It’s the perfect time to start buying. Investors looking for blue-chip stock opportunities have found them discounted to the extreme as this stock market rally gets underway. Then there are the other investors — those looking for opportunities to make a killing in a short time.
While it’s best to have a portfolio based on long-term buys, it can still be a great idea to have at least a small stake in stocks that could double or even triple as the stock market rally continues. And in some cases, you won’t even have to pay a large amount to see massive returns.
Today’s stock market rally opportunity
Let’s face it, Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) has seen far better days. The company once traded in the $50 range only nine years ago. Today, that share price has fallen a whopping 99%. That’s right, the stock is almost non-existent at $0.30 per share as of writing.
While this might not be the best long-term stock to hold onto, it definitely has some potential during this stock market rally. What’s really beaten down the stock lately is the market crash coupled with the oil and gas industry.
Even with Russia and Saudi Arabia agreeing the cut back on production, with further cuts potentially on the way, BTE stock has a long, long way to go.
For now, it’s best for investors to look at this as a quick buying opportunity. As the stock market rally continues, it should be easy for investors to get back to at least pre-crash prices.
While those share prices were still low at only $2 per share, that would mean investors could potentially see their shares blossom seven fold!
But even if you aren’t looking for that high of share prices, this stock should easily double over the next month, or even less. That’s why the earlier you get in, the better so you don’t miss out on this stock market rally opportunity. Let’s say you put aside just $1,000. You could see that stock double in under a month!
Still risks ahead
I’m not going to lie. This is a risky buy right now, as are all get-rich-quick stocks. The stock market rally has a lot of potential for great investments, but BTE stock has a lot to prove.
The company has $1.9 billion in debt after purchasing Aurora Oil and Gas back in 2014, needing West Texas Intermediate to average US$38 per barrel just to reach neutrality for 2020. Needless to say, that doesn’t look likely.
The main hope that BTE stock has is to make even more cuts. Its cuts already have meant the company’s oil production won’t be growing for at least this year, with 2020 estimates ranging from 85,000 to 89,000 barrels per day, 9% lower than last year.
This again won’t be good for long-term investors, but could be good for a quick bump for short-term shareholders during this stock market rally.
Bottom line
It’s up to you whether you have the funds available to take a small stake in BTE stock during this stock market rally. However, I wouldn’t recommend hoping for a $50 stock price anytime soon.
In fact, this company could even go bankrupt. But right now, prices are just so low that it’s likely you make at least some cash before selling this stock ahead of any more bad news.
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.
from https://ift.tt/2VXkQDb
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