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I remember finding the company WonderFi very interesting even before it went public on the Canadian stock exchange. One of its biggest investors is Kevin O'Leary from shark tank which is the reason that it came onto my radar in the first place. The idea behind the company is great. Decentralized Finance (DeFi) is something I am very much a fan of, and WonderFi was started to make it easier for the average person to take advantage of DeFi. For people that don't know, DeFi essentially is when people put their money into a stable coin (a crypto that follows the U.S. dollar) and collects interests off of it. WonderFi is essentially the bank. People hold their stable coins in WonderFi, and WonderFi loans out that money. WonderFi takes the interest they made off of that money and gives the owner of the money part of the profit as a thanks. It's basically banking without a bank which is something I am very bullish on.
When WonderFi first went public, I didn't invest any money into it as I didn't know how the market would actually react to the idea. I did, however, add it to my watchlist, and I have been checking on the stock every now and then to keep up with it. I even made an account with them, but I haven't actually done anything with it yet.
Since going public, WonderFi bought several companies like BitBuy, Coinberry, and Blockfoundry. Once they started doing this, I started viewing them as almost like a holding company for crypto companies. Unfortunately, however, the company has seen a massive decline in value since going public. They have lost 89.71% of their value since going public in 2021.
There are several reasons why I believe this has happened. First, crypto entered a massive bear market pretty soon after WonderFi went public. Many crypto companies went out of business during that time, and many investors pulled out of crypto themed companies like WonderFi. Second, the stock market itself entered a downturn. Investors were pulling out of the market itself. They were especially pulling out of high-risk investments like WonderFi. WonderFi now trades at just a $43.52 million valuation. Now, that's not a ridiculously low valuation considering in Q1 of 2023 WonderFi made just $2.5 million in revenue, but it is still really low compared to where they once were.
Now, it has been announced that WonderFi will be merging with Coinsquare and CoinSmart. These three companies will combine to be Canada's largest regulated cryto asset trading platform. Hopefully, they'll have success.
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SoFi has been the biggest position in my portfolio that is not an ETF for some time now. I've always really believed in this stock. If one searches my blog for SoFi, they'll see many different posts announcing that this stock was undervalued. I have been preaching this stock for a while now, and it has been frustrating. The reason for my frustration is that I have seen SoFi post amazing quarterly reports that have shown amazing growth for well over a year now, and yet the stock has not responded. Every time I saw this, I bought more shares because I believed that the market had lost its mind concerning the stock. This was such a clear winner to me, yet it seemed that no one else saw this. This year, however, that has changed.
SoFi has increased by 86.55% year to date so far at time of writing. A lot of that growth has been seen in the last month though as SoFi has increased 80.67%. That is absolutely amazing. This has happened largely because it was announced that the student loan payment extension would not be extended. Because SoFi makes money on student loan refinancing on its platform, investors took that as a huge win for the company. Now, I do believe that the market may have overreacted to this news, but I am very happy as an investor in SoFi.
SoFi now trades at around an $8 billion valuation. They have been growing very quickly both in revenue and users, and while the company is still unprofitable, SoFi does plan to be profitable likely by the end of the year. Since SoFi is growing so quickly, I am fine with SoFi using all its revenue to help grow the platform further. That said, I am happy to see SoFi reaching profitability.
Since I still want to buy more shares of SoFi, I am a little sad to see it trading so much higher as I want to buy more shares as cheaply as possible. That said, SoFi was trading at around $5 a share for a lot of 2022, and I did try to buy as many shares as I could during that time.
While SoFi's stock is up quite a bit right now, I am still long on this stock. I think the company has so much potential, and I am very happy with its current leadership. I believe that this is a really good company, and I want to own it for a very longtime.
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Almost everyone has heard of the company WeWork by now. There's been tv shows, podcasts, books, and more covering WeWork's rise to an almost $47 billion valuation and huge crash following after. The story really deserves a sequel because after that it went from going public via SPAC at a $9 billion dollar valuation to being worth around $160 million at time of writing.
