Investors don’t need to spend a fortune to construct a winning shares portfolio. Just ask those eagle-eyed enough to buy Apple shares a few decades ago when it was trading in penny stock territory.
Here are a few dirt-cheap UK shares I’m thinking of buying today. I think they could also soar in price in the years ahead.
A penny stock on Cloud 9
The rise of automation looks likely to be one of the megatrends of the post-coronavirus era. It’s one I think could power spectacular earnings growth at UK tech share Netcall. This business builds software that allows companies to automate their processes and improve customer engagement without breaking the bank.
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Revenues at the business rose a healthy 8% in the 12 months to June, but this wasn’t the main takeaway. News that cloud-based sales leapt 26% during the year illustrates the effectiveness of its transition to a cloud model and provides extra reason to be optimistic.
I’d buy this penny stock despite the fact that software giants like Microsoft could put a significant dent in smaller operators like this with their mighty R&D budgets.
Another tech titan
The Internet of Things (IoT) is another one of those supertrends that provides UK share investors like me with excellent opportunities to make money. Put simply, IoT is the system by which a wide range of electronics products (televisions, cars, smart watches and white goods) communicate with each other without the need of human interference.
I’m thinking of investing in penny stock Tern to make money from this technological revolution. This particular business invests in companies which specialise in IoT. And it seems to be on a roll too, advising last month that it’s witnessing “strong momentum” across all of its portfolio companies. I’m aware though that Tern has yet to turn a profit, and that any delays to it moving into the black could be disastrous for its share price.
An emerging market hero
A bright outlook for the African financial products market also makes Old Mutual an attractive buy to me. This particular business provides savings, investment, banking and insurance services in sub-Saharan countries, and generates the lion’s share of profits from regional heavyweight South Africa. I expect demand for its expertise to rise steadily as wealth levels on the continent grow.
There are another couple of significant reasons I like this penny stock. Firstly, it’s well trusted by consumers, a critical quality for companies that look after your money. It’s also just been voted Africa’s fourth most valuable brand in the latest Brand Finance Africa Report.
I also like the steps it’s taking to accelerate the expansion of its digital platform (South Africa is one of the world’s fastest-growing markets when it comes to financial app downloads). I think Old Mutual’s a top buy, despite the threat of intense competition.
