3 cheery UK shares under £5 to buy this Christmas!

I’m searching for the best cheap UK shares to buy for my investment portfolio this Christmas. Here are three low-cost lovelies on my radar.

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I don’t know about you but I’m sick of reading (and writing) about coronavirus and its implications for the global economy. But the prospect of a long road out the pandemic is something that share investors like me need to seriously consider.

But there are still plenty of great UK shares I think should thrive irrespective of the public health crisis. So let’s put Covid-19 to one side for a second and keep things cheery.

Here are three such British stocks I’m considering buying this Christmas. Each costs less than £5!

A magical UK share

Harry Potter is the gift that keeps on giving for Bloomsbury Publishing (LSE: BMY). It’s been a quarter of the century since JK Rowling’s boy wizard hit the bookshelves and yet readers remain spellbound by his capers.

This makes Bloomsbury one of the most secure media shares to buy in my book. According to Nielsen, Harry Potter and the Philosopher’s Stone was the fourth highest-selling children’s book in the six months to August.

But Bloomsbury is about much more than Harry Potter. Its foray into academic publishing is also paying off handsomely and sales here soared 32% between March and August.

I think this cheap UK share’s a top buy, even though poor reviews of a new title could have a significant impact upon group sales. Bloomsbury trades at 345p per share right now.

The gaming great

Video game sales have rocketed over the past decade as gaming as a mainstream pastime has taken off. I’ve invested in software development support company Keywords Studios to grab a slice of this action.

And I’m tempted to invest in one of London’s listed games publishers like tinyBuild (LSE: TBLD) too following Keywords’ latest update on Monday. Then it said it was hiking full-year profits forecasts thanks to what it described as a “buoyant” video games market.

Investing in publishers like tinyBuild carries a higher degree of risk than services providers like Keywords. Competition in the games market is intense and smaller publishers like these lack the resources of the mega studios like Electronic Arts and Activision Blizzard to win consumer attention.

But I’m encouraged by tinyBuild’s track record of making highly-popular games such as Hello Neighbor. This tech company trades at 187.5p per share.

A top penny stock I’d buy

As a long-term investor, there’s a lot I like about Hornby (LSE: HRN) shares. Demand its train sets, miniature cars and model kits isn’t likely to explode any time soon. But I love the decades-old appeal that its brands like Corgi, Airfix and Hornby command with hobbyists.

I feel certain they will continue to draw in revenues many years from now. Latest financials showed sales rise 3% in the six months to September.

My main concern with Hornby are supply chain problems that could hit manufacturing and push up costs. That said, I believe the benefits of owning this cheap UK share more than offset the drawbacks. Penny stock Hornby trades at 40p per share.

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 considered so you should consider taking independent financial advice.

Royston Wild owns Keywords Studios. The Motley Fool UK has recommended Bloomsbury Publishing and Keywords Studios. 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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