Now earlier this week, I screened the market for penny stocks that look interesting right now (growth potential, an attractive valuation, and share price momentum) and I got a number of results.

However, one name jumped out and I ended up buying the stock for my Stocks and Shares ISA.

A top-performing penny stock

The stock was MTI Wireless Edge (LSE: MWE). It’s a small Israel-based company that specialises in antenna technology and also operates in the areas of water control and management and distribution and professional services.

Today, this company’s having a lot of success selling antennas to the defence industry (both to companies and governments). For example, in April, it signed over $9m worth of defence-related contracts (bear in mind that the company’s only worth about £60m).

This operational momentum’s rapidly pushing its share price up. Year to date, the stock’s up about 50% versus a gain of around 4% for the FTSE 100 index.

It’s still attractive-priced though. Right now, the share price is only 70p, which means that £1,000 buys around 1,429 shares (ignoring trading commissions).

An attractive set-up

At 70p, I believe this name’s worth a look if an investor’s seeking exposure to the penny stock universe. Because, to my mind, the risk/reward proposition’s attractive.

For a start, we have growth potential due to the company’s exposure to the defence industry (note that NATO countries are currently ramping up their spending budgets). In April, MTI’s CEO Moni Borovitz said: “We continue to see opportunities for securing further orders primarily for our range of defence related products but also from across the entire business.”

We also have profitability (which many penny stocks don’t), which reduces investment risk a bit. This year, analysts expect the company to generate a net profit of around $5m and earnings per share of $5.80 cents.

Additionally, we have an attractive valuation. Taking that earnings per share forecast above, we get a forward-looking price-to-earnings (P/E) ratio of just 16.

Adding weight to the investment case is an attractive dividend yield. Currently, we’re looking at a yield of around 4%, so there’s income potential here too.

Worth a closer look?

So overall, there’s a lot to like. To my mind, this company has all the right ingredients to be a good long-term investment. Of course, there are no guarantees it will be. If orders/deals suddenly dry up and revenue growth stalls, the share price could drop.

I see a lot of potential though. I think investors should consider doing some further research on it.

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It’s rewarded investors with a 48% share price rise since the beginning of the year. The gain pushed the company’s market cap up to a £58.6m by market close on Friday (17 April), with the share price at 68p.

To be cautious for a moment, we’re still looking at a 13% fall over the past five years. But the share price has been creeping up since early 2024. So are we looking at a small-cap bargain for Stocks and Shares ISA investors to consider now?

Defence boost

MTI develops wireless antenna systems, including airborne, naval, and tactical military antennas. So it’s clearly riding on the back of a defence premium. Current global military crises have given stocks like BAE Systems a boost, up over 30% so far this year. And they’re helping keep the Rolls-Royce Holdings share price climb going too.

Full-year results for 2025, released in March, were impressive. The company saw revenue grow 13%, to $51.5m. And that led to a bottom-line earnings per share increase of 17%, to 5.86 cents. And while the defence business was the biggest driver of that, MTI reported double-digit revenue growth across all divisions.

One thing can be a killer of penny stock companies, and it’s cash weakness. FTSE 100 sector leaders have the financial clout to get through bad spells — as Rolls-Royce has so stunningly demonstrated. But tiny-cap companies can easily hit the wall in a crunch.

The cash

And that brings me to perhaps the thing I like most about MTI Wireless Edge — the balance sheet. The company was able to lift its final dividend by 3%, after ending the year with net cash of $9.4m. And we’re even looking at a share buyback programme here, which is now extended out to March 2027.

At results time, CEO Moni Borovitz of the Israel-based company said: “We are confident going into 2026 given the size of both our current backlog of orders and the pipeline of new opportunities that we are pursuing.“

Since those results, the company has announced more contract wins. As recently as 13 April, the CEO told us: “In the first two weeks of April, we have secured a series of significant defence-related orders with a combined value of approximately US$8m.”

To put that into perspective, those new orders are alone worth 13.7% of MTI’s total 2025 revenue.

An ISA buy?

There’s no way to guess what might happen when the current Middle East conflicts die down as well all hope they will soon. If defence forces come out of it with all the antenna systems they need for the foreseeable future, revenue in future might become a bit tighter?

And though the liquidity situation looks healthy, it might not take much of a shock to change that. Still, right now I think the signs look good. I really do think penny stock investors should consider MTI Wireless Edge.

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That’s what’s brought MTI Wireless Edge (LSE:MWE) onto my radar. In the last six months alone, the shares of this specialist technology group have climbed close to 63%, vastly outpacing the wider stock market. And yet if the firm continues to execute, this might be just the tip of the iceberg.

