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Every time I review a take on penny stock, I get back Michelmersh Brick Holdings (LSE: MBH). Now that stock prices are just above the 100p cutoff, they are not being cut back. However, the market capitalization of £98 million remains below the £100 million threshold. And it slots it firmly into the Penny stock category near me.
Why do investors avoid this? Well, interest rates are still high. And global trade frictions can boost inflation and sustain longer. And it’s all putting pressure on the demand for the building.
However, by 2027, it is undervalued to me by the forecast that reduced the price-to-revenue (P/E) ratio to about 10. Net cash, not net debt, strengthens that feeling. And with a 4.4% dividend yield forecast, the cherries are placed on top.
Even sector risks must be a consideration for long-term value investors.
Investment trust
CT UK High Income (LSE:CHI) Mutual funds are another favorite that immediately has regular penny share limits. But that’s not far from the £119 million market cap. And with a rise in stock prices of around 35% over the past five years, it has only pushed the pound to just a few pennies.
What do I like? have shell, AstraZeneca, Nut waist, Legal & General, Imperial Brand…What is that? They are all in the top 10 holdings, along with some others FTSE 100 Big hitter for dividends.
They contributed to 5.4% to the expected dividend yield. And dividends are paid quarterly, making it a more attractive proposition for investors looking for a stable income.
Because of this trust in small-caps, there is no doubt that there is a high risk that investors will pull out and lower prices during recession. And I’m going for something that’s much bigger London City Investment Trust It could be a safer alternative. However, diversification should help offset the risks. And I like that dividend.
Jam tomorrow
Is the stock price rising about 130p, pushing things up a little? That’s a specialized medical diagnosis company diaseutics (LSE: DXRX) has a market cap of around £112 million. However, that has increased 50% since early 2024, so in time it is closer to Penny’s stock. And the prediction means I can’t really ignore it.
The company is generating current losses after declining after COVID days. However, the forecast suggests profits for fiscal year 2025, with the rise in 2026 giving P/E under 18 years of age.
It is also in a niche market. And we don’t know when a major pharmaceutical company might create muscle in its business.
However, analysts are bullish on stocks with a strong buying consensus. Price targets range from 180p to 225p. Even the bottom edge is about 35% above the current price.
It is a small, high risk, currently unemployed Jam Tomiro’s growth stock. But the jam may not be that far in reality.
