If 2019 proves to be as volatile as 2018 was, investors will have quite a ride. I’m not only talking about the roller coaster ride witnessed in the past few months either; several well-known companies are on the verge of massive opportunities that should bear fruit for investors in 2019.
Here’s a look at several of those companies and the opportunities they pose.
The end of the turnaround (and an era)
BlackBerry (TSX: BB)(NYSE: BB) was dethroned as the de facto smartphone king just under a decade ago, but that hasn’t stopped long-time investors and fans of the company’s iconic small-screens and chiclet devices to keep mentioning the shuttered hardware division.
BlackBerry has struggled through a very public and harsh turnaround from a hardware-first to a software-first company that has spanned over half a decade.
That turnaround is now finally complete, and investors can expect BlackBerry to continue the impressive run of results into 2019 and beyond.
Of particular interest to investors will be how BlackBerry’s investments in autonomous driving, the increasing importance in the QNX platform, and the recent acquisition of Cylance play out. In short, investing in BlackBerry could prove to be a lucrative long-term opportunity.
Time for a healthy (re) start
Bausch Health Companies (TSX: BHC)(NYSE: BHC) is another interesting turnaround company worthy of note. Bausch, under its previous name, suffered an epic collapse of its business model back in 2015, leading to an over 90% loss in value in its stock price.
Investors were burned and the company’s reputation was tarnished, but fortunately, since then, the company has rebuilt itself from the inside out with everything from the occupants of the C-Suites to the products and distribution model changing for the better.
Perhaps most impressive is that Bausch has managed to trim down the mammoth debt that it was left with through a series of non-core asset sales and new product releases.
Those new products are what investors should keep a keen eye on, as Bausch has forecast that they could collectively provide several hundred million in revenue annually over the next few years.
Precious metals are always a good bet
Barrick Gold Corp (TSX: ABX)(NYSE: ABX) is not your average precious metals investment. The company announced a deal earlier this year that is set to make Barrick the largest gold producer on the planet with a well-diversified portfolio of mines worldwide.
Gold is traditionally viewed as a safe store of wealth for investors fleeing market volatility, and there was plenty of volatility in the last few weeks of 2018, which may be one of several reasons why gold is steadily increasing in price.
So why should investors consider Barrick in 2019? There are three key reasons to consider.
First, as gold prices increase, so too will Barrick. Barrick is already respected as not only the largest, but also one of the most efficient miners on the market. An increase in margins on an already efficient miner could prove lucrative.
The second reason involves the acquisition from earlier this year. Through that acquisition, Barrick now has an interest in some of the largest and highest quality mines on the planet, which will no doubt provide a boost to production guidance in 2019, much to the joy of investors.
Finally, there’s Barrick’s impeccable knack for finding operational and cost efficiencies. When the gold market suffered an epic multi-year price drop in 2011, Barrick and others were left with massive debt loads and incredibly inefficient operations.
Since 2015 Barrick has slashed its debt in half and in the past has even teased the prospect of being completely debt free within a few years.
