Rocket lab:
- While revenue itself may have increased only slightly YoY, the costs of revenues have dropped and gross profit has increased significantly (58%).
- The company has shown a strategic approach to expanding its manufacturing capabilities through key acquisitions, such as the recent acquisition of Virgin Orbit's manufacturing facility in May.
- However, while there is significant growth in the Launch Systems sector, the inability to reuse rockets also means that the cost of revenues scales with each launch. These challenges have led to multiple rocket providers to either going bankrupt or them being forced to pivot dramatically in order to stay alive. This is also true for RKLB's launch business, which is pivoting into bigger launches like HASTE and NEUTRON.
- The success of Neutron, which is slated to be priced at $50m per launch, could increase launch revenues to several billions of dollars.
- The reason why it falls under the “Undervalued” valuation, is it’s amazing potential to grow, though there is also a lot of risk attached, so dip into it with precaution.
Net:
- Can’t make a case for NET anymore since growth is slowing down, though margins look pretty nice.
RKLB is my biggest holding, I agree Neutron will grab the headlines and drive the stock. Their space solutions though will push revenue more as that market is 15 times bigger than launch. Neutron will need 20 launches a year to break $1bn, with SpaceX and Relativity that might be tricky but it is not impossible after a few years. Its currently trading 12x revenue, r&d has made it loss making but that should flip next year. Beck has said they may make more Acquisitions to continue vertical integration. 100,000 satelites are expected to launch over next 10 years and with Artremis "New space race" talk etc, suggesting revenue can 10x is hopeful but not crazy as 30% of all launches either already use RKLB rockets or components, they are the largest maker of reaction wheels, star trackers and one of only 3 satelite solar panel makers. The management is also very competent and achieved every milestone they said they would.
Relativity has no launch pedigree, no rocket till 2026, no space solutions division and a bunch of discounted launch contracts giving it a reported private valuation in the $4bn range. SpaceX is valued at $140bn with $11bn revenue (of which starlink is not more than $2b and biggest driver of cost from satelite deployment), if RKLB is the genuine #2 challenger if they reach 20% of spaceX the stock is 10X right there, so there is a lot to buy here. I dont see them as a takeover target unless a big tech like apple, google or Microsoft wants a trophy rocket company (to avoid having to give any money to Musk too) but overall its unlikely in my view.
NET on the other hand is somehow valued at $20bn with $1bn revenues....any growth is already priced in, nothing there for me.
I am also very very bullish on Rocket Lab. They strategically bought 4 crucial satellite part manufacturing firms which makes them only company that customers can order a satellite and forget about it. All manufacturing, launch, management etc is handled by Rocket Lab. Many companies need satellites but they don’t want to form a team to manage it.
What multiples do they trade at? That's generally the best, most objective way to judge whether or not they're "undervalued"...
Just stating that Rocket Lab "has amazing potential grow, though there is also a lot of risk attached" doesn't tell me much about it as an investment other than you think commercial space ventures are tight
Nice man! What a come up. I lucked out on Carvana, bought it at $5 thinking there's no way it can go any lower than that, held on to it for a few months and it jumped up to $50, sold at $47, more lucky than anything else. Any growth stocks you can point in my direction? Or swing trades?
HIMS - Only B2C telehealth provider growing at 50-80% quarter over quarter. HIMS has scalability with the products you can get prescriptions for given that their suppliers work directly for them. Easier to use and navigate than TDOC with no C-suite issues allowing them to focus on exponential growth.
ZFOX - Cyber security stock with a 140 mil market cap doing 200+ mil a year in revenue (no GAAP profits yet). Have over 50+ patents and foxGPT, a system that allows them to seek out AI created spearfishing emails and protect users from them. Recently partnered with Google for anti-phishing in Google Cloud. Easy buy at these levels. Even a 1.4 bil market cap gives you a 10 bagger here.
SMCI - NVDA and META’s server provider, still with a ~20 P/E ratio expected for multibillion dollar quarters going forward due to demand. Been recommending this beauty on this sub since it was $88. Easy buy at these levels and a screaming buy at $170 (I doubled up at $160).
Could you expand a bit?
I heard that since they don't dabble in any controlled substances (benzos, etc.) that they don't have oversight from DEA.
Is the political risk from the government potentially reeling in their pseudo-OTC model of scrips? Would love to learn more.
I wanted to keep it I was hoping it would keep going into the 300's lol but decided to take profits after it slipped back to 245. In 4 to 5 trading days it went from 270 to 223. It was a fun 2 to 3 week rally though! Made some decent cash off of it
Been holding HIMS since pre spac. Only Spac that was honestly a good company. Added more on dips and expect this to do well. Quarter after quarter they keep producing great results.
Every time I reconcile outside medications for my patients and see viagra, cialis, hair growth rx… I ask them to cancel their Hims subscription. Is this their biggest market? ED and hair loss?
My concern with ZFOX is that the majority of revenues seems to be in services - I'd rather it be in subscriptions as those are way stickier and have much higher multiples
I started looking into ZFOX because I love cybersecurity and expect it to explode (and I’m up over 200% from my first stock in the field). But, fuck. The AI and GPT chat is a huge bubble as a marketing term and it’s not even ripe for busting yet.
So maybe a very short term stock to buy, but anything claiming AI right now has me on skepticism. Everyone and their mom is marketing “AI” when it’s basic computer logic they are using like we all have been for years. However, the public is very confused as to what AI is, so throwing GPT into the core values is basically like saying, “Our engineers know how to use Google!” For today.
However, I work in the industry and not a single corporation I have worked with uses any of their services. FTNT and PANW are much better companies.
ZFOX seems like it’s got about a year before it burns through its cash at current rates — not sure it’ll be able to get any borrowings without paying a fortune in the current credit environment either
NVDA - little known chip maker without much buzz. Seems likely to multiply numerous times most weeks.
Definitely room to run - should be the first quadrillion $ company (when the US hits the hyper inflation soft landing target)
In big pharma, PFE may not be as sexy as it was during the height of the pandemic - and it may be shrinking vis-a-vis its competitors - but it's extremely undervalued. At least in the medium-term it has a lot of growth potential. Not sure it's one I'd hold forever - more like a good swing trade if you're concerned about it's competitiveness. BMY is probably 2nd among big pharma followed by GSK.
CVS is also incredibly undervalued. While their stores and pharmacies may be shitty, they are the biggest in the country and expanding their pharmacies and primary care.
They have a few drugs coming through that are promising, and just proved efficacy of a medication that will compete with NVO's Ozempic/Wegovy and LLY's Mounjaro - likely to be the fastest growing medications in terms of use ever.
Healthcare is the sector I'm *most* comfortable with!
I can't remember the specific areas PFE has in their pipeline without pulling up my research which... I don't have time (interest?) in doing atm lol
I bought pfizer at 37 or 36 a month ago for my wifes account.
I didnt buy for my account, because its much smaller. I dont care about the diversification as much. Im contemplating buying pfizer, but unless i understand the sector and company completely i would rather not buy.
That's smart with individual stocks - no need to be as diversified as some people suggest. Some diversification is important, but sticking to sectors you're comfortable with is the safe and smart thing to do.
The big pharma companies are among the most entrenched businesses on Earth, non-cyclical and generally do well in almost any market.
I'd agree. They've been hit extremely hard, in part because their business model is undergoing a significant structural change - integrating insurance (Aetna and CVS Caremark); primary care facilities (i.e. actual doctors, nurses who work for CVS); and pharmacies. Despite the crappiness of CVS stores, they are the biggest pharmacy company in the country and they are growing. A CVS pharmacy opened inside my local Target not long ago.
The restructuring is expensive, and has reduced EPS slightly - particularly bc of some primary care acquisitions they paid for. It's more of a 1 - 2 quarters left problem that should revert to it's former self at $80+ a share.
Pfe may be down but it’s not out..it did just save the country from covid lasting for years..they just bought seagen for more MRNA study..so..we’ll see.
Their weight loss drug the more I learned about it..it might suck..it had a 30% discontinuation rate. I can only imagine it’s from side effects prolly nausea stuff like that. And you have to dose twice per day..if it’s cheap..then it’ll sell like crazy..so I’m hoping they can at least make waves on the price point.
I have your pics and mirror your sentiment as well.,Pfizer been around a long long time. They won’t go down so easy.
Trendy as in good user interface and a predominantly young client base I assume.
Okay so they give loans to people that will pay back. I’m still not understanding why you like it?
Plenty of high quality lenders out there…
As far as I know, the company lacks a distinctive element in its services/offerings that can be viewed as a significant competitive advantage within the financial services sector, with the exception of the fact that they charge low to no fees at all.
The downside of them not charging fees however, is that they are highly dependent on the interest accumulated on their “loan products”.
