Transcription
Imagine finding a stock that's just going to go up 10x. Well, Hamish has just found a whole list of them, and we're going to break them down for you into three categories.
The first are suitable for investors. So, these are real businesses with real margins, not just some pie in the sky, in the future we're going to cure cancer type thing.
Then we're going to have the second category, and those are higher risk. They have growth potential, but they still need to prove that they're as smart as Hamish here.
And then we have number three, which is probably the the golden space to be in, which are high growth stocks with an actual business, actual revenue, actual margins. So, those are probably the sweet spots. We'll run through those three for you to make sure you get the most out of this video.
I'm also going to give you the full stock data for all of the stocks mentioned here, plus a few more. And you can download that at felixfriends.org/10x. And we'll put the link down below in the description as well. That'll give you access to this research doc that I'll be referencing a couple of times throughout this video, but we're not going to go through every single number here. So, you might want to download that before we get started.
Now, if you're actually serious about your portfolio and you're not just a stock hunter, then also sign up for the Saturday live training because I'm going to shake you up on that Saturday. I'm going to give you some wisdom. I'm going to give you some mindset shifts that'll very likely make you into a much much better investor. And you can do that as well. Fenix/training with a thousand free spots for that and it's going to be tremendous fun.
Now jumping literally straight into it. The first stock on our list and remember these are the companies that actually look decent from a fundamental point of view. How do I make that distinction? Well, here we have a first table here is the quality table. Like these are kind of my quality stock metrics and the number I've sorted them by is the return on capital invested number. By the way, once you download this, you can just um you can just make a copy of this file and then you you can mess around with it to your heart's content.
So, we're looking at return invested capital. Generally speaking, you want them to be above 10%. Why? Because it says that if they invest $100 into something in their business and they're making 33% return on capital, it means well in the next year they're going to get $33 back. So, it'll take him three years to make that money back, which is pretty decent. Actually, a 33% return is pretty good. But anything below 10 becomes a bit like, well, could just buy the S&P 500 and you probably do better, right? So, we're looking at that.
So, the first stock here on the list is Dave. Dave is a fintech disrupting payday loans company. Low fee cash advances and banking towards very strong gross margin 67% which means they haven't got that much competition or it's hard to replicate positive cash flow. Yeah. So they actually generating money and they do quite quite a good job at sort of cross-selling a bit like the Sofi do do and then the last earnings was 170 130 million revenue beating market expectations here and this actually seems to be a decent business.
The second stock on our list and and by the way I will look at one or two charts here because it's important to understand entry points. There's a little bit of timing still required even if you're a fundamentalist. Um and and cover a little bit about today but we're going to really cover that in a lot more detail if you join us on Saturday for the live training link as I said down below.
The second stock here is DLO. What do they do? Well, they enable global merchants to reach more emerging markets like Latin America for example. A sort of payment bridging. Um, now they're growing their profits pretty nicely, pretty decent ROIC, return on invested capital, massive interest coverage ratio, which means what? Means they got very little debt, right? And they're expanding into new regions as the whole digital payment boom is obviously something that's just booming absolutely everywhere. But it's not the greatest grower because if you look at the forward PE, so the the price of our earnings in two years is expected to be 19. Right now it's 20. So, we're expecting a very small amount of profit growth here in this one. So, maybe this is not top of list for you.
So, what would be better? Well, depending on where your ethical shoes sit, gambling.com. Yeah, it's a very asset light affiliate model that drives traffic to online betting sites. Very impressive profits. 25% profit margin, 94% gross profit margin. That's insane because they don't they don't do much, right? So they're just like they're just an affiliate essentially. And revenue is growing very consistently here because well gambling adoption sadly rises. Don't gamble children. It's a waste of life. But they're positioned for scaling and they don't need to invest a lot of money to scale. So it's a very good business. So if you're a you know belief structure and and morals and ethics and so on allow you to invest in gambling.com, it actually looks like a pretty decent business.
