Rage-buying was the common denominator during the cryptocurrency craze and meme stock frenzy. Some investors even became instant millionaires from risky investments. Latecomers must have lost plenty when they bought high and sold low. Now, a new hype is developing through a unique digital asset called non-fungible tokens (NFTs).
Jack Dorsey has a lot to do with NFTs making the headlines. The Twitter founder sold his first tweet, “Just setting up my twttr,” for over US$2.9 million. Bridge Oracle CEO Sina Estavi won the bidding war over Justin Sun, a tech entrepreneur. The NFT isn’t a physical asset but a virtual autograph. Dorsey said he would convert the proceeds to Bitcoin.
NFTs could be a fad, and therefore, not suitable for regular investors. Its enjoyment for collectors of jpegs, video clips, street art, and the like. However, the long-term potential is unclear. Use your free cash to buy shares of Crew Energy (TSX:CR) and Evertz Technologies (TSX:ET) instead. It isn’t an expense or waste of money because the growth stocks could reward you with a significant windfall.
Astronomical returns
Crew Energy delivered astronomical returns (796%) to investors in the last 12 months. At the current share price of $3.36, the year-to-date gain is 500%. Your money would be worth $30,000 today had you invested $5,000 on December 31, 2020. The energy sector is red-hot in 2021 due to rising oil prices and ever-increasing demand.
The $526.09 million growth-oriented light oil and natural gas company operates in the vast Montney resource in British Columbia. In the first half of 2021, petroleum and natural gas sales grew 145% year over year. Crew generated $58.65 million in funds from operations while reducing net loss by 90% to $21.78 million.
According to Dale Shwed, Crew’s President and CEO, the company is on track to meet its two-year sustainability plan. It should increase the pace of development in the Montney resource. Likewise, management expects to increase production, reduce unit costs to expand margins, and create sustainable value for all stakeholders.
Strong revenue growth
Evertz Technologies carries a strong buy rating, with analysts forecasting the price to climb from $14.22 to $16.83 (+18.38) in the next 12 months. Since the tech stock also pays a generous 5.08% dividend, the total return would be higher. Current investors enjoy a 10.18% gain thus far in 2021.
The $1.08 billion global technology company manufactures broadcast equipment and delivers complete end-to-end broadcast solutions in all production aspects. Evertz caters to clients in the broadcast industries of Canada, the United States, Asia, Australia, and the Middle East.
Evertz is doing brisk business in the fiscal year 2022. In the three months ended July 31, 2021, management reported revenue and net earnings growth of 72% and 2,454% versus the same period in fiscal 2021. Management is aware that the prevailing uncertainty due to the pandemic can impact overall customer demands.
Nonetheless, the company remains confident the current balance sheet and incoming cash flow for operations can fund growth or cover investment activities in the foreseeable future.
Stay away
NFTs are alien to many people, but the support, especially from celebrities, excites the public. However, if you want real value for your money, stay away. The money you’ll invest in Crew Energy or Evertz Technologies could return tenfold.