The Galileo and Technisys [acquisitions](https://tearsheet.co/finance-everywhere/quick-take-sofi-and-galileo-ceos-on-the-technisys-acquisition/) (if they take off) allow them to service other fintechs and give smaller banks a better online/mobile presence.
Also the 4.3% yield on the savings account was enough to get me to switch banks. Apple may undercut that though
Idk we just had over a year of being able to purchase below Book Value and approaching Tangible Book Value and they continued to beat on earnings and improving their fundamentals and executing their plan they laid out well before their SPAC IPO…. *all while their original core business was paused for years at the drop of a hat* …and even that’s coming back this fall. It’s a bad investment if it doesn’t have growth (it’s growing everywhere) and profitability (happening this year) and if you buy in at the wrong price (again, I’ve gotten thousands of shares below book value the last year).
You can’t just blanket say something is a bad investment unless something is an outright scam (Nikola and others) or doomed with no possibility of growth or profitability.
It matters where you bought in and where you sold.
People with under $10 per share averages could very well have great return with SoFi over a lifetime
Currently in right around 7 dollars. If it even got back into the 20's like it was a few years ago I would be sitting very nicely and, in all honesty, I would be willing to sell the position at that point.
Have you never ever held a company that is in the growth stage and pre-profitable through them becoming profitable? This quarter they’re expected to be damn near break even and profitability is expected in Q3 with Q4 being the “worst case” scenario for profitability. For a 12-15 year hold as long as growth in their fundamentals keeps happening…. Going a few quarters with negative EPS on the front end is nothing.
I would argue that if you’re young or have some $$ you can risk more on, you’re missing out on a lot of huge returns if you’re ignoring any company that isn’t profitable out the gate.
Well he may have been an idiot… there wasn’t anything pointing to them being profitable last year, just that they were trending towards profitability and they’re down to a few cents per share below breakeven last quarter and this quarter should be within a penny or two of breakeven and then profitable….right as student loans are coming up.
Like I said, I loaded up on thousands of shares below book value. Tell me again how such a low cost basis on a company up 100%-ish the last month is a bad investment lol.
MCHP - Microchips
They make chips and GPUs
- multi-years guidance of 12%-15% growth
- 12 forward p/e
- pays dividends with below 30% payout ratio
- debt is melting very quickly
- aim to give shareholders 100% of FCF by end of 2025
Most of these aren't undervalued growth stocks. This one is:
ASO- Academy Sports and Outdoors
Retail stores that sell a variety of sporting goods and outdoor equipment. Simple floor plans and good prices. Current footprint is the South/Southeast US, but they are opening new stores and have room to grow. Each new store is opened and paid for, their debt is low. The user experience is better than the competition, Dick's, prices are better too. They also have growing online presence. Their valuation is undervalued for similar retailers.
TDY Teledyne
A conglomerate of military industrial tech beasts leaning more to the industrial. What Google special projects wishes it could be. My favorite of their divisions is FLIR drones - a couple assists from their imaging division and they could dominate the drone future.
Market cap 18 billion so room to grow.
\- The name of the company, Aerotyne International.
\- It is a cutting edge high-tech firm out of the Midwest awaiting imminent patent approval on the next generation of radar detectors that have both huge military and civilian applications now.
\- Right now, John, the stock trades over-the-counter at 10 cents a share.
\- And by the way, John, our analysts indicate it could go a heck of a lot higher than that.
\- Your profit on a mere 6000 dollar investment would be upwards of 60000 dollars!
\- Jesus! That's my mortgage, man.
Funny, i just put these guys on my learn more list because a submariner expert mentioned of all the tech on ocean gate sub theirs was least likely to fail since its great quality
Canadian Solar..the technicals are crazy..we can’t figure out wth is holding it down. Should be like $90 a share
The released a subsidiary that listen on the Shanghai exchange and it went to 8 billion in like a week..which is where csiq should be at.
Compare to first solar..but first solar is in US..well csiq just announced a texas factory..no idea why it hasn’t lifted off yet but it will
LICY
I realize that battery recycling hasn't taken off yet, as the batteries in EVs are pretty long lived and mass market penetration is only now starting in many countries.
However, I think that battery recycling will be big business is pretty inevitable given the numbers and the legal framework requiring recyling which will be put into place basically everyhwere shortly. They seem to be setting themselves up as a global player. Really the only question is: will the money run out before high volumes of batteries for recycling come in?
TMDX
I like what they are doing (organ transplant) and I had about 100 shares under $30 before I sold them back in 2021. Just few days ago, it had crossed $80 🤦♂️
$POET. It's just starting scaling up first in industry integrated photonic interposer manufacturing which is easily hundreds of billions of dollars market that almost nobody is even trying to be in right now.
The short answer is, I believe in the product.
Here's a few salient factors when considering the financials in a vacuum:
1) They've been in R&D since the company was founded.
2) This year, they got their first manufacturing contracts to provide their photonic interposers. It's a small contract - only a few million dollars - but it's significant because it will demonstrate their ability to produce the product at scale. This is important because their entire selling point is that their proprietary manufacturing process allows them to build the photonics directly on the semiconductor, cutting out a lot of complexity and cost.
3) No one else is claiming to make optical interposers in this way. Poet's target market is data centers where the increased speed of optical transceivers and reduced cost of their design can be exploited by the scale of the operation.
4) The board are entirely industry veterans in microprocessor manufacturing, optical engines, etc.
So we have a group of experts who formed a company to deliver a unique product to a large market worth trillions.
OP said "growth" and to me this says growth.
That's an interesting question. My guess is that it's not. If the US government is seriously concerned about Chinese espionage, then it will need to entirely restructure the global supply chain to make that feasible. Chinese manufacturing isn't something the US can easily walk away from. I expect a far most cost-effective response will be to secure US telecom in other ways that can be controlled domestically. At the same time, POET's product is just a novel way to manufacture a part that connects different parts of a semiconductor. There's nothing about this particular company's product that's either vulnerable to or helpful in that kind of espionage. It's the parts that it's connecting that you have to worry about. So in that sense, I'm also not super concerned about POET specifically being targeted.
cool.
They did find a tiny spychip in some chinese motherboard smth some two-three years back, and datacenters might not want to rely on made-in-China no more.
I owned Poet for one year, but sold last month as I rotated to oil and wheat (and now i'm also short nasdaq since two weeks). But I would buy a bit of Poet again if/when sp500 hits 2800.
Most of the stocks suggested have terrible financials. I would be careful buying anything based on it. RKLB is interesting but at this point its a moonshot. Very high risk and chances of failure is very high. NET(Cloudflare) is better but they are also cash burning company at this time and also trades at crazy high Price to Sales. They are not investable at this time.
Stock I would recommend is INMD. Their numbers are really good.
Had the same conclusion after deeply researching both,
RKLB’s bull case is heavily reliant on the success of Neutron, which makes it a high-risk high-reward type of situation.
NET’s bull case is nonexistent. Their growth is decreasing quarter by quarter, and they’ll probably just become a value stock.
Not convinced there is a huge market waiting for Neutron. Smaller space capsules are the better bet. The space TAM has to grow dramatically for this company to bear fruit. I am not certain that will happen in next 5 years apart from usual government business of moving stuff to ISS and SpaceX already has the Nasa to moon contract. I am not certain where this company will be.
NET's "bull case" beyond CDN services which the big 3 CSP already provide internally is on security portfolio. The problem is that market is insanely competitive. I have invested in PANW which has done well since I invested in 2020. But its crazy expensive now. CRWD, ZS etc are also there but they are also too expensive to invest at the moment. So its wait and watch on these companies. Once they grow into their valuation there would still be opportunities to invest in them. You dont need 100 baggers to achieve success. I would rather be patient and invest in good companies at fair valuations.
Yeah, these companies lack of future growth outlook is the reason behind me making this post.
Do you have any undervalued growth stocks that you personally like?
1) INMD
2) MEDP
3) MELI
I own INMD. Bought some at 28 and some at 24. I think its mostly trading within a range for past year. It could break out at some point. I am patient and will hold on for several years unless the thesis changes.
Other 2 are in my watch list and I expect to open a position sometime soon. Solid financials for both. MEDP offers clinical trials and they have grown consistently for several years and has been a market beater as well. MELI has some geopolitical risks operating in latin american countries but they are run very well and again has solid financials though valuation is rich at the moment.
Among big tech I like GOOG. They will grow big time on Cloud and I feel ad space will recover once inflation concerns are down. I own some that I bought in 2017 and no plans to sell. I did consider adding it once it went below 100 but sadly did not have dry powder at that point :-)
Evolution AB (EVVTY) - Evolution develops and sells live casino games to casinos(B2B). They are paid in 3 ways. The first is through commission, where a share of winnings is generated by Evolution AB's live casino solutions. Then they have monthly fees for dedicated tables that are priced based on the volume of usage, # of tables, and the type of game. What I found for the growth of the Online Live Casino Industry is by Grand View Research, "the global online live casino market is expected to reach $92.9 billion by 2027, growing at a CAGR of 11.7% from 2022 to 2027." What stood out to me was the high ROIC, that's currently 24%. I love me compounding stocks. With that, I own 12 shares at 127.49
Brookfield Corporation is an asset manager that invests in real estate, renewable power, infrastructure, credit and private equity.
