Every time I evaluate my tackle penny shares, I hold coming again to Michelmersh Brick Holdings (LSE: MBH). It doesn’t fairly make the minimize now its share price has edged fractionally above the 100p cut-off. However its market cap of £98m remains to be beneath the £100m threshold. And that slots it firmly into my near-penny inventory class.

Why would possibly traders avoid this one? Nicely, rates of interest are nonetheless excessive. And world commerce friction may push inflation and hold charges up for longer. And that every one places stress on constructing demand.

However towards that, forecasts that put the price-to-earnings (P/E) ratio down round 10 by 2027 make it look undervalued to me. Web money quite than web debt strengthens that feeling. And a forecast 4.4% dividend yield places a cherry on prime.

Even with the sector danger, it needs to be a consideration for long-term worth traders.

Funding Belief

CT UK Excessive Earnings (LSE: CHI) funding belief is one other favorite that’s simply above the same old penny share limits. But it surely’s not too far out with a £119m market-cap. And a share price rise of round 35% prior to now 5 years has pushed it to only some pennies over a pound.

What does it have that I like? It has Shell, AstraZeneca, NatWest, Authorized & Normal, Imperial Manufacturers… that’s what. They’re all in its prime 10 holdings, along with another FTSE 100 dividend big-hitters.

They contribute to an anticipated dividend yield of 5.4%. And dividends are paid quarterly, which may make it a extra engaging proposition for traders wanting regular earnings.

Being such a small-cap belief it have to be at better danger of traders pulling out throughout downturns and sending the price down. And going for one thing just like the a lot greater Metropolis of London Funding Belief is perhaps a safer various. However the diversification ought to assist offset the chance. And I do like that dividend.

Jam tomorrow

Am I pushing issues a bit with a share price up round 130p? That’s the place specialist medical prognosis agency Diaceutics (LSE: DXRX) is, and its market-cap’s nearly £112m. However that’s as a result of a 50% rise since early 2024, so it’s near being a penny inventory time-wise. And forecasts imply I actually can’t ignore it.

The corporate’s loss-making proper now after a decline following the Covid days. However forecasts counsel revenue within the 2025 fiscal 12 months, with an increase in 2026 giving a P/E of underneath 18.

It’s additionally in a distinct segment market. And we by no means know when an enormous pharma firm would possibly muscle in on its enterprise.

However analysts are bullish on the inventory with a robust Purchase consensus. And their price targets vary from 180p to 225p. Even the decrease finish is round 35% above the present price.

It’s a tiny, high-risk, at present unprofitable, jam-tomorrow progress inventory. However the jam would possibly really not be very far manner.