I think these penny stocks could be four of the best cheap UK shares to buy this November. Here’s why I’d load up on them.
Riding the EV revolution
Demand for lithium batteries is soaring as sales of electric vehicles (EVs) detonate. So getting exposure to companies involved in the manufacture of these power units is a great idea, in my book. This is where Zinnwald Lithium comes in, a cheap UK share which pulls lithium out the ground in Germany and Ireland.
Of course pulling any sort of mineral out of the earth is complex business. Costs can balloon and production issues can hit revenues, resulting in a big hit to profits. But I still think Zinnwald Lithium is a highly attractive stock on a risk/reward basis. Analysts think that the global lithium-ion battery market could almost treble in size between now and 2030.
Should you invest £1,000 in Associated British Foods right now?
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A top ESG share
The green revolution that’s powering EV demand is also changing the way people view food. More specifically, interest in foodstuffs that don’t contain animal products is increasing as the contribution of livestock farming to global warming comes under the spotlight.
According to the Good Food Institute, sales of plant-based foods in the US, for example, have leapt 43% during the past two years. By comparison, the broader food market has grown by a far-more modest 17%.
Such figures illustrate the huge potential of companies like Agronomics. This and others like it are at the cutting edge of making meals for people and animals with lab-grown meat. This makes the penny stock a very attractive buy, in my opinion, even if the vegan food sector is becoming increasingly competitive.
Work it
Growing pressure on consumer budgets means that TheWorks.co.uk could be also one of the best retail stocks to buy today. I expect demand for its cheap books, games, toys and stationery to take off as runaway inflation prompt shoppers to increasingly seek out bargains.
Value retailing was tipped to be one of the fastest-growing parts of the industry, even before this recent squeeze on shoppers’ wallets. And The Works has been investing massively in its online channel to maximise this opportunity. I’d buy the retailer despite the threat of rising input costs on its margins.
Tracking another top penny stock
I also think SRT Marine Systems is a top penny stock to buy this November. The business manufactures hardware that allows ships and boats to be tracked and monitored on the high seas. Such technology has a wide variety of uses, from accident prevention and improved operational efficiency, to helping seafarers avoid threats like smugglers and terrorists. And it’s used on vessels of all sizes, from the smallest leisure boat to the largest container ships.
Demand for SRT’s transceivers is rising strongly today. And it’s hoped the launch of the company’s forthcoming Nexus product will supercharge revenues growth from 2023. Bear in mind though, that earnings forecasts could take a whack if development of this new tech encounters choppy waters.
