Over the past month, the NASDAQ 100 index has fallen by approximately 3%. That’s only for large names included in the benchmark. Many under-the-radar stocks — especially those in the tech industry with a high beta — have fallen even further…
The good news is that buying the dip when others are afraid to dive in can be a solid way to make money in the long run. Indeed, shares of BlackBerry (NYSE:BB), Sundial Growers (NASDAQ:SNDL), and AMC Entertainment (NYSE:AMC) are all on sale. Let’s look at why now might be the ideal time to go long on these stocks.
In 2014, BlackBerry was a struggling smartphone manufacturer with $6.8 billion in sales but losing $343 million a year in cash. Fast forward seven years, and the company has entirely exited the smartphone market and made the transition into enterprise software.
Its revenue fell to just $900 million in 2020. However, the company managed to turn a profit of $74 million. Currently, its cybersecurity technology has the ability to secure 96% of the enterprise landscape. BlackBerry provides businesses with protection against malware, malicious third-party apps, phishing software, and more.
The company has also made tremendous progress in Internet of Things (IoT) integration, such as in self-driving car software. Eighteen of G20 governments, nine out of the top 10 global banks, and nine out of the world’s top 10 automakers use BlackBerry’s technology.
Approximately 90% of its revenue is recurring, giving it stability in addition to its high margins. With $439 million in cash net of debt and a valuation of 5.4 times revenue, this is a promising tech stock worth considering buying while it’s trading for cheap.
2. Sundial Growers
Shares of Canadian marijuana company Sundial Growers are down a stunning 75% from their February highs. Investors were highly disappointed by its Q1 2021 earnings report. Sundial’s vape, flowers, pre-rolls, and oils have become unpopular with consumers. Sales declined by 32.2% year over year to CA$9.9 million. Keep in mind that this is a company with a market cap of $1.4 billion.
Stunningly enough, Sundial Growers posted its first-ever positive operating income less non-cash items (EBITDA) in the quarter. The company invested CA$96 million into other growers in the Canadian pot industry and generated CA$15.7 million in non-cannabis revenue.
That brings up the main focus — Sundial Growers is looking more like a cannabis financier than an operator. The company has no debt whatsoever, compared to…
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