2021 could be the year your life changes--for the better. And the industries that are behind it offer up some of the most rewarding potential opportunities in decades.
A global pandemic that has fed an energy transition with miracle-growth fertilizer and comprehensive lifestyle changes, coupled with unstoppable advancements in technology has set the stage for some of the most stunning, possibly even life-changing opportunities.
It’s an exciting time to be an investor--retail or accredited--with the potential opportunities to latch onto the early days of tomorrow’s giants …
The possible “Amazons” of clean energy, healthy lifestyles, and new technology.
The path for these stocks was paved before COVID-19.
The pandemic hastened their ascent.
A “blue wave” and a Biden presidency that has now overcome the challenge of a Republican-controlled Senate could boost them further.
If you’re looking for our top picks in 2021 for investor rewards from a profound, potential industry disruption, check out these 3 stocks right now:
#1 NextEra (NYSE:NEE)
In a year defined by COVID-19 upsets, renewable energy stocks have outperformed most of the stock market, riding the tailwinds of an incoming Biden administration, a change of heart on climate change that seems to be a knee-jerk reaction to pandemic-life fears, and a $900-billion stimulus package, $11 billion of which will be distributed to renewable energy efforts.
Big Oil is being replaced by Big Energy, and the biggest of the big is NextEra.
NextEra rallied over 27% in 2020 on real growth that saw it significantly boost its renewables portfolio and set itself up for a stellar New Year after rewarding investors with a dividend hike earlier in 2020 and targeting 10% dividend growth--minimum--through at least 2022. And despite COVID-19--or perhaps even because of it--NextEra kept its promises to shareholders.
Let’s face it, utilities haven’t been exciting stocks … well, ever. At least until now.
NextEra is driving this all in a new direction, though--and it’s all leading to a prime growth opportunity for investors.
NextEra owns the largest utility in Florida.
But that’s just the surface. What’s really got Wall Street buzzing is this: NextEra has built one of the biggest solar and wind power companies in the world and its growth intends to be massive.
Throughout 2020, NextEra has won over investors with exquisite numbers, and for 2021, the projection is up to 8% growth in earnings from 2021 to 2022. It’s got an impressive renewables backlog that just keeps getting bigger.
So big, in fact, that it even approached giant Duke Energy with a takeover offer, according to the Wall Street Journal. That didn’t happen in the end, but NextEra did cut a $660-million deal to acquire two companies from The Blackstone Group. It also scooped up Gulf Power from The Southern Company, further expanding in Florida. What it all tells us is this: There’s a new King of Energy in town.
Wall Street is increasingly excited about the potential scale of NextEra amid a clear and highly visible energy transition.
#2 Juva Life (CSE:JUVA; OTC:JUVAF)
U.S. states are lining up to legalize cannabis, and the United Nations has taken the industry-changing step of reclassified marijuana and striking it from its most strict drug control list … but the real transformation here could come from the pioneers in cannabis science and big data.
This is where Big Pharma might start to take an interest in science-backed cannabis because, for the first time ever, a pioneer is planning on bringing them big data …
Juva Life Inc. isn’t just a rapidly expanding, vertically integrated company and entire cannabis ecosystem …
It’s the company that plans to completely change how we view cannabis, what we know about cannabis, and how we implement it into our lifestyle.
And the biggest market of all right now is taking shape in California, whose market is projected to grow to $3.5 billion in 2021.
That’s even bigger than Canada’s market, and it’s a market that Juva plans to dominate by playing the game in an entirely different way.
This isn’t just about quantity anymore … it’s about quality. And it’s not even just about quality … it’s about precision.
And none of it means anything if Big Data isn’t there to prove it up and sell it on.
In a rapidly evolved marketplace, it’s Juva Life’s “precision cannabis” that aims to put the money-making science back into marijuana.
Part cannabis stock... part thera-tech stock... any of their 3 businesses could reward investors with front-page news in 2021.
But while they are on an aggressive expansion wave across California, they’re also aiming to become the first company to create “cannabis therapeutic” data for a US-wide medical cannabis market eventually heading to $9 billion.
It’s the patent moat that attracts us to this stock more than anything: Patents are becoming where a big portion of the money is in an industry on track for total global sales to reach $73.6 billion by 2027, according to Grand View Research.
Juva’s endgame is a focus on therapies, bolstered by growing retail sales revenues. Its flagship Hayward facility now being built out is a massive 18,000 sq ft structure with an adjoining 11,000 sq ft greenhouse.
