4 penny stocks I’d buy following recent falls

These penny stocks have all fallen heavily in price in recent months. Here’s why I think they could be terrific cheap UK shares to load up on.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Recent stock market sell-offs have left lots of top-quality UK shares trading very cheaply. Here are four penny stocks I’d buy after recent falls.

A top green share

The Proton Motor Power Systems has been locked in a downtrend since the beginning of 2021. As a consequence, the business — which manufactures hydrogen fuel cells for cars, ships, trains and buildings — has fallen 53% in value over the past 12 months.

But I think the penny stock’s fall to current levels around 29p could be a great dip buying opportunity. Demand for low-carbon-emitting power sources is set to soar as the climate emergency worsens. And many think that hydrogen will have a big part to play as the use of fossil fuels steadily declines.

Remember though, that changing government policy towards hydrogen technology could also have a detrimental effect on Proton’s future profits.

Game on

I’d also use recent share price weakness at Gaming Realms as an opportunity to buy. At 30p per share, this penny stock’s down 32% over the past six months, trimming gains on a 12-month basis to 29%. I think this could be a top UK share to buy to ride soaring demand for casino games on mobile platforms. Gaming Realms owns the highly-popular Slingo collection of games.

I also like this low-cost share because it’s taking steps to exploit the fast-growing US marketplace. Gaming Realms’ first Slingo game went live in Pennsylvania with BetMGM last month. I think this tech stock has a bright future, despite the ever-present threat of changes to gaming regulations in its markets.

Steppe on it

I reckon Steppe Cement could experience blockbuster profits growth in the years ahead. As the name suggests, this penny stock specialises in manufacturing the key construction ingredient. And it sells most of its product into Kazakhstan (where it also makes it), a region which is expected to experience terrific economic growth. The Kazakh construction market grew a whopping 11.4% between January and August.

Steppe Cement’s share price has risen 74% over the past year, but it’s down a quarter since the start of September, at 45p. Even though it faces higher electricity costs I think the cement maker’s profits outlook remains compelling.

A penny stock for the e-tail revolution

It’s possible Attraqt Group could suffer as soaring inflation affects consumer confidence. This penny stock provides the technology that allows online retailers to personalise shoppers’ experiences, thus allowing them to steal a march on the competition. Such fears have caused the low-cost stock to fall 17% in value in the past two months alone, and 9% on a 12-month basis. It currently trades at 37p per share.

But from a long-term perspective I think Attraqt has a lot to offer. An increasingly crowded e-commerce market means retailers and product manufacturers will have to invest heavily even to stand out. And, of course, the broader online shopping market has much more room to grow, meaning the penny stock should have an increasing number of potential customers to win.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »