This year is shaping up to be a rocky one for investors, but there’s still plenty of potential out there if you know what to look for. Here are five possibilities for the near future, and the companies that are in a great position to exploit that opportunity if it comes to pass.
Opportunity 1: The U.S. consumer starts spending again
Company to consider: TJX Companies Ltd.
The owner of Marshalls, Winners and other off-brand retailers is well-positioned to capture value-conscious consumers as they take their first tepid steps toward parting with their cash again.
Opportunity 2: Apple dominates the high-end handset market
Company to consider: Skyworks Solutions Inc.
The Massachusetts-based semiconductor company supplies chips for phones, tablets, GPSs and just about anything with wireless connectivity. Most notably, it’s said to be a supplier for the iPhone 6. If Apple keeps ascending, it could take Skyworks along with it.
Opportunity 3: Business takes cybersecurity more seriously
Company to consider: NCC Group PLC
Among other offerings, NCC provides ethical hacking services so businesses can learn how to improve their defences. The British firm has completed a couple of acquisitions and expanded in the U.S. As security becomes essential, NCC’s services will become less tied to the business cycle.
Opportunity 4: LNG projects in British Columbia move ahead
Company to consider: Tourmaline Oil Corp.
Some 18 consortia are vying to export liquefied natural gas across the Pacific. There are major challenges, but a few contenders are close to starting construction of their terminals. Tourmaline Oil, a natural gas producer in Calgary, should benefit if and when projects are completed. The company’s low cost structure will help it survive a depressed pricing environment in the meantime.
Opportunity 5: The U.S. completes a wireless spectrum auction
Company to consider: Tribune Media Co.
The Federal Communications Commission is planning to auction unused spectrum currently licensed to broadcasters to mobile telecommunications companies. The timing is unclear, and it’s been delayed before. But Tribune could make as much as US$1 billion by selling its spectrum, according to Sarbit Advisory Services.