I am looking for equities with either low current valuation and exponential growth potential, or non-U.S. with excellent value and growth. Any suggestions? My ideas are share in comments below.
I am concerned about the risks inflation, recession and a weak U.S. dollar pose for my investment portfolio. As a result, I have reduced my holdings in U.S. equities and, as a result, have some funds available for new investments. As suggested in the title above, I am willing to wait years for a stock to appreciate if there is an opportunity for exponential growth. I am also interested in diversifying away from U.S. stock markets.
In the international category, I own MELI, an Amazon-like company that serves most of South and Central America.
In the category of low valuation/ exponential growth potential, I have several positions that I think meet the above criteria:
* CLNE. This vertically integrated producer and retailer of Renewable Natural Gas (RNG) and retailer of fossil fuel Natural Gas (NG) has been hammered by the markets for many years. It has invested hundreds of millions becoming the largest North American retailer of RNG and NG for fueling the trucking industry. Going on sale this year are long-haul trucks powered by Cummins new 15L engine which Cummins estimates will become 8% of their Class 8 trucking sales.
* SLDP. This company produces electrolytes for solid state batteries (SSB) to power electric vehicles. They haven't perfected the technology, but they are partnering with several key battery manufacturers and automobile manufacturers. SSB are widely expected to be the batteries of the future and Chinese companies appear to be leading the race.
* FLGT. FLGT has an established line of business doing genetic disease testing. This diagnostic business exploded during the Covid pandemic as FLGT was a leading clinical testing service. This business has been growing, but is unprofitable. However, the FLGT market cap is less than half of their cash position and they have no significant debt. Giving FLGT exponential growth potential is a technology currently in clinical trials that delivers chemotherapies for many of the most common cancers using a targeted nanotechnology delivery system.
* PLTR. This is probably a familiar company to most of you. I believe their current valuation is ridiculously high given their current financial performance and short-term projections, but I believe their product gives them the capability to grow into a multi-trillion dollar valuation in the five to ten year time frame.
I would love some new ideas consistent with the above strategies. Ideas?