My U.K.-based penny stock picks trade on U.S. exchanges and the OTC markets. Occasionally, they can even become the hottest stocks on our home markets.
Take U.K.-based biotech Virax Biolabs Group Ltd. (NASDAQ: VRAX). It IPO’d in July 2022 at $5 per share. Within a week, it had gained over 400%, becoming one of the sector leaders of the summer’s hottest sector, IPOs.
Most of the other hot IPOs of the time were Chinese, giving one more sign of how globalized the market has become. With digital hot sectors like crypto and NFTs emerging, the chances for a global hot streak multiply.
I don’t believe in limiting my trading options. But when the pool of trading candidates expands worldwide, you have to try a little harder to do your due diligence…
Table of Contents
- 1 What Are Penny Stocks?
- 2 Advantages of Trading UK Penny Stocks
- 3 UK Penny Stocks to Watch for in 2023
- 3.1 1. Virax Biolabs Group Ltd. (NASDAQ: VRAX) — The Still-Low-Float Biotech Penny Stock
- 3.2 2. Akari Therapeutics PLC (NASDAQ: AKTX) — The Future Reverse Split Penny Stock
- 3.3 3. BT Group (OTCPK: BTGOF) — The Large-Cap Penny Stock
- 3.4 4. Argo Blockchain PLC (NASDAQ: ARBK) — The Crypto Penny Stock
- 3.5 5. Cineworld Group PLC (OTCPK: CNNWQ) — The Next Meme Stock?
- 3.6 6. Lloyds Banking Group PLC (NYSE: LYG) — The Megabank Penny Stock
- 3.7 7. Aston Martin Lagonda Global Holdings PLC (OTCPK: ARGGY) — The James Bond Car Penny Stock
- 3.8 8. ASOS PLC (OTCPK: ASOMY) — The Breakout Former Penny Stock
- 4 Key Takeaways
- 5 UK-Based Penny Stock Picks FAQs
What Are Penny Stocks?
Penny stocks trade at less than $5 per share. You can find them listed on major stock exchanges like the New York Stock Exchange (NYSE) and Nasdaq, or unlisted on the over-the-counter (OTC) markets.
Penny stocks are considered risky by most traders, and your penny stock access will differ between brokers like Wealthsimple Trade and Interactive Brokers. Some brokers won’t allow you much or any access to OTC penny stocks, which are considered the most risky of all.
There are penny stocks in every market sector, from airlines to artificial intelligence solutions providers. These companies often have small market caps — and moreover they’re usually sketchy and unstable, if not outright scams.
You shouldn’t “hold and hope” with penny stocks. 99% of them will eventually fall apart, and their shares will become worthless. The way that my students and I trade penny stocks is quickly and with a plan.
It isn’t all bad news: I think that penny stocks are one of the best ways to build small accounts. You just need to understand them first, as well as the strategies that work for them.
If you’re going to trade foreign penny stocks, you’ll probably need a broker that allows you OTC access. Many foreign stocks are listed on the OTC markets through American Depositary Receipts (ADRs). American banks or brokers issue ADRs to represent foreign stocks so American traders can buy them easily.
In some cases, ADR prices don’t accurately reflect the stock’s home exchange prices, like in the case of LATAM Airlines Group S.A. (OTCPK: LTMAY). There was a 10,000% price discrepancy between the ADR and the home exchange stock, because the company issued over 600 billion new shares!
This was a 99% dilution, which should have cratered the share price. It hasn’t yet. Penny stocks rarely act rationally.
Advantages of Trading UK Penny Stocks
Like smart VRAX traders experienced, trading international penny stocks can produce profits. Here are some key advantages to trading U.K.-based penny stocks.
They’re Less Susceptible to Market Trends
Penny stocks don’t rely on market trends as much as higher-priced stocks. That’s because of the next advantage…
Big Investors Interfere Less
Large investment firms and hedge funds prefer more stable stocks. While penny stocks are volatile, they aren’t subject to the whims of Wall Street.
There Are More Multi-Day Runners
News travels slow in penny stock land. That means that a catalyst can continue affecting a stock for days.
You can build a trading edge out of this. You just need the right stock screener — like StocksToTrade.
Why is StocksToTrade my go-to trading platform? It’s not just because I had a hand in designing it. For one, I think it has the best news scanner on the market.
Instead of clicking back and forth between Twitter and a bunch of news sites, I just look at one StocksToTrade window. Breaking News Chat, an add-on alert service run by two former Wall Street analysts, has become my secret weapon for penny stock trading.
