Could these high-risk, high-reward penny stocks triple in value over the next decade?

Penny stocks are at the piercing end of the risk/reward spectrum. They are often tiny, fast-growing companies with narrow history, which makes it complex to look 10 years ahead with confidence.

However, a few names are already established and still trading at what I would describe as “early stage” valuations. One example is Michelmersh Brick Holdings (LSE: MBH).

Is it worth buying Michelmersh Brick Plc shares today?

Before you make a decision, please take a moment to read this report. Despite ongoing uncertainty from US tariffs to global conflicts, Mark Rogers and his team believe that many UK shares are still trading at significant discounts, offering many potential learning opportunities for experienced investors.

That’s why this could be the perfect time to conduct this valuable research – Mark’s analysts have combed the markets to discover his 5 favorite long-term “buys”. Please do not make any critical decisions before watching them.

So what makes this an intriguing candidate for the long term?

Good elderly solid brick

Michelmersh produces clay bricks and prefabricated building elements, selling them under brands including Blockleys and Freshfield Lane.

The 2025 results showed revenue of £68.9m, down slightly from £70.1m, while statutory profit before tax fell to £4.3m and underlying earnings per share to 4.02p.

Despite the reduction in profits, the dividend was maintained at 4.6 pence per share and operating cash flow increased to £10.9 million. This is occasional for penny stocks.

The share price has struggled to recover since the 2008 financial crisis, but now may be its time to shine.

Housing push

With Labor planning to build 1.5 million up-to-date homes, housing policy is back in the spotlight. The manifesto talks about compulsory housing targets and “the largest development of social and affordable housing in a generationThis should support demand for materials if these ambitions translate into real projects.

Using the discounted cash flow (DCF) model, analysts estimate that the company’s share price is 39.3% below fair value. Even one of the lowest 12-month targets I’ve found (88p) is still 11.4% higher than today’s price.

The stock’s high price in 2021 is twice today’s price. If it regains this level and continues for another five years, it could realistically triple its price today.

However, construction activity remains faint and Michelmersh’s margins are already under pressure. Net cash has turned into net debt, and management has expressed uncertainty about the timing of customer orders. If Labor’s housing plans are not delivered, returns could exceed expectations and hamper the company’s recovery.

Another forceful option?

Brave Bison Group (LSE:BBSN) are technically no longer a penny stock as their market capitalization is currently just over £100m. Still, I see this as a small-cap play with long-term potential.

The company is “next generation marketing and technology partner”, running social media campaigns, influencer marketing, e-commerce services and its own media network on platforms such as YouTube and TikTok.

In 2025, Brave Bison achieved net revenues of at least £33.5 million, an raise of 57% from £21.3 million in 2024, with adjusted EBITDA of at least £6.5 million and adjusted pre-tax profit of at least £5.5 million.

This growth is driven by acquisitions and up-to-date customer acquisition, including well-known brands such as Primark and Royal Mail.

However, with a huge number of recent acquisitions, execution errors or a decline in digital ad spend can easily reduce margins.

Final thoughts

To me, penny stocks are classic high-risk, high-reward vehicles in a diversified portfolio. Many of today’s giants once traded for pennies, but many penny names are also quietly disappearing.

Companies like Michelmersh Brick and Brave Bison offer real demand drivers with credible growth plans. Still, the added uncertainty means that they should only be considered tiny positions alongside more defensive base positions.

The real question is whether this mix of risk and potential fits your long-term plan. What matters most in investing is each person’s individual goals, schedule and risk tolerance.

Is it worth investing £5,000 in Michelmersh Brick Plc now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if Michelmersh Brick Plc is on the list?

Mark Hartley holds no position in the companies mentioned.