When WeWork first went public, I was hoping the company would be able to turn things around. I didn't buy any shares of the company, but I have always liked the overall idea of WeWork. I didn't think it should have ever been valued like a tech stock, but I do think the overall idea of coworking spaces like WeWork is a good idea. When they went public, I was hoping they would have an amazing redemption story. That has obviously not been the case.
At a $160 million dollar valuation, I worry for WeWork. The company has lost billions of dollars over the last few years, and while the company claims that it is good on cash and reaching profitability, I have my doubts it'll get there. If WeWork keeps losing money at the rate that it has been, I wonder how it can keep raising more at its current valuation. Who's going to invest billions into a company at a $160 million dollar valuation?
Hopefully, WeWork does achieve profitability before it runs out of cash. WeWork has also just replaced their CEO after a catastrophic last quarter which caused the stock to fall to where it is now. Fitch Ratings also stated that WeWork defaulting on its debt is a real possibility.
I personally believe that the company is done. I hope to be wrong, but this is not a stock that I would buy myself. Either way, the story of WeWork, who in 2019 was worth around $47 billion dollars and fell to around $160 million in a 4 year period, will be told for a long time.
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When Silicon Valley Bank collapsed, I was advised to sell my bank stocks. I do own shares in a couple of different banks, but these are banks that I plan to own for quite a while. I felt no need to sell my shares of certain banks when they have nothing to do with Silicon Valley Bank. While bank stocks did fall after Silicon Valley Bank's collapse, they recovered very quickly, and buyers were able to make a lot of money. Now, bank stocks are once again falling, and I believe I will be able to make a lot of money by buying certain banks at these prices.
One of my favorite stocks, SoFi, has fallen to under $5 a share. I wrote a small post about this on my members only investing community - www.patreon.com/posts/sofis-stock-has-82513164?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator&utm_content=join_link. Honestly, I thought SoFi was already trading at a ridiculously low valuation, but it has now gotten completely insane. SoFi is a strong company. They recently had their latest earnings report for the first quarter of 2023, and they are growing very quickly. This is a no brainer stock, in my opinion, and I can't believe how lucky I am to buy this stock at these prices.
Another one of my stocks, Ally Financial Inc., is down around 7% over the last 5 days. I'm not really worried about this company either. They're a strong company, and I am pretty positive that I will make a lot of money holding this stock. I will likely be buying a lot more shares of this company as well.
I understand a lot of people are worried about a wide scale bank collapse right now, but I am really not that worried. There has been a surprising amount of bank failures this year, but I am happy with the bank stocks I do own. Even crypto has been getting attention lately as an alternative to banks.
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Meta recently had their latest earnings call, and as a shareholder, I was very happy with it. It's been a fantastic year for the stock so far. The stock is currently up almost 100% year to date. This is great news after watching the market completely lose its mind on Meta last year. Meta had a couple bad quarters, and I saw countless people saying that the company was over. The company's stock was trading at a single digit times their earnings. Meta's stock crashed so much and so unjustifiably that I wrote this article saying that it made no sense - Why Meta's Stock Price Makes No Sense - FINANCE BY CWT.
I was so convinced that the market had completely lost its mind concerning Meta that I began to buy the stock. At the time, Meta was trading around $90 a share. Considering the fact that Meta is trading at around $240 a share at time of writing, one could say that I have proven to be correct. This stock has proven to be a big winner for me so far this year.
Meta recently had their latest quarterly report where they revealed that over 3 billion people now use one of Meta's apps at least once a month. Over 2 billion people now use at least one of their services everyday. That is just absolutely insane. The growth that Meta's apps have been experiencing is really impressive. As an investor in this company, it is really what I care about the most.