EVERYONE needs to use the @StocksToTrade social media search tool & breaking news tool, they’ll open your eyes to what’s happening these days across so many chat rooms/websites/“communities”, pretty amazing to see the pumping of stocks like $FWP $GNUS $FRSX $CREX
— Timothy Sykes (@timothysykes) May 13, 2020
UK Penny Stocks to Watch for in 2023
My UK-based penny stock picks for 2023 are:
- (NASDAQ: VRAX) — Virax Biolabs Group Ltd. — The Still-Low-Float Biotech Penny Stock
- (NASDAQ: AKTX) — Akari Therapeutics PLC — The Future Reverse Split Penny Stock
- (OTCPK: BTGOF) — BT Group — The Large-Cap Penny Stock
- (NASDAQ: ARBK) — Argo Blockchain PLC — The Crypto Penny Stock
- (OTCPK: CNNWQ) — Cineworld Group PLC — The Next Meme Stock?
- (NYSE: LYG) — Lloyds Banking Group PLC — The Megabank Penny Stock
- (OTCPK: ARGGY) — Aston Martin Lagonda Global Holdings PLC — The James Bond Car Penny Stock
- (OTCPK: ASOMY) — ASOS PLC — The Breakout Former Penny Stock
Keep in mind that I have NO intention of trading these stocks unless they suit my favorite setups. This is only a watchlist.
The top traders spend more time watching than trading. That’s what I’m aiming to depict here. Pay attention to the effort that is put in rather than the selections that are made.
1. Virax Biolabs Group Ltd. (NASDAQ: VRAX) — The Still-Low-Float Biotech Penny Stock
My first U.K.-based penny stock pick is Virax Biolabs Group Ltd. (NASDAQ: VRAX).
If you traded this summer IPO back when IPOs were hot and VRAX was pumping monkeypox news, you might have fond memories.
If you held until now, you might not.
You’d have seen VRAX’s increasingly desperate pleas for attention, before a huge dilution tanked their stock.
Why We Like It
Even after diluting, this stock’s float is still under 8 million shares.
It isn’t an exciting company — its combination COVID-flu-RSV rapid tests came out a year too late. But if it can find a catalyst, that small float can move the needle.
2. Akari Therapeutics PLC (NASDAQ: AKTX) — The Future Reverse Split Penny Stock
My second U.K.-based penny stock pick is Akari Therapeutics PLC (NASDAQ: AKTX).
AKTX is a London-based biotech working on an inflammatory treatment. And recently, it’s put out news that it’s working on another drug.
As its cash gets dangerously low and its April delisting deadline to get shares above $1 approaches, AKTX knows it has to do something.
Why We Like It
I think AKTX will do something. The obvious thing to do would be dilute… But first AKTX needs some volunteers to buy its near-worthless stock.
READ THIS BLOG POST: https://t.co/ss9Y3ZiD5f The Dangers of Penny Stock Dilution & Stock Pumps, while companies put out PRs to be pumped on $TWTR they're also working to sell stock at MASSIVE discounts to the pumped up prices, funds don't pay retail prices so neither should you!
— Timothy Sykes (@timothysykes) July 28, 2020
Its press releases haven’t moved its price. My guess is it will conduct a reverse split to maintain compliance with Nasdaq requirements.
The smaller float that results might be the catalyst AKTX needs to get back in the market’s good graces.
3. BT Group (OTCPK: BTGOF) — The Large-Cap Penny Stock
My third U.K.-based penny stock pick is BT Group (OTCPK: BTGOF).
BT Group is one of the world’s largest telecom companies. That means this penny stock needs its nearly 10 billion share float to reflect the value of its underlying assets.
Why We Like It
Normally, larger-float stocks like this are stayaways for penny stock traders…
But I like BT Group. The analysts seem to think it’s on the upswing.
It’s a power player that makes deals with the likes of Microsoft. A penny stock with this type of news-making potential will always be worth watching.
4. Argo Blockchain PLC (NASDAQ: ARBK) — The Crypto Penny Stock
My fourth U.K.-based penny stock pick is Argo Blockchain PLC (NASDAQ: ARBK).
Bitcoin miner Argo recently avoided bankruptcy with a $100 million bailout from a bigger blockchain firm. So what if it’s being sued by traders who bought into its 2021 IPO at $15 a share, or that four of its top officers resigned in the past month?