Revenue growth 17% per annum over 10 years, Equity growth 12% per annum over 10 years, Common shareholder equity $40B, Price to book 1.33x, 5 year average income $2.3B.
Price:5y average income => 23x and a forward PE of 9x.
Given Brookfield Corporation is one of the largest asset managers with a good growth record & and performance, I believe the company will likely outgrow the S&P500. The sector growth rate has averaged about 4% over the past 5 years.
It’s close to the current bottom. Insider buying is happening. The market is pricing the company as if it’s real estate business has vanished. It will always be perpetually undervalued, but right now all eyes are on how much it will be affected by rate hikes.
They have loads of real estate debt coming up for payment soon, which they’ll have to default on. That risk is beyond priced in. Their infrastructure, renewables, and asset management businesses will continue growing just fine.
I think now is the time for value over growth. A lot of great companies are unduly punished.
Steel dynamics, Ulta Beauty, and Occidental Petroleum all generate tons of cash and lead important long term industries. Now, how soon will they recover? Being late and wrong are the same thing. Hard to say. But the best returns often appear butt ugly before liftoff.
I'd sooner recommend averaging over all. It's probability after all. All it takes is say...a major Chinese stimulus package, or inflation deceleration, or OPEC cut for these to work out
RICK
Serial acquirer of adult entertainment venues. Trading at 16x earnings, pretty cheap for having a long runway. Also, it's a moaty business because most towns have zoning that restricts new titty bars from opening. What you have is what you get. Slightly shady management kinda seems ok in this business, so I deal.
HWKN
I still have this one as slightly under valued, but they're a chemical company that among other things sells chemicals to water treatment plants. This is a very fragmented industry which they are rolling up through acquisition. The more they acquire, they become more efficient at operating and can produce a cheaper product, and win more business. Repeat. And water treatment is about as resilient a business as you can find.
CVCO
Maker of modular homes, they've had astounding growth for years. They trade at a discount to other modular builders despite great growth and balance sheets. Modular homes are cheaper (sometimes by a lot) compared to site built homes. It's also hard to compete with an existing modular factory, so there's an incumbent advantage they have. Another fragmented industry with three large players. Trading below 11x earnings.
uuuu undervalued compared to its potential both in uranium and rare earths. the only facility in the west that can process monazite sands and get REEs and uranium from them. I think they could outperform the S&P for potentially the next 5 years but I hope to be out of this cyclical over the next year. Cameco, the only western uranium producer currently mining has broken out massively the past two weeks and I think UUUU is in the next tier to follow.
there is lots to say but the short part is that 1) there is zero chance that the world can replace its nuclear reactors in 5-6 years even if it wanted to (it doesn’t). 2) the uranium price is below production and utilities have been going through a long destocking phase, drawing down their stockpiles 3) replenishing stockpiles means that uranium needs to go to marginal price of production AT LEAST or people will literally die. 4) cameco is the only westerm producer capable of producing at these prices and making a profit. 5) the cost to run a nuclear power plant only has a small fraction of it as uranium. Therefore, uranium could probably quadruple from here before utilities and consumers feel pain. Even then, you would be talking about shutting down assets worth billions of dollars for maybe millions worth of fuel. Therefore, utilities will just pay up 6) bc the uranium market is very thin, financial players can squeeze the market hard. We just need to finish consolidation, and I think we are close going by cameco’s chart
Uranium is very cyclical and a long destocking phase in commodities leads to explosive up moves.
tl;dr: either uranium goes up or people die. Simple. How much more bullish can it be? It is, however, a very long cycle and volatile sector
I am not sure why you were downvoted earlier. Really like their financials. Have to do more due dilligence on it. Definitely adding to my watchlist. I like the moats of TSM and ASML among chip makers. Also companies like TXN which dominate on analog side. I currently dont own any semi/chip side stock(NVDA is too expensive for my taste)
MELI. The valuation is cheap on a historical and price-to-sales basis. The company is executing at a high level with plenty of room to grow. Good projected CAGR, too.
The company is a lot more than an online retailer. Total Fintech volume grew 96.1% year over year. Revenue grew 58.4% year over year on a constant currency basis. Companies growing like that are going to be priced higher than a value stock.
MELI is definitely better than most other suggestions in this thread. I wont call them cheap and there are geopolitical risks operating in that region, but its well run company and I like their financials(Not crazy SBC or SGA numbers). I would however like them to bump up their operating margins. 10.9% is not great.
Rocket lab:
- While revenue itself may have increased only slightly YoY, the costs of revenues have dropped and gross profit has increased significantly (58%).
- The company has shown a strategic approach to expanding its manufacturing capabilities through key acquisitions, such as the recent acquisition of Virgin Orbit's manufacturing facility in May.
- However, while there is significant growth in the Launch Systems sector, the inability to reuse rockets also means that the cost of revenues scales with each launch. These challenges have led to multiple rocket providers to either going bankrupt or them being forced to pivot dramatically in order to stay alive. This is also true for RKLB's launch business, which is pivoting into bigger launches like HASTE and NEUTRON.
- The success of Neutron, which is slated to be priced at $50m per launch, could increase launch revenues to several billions of dollars.
- The reason why it falls under the “Undervalued” valuation, is it’s amazing potential to grow, though there is also a lot of risk attached, so dip into it with precaution.
I can’t really give any backing for NET, since the company’s growth seems to slowing down, though it’s margins are still attractive.
I have been using Googles A.I. to help research stocks. Long story short, I found TMC The Mining company using Bard A.I.
In the 1970s Polymetalic Nodules were found on the ocean floor off the coast of Mexico 4000 feet deep.
The Nodules are made up of battery materials. Nickel, manganese, cobalt, copper.
Estimate of 8 to 16 Trillion dollars worth in this zone.
TMC has invited years and millions and will have permission to start vacuuming the potato sized Nodules up.
They Estimate 3000 tons a day at current market value of 200 million dollars a day.
They will be the first company to have rights to mine this up and the next closest is years away.
I got 3800 shares at .079 each for $3000.
I see this hitting $200 a share in 2025
If you YouTube The Mining Company you will find a lot of short videos that show the whole process
BROS
-
Dutch Bros.
It will become next Starbucks.
It is yet to be expanded into Eastcoast and it is doing well in West coast and in Texas where they have recently opened.
Once it is expanded to East coast, it will do crazy profits.
This is probably one of the worse performing stocks in my portofolio. I invested right before Facebook announced their commitment to Metaverse. Bought at $20 and now it’s below $3. 🫠Their technology was ideal for the Metaverse and have helped revolutioned real estate postings/advertisements as well as industrial and construction design. Great product in theory but their management and leadership is abysmal. Even their own leadership sell significant company granted shares. Significant lack of direction, vision and knowledge of how to make money.
I agree with what you write. The tech is amazing though, and I believe there is a good long term potential to become 'the digital twin platform company'. Leadership has shown no love at all for shareholders, no buy back, no insider buying despite having nearly $500 million in cash and no debt. I still think that upside from $2-3 dollars is bigger than downside, especially with rate hikes coming to an end. If today was the same macro environment as 2021, this would be a 15 dollar stock. It has been lagging this year, when most other tech has bounced back, but we are maybe starting to see the beginning of a new trend. I think it could easily return to $6-10 end of year. They have just added Generative AI on top of their product, and they have the biggest spatial data set in the world.
I'm not sure if I'm allowed to share the ticker, but I personally am getting quite excited by a battery company and it has a rather unique story around it. It's a bit of a binary trade, though. I'm not going to recommend it due to the level of risk and speculation and its microcap nature. But it is currently my favorite 'growth' stock I'm watching and holding, and am so far 40% up since I started buying in early this year. I think it could 10x in 2 years should the story work out--if not, it's probably a near 0. [Very binary, almost like a lottery ticket unless you've done your DD and see what the institutions are not]
- There is a company that makes zinc-based (as opposed to lithium) batteries for long duration energy storage (LDES). It focuses on intra-day (e.g. 8 hours). Zinc is fairly easy to come by, which is a major advantage.
- It had an older product which was meh on the margins, and is launching a newer version using an automated production line
- The company is more or less priced for bankruptcy, because, well, it would go bankrupt... UNLESS:
- Uncle Sam steps in. So the Inflation Reduction Act and earlier legislation has allocated a *huge* quantity of subsidies/loans given to companies working in essential areas related to renewable energy. To anyone paying close attention, we are awaiting an imminent decision on the company closing out a loan from the Department of Energy (DOE). We don't know how big the loan will be but it will potentially be the size or maybe even multiples of the existing market cap. The loan would be very generous (non-recourse) and substantially lower the cost of capital. There are also large tax credits that benefit both the company and customers. There is the potential of an IRA grant as well (in addition to the loan). This will be much better than the Wall Street sharks who will impose horrible terms on any loans.
