Penny stocks sit at the sharp end of the risk/reward spectrum. They’re often small, fast‑moving businesses with limited track records, which makes it tough to look confidently 10 years ahead.

But a few names are already reasonably established and still trade at what I’d see as ‘early‑stage’ valuations. One example is Michelmersh Brick Holdings (LSE: MBH).

So what makes it an interesting long‑term candidate?

A good old solid bricky

Michelmersh manufactures clay bricks and prefabricated components for construction, selling under brands such as Blockleys and Freshfield Lane.

In its 2025 results, revenue came in at £68.9m, down slightly from £70.1m, while statutory profit before tax fell to £4.3m and basic earnings per share to 4.02p.

Despite the profit squeeze, the dividend was held at 4.6p per share and operating cash flow rose to £10.9m. That’s rare for a penny stock.

The share price has struggled to recover since the 2008 financial crisis but now could be its time to shine.

The housing push

With Labour targeting 1.5m new homes, housing policy has moved centre stage again. The manifesto talks about mandatory housing targets and the “biggest increase in social and affordable housebuilding in a generation”. That should support demand for materials if those ambitions translate into actual projects.

Using a discounted cash flow (DCF) model, analysts estimate the stock is trading at 39.3% below fair value. Even one of the lowest 12-month targets I found (88p) is still 11.4% higher than today’s price.

The stock’s 2021 high is double today’s price. If it regains that level and continues for another five years, it could realistically triple today’s price.

But construction activity remains weak and Michelmersh’s margins are already under pressure. Net cash has swung to net debt, and management has flagged uncertainty around the timing of customer orders. If Labour’s housing plans don’t materialise, returns could lag expectations and stall the company’s recovery.

Another strong option?

Brave Bison Group (LSE: BBSN) isn’t technically a penny stock any more, as its market cap now sits a little above £100m. Even so, I see it as a small‑cap play with long-term potential.

The company is a “next‑generation marketing and technology partner”, running social‑media campaigns, influencer marketing, e‑commerce services, and its own media network across platforms like YouTube and TikTok.

For 2025, Brave Bison guided net revenue of at least £33.5m, up 57% from £21.3m in 2024, with adjusted EBITDA of at least £6.5m and adjusted profit before tax of at least £5.5m.

That growth is being driven by acquisitions and new client wins, including major names such as Primark and Royal Mail.

But with lots of recent acquisitions, execution mis‑steps or a downturn in digital ad spend could easily hit margins.

Final thoughts

For me, penny‑style stocks are classic high‑risk/high‑reward tools in a diversified portfolio. Many of today’s giants once traded for pennies, but plenty of penny names quietly disappear too.

Businesses like Michelmersh Brick and Brave Bison offer real‑world demand drivers with credible growth plans. Still, the extra uncertainty means they should only be considered as small positions alongside more defensive core holdings.

The real question is whether that mix of risk and potential suits your own long‑term plan. Investing is all about each individual’s unique goals, timeline, and risk tolerance.

Should you invest £5,000 in Michelmersh Brick Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Michelmersh Brick Plc made the list?

Mark Hartley does not hold any positions in the companies mentioned.

The post Could these high-risk/high-reward penny stocks triple their value in the next decade? appeared first on The Twelfth Magpie.

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• £500 buys 643 shares in this penny stock, expected to grow earnings 75% this year!

Investors have been dazzled by Rolls-Royce (LSE: RR) shares ever since they took off after the pandemic. That’s hardly surprising, with the stock up an astonishing 1,220% in five years. That would have turned a £10,000 investment into a staggering £132,000.

That’s wonderful for investors who got in early but a problem for latecomers. Have they left it too late?

The answer is brutal and obvious. Yes. Rolls-Royce is now worth £110bn, and simply can’t keep growing at the same breakneck pace. Attention has drifted away, while US tech stocks have swung back into favour.

Is SpaceX just more exciting?

Much of that was driven by another potential high-growth opportunity, Elon Musk’s Space Exploration Technologies Corporation, or SpaceX (NASDAQ: SPCX). It’s dominated headlines either side of its record-breaking IPO on 12 June.

The share price was set at $135 but quickly rocketed past $200. As many writers on The Twelfth Magpie warned, the shares probably overshot on all the hype. And so it proved. The SpaceX share price fell 13% last week, although it’s still above its launch price at around $153.

Will it fall further? Maybe not. A wall of money is still waiting to go into SpaceX from passive exchange traded funds.

