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.

These tiny, under-the-radar businesses trading at tiny prices are where some of the most extraordinary wealth-creation stories begin for investors willing to take the risk. And right now, three such under-the-radar stocks have caught the eye of a few expert analysts.

So could these be among the best stocks to buy right now?

Three distinct opportunities

First up is digital media and technology group Brave Bison (LSE:BBSN). The firm helps major global brands reach audiences through social-first content, performance marketing, and media buying strategies.

It’s a bit niche. But the digital advertising market’s expanding rapidly, and Brave Bison’s been quietly assembling a diversified revenue base through both organic growth as well as disciplined acquisitions. That’s the same formula many quality compounders have used to reach FTSE 100 status – a proven strategy.

Of course, success is by no means guaranteed. Brave Bison faces stiff competition, and with a substantial level of client concentration, losing just one major account could hit revenues hard.

Then there’s lithium development company Kodal Minerals (LSE:KOD), with its flagship Bougouni project in Mali.

The structural story here’s genuinely powerful. Electric vehicle adoption’s accelerating, new lithium deposits are notoriously hard to find, and demand’s expected to significantly outpace supply over the next decade. If Kodal can bring Bougouni into production, the rewards could prove exceptional.

But that’s a significant ‘if’. Developing a mine in West Africa is a long, money-hungry process, and the lithium price has shown it can move sharply in both directions.

Finally, Made Tech‘s (LSE:MTEC) a UK technology services business helping NHS trusts, local authorities, and central government departments drag their legacy IT infrastructure into the modern era.

Public sector digitalisation is one of the most durable spending commitments in the UK across all major political parties. And Made Tech’s built genuine expertise as a trusted delivery partner in this space.

However, the risk is that government procurement’s notoriously competitive and contract-dependent. Revenue visibility’s never quite as clean as investors would like, and a tough spending review could slow the pipeline quickly.

What’s the potential profit?

The consensus price forecasts from professional analysts are genuinely exciting. But it’s important to highlight that each penny share’s tracked by less than a handful of analysts. And that means a single change of opinion can dramatically shift the outlook.

In other words, these price targets should be taken with a healthy pinch of salt.

Having said that, there’s definitely a lot to like when looking at these penny shares. So while the growth potential’s far from guaranteed and there are ample risks that invite volatility, I’m definitely going to be taking a closer look.

The post 3 penny shares tipped to surge in 2026 appeared first on The Twelfth Magpie.

Yet the long-term returns can also be considerably higher than when buying FTSE 100 and FTSE 250 shares. Take the following three penny stocks, for instance: Brave Bison (LSE:BBSN), Panthera Resources (LSE:PAT), and Kodal Minerals (LSE:KOD).

Over the past five years, they’ve delivered an average return of 111%. An investor who put £20,000 equally in these companies five years ago would have £42,260 sitting in their Stocks and Shares ISA.

Can these shares continue outperforming? I think so, as I’ll now explain.

Video star

Brave Bison produces online video content that it then distributes. Over the last five years, its shares have gained an impressive 135% in value.

Thanks to widescale restructuring, it’s turned from a loss-making company into one with strong earnings growth. In 2025, revenues leapt 57% and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 44%, as its operations successfully straddle key growth areas of digital advertising and influencer marketing.

Brave Bison has successfully leveraged acquisitions to capture these opportunities. It works with major brands like Arsenal FC, Vodafone, and Google, and today has a larger and more diversified business model. This is especially important, as it helps the business to spread risk if cyclical sectors come under pressure and marketing budgets dip.

Feline good

During the past five years, Panthera Resources’ shares have risen a hefty 41%. This chiefly reflects gold’s multi-year price surge — the yellow metal was last at $4,700 an ounce, up from roughly $1,700 in May 2021.

Panthera doesn’t actually own any gold-producing assets. However, it owns a string of high-quality exploration projects in India and West Africa. This includes Kalaka in Mali, where the exploration target was recently hiked to 5m ounces from 3m previously.

What I would say is this early-stage miner is high risk. I expect gold prices to keep rising, but Panthera could still sink in value if it experiences operational setbacks. A $1.58bn damages claim against the Indian government for stopping work at its Bhukia mine could also go either way.

Another mining share to consider?

Over five years, Kodal Minerals’ share price has leapt 158%. The company’s evolved from an exploration play into a full-blown metals producer, reducing its risk profile — output has steadily ramped up since February 2025, and revenues have rolled in. The business operates the Bougouni lithium mine in Mali, which is expected to produce the white metal until 2038.

In my view, this makes Kodal one of the hottest penny shares in the mining sector. Lithium prices have been choppy in recent years, and volatility could return if the Iran war drags on. But the long-term lithium outlook is robust as electric vehicle (EV) sales lift off — analysts at Canaccord think the market could move into a prolonged deficit until 2035 as new demand outstrips supply growth.

If so, prices of the critical energy transition metal could explode, driving Kodal shares even higher.

The post £20,000 invested in these penny shares 5 years ago is now worth £42,260! appeared first on The Twelfth Magpie.

