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Everyone knows buying the right penny stock at the right time can be like winning the lottery. But as with a quick flutter at the news agents on a Saturday morning, we know the odds are stacked firmly against winning the jackpot.
This makes acquiring penny shares somewhat of a gamble, in my view. And when the odds are this low, it makes sense to act prudently and not bet the farm.
That said, Agronomics (LSE:ANIC) is an interesting penny stock. Priced at 7p, it’s up 100% year to date but remains 78% below its 2021 level of 35p.
Could this be one of those rare hidden-gem penny stocks? I asked ChatGPT for its input.
The company
First though, some info on Agronomics. It’s a venture capital company that has backed around 20 start-ups in the field of cellular agriculture. This is meat and animal-derived products like eggs or dairy grown from cells in bioreactors rather than live animals.
But why do this? I mean, humans have been rearing livestock for over 10,000 years. Well, benefits of clean/cultivated meat include reducing greenhouse gas emissions, deforestation, overfishing, animal cruelty, and antibiotic resistance.
The world will need a 60% increase in food production by 2050 to feed a growing population, according to the United Nations. By growing real animal meat from cells, this industry could drastically increase food production while reducing the environmental burden.
The portfolio
None of Agronomics’ 20+ portfolio companies is publicly listed and many are pre-commercial. Obviously this makes the stock high risk.
Top 10 holdings (as of May 2025)
| Company | Description |
|---|---|
| Liberation Labs | Precision fermentation infrastructure |
| SuperMeat | Cultivated poultry meat |
| BlueNalu | Cultivated seafood |
| Meatable | Cultivated pork |
| Solar Foods | Protein from CO₂ and electricity |
| Onego Bio | Egg proteins |
| Formo | Precision-fermented cheese |
| All G Foods | Casein proteins for dairy alternatives |
| Clean Food Group | Palm oil alternatives |
| EVERY | Egg proteins |
However, some start-ups are making great operational progress. For example, the UK’s Meatly became the world’s first company to supply lab-grown pet food earlier this year. Its ‘Chick Bites’ dog treats are in Pets at Home.
Meatly has been raising money, and it might have commercial success. After all, dogs are less fussy when it comes to wolfing down lab-grown meat, while more owners are feeding their furry darlings healthier food. Also, the regulatory pathway is less stringent.
Elsewhere, EVERY recently announced a successful $55m financing round. It produces egg proteins using precision fermentation, and its products will soon be featured at Walmart.
The massive $270bn global egg market has suffered from shortages and price volatility. So EVERY’s commercial opportunity appears substantial.
Finally, BlueNalu expanded a deal with Birds Eye owner Nomad Foods in August to support the commercialisation of its cell-cultivated seafood.
Hidden gem?
Of course, widespread consumer adoption of lab-grown food might never happen. As Meatly CEO Owen Ensor told AgFunder News: “If you look at any food trend, it’s not ChatGPT, it’s not going to reach half the population in two years. But I do think the tide is turning.”
Speaking of ChatGPT, what did it say about Agronomics? It reckons the stock could be a hidden gem if a “portfolio company achieves large commercial scale“. However, it cautioned that mass-market adoption is “miles away“.
ChatGPT doesn’t give examples of which companies might skyrocket in value (it’s generally light on details, unfortunately). But personally I think BlueNalu, which makes up around 9% of Agronomics’ portfolio, is very interesting given the Birds Eye tie-up.
With Agronomics stock trading some 50% below its last reported net asset value of £145.3m, I think it’s worth considering as a small position for adventurous investors.
