Investing in companies with exposure to emerging markets is essential for any winning shares portfolio, in my opinion. And I think Grit Real Estate Income Group (LSE: GR1T) could be a great way to go about this.
The penny stock owns and operates office blocks, shopping malls, resorts, warehouses and other property assets across eight or so African countries. Its real estate can be found in some of the continent’s brightest economies like Kenya and Morocco too.
Grit Real Estate is well-placed to exploit soaring economic growth in Africa then. And because it operates across various sectors spanning multiple countries the business offers investors added security by diversification too. I think it’s worth serious attention despite the low uptake of Covid-19 vaccines in Africa. This creates the possibility of economic turbulence if infection rates soar again.
Riding the lithium boom
Soaring sales of electric vehicles (EVs) offer plenty of opportunity for savvy UK share investors. I’ve invested in auto parts manufacturer TI Fluid Systems to play this theme. And I’m thinking of buying shares in IronRidge Resources (LSE: IRR) too, which is developing the Ewoyaa lithium spodumene project in Ghana.
Buying mining shares can be risky business. Exploration and production activity can often run into trouble, resulting in higher-than-expected costs and disappointing revenues. There’s also a possibility that the element a company is mining for could plummet in price if market supply soars or demand sinks.
There’s a lot I like about IronRidge Resources however. I like that Piedmont Resources is investing $102m to fast-track development of Ewooya. I’m also encouraged by its Ghanian lithium asset being one of the ‘greenest’ out there. It’s a quality that could significantly boost demand for its shares from ESG investors as the sustainable investment theme takes off.
And another thing, I’m confident that lithium prices will rise strongly in price. The rate at which EVs are growing means that lithium demand — a key component in these vehicles’ batteries — is likely to outstrip production growth by a large margin.
Another top ESG penny stock
I think Nanoco Group’s (LSE: NANO) another penny stock that could draw increasing attention from ESG investors. The business manufactures displays, electronic goods and lighting fixtures using its highly-patented nano-material technologies. These help customers cut their energy usage and, on top of this, they are made without using toxic heavy metals.
It’s important to remember that Nanoco is reliant upon a small number of companies to drive revenues. Therefore any contract losses from one of these core customers could have a significant impact upon profits.
However, I think the use of its products in fast-growing, next-generation sectors like the Internet of Things and automation still makes it worth close attention. I also like the fact it has more than 700 patents on its products, providing strong protection against potential imitators that should help it win future business.
Royston Wild owns shares of TI Fluid Systems. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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