A demand trigger is all it takes for some stocks to shoot up. A feature of the Chinese bamboo tree is it takes five years to break ground. You water them and give them ample fertilizer and sunlight, yet they donât grow. But when it breaks ground, it grows 90 feet tall in five weeks.

Two stocks under $50 that could double your money in five years

Some stocks are like bamboo trees. You may keep investing and see your portfolio stagnant or in the red. And you lose patience and sell it, thinking maybe you were wrong. But then you learn that the stock shot up a few weeks after you sold it. Here are two tech stocks that havenât broken ground, as they are waiting for a demand trigger in a booming economy. Once that trigger hits, they can grow your money within months. If you wonder when that trigger will come, only time will tell.

Remember, even the savviest of tech investors went wrong with the timing. SoftBank Vision Fund founder Masayoshi Son missed out on Nvidia when he sold his 5% stake for less than US$4 billion in 2019. These shares are worth US$160 billion today. Hence, it is better not to time the market and spend time in it.

HIVE Digital Technologies

HIVE Digital Technologies (TSXV:HIVE) is one of the oldest blockchain technologies companies, generating income by mining Bitcoin and validating transactions. Blockchain technology has ample scope in the 5G world. Blockchain is distributed ledger technology where transactions are validated by a global network. Many tech companies, including Hive, are exploring applications of blockchain technology. Once the demand triggers, Hive could be a key beneficiary.

Hive is monetizing its graphics processing unit (GPU) powered data centres for artificial intelligence workloads. However, the short term is highly volatile for the company as its major source of income is from Bitcoin mining. The past two crypto bubbles occurred in a strong economy, as investors had ample financial flexibility to make risky investments.

The market expects interest rates to fall in the coming years, leading to economic recovery. That could pave the way for the next crypto bubble in three to five years and drive this less than $6 stock to $18-$20 price. The stock has surged more than 50% since early June, when the Bank of Canada announced its first rate cut.

Dye & Durham stock

Legal practice management software provider Dye & Durham (TSX:DND) is one of those stocks that debuted the TSX in the 2021 tech bubble. The rallies during the bubble should be taken with a pinch of salt as they are driven by noise and not fundamentals. That was the time when Dye & Durham grew with acquisitions. It has some good acquisitions up its sleeves. However, the company took a pullback when two of its biggest acquisitions — TM Group and Link — failed back to back and inflated its financing cost.

Some bad decisions did not impact Dye & Durhamâs unique selling point: Unity software, which caters to legal practices, with significant exposure to real estate (43% of revenue). Unity software is sticky and has been helping the company grow its revenue by double digits after excluding the impact of TM acquisitions. DNDâs 30% revenue is annually recurring, and this percentage is growing.

DND is focused on reducing its over U$1 billion debt and finance costs to return to profitability. If we remove DNDâs capital cost, its profit from operations would be 56% of its revenue. An improvement in the companyâs capital structure will drive profits in the medium term and lead the way to the stock price rally. The stock is trading near its initial public offering price of over $13 and has ample room to grow and double your money in the medium term.

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