1. Lemonade | $Lemonade, Inc.(LMND)$
Despite being a young and unprofitable insurance company ~12 months away from EBITDA profitability, $LMND are growing extremely quickly with very limited increases in operating costs.
Forecasting ~25% top line growth, and a big bet on the auto market coming up, $LMND at 3.8x sales seems like a great bet to be making.
I have a newsletter article release on $LMND coming up. It's a big deep dive into this future Gen AI giant.
2. Lantheus Holdings | $Lantheus(LNTH)$
$LNTH is a radiopharma company currently with 3 main products:
- PLYARIFY (mature)
- DEFINITY (mature)
- TechneLite (high growth)
There's also investing heavily into the Alzheimer's market which management expect to be worth $2.5B. The combination of mature products, TechneLite and the potential of the Alzheimer's market make this a great opportunity at 3.8x Sales.
3. Silvercorp Metals | $Silvercorp Metals Inc(SVM)$
There's a substantial disconnect between commodity prices and silver and gold miners, making them some of the most undervalued stocks in the market.
$SVM was once focused very much in China, but their big strategy now is to diversify away from China. At 1.9x EV/Sales and 3.5x cash, $SVM is extremely undervalued.
4. TransMedics | $TransMedics Group, Inc.(TMDX)$
$TMDX has done well to shake off the short report for now but the upcoming earnings will be very interesting. If they can hit +$500M in revenue in FY25 (+100% revenue growth) then the 5.3x sales multiple they're at today is way too low.
They did 715 flights in January which is a very strong start, especially since management have stated the second half of FY25 will be even stronger than the first half.
5. Aehr Test Systems | $Aehr Test(AEHR)$
As focus will gradually shift to much higher efficiency gains, $AEHR testing systems will mean companies like $MU $ON or $TSLA will be able to catch failures earlier and save money.
$AEHR were previously very focused on solely the EV market, hence their poor stock performance of late, but they're now diversifying their business into optical transceiver, multi chip module, GaN, and much more meaning their TAM has increased considerably and the risks associated with their very niche approach originally are decreasing.
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