Meta also brought in a good amount of money this past quarter. They brought in $28.65 billion in revenue for the quarter vs the $27.65 billion they were expected to bring in. They also are predicting a very ambitious second quarter. They are expecting to bring in revenue of $29.5 billion - $32 billion. This is largely due to the usage of AI enabling advertisers to accomplish better results on their platforms. When Apple changed their privacy settings, it hurt Meta a lot but AI has helped to undo that.
I'm very happy with this quarter from Meta.
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A few months ago, I wrote a blog post stating that I was buying shares of Ally Financials, Inc. Ally is a financial services company. I invest in a lot of fintech stocks, but I became interested in Ally because I thought the stock was trading at a stupidly low valuation. At the time, Ally was trading at a $7.82 billion valuation. Now, Ally is trading at an $8.18 billion valuation. Obviously, I am happy that my shares in the company have increased in value, but it is important to note that at an $8.18 billion valuation, Ally is worth $27.19 a share. The company, however, was worth $35.78 a share shortly after my original blog post on the company went public. Obviously, my blog post had nothing to do with the stock increasing, but the day after it went live, the stock shot up 30% after a great quarterly report.
To recap, I bought shares in Ally Financials, Inc., the stock dramatically increased in price shortly after, and the stock then fell. Now, why did the stock fall? Silicon Valley Bank. When Silicon Valley Bank fell, a lot of bank stocks saw their valuations start to plummet. Since then, a lot of the stocks have started to recover.
Even with Silicon Valley Bank's collapse, I still held onto my Ally shares. The reason was because I did not think Silicon Valley Bank's fall would have any long-term effect on Ally. Ally is still in a strong position for growth. It is still trading at an absurdly low p/e ratio (5.39). I still think it's a really good company.
I believe my thesis on the company is still just as true as it was when I first wrote it. As long as that's true, I will keep buying shares of this company as I believe they cost way less than they are actually worth.
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BJ's Wholesale Club Holdings, Inc. is a membership-only warehouse club chain. They operate on the east coast and also Ohio, Michigan, and Indiana. The company was formerly known as Beacon Holding Inc. but changed its name to BJ's Wholesale Club Holdings, Inc. in 2018. Is the stock a buy?
BJ's currently has a market cap of $10.067 billion. The company currently has a price/earnings ratio of 19.94. The company is growing. For the 12 months ending January 31, 2023, BJ's posted $19.31 billion which is a 15.89% increase year-over-year. BJ's earnings increased from $426.65 million to $513.18 million which is a 20.28% year-over-year increase. While the stock is trading at 19.94 times their earnings, the growth that the company is experiencing helps justify buying the stock at this premium.
BJ's is also experiencing growth in cash flow. BJ's year-over-year cash flow growth is 16.8%. This is significantly higher than the industry average which is -8% according to Zacks.com. Cash flow is very important for any business, and the strong growth in cash flow that BJ's is experiencing is an important consideration when looking at the stock.
BJ's is in debt though. In BJ's most recent quarter, they reported debt of $3.12 billion. This gives them a current ratio of .67.
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Ryan Reynolds, most known for playing deadpool, has proven to be a very successful investor. He invested in Aviation Gin which was then sold to Diageo for an estimated $610 million dollars. Aviation Gin's shareholders initially received $335 million dollars and have the potential to make up to $275 million more based off of sales.
The sale of Mint Mobile's parent company, Ka'ena Corporation, to T-Mobile is worth up to $1.35 billion. Some Mint Mobile users were not happy with this sale to T-Mobile as Mint was marketed as being not one of the big phone carriers and now is. Ryan Reynolds must be happy though as he could end up making around $300 million dollars from this sale.
Investing in startups is known to be risky, but when an investor also has a huge media brand, it is a lot less risky. When Ryan Reynolds invests in a company, he is able to give those companies a very powerful asset along with money which is his brand. He didn't just buy into Mint; he became the face of mint. He owns his own advertisement company which he used to make ads for Mint starring himself. He was able to connect his own brand to the company. Obviously, this strategy has proven to be very successful.