So should I be rushing to buy this emerging enterprise?

An under-the-radar opportunity

It’s no secret that defence stocks across the board are outperforming right now. With the war in Iran unresolved, companies such as BAE Systems, Rolls-Royce, and Lockheed Martin have seen their share prices rise considerably.

Yet MTI Wireless is quietly outperforming all of them in 2026 – and not by a small margin either.

The business focuses of communication and radio frequency solutions, developing specialist military and civilian antennas as well as some unique monitoring solutions for water irrigation systems and consultancy services within the Israeli market.

With defence-related demand rising across the board due to the war as well as wider rearmament of Europe, MTI’s been on a bit of a roll lately. New multi-million dollar contracts from new and existing customers are getting signed, while earnings are charging firmly ahead of expectations.

In 2025 alone, revenues climbed by 13% to $51.5m, with operating profits surging 29% to $5.81m as operating leverage started to work its magic as the business scaled.

In 2026, this momentum is accelerating. As management puts it:

“2026 has undoubtedly started well for the Company with an increased order backlog and pipeline of opportunities across all three divisions”.

Yet, with the penny stock still falling under most investors’ radar, the price-to-earnings ratio stands at just 14.2 – roughly half that of the defence industry average in 2026.

In other words, investors could be looking at a high-growth opportunity trading at a relatively cheap valuation. So what’s the catch?

Where’s the risk?

While MTI Wireless is on a promising trajectory, there’s one giant elephant in the room – the company’s headquarters, design, and primary manufacturing site are all located in Israel. A single successful drone strike against its facility could cripple operations.

The good news is that being located near the centre of Israel, MTI Wireless is comfortably within the country’s layered air defence systems. But the risk isn’t zero. And this geopolitical uncertainty could also be a contributing factor behind the penny stock’s discounted valuation. So what’s the verdict?

The bottom line

Just like countless other penny stocks, MTI Wireless is a risky investment. But unlike most penny shares, that risk seems to be driven primarily by external factors rather than weakness in its fundamentals.

While the geopolitical uncertainty can’t be ignored, the risk-to-reward ratio could look quite favourable inside a well-diversified portfolio. So for investors with a high risk tolerance for penny stocks, this might be a business worth investigating further.

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Year to date, it’s up over 40%, making the FTSE 100’s gain of around 6% look quite underwhelming. So what’s going on here? And is there an opportunity?

An under-the-radar defence company

MTI Wireless Edge is a small Israel-based company that designs and manufactures state-of-the-art antennas and has exposure to the defence industry. And right now, it has a lot of momentum from an operational perspective.

For example, just last week, the company told investors that it had recently won around $6m worth of defence contracts. That’s significant – we’re talking about a company with a market-cap of just £56m here.

Meanwhile, today (13 April) the company’s put out another announcement highlighting that it’s just won an additional defence contract. This is worth $2m and will involve supplying military antennas to a local defence company.

“In the first two weeks of April, we have secured a series of significant defence-related orders with a combined value of approximately US$8m,” said CEO Moni Borovitz. “This strong level of order intake is encouraging and reflects our internal forecasts of a step-up in demand for our range of defence related products,” he added.

Worth a look?

Is this stock worth considering as a growth investment? I think so – I see a nice combination of growth, value, income, and momentum here. The business seems to be on fire at present. That’s always a plus from an investment perspective.

Meanwhile, despite a 40%+ share price gain in 2026, the valuation’s still quite reasonable. With the consensus earnings forecast for FY2026 sitting at $5.80, the forward-looking price-to-earnings (P/E) ratio’s only about 15.

As for income, the dividend forecast for this year is 3.6p per share. That translates to a yield of about 4%, which is decent.

Of course, there are plenty of risks here. One is a slowdown in orders. Given the geopolitical backdrop, this company’s in the right place at the right time. But things could change and orders could dry up.

Another risk is in relation to trading liquidity. This is a very small company and liquidity can be thin with these types of stocks (meaning it may not be possible to sell shares at a good price). I should also point out that the share price is up almost 20% this month. After that kind of jump, we could see some profit taking.

Overall though, I see quite a bit of potential in this name. It’s higher up on the risk spectrum given that it’s a penny stock, but I think it’s worth a look.

But it’s not the only opportunity I see in the market today…

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But could it go further? Let’s explore.

Who is it?

MTI Wireless Edge (LSE:MWE) has the hallmarks of a quality stock. It’s an Israel-based specialist in military antennas, 5G backhaul, and water solutions — and a confluence of catalysts may be aligning in its favour.

The company just posted record full-year results for 2025. Revenue rose 13% to $51.5m with profit from operations up 29% and earnings per share climbing 18% to 5.83 cents.