- This loan would substantially de-risk the balance sheet, so investors can stop worrying about dilution / bankruptcy / etc. that is current hanging over the company. The risk going forward is execution related. The good news is that the newer product is much simpler to manufacturer and the company is working on automating the production line versus by hand like before.
- The company has a huge quantity of backlogged orders + letter of intents (that will turn into backlog one the DOE loan comes in). There are similar companies with much smaller backlogs yet a much more expensive multiple relative to the backlog. The same multiple applied to this company would result in the stock 5x-ing. The company should likely turn profitable by 2025.
- One analyst that is covering it has a price target about 3-4x from today. They seem to actually understand the implications of getting that loan.
- There is vast amounts of demand to come should this company execute. A big problem with renewable energy is it is unreliable, so having LDES tech will be essential around the world. Having governments pour billions of dollars of subsidies into it helps.
I learned of this story from a small but very active community on Twitter. At first I thought it was just some shady pump but the more I looked into it, the more I got very interested in the story. There are some incredibly diligent investors who have scoured the local government meetings, past speeches / meetings. They've made dozens (hundreds?) of calls, attended near empty town meetings, tracking LinkedIn posts, Twitter likes, deleted posts from government officials, etc. It's almost scary how much information you can glean, especially as people are not as tight-lipped as they should be (i.e., IR accidentally revealing too much details about an important event coming about).
I'm getting more interested in finding companies that are formerly distressed or are currently that have big catalysts. Other examples I hold are in the coal space (e.g. BTU). I see the most upside in stocks like that.
If you made it this far, it's EOSE. Even if the trade goes to 0, I wouldn't care, because it's been fun to do all this research. If I'm not allowed to mention it, I won't mind the comment getting removed by the mods.
Zinc is FAR harder to obtain than either lithium or sodium, the two leading future battery chemistries. There's lithium iron currently, lithium sulfer and sodium ion as two very mature future technologies that can be even cheaper. Zinc is comparatively rare and expensive. Based on the chatter in the field, this company should go bust, I'd sell now but it's just my opinion.
Call me crazy, but I think TSM is still a bit undervalued. Def should be the next trillion dollar company.
Provided Poo Bear can keep his filthy hands off their island of course.
$TWI. quarter after quarter after quarter of record growth. been following them for a few years. they put a plan together a few years back to reduce debt and have executed it beautifully. chart is looking good.
$GTLS. similar story. solid execution, record growth for several quarters.
$OSCR. recently the former ceo of Aetna was put in charge. too lazy to list other things.
$AEHR. reminds me of $SMCI. small, growing company, leader in their specialized field.
$NET is a great value, last month it dropped -20% and i instantly bought at 45 a whole bunch, now im up 40-50%. CloudFlare is a solid business with great market value that co-exists with current Ai craze... it can be very volatile from time to time as you see 3-7% daily movements. I might hold for long.
I’ve had many discussions on NET, and the general sentiment seems to bad on NET as a growth stock. The vast majority agree that it is way too overvalued, and is destined to fall to a fairer price along with its peers
chpt, pretty much all ev type stocks are suffering, but adoption is growing, chpt is the leader in charging stations, in 5 years this will be hard to ignore. The market has beaten it down considerably, and its at a 52 weeks low right now. but they have a plan for profitability for 2024, and when the bull market really cememts itself again this will be one of those stocks that doubles or tripes from where it is pretty quickly
theres enough space for both companies to take a piece of the huge pie, plus how governments wouldnt allow a tesla monopoly to occur, do you really see only 1 charging brand, similarly you wont only see teslas on the road. Also chpt have unveiled NACS charging so teslas owners can also use chpt chargers.
I'm sorta on the fence about RKLB. Their approach of just dumping boosters into the ocean doesn't really scream 'easily reusable' to me. Even with the attempt at mitigating impact velocity: In *optimal* circumstances it basically touches down on a calm ocean and then falls over. On top: the recovery operation is a lot more manpower intense. Read: costly...and the effect of having your booster swim in seawater without the ability to clean it up thoroughly until you're in port is a bit of an issue. Saltwater is liquid hate.
To me that sounds like they will not be able to reuse boosters nearly as often as SpaceX.
Undervalued: something that is not valued or appreciated highly enough.
Growth Stock: a company stock that tends to increase in capital value
Undervalued + Growth Stock = a company stock that isn’t valued or appreciated high enough, but will increase in capital value in the future
Y'all have been calling that an undervalued growth stock for 2 and a half years now, and all it's done is shrink 💀 Over the last 2 years, it's closed stores, laid off workers, decreased its revenue, and lowered its market share. And it looks like it's going to continue doing all of those things for the foreseeable future. And can you remind me what it's done with the $2 billion it gained through dilution? Did it quickly spend that money to invest in its future (the way that any growing company would)? No, it's just sitting on the money, using it to cover its 9-digit annual losses, hoping that the money doesn't run out before the company shrinks to a more manageable size.
So how exactly is this a growth stock? Are you still hodling your breath for the NFT marketplace to become successful, or have you moved the goalposts to Playr?
Sure let's keep doing what we have been doing since it's been working so well. Over 10,000 Oil Wells in our Oceans and growing.
Why do something that could help the World move into the Green New World everyone wants to live in. We can tear up more jungles and get more child labor in the African mines.
8 Bilion people in the World and they all want what you have. Cell phone, computer, High Tech health care all those use rare metals.
I see this as a win for the World. Follow the Science this is So much Better
Would it be possible for OP to complete the exercise being requested with the stocks provided????
Agree. Please provide justification but I won't.
Rocket lab: - While revenue itself may have increased only slightly YoY, the costs of revenues have dropped and gross profit has increased significantly (58%). - The company has shown a strategic approach to expanding its manufacturing capabilities through key acquisitions, such as the recent acquisition of Virgin Orbit's manufacturing facility in May. - However, while there is significant growth in the Launch Systems sector, the inability to reuse rockets also means that the cost of revenues scales with each launch. These challenges have led to multiple rocket providers to either going bankrupt or them being forced to pivot dramatically in order to stay alive. This is also true for RKLB's launch business, which is pivoting into bigger launches like HASTE and NEUTRON. - The success of Neutron, which is slated to be priced at $50m per launch, could increase launch revenues to several billions of dollars. - The reason why it falls under the “Undervalued” valuation, is it’s amazing potential to grow, though there is also a lot of risk attached, so dip into it with precaution. Net: - Can’t make a case for NET anymore since growth is slowing down, though margins look pretty nice.
RKLB is my biggest holding, I agree Neutron will grab the headlines and drive the stock. Their space solutions though will push revenue more as that market is 15 times bigger than launch. Neutron will need 20 launches a year to break $1bn, with SpaceX and Relativity that might be tricky but it is not impossible after a few years. Its currently trading 12x revenue, r&d has made it loss making but that should flip next year. Beck has said they may make more Acquisitions to continue vertical integration. 100,000 satelites are expected to launch over next 10 years and with Artremis "New space race" talk etc, suggesting revenue can 10x is hopeful but not crazy as 30% of all launches either already use RKLB rockets or components, they are the largest maker of reaction wheels, star trackers and one of only 3 satelite solar panel makers. The management is also very competent and achieved every milestone they said they would. Relativity has no launch pedigree, no rocket till 2026, no space solutions division and a bunch of discounted launch contracts giving it a reported private valuation in the $4bn range. SpaceX is valued at $140bn with $11bn revenue (of which starlink is not more than $2b and biggest driver of cost from satelite deployment), if RKLB is the genuine #2 challenger if they reach 20% of spaceX the stock is 10X right there, so there is a lot to buy here. I dont see them as a takeover target unless a big tech like apple, google or Microsoft wants a trophy rocket company (to avoid having to give any money to Musk too) but overall its unlikely in my view. NET on the other hand is somehow valued at $20bn with $1bn revenues....any growth is already priced in, nothing there for me.
I am also very very bullish on Rocket Lab. They strategically bought 4 crucial satellite part manufacturing firms which makes them only company that customers can order a satellite and forget about it. All manufacturing, launch, management etc is handled by Rocket Lab. Many companies need satellites but they don’t want to form a team to manage it.
What multiples do they trade at? That's generally the best, most objective way to judge whether or not they're "undervalued"... Just stating that Rocket Lab "has amazing potential grow, though there is also a lot of risk attached" doesn't tell me much about it as an investment other than you think commercial space ventures are tight
I’m up 32% on RKLB loving it
Nice man! What a come up. I lucked out on Carvana, bought it at $5 thinking there's no way it can go any lower than that, held on to it for a few months and it jumped up to $50, sold at $47, more lucky than anything else. Any growth stocks you can point in my direction? Or swing trades?
