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Got $3000? These TSX Stocks Can Triple Your Investment!

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Canadian investors who have some extra cash to spend in their portfolios right now have some decisions to make. Valuations are high on the S&P/TSX Composite Index in early August. However, there are still some very attractive long-term options to consider. Today, I want to look at three TSX stocks that could triple in value in the first half of this decade. Let’s jump in.

This top TSX stock is on the rebound

Back in the spring of 2019, I’d suggested that investors should take profits in Badger Daylighting (TSX:BAD). Shares of Badger have dropped 19% year-over-year as of close on August 7. However, this TSX stock has gained some momentum in 2020. Badger provides non-destructive excavating and related services in Canada and the United States.

The company released its second quarter 2020 results on August 5. Badger’s earnings were negatively impacted by the COVID-19 pandemic, but it still looks strong heading into the second half of the current fiscal year. In the years ahead, Badger still projects the doubling of U.S. revenue from fiscal 2019 levels over the next three to five years. It is targeting adjusted EBITDA growth of 15% over this same period.

Shares of Badger last possessed a price-to-earnings ratio of 26, which puts it in solid territory relative to industry peers.

Spin Master has surged after earnings

Spin Master (TSX:TOY) is a children’s entertainment company that creates, designs, manufactures, and markets products and entertainment products to its global client base. Its shares have dropped 31% in 2020 so far. However, the TSX stock has surged 50% in the last three months. The company released its second quarter 2020 results on August 5.

Despite the effects of the COVID-19 pandemic, Spin Master exceeded expectations in Q2 2020. Still, adjusted EBITDA dropped to $21.5 million compared to $55.1 million in the prior year. In the year-to-date period, Spin Master reported revenue of $508.4 million – down 9.2% from the first six months of 2019.

The company possesses a fantastic balance sheet and has achieved strong earnings growth in recent years. Shares are trading in the middle of its 52-week range. This TSX stock has room to run as the reopening should boost its business in the second half of 2020.

One more exciting TSX stock to snag in August

Goodfood Market is an online grocery company that delivers fresh meals and grocery products across Canada. Interest in the company has erupted since the COVID-19 pandemic shook up the retail world. I’d suggested that investors should continue to stack this TSX stock in July.

The company achieved its first quarter of net income on July 8. Its business received a big boost from the pandemic, jumpstarting a shift to e-commerce grocery shopping. However, there is still significant competition from other top grocers in Canada.

Revenue at Goodfood climbed 74% year-over-year to $86.6 million. Online grocery is a fast-growing industry. Canadians who want to get in on this emerging space should consider Goodfood right now.

On the topic of growth stocks in the summer . . .

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!


Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Spin Master. The Motley Fool recommends Goodfood Market.

Source: – The Motley Fool Canada

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Buffett-following investment trust to list in London – TheChronicleHerald.ca

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LONDON (Reuters) – An investment trust following the principles of veteran U.S. investor Warren Buffett is to list in London, the trust said on Friday.

Buffettology Smaller Companies Investment Trust intends to raise a minimum of 100 million pounds ($127.52 million) via an initial public offering on the London Stock Exchange, it said in a statement.

The trust will mainly invest in companies listed or traded in Britain, through a portfolio of 30-50 companies with market

capitalisations from 20-500 million pounds.

Sanford DeLand will be the trust’s investment manager, led by Keith Ashworth-Lord, CIO of Sanford DeLand Asset Management.

Sanford DeLand manages around 1.4 billion pounds across two open-ended funds.

“The UK small cap market offers excellent investment

opportunities to experienced managers who know what to look for and have the freedom to take a long-term view,” Ashworth-Lord said.

(Reporting by Carolyn Cohn; Editing by Rachel Armstrong)

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China expands investment scope for foreign investors under combined scheme – TheChronicleHerald.ca

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By Luoyan Liu and Meg Shen

SHANGHAI/BEIJING (Reuters) – China moved to further ease foreign access to its capital markets on Friday, officially combining two major inbound investment schemes and broadening the scope for foreign institutional investment.