All three divisions — antennas, distribution and consulting, and water solutions — delivered double-digit revenue growth, with the antenna division leading at 23%, driven by surging demand for military-grade hardware and 5G infrastructure.

It also appears well diversified and benefits from long-term contract lock-ins.

What’s more, the balance sheet’s clean. MTI sits on $9.55m in cash with no meaningful debt, giving it a net cash position. Return on capital is 17.1%, return on equity 17%, and the stock trades on a forward price-to-earnings of just 13.3 with a forecast dividend yield of 4.66%.

More wins

This week, the company announced multiple new defence contract wins worth around $6m. That’s more more than 10% of its entire 2025 revenue. The deal includes a $2.2m communications infrastructure contract for the Israeli Ministry of Defence (MoD) and $1.9m in military antenna orders from an international defence contractor.

All orders are scheduled for delivery across 2026 and 2027.

2 bullish analysts and positive signs

When it comes to penny stocks, there isn’t much institutional coverage. In other words, there aren’t many analysts covering the stock. However, the two that do cover MTI are very bullish. Collectively, their price target’s 62% above the current share price.

Moreover, consensus forecasts point to net profit of $5m in 2026 and $5.21m in 2027. Notably, the Beer family — substantial shareholders — bought 600,000 shares at 53.5p as recently as 26 March, a vote of confidence from insiders.

Then there’s the geopolitical backdrop. The Iran-US ceasefire agreement reached on 7 April could materially re-rate Israeli equities. Throughout the conflict, Israeli-listed and Israel-based stocks traded at a persistent-risk discount.

A sustained ceasefire — and the permanent reopening of the Strait of Hormuz — may unlock institutional capital that has been sitting on the sidelines.

The bottom line

That said, there are risks to bear in mind. MTI’s a tiny company and the free float (51%) is limited. What’s more, liquidity may be limited and the the bid-ask spread sits at 513 basis points.

And while the business is diversified across segments, the company’s reliance on Israeli MoD contracts introduces concentration risk.

However, for investors willing to accept that risk, it may be worth considering.

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However, occasionally I spot an opportunity that’s really tempting. And MTI Wireless Edge (LSE: MWE) is one of those opportunities.

Winning defence deals

MTI Wireless Edge is a small Israel-based company that designs and manufactures state-of-the-art antennas and related systems. It makes products for a broad range of markets but where it’s having a lot of success at the moment is on the military front.

We can see this in a trading update posted this morning (7 April). Here, it advised that it has recently won a bunch of new defence orders (all from existing customers) including:

• A $2.2m contract to supply communications infrastructure to the Israeli Ministry of Defence
• A $1.9m contract to supply military antennas to an international defence company
• A $0.5m contract for military antennas from a local defence company
• Additional orders totaling approximately $1.3m to supply components primarily to a defence company

Put all these together and we have $6m worth of contracts. Not bad for a company with a market cap of just over £50m.

The market is clearly impressed – the company’s share price is up about 8% as I write. That takes the stock’s year-to-date gain to around 33% – miles ahead of the returns from some bigger defence stocks such as Rolls-Royce Holdings (3%) and Rheinmetall (0%).

An investment opportunity?

Is this penny stock worth a look today? I think so – it appears to offer a winning combination of growth, value, momentum, and income.

We can see the growth in the deals above. These should boost the company’s top line.

“The volume of orders significantly enhances our order book for FY2026 and FY2027 and supports our ability to continue to grow our business.”
MTI Wireless Edge CEO Moni Borovitz

As for value, the forward-looking price-to-earnings (P/E) ratio is only about 14. That earnings multiple suggests to me that this stock is flying under the radar of a lot of investors.

Turning to momentum, the share price is in a strong upward trend. And ‘the trend is your friend’ as they say.

We also have income. For 2025, this company paid out 3.4 cents in dividends per share – that translates to a dividend yield of about 4.2% today.

Of course, we need to remember that this is a penny stock. And that means that there are plenty of risks. It’s also in a sector in which many investors wouldn’t want to invest.

On the operational front, risks include deals drying up and revenue growth stalling and higher supply chain costs eating into profits. Meanwhile, on the trading/investment front, a risk is a lack of liquidity (not being able to sell the shares at a good price).

Overall though, I like the risk/reward set-up at the current share price valuation and valuation. I believe this stock is worthy of further research.

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Here, I’m going to highlight a penny stock that’s flying right now, despite the fact that the broader market is moving lower. Could this name be worth considering for an ISA or SIPP?

A 58p penny stock in the defence space

The stock in focus today is MTI Wireless Edge (LSE: MWE). It’s a small Israel-based company that designs and manufactures state-of-the-art antennas.

