Need Holiday Gift Ideas? Try Micro-Cap Stock Market Assets

If you are looking for a last-minute holiday gift ideas for your family in Canada this winter for Hanukkah or Christmas, try Fire and Flower (TSX:FAF) stock.

The holiday season is here. Whether you celebrate Hanukkah, Christmas, or another tradition, you are likely looking for last-minute holiday gift ideas and stocking stuffers. The stock market is the best place to shop for presents for your family members in Canada. 

There are many cheap high-growth stocks on the Toronto Stock Exchange. For less than $100, you can buy your loved ones shares in top growth companies. Your gift will continue to give to them year after year in the form of capital gains. 

Cannabis is one of the most accessible industries in which to gift stock. There are many young companies set up for success in the stock market. While speculative investors have overvalued pot stocks like Canopy Growth, the same shareholders have left many good brands undervalued on the exchanges.

Look for triple-digit earnings growth in the stock market

The cannabis stock Fire and Flower (TSX: FAF) reported earnings on Tuesday. This stock sells for less than $1 per share. At the time of writing, you can pick up a 100-share block for $91. 

Marijuana stocks like Fire and Flower are creating millionaires on the stock market. All that’s required is patience and a long-term, value-investing mindset. You can help your family members save a tidy nest egg for retirement by gifting them a stock market asset rather than the next iPhone this holiday season. 

Fire and Flower is a good option because it is cheap with high earnings growth. Compared with the same quarter last year, gross profit grew by 297% from $1.2 million to $4.75 million. Higher earnings will start to reflect in the share price in the next year, meaning strong returns for your family members.

Take note of positive EPS & retail store growth 

Many top pot stocks have not yet reported positive EPS. Canopy Growth, for instance, published earnings of negative $5.76 per share over the last 12 months. The next marijuana stocks to experience strong positive investor sentiment will be those reporting positive EPS and retail store growth. 

One investor came out of the woodwork today on Twitter to commend Fire and Flower for last quarter’s financial performance:

$faf total revenue was 13,699 mio.$ November 2/2019 vs August 3, 2019, the Company generated revenue of $11.1 million. means the profit went up for ~23% 👍 + first time EPS positive (while offsetting derivative liability)

— Boersenmillionaer.de (@premiumbrief) December 17, 2019

Last quarter, Fire and Flower opened 10 new cannabis retail stores, bringing the total number of operational retail stores to 30 throughout Alberta, Manitoba, Saskatchewan, and the Yukon. Further, the company expanded its footprint to Ontario by providing two branded cannabis retail stores with consulting and licensing services. 

An expanded geographic footprint through store and services growth is crucial for maintaining the same momentum of profit magnification throughout 2020. Your family members will appreciate the gift of shares in Fire and Flower when they see how quickly the stock price increases over the next 52 weeks. 

Give the gift of savings this holiday season

Everyone is worried about their retirement savings and how they will pay for their child’s education. A stock market position may not be the shiny, new HD television that they were hoping for this holiday season. While the financial assets may come as a surprise to your family members, they will be grateful that someone else is wishing them alpha-level economic prosperity going into the next decade. 

Buy undervalued pot stocks for your families and challenge them to maintain the shares at least until next year. Fire and Flower is a great option, because you can purchase a 100-share position (a decent size!) for less than $100. 

Fool contributor Debra Ray has the following options: short January 2020 $15 puts on Canopy Growth. Tom Gardner owns shares of Twitter. The Motley Fool owns shares of and recommends Twitter.

More on Stocks for Beginners

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Stocks for Beginners

Your RRSP Could Be Too Large by 71: Here’s What I’d Do in My 60s

A large RRSP can eventually force substantial taxable withdrawals, making the years before 71 unusually valuable for tax planning.

Read more »

nugget gold
Stocks for Beginners

Gold Just Had a Rough Week: Is This Canadian Miner Still Worth Buying?

Agnico Eagle shares had a rough week, but record cash flow and a net-cash balance sheet keep the thesis interesting.

Read more »

concept of growth
Dividend Stocks

The Dividend Stock I’d Never Sell, Even in a Downturn

Fortis is a dividend stock I'd hold through a downturn. Its regulated utilities and dividend growth support a patient approach…

Read more »

patient tests her eyes with a vision test at a doctor
Stocks for Beginners

Don’t Make This TFSA Contribution Room Mistake

Before adding money to your TFSA, make sure you know your actual contribution room.

Read more »

ETF is short for exchange traded fund, a popular investment choice for Canadians
Dividend Stocks

Create a Set-And-Forget Portfolio With Just 3 ETFs

Build a set-and-forget portfolio with VCN, XUU, and XEF, three ETFs offering broad exposure to Canadian, U.S., and international stocks.

Read more »

arrows hit bullseye on target
Stocks for Beginners

2 Undervalued TSX Stocks Flying Under the Radar

These two undervalued TSX stocks have both suffered steep declines, but their fundamentals suggest the underlying businesses still have plenty…

Read more »

Warning sign with the text "Trade war" in front of container ship
Dividend Stocks

The Trade War Is Raising Prices Again: This Canadian Grocer Can Protect Its Margins

Trade tensions can raise specific retail costs even when overall grocery inflation is slowing, putting purchasing scale at a premium.

Read more »

Financial analyst reviews numbers and charts on a screen
Stocks for Beginners

2 Stocks to Buy if the Market Pulls Back

These two TSX stocks offer ways to prepare for the next market pullback, with fast growth and steady profitability.

Read more »