A storm doesn’t discriminate. When it comes, it rocks small boats and huge ships alike. But even if a well-built vessel faces the same rough waters as a badly built one, they don’t emerge from the storm in the same way.
Similarly, at the end of the market crash, not every company will start recovering the same way. Still, some companies might have what it takes to restart their journey with the same vigour and momentum they had before the crash.
A futuristic company
Hamilton Thorne (TSXV:HTL) is a small U.S.-based company trading on the Canadian venture capital market. It has a market cap of just $127.4 million and a name to rival most science fiction movies, villains.
It’s basically a precision laser product company with a well-diversified clientele in the medical imaging and research businesses. It targets future-oriented markets such as stem cell research.
The company has some very impressive names in its customer portfolio—prestigious institutions like MIT, Harvard, Oxford, and medical companies like Pfizer, Merck, and Novartis. As an investment, the company presents an amazing capital growth opportunity.
It rewarded its investors with amazing returns of 170% in the past five years. The company is suffering the onslaught of the pandemic. And with a 25% discount, it is available at only $1 per share at writing.
An old gold company
Agnico Eagle (TSX:AEM)(NYSE:AEM) has been around for over six decades. The company operates mines in three countries: the U.S., Finland and Mexico, and is still looking for gold in the U.S. and Sweden. The company has a no-forward gold sales policy, allowing them to be completely transparent with the investors. The company has been paying dividends since 1983.
Currently, the market price of the company has been slashed by a full quarter, and it’s trading at $59 per share at writing. But if we look at the company’s history, the chances of it getting back up and upwards are fairly high.
If you invest in Agnico, you’ll stand a decent chance of experiencing capital growth. As for dividends, the current yield is just 1.9%. But the 150% dividend growth in the past five years looks promising.
A waste management company
This almost $20 billion market-cap company is built around the collection, transportation, processing, and recycling of solid waste.
Before the crash, the company experienced an almost 150% growth in its market value in the past five years. Even with the current 22% slash in the share price, it still offers a 15% five-year CAGR.
The company’s business model is also built around something that will always be needed, especially if the company improves its recycling capabilities.
While companies with a lot of growth potential have witnessed unprecedented drops in the share prices, it doesn’t mean that the situation will stay that way for a long time.
These companies fell with the broad market, and when that gets back up, which it eventually will, these companies can rocket high from their bottom positions now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends HAMILTON THORNE LTD.