This company makes antennas for a broad range of markets (its products include commercial, RFID antennas, 5G back-up, and military antennas). It also has operations in the areas of water control and management and consulting.

Where it’s having a lot of success at present, however, is on the military antenna front. Last year, sales here rose 50%.

Its share price is currently 58.4p. That means £1,000 buys 1,712 shares (ignoring commissions).

Strong financials

Looking at the set-up here, there’s a lot to like, in my view. For a start, the company has strong operational momentum.

Last year, group revenues increased 13% to $51.5m. Meanwhile, earnings per share (EPS) surged 29% to $5.81.

Driving this growth was high demand for antennas from the defence industry. Looking ahead, the company expects defence demand to remain strong.

“The dominant market driver in 2025 was defence spending and this is likely to be true in 2026 too. The defence market, which was already expanding, is now poised for even greater growth due to actions taken by the US government and the decision of European governments to significantly increase defence spending, and MTI is well-positioned to benefit.”
MTI Wireless Edge 2025 results

One thing worth highlighting here is that the company is profitable, has plenty of cash on its books ($9.4m at the end of the year), and pays a dividend (the yield is about 4.5%). This means the stock isn’t as risky as some other penny stocks in the market.

Low valuation and upward share price trend

We also have a low valuation. Taking that EPS figure above, we get a trailing price-to-earnings (P/E) ratio of just 13.2.

That seems low relative to the growth being generated. Note that the one broker covering the stock has a price target of $1.34 (£1.02) – that’s about 75% above the current share price.

On top of all this, the share price is in a nice upward trend right now. Year to date, it’s up about 30%.

An opportunity?

Now, there are risks here, of course. One issue to be aware of is that the company’s founder, Zvi Borovitz, sadly passed away last year.

Borovitz founded the company back in 1970 and was an expert in the field. So, his presence could be missed.

I should also point out that penny stocks like this can lack liquidity. In other words, there can be large spreads between buy and sell prices.

Overall though, I see a lot of appeal. I believe this stock is worth a closer look right now.

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To be fair, the BoE’s track record of predicting inflation and subsequent recessions is pretty dire, with most warnings being false alarms. Still, it doesn’t hurt to prepare for the worst-case scenario. So, what are the best stocks to buy today with a spare £500?

5G penny stocks of the future

In the grand scheme of things, a recession, while unpleasant, is ultimately a short-term problem. And in the long term, demand for technologies like 5G and eventually 6G will likely continue to surge.

Despite what the headlines would suggest, we’re still in the early days of the next-generation telecommunications network. But that makes it the perfect time to find the potential winners of the future. And while some big industry titans like Qualcomm are operating in this space, a handful of tiny penny stocks are also starting to make waves.

Two that have caught my attention are Solid State (LSE:SOLI) and MTI Wireless Edge (LSE:MWE).

The first is an electronic equipment specialist. It works with small and medium-sized businesses that can’t afford to develop their electronics in-house and are also too small to secure deals with larger industry players. While the target market is undoubtedly niche, the group has demonstrated its ability to build strong relationships. And with its latest acquisitions significantly expanding its capacity, Solid State should be able to scale its offerings in line with customer needs.

The second is a global specialist in radio frequency communication technologies. That includes flat & parabolic antennas and custom solutions for businesses and the military. Management has also begun delving into wireless water control systems for agriculture as well as the public sector.

Seeing the risks and rewards

Both of these penny stocks have already begun to tap into the opportunities offered by the rollout of 5G. So, it’s not surprising to see their revenue streams growing by double-digits. And despite their market capitalisations being lower than £100m, both companies are profitable!

In my experience, it’s rare to see small firms having a positive bottom line. And while there’s some debt on their balance sheets, neither appears to be overleveraged. These are all encouraging signs of long-term growth potential. But that doesn’t mean they’re risk-free.

I’ve already highlighted the stiff level of competition. And with supply chain disruptions, especially in the semiconductor space, sourcing the raw materials required to fulfil customer orders is undoubtedly challenging. If these firms cannot clear their order books quickly enough, clients may start turning to competitors who can.

Needless to say, that could quickly compromise the impressive growth delivered to date. Nevertheless, it’s a risk I feel is worth taking for my portfolio with a small amount of capital, like £500.

The post Forget savings accounts! 2 penny stocks I’d invest £500 in as inflation skyrockets appeared first on The Twelfth Magpie.

Well-established and growing

The company develops and manufactures “high quality” antennas for commercial, military and radio-frequency identification (RFD) markets. It’s headquartered in Israel, although the stock is listed on the London market.

