Freetrade Baggers - Stocks you think will double in 2022

But what justifies thoughts about a “huge potential”?

It’s hard enough lending let alone with covid-19 and litigation looming large. According to their last annual statement, they have a new CEO, Gary Jennison. Have you read any of his public statements about turning around the company that might justify such thoughts?

This line stood out for me: “The Board is continuing to pursue a Scheme which seeks to address the concerns of the FCA and of the High Court. Without a Scheme, the Company’s balance sheet is insolvent. Amigo will seek to avoid an insolvent failure of the business by proposing a Scheme of Arrangement, including the option for a managed wind-down of the business”.

Charlie Munger is famous for remarking: “The best thing is buying a great company in temporary trouble. We want to buy them when they’re on the operating table”. The critical question is whether this company can really salvage their situation? My view is that unless you have such confidence, you should stay away from companies teetering (such as this) on the edge of insolvency.

Edit: the link: https://polaris.brighterir.com/public/amigo_loans/news/rns/story/xl1edjr

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I just did a google finance check.

They reported a -71.61% net profit margin on their last financial accounts. :woozy_face:

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Thanks for the insight. I hadn’t read any of his comments. Just taking a punt on the chances they will avoid insolvency. However I think it’s probably a much safer bet to stay away from them for now at least.

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You’re a big fan of the Orient! Thanks for sharing your notes.

I also bought Intel, I looked pretty much purely at their historic PE ratio and how they have cycled up and down with AMD. I know AMD has the best technology, but my thesis is that they will even out over the next 5-10 years and AMD’s PE was something like 15 x that of Intel’s. I like companies with low PE’s that I think will still do well long term, basically value investing.

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Blockquote

Yes, I did mention their cash burn and negative net earnings in my initial message above. This is definitely a long term investment based on my own subjective view of how sustainability and environmental issues will inevitably change consumer and business behaviour in the mid to long term. Fundamental and Technical analysis of OTLY is not great right now… As always with anything to do with investing/trading DYOR!

Hey there.

Thanks for the comment. Sorry for late replies. I am busy studying law most of the week!

For China: I just think it’s just opportunism where equities are undervalued.

Re: Intel. I hear you about Intel. Intel is a consistent dividend payer, they’ve been buying back their stock consistently and have impressive margins. The ROIC is good. But do you have any insights on what the chip market is like - or how Intel will fare in the future? The company is in a slow decline which is why they’ve brought in this new exciting CEO, and from the interviews he’s given, he seems on the ball and energised about moving company on. I’ve asked a few of my IT-related friends, but they have no idea.

I know nothing about chips and my friend who knows about computers says buy AMD. However, I am aware of my ignorance and operate on the assumption that Intel’s and AMD’s divide will even out over time as I don’t see any reason why one company will keep developing better technology than another company.

I’m also assuming that the market for these types of products will increase, for example things like cars requiring more powerful computers because they will be moving towards being autonomous. There’s probably other devices that will start having more powerful computers, e.g. planes, cranes, buildings, ships (I’m just making stuff up).

Yes, it will no doubt increase. Did you see some news about Apple going to make their own chips?

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I know they design their own ARM chips. I have no idea about computer chips to be honest.

ZG
TDOC
BABA
CHPT
PDD
WISE
OCDO
QS
ZLAB

What’s your logic on Ocado?

I hold them and BABA. Have they got some specific plans for next year? I’m doing ok so far:

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$ocul

To be honest Ocado is more for a hope than a reasonable prediction. I think it will double bag at some point in the next 3 years. It’s not one of those steady growth companies but their technology arm has a lot of potential

Microvision (MVIS)
Tellurian (TELL)

CARD - Card Factory
TLW - Tullow Oil

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Ben’s Creek. Its already bagged twice since it floated a month or so ago this year for those that got in early but I’d say its still got plenty more give.

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100% - production starting next week, with revenue bring generated from January next year :facepunch:

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Now the share price has tanked … I’m going for Arrival (ARVL).

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Is that not your watchlist?
DRAX is doing consistently well for me, so that would be my guess.

No it is a portfolio with fake money. :+1: I have a crypto one on Etoro which is great but annoying as I have made 200k profit this year on crypto :rofl: My real one is good but not so great.