In this report, we review a small cap company that specializes in providing semiconductor and software solutions for Advanced Driver Assistance Systems (ADAS), including light detection and ranging (LiDAR), connected cars, user experience, and electrification applications. The company's technologies serve as the foundational elements for both electric and autonomous vehicles, with a focus on enhancing in-cabin experiences and seamless connectivity to mobile platforms. In this report, we analyze the company’s business model, its market opportunity, financials, valuation, risks, and then finally conclude with our opinion on whether investing offers an attractive balance between risks and rewards.
Amazon: Ranking “The Magnificent 7” for 2024
2023 was largely a tale of two markets. The “S&P 493” (roughly two-thirds of the index, by market cap) was up 20.3% (on average), while the seven largest mega-cap stocks (i.e. the “Magnificent 7”) were up ~100%, on average (see table below). In this report, we rank each of the Magnificent 7 stocks for 2024, with a special focus on Amazon (including an update on its business, its four big growth opportunities, valuation and risks). We conclude with our stern opinion on investing in Amazon (and the Magnificent 7) in 2024, especially as compared to non-mega-cap growth stock opportunities.
Next Gen AI Data Center: Massive Disruptive Upside
The data center company we review in this report is the epitome of a high-risk / high-reward opportunity, and the odds appear tilted strongly towards high reward (based on the massive secular opportunities: mainly explosive growth in Artificial Intelligence, and to a lesser extent blockchain hosting). This isn’t the type of stock you bet the farm on, but it’s absolutely worth considering for an allocation within a prudently concentrated high-growth portfolio. In this report, we review the business, the opportunities, valuation and risks, and then conclude with an important takeaway.
Big EV Upside for this Tiny Specialty Chemicals Company
As inflation slows, the fed gets less hawkish and the market builds momentum heading into 2024, the shares of some high growth stocks remain depressed despite the fact that business is accelerating rapidly. The specialty chemicals company we review in this report has a healthy “energy industrials” business (servicing oil producers, refiners and the like), but it is the company’s tie in to electric vehicles (thermal barriers used in battery packs) that make the disruptive upside potential most compelling (for example, the shares have nearly 90% upside compared to the consensus Wall Street price target, and they’re rated “strong buy”). In this report, we review the business, the growth potential, the valuation and the risks, and then conclude with our strong opinion on investing.
Small, Under-the-Radar, High-Growth, High-TAM, SaaS Stock
The Software-as-a-Service company we review in this report has a lot of attractive qualities, including a leadership position in a large total addressable market (“TAM”) where growth is being driven by increasing cloud-based connectivity (i.e. the Internet of Things (“IoT”)). It’s also a “smid” sized company ($2.7B market cap) and trades at a compelling 3.1x forward sales. In this report, we review the business, the growth opportunity, the valuation and the risks. We conclude with our strong opinion on investing.
Visa: Big Dividend Hike, Massive Share Repurchases
Technology-driven payment processor, Visa (V), recently announced another big dividend hike (15.6%) and a massive $25B share repurchase program. And this industry-leading company is benefiting form the enormous digital payments secular trend. It also has one of the most impressive net profit margins you’re ever going to see. In this report, we review the business, the market opportunity, the valuation, the dividend and the risks. We conclude with our strong opinion on investing.
Monolithic Power: 40 Top Chip Stocks, Ranked
The world is being “digitized,” and besides software, semiconductors are the "nuts and bolts" making it all happen (in datacenters, on devices, in the cloud and just about everywhere else too, considering the expansive "Internet of Things" ("IoT")). In this report, we share data on 40+ top semiconductor stocks, ranked by net profit margins (a particularly important metric in the currently challenging macroeconomic environment). We have a special focus on Monolithic Power Systems (MPWR) an "offense-and-defense" chip stock, including a review of its business, financials, valuation and risks. We conclude with our strong opinion on investing in semiconductors in general, and Monolithic Power in particular.
Despite 28 Years of Dividend Growth, This Materials Company is Hated
With an increasingly strong tie in to alternative energy, this materials company is absolutely hated right now. The shares are ~60% below their 52-week high, yet the dividend is safe (and growing for 28 consecutive years), and the shares are very undervalued. In this update, we review why the shares are down (plenty of news), what we believe the shares are actually worth (they have significant upside) and why we think the stock offers a rare (and highly attractive) opportunity for healthy dividend growth and dramatic share price appreciation.
Big Data: Climbing “The Wall of Worry,” Attractive long-term play in AI / ML
Like a lot of stocks that started trading publicly during the pandemic bubble, there has been a lot of skepticism associated with the one we review in this report. For example, naysayers decried that it wasn’t profitable (now it is), the company could never successfully expand from government to commercial (now it has), stock-based compensation was too high (now it’s not) and the whole big-data theme was dramatically overblown (however, machine learning and artificial intelligence are now big revenue growth drivers). In this report, we review the business, the financials, current valuation and risks. We conclude with our strong opinion on investing.
Innovative Staples Stock—Disrupting a Big Market
The innovative consumer staples stock we review in this report is involved in the creation, promotion, and distribution of functional beverages, liquid supplements and protein bars. We analyze its business model, market opportunity, financials, valuation and risks. And then conclude with our strong opinion on investing.