Still, for long-term investors, market choppiness can provide a great dip buying opportunity. When conditions improve, earnings at many penny stocks can surge, launching their share prices higher.

Here are three sub-£1 shares I think demand a serious look today.

Michelmersh Brick

It’s not a shock to see Michelmersh Brick (LSE:MBH) shares tumbling. The prospect of rising interest rates is severe as surging oil prices drive inflation. In this climate, demand for new houses could topple.

Yet I think Michelmersh’s 14% share price drop over the past month merits attention. The company now trades on a rock-bottom price-to-earnings (P/E) ratio of 8.4 times.

Make no mistake, the long-term outlook for newbuild demand remains as robust as ever. Industry consultancy Marrons believes 5.4m more homes will be needed in England alone by 2040 to keep up with the booming population. In this climate, brick demand could rocket. Michelmersh is well placed to capitalise on this upswing — it manufactures 125m bricks a year.

Panthera Resources

Gold miner Panthera Resources (LSE:PAT) has dropped 13% in value over the last month. It’s tracked precious metals prices lower as the US dollar has strengthened. A rising buck makes it less cost-effective to buy and hold USD-denominated assets.

I’m confident that gold prices will rebound, however, as the geopolitical landscape becomes more volatile. Adding in fears over global growth, rising inflation, and the long-term direction of the dollar, I’m expecting bullion to rebound strongly as it did earlier in 2026.

Investors have plenty of junior gold miners to choose from. I like Panthera because of the quality of its African mining projects. In January, the company said its Kalaka project in Mali has an exploration target of 3m to 5m ounces of gold. That was up from its earlier estimates of roughly 3m ounces.

Brave Bison

Brave Bison (LSE:BBSN) shares have plunged 8% over the last month. They’ve dropped not only due to broader risk aversion as the Middle East crisis rolls on. Like other tech stocks, the company’s slumped over fears artificial intelligence (AI) will hammer its growth prospects.

This penny share makes and distributes online video content. It’s easy, then, to see how it could be impacted if AI takes off as some predict. Time will tell how far AI disrupts Brave Bison’s operations, though the company sees it as an opportunity and is embracing AI tools itself to drive growth. So far trading remains strong, and revenues here leapt 57% in 2025.

Today the firm trades on a P/E-to-growth (PEG) ratio of 0.2. That’s below the value benchmark of one, and makes the company — like those other penny shares — worth serious consideration.

The post Forget short-term pain! Consider these penny shares for long-term gain appeared first on The Twelfth Magpie.

Owning penny shares comes with greater risk than, say, holding FTSE 100 and FTSE 250 stocks. But the huge returns on offer make them worth consideration from confident investors. Take the examples of Panthera Resources (LSE:PAT), Logistics Development Group, and Brave Bison Group.

These UK stocks have delivered an average annual return of 19% since November 2020. And I believe they could continue delivering spectacular profits for shareholders. Here’s why.

Gold star

Panthera Resources — which searches for and develops gold projects in India and West Africa — has been swept higher in 2025 by strong exploration results. At 23.2p per share, it’s delivered an average yearly return of 23% over five years.

Investing in early-stage miners like this can be especially risky. Costs can balloon, putting stress on what can be already-stretched balance sheets. They can also be subject to regulatory issues in various countries.

In fact, Panthera has this year launched a $1.58bn case against the Indian government for stalling development of its Bhukia gold project.

But as we’ve seen, the rewards can also be gigantic if drilling work reveals enormous potential payloads. Studies at Panthera’s Kalaka mine in Mali have revealed a 3m ounce exploration target in a very promising gold region.

This gold stock is a high-risk bet. But given its excellent operational progress and the robust long-term outlook for gold prices, I think it’s worth a close look.

Moving higher

Logistics Development Group has delivered an average annual return of 11.5% since November 2020. During that time it’s changed its name from Eddie Stobart, but has retained its focus on the logistics market.

The assets it invests in range from warehousing and transportation to e-commerce. Its largest holding today is Finsbury Food, though other notable investments include Alliance Pharma — which distributes drugs and medical products — delivery company APC, and digital commerce specialist SQLI.

LDG has exposure to both cyclical and non-cyclical sectors. It’s a mix that leaves it somewhat vulnerable to economic downturns.

Yet at current prices I think it’s a top value stock to consider. At 14p, it trades at a whopping discount to its net asset value (NAV) per share of 26.7p (as of June).

32.4% return

Brave Bison creates, distributes and monetises online video content. It’s delivered a stunning 32.4% average annual return over the last five years, and has been active on the acquisition front to keep outperforming.

The company has made a whopping five acquisitions in the year to date. This includes the potentially transformative purchase of MiniMBA, which provides marketing training and services to blue-chip companies like McDonalds and Google.

Following these acquisitions, Brave Bison’s revenues rose 19% between January and June. This prompted it to lift earnings forecasts for next year. I’m confident these moves to expand and improve its services will pay off handsomely long term.

The penny stock’s profits could well disappoint should the broader advertising industry turn lower. But on balance, I’m confident it can keep providing excellent returns over time. It trades at 23.6p per share.

The post 3 penny stocks to target a 19% annual return appeared first on The Twelfth Magpie.