Should I buy these 2 exciting penny stocks in November?

I’m looking for the most spectacular cheap UK shares to add to my investment portfolio next month. Here are two I’m paying close attention to.

| More 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.

British Pennies on a Pound Note

Image source: Getty Images

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.

sdf

I love shopping for dirt-cheap UK shares. Here are a couple of top-quality penny stocks I’ve been thinking of buying in November.

A penny stock for the cannabis boom

A flourishing medicinal cannabis market could make Kanabo Group (LSE: KNB) one of the hottest growth shares for this decade. The penny stock manufactures cannabidiol (CBD) oil products as well as the medical-grade VapePod vaporiser. It hopes its cutting-edge vaporiser technology in particular will help it put a dent in the hugely-competitive CBD market and deliver splendid long-term earnings growth.

The news coming out of Kanabo in recent months has been highly encouraging on two fronts. It has signed an accord with Medocann Group to develop new medical products. Meanwhile, Materia Malta (with whom Kanabo agreed to merge with over the summer) received a licence to begin producing cannabis for medicinal and research purposes.

Investors need to remain aware that Kanabo lacks the financial clout of the US heavy-hitters in this fledgling industry. It could therefore be squeezed out of the market as they have more to invest in their products and marketing. Kanabo is also at the pre-revenues stage (excluding a recent small pilot programme), and further share placings could be needed to help it get off the ground.

I’m extremely tempted to buy Kanabo shares right now. But my concerns over the intense competition it will face when it finally gets to market are holding me back. I might ultimately miss the boat. But I think I’ll wait until a clear picture on its early sales performance and the reception of its products emerges before investing my hard-earned cash.

Solar superstar

I’d be much happier to spend out on US Solar Fund (LSE: USFP) this November. As the name suggests, this penny stock invests in solar farms on the other side of the Atlantic. I think it’s therefore on course to capitalise on soaring demand for renewable energy as the climate emergency worsens.

There’s no guarantee that US Solar Fund will generate better shareholder returns that Kanabo, of course. For one, the amount of energy generated by solar panels is obviously highly sensitive to weather patterns. Overcast conditions can have a significant impact on this and, by extension, revenues at solar farm operators. There’s also the fact that operating vast swathes of solar panels is pretty expensive business.

These drawbacks wouldn’t discourage me from investing however. The global solar market is tipped for huge growth over the next decade as fossil fuels fall out of favour. Trends Market Research recently suggested that the global market will be worth $223.3bn by 2026. That compares with a value of $52.5bn in 2018. And the US is one of the friendliest on the planet when it comes to solar policy, putting US Solar Fund in great shape to exploit this opportunity to the fullest.


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

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

After the FTSE 100 broke 9,000 points, does the UK market look overvalued?

The FTSE 100 went past 9,000 points this week but Mark Hartley says there are still bargains out there and…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

Nvidia stock hit an all-time high this week. But could it be a bargain, even now?

After the Nvidia stock hit an all-time high this week, might it still be an attractive opportunity for our writer's…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

As the FTSE 100 hits an all-time high, I’m following Warren Buffett’s advice!

Billionaire investor Warren Buffett is a font of stock market wisdom. Our writer reflects on his approach, as the FTSE…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

The FTSE 100 reached an all-time high this week. Is it too late to invest?

The FTSE 100 hit a new all-time high level over the past few days. Our writer explains why he thinks…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing Articles

Here’s how £9,000 in savings could be used to target £343 a month of passive income

Christopher Ruane sets out a passive income plan that he reckons could help someone make sizeable sums over time without…

Read more »

ISA Individual Savings Account
Investing Articles

How to build a Stocks and Shares ISA with a 6% dividend yield

It’s easy to build an investment portfolio with a high dividend yield today. But investors need to manage risk carefully,…

Read more »

Shot of a senior man drinking coffee and looking thoughtfully out of a window
Investing Articles

How risky is switching from cash savings to a Stocks and Shares ISA?

The UK government is making moves to encourage cash savers to consider investing via Stocks and Shares ISAs. But what…

Read more »

Friends and sisters exploring the outdoors together in Cornwall. They are standing with their arms around each other at the coast.
Investing Articles

4,985 shares of this FTSE dividend star pay an income equal to the State Pension!

Zaven Boyrazian calculates how many shares investors would have to buy to generate enough income to match the UK State…

Read more »