It’s only a matter of weeks before the Stocks and Shares ISA deadline comes around. So I’m looking for some exciting growth shares to load up on before I lose my remaining allowance for the 2021/2022 tax year. Here are two top penny stocks I’m considering investing in.
An attractive dip buy
I think buying BATM Advanced Communications (LSE: BVC) could be a shrewd move following recent extreme share price weakness. The business — which manufactures coronavirus-testing equipment — has slumped as fears over the pandemic have receded. However, as soaring cases in China show, the battle against the pandemic is far from over. Indeed, Infection numbers in the country have just hit two-year highs.
In a recent article in The Lancet, scientist Christopher Murray claimed that “Covid-19 will continue but the end of the pandemic is near”. This suggests that demand for BATM’s products could continue ticking along even if a fresh full-blown upturn in the pandemic is avoided.
But I wouldn’t just buy this penny stock for its Covid-19 testing kits. The business also generates a sizeable chunk of revenues from manufacturing networking and cyber security products. These are two areas that could grow significantly as the digital revolution clicks through the gears. Revenues from BATM’s cyber security division, for example, leapt 111% year-on-year in 2021.
A high-profile failure of BATM’s systems could prove catastrophic for future revenues. But it’s still my belief that the advantages of owning this particular cheap UK share outweigh the risks.
Another great penny stock
Copper values are flying as the market frets over shortages of the essential commodity. Disappointing red metal production in Chile has shaken nerves in recent days, and concerns over supply due to the Russia-Ukraine dispute have added fuel to the fire. Red metal stockpiles in London Metal Exchange (LME) warehouses have fallen to their lowest level since the early 2000s.
Three-month copper prices have just hit fresh all-time highs of around $10,800 per tonne on the LME as a result. Many analysts suggest the market could experience a serious deficit of material in 2022 and beyond too, meaning that metal values could remain white hot. This bodes well for Phoenix Copper (LSE: PHC), a miner which looks on course to begin producing the metal late this year.
I’ve long talked about copper stocks as a great investment as the green revolution takes off. The highly-conductive commodity they dig for is an essential material in the manufacture of electric cars and charging infrastructure. It is also used in massive amounts to build renewable energy technology like wind turbines. Thus there’s a good chance copper prices — and by extension profits at companies like Phoenix Copper — will be strong over the next decade at least.
Phoenix Copper isn’t a guaranteed winner, of course. In particular, any difficulties in getting its Empire metal mine in Idaho up and running in H1 2023 would have significant consequences for profits forecasts. That said, I still think this penny stock remains a highly-attractive investment as investment in low-carbon technologies rockets.