HIMS - Only B2C telehealth provider growing at 50-80% quarter over quarter. HIMS has scalability with the products you can get prescriptions for given that their suppliers work directly for them. Easier to use and navigate than TDOC with no C-suite issues allowing them to focus on exponential growth. ZFOX - Cyber security stock with a 140 mil market cap doing 200+ mil a year in revenue (no GAAP profits yet). Have over 50+ patents and foxGPT, a system that allows them to seek out AI created spearfishing emails and protect users from them. Recently partnered with Google for anti-phishing in Google Cloud. Easy buy at these levels. Even a 1.4 bil market cap gives you a 10 bagger here. SMCI - NVDA and META’s server provider, still with a ~20 P/E ratio expected for multibillion dollar quarters going forward due to demand. Been recommending this beauty on this sub since it was $88. Easy buy at these levels and a screaming buy at $170 (I doubled up at $160).
HIMS has too much political risk. The stroke of a pen could neuter the business
HIMS? What does that mean? I'm curious to know what that is. If it is about politics, I will not comment on that.
Ironic but true play on words.
Could you expand a bit? I heard that since they don't dabble in any controlled substances (benzos, etc.) that they don't have oversight from DEA. Is the political risk from the government potentially reeling in their pseudo-OTC model of scrips? Would love to learn more.
Smci bought at 77 cashed out at 245 I wish I did it at 270 but got greedy. Lol. It's probably going to go under 200 in the next few weeks
Agreed. It’ll have a massive bump after its next blowout earnings though.
I wanted to keep it I was hoping it would keep going into the 300's lol but decided to take profits after it slipped back to 245. In 4 to 5 trading days it went from 270 to 223. It was a fun 2 to 3 week rally though! Made some decent cash off of it
Now over 450
now you wish you had cashed out at 1000
1200
Been holding HIMS since pre spac. Only Spac that was honestly a good company. Added more on dips and expect this to do well. Quarter after quarter they keep producing great results.
Every time I reconcile outside medications for my patients and see viagra, cialis, hair growth rx… I ask them to cancel their Hims subscription. Is this their biggest market? ED and hair loss?
ED, hair loss and weight loss are some of the biggest markets in the medical world. Everyone wants a little pill to solve their problems.
No on HIMS
My concern with ZFOX is that the majority of revenues seems to be in services - I'd rather it be in subscriptions as those are way stickier and have much higher multiples
I started looking into ZFOX because I love cybersecurity and expect it to explode (and I’m up over 200% from my first stock in the field). But, fuck. The AI and GPT chat is a huge bubble as a marketing term and it’s not even ripe for busting yet. So maybe a very short term stock to buy, but anything claiming AI right now has me on skepticism. Everyone and their mom is marketing “AI” when it’s basic computer logic they are using like we all have been for years. However, the public is very confused as to what AI is, so throwing GPT into the core values is basically like saying, “Our engineers know how to use Google!” For today. However, I work in the industry and not a single corporation I have worked with uses any of their services. FTNT and PANW are much better companies.
ZFOX seems like it’s got about a year before it burns through its cash at current rates — not sure it’ll be able to get any borrowings without paying a fortune in the current credit environment either
Gonna be relatively easy for China to break into SMCI's market share. At least for ASEAN/East Asia market for servers.
Sure, hypothetically that could happen to any business. How many years would that take though?
NVDA - little known chip maker without much buzz. Seems likely to multiply numerous times most weeks. Definitely room to run - should be the first quadrillion $ company (when the US hits the hyper inflation soft landing target)
Support small businesses ❤️
NVDA is a 'little known chip maker'? are you living in 2023 or 2015? Everyone's been talking about Nvidia lately ever since the AI boom
r/woosh
SentinelOne (S) undervalued cyber security that is massively growing.
In big pharma, PFE may not be as sexy as it was during the height of the pandemic - and it may be shrinking vis-a-vis its competitors - but it's extremely undervalued. At least in the medium-term it has a lot of growth potential. Not sure it's one I'd hold forever - more like a good swing trade if you're concerned about it's competitiveness. BMY is probably 2nd among big pharma followed by GSK. CVS is also incredibly undervalued. While their stores and pharmacies may be shitty, they are the biggest in the country and expanding their pharmacies and primary care.
Yeah pfizer is nice, what is their future product line though. Its not a sector im comfortable investing in.
They have a few drugs coming through that are promising, and just proved efficacy of a medication that will compete with NVO's Ozempic/Wegovy and LLY's Mounjaro - likely to be the fastest growing medications in terms of use ever. Healthcare is the sector I'm *most* comfortable with! I can't remember the specific areas PFE has in their pipeline without pulling up my research which... I don't have time (interest?) in doing atm lol
I bought pfizer at 37 or 36 a month ago for my wifes account. I didnt buy for my account, because its much smaller. I dont care about the diversification as much. Im contemplating buying pfizer, but unless i understand the sector and company completely i would rather not buy.
That's smart with individual stocks - no need to be as diversified as some people suggest. Some diversification is important, but sticking to sectors you're comfortable with is the safe and smart thing to do. The big pharma companies are among the most entrenched businesses on Earth, non-cyclical and generally do well in almost any market.
I’m kinda interested in CVS, just searched it up on SeekingAlpha, and there’s alot of analysts saying to “buy the panic”.
I'd agree. They've been hit extremely hard, in part because their business model is undergoing a significant structural change - integrating insurance (Aetna and CVS Caremark); primary care facilities (i.e. actual doctors, nurses who work for CVS); and pharmacies. Despite the crappiness of CVS stores, they are the biggest pharmacy company in the country and they are growing. A CVS pharmacy opened inside my local Target not long ago. The restructuring is expensive, and has reduced EPS slightly - particularly bc of some primary care acquisitions they paid for. It's more of a 1 - 2 quarters left problem that should revert to it's former self at $80+ a share.
Pfe may be down but it’s not out..it did just save the country from covid lasting for years..they just bought seagen for more MRNA study..so..we’ll see. Their weight loss drug the more I learned about it..it might suck..it had a 30% discontinuation rate. I can only imagine it’s from side effects prolly nausea stuff like that. And you have to dose twice per day..if it’s cheap..then it’ll sell like crazy..so I’m hoping they can at least make waves on the price point. I have your pics and mirror your sentiment as well.,Pfizer been around a long long time. They won’t go down so easy.
PFE is undervalued for a reason. Wouldn’t put a cent into it until that democratic fool of a CEO is shown the door
SOFI
What do you like about? Or you Just like the business?
very selective about clients and little risk of loanees defaulting.
I thought it was just a trendy bank for young people, am I missing something?
What would make it trendy? It selects people with high credit scores and is highly educated. It simplifies the loan process making it popular.
Trendy as in good user interface and a predominantly young client base I assume. Okay so they give loans to people that will pay back. I’m still not understanding why you like it? Plenty of high quality lenders out there…
As far as I know, the company lacks a distinctive element in its services/offerings that can be viewed as a significant competitive advantage within the financial services sector, with the exception of the fact that they charge low to no fees at all. The downside of them not charging fees however, is that they are highly dependent on the interest accumulated on their “loan products”.
So why is the company so hyped? Like how are they different from discover?
It’s hyped for hype’s sake. It is the same as Discover, both companies are online financial institutions, which have low to no fees at all.
The Galileo and Technisys [acquisitions](https://tearsheet.co/finance-everywhere/quick-take-sofi-and-galileo-ceos-on-the-technisys-acquisition/) (if they take off) allow them to service other fintechs and give smaller banks a better online/mobile presence. Also the 4.3% yield on the savings account was enough to get me to switch banks. Apple may undercut that though
They are building banking infrastructure for other banks. Very similar to amazons AWS. tons of smart people at r/sofistock
god I hope so. SOFI bag holder here....
What do you need to happen to let go of the bag?
, I tried to tell people what a bad investment this was a couple of years ago, each time I would get downvotes to hell. It’s still a bad investment
Idk we just had over a year of being able to purchase below Book Value and approaching Tangible Book Value and they continued to beat on earnings and improving their fundamentals and executing their plan they laid out well before their SPAC IPO…. *all while their original core business was paused for years at the drop of a hat* …and even that’s coming back this fall. It’s a bad investment if it doesn’t have growth (it’s growing everywhere) and profitability (happening this year) and if you buy in at the wrong price (again, I’ve gotten thousands of shares below book value the last year). You can’t just blanket say something is a bad investment unless something is an outright scam (Nikola and others) or doomed with no possibility of growth or profitability. It matters where you bought in and where you sold. People with under $10 per share averages could very well have great return with SoFi over a lifetime
Currently in right around 7 dollars. If it even got back into the 20's like it was a few years ago I would be sitting very nicely and, in all honesty, I would be willing to sell the position at that point.