Next on the list, we have Root, Inc., which is a telematics-based auto insurance pricing um well, sort of reward for safe drivers type business. Does that make sense? Um well, it doesn't. Just look at the numbers. ROIC is pretty impressive. Margin is a bit weak. Um but they're getting more profitable. Earnings per share trend score is 100%. So, they're improving their profits every single quarter. No matter what happens, they're gaining market share. It's a bit of a competitive space, but the data-driven approach seems to be a good one. Jeff has a buy rating on them, although they lowered their price targets slightly. Let's have a quick glance at their stock chart. Yeah. So, the last earnings was a bit of a disaster. So, for me, is this a timing point where I buy it? No. But it's worth adding it to the watch list to see if this consolidates and comes back up and reclaims that yellow line here which is the 50-day moving average line. And this is in trade vision software that we we set up. So it didn't do the breakout that you know the market wanted to sort of trading sideways said it's come down but it could of course create an opportunity if this is overdone and you see this climbing back up but a lot more on this on Saturday if you are really as I said serious about you know investing we then have legacy education and they offer basically affordable career training health care and that sort of thing very good operating margins and revenue growth is pretty astounding. Whereas revenue growth actually, it's in my next list here. The second table is are the growth metrics that we look at and revenue growth is 37% which is pretty decent. And as long as there's skilled labor demand, these guys will basically do well. They're also doing some acquisitions and it's actually a real business. It's actually a real education business out there. So I'm kind of quite liking that one. Again, don't just run out and blindly buy it. Right.
Next on our list we have Pagaya Technologies and that's AI powered embedded lending. So they partner with banks pretty good overall financial ratios expanding network. Recent focus is on credit analysis which drives more and more partner integrations. There's a price target out there for Tom JMP to $35 with a with a with a buy. What's it trading at right now? PGY. Yeah, it's a it's a 28. So, it's a reasonable upside if the loans, sorry, the analysts are ever right. So, there there's another idea for you.
Now, maybe you're thinking, "Okay, Felix, they're all a bit all right, but they're a bit boring. I want I want like big freaking potential, like huge potential. I want revenue growth. That's through the moon." Okay, so I made a second table for you, which is called growth. And in that, I've sorted the table by the revenue growth column. You can resort these once you make your own copy. And what are we looking at? Well, the first stock that has 128% revenue growth, now we're talking real growth, is Irene Limited. Is that how you how you you pronounce it? I don't know. It's a Bitcoin miner. Very efficient. They use renewable energy. They're diversifying into AI computing. I mentioned in the other day on on on a video. Very very good high gross margins. I mean 91% gross margins, which is extraordinary. But this is going to be a bit volatile crypto prices to ever dip. Their hash rate expansion and record revenues basically give them some momentum. And we also have a Republican congressman, I believe, uh Cleo Fields recently buying buying those shares. Not that that necessarily means uh anything, but it's it's an interesting data point. Uh and and Irene, here she is. Or is it I was it or something? I'm sure the the cryptocrat will will find me eventually and and and correct me on this one. Um, you can also see here in in Trade Vision all the latest news and all that's going on here. The price target upgrades and so on. Um, looks pretty good where it's sitting right now. Now, might wanted to go just a little higher. We talked about that on Saturday more and I would actually be more interested. I would actually be more interested if this stock is a little bit more expensive. Counterintuitive, I know, but often the way um, root, we just talked about that data-driven autoinsurer. That's the second fastest growing company on here. Almost 60% revenue, which is growth, which is pretty pretty incredible. And it's basically because they improve delinquency rates, right? So obviously the industry likes it.
And then we have one that's talked about a lot which is Oscar Health. It's a mobile first health insurance company disrupting the traditional models again with AI. Very good membership growth. It's a massive market. It's a bit dependent on partnerships. Um growing at 48% their revenue. Margins are absolutely abysmal which is why these are higher risk plays. But the stock is at an interesting point. And we're seeing this a lot in in growth stocks at the moment where they're sort of in this kind of position. They're kind of hoping and praying and wishing from rate for rate cuts. That's the way I look at it. Um and and if we get those, which I believe we will, then this could be a nice one here. So that yellow line there is the 50-day moving average line. You want to break out above that. So we didn't quite manage it as I'm recording this. By the time you're watching this, please look at the the stock chart yourself and Trade Vision and you'll be able to see that. And if we do close above the 50-day moving average line here and above the recent resistance, then I think there is a pretty decent chance we're going to we're going to actually see some some breakouts here, which is of course what we're looking for. And it would take the stock out of a very very very long consolidation phase here, right? The stock basically hasn't done anything since late 2024. And you see that with a lot of the stocks in the space like Lemonade and all these kind of guys.
