4 penny stocks to buy

I think buying penny stocks is a great way to find great growth shares. Here are four of these cheap UK shares I’m considering buying today.

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There are a few reasons why I think Safestyle could be a top penny stock to buy. Consumer spending on home improvements is strong and driving demand for its door and windows.

Government grants for households to improve their energy efficiency are also helping revenues. Finally, Safestyle has one of the strongest brands in the market, giving it a commanding position in the industry.

Savings levels in Britain have exploded over the past year as Covid-19 lockdowns have limited consumer spending. This means Safestyle can expect demand for its big-ticket products to remain solid. Though I must bear in mind that worsening inflationary pressures in the UK could hit the business if consumer confidence subsequently nosedives.

Riding the EV boom

I think Bacanora Lithium could deliver spectacular shareholder returns too, as demand for lithium-ion batteries explodes. The International Energy Agency is predicting there’ll be 145m electric vehicles on the road by 2030, possibly even 230m if governments accelerate green policy plans.

I like Bacanora too because it owns the Sonora Lithium project in Mexico, described as one of the world’s largest resources of the element. I also like the decent earnings visibility that its supply arrangement with China’s Gangfeng Lithium provides.

Mining for matter can be extremely risky business, and cost overruns and missed production targets can be common. But I still think there’s plenty to be excited about with this particular penny stock.

Gold star

Serabi Gold’s another cheap UK mining share on my radar today. That’s even though bullion prices have fallen further below $1,800 per ounce and continue to fall. Rising bond yields and an increasingly-valuable US dollar are issues that could have a significant indirect impact on Serabi’s profits.

In my opinion though, the outlook for gold prices over the longer term remains robust. It looks like a long and bumpy route out of the Covid-19 crisis is on the cards, something that should keep demand for safe-haven assets like gold bubbling nicely.

I also expect central banks to maintain their ultra-low interest rates, at least compared to their historical levels, for some time yet, thus supporting the inflationary environment. I’d also buy Serabi specifically because of the steady stream of positive exploration and production updates coming out of it of late.

A penny stock for the Covid-19 age

An unfortunate and prolonged public health emergency would also boost Omega Diagnostics. This penny stock provides testing kits that tell whether or not an individual has contracted the virus. Its VISITECT product has received the all-important CE mark that allows it to be used for professional purposes. And in recent weeks, it’s submitted a CE application that could allow it to tap into the gigantic home-testing market.

There’s no guarantee that Omega Diagnostics will receive the green light it’s seeking. And, of course, this could send the company’s share price crashing. But at the moment things seem to be moving in the right direction here and I’m thinking of buying the testing titan for my own shares portfolio.


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.

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