Market volatility has increased in recent days following the tragic events in Eastern Europe. There could be more choppiness ahead too as macroeconomic and geopolitical tensions persist. Still, there are plenty of top UK shares I’m thinking of buying following heavy falls in recent weeks and months. Here are three quality penny stocks on my wishlist for March.
Proton Motor Power Systems
The news flow coming out of Proton Motor Power Systems (LSE: PPS) has been highly encouraging in recent weeks. Yet this hasn’t prompted an improvement in the company’s share price so far (it remains 63% cheaper than at this time last year). I think the market has missed a trick here and would consider buying Proton today.
This penny stock manufactures stationary power units and fuel cells for cars, boats, and trains that utilise hydrogen technology. And earlier this month it announced it had made “a promising start to 2022” with €1.3m worth of orders booked so far. This adds to the €3.2m worth of orders Proton booked last year.
I think Proton Motor Power System’s profits could soar as the climate emergency drives demand for cleaner energy systems. Competition from alternative power sources remains a threat, of course, but I think the potential size of the hydrogen market still makes it a top stock for me to own.
Creightons
Beauty and personal care product maker Creightons (LSE: CRL) remains 3% more expensive that it was 12 months ago. But the share price has plummeted around 50% from September’s record peaks as investors fear the impact of rising inflation on consumer spending.
This is a risk I need to consider, along with the possibility that demand for Creightons’ hand sanitiser could sink as the pandemic recedes. However, on balance I believe the penny stock is still an attractive investment target. I think demand for its skincare and healthcare products could rise strongly as people get out and about again following Covid-19 lockdowns.
I’m also encouraged by Creightons’ acquisition of the Emma Hardie and Brodie & Stone brands last year to strengthen its branded product ranges. The business has a cash-rich balance sheet which could help it hunt for more takeover targets as well.
Triple Point Social Housing REIT
The Triple Point Social Housing REIT (LSE: SOHO) share price has fallen 16% in value over the past year. This has consequently taken the company firmly into penny stock territory. As a long-term investor I think this weakness makes it an attractive dip buy.
Triple Point provides accommodation for individuals with special needs. This is a market which is tipped for strong growth — the London School of Economics has previously said that 200,000 new specialised supported housing units will be needed between 2015 and 2030. The business is highly active on the acquisition front to fully capitalise on this opportunity too.
Changing government policy regarding social housing funding could hit Triple Point’s profits hard. But as things stand today I believe the business remains a great stock to buy for solid long-term returns in my portfolio.
