The TSX is going through another small bullish-bearish cycle. The market panicked, probably because of the new variant, but it didn’t last long enough to trigger a crash. But even these small dips can be useful if you want to add companies that are on your radar at a slightly discounted rate than they usually trade on.
However, they rarely help you find true hidden gems — stocks that might seem stagnant or dead weight for now but can explode under the right circumstances.
An advanced business solutions company
Calian’s (TSX: CGY) potential is a little difficult to understand and account for. The company did raise quite a bit after the pandemic, but so did the rest of the market. The protracted 90% growth run (Dec. 2016 to Feb. 2020) preceding the 99% post-pandemic spike, however, makes it a stock worth considering.
Now wouldn’t be a great time to buy the stock, since it’s currently quite overvalued. And you might have to wait a while before the stock is back on the right track because, akin to its pre-pandemic growth, its downward movement is also quite slow.
Calian offers a wide range of solutions: tech, health, learning, and IT. The first two bring in most of the revenue. And it caters to a variety of industries. The diversity of solutions and industries gives Calian a financial sustainability edge.
A space technology company
While not a financial “black hole” anymore, space is not paying off for governments and businesses currently actively investing in it to its full potential. But the chances are that it might, and when it does, space tech companies like Maxar (TSX: MAXR)(NYSE: MAXR) will start to look very promising. This U.S.-based, $2.1 billion market cap company is currently trading at a fraction of its 2015 peak.
The growth so far has been cyclical, so if you buy low, you can be reasonably sure of modest growth in the next few years. But if you hold on to the company long term and wait for the space race to accelerate, especially in the corporate sector, you might see the company reaching new heights. The company has been diversifying its clientele for a while now and catering to a broader target market than just the space companies.
An electric bus manufacturer
The world is more serious about going green than ever, but it still hasn’t picked up the pace that might let it achieve net-zero by 2050. But an acceleration in the adoption of green technologies and business practices will most likely pick up the pace and push the financials and the stock of companies like GreenPower Motor (TSXV: GPV)(NASDAQ: GP) through the roof.
The company has a range of robust electric vehicles that can be used for mass transit and cargo. The EV Star passenger transport line is tried and tested and has a decent adoption rate. But what the company might really get a boost from would be its student transportation taking off. If its electric student bus, called the BEAST, gets mainstream attention and multiple public bodies start placing large orders, the company’s stock might really take off.
Foolish takeaway
Whether you are a seasoned retail investor or just starting to invest, It’s a good idea to classify the prospective securities you are tracking that you wish to buy under the right circumstances, based on the sector/industry-wide dynamics that might set them off. This way, if you just stay informed via news, you might be able to pick up patterns that might trigger a powerful bull run in a specific industry before it starts manifesting in the stocks you are tracking.