Personally, I think investors should approach with caution today. SpaceX is pouring money into its artificial intelligence arm xAI and posted a $4bn loss in the first quarter of 2206. Is AI a bubble or a generational opportunity? Right now, we just don’t know.

Rolls-Royce was riding high earlier this year when its price-to-earnings (P/E) ratio hit a dizzying 65. I was urging caution then too.

The shares slumped almost 20% in March, as the Iran war threatened international travel, especially in the Middle East. That was bad news because aircraft engines still generate around half of group revenues. Its Defence arm should have benefited, but that sector has also cooled after a strong run.

While SpaceX has streaked across the investment firmament, the Rolls-Royce share price has clicked back into gear. It’s up 22% in the last three months. The P/E has retreated to 46, but that’s still expensive. This is a company that has repeatedly set ambitious targets under CEO Tufan Erginbilgic, and usually matched or smashed them. It’s on course to post profits of up to £4.2bn this year.

So what do the experts say?

Consensus analyst forecasts put Rolls-Royce on a one-year share price target of 1,438p. If correct, that’s modest growth of 2.5% from today’s 1,406p. However, 16 out of 20 analysts still label it a Strong Buy, with not a single Sell recommendation.

By contrast, SpaceX forecasts look far more exciting, with a target price of 242.5p. If correct, that’s growth of 58% from today’s 153p. Five out of 11 brokers name it a Strong Buy. Two say Sell.

Forecasts aren’t guaranteed. Some SpaceX predictions may reflect the excitement around the IPO, while Rolls-Royce targets may need updating after its latest rise.

My view? Both are stunning companies but investors considering them should approach with caution. There’s just a little too much hype and hope baked in

Should you invest £5,000 in Rolls-Royce Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list?

Harvey Jones owns shares in Rolls-Royce Holdings and the Scottish Mortgage Investment Trust.

The post The SpaceX frenzy is over – is it time to look at Rolls-Royce shares again? appeared first on The Twelfth Magpie.

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• Here’s what’s already happened to £5,000 invested in Rolls-Royce shares in January
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• As SpaceX stock plunges below its opening price, is it time to dump Scottish Mortgage shares?
• Why I’d rather consider buying Lloyds shares over SpaceX

Working towards passive income in the stock market takes time, and I don’t think anyone should start by chasing the highest yield. For me, the better thing to focus on is whether a company can keep paying and growing dividends for decades.

That’s why I like businesses that have been rewarding shareholders since my father was young, not just stocks that look tempting today. If I’m thinking 20-30 years ahead, I want durability, not drama.

So which UK dividend stocks look strongest as we move into the second half of 2026?

10 income stocks that complement

For me, the best dividend stocks have three things in common: they throw off enough cash to cover payouts, they have long records of paying shareholders, and they carry debt levels that don’t threaten the dividend.

I also like businesses with pricing power, because that helps them protect margins when inflation or weak demand hits. That’s why I’d rather own a steady 4%-yielder like Diageo (LSE: DGE) with a strong record, than chase an 8% yield that could disappear next year.

My top pick today

Diageo looks especially interesting for both income and value investors this year. The alcoholic beverages producer owns and markets several ‘billion-dollar’ globally recognised brands worldwide.

In recent results, management said the group’s “broad portfolio of iconic brands” with sales in “nearly 180 countries”. That gives it the scale and reach many income investors want. Despite a 50% price decline in the past five years, profitability remains solid, with a return on equity (ROE) of 21.39%.

It has a moderate 4.09% dividend yield with a high payout ratio around 80%, but the key attraction is its 47-year payment track record. That shows strong dedication to rewarding shareholders.

Still, it’s faced notable challenges lately and its price fall has reflected them. The latest results showed pressure on sales in North America and China, and it may have to reduce dividends to strengthen the balance sheet (net debt is $21.7bn). 

So it may not be a perfect income stock, but if the price recovers, total returns from both dividends and capital gains could be significant.

The bottom line

Diversification goes beyond just including stocks from different sectors. Even within a pure income portfolio, it’s important to include a variety of dividend stocks with complementary characteristics.

Each of the dividend stocks I covered here could all add value to an income portfolio in various ways. A portfolio filled only with high yielders can look attractive until one or two companies cut payouts, so it often makes sense to consider including stronger, more established businesses like Diageo. 

That kind of balance is usually what helps income remain steady through rough market cycles.

