You have to buy 5 paisa shares now

Penny shares may seem tempting because they sell for less than a pound. However, price and value are not always the same thing. But while some penny stocks can be frustrating, I think some real bargains I will gladly add to my portfolio. List my five penny shares to buy now for my portfolio.

Penny shares to buy now: Lloyds

Many are surprised to learn that one of the largest banks in the UK, Lloyds (LSE: LLOY), trades as a penny share. With a market capitalization of B 35bn, the company is far from as big as can be imagined.

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But investors sank the bank during the last financial crisis and since then its shares have risen in the penny share area. So why would I add more Lloyds to my portfolio?

First, I think the bank’s strong brand and strong position in the UK banking market will give it a competitive edge for next year. Second, I prefer the simplicity of its business model compared to other banks. It has focused on UK retail and commercial banking, which means it is less exposed to the risk of foreign banking products and the risk of error in the remote market. Although there are still risks. For example, an economic downturn could increase mortgage defaults, hurting Lloyds’ profits.

Photo-I and a changing market

Think of the passport photo booth and think it is going back to another era. With the rise of digital photography and the current decline in international travel, passport photo booths may not seem like a growing business.

But the key players Photo-m (LSE: PHTM) runs more than just a photo booth, and is redefining its portfolio to meet changing needs. Its laundry machines in locations like filling stations are a big hit. Not only that, the photo booths are doing well again. It was a stronger-than-expected performance recovery that led the company to upgrade its full-year profit forecast in August. Photo-Me now expects a pre-tax profit of £ 25m- £ 30m before the exceptional item. This is about 6.5p-8p per share.

Currently, Photo-Me shares trades for around p5p. I think it looks cheap considering the growth potential of the company. In addition to looking for capital gains, I would expect the cash generating company to return to paying dividends in the future. But one risk is that the new lockdown ban in some markets reduces the number of buyers in areas where Photo-Me has machines. This can reduce both the company’s revenue and profits.

Penny shares to buy now: Date

Another name on my penny share list I will consider for my portfolio is the facility manager. Date (LSE: MTO). Shares have more than doubled in the last one year. But they are still firmly in the penny share area. I think there could be more contradictions, which is why I would consider adding them to my portfolio.

As dramatic price history suggests, dates bring risks. Last year’s rights issue was intense. While this has helped the company strengthen its balance sheet, it is a good reminder that future liquidity challenges could further depreciate shareholders.

Set in contrast is the business attraction of Miti, which increased revenue by £ 2.6bn last year. The epidemic was a challenge, but a few years ago it suggested that Miti had found a way to make money again after the loss. I like its long-term role in core infrastructure. While this may not be a glamorous industry, such benefits are important for a variety of organizations. They will probably continue to need management year after year or for decades. If Miti can show new profitability, I think Miti’s share price could rise. A trading update last month was exaggerated and the company upgraded its profit guidance for the year.

Penny shares with Healthcare Exposure

Healthcare is an area where I expect demand to increase. A money share that offers exposure to the long-term growth of healthcare Asura (LSE: AGR). It is a property company that specializes in hiring healthcare tenants such as physicians practice.

I like the Ashura business model because it involves long-term leases with reliable tenants who are able to rent them. Asura has passed on the benefits of its success to shareholders, currently producing 3.9% of the stock. The company has consistently increased its dividends in recent years and has made no exceptions during the epidemic. It pays on a quarterly basis and so can be a welcome passive income stream to add to my portfolio. Dividends are never guaranteed, but Asura’s distribution history and cash flow boost my confidence in its attractiveness as an income picker.

One risk I see here is politics. Healthcare costs and profits can be a contentious issue. This can suddenly limit the profits of a business such as Asura, which is widely open to healthcare customers.

Stagecoach and a potential bid

Within a penny share of my portfolio, I would consider buying more bus and coach operators. Stage coach (LSE: SGC). Shares fell nearly %% today after the company announced a long schedule for possible mergers with competitors. National Express. Over the past year, though, Stagecoach’s shares have been in Fast Lane, adding 86%.

Any consolidation proposal could trigger a bidding war, which could trigger further side-up prospects for Stagecoach share prices. But even though no bids were implemented, I continued to see Stagecoach shares as interesting. It has an extensive route network across the UK, often with little or no competition from other public transport providers. Transportation is important for national mobility, so the industry also benefits from a range of subsidies. During the epidemic, for example, it helped fund services with low passenger numbers.

There is a risk, however, that if a bid is not implemented, the attitude of investors will be worse. In that case, even if the business results are good, the price of stage coach shares may go down.

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Christopher Ruan owns shares in Lloyds Banking Group and Stagecoach. Motley Full UK Lloyds Banking Group has recommended. Opinions expressed in the companies mentioned in this article may differ from those of the author and therefore our official recommendations in our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.

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