There’s a variety of macroeconomic issues that could continue to pull the value of my investment ISA much lower too. These include soaring inflation, aggressive central bank rate hikes, and a global resurgence in Covid-19 cases.

I’m still buying stocks!

But the threat of a fresh bear market — perhaps even a stock market crash — isn’t stopping me from building my Stocks and Shares ISA.

This is because I buy UK shares with a long-term view. I look for stocks I believe will deliver a spectacular capital gain over say a decade, or more.

There are clear dangers to many stocks I own in next 12 months, perhaps a bit longer. Though I intend to cling onto them in the expectation that I will still make a huge capital gain from them.

2 UK shares for an ISA

Here are two top stocks I’d use my own ISA allowance to buy today. I think they will deliver spectacular investor returns.

1. Agronomics

Agronomics (LSE: ANIC) is a share I expect to soar in value as the theme of ethical, or responsible, investing takes off.

This venture capital business invests in firms that produce agricultural products directly from cell cultures. It has spread its net wide too as it owns stakes in manufacturers of lab-grown beef, chicken, and pork, even leather and pet food.

Demand for these types of products are tipped to soar as consumer worries over animal welfare and emissions levels from traditional farming methods grow.

Analysts at Boston Consulting Group believe that ‘alternative protein’ products like this could account for 22% of all the world’s protein consumption by 2035.

The companies Argonomics invests in, like Mosa Meat, are tiny. So they lack the huge budgets that food giants such asTyson Foods — one recent entrant in the lab-grown meat sector — have to exploit this growing trend.

But Agronomics is taking steps to make a big impact on the market. The range, and the quality of the cutting-edge companies it has invested in, mean it still has exceptional investment potential.

2. WH Smith

I believe WH Smith (LSE:SMWH) could prove a great buy for ISA investors over this time frame too.

I like this UK share because of its ongoing international airport expansion programme. The business currently has 125 stores waiting to open and tender activity to add to its estate is ongoing.

What this means is that the business could deliver exceptional profits growth as the global commercial aviation sector grows. Airbus thinks worldwide passenger traffic will grow at an annualised rate of 3.6% over the past 20 years. The number of people passing through WH Smiths doors could therefore be set to balloon.

Trading at this UK share came at the top end of forecasts in the 15 weeks to 11 June. I’d buy the stock, even though the impact of rocketing inflation on travellers’ spending power is a near-term concern.

When digital meets physical

Today, we have programmed almost everything there is to program in the digital world. Much of the infrastructure that will be digitally created has arguably been created, and is merely being expanded upon today.

Dating far back to the rise of stem cell therapy – Dolly the sheep comes to mind as a landmark breakthrough – we have not had much luck in the programming or reprogramming of the physical world (or at least it has been a lot slower in developing than many thought back then). That is all changing, and this is where I feel the investment opportunities undoubtedly lie today.

Technology has, and will continue to, converge with and disrupt every sector to the extent that new markets are built and old ones are toppled. Supply chains will be re-routed and built anew. Now this is where biotech — and in particular, synthetic biology — has a leading role to play in the future, by tweaking, tuning and recreating an undistinguishable version of the physical.

Investing in the sustainable mega-trend

With that being said, the investment case for Agronomics is clear. It invests in companies with technology that can provide me with exposure to cellular agriculture (in other words – meat grown from cell cultures in labs) and the ability to disrupt the food production market. The market here is being made as we speak, with both Meticulous Research and McKinsey & Company both projecting the animal-free food market to be worth £20bn by 2030, touting a compound annual growth rate (CAGR) of 19% until then.

The company itself states that “the adoption of new technologies and processes is vital to address the damage to the natural environment”. In an age where climate change, animal welfare, health and sustainability are at the forefront of socially conscious minds, consumers seem to agree. This is demonstrated by the growing adoption of a vegan lifestyle.

Not only that but companies like Starbucks, McDonalds, Subway and Burger King now provide meat-alternative options and have announced targets to be substantially meat-free by the end of the decade. The trend is clear, and the opportunity to decouple supply chains from animals and the environment is one that will not be missed.

