Next new ideas (preview) plus update
Two new ideas out soon + update on AWRE (with others on the way)
Two new stock ideas are on deck for publication in November
The first is an extreme contrarian “left for dead” name that is perhaps the most hated security I have ever seen. A deeper look suggests there is a lot of value - a reasonable estimate of net asset value and free cash flow to equity reveal eye-popping numbers. I see +100% upside potential with a clear catalyst for realizing this value.
The second name has a massive moat yet is being valued like a depleting ice cube. I believe the future is brighter for the company’s existing technology than the market thinks, and that new products in development have enormous potential. The company expects to generate more than its entire market cap in free cash flow over the next five years. Simply trading to peer multiples (which in most cases are lower quality businesses) will create substantial upside.
In addition to these new ideas, look for a slew of updates on previously covered ideas - the first of which is below. If there is something you would like me to review, feel free to respond to this email.