Should you invest £5,000 in Diageo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list?

Mark Hartley owns shares in Diageo, Unilever, RELX, National Grid and HSBC.

The post Which British dividend shares could supercharge a passive income portfolio in 2026? appeared first on The Twelfth Magpie.

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What’s better than a high-yielding income stock? One that also happens to be dirt cheap. FTSE 100 housebuilder Persimmon‘s (LS: PSN) both. So is it worth considering today?

If you know anything about housebuilding sector, you’ll know it’s had a terrible decade. The seeds of negativity were set after the financial crisis, when interest rates were slashed almost to zero and held there for years. That drove house prices to unaffordable levels, squeezing many first-time buyers out of the market.

Housebuilders were then on the frontline of a string of shocks, starting with Brexit in 2016. The post-pandemic inflationary crisis, which sent mortgage rates to the skies, and the scrapping of the Help to Buy scheme in 2023 further squeezed young buyers.

Why has this share done so badly?

As if that wasn’t enough, hikes to Employer’s National Insurance and the Minimum Wage drove up labour costs, and the post-Grenfell cladding forced builders to shell out hundreds of millions in fire safety measures.

There was a brief respite as the Covid ‘race for space’ and stamp duty cuts briefly fired up house prices. The Persimmon share price peaked at 3,160p in May 2021. Today, it’s around 1,134p. That’s a peak-to-trough drop of almost 65%. It may also be a buying opportunity.

Plenty of investors will baulk at buying such a troubled stock. They’re wise to be cautious. While it’s great to buy cheap shares, the recovery can take a lot longer than you might like. Persimmon, like the rest of the housebuilding sector, has been swimming against the tide for years.

I topped up my stake in FTSE 250 housebuilder Taylor Wimpey at the start of this year, because I expected the property market to go gangbusters as interest and mortgage rates continued to fall. The Iran war wrecked that. But there are signs that some kind of Middle East peace deal may hold, and oil supplies are getting through. The International Energy Agency has even talked of a glut in a year or two. Inflation could finally fall below 2% next year. A word of warning: I thought the same in January. Didn’t happen.

Is Persimmon still making money?

But I still think there’s an opportunity here for investors willing to accept some volatility. Despite its share price struggles, Persimmon remains a profitable company. Last year, pre-tax profits actually rose 13% to almost £446m, beating expectations of £440m.

That followed a couple of torrid years though:

• 2025 – £445.6m
• 2024 – £395.1m
• 2023 – £351.8m
• 2022 – £703.7m
• 2021 – £973.0m

Building houses in the UK isn’t easy, given planning restrictions, and despite government promises doesn’t look like getting any easier. The economy’s struggling, the cost-of-living crisis is far from over, and buyers are strapped for cash.

But with a forward price-to-earnings ratio of 11.1, and forecast yield of 5.51% for 2026, Persimmon’s starting to look exciting. I think it’s worth considering, for long-sighted investors who are up for the challenge.

Should you invest £5,000 in Persimmon Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Persimmon Plc made the list?

Harvey Jones owns shares in Taylor Wimpey.

The post This 5.5%-yielding income stock’s at a 13-year low and cheap to-boot! Time to consider buying? appeared first on The Twelfth Magpie.

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Aston Martin (LSE:AML) shares have taken a bigger beating than James Bond in a Soviet basement. Over five years, they’ve crashed by a shocking 98%!

Can this FTSE 250 stock make a recovery like the famous spy always does? Or is a Hollywood ending now a pipedream? Here are my thoughts.

Here’s what the experts are saying

According to my data provider, there are 10 analysts following the stock. Of these, none rate it a Buy, while the overwhelming majority say Hold.

As for the average 12-month price target, however, it’s 46p. That’s 21.1% above where Aston Martin currently trades at.

Based on this then, a £5,000 investment made today could turn into just over £6,000 by June 2027 (ignoring trading commissions and trading spreads). A nice outcome, if achieved.

Naturally, it goes without saying that this is far from nailed on. There’s a reason the share price has nosedived 98%.

Why has Aston Martin crashed?

Unfortunately, Aston Martin’s time on the stock market has been marked by a recurring cycle of setting ambitious medium-term financial targets and subsequently not achieving them. 

In 2020, the carmaker announced it was targeting around 10,000 vehicle sales, £2bn revenue, and £500m in adjusted EBITDA by 2024/25.

Then in 2023, the firm set a target for approximately £2.5bn in revenue and £800m in adjusted EBITDA, with a 30% margin, by 2027/28.