Scarcity prevails… for now

Analysing Agronomics, I can see that the business would be considered expensive with a price-to-earnings ratio of 50. The company has traded at a premium since listing, so this is no surprise.

Higher multiples are often paid, however, for companies operating within a game-changing sector and delivering the kind of growth that Agronomics has so far. Moreover, it also enjoys the benefit of scarcity value as the only UK-listed investment vehicle targeting cellular agriculture.

That being said, Agronomics will also face stiff competition in the future from established companies with deeper pockets, as firms like Tyson Foods, Kraft Heinz and even Amazon enter the picture — increasing economies of scale will also be key to widespread adoption.

Taking the above into account, Agronomics owns an impressive suite of disruptive companies and presents a huge long-term growth opportunity for my Stocks and Shares ISA.

Cutting-edge

The use of meat substitutes in menus has massive commercial potential. The decision by Burger King to offer vegan-only menus at one of its prime London restaurants is evidence of this. The chain has plans for its menus to be 50% meat-free by the end of the decade.

Supermarkets and restaurants across the globe are rapidly changing their product ranges to mirror changing consumer tastes. And one UK share I think is a great way to ride this theme is Agronomics (LSE: ANIC).

This business invests in fledgling food businesses that make cultivated (in other words laboratory-grown) meat. It’s a sector that’s tipped for fast growth as people try to remove animals from their diet on ethical and environmental grounds.

Analysts at McKinsey & Company believe the lab-grown meat market will be worth $25bn by the end of the decade.

Playing the meat-free boom

Agronomics has invested in various cultivated meat niches to make the most of this opportunity. Some of the businesses it’s ploughed capital into include lab-grown beef specialist Mosa Meat and ‘cultivated’ seafood firm Shiok Meats. And last month it launched a joint venture to develop animal-free pet food under the Good Dog Food brand.

As I say, the animal-free food market is becoming increasingly attractive. The problem for Agronomics is that it’s also getting increasing attention from other food producers. The industry’s big beasts (like Tyson Foods) are piling in and the tiny operators that Agronomics champions might struggle to make a splash.

I still find the firm appealing, however. The size of the market opportunity makes it a highly attractive growth share in my book. Some of the companies in its portfolio might also emerge as takeover targets from some of the food industry’s larger players.

Another top growth share

A less speculative (but also extremely attractive) growth share I’m also considering buying today is Spire Healthcare Group (LSE: SPI).

This UK share operates dozens of private hospitals and clinics across the country. And demand for its services is rocketing as the free healthcare system in Britain buckles. Latest NHS data last week showed waiting lists for hospital treatment hit new record highs.

It’s going to take a long time for lists to start to decline as the government wrestles with the consequences of Covid-19. As a result, businesses like Spire (which saw revenues rise 20% in 2021) can expect demand for their services to continue growing.

A sudden influx of cash into the NHS could hit private healthcare providers if services improve. But as things stand, I think the outlook for Spire and its peers remains pretty bright.

Agronomics

The rate at which the lab-grown meat market is growing demands serious attention. According to Allied Market Research, the industry will be worth around $2.8bn by 2030. That’s a whopping lift from the $1.6m that it’s currently estimated to be worth. As a consequence I’m considering adding cultured meat specialist Agronomics (LSE: ANIC) to my shares portfolio. 

Agronomics is an investment company that provides the seed money for small companies to develop lab-grown products. Competition in the industry is likely to be cutthroat as people cut animals from their diets on ethical and environmental grounds and the market grows rapidly. But Agronomics has invested in more than a dozen companies to bolster its chances of success.

Some of the companies Agronomics has in its portfolio include cultivated fish maker BlueNalu, lab-grown beef specialist Mosa Meat and egg protein manufacturer Onego Bio. As the public becomes more attuned to animal-free diets, I think profits at this penny stock could soar.

Foresight Sustainable Forestry Company

I already have exposure to the building materials industry through my investment in brickmaker Ibstock. And I’m thinking of bulking up my position in this area by snapping up penny stock Foresight Sustainable Forestry Company (LSE: FSF).

