Reddit investors are back for another feast. The feast disappeared more quickly than it appeared — like a mirage or a flash mob. In fact, it seems to be over already. From May 17 to the 31, 2021, AMC stock was driven from a stock price of US$12 to US$62 for a five-bagger! In the same period, BlackBerry stock was driven from $10.30 to $18.25 per share for a 77% price gain.
As of writing, AMC and BB stocks have declined +28% and +9% on the day.
The problem is, you’ve got to be on the right side of the tide and perform perfect market timing. And all the while, you’re wide awake knowing that they’re speculative trades, gambling. When you buy, you’re counting on the next guy paying a higher price.
Analysts estimate AMC and BB stocks’ intrinsic values to be US$5.11 and US$8.90, respectively. It means the stocks could be 780% and 61% overvalued. Value investors would stay away from these speculative stocks, which have no margin of safety in sight!
If you want to gamble your money, you might as well put the odds in your favour. Here are five Canadian stocks that have delivered annualized returns of about 30% in the past 10 years. A 30% return per year implies turning an initial $10,000 investment to $137,858 for a 13-bagger!
StorageVault (TSXV:SVI) owns and operates storage in the top markets in Canada. It grows through acquisitions, organic growth, expansion of its existing stores, and expansion of its portable storage and record management businesses. Specifically, it operates 220 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. It owns 180 of these locations and +4,400 portable storage units representing +9.9 million rentable square feet on +585 acres of land.
StorageVault stock generated total returns of about 33% in the past 10 years. It has increased its dividend every year since 2017. Its three-year dividend-growth rate is 1.9%, as the company allocates much of its excess capital in growing the business.
Tecsys is a global company that helps companies improve their supply chain. The growth stock has delivered total returns of about 35% in the past 10 years. It has increased its dividend every year since 2009. Its three-year dividend-growth rate is 9.8%.
Boyd Group Services is a large operator of non-franchised collision repair centres in North America. The stock has generated total returns of about 35% in the past 10 years. It has increased its dividend every year since 2008. Its three-year dividend-growth rate is 2.3%.
goeasy provides non-prime leasing and lending services. It has generated returns of roughly 33% per year in the past 10 years. It has maintained or increased its dividend every year since 2004. Its three-year dividend-growth rate is 35.7%. It offers a decent initial yield of 1.8%.
Savaria is a global company that provides accessibility solutions for the physically challenged to increase their comfort, mobility, and independence. It operates in North America, Europe, Australia, and China.
The growth stock delivered a compound annual growth rate of approximately 31% in the past 10 years. It has increased its dividend for eight consecutive years. Its three-year dividend-growth rate is 17.8%. It offers a nice initial yield of 2.5%.