New listings are the best way to get an early bird advantage in the stock market. You can look into promising new companies, and there is a high probability that the stock will only go up in the long term; you can buy it at a price that the company might never trade for in the future.
But it’s imperative that you understand the risk of an untested stock as well. Even companies that have long histories and stable financials can fail to become promising stocks. Or they may simply get too much attention too early in the game and then spend years “normalizing.”
So, with the right expectations, there are two new listings you should look into.
An energy transition company
Kiwetinohk Energy (TSX:KEC) markets itself as an energy transition company. It’s headquartered in Calgary and was founded in 2018, though it joined the TSX in January 2022. The market capitalization of the company, while not quite significant, is currently at $532 million.
The company has three different business segments. Its upstream portfolio includes four gas-processing facilities in Alberta. Under the green energy umbrella, the company has two proposed projects under its belt: one solar farm for 400 MW production and natural gas with a carbon-capture powerplant of 100 MW.
The stock rose a little bit from inception till one week in the market; after a quick correction, the stock has mostly been stagnant. It’s hovering around $12 per share and going up at a very steady rate. Right now, it’s a small energy player with the right approach, and if it starts delivering on its promise, the stock may start to rise at a decent pace.
A business services company
The second new listing that you should consider comes with a strong endorsement. Brookfield Business (TSX:BBUC), as the name suggests, is part of the famous Brookfield group. It’s a business service and industrial company and the Canadian version/paired entity of the larger U.S.-based Brookfield Business Partners, with about $64 billion worth of assets under management.
The premise behind the company is quite similar to the parent company, and the portfolio diversification is also quite similar. North American assets lead the pack, while European and Middle Eastern assets are close behind. The rest are in the Asia Pacific and South America.
The company only started trading on the TSX earlier this month, and even though it’s a very slight appreciation, the stock has gone up since its inception. Like other Brookfield securities, the stock may offer consistent linear growth, and if that’s a possibility, then buying now at its early days’ price can be a smart move.
Foolish takeaway
These new securities can prove to be decent growth stocks right away, or you may need to track them for months or even years before their performance becomes consistent and convincing enough to buy them. Either way, keeping an eye on the two companies would be the smart thing to do.
