Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by G A Chester Penny stocks: should I buy [email protected] (SYME) shares? Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. When I look at penny stocks, I’m always especially minded to ask the first question Warren Buffett and Charlie Munger ask when weighing up a company. Namely, “What could go wrong?”Peter Bevelin, author of Seeking Wisdom: From Darwin to Munger, has put the ultimate answer in a nutshell: “If a catastrophic outcome is possible or you can’t judge the downside, stay away.”5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…With this in mind, I’ve asked myself whether I should buy UK penny stock [email protected] Capital (LSE: SYME). I’ll say straight off that I’ve concluded I should avoid it. Here, I’ll explain my reasons for steering clear and also look at the potential upside, if my caution is misconceived.Empty [email protected] Capital has developed a fintech platform. It aims to bring together companies wishing to raise cash against their inventories with funders willing to supply it. This at a cost that makes a profit for both the funders and [email protected] company gained a stock market listing in March 2020. It targeted a first securitisation of inventories via its platform within six months. But, so far, it hasn’t managed to bring together a single deal.A £227m penny stockI’ve previously been sceptical about [email protected]’s prospects. For one thing, I’m not convinced the company’s business model is actually viable. And there are a number of other things that concern me.First, [email protected] was sold to investors on a prospectus showing net assets of £227m — bang in line with its market capitalisation at an issue price of 0.7p a share. However, on its post-listing balance sheet, net assets were less than £1m. Goodwill had been entirely written off.Waiting for GodotAs well as the repeated delays to a first securitisation of inventories, the publication of this penny stock’s first audited financial statements has been put back and back. First, because the company has twice changed the date of its financial year-end. And second, because it’s simply failed to get the results out by the dates it’s set.On 19 January, [email protected] told us the results would be “published in April.” On 23 April, it put the date back to “during May.” On 26 May, it said the statements “are being finalised, with publication expected next week” (i.e. during the trading week ending 4 June). And on 4 June, it announced another delay. It said it will publish the results only after it’s secured a new funding facility “expected to be completed in the coming days.“In view of the net assets carry-on, and the repeated delays to both the first securitisation of inventories and first audited results, [email protected] doesn’t pass my ‘smell test’. I’d want to at least see those audited results before going anywhere near this penny stock. But what if my scepticism is misconceived?A penny stock [email protected] shares are trading at 0.39p, as I’m writing. At this price, the market capitalisation of the company is £128m.This may look high for a start-up business, but if the company really has found a way to revolutionise inventory monetisation through its fintech platform, the market opportunity could be vast. [email protected] talks of an addressable market of inventory under management in the $trillions. Not a bad target for a little UK penny stock! Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Enter Your Email Address G A Chester | Wednesday, 9th June, 2021 | More on: SYME Our 6 ‘Best Buys Now’ Shares The high-calibre small-cap stock flying under the City’s radar Image source: Getty Images G A Chester 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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