December 31, 2019
Top Picks 2020 Recap
2019 is set to close with one more trading day, opening up predictions for 2020. For 2020, I’m taking a more conservative outlook as the market is near all time highs. Here are a few companies I think may perform well in 2020.
New Flyer Industries – Currently priced at $26.78, I think New Flyer Industries could climb back to $35+ in 2020 as demand for electric vehicle transportation increases. The company manufactures and services electric buses for public transportation. It also pays an attract dividend yielding 6.28%.
BCE Preferred Shares – I continue to enjoy 6%+ yield from preferred shares which I believe stand to benefit given a correction in the market. Bonds aren’t attractive for investors and preferred shares still offer a reasonable safety to park cash.
Nutrien – The largest fertilizer producer by capacity, a merger between Potash Corporation and Agrium, should perform well in 2020. The company has an attract dividend and could see increased sales as inventories from previous years are depleted. Nutrien can also benefit from consumer diet changes to plant based meats as nutrients are used to grow these products. With the current price at $61.87, my prediction is for 15-20% upside within the first quarter 2020.
Highliner Foods – This is a company which I have recommended previously which hasn’t performed well over the past few years. Currently trading at $8.20, I believe the company may have been a tax loss selling candidate for some investors. However, the company trades at a low valuation and has made progress rebranding, focusing on higher margin products, and paying down debt. At current prices the company could become a take out target as the company generates over $1 billion in revenue each year and has a market cap of only $275 million.
Blink Charging Company – As the electric vehicle market continues to grow, Blink Charging Company stands to benefit. Large auto manufactures are trying to push fuel efficient and electric vehicle alternatives out on the market. Blink Charging currently trades at $1.95 and has a market cap of $51 million. I’m not a fan of the current valuation but do believe the valuation could be justified if the company can generate meaningful partnerships with large auto makers. This is a speculative play which carries a high degree of risk.
Flyht Aerospace Solutions Ltd – Another company which I have previously recommended with an initial sell target of $4.00, the company currently trades at $1.35. The market for real time flight recording continues to grow as governments and regulators push for increased public flight safety. Market performance has been disappointing to investors as revenue has been flat between 2016-2017-2018. The company has a market cap of 36M and carries a high degree of risk.