Not only is this UK share also set to benefit from rising homebuilding rates over the next decade. It’s also set to exploit the growing use of timber frames in house construction. Rising concerns over sustainability are boosting demand for wood products over alternatives. Using timber also has other practical benefits for developers like reducing build times and cutting costs.

Foresight Sustainable Forestry Company owns 27 sites in total across Scotland, Wales, and England as of today. I think it will have an important part to play in the government’s quest to hit both its housebuilding and its net zero targets. I’d buy the business even though demand for its products could sink during future economic downturns.

Kropz

You might not have heard of Kropz (LSE: KRPZ) before. However, as a miner and processor of rock phosphate it will likely have a vital role to play in feeding a growing global population. The material it produces in Africa play a vital role in fertiliser manufacturing.

Kropz’s flagship project of Elandsfontein in South Africa is the country’s second-biggest phosphate deposit. Mining here started in October and first ore was delivered to the site in December. A steady ramping-up of operations is now set for the coming months. Kropz has also carried out feasibility studies at its Hinda project in the Republic of Congo, an asset the business has described as “one of the world’s largest undeveloped sedimentary-hosted phosphate reserves”.

Kropz is a mining stock whose world-class assets give it plenty of investment potential, then. I’d buy the business even though problems with getting Elandsfontein production firing nicely could derail earnings forecasts.

Likewise Group

The floor coverings and matting industry in the UK is highly fragmented and operators like Likewise Group (LSE: LIKE) have a lot of rowing to do to keep up. It is in particular danger from larger operators that enjoy significant economies of scale.

However, Likewise has been building its position in the market rapidly thanks to a series of acquisitions. And the company has wasted no time in sating its appetite for growth following its IPO last summer and acquired Valley Wholesale Carpets at the turn of 2022.

I believe this penny stock could prove a lucrative stock to own as construction activity picks up following Covid-19. Likewise supplies flooring products for commercial, industrial, and residential spaces. And I’m particularly excited by the possibility of soaring sales to homebuilders as build rates of residential properties heat up.

Old Mutual

A number of shares in my portfolio give me access to fast-growing emerging markets. But I feel my exposure to Africa and its soaring populations could be lacking. The number of people living in Sub-Saharan Africa has been growing by around 2.7% a year in the past decade, for example. This is much higher than the growth rates in Asia and Latin America.

I’d aim to capitalise on this trend by investing in Old Mutual (LSE: OML). Wealth levels are also rising rapidly in Africa and as a consequence so is demand for financial services, an area in which product penetration remains extremely low. Old Mutual’s main market is South Africa but it also trades in other major continental economies like Nigeria, Kenya, and Ghana.

Now competition in these fast-growing markets is expanding rapidly. And this could take a huge bite out of Old Mutual’s profits. However, I think the company’s strong brand name and history (it’s been trading since 1845) could help limit the damage.

Atlantic Lithium

Buying mining shares usually involves a large degree of risk and in this respect Atlantic Lithium (LSE: ALL) is no exception. A host of disappointments during the exploration, development, and production stages can occur. These can hit profits hard and send a share’s price sinking. And in this case there’s a long way to go before Atlantic Lithium gets production firing at its Ewoyaa project in Ghana.

Still, it’s my opinion that the potential rewards of owning this penny stock makes it very exciting today. Lithium is a critical component in electric vehicles, so consumption of the metal is tipped to take off in the years ahead. Statista analysts, for example, think lithium demand will soar almost 280% between now and 2030.

Drilling work at Ewoyaa reveals massive mining potential and Atlantic Lithium recently hiked its resource estimates for the project to a huge 21.3m tonnes. I think the business could be a great way to capitalise on the green transport revolution.

Last time out, I analysed a few top-quality penny stocks I think could prove terrific investments for me. I think the following small- and micro-cap shares might also help me to make a mountain of cash.