Why We Like It
It’s clear that ARBK isn’t out of the woods yet. But don’t tell that to the newbies who’ve sent its share prices up in 2023…
Despite all the hate, you gotta appreciate how fast #Bitcoin & #Ethereum & tons of other #Crypto & shitcoins are spiking, who else is excited to see how high this bounce can go?! Retweet this if you want these things to spike 50%+ in the next few weeks. Favorite this for 100%+!
— Timothy Sykes (@timothysykes) January 14, 2023
All they see is Bitcoin’s recovery. A penny stock that mines the stuff will always seem like a good deal.
5. Cineworld Group PLC (OTCPK: CNNWQ) — The Next Meme Stock?
My fifth U.K.-based penny stock pick is Cineworld Group PLC (OTCPK: CNNWQ).
Cineworld doesn’t have the name recognition of AMC to U.S. meme traders. But the second-largest cinema chain in the world has a tale of woe that is even more striking.
Cineworld shares lost 98% of their value over the past three years. At the end of February, it said those shares won’t regain any value in a restructuring or sale of the business.
And when it put its assets up, no serious bidders emerged.
Why We Like It
Looks pretty bleak, right? Where are those meme traders now?
The deadline for bids on the business is April. That means the clock is ticking.
6. Lloyds Banking Group PLC (NYSE: LYG) — The Megabank Penny Stock
My sixth U.K.-based penny stock pick is Lloyds Banking Group PLC (NYSE: LYG).
If you don’t like ticking-clock, soon-to-be-worthless penny stocks, maybe LYG will be more your speed. This is another large-cap stock that trades for cheap in the U.S., but has solid fundamentals and decent growth prospects.
Why We Like It
British bank Lloyds has posted solid earnings recently and announced a $2.4 billion buyback.
It doesn’t move much, but it’s still up 25% in the past four months.
7. Aston Martin Lagonda Global Holdings PLC (OTCPK: ARGGY) — The James Bond Car Penny Stock
My seventh U.K.-based penny stock pick is Aston Martin Lagonda Global Holdings PLC (OTCPK: ARGGY).
It’s telling that the newest James Bond prominently featured two older Aston Martins. Nobody, not even James Bond, is buying the new ones.
That’s bad news for the parent company, which has not benefited from the same reversal of fortunes that other carmakers have felt post-2020.
Why We Like It
This stock’s fundamentals are awful. Its long-term prospects don’t look great…
But this kind of sexy IP can get a penny stock pretty far.
8. ASOS PLC (OTCPK: ASOMY) — The Breakout Former Penny Stock
My eighth U.K.-based penny stock pick is ASOS PLC (OTCPK: ASOMY).
ASOS is struggling, but you wouldn’t know that by looking at its chart… Not the six-month chart anyway.
In the big picture, it’s facing a restructuring after losing 85% of its value over the past two years.
Why We Like It
You shouldn’t trade penny stocks for the big picture. While it’s important to understand what ASOS is going through business-wise, it shouldn’t affect your trade.
In the last few months, this stock has shown momentum. It’s also drastically undervalued by revenue.
Don’t expect a return to past form. But there might be a trade in ASOMY’s future.
Trading the U.S. tickers of U.K.-based stocks is no different than trading any other penny stocks. Make your own watchlists, study charts, then keep an eye out for unusual trading volume and news.
Want to learn more about trading penny stocks and creating your own watchlists? Join my Trading Challenge! I share what I’ve learned during my 20-plus years as a trader, to help you become a safer, more self-sufficient, and smarter trader.
Do you have any U.K.-based penny stocks on your watchlist? Share them with me in the comments!
UK-Based Penny Stock Picks FAQs
Yes, you can use U.S. dollars. Read on if you have more questions…
What are the best UK penny stocks?
As with U.S.-based stocks, there are no “best” U.K. penny stocks. A smart and self-sufficient penny stock trader focuses on a stock’s chart and never buys into the hype when trading. Do your own research to identify stocks for your watchlist, then keep your eyes peeled for trading opportunities.
Can you buy penny stocks in the UK?
You can buy penny stocks in the U.K. which trade on U.S. exchanges quite easily. If you want to buy a stock on the London Stock Exchange, you’ll need to find a broker that will allow you to do so.
Where can I buy penny stocks in the UK?
You can buy penny stocks in the U.K. on the London Stock Exchange. There is no minimum share price requirement to be listed.