I’m thinking of buying these four UK shares today. They all cost around £5, or below.
A sweet treat
There’s no shortage of chocolate manufacturers vying to satisfy our collective sweet tooth and that’s a risk for Hotel Chocolat Group. But its premium offer puts it in a class above most of its rivals, I feel. It’s a quality I think could help it overcome this fierce competition and deliver big profits.
Sales at Hotel Chocolat soared by a better-than-expected 21% in the 12 months to June. It was an especially impressive result, given that its stores were shuttered for half of the period due to Covid-19.
The chocolatier has exceptional brand power and its drive to become an e-commerce-driven brand is going down a storm. I reckon revenues at the business could also boom as it rolls its luxury chocolates out across the globe. Hotel Chocolate trades at 502p per share.
Down on the farm
I believe Wynnstay Group’s a great way to play the defensive food production business. This is because it provides a wide range of essential items to farmers, from fencing and animal feed to Wellingtons, wool clippers and seed. The company’s strength through diversification also comes from its model that it supplies products to both arable and livestock farmers.
My main concern over Wynnstay is its ultra-low margins. This is particularly concerning today as commodity prices rise. But all things considered, I reckon this cheap UK share can be considered pretty robust and this appeals greatly to me in these uncertain economic times. Wynnstay trades at 525p per share.
Riding the housing boom
I think having exposure to the booming residential property market is also great idea right now. It’s why I own shares in developers Taylor Wimpey and Barratt alongside brick manufacturer Ibstock. Grabbing a slice of LSL Property Services could also be a good idea for me. Why? It provides a broad range of services that help the property market go round, such as surveying, insurance and estate agency.
LSL Property generated record first-half turnover of £166.5m in 2021. I’m fully expecting revenues to keep marching higher too as low interest rates and government support for first-time buyers will likely persist. I’d buy this UK stock despite the problems a worsening domestic economy could do to revenues. LSL Property changes hands at 400p a share.
A beaten-down bargain
Mpac Group’s a UK share that’s been on my radar for some time. And I’m thinking of finally snapping it up a following a sharp share price correction from 600p per share. It was recently trading at 510p.
Mpac manufactures high-speed packaging and automation systems. It is thriving as companies spend heavily to automate their businesses to improve efficiency and bring down costs. Commercial revenues rocketed 69% year-on-year between January and June, while its order book was up 12% from the same period in 2020.
I think Mpac’s momentum, along with its focus on the defensive healthcare and food and drink sectors, makes it an attractive buy. That’s even if it lacks the financial clout of its bigger rivals, something that could hamper its growth opportunities.
Royston Wild owns shares of Barratt Developments, Ibstock, and Taylor Wimpey. The Motley Fool UK has recommended Hotel Chocolat and Ibstock. 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.
This post was originally published on Motley Fool
