If you were to believe billionaires, investment experts, and analysts predicting that another market crash is coming, prepare to buy. You can purchase the best stocks with a meagre $700 in capital. Two recommended stocks should deliver massive gains and steady income stream in case the TSX tumbles anew.
Keep a close watch on BlackBerry (TSX: BB)(NYSE: BB) and Rogers Sugar (TSX: RSI). The low prices today might slide some more in a declining market. However, both will recover eventually and bring handsome returns to frugal investors.
Next tech superstar
BlackBerry is a top value pick given the increasing demand for security software and services. Various enterprises, organizations, and companies across all industries will need heightened security to deter cybercriminals.
This $3.62 billion tech firm from Waterloo, Canada, offers a slew of software products and services in cybersecurity, endpoint security management, safety, and data privacy. For now, BlackBerry is capturing and cementing its foothold in the automotive industry. The latest customers are South Korean automakers.
BlackBerry will partner with StradVision, a leading AI-based camera perception technology company. The next-generation Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles (AV) in South Korea will utilize BlackBerry’s QNX Software Development Platform.
Incidentally, Prem Watsa, Fairfax Financial’s big boss and the Warren Buffett of Canada, increased Fairfax’s stake in BlackBerry by 118% in early September 2020. Meanwhile, analysts forecast the tech stock to climb 114.72% to $14 in the next 12 months. Thus, at $6.52 per share, you’re picking a value stock.
Money sweetener
Rogers Sugar is, no doubt, a terrific buy at $4.79 per share. For an incredibly low price, the consumer staple stock pays a mouth-watering 7.55% dividend. Sugar is a low-growth business, although it’s stable and enduring.
In the first three quarters of 2020, or for the nine months ended June 27, 2020, the company posted revenue growth of 4.75% ($586.7 million to $614.6 million) versus the same period in 2019. Net earnings, however, fell 29.5% to $22.4 million.
As we advance, the market conditions should be favourable for the sugar business amid the COVID-19 pandemic. Management expects the plants to operate without disruptions fully. The volume in the sugar segment will exceed the fiscal 2019’s volume, including adjusted EBITDA.
Although the company is not in a position to estimate the pandemic’s impact, it expects to end fiscal 2020 with about 15,000 metric tonnes higher than the previous fiscal year. Likewise, export volumes should be 7,000 metric tonnes more than last year. Rogers Sugar anticipates strong consumer demand, but not from the food service industrial segment.
Fear factor
The fear of a market crash stems from the full impact of the pandemic. Some of Canada’s COVID-19 Response Plan programs will end soon and should bring about economic pain. The deficit is on track to hit unprecedented levels due to the costly stimulus packages.
If the predictions come true, the combination of BlackBerry and Rogers Sugar is perfect. One is a growth stock, while the other is a pure dividend play. The chances of a capital gain are high in the tech stock, and the consumer staple stock should deliver a steady income stream.