At the time, CEO Amedeo Felisa said: “We are on track to substantially achieve our 2024/25 financial targets in 2024 and, with continued strong momentum, are likely to exceed them in 2025.”

But last year, the company delivered 5,448 units (not 10,000), £1.26bn in revenue and adjusted EBITDA of £108m (not £2bn and £500m). To call that disappointing would be an understatement.

Looking ahead, there’s now a chance the original 2024/25 target won’t even be achieved by 2027/28.

Where are we now?

This is why I’m cautious about saying Aston Martin has turned a corner, despite encouraging signs in Q1. And there were some for sure, with 102 Valhalla deliveries helping push the gross margin into the mid-30s, from 27.9% the year before.

The pre-tax loss improved from £79.6m to £65.5m. And with the firm on track to deliver 500 Valhalla supercars for the full year, CEO Adrian Hallmark — the third chief executive inside five years! — is confident of “material financial improvement” in 2026.

Now, I’m a big fan of the supercar Valhalla, which has attracted rave reviews. But with production capped at 999 units, and more than 500 expected in the hands of buyers by the end of 2026, is the ‘sugar hit’ to revenue and margins sustainable?

What if the next exclusive high-priced model is a flop? And what if ultra-rich buyers in the Middle East reign in spending on new playthings due to the dodgy geopolitical backdrop?

Then there’s Aston Martin’s balance sheet, weighed down by £1.46bn in net debt. This obviously adds significant uncertainty and risk moving forward.

If the company’s Q1 momentum extended into Q2 (results due late July), the stock could get a quick shot in the arm. But the James Bond carmaker is far too risky for me, and I fear there will be no Hollywood ending here.

Should you invest £5,000 in Aston Martin Lagonda Global Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aston Martin Lagonda Global Plc made the list?

Ben McPoland has no position in any of the companies mentioned.

The post By June 2027, Aston Martin shares could turn £5,000 into… appeared first on The Twelfth Magpie.

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Warren Buffett is a once-in-a-generation investor. But there’s another company that I’ve been looking at that has a lot in common with his investment vehicle Berkshire Hathaway (NYSE:BRK.B).

The stock is Danaher (NYSE:DHR). It operates in very different industries, but a closer look reveals some deep similarities.

From mortgages to microscopes

Berkshire Hathaway began life as a struggling New England textile mill. It was bought by Buffett, who turned it into one of the greatest conglomerates of all time.

Danaher’s journey is a similar one. It began life as a Massachusetts real estate investment trust (REIT), before being bought by Mitch and Steve Rales in 1984.

Since then, the company’s been on an acquisition journey. It started with manufacturing, then shifted into instruments and, most recently, life sciences and diagnostics.

The crossover however, goes beyond origin stories. In 1985, the Rales brothers made a bid for Scott Fetzer Company – and lost out… to Berkshire Hathaway.

Disciples of the same religion

Nowadays, both companies are serial acquirers with decentralised business models. Neither can be accused of wasting money on office sofas or unnecessary support staff.

There are however, some meaningful differences. Beyond the industries they operate in, they have contrasting acquisition styles.

Buffett’s approach was to buy businesses and leave them alone. Danaher implements its own principles – the Danaher Business System – and looks to improve its subsidiaries.

Interestingly, I think this might be the direction Berkshire’s heading in. Chief exec Greg Abel’s known for being much more involved than Buffett, so change might be on the way.

Acquisitions

Acquisitions are a key part of Danaher’s growth story. But they inevitably bring risks, whether that’s overpaying or challenges with integration.

Last year, the firm recorded its largest asset impairment in over 20 years. This was the result of a $9.6bn deal to buy Aldevron during the 2021 mRNA euphoria.

Including Buffett, even the best investors have deals that don’t work. What separates the great from the good is what they do next. Danaher’s been disciplined in divesting businesses that don’t perform as anticipated. So in some ways, the write-down is a sign of a strong culture, not just a mistake.

What do the numbers say?

Danaher shares are unusually cheap right now. At a price-to-book (P/B) ratio of 2.5, the stock’s close to a 10-year low. 

Source: Fiscal.ai

A big reason for that is the decline in demand for bioprocessing equipment after the end of the pandemic. But signs of a recovery are on the way.

As they say in sports, form is temporary but class is permanent. And Danaher’s long-term strengths – its culture and strategy – seem firmly intact to me.

