What are the best stocks under £1?

Summary

  • Shares that trade on stock exchanges for less than £1 are known as penny stocks. 
  • In the past one year, many penny stocks have given multifold returns to their Investors.

Companies typically trading below £1 are called penny stocks with high risk and return potentials; these stocks are most suitable for an investor with high tolerance towards risk.

Several companies like Monster Beverage, Ford Motor and JD Sports Fashion once traded under £1 a share. Investors who took the risk and invested during the early growth stages of these companies have gained high returns over time.

As the price for penny stocks is below £1, it typically means an investor with limited funds seeks to buy stocks that are trading at low price in bulk to increase their returns in case of any price movements.

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In this article, we will explore 3 FTSE listed penny stocks: 

Maestrano Group PLC (LON: MNO)

Maestrano Group is a cloud-based artificial intelligence platform that provides data capturing and analytic services for various sectors like infrastructure, banking and transport.

On 15 June 2021, the company had a market capitalisation of £22 million, with the stock quoting at GBX 13.13 and the 52-week range for the stock at GBX 1.88/18.96.

The company has its operations in Australia, the US, UK. In the recent quarter ended 31 March 2021, the company reported a 1% increase in revenue to £ 0.3 million.

The company had recently appointed a new distribution partner for its Nextcore product in the US markets.  With this new addition, the Nextcore distribution network now has 16 international distributors.

Worldwide multiple sectors and Industries have increased focus on adopting cloud-based technology as it is cost-efficient & ensure business continuity. Therefore, a cloud-based service provider would be a good business to own as a shareholder.

Topps Tiles Plc (LSE: TPT) 

The company is UK’s largest tile specialist, engaged in the distribution of ceramic and porcelain tiles, natural stone and other products for residential and commercial use through its distribution network of 342 stores across UK markets.

Property management, fixing & finishing products and investment activities are some of the other segments in which the company operate.

In the March 2021 quarter, company declared £103.2 million in revenue with a profit before tax of £4.0 million and an adjusted EPS of 2.11p.

On 15 June 2021, the stock trades at GBX 74.20 with a market capitalisation of £143 million, and the 52-week range for the stock is GBX 38.35/76.40. In the last 1-year, the stock has delivered 83% return to its shareholders.

Given the current boom in UK housing markets and as economic restriction are lifted, management is expecting a sharp revival in demand, leading to sales & profit margin growth.

Also read: Penny stocks-Risks and rewards of investing in low market cap shares 

Seeing Machines Limited (LSE: SEE)

The company develops and sells proprietary driver monitoring systems (DMS) based on Artificial Intelligence technology which detects and manage driver fatigue & distraction.

Since its launch, the DMS product has gained acceptance & are featured as a safety device in many passenger cars. In addition, the company has joined hands with semi-conductor companies like Qualcomm Technologies and Omnivision Technologies to extend the DMS product offering.

The stock currently trades at GBX 9.50, and the company’s market capitalisation stood at £360 million as of 15 June 2021. In the last 1-year, the stock has given a 237% returns.

In the first half of 2021, the company’s total sales revenue increased by 14.6% to A$18.1 million, with the OEM segment has a 5% growth in revenue & Aftermarket (Fleet & off-road) segment had a 17% rise (A$ 15 million) revenue.


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