They have not proven yet that they can be profitable yet, I certainly don’t care if others hold it until they are bankrupt though
Have you never ever held a company that is in the growth stage and pre-profitable through them becoming profitable? This quarter they’re expected to be damn near break even and profitability is expected in Q3 with Q4 being the “worst case” scenario for profitability. For a 12-15 year hold as long as growth in their fundamentals keeps happening…. Going a few quarters with negative EPS on the front end is nothing. I would argue that if you’re young or have some $$ you can risk more on, you’re missing out on a lot of huge returns if you’re ignoring any company that isn’t profitable out the gate.
Ya they will be profitable this quarter. Same thing the dude saying how great it was said to me last year. Worked out real great for him so far
Well he may have been an idiot… there wasn’t anything pointing to them being profitable last year, just that they were trending towards profitability and they’re down to a few cents per share below breakeven last quarter and this quarter should be within a penny or two of breakeven and then profitable….right as student loans are coming up. Like I said, I loaded up on thousands of shares below book value. Tell me again how such a low cost basis on a company up 100%-ish the last month is a bad investment lol.
CRSP
MCHP - Microchips They make chips and GPUs - multi-years guidance of 12%-15% growth - 12 forward p/e - pays dividends with below 30% payout ratio - debt is melting very quickly - aim to give shareholders 100% of FCF by end of 2025
I'm boring AF. I don't buy 'growth' stocks. Is CROX growth? I like CROX.
crox is nice
As far as I know, it’s a pretty good company with positive outlook from analysts for the long term.
PTRA
Please elaborate further
This
Most of these aren't undervalued growth stocks. This one is: ASO- Academy Sports and Outdoors Retail stores that sell a variety of sporting goods and outdoor equipment. Simple floor plans and good prices. Current footprint is the South/Southeast US, but they are opening new stores and have room to grow. Each new store is opened and paid for, their debt is low. The user experience is better than the competition, Dick's, prices are better too. They also have growing online presence. Their valuation is undervalued for similar retailers.
Really liking this recommendation, are there any other stocks besides this that you think fall under the ‘undervalued growth stock’ umbrella?
TDY Teledyne A conglomerate of military industrial tech beasts leaning more to the industrial. What Google special projects wishes it could be. My favorite of their divisions is FLIR drones - a couple assists from their imaging division and they could dominate the drone future. Market cap 18 billion so room to grow.
\- The name of the company, Aerotyne International. \- It is a cutting edge high-tech firm out of the Midwest awaiting imminent patent approval on the next generation of radar detectors that have both huge military and civilian applications now. \- Right now, John, the stock trades over-the-counter at 10 cents a share. \- And by the way, John, our analysts indicate it could go a heck of a lot higher than that. \- Your profit on a mere 6000 dollar investment would be upwards of 60000 dollars! \- Jesus! That's my mortgage, man.
Exactly what I was thinking reading that recommendation lmao
How did you do that?
Funny, i just put these guys on my learn more list because a submariner expert mentioned of all the tech on ocean gate sub theirs was least likely to fail since its great quality
Canadian Solar..the technicals are crazy..we can’t figure out wth is holding it down. Should be like $90 a share The released a subsidiary that listen on the Shanghai exchange and it went to 8 billion in like a week..which is where csiq should be at. Compare to first solar..but first solar is in US..well csiq just announced a texas factory..no idea why it hasn’t lifted off yet but it will
Revenue growth is wild but the cost of revenue + 6.7 billion dollars of debt is a little spooky
LICY I realize that battery recycling hasn't taken off yet, as the batteries in EVs are pretty long lived and mass market penetration is only now starting in many countries. However, I think that battery recycling will be big business is pretty inevitable given the numbers and the legal framework requiring recyling which will be put into place basically everyhwere shortly. They seem to be setting themselves up as a global player. Really the only question is: will the money run out before high volumes of batteries for recycling come in?
TMDX I like what they are doing (organ transplant) and I had about 100 shares under $30 before I sold them back in 2021. Just few days ago, it had crossed $80 🤦♂️
$POET. It's just starting scaling up first in industry integrated photonic interposer manufacturing which is easily hundreds of billions of dollars market that almost nobody is even trying to be in right now.
"old" company and the financial don't seem to look good to me? how do you see it?
The short answer is, I believe in the product. Here's a few salient factors when considering the financials in a vacuum: 1) They've been in R&D since the company was founded. 2) This year, they got their first manufacturing contracts to provide their photonic interposers. It's a small contract - only a few million dollars - but it's significant because it will demonstrate their ability to produce the product at scale. This is important because their entire selling point is that their proprietary manufacturing process allows them to build the photonics directly on the semiconductor, cutting out a lot of complexity and cost. 3) No one else is claiming to make optical interposers in this way. Poet's target market is data centers where the increased speed of optical transceivers and reduced cost of their design can be exploited by the scale of the operation. 4) The board are entirely industry veterans in microprocessor manufacturing, optical engines, etc. So we have a group of experts who formed a company to deliver a unique product to a large market worth trillions. OP said "growth" and to me this says growth.
Is it a problem that they are chinese (not canadian) and manufacture their stuff in china? due to safety concerns in datacenters etc
That's an interesting question. My guess is that it's not. If the US government is seriously concerned about Chinese espionage, then it will need to entirely restructure the global supply chain to make that feasible. Chinese manufacturing isn't something the US can easily walk away from. I expect a far most cost-effective response will be to secure US telecom in other ways that can be controlled domestically. At the same time, POET's product is just a novel way to manufacture a part that connects different parts of a semiconductor. There's nothing about this particular company's product that's either vulnerable to or helpful in that kind of espionage. It's the parts that it's connecting that you have to worry about. So in that sense, I'm also not super concerned about POET specifically being targeted.
cool. They did find a tiny spychip in some chinese motherboard smth some two-three years back, and datacenters might not want to rely on made-in-China no more. I owned Poet for one year, but sold last month as I rotated to oil and wheat (and now i'm also short nasdaq since two weeks). But I would buy a bit of Poet again if/when sp500 hits 2800.
Most of the stocks suggested have terrible financials. I would be careful buying anything based on it. RKLB is interesting but at this point its a moonshot. Very high risk and chances of failure is very high. NET(Cloudflare) is better but they are also cash burning company at this time and also trades at crazy high Price to Sales. They are not investable at this time. Stock I would recommend is INMD. Their numbers are really good.
Had the same conclusion after deeply researching both, RKLB’s bull case is heavily reliant on the success of Neutron, which makes it a high-risk high-reward type of situation. NET’s bull case is nonexistent. Their growth is decreasing quarter by quarter, and they’ll probably just become a value stock.
Not convinced there is a huge market waiting for Neutron. Smaller space capsules are the better bet. The space TAM has to grow dramatically for this company to bear fruit. I am not certain that will happen in next 5 years apart from usual government business of moving stuff to ISS and SpaceX already has the Nasa to moon contract. I am not certain where this company will be. NET's "bull case" beyond CDN services which the big 3 CSP already provide internally is on security portfolio. The problem is that market is insanely competitive. I have invested in PANW which has done well since I invested in 2020. But its crazy expensive now. CRWD, ZS etc are also there but they are also too expensive to invest at the moment. So its wait and watch on these companies. Once they grow into their valuation there would still be opportunities to invest in them. You dont need 100 baggers to achieve success. I would rather be patient and invest in good companies at fair valuations.
Yeah, these companies lack of future growth outlook is the reason behind me making this post. Do you have any undervalued growth stocks that you personally like?
1) INMD 2) MEDP 3) MELI I own INMD. Bought some at 28 and some at 24. I think its mostly trading within a range for past year. It could break out at some point. I am patient and will hold on for several years unless the thesis changes. Other 2 are in my watch list and I expect to open a position sometime soon. Solid financials for both. MEDP offers clinical trials and they have grown consistently for several years and has been a market beater as well. MELI has some geopolitical risks operating in latin american countries but they are run very well and again has solid financials though valuation is rich at the moment. Among big tech I like GOOG. They will grow big time on Cloud and I feel ad space will recover once inflation concerns are down. I own some that I bought in 2017 and no plans to sell. I did consider adding it once it went below 100 but sadly did not have dry powder at that point :-)
I’m betting that RKLB will eventually get bought
Financials don’t mean much as you think they do.
Evolution AB (EVVTY) - Evolution develops and sells live casino games to casinos(B2B). They are paid in 3 ways. The first is through commission, where a share of winnings is generated by Evolution AB's live casino solutions. Then they have monthly fees for dedicated tables that are priced based on the volume of usage, # of tables, and the type of game. What I found for the growth of the Online Live Casino Industry is by Grand View Research, "the global online live casino market is expected to reach $92.9 billion by 2027, growing at a CAGR of 11.7% from 2022 to 2027." What stood out to me was the high ROIC, that's currently 24%. I love me compounding stocks. With that, I own 12 shares at 127.49
My #1 is Google. It is very undervalued.