One of the things I like is that the business has been around for about 50 years and listed on the stock market for about 15. And now it’s grown into an organisation with three divisions: Antennas, Water Control & Management and Distribution & Professional Services.

With so many processes and systems automated these days, I reckon MTI Wireless Edge is operating in a sector relevant to today’s needs. And the firm’s trading and financial record appears to back up that theory. Over the past few years, revenue has been moving at a compound annual growth rate (CAGR) of almost 16% with earnings per share growing at just over 10%.

Another thing I like is the CAGR of the shareholder dividend. It’s running at just under 18%. And at today’s share price level, the forward-looking dividend yield for 2022 is around 2.75%.

I think MTI Wireless Edge is a rare UK technology growth stock because it pays a decent dividend. I’m more used to seeing growth priced at a level that makes the immediate dividend yield paltry.

Strong results so far this year

In yesterday’s trading update, the company said all three divisions traded well in the nine months to 30 September and they’ve been recovering from last year’s pandemic challenges. Revenue grew by 8% compared with the equivalent period a year earlier. And earnings per share increased by 11%. But perhaps the most important figure is that operating cash flow improved by a robust 15%.

I reckon the cash performance of any business is a good indicator of the strength or weakness of the operation. And MTI Wireless Edge has been doing well in terms of cash. The business is “ungeared” and there’s a net cash position on the balance sheet worth around $9.3m.

Looking ahead, chief executive Moni Borovitz said the business is positioned well for ongoing growth from organic advances and from acquisitions. Meanwhile, the forward-looking earnings multiple is around 30 for 2022 when set against analysts’ expectations. That’s not cheap, although it does drop a bit if I account for the firm’s cash pile.

I think the consistency of the financial and trading record combines with the firm’s growth prospects to justify the rich-looking valuation. However, earnings could miss expectations for any number of operational reasons, causing the share price to fall in the future. And I could lose money on the stock.

Nevertheless, I’m watching this one closely and will likely buy some of the shares on dips and down-days to hold for the long term as the growth story rolls out. And while waiting, I’ll collect the income from the dividend.

The post Why I’d buy this UK technology growth stock with a decent dividend appeared first on The Twelfth Magpie.

A damning IPCC report out on 9 August said the world should expect more extreme weather events like droughts, hurricanes and rising sea levels. This is “code red for humanity”, one United Nations chief said.

So I’ve identified two UK energy stocks I think could help the world solve the water and energy crises we all now face.

MTI Wireless Edge

AIM-listed Israeli firm MTI Wireless Edge (LSE:MWE) builds and supplies 5G wireless antennas for satellites. So why is it in my UK energy stocks list? Well, its water and irrigation subsidiary Mottech Water Management Systems has expanded in Canada. And it has announced a three-year, £175,000 service contract with a “major Canadian city [which has] one of the largest municipal water irrigations systems in the world”.

With wildfires raging and extreme temperatures becoming more common, I see much greater demand for these products in future.

I’ve owned MTI Wireless Edge myself in the past, and sold it for a decent profit. I think now might be a good time for me to buy back in, given the health of the business and its international expansion. 

Q1 results to 31 March 2021 showed profit before tax was up 25%, with earnings per share up 20%. There are still risks though. MTI will need to keep investing heavily in its irrigation control systems, which will be costly.

UK energy stocks 

One way to spot potential future stars in UK energy stocks is to watch when institutions buy in. Altair Group Investment picked up 146 million shares in EQTEC (LSE:EQT) in June. The venture capital giant now owns around 20% of the company. 

EQTEC’s engineers design and build gasification facilities of up to 30MW. These energy plants can process waste materials like forest wood, vegetation and agricultural waste to produce synthetic natural gas or biofuels. 

In May, the company said it had acquired a plant in Italy that could turn waste products into energy with no hazardous emissions. If successful, such energy sources will be critical for the planet in the coming decades. 

The downside

Rich investors in venture capital take on big risks by investing in early stage UK energy stocks. An investment here could just as easily go to zero as anywhere else. And the company has raised money from the market recently, diluting early shareholders. This is a business with costly R&D, so it may well happen again. 

On a brighter note, the £109m company says it expects to become profitable for the first time with FY2021 results. Revenues should grow from €2.2m to €15.5m with a net profit of €3.2m. For FY2022 the business has set even more ambitious revenue and profit targets of €54.9m and €8.25m

Still, if the company fails to reach this high bar, the share price could collapse. 

Benjamin Franklin said nothing is certain in life, except death and taxes. To that aphorism I think we should add climate change. Investing in UK energy stocks could help insulate me and my loved ones against the worst of what’s to come, and help the planet too.

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