I’m searching for the best penny stocks to buy for my portfolio. Here are three I’d purchase and look to hold until 2030.
Lithium powered
I recently explained how exploding demand for low-emissions cars provides opportunities for UK share investors like me. Zinnwald Lithium (LSE: ZWND) is one electric vehicle (EV) stock I’m thinking of snapping up as a result.
This business owns a 100% stake in the Zinnwald lithium project in Germany. And so it will likely play a critical role in the production of EV batteries. Indeed, the asset is located slap bang in the centre of Europe’s car-building industry. Encouragingly, EV sales in Germany were the second-largest on the planet in 2020, behind only China. Production is yet to begin at Zinnwald. And while the business is making good progress towards maiden output, any issues on the development of the mine could have serious consequences for future profits. All things considered I still think it’s an attractive buy right now, however.
A great freight stock
The Covid-19 crisis poses an ongoing risk to penny stock Xpediator (LSE: XPD). This cheap UK share provides freight management services across Europe. This leaves it vulnerable to fresh travel restrictions being imposed to curb resurgent infection rates. Demand for its services will also likely slump if the pandemic chokes off the economic recovery.
That said, there are a number of reasons why I consider this a highly attractive penny stock today. Its broad range of e-commerce services and its warehouse and logistics division should help it to thrive in the online shopping era. Demand for its customs clearance services is likely to grow in a post-Brexit environment. And its wide geographic footprint gives it strong exposure to fast-growing emerging markets and developed economies alike.
Ready to fly
The same travel restrictions threatening Xpediator might also create problems for Air Partner (LSE: AIR). The aviation services provider faces a sales hit, too, should rising environmental concerns reduce aircraft usage. According to the European Federation for Transport and Environment, private jets are 10 times more carbon intensive than standard airlines, and 50 times dirtier than train travel.
This penny stock provides charter services for aircraft such as private jets, an industry from which it sources the majority of profits. So the dangers created by the green movement are clear. While the Covid-19 crisis created some near-term danger, I think it could be also be argued that it might manufacture long-term opportunity for the likes of Air Partner. This is because lingering infection fears might prompt wealthier individuals to charter their own planes instead of using standard carriers.
I also think Air Partner’s acquisition-led strategy, focussed on areas such as safety and security, will help reduce the risk of falling private jet activity to group profits. And the business is also bulking up its position in the freight market, which provides additional strength through diversification.
Royston Wild has no position in any of the shares mentioned. 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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