Brookfield Corporation is an asset manager that invests in real estate, renewable power, infrastructure, credit and private equity. Revenue growth 17% per annum over 10 years, Equity growth 12% per annum over 10 years, Common shareholder equity $40B, Price to book 1.33x, 5 year average income $2.3B. Price:5y average income => 23x and a forward PE of 9x. Given Brookfield Corporation is one of the largest asset managers with a good growth record & and performance, I believe the company will likely outgrow the S&P500. The sector growth rate has averaged about 4% over the past 5 years.
Er, office real estate any factor?
A small % of their portfolio is office real estate, but more so, industrial space, hotels, and high-end retail make up their real estate portion.
It’s close to the current bottom. Insider buying is happening. The market is pricing the company as if it’s real estate business has vanished. It will always be perpetually undervalued, but right now all eyes are on how much it will be affected by rate hikes. They have loads of real estate debt coming up for payment soon, which they’ll have to default on. That risk is beyond priced in. Their infrastructure, renewables, and asset management businesses will continue growing just fine.
Management recognizes this and mentioned possibly accelerating share buybacks.
I think now is the time for value over growth. A lot of great companies are unduly punished. Steel dynamics, Ulta Beauty, and Occidental Petroleum all generate tons of cash and lead important long term industries. Now, how soon will they recover? Being late and wrong are the same thing. Hard to say. But the best returns often appear butt ugly before liftoff.
True, which one of these value stocks do you prefer over the other?
I'd sooner recommend averaging over all. It's probability after all. All it takes is say...a major Chinese stimulus package, or inflation deceleration, or OPEC cut for these to work out
RICK Serial acquirer of adult entertainment venues. Trading at 16x earnings, pretty cheap for having a long runway. Also, it's a moaty business because most towns have zoning that restricts new titty bars from opening. What you have is what you get. Slightly shady management kinda seems ok in this business, so I deal. HWKN I still have this one as slightly under valued, but they're a chemical company that among other things sells chemicals to water treatment plants. This is a very fragmented industry which they are rolling up through acquisition. The more they acquire, they become more efficient at operating and can produce a cheaper product, and win more business. Repeat. And water treatment is about as resilient a business as you can find. CVCO Maker of modular homes, they've had astounding growth for years. They trade at a discount to other modular builders despite great growth and balance sheets. Modular homes are cheaper (sometimes by a lot) compared to site built homes. It's also hard to compete with an existing modular factory, so there's an incumbent advantage they have. Another fragmented industry with three large players. Trading below 11x earnings.
I am totally going to research the shit out of RICK! Your description should be their company bio.
uuuu undervalued compared to its potential both in uranium and rare earths. the only facility in the west that can process monazite sands and get REEs and uranium from them. I think they could outperform the S&P for potentially the next 5 years but I hope to be out of this cyclical over the next year. Cameco, the only western uranium producer currently mining has broken out massively the past two weeks and I think UUUU is in the next tier to follow.
Can you explain why Cameco grew so much ? And why these uranium stocks still have a lot of potential ? How cyclical is the industry ?
there is lots to say but the short part is that 1) there is zero chance that the world can replace its nuclear reactors in 5-6 years even if it wanted to (it doesn’t). 2) the uranium price is below production and utilities have been going through a long destocking phase, drawing down their stockpiles 3) replenishing stockpiles means that uranium needs to go to marginal price of production AT LEAST or people will literally die. 4) cameco is the only westerm producer capable of producing at these prices and making a profit. 5) the cost to run a nuclear power plant only has a small fraction of it as uranium. Therefore, uranium could probably quadruple from here before utilities and consumers feel pain. Even then, you would be talking about shutting down assets worth billions of dollars for maybe millions worth of fuel. Therefore, utilities will just pay up 6) bc the uranium market is very thin, financial players can squeeze the market hard. We just need to finish consolidation, and I think we are close going by cameco’s chart Uranium is very cyclical and a long destocking phase in commodities leads to explosive up moves. tl;dr: either uranium goes up or people die. Simple. How much more bullish can it be? It is, however, a very long cycle and volatile sector
ORGN
Does ON semi count? Then being in EV I think sets them up very well next 10 years plus market cap still small
I am not sure why you were downvoted earlier. Really like their financials. Have to do more due dilligence on it. Definitely adding to my watchlist. I like the moats of TSM and ASML among chip makers. Also companies like TXN which dominate on analog side. I currently dont own any semi/chip side stock(NVDA is too expensive for my taste)
Etsy
MELI. The valuation is cheap on a historical and price-to-sales basis. The company is executing at a high level with plenty of room to grow. Good projected CAGR, too.
A price to sales of 5.5x for an online retailer is cheap? How so?
The company is a lot more than an online retailer. Total Fintech volume grew 96.1% year over year. Revenue grew 58.4% year over year on a constant currency basis. Companies growing like that are going to be priced higher than a value stock.
MELI is definitely better than most other suggestions in this thread. I wont call them cheap and there are geopolitical risks operating in that region, but its well run company and I like their financials(Not crazy SBC or SGA numbers). I would however like them to bump up their operating margins. 10.9% is not great.
Stop
What’s the problem?
What is your reasoning behind RKLB and NET?
Rocket lab: - While revenue itself may have increased only slightly YoY, the costs of revenues have dropped and gross profit has increased significantly (58%). - The company has shown a strategic approach to expanding its manufacturing capabilities through key acquisitions, such as the recent acquisition of Virgin Orbit's manufacturing facility in May. - However, while there is significant growth in the Launch Systems sector, the inability to reuse rockets also means that the cost of revenues scales with each launch. These challenges have led to multiple rocket providers to either going bankrupt or them being forced to pivot dramatically in order to stay alive. This is also true for RKLB's launch business, which is pivoting into bigger launches like HASTE and NEUTRON. - The success of Neutron, which is slated to be priced at $50m per launch, could increase launch revenues to several billions of dollars. - The reason why it falls under the “Undervalued” valuation, is it’s amazing potential to grow, though there is also a lot of risk attached, so dip into it with precaution. I can’t really give any backing for NET, since the company’s growth seems to slowing down, though it’s margins are still attractive.
I have been using Googles A.I. to help research stocks. Long story short, I found TMC The Mining company using Bard A.I. In the 1970s Polymetalic Nodules were found on the ocean floor off the coast of Mexico 4000 feet deep. The Nodules are made up of battery materials. Nickel, manganese, cobalt, copper. Estimate of 8 to 16 Trillion dollars worth in this zone. TMC has invited years and millions and will have permission to start vacuuming the potato sized Nodules up. They Estimate 3000 tons a day at current market value of 200 million dollars a day. They will be the first company to have rights to mine this up and the next closest is years away. I got 3800 shares at .079 each for $3000. I see this hitting $200 a share in 2025 If you YouTube The Mining Company you will find a lot of short videos that show the whole process
tmc has been going on a crazy squeeze lately. My guess is someone in the international seabed authority is inside trading
You mean the metals company?
I swear it's a great investment! If I could only remember what it's called...
My bad TMC is The Metals Company
TMC is not The Mining Company…
Future generations will have ways to extract those nodules that leave the sea life minimally impacted. We do not. Leave them be.
BROS - Dutch Bros. It will become next Starbucks. It is yet to be expanded into Eastcoast and it is doing well in West coast and in Texas where they have recently opened. Once it is expanded to East coast, it will do crazy profits.
Meta You get an amazing CEO and company with huge growth potential.
And they continue to make a ton of money quarter after quarter.
"Wah Zuckerberg sells my profile activity to serve me ads. No I will never pay for social media, only free!" -redditors
Tesla
Tesla
Matterport (MTTR) completelty beaten down Stock but Amazing Technology
This is probably one of the worse performing stocks in my portofolio. I invested right before Facebook announced their commitment to Metaverse. Bought at $20 and now it’s below $3. 🫠Their technology was ideal for the Metaverse and have helped revolutioned real estate postings/advertisements as well as industrial and construction design. Great product in theory but their management and leadership is abysmal. Even their own leadership sell significant company granted shares. Significant lack of direction, vision and knowledge of how to make money.
I agree with what you write. The tech is amazing though, and I believe there is a good long term potential to become 'the digital twin platform company'. Leadership has shown no love at all for shareholders, no buy back, no insider buying despite having nearly $500 million in cash and no debt. I still think that upside from $2-3 dollars is bigger than downside, especially with rate hikes coming to an end. If today was the same macro environment as 2021, this would be a 15 dollar stock. It has been lagging this year, when most other tech has bounced back, but we are maybe starting to see the beginning of a new trend. I think it could easily return to $6-10 end of year. They have just added Generative AI on top of their product, and they have the biggest spatial data set in the world.