AI Will Supercharge This Attractive High-Growth SaaS Stock
The SaaS (Software-as-a-Service) business we review in this report was already benefiting dramatically from its leadership position in the massive digital revolution megatrend (which, by the way, is still in its early innings). However, by the very nature of the business (the company has immense well-organized data), Artificial Intelligence (“AI”) technologies will supercharge the value it brings to clients and the growth rate of its profits. In this report, we briefly review the business, its growth and valuation, and then conclude with our strong opinion on investing.
Meta AI: Sustaining the Money-Printing Machine?
Meta (META) makes money through advertising on its four main assets, Facebook, Instagram, WhatsApp and Threads (they’re all basically communications aps). But how will the business be disrupted by newly emerging (and rapidly accelerating) Artificial Intelligence (“AI”) technologies? We answer that question in this report, as well as review Meta’s growth, valuation and competitive advantages. We conclude with our strong opinion on investing.
Rivian: Big Risks, Big Rewards. Buy, Sell or Hold?
You’re likely aware electric vehicle (“EV”) sales are on a high-growth trajectory. And you may also sense the growing popularity of Rivian Automotive (RIVN) Trucks, SUVs and Electric Delivery Vans. But are Rivian shares a buy, sell or hold? In this report, we review Rivian’s business model, its market opportunity, financials, valuation, risks, and then conclude with our strong opinion about investing in Rivian.
SoFi Stock: Outlook, Despite Biden, Student Loans Resuming, Growth Accelerating
The Supreme Court has ruled, and the Biden Administration is largely abandoning its fight to permanently cancel student loan debt for millions of Americans (until 2024, an election year, when the new plan will be touted). So what does this mean for SoFi, an already fast-growing fintech that expects its revenue to accelerate as federal student loan payments are now set to resume? In this report, we review how SoFi has been growing its business during the student loan pause, how it will benefit going forward, the company’s recent financial performance, valuation and risks. We conclude with our strong opinion on investing in SoFi.
Super Micro Computer: Big Volatile Secular Growth (Artificial Intelligence, High-Powered Computing)
If you like to invest in powerful secular growth opportunities, Super Micro Computer (SMCI) has likely caught your eye. This developer and manufacturer of high-performance servers and storage systems is benefitting dramatically from explosive secular growth in artificial intelligence (“AI”) and high-powered computing. The total addressable market opportunity is enormous. In this report, we review the business, the market opportunity, financials, valuation and risks, and then conclude with our strong opinion on investing.
Is Quantum Computing The Future? This High-Growth Stock Is Worth Considering
The company we review in this report harnesses the power of atomic ions found in nature to develop quantum computing systems that are widely regarded as surpassing traditional computer technologies in both quality and scalability. Founded in 2015 and first trading publicly in late 2021, the company is relatively small, but growing rapidly and supported by very large long-term secular disruption opportunities. We review the business, the market opportunity, financials, valuation, risks and then conclude with our opinion on investing.
Long-Term Lithium Deficit: We're Playing It with this Stock
The company we review in this report is very profitable, growing rapidly, and the business benefits from a lithium supply deficit that will likely remain in place (and support strong profits) through 2030 and beyond (courtesy of demand largely for electric vehicle batteries). The company just recently announced quarterly earnings, whereby they raised forward guidance. But are the shares a good investment? In this report, we review the company, the lithium opportunity, financial performance, growth strategy, valuation and risks. We conclude with our strong opinion on investing.
Attractive Fintech Disruptor (Q2 Earnings Update)
The fintech company we review in this report just announced quarterly results and they were impressive. Specifically, the company reported record revenue, increasing profitability and robust member and product growth. In this report, we highlight a few strong reasons why you might want to consider investing in this opportunity, including its strong financial performance, diversified revenue streams, strategic growth initiatives, large market opportunity and its valuation. We are currently long the shares in our Blue Harbinger Disciplined Growth Portfolio.
Top Growth Stock: Cloud-Based "Data in Motion," Risk-Reward Considerations
This company is on a mission to “set data in motion.” It provides a data platform which is designed to help businesses manage and process data in real-time from various sources. Traditional database technologies typically focus on storing and retrieving data that is at rest. In contrast, this company’s platform is built around an open-source distributed streaming platform, which enables the processing of data in motion or data streams. The company also has plans to integrate its platform with popular AI systems, further expanding its product offerings and strengthening its position in the industry. In this report, we analyze the business model, market opportunity, financials, valuation and risks, and then conclude with our opinion on investing.
Wide Moat Semiconductor Company: Two Massive Secular Trends
The non-mega-cap semiconductor company we review in this report is growing rapidly as it benefits from two massive secular trends: (1) the cloud (and artificial intelligence), and (2) dramatically increasing technology in the automotive industry (i.e. its chips have increasing applications in new cars). Also, this wide-moat founder-led company has impressive profit margins (important in the current macro environment), and generates tons of cash (for increasing dividends and share repurchases). If you are looking for an attractive “offense-and-defense” investment opportunity, these shares are worth considering.