3 Worthwhile UK Penny Stocks to Invest In
2020 was a particularly unprecedented year for most investors. A quick glance into the financial market, specifically the stock market, reveals just how unpredictable the year was. Small companies won big, and the business giants and moguls lost a sizeable share of their investments. However, this does not change the profitability model in the stock exchange market. With adequate research, coupled with wise and timely investments, penny shares to buy UK 2021 is the main deal.
One of the ways to maximize your profit potential in the stock market is investing in penny stocks. What are penny stocks, and how do you find the right stock to invest in? Here’s a deep dive into everything you need to know about buying penny stocks in the United Kingdom.
What are penny stocks?
Penny stocks also referred to as penny shares, are best destined as the common stock that trades at low prices. In the UK, for instance, penny shares should have their prices below £1. In the US, the cap for penny shares is $5.
Additionally, these companies trading penny stock need to have a market cap of below £100 million and $300 million in the UK and US, respectively.
Penny shares vary from large businesses stocks as they are regarded as a more speculative investment. Since these penny stocks companies are relatively small, their future is widely projected. However, the right kind of penny shares can have massive returns.
Some of the large corporations known today started off trading penny stock. A few examples of mega-corporations that started with penny stocks include Monster beverage, Ford, and JD Sports.
What factors affect the success of penny stocks in the UK?
Are you looking for the right penny shares that could be worth a lot more in the future? The truth is, knowing where to start is the biggest challenge. With all the terms hurled around the stock exchange market, you could easily feel like you’re drowning in a complex field.
This, however, couldn’t be further from the truth. Once you have your footing in the stock market, you’ll realize is easier than you probably thought.
Before choosing the right penny stock to buy, you should first consider the factors and themes that could affect these stocks. Some of the factors to contemplate while buying penny shares in the UK include;
- Brexit – With the post-Brexit plan still in play, the transition process and adaptability for British and European businesses will largely influence the price and state of penny stocks.
- Covid-19 – With the pandemic overturning the status quo for most large companies, there’s now an opportunity for smaller businesses to rise in the stock exchange market.
- Cannabis restrictions – The UK is the largest exporter globally when it comes to cannabis and related marijuana products. Any guideline changes and restrictions regarding the cannabis industry will have a ripple effect on the numerous cannabis companies listing in the UK penny stock market.
What are the best penny stocks to buy in 2021?
So, now that you know where to start, you may be looking for the best penny shares to buy in UK 2021. Here are some of the most promising penny shares for you to invest in this year.
With blockchain set to be the next digital frontier, companies in this field have gained popularity and repute in recent times. Quantum Blockchain Technologies, formerly Clear Leisure, is a relatively new player in the market and is making a name for itself in the field.
Quantum Blockchain Technologies recently switched from the tourism sector to focus on blockchain and cryptocurrency technologies. The company is also seeking to invest in cloud mining, artificial intelligence, and quantum computing.
If you’re looking to invest in a tech company of the future, Quantum Blockchain Technologies is a great investment opportunity for you.
2. GalantasGold Corp
Boasting ownership to active mines in Northern Ireland and with branches in Canada and the UK, Galantas is poised to be one of the big stock winners in 2021.
The company deals in the excavation and value addition of precious metals and minerals such as gold, lead, and silver. Galantas has also recently acquired permits to mine from several locations. If you’re an investor seeking to buy stocks in the precious metals industry, Galantas Gold Corp is a great way to go.
Ebiquity is a fast-growing marketing and media consultancy firm with more than 18 offices across the globe. Some of the company’s branches are strategically located in high-value advertising markets such as London, New York, Madrid, Singapore, Sydney, Paris, and Shanghai.
The company is now shifting focus from wasteful media expenses to delve into using data and analytics to streamline and maximize its marketing efforts. Ebiquity has a solid reputation since its inception in 1997. Invest early and stand a chance to gain massive returns from Ebiquity.
Other promising penny stocks to invest in now include;
- Games Workshop
- Ocado group
- Maestrano Group
- Imperial Brands Group
Ultimately, these penny shares are speculated to rise in the recent future. They are a great investment opportunity whether you’re new to the stock exchange market or looking for short and long-term investment opportunities.