With the new year here, it’s time to recap some distinguished investments that (hopefully) you were involved in last year. With that, it’s also time to talk about some opportunities that we see on the horizon.
If you made the mistake of letting a few of these pass you by in 2015, maybe this review will be enough to make you reconsider in 2016.
For the sake of brevity, I’m not going to include all the companies that just gained a meager 500%. Throughout all of 2015, I found almost 70 companies that belong on that list — too many to talk about here.
So, let’s let the numbers do the talking, and focus on the truly extraordinary firms:
If you'd bought 1000 shares of Yinfu Gold (OTC: ELRE) for 30 cents, on March 18th, you could have sold those same shares, just two days later, for $2, turning $300 into $2,000 in 48 hours.
If you'd upped your initial investment a bit, and acquired 5000 shares of Royal Energy Resources (OTC: ROYE) on January 13th for 10 cents each, you could have sold them for $5.05 by March 27 — turning $500 into $15,150.
Or if you'd been a bit more bold, and bought $1000 worth of Kirin International Holding Inc for 11 cents a share on January 18th, on October 29th you would have sold that $1,000 position for $65,454.
And if you think that's impressive, check out this one:
Power Resource Exploration Inc (OTC: PREXF) jumped 29,500% in just four months, giving a few lucky shareholders $295 back for every dollar invested.
These are just a handful of the impressive stocks I witnessed over the year. But here’s the thing:
After hitting these major opportunities, shareholders of ELRE, ROYE, and PREXF aren’t going to leave the game now, and neither should you.
Instead, let’s try to roll those profits into something more.
To do that, we need to keep an eye out for the emerging trends of 2016. Unless you’ve spent the past year under a rock, you’ve probably heard about the Cannabis Industry — 2016’s “force to be reckoned with.”
Legalization of marijuana is right on track, and most analysts expect the industry to explode to $300 billion per year once the ballot passes.
Companies like Aerogrow International Inc. (OTC: AERO), which develops and markets indoor growing systems for the consumer market, will directly benefit from laws like the one recently passed in Washington DC — allowing for the legal cultivation of the plant for personal use.
Aerogrow’s potential is directly linked to the spread of legalization. As the example set by DC and Colorado starts to spread, slowly but surely, to new states and Canadian provinces, Aerogrow's market potential grows right along with it.
Once legalization spreads (and all signs point to this happening), there is no turning back. That means that Aerogrow might just be a one-time opportunity for those investors who get in at the right time.
On the pharmaceutical side of the Cannabis industry, there are companies like Cara Therapeutics (NASDAQ: CARA), which develops strategies for pain management. This sector of the pharmaceutical industry was valued at $18.2 billion in 2012, and continues to grow.
Marijuana legalization is opening a substantial number of doors for this sector. CARA is already well-established and on the larger side of the micro-cap spectrum at $422 million market cap.
CARA shares might not leap forward 1000% in a week, but with so much attention now focused on cannabis from the biotech industry, it still has plenty of room to grow... not to mention plenty of appeal to Big Pharma companies for a takeover. All of these factors make CARA a big player in the dynamic future of medicinal cannabis.
If you like the medicinal angle but want some more upside potential, there is Growblox Sciences, Inc (OTC: GBLX).
The company produces medical-grade cannabis, cannabis concentrates, and cannabinoid therapies through the use of various technologies in plant biology, cultivation, and extraction techniques combined with biotechnology.
But trading at 25 cents, its market capitalization is only $11 million — giving it major potential with the right news.
Defense and Security Technology:
One of the more morbid trends of 2016 is the increased need to protect against militant terrorist forces. With recent events in France and elsewhere, all investors should expect to see great investment potential throughout security technology.
Aware Inc, (NASDAQ: AWRE) had an amazing year in 2014, but spent most of 2015 in decline, losing 42% from its high point in early February.
However, that makes it all the more appealing for 2016.
Trading at $3, this $69 million company is no flash in the pan. It's one of the world's leaders in the biometrics field — and stands only to expand its reach and client base moving forward.
Along the same security-minded lines is POET Technologies, Inc (PTK.V).
This $160 million company is 59% below its 52-week highs at the moment, but it's not for a lack of demand.
Its business is the development of semiconductor products for military, industrial, and commercial applications in the United States and Canada.
Given its size, and the growing demand for just this sort of technology, there may not be a more direct, or more efficient way to invest in the national security market.
Focusing directly on data-communications, another rapidly developing subset of the tech industry is FLYHT Aerospace Solutions (TSXV: FLY.V).
This company designs, develops, and services real-time data communication solutions for the commercial, business, and military aircraft operators worldwide.
In a world where timely information can often mean the difference between life and death, the market for this technology has plenty of catalyst to grow for years.
At $31 million market cap and just 19 cents per share, there is just as much upside for shareholders of this tiny tech stock.
Historically, demand for gold consistently increases during election years. That means the precious metal is poised for another upswing. Looming signs of a market correction just sweeten the deal.
In the world of penny stocks, nothing says potential like a quality gold mining explorer.
Stability is still possible even in exploratory firms, such as Kaminak Gold Corp (TSXV: KAM.V).
The decade-old firm owns more than 200 square miles of diverse, resource-rich property in the Yukon. The land has produced gold, but also copper, nickel, platinum, and more.
Financially, share prices of the $114 million company have closely paralleled the prices of gold. Shares are currently trading 31% below 52-week highs, and 24% above 52-week lows.
If KAM.V is just a tad too small for your tastes, consider Roxgold Inc. (TSXV: ROG.V). Like Kaminak, Roxgold prices are also on par with the larger gold market. However, this company is slightly larger, at $203 million. Excitingly enough, Roxgold is about to begin production stages at its West Africa location — the Yaramoko Gold Project.
If you want more upside potential, but don't like the risk of a project in a foreign land, or with climatic limitations such as those facing exploration in the extreme Canadian north, Nevada Sunrise Gold Corp (TSXV: NEV.V) is a good alternative.
Tiny at just $6 million market capitalization, this company owns its properties in Nevada.
The one common factor to consider with all three is what happens to the underlying commodity in 2016.
From all indicators, there's little chance that it will get less popular — making any of these three choices a safer bet in 2016.
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