Canadians with only $1,000 in funds can use it as seed capital to invest in high-growth stocks. Moreover, if you don’t need the money anytime soon, hold the stock for the long term and allow it to compound. If you’re ready to invest, consider WELL Health Technologies (TSX: WELL) and Capstone Mining (TSX: CS). Both are excellent long-term holds as the respective businesses possess elements of growth and values.
Organic growth prospects
The future of electronic medical records (EMR) is bright. Digital technologies have taken centre stage since the coronavirus outbreak. Besides owning and operating a portfolio of primary healthcare facilities, WELL Health provides digital EMR software and telehealth services.
Because of COVID-19, healthcare systems face numerous challenges. Digital solutions have become extremely valuable in the new normal. Likewise, medical practitioners will inevitably digitize. The use of AI and Internet-of-Things (IoT) would be prevalent.
WELL Health trades at $8.03 per share, and its market capitalization stands at $1.57 billion. About 2,200 medical clinics across Canada avail of their digital EMR software and services. The company recently acquired MyHealth Partners, a leading specialty care, telehealth services, and accredited diagnostic health service.
The combination with a Canadian healthcare powerhouse bumps up the number of clinics to 74. WELL Health is now the country’s largest and most capable non-governmental owner-operator of outpatient medical clinics. According to its chairman and CEO, Hamed Shahbazi, acquiring MyHealth cements WELL’s position as a foundational leader in the Canadian healthcare marketplace.
MyHealth brings so much more to the table, including an extensive practitioner and referral network, a telehealth-first approach, and tech-enabled operations. Furthermore, the acquisition should result in significant financial resilience and accretion.
In Q1 2021 (quarter ended March 31, 2021), WELL Health reported a record revenue of $25.6 million versus Q1 2020. Despite the net loss of $7 billion, profitability is on the horizon given the organic growth prospects in all operating business units.
High-return projects
Capstone Mining is a smart pick today, given the boom in precious metals, particularly copper. The mining stock trades at $5.39 per share and is up 126.47% year to date. Its trailing one-year price return is 618.67%. Market analysts recommend a buy rating and forecast the stock to climb 42.9% to $7.70 in the next 12 months.
The $2.21 billion company explores for iron, lead, silver, zinc, gold deposits, and copper. It holds interests in the Pinto Valley, an underground copper-silver mine in Mexico, and an open-pit copper mine in Arizona. In Chile, Capstone has a 70% stake in the copper-iron-gold Santo Domingo development project.
Management reported a record operating cash flow of $95 million in Q1 2021 (quarter ended March 31, 2021). It was the strongest ever in Capstone’s 15-year history as a producer. Apart from the better-than-expected operating performance and cost containment in a higher copper price environment, the company is now debt-free.
Darren Pylot, Capstone’s president and CEO, said, “We are now debt-free and generating cash flow as a mid-cap company with a peer-leading 100% growth plan over the next three years.” The robust balance sheet position and strong operating cash flow generation will enable Capstone to advance multiple high-return projects.
Long growth runways
A $500 investment each in WELL Health and Capstone Mining today could grow 10-fold over time. Both companies have long growth runways ahead.