This is why I’ve had the company on my watchlist for some time. But is it finally time for me to make a move and buy the stock?

The next Berkshire Hathaway?

Berkshire Hathaway’s the largest single investment I own. And I don’t expect that to change any time soon.  I am however, always mindful of portfolio diversification. So the opportunity to add another company that shares a lot of Berkshire’s key strengths is an attractive one.

My price target for Danaher is around $163 – a 2.2 price-to-book multiple, in line with the 10-year lows. At that price, I’ll be looking to buy in July.

Should you invest £5,000 in Berkshire Hathaway right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Berkshire Hathaway made the list?

Stephen Wright owns shares in Berkshire Hathaway.

The post The company that almost beat Warren Buffett to one of his best deals appeared first on The Twelfth Magpie.

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Regional REIT (LSE: RGL) is the sort of stock that makes passive income investors sit up. The dividend yield is 8.74%, which is huge by today’s standards.

The promise of cash returns is right there in the numbers. Whether it’s a promise the company can keep is another matter.

What it owns

Regional REIT owns 112 properties across the UK. These are predominantly offices outside the M25 where parking is abundant and appetite for the London commute is not.

Source: Company Website

It consists of 1,146m units, with 659 occupants. That’s an encouraging sign – it means the firm doesn’t rely extensively on any one tenant.

That, however, is where the positive signs end. Occupancy rates were 75.9% at the end of the company’s financial year.

Real estate investment trusts (REITs) don’t pay tax on their income. But that only applies when properties are occupied – vacant buildings don’t generate rent.

There’s another risk to pay attention to as well. A net loan-to-value ratio of 40.4% means Regional REIT carries meaningful debt.

With high dividend yields, it’s always worth asking what the risks are. But it’s also important to focus on what the company can do – or is doing – to mitigate them.

Strategy

There are two issues with Regional REIT – empty properties and elevated debt levels. In both cases, however, the firm has a strategy for killing two birds with one stone.

It involves selling the vacant buildings and using the proceeds to reduce debt. Last year, the company completed £51.6m of disposals at 1.3% above book value. 

Interestingly, the stock is currently 50% discount to its book value. So it’s selling its weakest properties at higher multiples than the market values its average ones at.

New lettings secured on the remaining properties were 3.9% ahead of expectations. That’s a sign the occupied bit of the portfolio is actually pretty good.

The remaining debt is fully fixed and hedged at an average cost of just 3.4%. That isn’t particularly expensive and near-term maturity risk has been largely dealt with.

So management has a plan to solve one problem with another and it appears to be working. But there’s still a big dividend yield on offer for investors willing to buy the stock.

Dividend yield

With the stock at 92p, Regional REIT’s 2026 dividend target of 8p implies a yield of roughly 8.74%.

That reflects some acknowledgement of genuine risk. And the dividend has been cut recently, which should remind investors of this. 

Mechanically, however, £13,729 buys approximately 15,000 shares — enough for £100 per month in dividends, if the target holds. And there aren’t too many opportunities like this. 

That is, of course, assuming those shares are held in a Stocks and Shares ISA. If they aren’t, dividend tax makes things a bit more complicated.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Of course, the word ‘if’ can’t be eliminated entirely. And Regional REIT is one of the less straightforward businesses in the industry.

There are no free lunches at yields approaching 9%. But the balance sheet has improved, the disposal programme is working, and the 2025 dividend was fully covered. 

Given all this, I think the stock is worth considering as part of a broader diversified income portfolio.

Should you invest £5,000 in Regional REIT right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Regional REIT made the list?

Stephen Wright does not own shares in any of the companies mentioned.

The post How to target £100 in monthly passive income with £13,729 in cash appeared first on The Twelfth Magpie.

More reading

• Could these high-risk/high-reward penny stocks triple their value in the next decade?
• The SpaceX frenzy is over – is it time to look at Rolls-Royce shares again?
• Which British dividend shares could supercharge a passive income portfolio in 2026?
• This 5.5%-yielding income stock’s at a 13-year low and cheap to-boot! Time to consider buying?
• By June 2027, Aston Martin shares could turn £5,000 into…

Lloyds (LSE:LLOY) stock has kicked into growth mode again in the past couple of weeks, rising around 13% to 109p. This means the FTSE 100 lender has surged almost 180% inside three years, with dividends on top.

Looking ahead to the next five years, though, I think one UK fintech stock will outperform Lloyds shares…

What’s wrong with Lloyds?

