bahamas, and Saudi Arabia. Razer thin margins threaten to impair the growth outlook of the business, but if it can continue to grow in 2022, the sky is the limit for the price of this stock.
