This off-the-radar idea has been on a solid roll and could hop into double digits soon. Costamare Inc. (NYSE: CMRE) is one of the world’s leading owners and providers of containerships for charter.
The company has 46 years of history in the international shipping industry and a fleet of 72 containerships, with a total capacity of approximately 529,000 twenty-foot equivalent units, including two new build container ships currently under construction. Ten of the company’s containerships have been acquired pursuant to the Framework Deed with York Capital Management by vessel-owning joint venture entities, in which Costamere holds a minority equity interest.
Stifel recently lifted the price target to $9.50 from $8.50. That compares with an $11.25 consensus target. The stock has been trading below the $10 level.
This company had a major international conglomerate take a large position late in 2018. Cronus Group Inc. (NASDAQ: CRON) is a global cannabis company founded in 2012 and based in Ontario, Canada, with a presence across five continents. Its principal activities are the production and sale of cannabis and cannabis-derived products in federally legal jurisdictions.
Back in December of 2018, Altria agreed to buy a 45% stake in the company for about $1.8 billion, a sign of the new world in which the tobacco company must compete. This strategic partnership provides Cronos with additional financial resources, product development and commercialization capabilities, as well as deep regulatory expertise, to better position the company to compete, scale and lead the rapidly growing global cannabis industry. This also gives Altria the option to increase to full ownership if it so chooses down the road.
Raymond James has set an $11 price target, but there is no consensus target. Cronus stock dropped below $8 last week for the first time since early in the year.
Investors who are more aggressive may want to consider this smaller cap mining company. Kinross Gold Corp. (NYSE: KGC) is one of the largest gold producers in the world. It engages in the acquisition, exploration and development of gold properties principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
BofA Securities has noted in the recent past that its Buy rating is a function of its view that Kinross’s gold output will rise to 2.9 million gold equivalent ounces in 2023. Kinross is trading at material discounts to the senior gold producer peers. A key catalyst for Kinross will be the completion of the Tasiast Phase Two mine development in 2022.
The $11.50 BofA Securities price target is in line with the $11.48 consensus target. Kinross Gold stock recently traded near $7.50.
These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, these are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.