With a bull market well underway, investors have had a lot of fun with the broad market running higher in addition to the incredible returns available to both marijuana investors and those who invested in cryptocurrency early on. With so many approaches to investing, however, the high likelihood of making money from dividend-paying stocks (or value stocks) has kept excitement at bay for many investors.
For those willing to take the time to look at growth companies, which are well on their way to becoming value investments (or growth at a reasonable price investments, known as GARP), there is a tremendous amount of excitement in the high amounts of capital appreciation in the share prices.
The first name to consider is none other than Shopify Inc. (TSX:SHOP)(NYSE:SHOP), which at its current price of almost $150 per share continues to offer investors a significant amount of potential. The money they’ve spent to onboard several clients has been recognized in past income statements as the revenues generated start to expand. This fantastic growth company will essentially turn the corner from simply establishing itself to actually generating a bottom line profit on a regular basis. Since fiscal 2013, revenues have increased at a compound annual growth rate (CAGR) in excess of 1,100%!
Over the same period, the cash flow from operations (CFO) has moved from almost nothing to a positive $15 million annually. With the company starting to realize its true long-term value, investors will not lack excitement when holding this name.
For investors seeking large gains and a lot of excitement, they should consider none other than MedReleaf Corp. (TSX:LEAF), which at $24 per share carries a market capitalization of no less than $2.3 billion. Although revenues are only about $40 million for the year, the reality is that marijuana has yet to be legalized by the federal government. As a result, investors haven’t begun to appreciate the full potential of the market. However, with the opportunity to earn a high reward comes the risk that the market has overpriced the stock at the current price and that losses may follow. Again, investors should not forget that with excitement comes volatility.
The last name on the list is none other than Dollarama Inc. (TSX:DOL), which has grown by leaps and bounds over the past several years. With a footprint finally in place to take on Canada’s convenience stores, the company may just obliterate its own year-over-year results. However, although new stores are opening all the time, the incremental revenues and earnings are constantly declining. With a clear long-term trend upwards, there could well be numerous bumps along the road to long-term profitability and higher dividends with this name.
