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Everybody is aware of shopping for the appropriate penny inventory on the proper time will be like successful the lottery. However as with a fast flutter on the information brokers on a Saturday morning, we all know the chances are stacked firmly in opposition to successful the jackpot.
This makes buying penny shares considerably of a raffle, for my part. And when the chances are this low, it is sensible to behave prudently and never guess the farm.
That stated, Agronomics (LSE:ANIC) is an attention-grabbing penny inventory. Priced at 7p, it’s up 100% yr to this point however stays 78% beneath its 2021 degree of 35p.
May this be a kind of uncommon hidden-gem penny shares? I requested ChatGPT for its enter.
The corporate
First although, some data on Agronomics. It’s a enterprise capital firm that has backed round 20 start-ups within the area of mobile agriculture. That is meat and animal-derived merchandise like eggs or dairy grown from cells in bioreactors quite than reside animals.
However why do that? I imply, people have been rearing livestock for over 10,000 years. Properly, advantages of unpolluted/cultivated meat embrace decreasing greenhouse gasoline emissions, deforestation, overfishing, animal cruelty, and antibiotic resistance.
The world will want a 60% enhance in meals manufacturing by 2050 to feed a rising inhabitants, based on the United Nations. By rising actual animal meat from cells, this trade may drastically enhance meals manufacturing whereas decreasing the environmental burden.
The portfolio
None of Agronomics’ 20+ portfolio corporations is publicly listed and plenty of are pre-commercial. Clearly this makes the inventory excessive danger.
High 10 holdings (as of Might 2025)
| Firm | Description |
|---|---|
| Liberation Labs | Precision fermentation infrastructure |
| SuperMeat | Cultivated poultry meat |
| BlueNalu | Cultivated seafood |
| Meatable | Cultivated pork |
| Photo voltaic Meals | Protein from CO₂ and electrical energy |
| Onego Bio | Egg proteins |
| Formo | Precision-fermented cheese |
| All G Meals | Casein proteins for dairy alternate options |
| Clear Meals Group | Palm oil alternate options |
| EVERY | Egg proteins |
Nonetheless, some start-ups are making nice operational progress. For instance, the UK’s Meatly turned the world’s first firm to produce lab-grown pet meals earlier this yr. Its ‘Chick Bites’ canine treats are in Pets at House.
Meatly has been elevating cash, and it may need industrial success. In any case, canine are much less fussy relating to gorging down lab-grown meat, whereas extra homeowners are feeding their furry darlings more healthy meals. Additionally, the regulatory pathway is much less stringent.
Elsewhere, EVERY just lately introduced a profitable $55m financing spherical. It produces egg proteins utilizing precision fermentation, and its merchandise will quickly be featured at Walmart.
The huge $270bn international egg market has suffered from shortages and value volatility. So EVERY’s industrial alternative seems substantial.
Lastly, BlueNalu expanded a cope with Birds Eye proprietor Nomad Meals in August to assist the commercialisation of its cell-cultivated seafood.
Hidden gem?
After all, widespread client adoption of lab-grown meals would possibly by no means occur. As Meatly CEO Owen Ensor instructed AgFunder Information: “For those who have a look at any meals development, it’s not ChatGPT, it’s not going to succeed in half the inhabitants in two years. However I do assume the tide is popping.”
Talking of ChatGPT, what did it say about Agronomics? It reckons the inventory could possibly be a hidden gem if a “portfolio firm achieves giant industrial scale“. Nonetheless, it cautioned that mass-market adoption is “miles away“.
ChatGPT doesn’t give examples of which corporations would possibly skyrocket in worth (it’s typically gentle on particulars, sadly). However personally I believe BlueNalu, which makes up round 9% of Agronomics’ portfolio, may be very attention-grabbing given the Birds Eye tie-up.
With Agronomics inventory buying and selling some 50% beneath its final reported web asset worth of £145.3m, I believe it’s value contemplating as a small place for adventurous buyers.