Coats Group

The clothing needs of a rapidly growing global population create plenty of opportunity for Coats Group (LSE: COA). As a major manufacturer of trims, zips and threads, this penny stock plays a vital role in garment production. And it is taking steps to build its market share by improving its sustainability credentials. It’s a tactic that seems to be paying off too.

Revenues from Coats’ EcoVerde line of recycled sewing threats increased fivefold in the first six months of 2021. The company recently launched its EcoRegen range of biodegradable threads in the hope if replicating this success too.

At current prices, Coats trades on a forward price-to-earnings growth (PEG) ratio of 0.8. A reminder that any reading below 1 suggests a stock could be undervalued. I’d buy the business even though demand for its products could sink during economic downturns.

Agronomics Limited

The number of people either eliminating or reducing the meat in their diets is ballooning. Rising concerns over animal welfare and the environmental impact of livestock farming means that numbers are expected to keep rising sharply too.

But there are still plenty of people who like the taste and texture of meat-based products. This is where Agronomics Limited (LSE: ANIC) bridges the gap. This penny stock invests in companies at the cutting edge of the synthetic meat industry. These include lab-grown beef producer Mosa Meat, cultivated crustacean manufacturer Shiok Meats, and even animal-free pet food maker Bond Pet Foods.

Analysts at McKinsey & Company think the synthetic meat industry could be worth $20bn by 2030. That’s under its medium-growth forecasts which suggests a market value of $1bn by 2025. The market opportunity for Agronomics is clearly huge.

There are many specialised companies in the animal-free food category which Agronomics has to compete with. It also faces colossal challenges from major food manufacturers such as Tyson Foods who have the clout to make life very difficult. Still, I think the quality of the companies that Agronomics invests in could still make it an industry winner.

Science in Sport

The steady change in people’s diets, and in particular rising demand for protein products, is something that Science in Sport (LSE: SIS) also looks set to exploit to the max. This penny stock manufactures protein powders (and other sports supplements) under its ultra-popular brands PhD and Science in Sport.

The importance of living a healthy lifestyle has really gained traction in recent years. Sports participation has leapt and so has demand for Science in Sport’s products — sales at the company rocketed 25% in 2021.

Industry analysis suggests that the company’s market will keep growing at breakneck pace too. Analysts at Grand View Research think the global sports nutrition market will expand at a compound annual growth rate of 8.5% between 2022 and 2030.

I like Science in Sport because of the quality of its products. I also like the company’s strategy of building brand strength by building relationships with elite athletes and sports teams across the globe. The sports nutrition market is highly competitive, but I think this penny stock has the goods to make a splash.

DP Poland

Online food delivery is another industry set for explosive growth over the next decade. One UK share I’m considering buying to capitalise on this is DP Poland (LSE: DPP). I’m tipping takeaway market growth to be particularly explosive in this Eastern European emerging market as people’s incomes sharply rise.

This penny stock is the master franchisee of the Domino’s Pizza label in Poland. This is a big deal because the 62-year-old US chain has one of the strongest brands in the business. I believe it’s one of the reasons why DP Poland’s sales are soaring right now. Like-for-like sales in the final quarter of 2021 jumped 15.6% year-on-year. They were also up 11% from the corresponding 2019 period.

My main concern for DP Poland is the possibility of lasting cost pressures. Indeed, the business says that rising labour and food costs would cause it to miss profits forecasts for 2021 despite those soaring sales. Still, in my opinion, I think the potential rewards of owning this British stock offset the risks. Researcher Statista thinks the Polish online food delivery market will more than double in size between 2021 and 2025.

Van Elle Holdings

I think the stars are aligned for ground contractor Van Elle Holdings (LSE: VANL) to experience strong revenues growth this decade. As with Brickability (which I tipped as a top stock to own in the first part of this article), I think demand for its services will soar as housebuilding in the UK revs up. I also think sales at Van Elle will boom as infrastructure spending on these shores steadily increases.

