November is a good month for frugal investors to shop for bargain stocks. If you have a little money that you want to grow heading into 2020, Aleafia (TSX:ALEF), Baytex (TSX:BTE)(NYSE:BTE), and Corby (TSX:CSW.A) are excellent buying opportunities. The prices are approaching 52-week lows.
Aleafia is a $171 million integrated cannabis health and wellness company. The primary focus is to bring medical cannabis care to Canadians. It produces products such as oils, capsules, and sprays that you can buy at nationwide clinics.
The stock is down 50.35% year to date and is trading at a low of $0.71. Aleafia’s steep drop follows the general weakness of the cannabis sector. Analysts, however, see a potential gain of 322.5% in the next 12 months when Cannabis 2.0 ultimately picks up.
Aleafia has some good news for investors. From a second-quarter net loss of $11.48 million, the company reported a net income of $1.86 million in the third quarter. Likewise, total revenue rose by 34% to $5.29 million during the same period.
According to management, the substantial improvement shows the company’s readiness to scale its cannabis health and wellness ecosystem, not only in Canada but internationally.
Baytex is a $904 million independent oil and gas company that has been operating for 26 years. The energy stock had a great start in 2019, but the momentum did not sustain. As of this writing, the price is down to $1.64, coming from $3 in late April.
Bullish sentiment is building around Baytex because of its strong operating performance. Revenue for the nine months ending September 30, 2019, climbed by 27% compared with the same period in 2018. From a $94 million net loss last year, income jumped to $105.3 million.
Also, Baytex was able to generate $74 million in free cash flow in Q3 2019 and $271 million through the first nine months of 2019. The company expects to exceed its 2019 full-year annual production guidance,
As it continues to drive cost and capital efficiencies, stable production, and substantial free cash flow, analysts are estimating potential upside of 174.4% in the year ahead.
Corby is down to $15.67 from $18.70 at the beginning of 2019. Nonetheless, the stock is ripe for the picking as the holiday season approaches. Sales of wine and spirits peak during this period. This $443.55 million manufacturer, seller, and importer of alcohol beverages also pay a high dividend of 5.71%.
Profit-wise, Corby has maintained an average net income of $25.6 million over the last four years. The company would end the year at the same level. Since 1859, the company has been in the consciousness of Canadian consumers of alcoholic beverages.
Today, Corby is a leading marketer and distributor of spirits and wines; notably, it has the 25 top-selling brands in the country. Alcohol is a high-cash flow-generating business. Some investors regard Corby as recession-proof and a defensive stock in a down market.
A partnership with a cannabis company could drive revenue growth.
High chances of recovery
Aleafia, Baytex, and Corby are experiencing a slump. The stocks, however, are great buys because of the strong potentials to recover and deliver incredible returns in 2020.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CORBY SPIRIT AND WINE LTD CLASS A.
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