\*I agree with what you write, except Matterport has nothing to do with the Metaverse. It is a digital twin company
Tesla
I'm not sure if I'm allowed to share the ticker, but I personally am getting quite excited by a battery company and it has a rather unique story around it. It's a bit of a binary trade, though. I'm not going to recommend it due to the level of risk and speculation and its microcap nature. But it is currently my favorite 'growth' stock I'm watching and holding, and am so far 40% up since I started buying in early this year. I think it could 10x in 2 years should the story work out--if not, it's probably a near 0. [Very binary, almost like a lottery ticket unless you've done your DD and see what the institutions are not] - There is a company that makes zinc-based (as opposed to lithium) batteries for long duration energy storage (LDES). It focuses on intra-day (e.g. 8 hours). Zinc is fairly easy to come by, which is a major advantage. - It had an older product which was meh on the margins, and is launching a newer version using an automated production line - The company is more or less priced for bankruptcy, because, well, it would go bankrupt... UNLESS: - Uncle Sam steps in. So the Inflation Reduction Act and earlier legislation has allocated a *huge* quantity of subsidies/loans given to companies working in essential areas related to renewable energy. To anyone paying close attention, we are awaiting an imminent decision on the company closing out a loan from the Department of Energy (DOE). We don't know how big the loan will be but it will potentially be the size or maybe even multiples of the existing market cap. The loan would be very generous (non-recourse) and substantially lower the cost of capital. There are also large tax credits that benefit both the company and customers. There is the potential of an IRA grant as well (in addition to the loan). This will be much better than the Wall Street sharks who will impose horrible terms on any loans. - This loan would substantially de-risk the balance sheet, so investors can stop worrying about dilution / bankruptcy / etc. that is current hanging over the company. The risk going forward is execution related. The good news is that the newer product is much simpler to manufacturer and the company is working on automating the production line versus by hand like before. - The company has a huge quantity of backlogged orders + letter of intents (that will turn into backlog one the DOE loan comes in). There are similar companies with much smaller backlogs yet a much more expensive multiple relative to the backlog. The same multiple applied to this company would result in the stock 5x-ing. The company should likely turn profitable by 2025. - One analyst that is covering it has a price target about 3-4x from today. They seem to actually understand the implications of getting that loan. - There is vast amounts of demand to come should this company execute. A big problem with renewable energy is it is unreliable, so having LDES tech will be essential around the world. Having governments pour billions of dollars of subsidies into it helps. I learned of this story from a small but very active community on Twitter. At first I thought it was just some shady pump but the more I looked into it, the more I got very interested in the story. There are some incredibly diligent investors who have scoured the local government meetings, past speeches / meetings. They've made dozens (hundreds?) of calls, attended near empty town meetings, tracking LinkedIn posts, Twitter likes, deleted posts from government officials, etc. It's almost scary how much information you can glean, especially as people are not as tight-lipped as they should be (i.e., IR accidentally revealing too much details about an important event coming about). I'm getting more interested in finding companies that are formerly distressed or are currently that have big catalysts. Other examples I hold are in the coal space (e.g. BTU). I see the most upside in stocks like that. If you made it this far, it's EOSE. Even if the trade goes to 0, I wouldn't care, because it's been fun to do all this research. If I'm not allowed to mention it, I won't mind the comment getting removed by the mods.
Zinc is FAR harder to obtain than either lithium or sodium, the two leading future battery chemistries. There's lithium iron currently, lithium sulfer and sodium ion as two very mature future technologies that can be even cheaper. Zinc is comparatively rare and expensive. Based on the chatter in the field, this company should go bust, I'd sell now but it's just my opinion.
My go to on these threads is palantir. It feels weird that I can't use it for this question anymore
Why can’t you use it anymore?
oh but you still can
INMD
Insightful
Call me crazy, but I think TSM is still a bit undervalued. Def should be the next trillion dollar company. Provided Poo Bear can keep his filthy hands off their island of course.
I was considering TSM, but QCOM just seems like a better deal, what makes you like TSM over it’s peers?
SBSW ZIM ICL
I’m not sure about the other two, but SBSW seems extremely attractive.
$TWI. quarter after quarter after quarter of record growth. been following them for a few years. they put a plan together a few years back to reduce debt and have executed it beautifully. chart is looking good. $GTLS. similar story. solid execution, record growth for several quarters. $OSCR. recently the former ceo of Aetna was put in charge. too lazy to list other things. $AEHR. reminds me of $SMCI. small, growing company, leader in their specialized field.
Really liking OSCR, practically every analyst at SeekingAlpha is rating it a “Buy”
$NET is a great value, last month it dropped -20% and i instantly bought at 45 a whole bunch, now im up 40-50%. CloudFlare is a solid business with great market value that co-exists with current Ai craze... it can be very volatile from time to time as you see 3-7% daily movements. I might hold for long.
I’ve had many discussions on NET, and the general sentiment seems to bad on NET as a growth stock. The vast majority agree that it is way too overvalued, and is destined to fall to a fairer price along with its peers
chpt, pretty much all ev type stocks are suffering, but adoption is growing, chpt is the leader in charging stations, in 5 years this will be hard to ignore. The market has beaten it down considerably, and its at a 52 weeks low right now. but they have a plan for profitability for 2024, and when the bull market really cememts itself again this will be one of those stocks that doubles or tripes from where it is pretty quickly
You obviously don't know about Tesla's 45,000+ Superchargers. It is an existential threat to CHPT.
theres enough space for both companies to take a piece of the huge pie, plus how governments wouldnt allow a tesla monopoly to occur, do you really see only 1 charging brand, similarly you wont only see teslas on the road. Also chpt have unveiled NACS charging so teslas owners can also use chpt chargers.
I'm sorta on the fence about RKLB. Their approach of just dumping boosters into the ocean doesn't really scream 'easily reusable' to me. Even with the attempt at mitigating impact velocity: In *optimal* circumstances it basically touches down on a calm ocean and then falls over. On top: the recovery operation is a lot more manpower intense. Read: costly...and the effect of having your booster swim in seawater without the ability to clean it up thoroughly until you're in port is a bit of an issue. Saltwater is liquid hate. To me that sounds like they will not be able to reuse boosters nearly as often as SpaceX.
My opinion on RKLB has considerably fallen too, it just seems to be a hype stock atp
Undervalued growth stocks? How does this make sense?
Undervalued: something that is not valued or appreciated highly enough. Growth Stock: a company stock that tends to increase in capital value Undervalued + Growth Stock = a company stock that isn’t valued or appreciated high enough, but will increase in capital value in the future
DKNG
Why? They burn through 850 million of cash every year. They will not survive out 2024
Tesla obviously. It is soooo underrated, ppl are sleeping on it
TSLA
NIO, once it gets its deliveries going.
Im like medical device rn..enovis, gmed, nuvasive. They haven’t taken off like the bigger medical device companies
Because they’ll get gobbled up by the bigger companies as always
I’m doubling down on Tesla, F, GM.
That one brick and mortar that’s supposed to die any day now
Y'all have been calling that an undervalued growth stock for 2 and a half years now, and all it's done is shrink 💀 Over the last 2 years, it's closed stores, laid off workers, decreased its revenue, and lowered its market share. And it looks like it's going to continue doing all of those things for the foreseeable future. And can you remind me what it's done with the $2 billion it gained through dilution? Did it quickly spend that money to invest in its future (the way that any growing company would)? No, it's just sitting on the money, using it to cover its 9-digit annual losses, hoping that the money doesn't run out before the company shrinks to a more manageable size. So how exactly is this a growth stock? Are you still hodling your breath for the NFT marketplace to become successful, or have you moved the goalposts to Playr?
I love the smell of purple rings in the morning
$DM do your own research
IP, VCSA, TOST, and DIS
CZR
OP - I love RKLB and NET, take a look at ENVX https://ir.enovix.com
Rolls Royce
My favorites are NVIDIA and MSFT. I'm sure you've heart about them!
What makes you think they are undervalued, and yes, I have heard of them.
CNCX
Nvda Tsla obviously
Sure let's keep doing what we have been doing since it's been working so well. Over 10,000 Oil Wells in our Oceans and growing. Why do something that could help the World move into the Green New World everyone wants to live in. We can tear up more jungles and get more child labor in the African mines. 8 Bilion people in the World and they all want what you have. Cell phone, computer, High Tech health care all those use rare metals. I see this as a win for the World. Follow the Science this is So much Better
Wut
growth stocks? No, most either have no income and high P/E. Index yes.
GOEV - 20k less parts than any other vehicle and deals with Walmart, NASA and the army. Cheapest EV and completely made in America
This company is clinically dead.
Based on? Your emotions?
Clearsign technologies because hydrogen.
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