Activity at the penny stock took a beating in 2020 due to Covid-19-related stoppages. The threat for more disruption remains too as the public health emergency drags on. But, in my view, the possible rewards of holding Van Elle in the years to come outweigh the dangers. The company is a market-leader in the field of infrastructure creation and it’s tipping conditions across its core sectors to remain strong moving into next year at least.

I’m also thinking of buying Van Elle because of its bright dividend outlook. City analysts are expecting dividends to return in this fiscal year (to April 2022) following recent cancellations. And they’re expecting them to rise sharply over the next few years too, thanks to Van Elle’s strong trading outlook and robust balance sheet.

This means the company’s 0.9% dividend yield for this year leaps to 3% and then to 4.5% in financial 2023 and 2024 respectively.

Jim Mellon’s (Master Investor) Agronomics is a seed funding investment company, invested in ‘lab-grown’ (cell based) animal and agricultural products: meat, fish, milk, eggs, leather, pet food, and more. Agronomics currently has 16 companies in its portfolio, including BlueNalu, which aims to be the global leader in cell-based fish and has products on the market in Asia. It has been tipped to go public in 2022. Another is Mosa Meat, a Dutch company that produces cell-based beef and has just included Leonardo De Caprio (who now sits on the board) as one of its top investors.

Other prominent investors in this industry include Jeff Bezos, Bill Gates, Richard Branson, and Alphabet, as well as actor Ashton Kutcher.

The prediction

Winston Churchill predicted “we shall escape the absurdity of growing a whole chicken in order to eat a breast or a wing, by growing these parts separately under a suitable medium”.

These groups of companies are working on this becoming true. The products are not synthesised or plant based, they are the real thing: real fish, real chicken, real beef, but rather than reared in a field, they are grown in a lab. No animals are hurt, no seas are fished. The benefits are clear. Though there are still many who would baulk at the idea of this product being dished up to them, it cannot be ignored that if we need technology to help us feed the planet then this is a clear contender.

Barclays estimates the global alternative meats market will be worth £120bn by 2029. Agronomics has invested nearly £200m into a market that currently has less than £2bn invested in total, securing a significant market share. It is very probable that Agronomics will be a multi-billion dollar business in the not too distant future, in my opinion. I believe that from its lowly 22p per share today, it’s very possible that £10 per share can be reached in several years from now.

Barriers

What currently stands in the way of whole-scale adoption are:

1. convincing the public that’s a viable alternative;
2. scaling up production to sufficient capacity to lower overall costs;
3. regulatory approval.

There will inevitably be kickback from large-scale farmers who are, of course, very protective over their industry. But times are changing, demand for animal proteins is increasing, so I think it’s only a matter of time before we see these products on our shelves. There have already been some very interesting collaborations between producers and top international suppliers. This is perhaps a bottom-drawer share, but one I will want to keep taking out and having a look at.

Powering up my portfolio

I think OPG Power Ventures (LSE: OPG) could be an attractive way to get exposure to emerging markets. This particular UK share builds and operates power generation assets in India. This puts it in one of the best seats to exploit the strong economic growth that’s being tipped there in the coming years. The IMF, for example, reckons India’s GDP will rocket 8.5% in 2022 alone, faster than any other economy on earth. 

What I also like about OPG is its desire to bulk up its position in the renewable market. It aims to have 300MW of solar energy projects up and running in India, up from 62MW at present. This could make it a popular stock to buy as the responsible investing theme takes off.

It’s worth remembering though that today the company generates the lion’s share of power from its coal-fired thermal plant in the state of Tamil Nadu. This leaves it at the mercy of a wave of unfavourable legislation as the fight against climate change takes off. Still, at current prices OPG trades on a forward price-to-earnings (P/E) ratio of just 8.2 times. I think this makes the power play attractively valued on a risk-to-reward basis.

A penny stock for the meat-free revolution

Agronomics (LSE: ANIC) is another dirt-cheap UK share on my radar today. This is because its focus on producing cutting-edge meat-free foods puts it in an industry poised for breakneck growth. According to researcher Facts and Factors, the worldwide market for cultured (or lab-grown) meat will be worth $248m by 2026. That compares with the $103m it was estimated at last year.

