If you’re a value investor, one of the most reliable strategies to ensure portfolio longevity is to steer clear of speculative stocks, whose underlying companies have lost or have yet to establish a path to adding value in their target markets.
While these high-risk tickers can deliver short-term term returns, should a gamble on a certain outcome, such as an earnings beat or reaction to related news, work out in an investor’s favor, long-term compounding is reserved for companies making a difference for their clients – or on a clear path in that direction – whose products or services are aligned with a pressing unmet need that holds the potential for exponential returns.
Identifying such durable stocks is not rocket science, but does require an appetite for tedium akin to Warren Buffett systematically flipping though Moody’s manuals, from A to Z, whiling away the hours jotting down worthwhile names meriting further research.
To shave some time off of my readers’ due diligence process, I’ll spend the newest edition of Stockhouse’s Weekly Market Movers going over two stocks tracking companies with innovation at the heart of their business plans, whose future prospects, leveraged to the circular economy, appear to be undervalued at current share prices.
Cielo Waste Solutions
Our first value stock prospect is Cielo Waste Solutions, market capitalization C$16.21 million, which is focused on transforming waste streams into renewable energy, simultaneously generating shareholder value while contributing to the green energy transition.
This article is disseminated in partnership with potential value stocks Cielo Waste Solutions Corp. and EnviroGold Global Limited. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Cielo Waste’s first conversion plant, to be located in Prince George, British Columbia, will be designed to transform used wooden railway ties – more than 20 million of which need to be replaced annually in Canada and the United States – into sustainable aviation fuel, with eyes on supplying a market under intense pressure to decarbonize by 2030 and 2050, respectively.
The company has a railway tie supply deal and a low-emission, cost-efficient and proprietary technology in place to get the job done, and is currently putting together numerous applications for government incentives, including under BC’s Low Carbon Fuel Standard, to optimize initial capital costs before breaking ground on construction.
Pending successful construction and initial revenue, which is expected by 2028, leadership intends to replicate the model with additional facilities and renewable commodities, taking cues from the demand environment, furthering Cielo Waste’s goal of displacing materials from landfills with a viable path to a second life.
Despite having money in the bank to advance its growth plans over the near term, in the hands of a leadership team well-versed in renewable fuels and regulatory navigation, Cielo Waste stock (TSXV:CMC) has given back more than 99 per cent since 2020, in what can only be described as an irrational dislocation well worth a value investor’s eagle eye.
Ryan Jackson, Cielo Waste Solutions’ chief executive officer, spoke with Ricki Lee about the company’s latest developments. Watch the interview here.
EnviroGold Global
Our second value-added value stock, EnviroGold Global, market capitalization C$62.72 million, is rolling out its NVRO oxidative leach process, a clean technology capable of recovering precious, base and critical metals from mine waste and tailings at economical grades, including 98.5 per cent gold, 88.8 per cent copper and 91.6 per cent zinc.
EnviroGold’s patented, scalable and capital-light technology, highly aligned with the proliferation of ESG mandates across the world, has been shown to produce metals with 96 per cent less carbon emissions than traditional mining, granting the company a front-row seat to a more than US$3.4 trillion tailings metals extraction market, much of which remains untapped.
The company is fielding a growing customer pipeline, backed by strategic partners de-risking project execution and delivery – see slide 9 of the latest investor deck – estimating that it will deliver a qualified production system at the demonstration level by Q1 2026, followed by full-scale operations and initial revenue later that year.
Supported by a leadership team replete with expertise in mine development, mining finance, as well as sustainability-focused ventures, EnviroGold is on the verge of cash flow and what is poised to be a vertiginous operational ramp-up.
The market, broadly speaking, vehemently disagrees, saddling investors in EnviroGold stock (CSE:NVRO) with a 71.11 per cent loss since inception in 2021, leaving the company’s high-conviction environmental thesis for contrarian bargain hunters to have a field day.
David Cam, executive chairman of EnviroGold Global, sat down with Ricki Lee to discuss new leadership changes to enhance and accelerate operational growth. Watch the interview here.
Thanks for reading! I’ll see you next week for a new edition of Weekly Market Movers, where I delve into companies that sat down with Stockhouse for an interview over the past week. Here’s last week’s article, in case you missed it.
Join the discussion: Find out what investors are saying about these green value stocks on the Cielo Waste Solutions Corp. and EnviroGold Global Limited Bullboards, and make sure to explore the rest of Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.
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