Penny shares have higher earnings possibility, right? And there’s much less to shed?Hmmm Those are both incorrect ideas.
The optimum we can shed from a cent share is 100%, specifically the like with any type of supply. And I would certainly claim there’s most likely a better possibility of a wipeout, as something has actually normally failed to send them to such reduced degrees.
I’ll quickly point out one as a care. I will not call the business, yet 5 years ago its shares were valued at around 1p. Not a lot to shed? They have actually collapsed greater than 95% ever since.
The worth of a financial investment relies on a business’s efficiency, not simply the share cost. Here are 2 that I such as.
When you think about purchasing equity capital, what enters your mind? Visions of millionaire capitalists tilling significant money right into personal equity companies?
With Triple Point Venture VCT (LSE: TPV), we can take a crack at with also small amounts.
I would certainly never ever come across it till I review my coworker Jon Smith’s post, “This penny stock invests in start-ups. Here’s why I think it could surge“. But we Foolish investors learn from each other, right?
Investing in venture capital can be a risky business. The things they put our money into might not be easy for us to investigate and understand ourselves. We have to hope the managers are on the ball.
If trusting our cash to folks in the City without being able to properly understand what they’re doing with it sounds out of touch with the Foolish approach… well, yes, that’s a good point.
Still, the trust has put money into forestry management using artificial intelligence (AI). And some has gone to a company working on cost-effective electric vehicle (EV) schemes for businesses.
Those are high-profile right now. And it might not need much for one of them to take off and give the Triple Point share price a boost.
Things can go wrong with start-ups, of course. But I might put a small amount of my 2025 investment cash into this penny stock.
I’ve followed Topp’s Tiles (LSE: TPT) for a long time.
I’ve bought its products, and I like them. A lot of others do too. And over the long term, it’s built up a strong following.
The problem is, the business has been hit by multiple external crises. The most recent is the fallout from the pandemic, which immediately stopped us doing anything more than essential shopping.
Inflation, high interest rates, expensive mortgages, depressed building sector… they’ve all taken their toll.
But at FY time in November, the company told us it’s “continuing to take market share in a difficult trading environment.” And though the marketplace is “c. 20% down on pre-Covid levels,” Topps saw profits 14.9% in advance of 2019.
