The ability to uncover a stock before the overall market has recognized the opportunity is a difficult practice. When executed correctly, it can offer huge gains.
A recent example of one of KeyStone Financial’s (www.keystocks.com) successful buy recommendation on a profitable, under-the-radar stock, is XPEL Inc. (XPEL: NASDAQ). Which on Wednesday August 21st, jumped 23.18% following very strong quarterly financial performance. The stock has now returned over 500% since our initial recommendation under two years ago today. At that time, no broker or Big Bank was recommending the stock – but for our clients, XPEL was one of 10 select recommendations in our Canadian Growth Stock Focus Buy Portfolio.
If you are not one of our clients, you have likely never heard of XPEL. The reason that banks and brokerages tend to overlook companies like XPEL, is because these cashflow positive businesses will generally offer institutions little business, as they can fund their own growth. Leaving little incentive for financial companies to follow the stock.
Therefore, the only way for you to identify an investment opportunity like XPEL is to analyze every stock on the Canadian market, or become a client to one of KeyStone Financial’s stock research services and let us do it for you.
When we initially recommended XPEL Inc. on September 12th, 2017, part of our thesis stated:
“It appears that if XPEL’s revenues continue to grow as we saw in Q2, 2017, the company will finally be well positioned at its current scale in North America to begin seeing the operation leverage we would expect. This would bode well for future cash flow growth, driving the share price higher long term. The company is not there yet but appears at an important tipping point.”
Subsequently, after KeyStone released initial coverage on XPEL, the stock continued to put up record gains. Growing revenue 76.5%, from $17.05 million in Q2, 2017, to $30.09 million in Q2, 2019. XPEL was also able to take advantage of the operating leverage KeyStone believed would be realized, as over the same period, the company grew its gross margin by 800 basis points.
XPEL’s growth and financial position have been so robust that the company recently graduated to the Nasdaq Exchange and announced its planned delisting from the TSX-V, which is set to occur on August 30th, 2019.
This week KeyStone Financial released our 2019 Breakthrough/Turnaround Canadian Small-Cap Report, which has uncovered 5 new buy recommendations and an additional 12 stocks that we are monitoring for ‘potential’ entry points. The report is an interesting mix of stocks from a variety of market segments, including gold, pharma, energy services, communications equipment/software, and more. Just as we recommended XPEL Inc. two years ago – one of these companies could be the next blue-sky growth stock that might multiply your wealth.
BUY KeyStone’s 2019 Breakthrough/Turnaround Canadian Small-Cap Report HERE.