I’m on the hunt for some great British stocks to buy for my Stocks and Shares ISA. Clearly the economic outlook for the short-to-medium term remains packed with danger as the Covid-19 crisis drags on. But as someone who buys UK shares for the long haul (say a decade or more) I think there’s still plenty of opportunity to make money. There’s a wide range of UK penny stocks alone on my radar right now.
Here are two exciting low-cost shares I think could generate big returns for me over the next decade at least.
Investing in UK shares that have significant operations in Turkey is a turn-off for many as economic conditions there worsen. It’s a problem that theoretically threatens to derail profits growth at DP Eurasia (LSE: DPEU), a penny stock that sources around 70% of revenues from the country. The fact that the company reports its results in Turkish lira adds an extra layer of risk too.
But it’s not all doom and gloom as the business — which operates the Domino’s Pizza franchise in Turkey, Russia, Georgia and Azerbaijan — is expected to witness explosive takeaway demand in its markets over the longer term. The eggheads at Statista, for example, think that the Turkish online food delivery market will expand at a compound annual growth rate of 8.7% through to 2024. The strength of the Domino’s brand means that DP Eurasia should make the most of this opportunity too. This penny stock is on my shopping list today. But I may hold off before buying and wait for economic conditions in Turkey to stabilise a bit before investing.
DP Eurasia trades at 74p per share.
Another top penny stock
I wouldn’t have any problems adding Raven Property Group (LSE:RAV) to my Stocks and Shares ISA right now, however. This UK share owns and operates warehouse facilities in Russia. And the lion’s share of these are located in the major metropolises of Moscow and St Petersburg. This means that this stock’s in great shape to exploit fast growth in the Russian e-commerce sector. Analysts at Euromonitor, for example, expect online sales in the country to rise between 10% and 15% over the next five years.
It’s perhaps no surprise that investment in Russia’s warehousing and logistics industries is rising. Just this week Reuters broke the news that Sberbank, the nation’s largest bank, was planning to spend between $4bn and $4.6bn on non-banking operations. A significant chunk of this cash is earmarked specifically for the logistics sector too. Be warned though, the slapping of new sanctions on Russia by the US could hamper projected e-commerce growth rates in the coming years. And so profits at Raven Property could well disappoint and pull the penny stock’s share price lower.
Raven Property Group changes hands at 28p per share.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Domino's Pizza. 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.