Stock Watch: Session 3

Stock Watch will be a way for me to present companies I’m following with the hope of showing you investment potential. As opposed to my Stock Talks, I won’t be going in-depth on one particular company, rather, I’ll be listing 2 or 3 that you should take a look at with a brief description of them/why I like them – do your homework as I am leaving a huge portion of information out of these posts.

I don’t necessarily own all/any of the companies presented in my Stock Watch postings, these listings are for idea generation purposes only.

This sessions stocks:

1. Goldmoney (Ticker: XAU.TO)

WHO:

Goldmoney is a global company specializing in the buying, selling, and storing of precious metals to consumers. Their business model allows clients to purchase a wide variety of metals (Gold/Silver/Palladium/Platinum/etc.), GM then storing the items in Brinks vaults located across the world with the consumer choosing the most convenient location to them. Taking it a step further, Goldmoney allows consumers to spend their precious metals through a Goldmoney card, the company simply removing the portion of metal spent from the holder’s vault. The company recently expanded into the Cryptocurrency market, allowing the purchase/holding of Bitcoin. Additionally, the company buys and sells foreign currency, trading at rates far more competitive than large-scale banks.

WHY:

  • An innovative spin on precious metal holdings – makes it far more accessible to the mainstream investor/consumer.
  • Collect fees on the purchase, sale, and storage of the metals – multiple revenue streams.
  • Revenue is earned as a weight of precious metals as opposed to regular fiat dollars.
  • Located in 150 countries & safeguarding over 1.9 Billion in assets.
  • As fiat currencies & global markets become increasingly unstable, all segments of the investment world may look for safe-haven investments to hedge against potential downfalls.
  • $8 Trillion precious metals market – plenty of growth opportunity.

Price at time of post: $4.00

Note on XAU.TO – The speculation surrounding everything Crypto has led to a rapid inflation, followed then by a rapid deflation of Goldmoney’s stock price. There is reason to believe that due to the selling/buying of cryptos with clients Goldmoney may hold a significant Crypto position on their books, making them vulnerable to any fluctuations in prices. Please perform due diligence before making any investment decisions.

2. Cirrus Logic (Ticker: CRUS)

WHO:

Cirrus Logic is a semiconductor supplier specializing in audio and voice signal processing applications. They are known for creating high-quality hardware and have been serving the marketplace for decades, their circuit boards actually being a main component in Apple iPhones & related tech (wearables/tablets/etc). As a main supplier for Apple, a large portion of Cirrus Logic’s success relies on both the success of the iPhone/related tech and Apples desire to continue doing business with them. Aside from their operations, Cirrus is a very strong company fundamentally, boasting years of solid sales and income growth.

WHY:

  • Great balance sheet & metrics, significantly undervalued relative to peers.
  • Poor-performing year due to contract & demand uncertainty has left the stock in a value position with tremendous potential for growth.
  • Recent emphasis on voice/audio in tech shows a strong demand for quality hardware.
  • Strong return on equity – management is working well (helps to partially offset the lack of a dividend)
  • The potential for both a long or short position – depending on how you see the market moving & how Cirrus fits into Apple’s long-term strategy.

Note on CRUS – Be weary with this investment and make sure to perform your homework on the industry, having such a large dependency on one firm, especially one who in recent periods has been cutting out suppliers in lieu of their own manufacturing, may pose a serious long-term issue regardless of how intriguing the fundamentals are.

Price at time of post: $51.05

Disclaimer: The companies listed above are purely for research purposes and are not formal recommendations. Please perform due diligence before making any investment decisions to prevent capital losses.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s