And its ISO Class 5 cleanroom will be the scene of Juva’s state-of-the-art “science of cannabis” research and development.
They plan to do everything here from cultivation and research to manufacturing and retail--all focused on low-cost, high-quality growth operations combined with state-of-the-art research.
On October 22nd, Juva received a Conditional Use Permit, which is likely to expedite additional permitting, with full production anticipated by mid-2021.
It also just won conditional approval to develop a boutique flagship retail operation in a designer-styled environment at its Hayward facility by the city of Hayward.
This sets the stage for the major push for development of “precision cannabis” products for targeted delivery of the “right formulation to the right individual at the right time”.
Juva (CSE:JUVA; OTC:JUVAF) is going after the IP scene full force across multiple verticals, starting in California.
And the Big Data plan is all about patents, as well. This has the potential to become the gold mine of cannabis.
It’s one missing element whose goal is to cut hundreds of millions of dollars off the costs of getting new pharmaceutical drugs approved …
When Juva went public in November, it heralded a direction change by creating a potential--lucrative--nexus between medical cannabis and big pharma.
Led by CEO Doug Chloupek, Juva is working with top scientists to create the world’s first research database that will show consumers, manufacturers, doctors, natural healthcare providers and Big Pharma exactly which cannabis related natural health products really work, for which health problems.
Their first 2,000 patient research registry has been approved...
And the results are expected to come in within 6 months, and if successful making Juva a potentially ripe target for Big Pharma.
That’s when cannabis could become bigger than anyone ever imagined, making this one of our favorite transformation stocks for 2021.
#3 Marvell Technology (NASDAQ:MRVL)
You might not have heard of this $33-billion market cap company … but it’s worth putting on your radar right in the prime time of a 5G revolution.
T-Mobile and Verizon are too obvious and don’t likely have the upside that a novel chip pioneer like Marvell does.
Marvell stands to be one of the biggest beneficiaries of the 5G rollout because it manufactures the key elements of the infrastructure: application-specific integrated circuits (ASICs) and embedded processors for 5G base stations.
While the average retail investor’s attention has likely been pinging stocks like Intel, Micron, and Qualcomm, Marvell is a much more unique buy-in to one of the biggest technology revolutions since the Internet itself.
In early 2019, Marvell took a leap of faith on 5G, launching its own end-to-end 5G platform that enabled us to deploy 5G infrastructure faster, more efficiently, and more cost-effectively.
For Marvell, that savvy, forward-thinking move boosted its networking revenues by 35% in Q3 2020.
And shareholders who jumped in on this one five years ago with their own foresight have been rewarded magnificently: Marvell has gained nearly 500% in that time, and it’s still making nice gains, with a lot more upside as 5G rolls out.
Other companies looking to capitalize on this new regulatory shakeup:
Even giant beverage brands are joining the race. Constellation Brands (NYSE:STZ), a beverage conglomerate with a stake in everything from Corona to Modelo, shook up the pot world in 2017 when it invested $191 million for a 9.9% stake in Canopy Growth, and followed it up a year later sinking an additional $4 billion into Canopy Growth Corp.
And earlier this year, Constellation raised its stake in the promising cannabis giant once again, investing another $174 million into Canopy, raising its stake to 55.8%. David Klein, CEO of Canopy Growth, noted “This additional investment validates the work our team has done since attracting the initial investment in 2017. It also strengthens our ability to pursue the immense market and product opportunities available to Canopy in Canada, the US and other key global markets.”
Constellation, like many other companies in 2020, had a bit of a rocky start to the year. It saw its share price fall from a February high of $207 to just $119 in mid-March. Following the downturn, however, Constellation’s sales begun to rebound, and with it, its share price as well. Constellation closed off the year at $219 and has climbed even higher since marijuana stocks returned to the spotlight.
Big Tobacco is getting in on the mix, as well. Altria (NYSE:MO) got into the marijuana game in a big way in 2018, investing $1.8 billion in the Canadian pot firm Cronos Group. The deal sent Cronos stock into the stratosphere and positioned Altria as one of the first mainstream tobacco firms to take a hard line in support of the cannabis market.
Altria also placed a big bet on a vaping startup, Juul Labs. And while the deal looked promising at first, Juul has since struggled to maintain its high valuation due to increased regulatory scrutiny. Juul’s hardships have resulted in Altria taking over $11 billion in write-downs, weighing on its own share price.
