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3 FTSE 250 penny stocks to buy for 2022

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As I plan my investments for the next year, I am taking a closer look at penny stocks that could do well. There are many such FTSE stocks around of course, but not all of them have proven their credentials in the past or look like they are ready to start rising in the near future. But I think these three FTSE 250 stocks have potential.

Cineworld: a FTSE 250 stock that could explode soon

The Cineworld share price has lost much of the value it had regained earlier in the year. It is at almost half the levels it was at in May at around 65p. But that could change soon. In another article I wrote about it today, I talk about how 2022 could be the year for the Cineworld share price. 

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The pandemic is on the wane, stock markets are on fire and at the macro level, the entertainment sector is growing at a fast clip. All of this points exactly in one direction to me, and that is a possible share price explosion for the stock. Of course all these trends are still developing, so a lot can still go wrong. But I believe things will go right, which is why I have bought it.

Mitie Group: the penny stock is set to make profits 

FTSE 250 facilities management stock Mitie Group has already shown plenty of promise. Its share price has more than doubled over the past year. It remains a penny stock for now though, with a value of around 70p. 

It had fallen into losses in the recent past, which is a bit of a downer. But guidance for 2022 is positive, as it expects to make a profit. The company’s cleaning services have been in demand through the pandemic, and could well remain so as we move into the next year as well. Its other businesses like engineering and catering could pick up too now, as business around the world is getting back to usual. 

UK Commercial Property Investment Trust: property play

Another FTSE 250 penny stock I like is the UK Commercial Property Investment Trust (UKCM), which trades at around 77p right now. The stock had a price of sub-100p even before the pandemic started. And it has regained much of the value it lost in last year’s crash. But it still has some way to go. In fact, I think that in 2022, it may just lose its penny stock status. 

After taking a hit to profits in 2020, it reported a healthy earnings increase for the first half of this year. Moreover, the outlook for UK’s commercial property sector is getting better, as I pointed out in the context of another real estate investment trust (REIT) Hammerson a few days ago. 

What I’d buy

While all of them are great stocks, I cannot buy each and every stock at the same time. I have already bought Cineworld, so I will continue to hold it. The prospects for Mitie Group as well as for UKCM look good, but I am more inclined to buy the former right now. As far as REITs go, I am actually interested in buying FTSE 100 stock Segro right now, otherwise, UKCM would have been on my list too.  

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Manika Premsingh owns shares of Cineworld Group. 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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