Hi All 👋
Continuing my new series which gets released every Sunday/Monday before market open where I look at some potential adds/trims/buys/sells for the week.
The first 3 will be open to all and the last 2 will be for paid subscribers.
Last week we looked at 👇
Opendoor Technologies | OPEN: OPEN fell ~11% last week as I suspected. They hype was slightly too much for the fundamentals, but with that being said if we do get a further pullback into the low $4 range this could be worth more of a look.
Intel | INTC: Pretty uninteresting week for INTC last week. Definitely worth a watch though.
SES AI | SES: SES hasn’t moved much since earnings last month; however, they do remain very cheap but operate in quite a high-risk niche. I do currently own a small amount of SES.
Ondas Holdings | ONDS: ONDS flew 30% last week up to $5.86 which was nice for the swing trade portfolio, though it definitely makes ONDS far too pricey for me to consider adding to now.
Honeywell International | HON: Not much movement for HON last week but they still remain nicely at the 100 and 200 MA.
1. Lemonade | LMND
LMND gave a really nice pullback over the last week to $52 after a nice run up to $60. Paid subs will know that LMND is my biggest position by quite some distance that I continue to add to even at today’s levels.
Technically I understand LMND doesn’t look great as it’s a bit overstretched but my long-term view on LMND remains extremely bullish.
When you have a company estimated to:
Grow revenues at 63% next year,
Grow EBITDA at 65% next year,
Grow FCF at 115% next year,
Whilst still trading at a P/S of 4.2x (and with a model that suggests a +$200 PT), there’s quite a lot of conviction for me to continue to build this position. I will continue to DCA into LMND, but if we get lucky enough to see LMND in the $40 range again (around the MA’s) then I will likely add ~$5,000 - $10,000 in one go to make my position ~25% of my portfolio.
2. Abercrombie & Fitch | ANF
ANF has taken a plunge a lot with a lot of other apparel companies like NKE, DECK, and LULU, however I think there’s some very good value to be found here especially during a more uncertain time when some of our high growth stocks may not be the best plays. If you’re looking for high growth, ANF is not the one, but if you’re looking for turnaround play with huge share buybacks (funded from FCF), and pretty good technicals for a 100% runway to early 2024 levels then ANF could be a great play.
3. Onto Innovation | ONTO
I’ve touched on ONTO a few times before, but I think technically they’re in a great spot, perhaps one of the best-looking charts out there. They’re trading well below the 200 MA and right on the 100 MA with a fairly big gap up to $123 to fill. There’s many analyst targets out there with +$200 PT’s.
Fundamentally, they’re very good too.
ONTO are growing EBITDA at 24% CAGR over the next 2 years whilst trading at current NTM EBITDA multiple of 16x making them pretty attractive, especially when you consider revenue growth rates are on the up.
I currently do not own ONTO, but I think they’re definitely a good buy now with a PT up to ~$200 range, though I think that is a +3 year outlook.
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