I think these low cost stocks could help me achieve spectacular returns. Here’s why I would buy these penny stocks “almost” right now. Each costs less than 150p.
The relentless growth of e-commerce means that Macfarlane GroupLabels and packaging products are expected to remain in high demand. The company designs, manufactures and distributes generic and bespoke packaging materials which it sells in the UK and Europe. It also sells its labels in the United States. It therefore has considerable strength thanks to geographic diversification.
Its operations may not be the most exciting, but they serve an important part of daily life. Statista researchers believe the global e-commerce market will be worth $6.39 billion by 2026, up from $4.89 billion last year. Despite the threat posed by rising commodity prices, I think Macfarlane could be a great buy for the online shopping boom.
A high-energy stock
I think so too VH’s Global Sustainable Energy Opportunities could be a great investment for me for the next 10 years. This quasi-penny stock is helping UK equity investors make money from the growing global demand for green energy. According to the International Energy Agency, 95% of the increase in global energy capacity by 2026 will come from renewable energies.
VH Global invests in various low-carbon technologies around the world. In recent months, it has acquired new solar assets in Australia and Brazil, for example. I would buy VH Global even though the highly regulated nature of its operations could create hurdles at any time that undermine profits.
Bakk in business
Bakkavor Groupis in the box to take advantage of the upturn in demand for “to-go” food. It manufactures salads, sandwiches and baked goods and has expanded into the United States and China to tap into these rapidly growing markets.
According to the IGD, the takeaway food market will account for 23% of the total food sector by 2026. This compares to the 21% it would have commanded last year.
The demand for ready meals is skyrocketing as people’s lifestyles become busier. This is a theme that should continue for the foreseeable future. My only concern about buying Bakkavor shares is the possible return of Covid-19 lockdowns if infection rates increase. This, of course, would severely affect the demand for its edibles.
An “almost” very stable penny stock
I actually think Secure residential income should thrive even if the pandemic continues. As its name suggests, this business generates income by renting out homes, a real estate segment that history suggests is expected to remain robust regardless of economic, political or social crisis.
But this part of the UK is far from boring. I think this “almost” penny stock could deliver strong earnings growth this decade. The shortage of affordable rental properties in Britain looks set to continue.
I also like Residential Secure Income’s exposure to the fast-growing condo market. I would buy the business even though the Bank of England’s plans to ease mortgage affordability could hit broader demand for rental housing.
The post 4 “almost” penny stocks I’d buy to own for 10 years! first appeared on The Motley Fool UK.
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommended Macfarlane Group. The opinions expressed on the companies mentioned in this article are those of the author and may therefore differ from the official recommendations we give in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of information makes us better investors.
Motley Fool United Kingdom 2022