Top 5 penny stocks to buy in December 2021

Highlights

• Investment strategies have changed drastically over the past few years involving various aspects and has become multi-dimensional.

• Investors should do in-depth research, select fundamentally sound companies for investment, and stay invested for the long-term.

Investment strategies have changed drastically over the past few years involving various aspects and has become quite multi-dimensional. Traditionally investment was primarily into two categories, i.e., bonds and equity. However, with time many new subcategories have been added within above mentioned two broad categories.

One such investment approach which is quite popular and attracts new investors is investment in penny stocks. First-time investors in the stock market and those with limited capital tend to direct their investment in penny stocks. These stocks generally trade below £1, and investors with limited funds can buy a greater number of such stocks with a limited amount of funds with an aim to generate high return on investment.

However, all penny stocks don’t show similar price movement; some low-quality companies whose underlying business model is weak can also destroy investors wealth. Therefore, investors should do in-depth research and select fundamentally sound companies for investment. Also, investors should have a long-term investment outlook to gain maximum returns.

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Let us look at FTSE listed penny stocks and their investment prospects:

Abingdon Health Plc (LON:ABDX)

The company operates in the medical equipment segment and is engaged in the development and manufacturing of diagnostic test kits to detect various diseases. It reported a 123% rise in revenue at £11.6 million for the financial year ended 30 June 2021. The company’s Covid-19 rapid test kit manufacturing business has been progressing in the right direction, and it delivered over 1 million units of antibody test kits to its clients. The company plans to expand its rapid test kits offering in the future to support the business growth.

Abingdon Health Plc’s current market cap stands at £34.45 million as of 26 November 2021.

Vector Capital Plc (LON:VCAP)

FTSE AIM-listed company operates in the financial segment offering secured lending facilities to commercial clients. It generally provides loans of a shorter duration of up to 12 months at fixed interest rates needed for working capital requirements, land development and other similar purposes. For the six months ended 30 June 2021, the company’s loan book grew by 24.2% at £40.6 million, while its reported revenue was up by 16% at £2.5 million.

Vector Capital Plc’s current market cap stands at £18.55 million as of 26 November 2021.

Inland Homes Plc (LON: INL)

The company operates as a brownfield property developer in the South and Southeast of England. It develops residential properties for sales and leases purpose. The company’s business witnessed significant growth because of solid underlying demand for new homes in the UK. As a result, its revenue was £195 million (FY 20: £124 million) for the financial year ended 30 September 2021. The company’s forward order book of partnership housing segment increased by 56% at £164.7 million

Inland Homes Plc’s current market cap stands at £118.80 million as of 26 November 2021.

EQTEC Plc (LON: EQT)

The company operates in the energy segment, generating clean energy from 50 different feedstocks using its patented technology. The company’s in-house gasification technology has been witnessing wide acceptance from clients. Also, the company has been collaborating with different other companies to develop energy solutions. The company expects its revenue to grow by 700% to €15 million for the year ending 31 December 2021.

EQTEC Plc’s current market cap stands at £113.47 million as of 26 November 2021.

Appreciate Group Plc (LON:APP)

The company operates as a leading UK-based multi-redemption product provider to consumer and corporate clients. During the six months ended 30 September 2021, the company’s billings were up by 19.6% at £118.2 million, resulting in business revenue of £41 million. The pre-tax loss of the company was reduced significantly to £2 million (H1 FY2021: £6.2 million). The company expects high revenue growth during the Christmas festival season.penny

Appreciate Group Plc’s current market cap stands at £42.39 million as of 26 November 2021.