We then have Transmedics Group which is still growing at a respectable 48%. It's an organ care system. It basically extends donor viability for transplants. So it's a very niche thing but obviously hugely important if you want an organ, right? Very strong net revenue growth from network expansion, recurring sales, high growth medtech space generally speaking, uh, which is which is a good space. I'm liking it. Ticker symbol is TMDX and it's gotten a little bit of a recovery traction here. It's it's it's again above the sort of it's all over pattern that we were in. It survived a head and shoulders at the top here. That was the that was the the that was the exit point here. That one there, that was the run run run run point and it's recovered and it's back to where it started. So, it survived that. I also read that options activity on this one had gone through the moon. Let me just have a look at that in trade vision for you. Um, but you can of course look up yourself as well. TMDX and yeah, that's a bit for a small stock like that. We don't usually see a lot of large institutional options positions which which these are. So it's kind of an interesting one. Uh very interesting.
Um, next we have on our list ZA Holdings, which is an AI marketing platform serving the big boys, the Fortune 500 customers, and they have been growing their revenue quite quite nicely, doing a good job cross-selling. And you notice all of these have the sort of AI theme, right? So, the AI theme is definitely going to work.
And then I talked about Lemonade, didn't I? I talked about Lemonade. And there's basically again an AI-driven insurer for renters. What do they call themselves to the after the COVID bubble? But they were just we didn't have AI then did we? So what kind of insurer were they then anyway? Now they are yeah renters, homeowners expanding into more product lines um which is going to give them more customer loyalty and cheaper cross-selling and that sort of stuff. Uh so it is down tremendously. It is insanely heavily shorted but it is one of those stocks that has the potential to undo some of the horrors that it has inflicted on shareholders. And if it does that um and goes back to anywhere near the 2021 highs, you can see there's a big big leap potential in there, right? Which is why it's it's on the list.
Now, what about the the sort of sweet spot stocks here? The ones that are high growth and have high quality fundamentals. So, we're looking at good gross margins, high return on invested capital, and revenue growth. But they're really only two. Um and that is legacy education. They the career training guys right solid margins from affordable programs essentially in the sort of high you know wage slave training kind of space uh very good ROIC steady demand for skilled workers means the sustainability here and the stock is well it's looking pretty good it's had a pretty nice run up it's in a little bit of a consolidation phase right now so either you can look at it as and go well this is sort of the the the dip moment buy on a pullback which is kind of where it is successfully bounced off the the dips here or if you're a bit more risk averse could look at when it exceeds the previous highs. Right? Again, I'm not telling you to buy it. I'm just saying make this the beginning of your research, never the end.
Secondly, we have Dave, which is that fintech accessible banking, high margins from from from fee structures and cash conversions, pretty good revenue expansion via more user signups and and and they basically deal with the underserved markets, the underbanked, if you will. Uh right now, I am not loving where it's sitting right now because for me, I don't really buy stocks below the 50-day moving average. It is forming some sort of support level here around that $180 mark. And what I'd like to see is I'd like to see this pull back up, cross over the 50-day moving average line, and then that's the point where I would be more interested at this, but I pay a lot of attention to that kind of stuff. Maybe you are a bit more more easy going. But you know, the market moves in patterns. You get a consolidation, you get a breakout. You get a consolidation, you get a breakout. Right? What have we had here? Well, we've had a pretty significant breakout pulling back a little bit here. So, we are in some sort of consolidation phase right now. So, that's the way I look at at that.
So, if you got some value out of this, you want to you want to go a little bit deeper into the into the data, don't just blindly buy stuff, obviously go to felix.org/10x, download this, and if you are serious about that portfolio of yours and that plan to actually make that work for you to get you out of your rat race or make your retirement better or whatever you have you've got planned. Um, come and join us on Saturday for an actual live training. Phoenix.org/training. Thanks for tuning in. I wish you all the best. The biggest bank in America just warned that there is a shortage of kittens around here. Unlikely. But in all seriousness, they're warning that one sell signal just got flagged, which is actually been insanely accurate over the