3 interesting stocks to analyze further!
A quick summary of my analysis on these 3 stocks.
*These stocks were selected from the Magic Formula's list you can find down below after the picture.
Stocks that ends up in the Magic Formula's list are normally beaten up for some reason. I illustrate them as well in my quick analysis.
$HRMY is a commercial-stage pharmaceutical company, focuses on developing and commercializing therapies for patients with rare and other neurological diseases in the United States.
Good news:
- Both revenues and earnings have been growing meaningfully.
- Strong conversion of profit to free cash flow.
- Good momentum
Bad news:
- The most recent earnings report presented headline numbers that were considered soft by shareholders.
Is this stock beaten up for a valid reason?
Frankly I think this is good pick and I don't see any reason why this should not be held into your portfolio for 1 year as advised by Joel Greenblatt. It really sticks out at as one of the market's strongest value stocks in my opinion.
$GCT is a Chinese comprehensive B2B ecommerce solutions for large parcel merchandise in the United States. On some aspects it looks similar to Alibaba.
Good news:
- Growth on all numbers
- Share repurchase program
- Considered a potential multibagger by many analyst
Bad news:
- Next US presidency is hostile to China imports
Is this stock beaten up for a valid reason?
Many times in the past this company has been beaten up because of it's Chinese origin. Many allude on numbers too good to be true others are scared by the next US presidency. To make it short... there is a lack of trust in this company and it's future. It's undeniably a good company, but will the lack of trust ever evaporate? And will Trump's actions have any effect on it?
$BWMX (+0%) is a direct-to-consumer company selling housewares in the United States and Mexico.
Good news:
- Profit was recently significantly reduced by unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. Unusual items are often not repeated. If those unusual expenses won't repeat, then all else being equal I'd expect its profit to increase over the coming year.
- Constant revenue growth quarter after quarter.
- Very high dividend yield.
Bad news:
- High level of debt.
- Shareholders have been substantially diluted recently.
- Negative momentum.
Is this stock beaten up for a valid reason?
At the moment I believe so, but as soon as the profits rectify, I can see the stock price jumping and finally recognising the true value of the company. But it's kind of a bet on when this will happen. If you are in for the high dividend, you are patient and you are ready to take some risks this might be the stock for you.
Magic Formula's list (24/11/2024)
- $MO (+0.78%)
- $AMCX (+0.67%)
- $BWMX (+0%)
- $BTMD
- $BMBL
- $COLL (-2.73%)
- $CCSI
- $CROX (+5.21%)
- $CTMX (-0.93%)
- $TRDA
- $GTX (-1.99%)
- $GCT
- $HRMY
- $HSII (-2.33%)
- $HPQ (+0.51%)
- $INVA (-1.15%)
- $IPG (+0.94%)
- $JILL (+0%)
- $MED (-1.87%)
- $PARA (+0%)
- $MD (-1.82%)
- $PRDO (-3.1%)
- $PLTK (-2.23%)
- $PBYI
- $RGS
- $RMNI (-0.82%)
- $SIGA
- $SIRI
- $UIS (-3.83%)
- $VYGR (+0.55%)
#magicformula
#multibagger
#tenbagger
#joelgreenblatt
#greenblatt
