Picture supply: Getty Photographs
Every time I assessment my tackle penny shares, I maintain coming again to Michelmersh Brick Holdings (LSE: MBH). It doesn’t fairly make the minimize now its share worth has edged fractionally above the 100p cut-off. However its market cap of £98m remains to be beneath the £100m threshold. And that slots it firmly into my near-penny inventory class.
Why may buyers avoid this one? Effectively, rates of interest are nonetheless excessive. And international commerce friction might push inflation and maintain charges up for longer. And that every one places strain on constructing demand.
However towards that, forecasts that put the price-to-earnings (P/E) ratio down round 10 by 2027 make it look undervalued to me. Web money somewhat than web debt strengthens that feeling. And a forecast 4.4% dividend yield places a cherry on high.
Even with the sector danger, it must be a consideration for long-term worth buyers.
Funding Belief
CT UK Excessive Revenue (LSE: CHI) funding belief is one other favorite that’s simply above the same old penny share limits. Nevertheless it’s not too far out with a £119m market-cap. And a share worth rise of round 35% up to now 5 years has pushed it to only some pennies over a pound.
What does it have that I like? It has Shell, AstraZeneca, NatWest, Authorized & Common, Imperial Manufacturers… that’s what. They’re all in its high 10 holdings, along with another FTSE 100 dividend big-hitters.
They contribute to an anticipated dividend yield of 5.4%. And dividends are paid quarterly, which might make it a extra engaging proposition for buyers wanting regular revenue.
Being such a small-cap belief it have to be at better danger of buyers pulling out throughout downturns and sending the worth down. And going for one thing just like the a lot greater Metropolis of London Funding Belief may be a safer various. However the diversification ought to assist offset the chance. And I do like that dividend.
Jam tomorrow
Am I pushing issues a bit with a share worth up round 130p? That’s the place specialist medical prognosis agency Diaceutics (LSE: DXRX) is, and its market-cap’s nearly £112m. However that’s attributable to a 50% rise since early 2024, so it’s near being a penny inventory time-wise. And forecasts imply I actually can’t ignore it.
The corporate’s loss-making proper now after a decline following the Covid days. However forecasts recommend revenue within the 2025 fiscal yr, with an increase in 2026 giving a P/E of underneath 18.
It’s additionally in a distinct segment market. And we by no means know when a giant pharma firm may muscle in on its enterprise.
However analysts are bullish on the inventory with a powerful Purchase consensus. And their worth targets vary from 180p to 225p. Even the decrease finish is round 35% above the present worth.
It’s a tiny, high-risk, presently unprofitable, jam-tomorrow development inventory. However the jam may really not be very far method.