Now Argonomics doesn’t manufacture the foods that find their way onto the plate. Instead it has invested in well over a dozen businesses that make cultivated meats using specialist scientific techniques. Spreading its capital over a large selection of such companies helps to spread the risk. What’s more, Argonomics invests in producers whose processes are highly patented, removing the threat of them being copied by rival players.

Agronomics’ investment in what could become a colossal global industry — AT Kearney thinks cultured meat could command a 35% market share within two decades — means that the business commands a high valuation. Today it trades on a forward P/E ratio above 40 times. This leaves it in danger of a share price correction if profits disappoint, say if a competitor takes a bite out of its market share.

The progress Agronomics is making leads me to think it warrants a meaty premium (no pun intended). Like OPG Power Ventures, I’d happily buy this exciting penny stock and look to hold it for the long term.

A rising star in the modern agricultural industry

With the world pushing to lower carbon emissions to net-zero by 2050, plant-based meats have gained popularity in recent years. A positive move, considering livestock is actually one of the primary contributors to global greenhouse gas emissions.

The sector does have a few big names already on the public markets, such as Beyond Meat. However, the vast majority remain as private entities. This is hardly surprising given the relative infancy of the industry. Unfortunately, that limits the number of options for investors interested in this growing space. And that’s where Argonomics steps in.

The company is an investment house that uses its capital to secure equity positions with a wide range of private firms. Today its portfolio consists of 15 leading businesses. But these aren’t just limited to plant-based meat producers. Here are a few examples.

Galy is using biochemistry to grow cotton in a lab rather than in a field. Tropic Biosciences is creating genetically modified tropical crops to improve cultivation efficiencies as well as reduce environmental impact. And Formo is producing animal-free cheese.

Looking at the penny stock’s financials

Most penny stocks are priced that way for a good reason. These companies tend to have poor financial standing and struggle to get off the ground. So imagine my surprise to discover that Argonomics doesn’t appear to fall into that category.

As of the end of December 2020, the firm had around £2.5m of spare cash on its balance sheet with an additional £26.9m of investments. Given that Argonomics only has £1.7m of liabilities, £0.1m of which are due in the next 12 months, I think it’s fair to say that its financial position remains strong.

Having said that, this is far from a risk-free business. In its last fiscal year (June 2019 to June 2020), the group managed to record a small profit of £0.65m. This was driven entirely by the appreciation of its equity investments. The most recent interim report shows that these investments have continued to gain value, rising by another £0.48m. Unfortunately, profitability went out the window because the company suffered a £1.5m loss, due to currency exchange rates.

There are financial instruments available to mitigate foreign exchange risk. However, these are very complex and require a high level of skill to use correctly. Given its small size, I think it’s unlikely that Argonomics has the resources necessary to mitigate this risk. In other words, foreign exchange may continue to be a prominent threat over the short term.

The bottom line

I can’t deny this is a risky business, especially considering it’s floating at a lofty valuation of £230m. But as penny stocks go, Argonomics, in my opinion, has the potential to explode over the long term. That’s why I think it could be one of the best stocks to buy now. But it will definitely be a small position within my portfolio.

I don’t have a problem buying penny stocks for my own shares portfolio, however. This is because I buy UK shares with the aim of owning them for a long period of time, say 10 years or more. So the possibility that prices could be choppy at times doesn’t put me off. I’m confident that the stocks I’ve chosen to buy will demonstrate the quality to rise in price over the next decade.

Here are what I think could be two of the best UK penny stocks to buy right now.

Meat-free mammoth

Companies that help develop and manufacture so-called ‘clean’ and meat-free foods could prove to be great investments as people change their diets on health and welfare grounds in huge numbers. This is where Agronomics (LSE: ANIC) comes in, an investment firm chaired by Innocent Foods co-founder Richard Reed. This penny stock’s investments include fake beef manufacturer Mosa Meat, synthetic cheese maker Formo, and Bond Pet Foods which makes meat-free foods for companion animals.

