I think these three penny stocks could be too good to miss following recent price weakness. Heres why I’d buy them right now.
Woodbois Limited
Soaring demand for sustainable products means Woodbois Limited (LSE: WBI) could have a very bright future. This penny stock produces dozens of species of African hardwood from its assets in Gabon and Mozambique. And the company is ramping up capacity for its veneer and sawn timber lines to make the most of this massive growth opportunity.
Woodbois stands to gain from rising levels of urbanisation in emerging markets as well as that aforementioned switch to timber from other less environmentally-friendly materials. With housebuilding shortages also needing to be addressed, and tree planting an essential tool in helping lawmakers hit their net zero emissions targets, analysts at asset managers Gresham House think global timber demand will soar 170% over the next 30 years.
It’s true that the fragile economic recovery poses a threat to Woodbois. Demand for its hardwood could suffer badly if broader construction activity sinks in its markets. But as a long-term investor this low-cost UK share still has a lot to offer.
European Metals Holdings
Lithium business European Metals Holdings (LSE: EMH) has steadily lost ground over the past six months despite a steady stream of data showing how electric vehicle (EV) sales continue to boom. I see this as an opportunity to pick up a terrific EV-geared stock at a cut price.
You see, European Metals is developing the Cinovec lithium project in Czechia. The asset is Europe’s biggest lithium resource (as well as one of the world’s biggest tin deposits). In fact, the business recently hike its ore reserve estimates there from 34.5m tonnes to an even-more impressive 54.5m tonnes.
What I also like about European Metals is that Cinovec is located near many of the continent’s largest vehicle manufacturers. It therefore already has a potentially significant customer base on its doorstep.
Development problems at Cinovec could cause the penny stock’s share price to sink further. But, on balance, I think the possible rewards of owning European Metals outweighs the risks.
Science in Sport
Nutritional product manufacturer Science in Sport (LSE: SIS) isn’t without dangers of its own. Rising commodity prices pose a significant threat to the company’s bottom line in the short term and potentially beyond.
But, in my opinion, this danger is more than offset by the huge revenues potential of its winning sports supplement brands PhD Nutrition and Science in Sport. These hugely-popular labels cover a wide range of products for the get-fit obsessed, such as protein shakes, energy gels and vitamin supplements. Latest financials showed sales of these goods soar 25% in 2021, above the company’s own heady expectations.
I think Science in Sport could continue to print impressive revenues growth too as the market expands at breakneck pace. Industry experts at Mordor Intelligence think the sports nutrition sector will grow at a whopping compound annual growth rate of 12.5% between now and 2027.