No matter how exciting they seem, spikes are difficult to plan for. They can help you grow your capital several times over, even 10 times over if you can buy and sell at exactly the right time. But stocks that are capable of such spikes (in the right market conditions) might often slip through investors’ radars, since they are typically not consistent growers. But you can still keep tracking them and buy as soon as you spot an upward momentum building.
There are three stocks that should be on your list of prospects for assets that can grow your capital 10 times.
A uranium stock Global Atomic (TSX:GLO) has already proven itself capable of growing investor capital by more than 10 times. If you had bought into the company in early 2020 (by February) or before, when it traded below $0.35 a share, you would now be sitting at 1,100% growth. The growth would have been even more impressive if you had bought the company during a market crash. Your stake would be up 1,400% by now.
This is the kind of company you might not consider buying when it has supposedly hit its new peak and might go down for normalization as uranium demand slumps. But the stock and most other nuclear stocks worldwide are experiencing a similar spike, so the pattern is easy to follow. If there is still a potential for growth, you can buy now and see your capital rise a bit. But for 10 times growth, you may consider waiting for stock to hit rock bottom, buy, and forget.
A blockchain stock Not unlike the uranium stocks, Bitcoin stocks like HIVE Blockchain Technologies (TSXV:HIVE) have proven themselves capable of growing investors’ capital more than 10 times, twice actually, in the last five years. Once when it spiked in November 2017 and grew by over 4,000%, and another time it grew between 1,400% and 6,000% (depending on when you bought it).
As a blockchain company, the stock follows the movement of Bitcoin, albeit with a slight delay. And for 10 times growth, the best time for you to buy would be around when Bitcoin falls down new depths, ideally into a four-digit valuation. The stock would follow, and you can buy and hold for the eventual spike when Bitcoin rises again.
An artificial intelligence stock FOBI AI (TSXV:FOBI) offers businesses data-driven AI and connectivity solutions. The premise is that it helps a business combine and monitor all the data flowing out from or into the company. This helps a business make informed decisions and can also trigger enhanced consumer loyalty. It offers a range of services and caters to three major industries, including retail.
The stock has already risen once, over 2,000% from its pre-pandemic valuation to its 2021 peak. It has come down a long way from its peak but still not enough to give your capital a 10-fold jump in the next growth phase. But unlike the other two stocks on this list, FOBI can grow its market value by 10 times or even more organically. That’s because AI’s business uses are still nascent, and a mainstream demand can give the company an unprecedented boost.
Foolish takeaway Two out of the three stocks capable of growing your capital by about 10 times are tech stocks. That doesn’t mean you can’t look elsewhere for this kind of growth. With the right circumstances, many stocks can exhibit this kind of growth, like small energy stocks are doing right now. So, it’s a good idea to keep an eye on companies that can offer explosive growth once those circumstances are triggered.
The post 3 TSX Stocks With 10X Potential appeared first on The Motley Fool Canada.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
This Article Was First Published on The Motley Fool
