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Tuesday, May 24, 2022

5 Editor’s Stock Picks for 2021

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The markets are having a wild start to 2021, and with through all the madness I sifted and compiled 4 stocks and a bonus choice for investors looking to make gains this year.

Disclaimer: The stocks listed below are not financial advice. This is still an opinion from the writer. You are advised to do your own research, and only invest what you are willing to risk.

Nano Dimension ($NNDM)

Nano DImension; NNDM This 3D Printing company remove the need for massive factories that can build micro components and they’re unique in their niche. The most popular development, the Dragonfly LDM, is a one of a kind 3D printer of electric circuitry. It’s dubbed as “A Whole Factory inside a Box”.

Nano Dimension, currently valued at $1.13 Billion as market cap, was able to raised $250 million in registered direct offering, which gives the company more working capital.

The Q3 earnings eported revenue of $438,000 with cash and deposits balance of $45,720,000 and a net loss of $20,716,000. This is why securing $250m is a big deal for NNDM. The company was expected to be lower than where they are, but they managed to keep revenues at a satisfactory level. Should revenue increase among the economically stressed environment, then we can expect a price increase, respectfully.

This company has also grasped the attention of other institutional investors. Cathie Wood is one of them. The CIO of the Ark Fund, had an exciting 2020 with more than 170% returns, and both the ARK.W and ARK.Q fund have loaded up on this stock.

Ms Wood is eying returns of around 20% or more over the next few years, and with such a successful 2020, you can bet she’s only eying companies with potential for exponential growth even amidst pandemic conditions.

That being said we need to see something happen relatively soon before we see that kind of growth.

NIO 株 ($NIO)

NIO stock; EV, Electric CarArguably one of the hottest stocks to own in 2020, NIO is is taking on this new decade as China’s very own TESLA. The EV car manufacturer is more than your standard car company, they have replaceable batteries, something unheard of in this space.

Around the corner NIO has the highly anticipated NIO day on January 9th which will included a showcase of the companies latest developments, and their latest Sedan model.

According to Reuters, China just announced they would cut EV subsidies down 10%, which is already bad news for the EV investor. How this will affect NIO stock price over the course of the quarter will really depend on how many cars are sold and if the demand remains strong for EV.

However, in the long term, we should expect NIO to stabilise and give competitors a run for their money. We could see a boom in the price similar to what Telsa did.

Now, if you want more exposure to the EV market you can alternatively buy into the Global X Lithium & Battery Tech ETF ($LIT). This way investors take less risk as you’re investing in a basket of energy stocks.

Barrick Gold Corporation ($GOLD)

Barrick Gold CorporationGold in 2020 had one of the greatest runs its had in over a decade, the price per ounce rose over $2,000. Before correcting 10% and now sits just under $1900.

So, why does this affect gold miners and in particular Barrick Gold Corporation? Well, Barrick Gold rose to popularity mainly through the announcement by Berkshire Hathaway chairman and CEO, Warren Buffett, will buy around 20 million shares of Barrick Gold stock.

This news was controversial because Buffett is literally the last investor you would expect to ever buy anything related to gold in such a large numbers. Especially because he’s been on the record stating that Gold pretty much has no value and I quote “doesn’t do anything but sit there and look at you”.

So, why Barrick Gold why one not of the many other miners well for starters Barrick is low debt, and with the price of mining an ounce around $1,000 there’s a lot of profit in mining for the company.

Central banks demand for gold has been rising due to the uncertain economic conditions furthered by the pandemic. Along with excessive printing, this is increasing the price per ounce.

In my opinion we still have another run coming for both Barrick and Gold. Another thing to note as well, Barrick Gold over the past 5 years is up over 200% which is very good, however, take a step back and you’ll find the stock is actually down nearly 60% off its all time high. And Buffet is known for buying when companies are at a discount, so if you consider the stock undervalued compared to its all-time high, then buying Barrick is like shopping on Black Friday.

GW Pharmaceuticals ($GWPH)

GW PharmaceuticalsI didn’t just choose the stock because it British, although it’s a little bonus, but GW Pharmaceutical is next up on our list. They’re known for their sclerosis treatment product nabiximols, which is the first natural cannabis plant to gain approval in any country. This company adds a little bit of two worlds, Big Pharma and Cannabis. The cannabis side provides a big catalysts because now GW could have more reach to the US market should barriers be knocked down in government.

Over 2020 GW Pharma had a relatively rocky year, obviously there was the covid crash which shot the stock down 32% but after we saw a bull run which most of the market experienced pushing the stock well above its pre-pandemic highs.

Now since then, GW was in decline due to a few reasons, one mainly from the August 2020 earnings report which didn’t have investors happy. The company only received one FDA approval for their drug Epidolex, used in treating severe forms of childhood epilepsy.

However, losses by the second quarter (aka the pandemic crash) cut down projected sales. Another factor that did damage was the inevitable election which luckily for GW and all of the marijuana industry was a democratic president-elect. From then on the stock shot up more than 50%, and has corrected.

I’m saying this stock is primed for a long term gain especially with the momentum in Biotech. They’re unique in comparison and at the current levels they’re at a discount compared to their all time high of $196, where as right now the price is around $115. So definitely want to keep this sleeper on your list.

Polkadot (DOT)

Polkadot; Crypto, CryptocurrencyThis last stock isn’t even a stock I’ll just say that. Its a cryptocurrency. And No its not bitcoin, even though that’s a no brainer, you should be investing in bitcoin regardless, yes even at these levels. This crypto is called Polkadot.

Known to some as the Ethereum disruptor, Polkadot was founded by Gavin Wood, who was one of the cofounders and CTO of Ethereum. Now this isn’t the first time we’ve seen members of the Ethereum project branch out and set up their own blockchain. We’ve seen this in Cardano (ADA) which was founded by Charles Hoskinson, and is known for is scalability and tackling a lot of the issues other cryptos have.

The blockchain has a multi-chain within the framework that can allow for more transactions per block. It remove the need for trust in society for the blockchain. So they created a skeleton that can allow for people to create new blockchains from it. Think of it almost as a Shopify but for blockchain technology…that is very impressive. You don’t need to know much about how to create an entire blockchain from scratch, but you can know just enough to know how get a job done.

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