When one has a following as big as he does, it basically comes with guaranteed sales. He's able to advertise these companies on his platforms and bring in a substantial amount of customers. Many celebrities are trying to do this. Some have failed, but many have seen huge success following this strategy. Conor Mcgregor started his own whiskey and sold it for over $500 million. Dwayne Johnson started his own Tequila brand and has seen tremendous success with it. Ryan Reynolds has found it better to buy stakes in already existing businesses and skyrocket them.
The success of these celeb backed businesses has been fascinating to see, and it is a stark change from the investments in startups provided by venture capitalists which help fund startups but usually don't do work inside the companies.
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My whole strategy when it comes to investing is to buy stakes in businesses that I want to own for a significant period of time that is selling for a fair valuation. I want to own these companies for as cheap as I can get, and I want to buy as many shares of the company that I can get my hands on. That's my strategy. Here are three stocks that I plan on buying shares of.
1. SoFi Technologies
SoFi is one of my favorite stocks in my portfolio. I own shares of the company already, but the stock has recently fallen to $5.45 a share. I was very happy to see the share price drop as I am trying to buy as many shares as I can as cheap as I can get them. I'm biased as I use the company and really like them, but when one looks at the growth rate that they are experiencing, I don't get how one would not come to the conclusion that this is a good business to own.
2. Meta Technologies
This is probably going to be a controversial pick, but Meta has a very dominant ad business that is getting better. Their stock took a major downturn due to several factors one key one being Apple hurting is advertisement business. Last quarter, however, Meta showed that businesses return on investment for ad spend is growing, and I believe that it will keep getting better. I also see that Facebook, Instagram, and WhatsApp are all growing in users. WhatsApp is also starting to be monetized which I am a fan of. I think that this company is in a good position for growth. The share price has already been growing quite a bit though, but I still want to buy the stock.
Blackrock is the largest asset manager. They currently have around $8.6 trillion in assets under management (AUM). Blackrock makes money by charging fees to manage those assets. This company is just so dominant. A lot of 401ks invest in funds owned by Blackrock. Many people invest in exchange traded funds (ETFs) that Blackrock owns. Most people reading this probably have some percent of their investment portfolio managed by Blackrock, and some don't even realize. Even during the market downturn last year, Blackrock saw inflows of cash into their funds.
These are three stocks that I am excited to buy. These three stocks might not fit everyone's investment goals so don't invest in anything solely based off of this article.
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After the collapse of Silicon Valley Bank, Many bank stocks had a terrible Monday. First Republic Bank, for instance, lost 62% of its value. First Republic is an extreme example, but Charles Schwab, PacWest Bancorp, and Zions Bank Corporation also saw their stock fall Monday. I remember looking at Schwab specifically and thinking that it was crazy how much it fell. In my last post, I mentioned that I thought that bank stocks as a whole would fall short-term after Silicon Valley Bank’s collapse, but I mentioned that long-term I don’t think most of the banks will really be that affected. I simply didn’t see much danger in a bank run happening for most of these banks.
Tuesday, however, bank stocks saw massive recovery. Charles Schwab stock rose by 9%, and PacWest Bancorp, First Republic, and Zions Bank Corporation rose by 34%, 27%, and 4% respectively. Investors seemed to be buying as much of these companies as they possibly could. I admit that while I did think that these stocks were decreasing to an insane extent Monday, I did not think that they would start to recover so soon. I did think that the market was overreacting though. Obviously, Silicon Valley Bank’s collapse is a really big deal, but the fact that it was affecting these other companies to the extent that it did was just crazy. I thought the market would correct its mistake, but I thought it would take longer for that to happen.
It’ll be interesting to see how these stocks perform over the next few days. Many bank stocks are increasing further during after hours trading. First Republic Bank has risen by another 8% since the market closed. Schwab is up another 3%, and Zion is up almost another 4%. I would like to see if these stocks can hold this momentum when the market opens up tomorrow.
The market itself was up as well which is hopefully a good sign that the market is moving past Silicon Valley Bank’s collapse.
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