The finalised rules, published by The China Securities Regulatory Commission (CSRC), the central bank and the foreign exchange regulator, combine the Qualified Foreign Institutional Investor (QFII) scheme and its yuan-denominated sibling, RQFII. The schemes channel foreign capital into Chinese stocks and bonds.

The new rules, which will take effect on Nov. 1, would also expand investment scope under the combined scheme.

The rule changes “will fundamentally relieve major bottlenecks for foreign institutional investors seeking to invest in China” said Thomas Fang, head of China Global Markets at UBS.

The regulations “have the potential to not only galvanize investor interests in China, but also broaden (the) investor base in using financial and hedging instruments in China,” Fang said.

China is accelerating reforms and the opening-up of its capital markets as part of efforts to promote global use of the yuan currency while trade and diplomatic ties with the United States remain strained.

The announcement coincides with FTSE’s decision earlier in the day to include Chinese government bonds in its flagship World Government Bond Index.

The rules also lower the threshold for overseas applicants and simplify the vetting process.

Investors will be allowed to buy securities traded on Beijing’s New Third Board and invest in private funds or conduct bond repurchase transactions.

In addition, foreign institutions will also have access to derivatives, including financial futures, commodity futures and options, according to the new rules.

“The move will encourage more medium- and long-term funds, including hedge funds and alternative investment funds, to enter the Chinese market directly,” said Fang at UBS.

The draft rules were published in January 2019.

(Additional Reporting by Samuel Shen; Editing by Alex Richardson)

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U.S. core capital goods orders beat expectations; business investment rebounding – TheChronicleHerald.ca

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By Lucia Mutikani

WASHINGTON (Reuters) – New orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated, suggesting a rebound in business spending on equipment was underway after a prolonged slump.

The upbeat report from the Commerce Department on Friday, however, did not change views that the economy’s recovery from the COVID-19 recession was slowing as government money to help businesses and tens of millions of unemployed Americans runs out. New coronavirus cases are rising in some parts of the country. That could crimp consumer spending, with retail sales already slowing.

Federal Reserve Chair Jerome Powell this week stressed the need for more fiscal stimulus, telling lawmakers on Thursday that it could make the difference between continued recovery and a much slower economic slog. Another rescue package appears unlikely before the Nov. 3 presidential election.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 1.8% last month, the Commerce Department said. Data for July was revised up to show these so-called core capital goods orders increasing 2.5% instead of 1.9% as previously estimated.

Economists polled by Reuters had forecast core capital goods orders gaining 0.5% in August.

Core capital goods orders last month were boosted by increased demand for machinery, primary metals, computers and electronic products. But orders for fabricated metal products and electrical equipment, appliances and components fell.

U.S. stocks fell. The dollar was higher against a basket of currencies. U.S. Treasury prices rose.

STRONG THIRD QUARTER EXPECTED

Shipments of core capital goods increased 1.5% last month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement. They advanced 2.8% in July. Business investment tumbled at a record 26% annualized rate in the second quarter, with spending on equipment collapsing at an all-time pace of 35.9%. Investment in equipment has contracted for five straight quarters.

Economic activity rebounded sharply over the summer as businesses reopened after mandatory closures in mid-March to slow the spread of the coronavirus. Gross domestic product is expected to rebound at as much as a record 32% annualized rate in the third quarter after tumbling at a 31.7% rate in the April-June period, the worst performance since the government started keeping records in 1947.

But fading fiscal stimulus is casting a cloud over growth prospects for the fourth quarter. Goldman Sachs on Wednesday cut its fourth-quarter GDP growth estimate to a 3% rate from a 6% pace, citing “lack of further fiscal support.”

Orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, rose 0.4% in August after jumping 11.7% in July. Durable goods orders were supported by a 0.5% rise in orders for transportation equipment, though demand for motor vehicles and defense aircraft eased.

There were no orders for civilian aircraft reported for the second straight month in August.

Boeing has struggled with cancellations as airlines grapple with sharply reduced demand for air travel because of the pandemic. The grounding of Boeing’s best-selling 737 MAX jets since March 2019 after two crashes in Indonesia and Ethiopia has also weighed on the company.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

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