To be clear, I’m not overly bearish on Lloyds stock. Fuelled by the higher interest rate environment, the FTSE 100 lender has been reporting higher profits, and City analysts see this continuing over the next couple of years.

For 2026 and 2027, they currently expect earnings per share (EPS) of 10.2p and 12.2p respectively, up from 7p in 2025. And the lender has been reducing its share count in recent years through buybacks, helping boost EPS.

On top of this, we have a robust dividend forecast, with the forward-looking yield rising to 4.6% in 2027. So I can certainly see the appeal for income investors.

But one issue I have is that Lloyds is domestically focused, and the UK economy continues to toil under high inflation and weak consumer spending. I don’t think a recession can be ruled out over the next year or so.

Moreover, political instability has returned, with Andy Burnham expected to be the fifth Prime Minister inside four years. All this change and uncertainty isn’t ideal for business confidence.

Given this, I think quality companies with growing global operations could outperform Lloyds over the next five years.

A wiser pick?

The stock I have in mind is Wise (LSE:WISE), the international money transfer specialist. The company’s mission is to eliminate the high mark-up fees traditionally incurred when moving money across borders.

On Thursday (25 June), we got Wise’s FY26 results for the 12 months to 31 March. Thankfully (I’m a shareholder), the report was solid.

During the period, Wise helped 19m people and businesses move $243bn globally, up from $185.2bn the year before. Net revenue jumped 19% to $2.5bn.

The firm’s making significant progress on making transfers quicker and cheaper, with 75% of Q4 payments completed inside 20 seconds and the average cross-border take rate falling to 0.52% from 0.58%.

Lowering the take rate would worry me if Wise wasn’t growing customers (pre-tax profit actually fell 8% to $660.4m). But active customers rose 21% and customer holdings surged 40% to $39bn. Card spend grew 37% to $44bn.

Therefore, Wise is becoming much more than a cross-border money transfer company. It’s successfully scaling into a multi-product global payments network, with almost 50% of net revenue coming from non-cross-border sources last year.

What could go wrong?

This doesn’t mean there won’t be risks over the next five years, particularly rising competition. Also, there’s an ongoing investigation in Europe regarding suspected money laundering, and we have no idea what will be found (if anything).

Looking at the latest results though, I’m still bullish moving forward. Wise has reiterated guidance for medium-term revenue growth of 15%-20%, with a 15%-20% pre-tax margin.

The image above shows the scale of the long-term opportunity, with Wise so far capturing a small fraction of its overall market opportunity in the business and large enterprise segments.

Given this oceanic growth potential, I think the stock’s worth considering after falling 19% in a month.

Should you invest £5,000 in Wise Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Wise Plc made the list?

Ben McPoland owns shares in Wise.

The post Prediction: this UK growth stock will outperform Lloyds shares over the next 5 years appeared first on The Twelfth Magpie.

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• Why I’d rather consider buying Lloyds shares over SpaceX

Those who bought Space Exploration Technologies (NASDAQ:SPCX) stock at IPO are currently (28 June) sitting on a tidy profit.

But life for SpaceX (as it’s commonly known) as a now-listed business is very different to that of a privately-owned company. There’s added scrutiny, And pre-IPO hype to live up to.

Indeed, if the space, communications, and AI group is to meet its lofty expectations, it’s going to have to show that things are going in the right direction.

That’s why 11 August could be significant. Why? It’s when SpaceX is due to unveil its first set of results as a quoted company. But there’s another reason why it could be a key date. Let’s take a closer look.

Pick a number

Who knows where the group’s stock price will be by August? Analysts have 12-month targets ranging from $62 to $401.

However, on the 11th of that month, up to 20% of the Early Release Eligible Shares (owned by employees and early-stage investors) can be sold. Moreover, if the share price is $175.50 — and has been at this level for at least five of the 10 previous trading days — another 10% can be offloaded.

These are separate from the normal lock-up restrictions that permit pre-IPO shareholders from disposing of significant quantities of their stock.

We do not want humans to have the same fate as dinosaurs.

Company prospectus

What does this mean?

These arrangements could lead to a sharp drop in the group’s share price. Some of the estimated 4,400 employees, who have become paper millionaires as a result of the listing, and other early investors, may be tempted to cash in.

But then again, it could be a non-event. In my opinion, it doesn’t really matter either way.