In 2020, Altria saw its share price fall by 20%. But that doesn’t mean it’s not still a good buy. As the cannabis industry continues to gain traction, Altria offers potential shareholders something many other stocks in the industry don’t: dividends. Altria has maintained its high-dividend yield for years now, and it’s unlikely to cut back anytime soon.
Anheuser-Busch InBev (NYSE:BUD), the iconic American beverage giant, can’t ignore the cannabis boom, either. Often controversial, but always memorable, Anheuser-Busch has proven that it has staying power. Having been in operation for nearly 170, even surviving prohibition, the company knows the key to any market: adapt or die. And with cannabis becoming legal across the globe, Anheuser-Busch is eyeing a key opportunity in this emerging market.
In 2018, Anheuser-Busch signed a deal with Tilray to research and develop non-alcoholic drinks containing tetrahydrocannabinol (THC) and cannabidiol (CBD) through its subsidiary Labatt Breweries of Canada. Kyle Norrington, President, Labatt Breweries of Canada, explained in a press release, "Labatt is committed to staying ahead of emerging consumer trends. As consumers in Canada explore THC and CBD-infused products, our innovative drive is matched only by our commitment to the highest standards of product quality and responsible marketing. We intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities,”
Since the announcement, Tilray and Anheuser-Busch premiered their joint venture, Fluent Beverages, and unveiled their first line of CBD and THC drinks in late 2019. Though the brand-new canna-beverage industry has hit some supply snags along the way, demand for these new products has grown significantly, and as more and more U.S. states move to legalize cannabis, that demand will likely continue to climb in the coming years.
Molson Coors (NYSE:TAP, TSX:TPS-A) is another iconic multi-national beer company, with brands that are recognizable across the United States and Canada. Not to be left behind in the marijuana boom, Molson Coors is also developing a line of non-alcoholic cannabis-based beverages with its partner, the HEXO Corporation.
Molson Coors Canada president and CEO Frederic Landtmeters noted, "While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages."
In August of last year, Molson Coors finally unveiled its cannabis drinks in its joint venture with The Hexo Corporation (NYSE:HEXO, TSX:HEXO). The lineup includes five new beverages containing CBD and THC. CEO Scott Cooper, CEO of Truss Beverage, the product of the joint venture, noted, “We’re thrilled to be introducing Canadians to new beverage options and leading the cannabis beverage category with our variety of products,” adding, “this well-rounded portfolio is designed to bring adult Canadians products that taste great and provide the consistent experience they need to enjoy responsibly.”
Hexo made major waves with its partnership with Molson Coors to develop cannabis beverages. And though the company has had a rough year, losing nearly 50 percent of its value, its ability to close deals and continue to innovate makes it a prime pick for value investors looking to scoop up some undervalued assets.
In Hexo’s fourth-quarter press release, the company shared some optimistic news regarding Truss’ progress, with Sebastien St-Louis, Hexo CEO and co-founder, explaining, “We are commanding significant market share in Quebec and this year we made major strides by launching Truss cannabis infused beverages in Canada in addition to our initial foray into the U.S. with Molson Coors, a world-class partner,”
Though the cannabis industry as a whole struggled in 2021, it’s finally bouncing back. And both Molson Coors and Hexo are reaping the rewards. Molson, for its part, has seen its share price climb by nearly 20% since the beginning of the year, while Hexo, a more pure-cannabis play, has jumped from $3.90 on the first trading day of the year, to its current price of $6.92. And with a more liberal administration about to take the wheel in the United States, there could still be plenty of upside for these two partners.
Field Trip Health (CSE:FTRP), based out of Toronto, takes a three-pronged approach in their work in transformative medicine. Not only are they involved in drug development, but they’re also involved in manufacturing and run a number of treatment clinics.
With clinics currently operating in Toronto, Los Angeles, and New York, they have plans to ramp up to 75 clinics – providing psychotherapy along with psychedelic treatments.
THC Biomed International (TSX:THC) operates as a licensed producer under Canada's Marihuana for Medical Purposes Regulations. It is also engaged in the research & development of the products and services to medical marijuana. THC Biomed's recently announced a new THC-based beverage, aiming to appeal to a broader range of consumers. John Miller CEO explained, "THC has conducted extensive research on cannabis edibles and beverages and I have found our product to be exclusive in its category."
Though THC Biomed may be smaller than some of its more well-known competitors, it is just as ambitious. And it’s beginning to pay off. In September 2020, the company made its first shipment of cannabis products to its Saskatchewan partner, and is rapidly expanding its holdings, with two new strata lot purchases, adding to its growing array of assets.