Business
TSX Stocks That Could Be Worth $50K in 5 Years
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The S&P/TSX Composite Index was still in the middle of its recovery back in April. At the time, I’d suggested that investors should target stocks that could put together a great performance over the course of a decade. I’d pointed to equities like Kirkland Lake Gold, which had achieved a 10-year total return of over 6,500% in the 2010s. Today, I want to look at three TSX stocks that have the potential to churn out huge capital growth for Canadians.
This TSX stock has surged during the COVID-19 pandemic
In this hypothetical, we will be playing with $5,000 to invest in three separate stocks. The first stock I want to look at has performed extremely well during the COVID-19 crisis. VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) provides in-home durable medical equipment and healthcare solutions to its client base.
It has focused on in-home ventilators to aid patients with chronic respiratory illnesses. COVID-19 has proven to be a dangerous and highly contagious virus that can wreak havoc on the respiratory system. Because of this, VieMed’s products have seen increased demand.
This TSX stock sank to a 52-week low of $3.36 during the market crash in the middle of March. A $1,500 investment in VieMed would be worth nearly $6,000 as of close on August 12. VieMed’s products and services were already on a promising trajectory before the COVID-19 outbreak. This is a TSX stock that can make fortunes over the next decade.
One healthcare stock that has soared in 2020
WELL Health Technologies (TSX:WELL) owns and operates a portfolio of primary healthcare facilities. Investors should look to target TSX stocks in the healthcare space. This sector was already primed for big growth over the course of this decade. The COVID-19 pandemic has only intensified investor interest.
Shares of WELL Health have climbed 183% in 2020 as of close on August 12. Telehealth services, which involve over-the-phone consultations with physicians and other healthcare professionals, have erupted during the COVID-19 pandemic. WELL achieved record quarterly patient services revenue in Q2 2020 on the back of growth in Telehealth. Its Telehealth visits grew 730% to more than 124,800 visits in the second quarter.
This TSX stock fell to a 52-week low of $1.13 during the market crash in the late winter. An $1,800 investment in WELL Health at this low would be worth just over $7,000 at the time of this writing. Already, our hypothetical $3,300 investment has churned out nearly $10,000 in total returns in less than half a year.
The TSX stock that has burst onto the scene
Andlauer Healthcare (TSX:AND) made its debut on the TSX index in December 2019. This supply chain management company provides a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector in Canada. Its stock has climbed 86% so far this year.
In Q2 2020, the company reported EBITDA growth of 1.2% to $18 million. Its year-to-date performance has outpaced the previous year, even in the face of the COVID-19 pandemic. Andlauer’s 52-week low still stands at its starting market price of $18 per share. A $1,700 investment in this TSX stock at this price point would be worth over $3,500 as of close on August 12.
Bottom line
To conclude, a $5,000 investment spread across these three stocks at their 52-week low would have netted investors over $11,500 in profit in a few short months.
While we are searching for top TSX stocks to snag…
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!
Source:- The Motley Fool Canada
Business
Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com
Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.
The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.
Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.
Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.
Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.
The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.
Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.
By Charles Kennedy for Oilprice.com
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Business
Why the Bank of Canada decided to hold interest rates in April – Financial Post
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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”
“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”
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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.
Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.
“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”
In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.
Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.
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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.
The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.
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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.
“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”
• Email: bshecter@nationalpost.com
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Business
Meta shares sink after it reveals spending plans – BBC.com
Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.
The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).
Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.
Meta has been updating its ad-buying products with AI tools to boost earnings growth.
It has also been introducing more AI features on its social media platforms such as chat assistants.
The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.
Its shares fell despite it beating expectations on its earnings.
First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.
She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.
More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.
She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.
Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.
President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.
Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.
Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.
And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.
Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.
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