The field of ‘next gen’ foods is attracting huge investment from specialised businesses (like those of Agronomics) as well as from multinational food manufacturers. Even global meats giant Tyson Foods is splashing the cash to exploit the vegan revolution. So Agronomics is operating in an extremely competitive environment which means that success is not guaranteed.

That said, the stock has stakes in a number of cutting-edge firms whose industry-leading technologies could have a huge part to play in our dietary changes over the next few decades. Nielsen says that plant-based food sales rocketed 264% year-on-year in the nine weeks to 2 May, illustrating the huge potential of companies like this.

Another top penny stock

I think getting a slice of the electric vehicle (EV) market is another good idea for UK share investors like me. And I believe that investing in Savannah Resources (LSE: SAV) is a good way to play this theme.

Why? Well this penny stock owns the Mina do Barroso lithium project in Portugal. And so it’s in the box seat to exploit exploding demand for EV vehicles. The European Commission has set a target of having 30m EVs on the road by the end of the decade. That compares with fewer than 2m at the end of 2020.

A word of warning, though. Setbacks in the development of Mino do Barroso could have serious ramifications for Savannah Resources’s profits outlook and cost models, and critically for small-cap UK shares like this, its balance sheet. Still, the company’s share price has dropped sharply in recent months due to fears over car production rates on supply chain issues. And I think this makes the penny stock an attractive dip buy for long-term investors like me.

First up is a £128m-cap housebuilder and regeneration specialist whose portfolio has a gross development value of £3.2bn.

Discount bargain

Inland Homes (LSE: INL) acquires brownfield land in south and south-east England. Its expertise is in the often-complex task of obtaining planning permission for such sites. Once secured, it builds open-market and affordable homes, or sells surplus consented land to other developers.

In its recent half-year results, the company reported an EPRA net asset value (NAV) of 97.8p a share. The share price (56p, as I write) stands at a discount of over 40%.

Changes in the residential housing market or planning regulations could represent downside risk or upside potential for INL. I think the discount share price offers me a degree of protection against the downside risk. And also — along with that £3.2bn development value of its portfolio — considerable upside potential.

Premium penny stocks to buy

By contrast to Inland Homes, the shares of my other two penny picks are trading at a premium to their NAVs. However, I can see good reasons why I should be willing to pay these prices.

Primary healthcare property investor and developer Assura (LSE: AGR) uses a variant of EPRA NAV called net realisable value (NRV). As last reported, its NRV stood at 59.6p a share. With its shares at 76.5p, again, as I write, the premium is 28%.

As an NHS partner of choice, Assura enjoys long leases and a reliable rent roll. I think the market is right to value these things highly. The company identifies adverse changes to government policy as the highest-impact risk it could face. This could certainly be damaging for my investment if it happened, but I’m prepared to accept the risk.

$7.3trn market disruptor

Chaired by Innocent Drinks co-founder Richard Reed, Agronomics (LSE: ANIC) is a venture capital investor in companies in the nascent ‘clean foods’ industry. Its portfolio includes businesses like global leader in cell-cultured seafood BlueNalu.

Based on the year end (31 December) balance sheet and a subsequent fundraising, I put NAV in the region of 11p a share. Meanwhile, the share price is more than double that at 23.75p, as I write. However, the current intrinsic value of the portfolio companies could be significantly higher than the mooted NAV, because of their continuing progress since 31 December.

There’s a risk the clean foods industry may not be as effective in disrupting the $7.3trn global meat, poultry and seafood market as proponents think. However, the potential’s exciting, I like Agronomics’ portfolio approach, and the premium share price doesn’t put me off.

My penny stocks to buy

One thing the three stocks share that I also like is they play well to the post-pandemic theme of ‘build back better’ and the desire for a cleaner, healthier and more sustainable world.

Inland’s benchmark-setting and award-winning “sustainable communities and homes,” Assura’s “outstanding spaces for health services in our communities,” and Agronomics’ “solutions to improve sustainability, as well as addressing human health, animal welfare and environmental damage,” could all help improve the world… and hopefully my wealth!