People with limited funds shouldn’t feel embarrassed when it comes to investing in stocks. There are wallet-friendly options on the TSX that that can deliver superior returns. The investment amount is relative, so whether your capital is $1,000 or $100,000, the percentage return is the same.
If you can only afford to invest $100, you can split the money between Tamarack Valley Energy (TSX:TVE) and OrganiGram Holdings (TSX:OGI)(NASDAQ:OGI). Based on analysts’ forecasts, the upside potential could be as much as 87%. Thus, the total windfall in one year is better than spending the cash or keeping it idle.
A niche player in light oil
The energy sector (+36.58%) is the top performer among the TSX’s 11 primary sectors thus far in 2021. Nearly all constituents are outperforming, including Tamarack Valley Energy. As of May 21, 2021, the share price is $2.51, or a 97.64% year-to-date gain. Analysts covering the energy stock see a potential upside of 69% to $4.25.
Tamarack’s asset portfolio focuses on light oil plays in Alberta and Saskatchewan. This $757.38 million oil and gas company targets repeatable and relatively predictable plays that provide long-life reserves. Besides being a low-cost producer, Tamarack’s robust hedging program protects the business against commodity price volatility.
Its competitive advantage is that it can achieve sustainable growth under low commodity price scenarios. Management has assembled an extensive low-risk drilling inventory that offers paybacks of less than 1.5 years. Tamarack’s ongoing concern is to enhance its existing low-cost core areas through tuck-in acquisitions.
Analysts are bullish and recommend a strong buy rating following Tamarack’s recent strategic acquisitions, including approximately 38,400 net acres in the Clearwater oil play of Alberta. In 2021, the company expects average production to increase 27% to 33,000 barrels of oil equivalent per day (boe/d). Its free adjusted funds flow should range between $290 and $295 million.
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Exciting growth stock
OrganiGram is an exciting growth stock that could reward investors with massive gains. Analysts predict the current share price of $3.29 to climb 86.9% to $6.15 in 12 months. The weed stock’s trailing one-year price return is 53.02%.
Regarding the market cap, the size of this cannabis company pales compared to the top industry players. However, it’s one of the top picks in the space, especially among Robinhood investors. While this $981.18 million cannabis company has yet to expand operations outside Canada, it’s a significant player in the country’s adult-use market.
OrganiGram should cement its position in the Cannabis 2.0 market following the acquisition of The Edibles and Infusions Corporation. Apart from producing and selling cannabis and cannabis-derived products, OrganiGram engages in the wholesale shipping of cannabis plant cuttings and other products or adult-use recreational cannabis.
Lastly, British American Tobacco, a US$91.2 billion tobacco producer from London, owns 20% of the Moncton-based cannabis firm. The partnership should open new opportunities for OrganiGram as the sector becomes red hot in the near term.
Grow a money tree
Investing is all about letting money your work regardless of amount. Canadians can begin their investing activities with $100. With the right investment choices and superior returns, the capital should compound over time. Once it does, you can accumulate more shares to grow a money tree. The important thing is to think about investing, not spending.
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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends OrganiGram Holdings. The Motley Fool recommends OrganiGram Holdings.