I reckon SpaceX is the sort of stock that should be tucked away in an investor’s portfolio and forgotten about. I think it’s likely to be one of the most volatile stocks around.

Just look at a couple of price movements from the first few days of trading:

• 15 June: + 19.6%
• 22 June: -16.4%

The company’s huge valuation means relatively small movements in its numbers are likely to have a big impact. With very little to go on, analysts will be finding it difficult to come up with sensible forecasts.

What we do know is that, up until now, the group’s been loss-making. During Q1 2026, it reported an operating loss of $1.94bn. Only Starlink was profitable.

My view

I’ll be honest, the more I read about SpaceX, the more fanciful it seems. One million people living on Mars, supported by 10 rocket launches a day delivering cargo and essential supplies? Mmmm.

Much of its forecast growth is expected to come from its AI division, which is in its relative infancy. And if the group is to meet some of the more optimistic predictions, it’s going to need a huge amount of cash.

Despite these concerns, I own a small amount of the stock. Why?

Even if it achieves only a tiny fraction of what it wants, I suspect SpaceX – and Elon Musk — will retain the support of plenty of investors (fans?). Conscious of the risks, I reckon it’s a stock to consider for the very long term.

Should you invest £5,000 in Space Exploration Technologies Corp. - Class A right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Space Exploration Technologies Corp. - Class A made the list?

James Beard owns shares in Space Exploration Technologies Corp.

The post Why 11 August could be a key date for SpaceX stock appeared first on The Twelfth Magpie.

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• Could investing £10,000 in SpaceX stock make me a millionaire?
• Why the SpaceX share price may soon face a stern reality test

I think now might be the time to consider buying Netflix (NASDAQ: NFLX) shares. The stock’s fallen from a split-adjusted high of $133.91 to around $77. 

That’s a decline of around 43%. But by almost every operating metric, the underlying business is doing pretty well.

What’s been going wrong?

The sell-off has several ingredients. One is the firm’s Q2 earnings report – specifically, the forward guidance.

Netflix guided for $12.57bn in revenue, which was below the anticipated $12.63bn. And co-founder Reed Hastings announced his intention to stand down in June. 

Neither development’s trivial, but neither’s catastrophic. The revenue miss is small and Hastings is leaving to pursue philanthropy – not because the business is broken.

Analysts at Bank of America downgraded the stock to Hold earlier this month. Jefferies also cut its price target to $110 from $128, adding to the negative sentiment.  As a result, the stock’s been trading lower.

But it was expensive before, so has it reached bargain territory?

Valuation reset

Here’s what diligent investors should actually be paying attention to. Netflix’s trailing price-to-earnings (P/E) ratio’s around 23. The 10-year average is closer to 41.

Source: Fiscal.ai

In 2022 – when markets wrote the stock off as subscriber numbers faltered – the multiple only reached 15. It’s not quite at that level, but 23 is nearer 15 than 41.

The outlook for growth’s also pretty positive. Analysts at Morgan Stanley expect earnings and free cash flows to grow at around 20% a year. 

That puts the price/earnings-to-growth PEG ratio at close to 1, which isn’t particularly high for any business. And it’s definitely not high in the case of Netflix.

The company still has some unique strengths that identify it as a high-quality operation. That’s why I think the stock’s worth checking out at today’s prices.

Advertising

The big challenge for Netflix is competition. It isn’t just up against cable subscriptions these days – it has the likes of Amazon and Apple for company. These operations obviously have deep pockets and huge capacity to invest. And that’s a real danger for a firm that isn’t backed by a tech giant.

Importantly, Netflix’s advertising business is arriving faster than investors seem to think. It now reaches 250m monthly viewers and advertiser numbers are up 70% in a year. Management expects advertising revenue to reach $3bn in 2026. And this is expected to push free cash flows to $12.5bn.

It’s a tough industry. But Netflix is finding a way to support $30bn in share buybacks and I think that’s clearly a sign of long-term strength.

Worth considering

Netflix isn’t a washed-out stock. The possibility of more selling after the firm’s Q2 results next month is real, as is the governance transition.

At today’s price however, investors are paying a mature-media multiple for a business that’s still generating 16% revenue growth. That seems like a deal worth considering.

Should you invest £5,000 in Netflix right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Netflix made the list?

Stephen Wright owns shares in Amazon, Apple, and Netflix.

The post After a brutal 43% slide, is Netflix 1 of the best shares to buy right now? appeared first on The Twelfth Magpie.

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