Recent stock market sell-offs have left lots of top-quality UK shares trading very cheaply. Here are four penny stocks I’d buy after recent falls.
A top green share
The Proton Motor Power Systems has been locked in a downtrend since the beginning of 2021. As a consequence, the business — which manufactures hydrogen fuel cells for cars, ships, trains and buildings — has fallen 53% in value over the past 12 months.
But I think the penny stock’s fall to current levels around 29p could be a great dip buying opportunity. Demand for low-carbon-emitting power sources is set to soar as the climate emergency worsens. And many think that hydrogen will have a big part to play as the use of fossil fuels steadily declines.
Remember though, that changing government policy towards hydrogen technology could also have a detrimental effect on Proton’s future profits.
I’d also use recent share price weakness at Gaming Realms as an opportunity to buy. At 30p per share, this penny stock’s down 32% over the past six months, trimming gains on a 12-month basis to 29%. I think this could be a top UK share to buy to ride soaring demand for casino games on mobile platforms. Gaming Realms owns the highly-popular Slingo collection of games.
I also like this low-cost share because it’s taking steps to exploit the fast-growing US marketplace. Gaming Realms’ first Slingo game went live in Pennsylvania with BetMGM last month. I think this tech stock has a bright future, despite the ever-present threat of changes to gaming regulations in its markets.
Steppe on it
I reckon Steppe Cement could experience blockbuster profits growth in the years ahead. As the name suggests, this penny stock specialises in manufacturing the key construction ingredient. And it sells most of its product into Kazakhstan (where it also makes it), a region which is expected to experience terrific economic growth. The Kazakh construction market grew a whopping 11.4% between January and August.
Steppe Cement’s share price has risen 74% over the past year, but it’s down a quarter since the start of September, at 45p. Even though it faces higher electricity costs I think the cement maker’s profits outlook remains compelling.
A penny stock for the e-tail revolution
It’s possible Attraqt Group could suffer as soaring inflation affects consumer confidence. This penny stock provides the technology that allows online retailers to personalise shoppers’ experiences, thus allowing them to steal a march on the competition. Such fears have caused the low-cost stock to fall 17% in value in the past two months alone, and 9% on a 12-month basis. It currently trades at 37p per share.
But from a long-term perspective I think Attraqt has a lot to offer. An increasingly crowded e-commerce market means retailers and product manufacturers will have to invest heavily even to stand out. And, of course, the broader online shopping market has much more room to grow, meaning the penny stock should have an increasing number of potential customers to win.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.