Best stocks to buy now pick #1
AAZ is a gold, copper, and silver miner in Azerbaijan. Since the market crash, gold has enjoyed strong performance.
Back in 2016, shares in Anglo Asian Mining were trading for 4p per share. As I write, shares are trading for 145p per share, which is a 3,500% increase. The share price has risen over 80% since the March 2020 market crash low of 77p.
The miner has regained control of a contract in a politically disputed mineral-rich region. This contract could boost performance nicely. AAZ has seen year-on-year growth in the last three years in terms of revenue, profit and cash reserves. Last month’s announcement of full-year results showed record revenues and cash generation, which in turn cleared all of AAZ’s debt. This is a positive development for Anglo Asian Mining.
Many FTSE firms have cut dividends due to the economic crisis. AAZ announced a special dividend at the end of January 2021 and paid a special dividend back in November 2020 too.
FTSE 100 pick
One pick from the FTSE 100 section of my best stocks to buy now list is Scottish Mortgage Investment Trust. SMT is a publicly traded investment trust which operates globally. It looks for strong businesses with above-average returns across all sectors.
SMT is on my best stocks to buy list for a few reasons. Firstly, it had an impressive 2020. The FTSE 100 firm’s share price rose over 100% in the past 12 months and is trading for close to 1350p per share as I write. It’s share price has risen close to 300% over the past four years too.
Next, SMT is run by experienced investment duo James Anderson and Tom Slater. Investors are paying for the valuable experience these two bring to the table. SMT’s performance over a long period has been positive and is a testament to the team running it. Success over a period of time shows good flexibility and the ability to operate in different market conditions in my opinion.
Finally, SMT has an emphasis on technology stocks within its portfolio, which I like. Almost 10% of SMT’s portfolio is made up of Tesla, which is also on my best stocks to buy now list. Other tech stocks in its portfolio include Amazon and Netflix.
Risk and reward
SMT’s share price is at an all-time high and may not rise further as market conditions normalise after the crash. Furthermore, a lot of its stocks are considered to be in a ‘bubble.’ This means activity and performance can fluctuate upward in the short-term but stagnate over the longer term.
Warren Buffett has stayed away from speculative assets such as gold. This is because these assets don’t provide their own cash flow. AAZ is also quite a small player in a large pond. Furthermore, it also operates in a volatile part of the world whereby politics can affect its operations and hinder progress.
I understand these risk, but these two stocks are still on my best stocks to buy now list. Here is another FTSE 100 stock that I like.
Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.