These Three Stocks Could Jump 100% in the Next Few Months
Small caps have been in a bear market for months. Some of these stocks have been beaten to death since February. But now it looks like the Sun is coming out.
The infrastructure bill is moving forward. The Afghanistan mess is over. Hurricane Ida didn’t vaporize Louisiana. Plus, we’re heading into Q4, which should see several trial results for Covid-19 oral antivirals. I’ve written about the one being tested by Gilead/Matinas before, but many other companies are also working on one. Just this morning, Pfizer dosed their first patient in a Phase 2/3 trial.
If an antiviral defeats Covid-19, the stock market is gonna be crazier than 50 parrots loose in a toy store.
Here are some names that could easily rocket 100% in the next few months.
1. Waitr Holdings
Ticker: WTRH
This food delivery company (like DoorDash) has been (until recently) dropping since steadily.
They have a market cap of around $170 million, but revenue of almost $200 million.
In the last year they bought out a rival delivery company (Delivery Dudes). They also bought three payment processing companies, ProMerchant, Flow Payments and Cape Cod Merchant Services. They’re also trying to expand into the marijuana delivery business.
This company is positioning itself for massive growth, but that growth isn’t reflected whatsoever in the stock price.
If WTRH had a P/E ratio similar to its peers, their market cap would be 2.6B, and the share price would be around $21. It’s currently hovering around $1.40.
So, you can see Waitr has quite the upside potential.
2. Fisker, Inc.
Ticker: FSR
Imagine you could invest in the next Tesla, except the CEO is a lot more down-to-earth. This is a guy, that when he travels for business, stays in cheap hotels so he can save money for the company. Not many CEOs would do that.
Fisker is positioning itself to be a dominant player in the electric vehicle market. They’ve made manufacturing deals with Magna and Foxconn, so getting the hardware (like chips) won’t be a problem. Fisker also doesn’t need to build their own factory, saving billions.
Unlike other electric vehicle companies, the CEO is actually an automotive designer. He’s done great work in the past for BWM and Aston Martin.
His vehicles are going to be revolutionary, and they’ll be built in America, which becoming an increasingly popular selling point. Building in America also means their production is less vulnerable to political issues or future trade wars with You-Know-Who.
Their electric SUV is priced to sell at $37,499.
Fisker currently has a market cap of 4.19B.
In comparison, Lucid, another pre-revenue electric vehicle company, has a market cap of 29B, and their car is priced at $69,000.
Fisker is clearly the better bet. Don’t get me wrong, I’m not saying Lucid is a bad company, it’s just that Fisker appears to have a much higher upside.
Here’s the one-year chart. Notice how it hit $31.96 back in February. And this was before they secured their manufacturing, and hardware components.
3. Romeo Power
Ticker: RMO
This is the premiere play in electric vehicle batteries.
Romeo’s market cap has been massacred from a high of $38.90 in February, to around $5 today. This is the result of the chip shortage and having a hard time finding a supplier for battery cells.
However, In the last month Romeo has brought on a new CEO who has more 30 years experience in manufacturing and the auto industry. They also signed a deal with LG to supply battery cells that goes until 2028.
Romeo’s market cap is currently 678 million. This is insane considering they have at least a 600M order backlog, which they’re now able to fulfil thanks to the deal with LG. They also have around 2 billion in future orders under negotiation.
Ever heard of Borg Warner? They’re a 10-billion-dollar automotive supplier. Borg Warner bought a 20% equity stake in Romeo back in May 2019. Borg Warner bought into Romeo when the share price was around $10.
If you look at the institutional action, every quarter the big guys are loading up. BlackRock added 2 million shares last quarter, more than doubling their holdings.
This is a company that’s on the cusp of becoming the world leader in electric battery systems. They also have about 269 million in cash in the bank, so dilution is unlikely.
Here’s the one-year chart. See how much room Romeo has to run? This could easily double in few months, or triple in a year. Maybe sooner.
Good luck with your investing. I’m deep into these three and will be holding for a while. Don’t forget to follow us on Twitter for additional in-depth analysis!