The best time to invest in a company is when it is still considered small. Now, what is considered an actual small-sized company depends on who you ask. Some say a company is small as long as it has a market cap of less than $10 billion, or less than 500 employees, or even before it gets listed on the stock market. All of the examples that you find below are valued at less than $100 a share, with some of them still costing only pennies. Regardless of how much you have to invest right now, you will find some of the companies below to fit into your budget nicely. Here are 10 small-sized companies that are still worth the investment this year.
What to Know Before You Start Buying Stocks
There are a lot of stocks that are expected to move and make huge gains in the coming year. If you choose one of them, then there is no limit to the amount of profit you could bring home. On the other hand, investing in anything is never a sure thing. You could make money, but you could also lose part of or all of your investment. When researching how to buy stocks, always trust Wealthsimple. With the tools that you need to make your own plays or invest on autopilot, Wealthsimple allows you to customise your investment experience. Invest in stocks as a Canadian resident the smart, simple, and secure way.
- Oragenics (OGEN)
There are literally dozens of companies that are working on variations of COVID-related tests, vaccines, and PPE that are expected to rise in value this year. In addition to the well-known options like Johnson & Johnson and Pfizer, there are also companies such as Oragenics with big news waiting in the wings. Oragenics has been toiling away on a coronavirus vaccine, and a recently issued letter to stockholders outlines how close the company feels it is to FDA approval. The reason that this is especially good news is because the general public is highly interested in having COVID-19 vaccine options. The next two or three companies that are successfully able to get a vaccine approved will likely end up getting orders for hundreds of millions of doses. Stock up on shares of Oragenics if you want the chance to ride one of the few remaining COVID-19 stocks that haven’t yet run up.
- Electrameccanica Vehicles (SOLO)
Developing automated, fully self-driving vehicles that run on renewable energy has been the main focus of most major car manufacturers. With Tesla being one of the youngest but most successful sustainable car companies out there, investors know that there is still a lot of room for competition. Enter Electrameccanica Vehicles, the Vancouver based car company that was established in 2015. With new vehicles selling at less than $20,000 fresh off the assembly line, Electrameccanica Vehicles has a very good chance of capturing a large portion of the environmentally-friendly automobile market. For anyone who wants to save on gas but they’re not even close to affording a Tesla, SOLO gives car shoppers and investors alike a realistic option.
- Viper Networks (VIPER)
As the world braces for yet another population expansion, the need for renewable energy continues to grow. Viper Networks is a renewable energy-based company that focuses on providing solutions in urban landscapes. From parking lot lights to lighting for arenas, Viper Networks has been working on finalising contracts with some of the most heavily populated cities in the world. This stock is still very undervalued, so you can potentially buy thousands of shares without depleting all of your savings. Choose Viper Networks as a company you invest into in 2021 if you are hoping to end the year on a high note.
- ToughBuilt (TBLT)
You’ve probably heard of ToughBuilt before, especially if you have any experience in the construction industry. Specialising in power tools, ToughBuilt is heavily sold in the North American markets at home improvement stores and via direct order. The reason why this stock is heavily bet on to go up in 2021? Well, think about what everyone has been doing during the pandemic. Most people have been sitting at home, just looking for something to do. As a result, many long-neglected DIY and home improvement projects have been completed. People are redecorating their homes, expanding their gardens, and learning to work with power tools for the first time. ToughBuilt is going to prove to be a very tough stock to top.
- Castor Maritime (CTRM)
Even though companies like Amazon have largely gotten their act together as far as making timely deliveries go, we cannot forget the time when it seemed like the earth stood still. Packages were delayed because the global transportation pipeline froze when the COVID-19 pandemic first hit. The problem was with the transport of shipping containers to and from ports. Believe it or not, global shipping companies such as Castor Maritime still move a lot of freight. When air travel slowed down, freighters picked up the dead weight. More and more people are ordering online rather than in person, so companies such as Castor Maritime are expected to make major gains in the next year.
- Funko (FNKO)
Creating collectible figurines, Funko creations have been compared to Beanie Babies. Do you remember that craze that took place over 20 years ago? People from all over the world were going absolutely crazy for tiny, limited edition stuffed animals, and they were paying a lot of money for any mint condition items they could find. Well, it looks like another Beanie Baby-esque craze is starting to heat up, only the company that makes them is now traded on the stock market. Funko is popular with anime fans, horror lovers, and other purveyors of popular culture icons, so you can expect this stock to continue to go up shortly.
- Plug Power (PLUG)
When a consumer who is interested in environmentally-friendly vehicles looks at buying a new car, they no longer have to settle for just one option. They can go with an electrical vehicle that can be recharged, or they can opt for a hybrid. Plug Power develops batteries that are frequently found in newer technologies. Relying on hydrogen fuel cell technology, these batteries are more dependable than standard varieties, and when production is eventually scaled up, they will be more affordable. Fuel Cell is currently in talks with multiple car manufacturers to become the sole provider of the batteries that they use in cars. This is a huge deal and might lead to Plug Power becoming one of the top contenders in stock market.
- Gran Tierra Energy (GTE)
Although renewable energy is growing fast, oil and gas exploration still makes up a large portion of the movers and shakers on the stock market. Gran Tierra Energy operates in Ecuador, and is present on the stock exchanges in multiple companies. In short, this low-cost stock has the potential to make big gains. Buy in now if you are looking for a good investment.
- NIO, Inc. (NIO)
There is a big reason why the world’s leading car manufacturers have a big interest in the Chinese market. With a country of approximately two billion residents, there are many more potential customers available in China than most global territories combined. The main entry to barrier is that Chinese automotive buyers are almost exclusively interested in compact vehicles. Cars that can be driven with ease in cramped cities with good gas mileage are more heavily sold in China than anywhere else. This is why NIO, Inc. has been predicted to become the third largest car manufacturer in the world. Although you may not be familiar with NIO yet, you might as well buy some of their stock before they become a household name.
- Exxe Group, Inc. (AXXA)
It may now be a buyer’s market, and the stock market overall is looking pretty strong, but the reality is that there is a pandemic going on. Buying habits have shifted, perhaps forever, and companies that are making profits hand over fist at present might soon need a government bailout. Exxe Group, Inc., is a company that is heavily volved in private equity, financial technology, and real estate. Because they spread out their focus into multiple sectors, they have experienced great success year over year. With their stock still valued at less than a dollar, it is still possible to buy-in at a great price and ride the wave. There has been a lot of buzz growing about Exxe Group, Inc. in the news, so this is definitely a stock that is worth the investment this year.
No matter how much you may have heard about a company’s promising financials, you need to explore for yourself and make investments only after you have done your due diligence. Simply put, you simply cannot make an investment based on speculation. Know that you are making smart investments that are likely to grow because you have looked at the financials for yourself and see a path towards continued profitability. So, invest wisely and look only for companies that will be worth the investment this next calendar year.