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The Market’s Best Kept Secrets: 3 Stocks With Unstoppable Potential

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  • These companies operate in diverse verticals, illustrating their adaptability and broad market presence.
  • Heritage Global (HGBL): Its industrial assets division exhibits strong growth potential.
  • Opera (OPRA): It excels in enhancing its ARPU, expanding its AI program, and targeting the Gen Z demographic.
  • Immersion (IMMR): It focuses on protecting its IP portfolio, offers diverse licensing models, and successfully penetrates key markets.
Little Known Stocks to Buy - The Market’s Best Kept Secrets: 3 Stocks With Unstoppable Potential

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If you’re searching for little known stocks to buy, look no further. In the investment world, finding stocks with potential can be the key to unlocking extraordinary opportunities. As the stock market surges with established giants and emerging disruptors, the “best-kept secrets” often harbor the most exciting potential. This article delves into the shadows to unveil three such remarkable stocks – each with its own unique story of resilience, innovation, and adaptability.

The first stock on the list is a company whose strength lies in its diversified asset divisions. It has a remarkable ability to seize market opportunities even in the face of economic fluctuations. The second one is a tech powerhouse that not only enhances its revenue but reshapes the digital landscape with cutting-edge AI and a browser tailored for gamers. Finally, the third one is a company that excels in safeguarding its intellectual property, with tremendous potential in the metaverse era.

Heritage Global (HGBL)

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First on the list of little known stocks to buy is Heritage Global (NASDAQ:HGBL). One of its fundamental strengths lies in its diversified asset divisions. It consists primarily of financial assets and industrial assets. This diversification is pivotal in enabling the company to capitalize on different market opportunities and navigate economic fluctuations more effectively. For instance, the financial assets division’s strength is underscored by an impressive 185% year-over-year (YOY) increase in divisional net operating income during H1 2023. This substantial growth indicates the division’s prowess in capitalizing on the opportunities presented by the current economic landscape.

Additionally, what sets Heritage Global apart is its ability to grow its divisions consistently and sustainably. Unlike previous years, when the company relied on significant real estate deals to boost its income, 2023 reflects a different story. The $7 million in operating income for 2023 is not the result of one-time deals but is achieved through the solid performance of all divisions across the board. This sustainable growth represents the company’s capacity to consistently perform well without relying on one-time deals.

Lastly, Heritage Global’s industrial assets division has demonstrated robust growth potential. The division has posted 26 auctions this quarter, highlighting the strong service demand. Moreover, American Laboratory Trading (ALT) signed several of these auctions. This demonstrates ALT’s existing retail business performance and ability to source auctions for Heritage Global. The division progresses in winning auctions across multiple sectors, such as aviation, cannabis, and general industrial surplus machinery, highlighting the company’s diversification and ability to tap into various markets.

Opera (OPRA)

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Annualized average revenue per user (ARPU) is a key metric for any technology company, and Opera’s (NASDAQ:OPRA) performance in this area is impressive. For example, in Q2 2023, Opera’s ARPU was $1.17, representing a substantial 25% increase YOY. Furthermore, this metric soared by 80% relative to Q1. This highlights Opera’s capacity to enhance its revenue per user. It indicates its ability to cater to higher-value users, particularly in Western markets. Thus, the increased ARPU boosts immediate revenues and sets the stage for future growth.

Additionally, Opera has expanded its AI program to enhance its browsers, news, and gaming products. It is capitalizing on its proprietary solutions and new and existing partnerships. Notably, Opera’s partnership with OpenAI, the maker of ChatGPT, has already yielded impressive results. This partnership is significant as it brings advanced AI capabilities to Opera’s ecosystem, providing users with enhanced experiences and features. It also marks Opera as a forward-thinking tech company, positioning it for AI-enhanced web browsing sector growth.

On the product side, Opera GX, a browser designed specifically for gamers, has been a key driver of Opera’s growth. The user base for Opera GX continues to expand, growing by 9% sequentially to reach 24 million during the quarter. The annualized ARPU for Opera GX was $3.10, a 7% increase compared to the previous year’s second quarter. This browser primarily targets the Gen Z demographic, a highly attractive market. Overall, Opera GX provides gamers with a unique internet experience that matches the look and feel of their broader gaming setups and connects them directly to the services they use.

Immersion (IMMR)

A photo of a hand holding a magnifying glass and looking at a paper.
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Immersion (NASDAQ:IMMR) significantly emphasizes protecting its IP portfolio. This includes a combination of patents, copyrights, trademarks, nondisclosure agreements, contractual agreements with third parties, etc. As of December 31, 2022, Immersion and its wholly-owned subsidiaries held over 1,200 currently issued or pending patents worldwide. Protecting its IP is vital to safeguarding its technology and supporting its licensing model.

Fundamentally, Immersion offers a variety of licensing models, including technology licenses, patent licenses, and combined licenses. This flexibility allows them to cater to the specific needs of customers. Licensing agreements include fixed, variable, or mixed royalty and license payments, providing diversified revenue streams.

Additionally, Immersion’s presence in various markets, including mobile communications, gaming, and automotive, is a strength. They have licensing agreements with industry giants like Samsung, Sony (NYSE:SONY), Microsoft (NASDAQ:MSFT), and Nintendo (OTCMKTS:NTDOY) to name a few. In 2022 and 2021, mobile communications represented 60% of total revenue, gaming and VR accounted for 21%, and automotive contributed 13% and 19%, respectively. Therefore, these figures demonstrate the company’s successful penetration into key markets.

As a result, Immersion generates revenue across Asia, North America, and Europe. For the three months ended June 30, 2023, 83% of its total revenue came from Asia, while North America and Europe contributed 14% and 3%, respectively. A global presence ensures the company is well-positioned to capitalize on opportunities in diverse markets and regions.

Notably, Immersion’s business strategy revolves around maximizing profitable licensing opportunities, leading in the haptics industry, and driving the adoption of their technology across markets and applications. Finally, the company aims to foster haptic standards and expand into emerging markets like virtual, augmented reality, and metaverse, aligning well with the evolving technological landscape. Clearly, it’s earned its spot on this list of little known stocks to buy.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/the-markets-best-kept-secrets-3-stocks-with-unstoppable-potential/.

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