I’ll hold Sirius Minerals for now. But there’s a high-growth stock I’d buy today

first_img Enter Your Email Address Manika Premsingh | Saturday, 22nd February, 2020 | More on: BWY SXX I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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But there’s a high-growth stock I’d buy today When I last wrote on Sirius Minerals (LSE: SXX), the polyhalite miner at the brink of bankruptcy, it looked like the story was all but over. At the time, the company’s board said that an alternative finance proposal involving a debt raise had been unsuccessful. The board encouraged shareholders to allow the all-cash acquisition bid by the FTSE 100 multi-commodity miner Anglo American to go through at 5.5p a share. This development followed a 4.8% drop in SXX’s share price fall to 5.03p, though it has inched back up since.  New investor in the mix Since then, there have been developments in the Sirius sage. Hedge fund Odey Asset Management just became a shareholder in SXX, buying a 1.3% stake. It earlier held a derivatives position in the company, according to news reports. As a shareholder, it now holds voting rights and intends to vote against the current AAL offer, which it says doesn’t represent “fair value for shareholders in Sirius”. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Additionally, it values the company’s equity at 120% above the board’s offer and says that it will vote in favour of the deal at a price of 7p and above. With many shareholders unlikely to be present at the time of voting, it further adds that those who are present will have “magnified power”. There’s more. There’s now a Sirius Minerals’ Investor Action Group in place, which includes investors who are trying to raise debt funding for the company. In the meantime, AAL has defended its current offer for Sirius Minerals. In other words, AAL’s buyout of SXX no longer looks as much like a done deal as it did a week ago. Lucrative alternatives So where does it leave the existing investor? The plot has thickened, and now, of all times, is not the time to sell. I’m holding, for sure. But I’m also looking at other investing opportunities that promise gains.  For capital gains, high-performers in the FTSE 250 or relatively new entrants to the FTSE 100 are good stocks to consider, to my mind. Consider, FTSE 250 property builder Bellway (LSE:BWY) which has seen an upswing in prices recently. Still, compared to its FTSE 100 real estate counterparts Barratt Developments, Persimmon, and Taylor Wimpy, Bellway’s price-to-earnings ratio is slightly lower at sub-10 times. Since posting a positive trading update in the first week of February, the company’s share price has been on the rise. From the day of the release up to the time of writing, it’s up by 6.2%.  Bellway’s outlook is positive as well, and most analysts put a ‘buy’ rating on it. Further, its dividend yield is superior to the average FTSE 250 yield of 2.8%. At 3.5%, it’s not the most lucrative passive income generator, but given that it’s a promising growth stock, a higher than average yield is icing on the cake. The real estate sector has just got a Brexit boost, and with green-shoots of recovery in the UK economy becoming evident, I think the cyclical sector maybe in for better times ahead, making BWY a good buy.  Manika Premsingh owns shares of Sirius Minerals. The Motley Fool UK 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. Image source: Getty Images. last_img

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