When you look through some of the best “post-pandemic” returns, the regret of not buying the right securities during the market crash becomes quite strong. But just because you missed the boat during the 2020 crash doesn’t mean you can’t take advantage of the growth some of these stocks have to offer.
Some might still go up, so you can at least enjoy part of the overall return potential.
A fibre optic company
Opsens (TSX:OPS) has been around since 2003. The company focuses on fibre optic sensing technologies and caters to a variety of industries, though healthcare is the company’s primary market. Its Fractional Flow Reserve, or FFR, sensors (fibre optic based) have been making up the bulk of the revenue since 2016, though the company is expanding the range of its other medical solutions as well.
After the 2020 crash, the stock started growing at a powerful pace and hit its peak in November. The stock returned over 580% to its investors in that time frame. But it’s not the only time the company has offered such phenomenal returns to its investors. Its growth between 2013 and 2016 went beyond 700%.
A lithium company
The craze and demand for batteries, thanks to the invigoration in the renewables and the EV market, has pushed the value of Lithium through the roof in the last few years. This is reflected in Lithium stocks like Sigma Lithium (TSXV:SGML), which has grown about 622% from its lowest point during the market crash.
If you had invested in the company at that time, it would have grown your capital six times by now. The stock showed a similar spike between 2013 and 2014 and grew more than 600% in that instant as well. While the stock has started to dip with the broader market, it might still climb before coming down for good. And if you want to take advantage of this growth, buy now to benefit from the current 12.5% discount from the peak.
A chemical and manufacturing company
AirBoss Of America (TSX:BOS) reached its all-time high price point in 2021. The company grew over 790% between the lowest point in 2020 and the highest price point in 2021, and it’s still trading at a price that’s 322% higher than its pre-pandemic peak. The valuation, which should have followed the price up, is at a very modest level right now.
The company is an industry leader in proprietary rubber-based products, and through its three companies, it caters to three different markets. Its rubber solutions company deals with rubber-based products, the Defense group creates survival/protection gear, and the engineered product division offers a wide variety of solutions/products to a range of industries.
The ideal time to buy a spike is at the climb. Buying at the top is a recipe for disaster, but since you can’t predict the top with great certainty, or at least till a pattern is set, that’s the risk you will have to take for climbing on the growth that might still be underway.
Another good time to buy is when the stocks go through a correction, fall down to their usual depths, and are ready for a new spike (whenever it might come). Buying them in your TFSA and forgetting about them might help you take full advantage of the next spike.