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We see what just transpired in January 2022 as an opportunity to focus on our highest conviction stock ideas, and to continue to remain steady in our assessment of potential new ideas like the one that will be in focus this coming Thursday during our Fireside Chat with Orbit International Inc (OTC:ORBT), a company that designs and manufactures subsystems and major components for prime contractors, government procurement agencies, and R&D laboratories worldwide since 1957.
In the meantime, there’s been a retail investor exodus from the markets, as is evidenced by Robin Hood’s disclosure of a widespread disengagement of its users over the past 2 quarters. Could it be that the existence of a vastly inexperienced and isolated investor base has finally manifested itself as a situation where the first sign of market turmoil turns into a flight to safety? How many have been irreversibly monetarily affected, in turn causing a disaffected state of mind? After all, 2020 to 2021 saw the biggest influx of retail investors in history, over 10 million.
It’s easy for novice investors to be enchanted by big corporations like Robin Hood who promise commission-free trading and the ownership of fractional shares of stocks like Tesla, Inc. (NASDAQ:TSLA). Even worse is that investors end up owning stocks they know nothing about, especially in terms of understanding the concept of fair value. Who is Robin Hood really helping in the end? Well, that answer is easy – they surely don’t care about the small investor as it seems their marketing and business plan encourage short-term trading as opposed to building long term wealth. Quite the irony – for a medieval concept that gives to the poor and steals from the rich, we view Rob Hood as a firm that does not help the everyday investor build wealth over time.
As a matter of fact, that is in part the reason why we exist…to let investors know that there is a different way to do things other than to blindly follow a TikTok tip, or a Robin Hood hand out.
Hopefully, you’ll see that, even in the face of market conditions that stand to derail investors’ portfolios. With 11 months to go in 2022, we couldn’t be more excited about the prospects of our Long Disclosures, as well as the pipeline of ideas, like ORBT, that have the promise to overshadow a capitulating market.
Stay tuned!
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Recommended Reading From Around The Web
While Innovative Industrial Propertie (NYSE:IIPR) is not a stock we would normally give any attention to, it’s of late come into our purview of our coverage due to some microcap comps that we’ve given a good deal of attention to. As you might expect, there aren’t that many cannabis industry stocks (in this case, the real estate space) that we would give that much credence to, but should the ones in our crosshairs take advantage of the scalability of their businesses, we feel we might see an expansion in multiples more in line with their larger counterparts.
The following Seeking Alpha article might put into perspective the potential of cannabis stocks dealing with the lease of land intended to help growers expand their own businesses.
Summary
- IIPR is down over 30% from its peak.
- I discuss my thought process for REITs and trying to predict the future based on the past and present.
- The 28.7x price/FFO multiple is well below the average multiple and provides an attractive entry point.
- Shares currently yield 3.2% and are a strong buy under $200.
Notable Tweets
That seems appropriate right now. pic.twitter.com/1pS5KM3FaU
— Espace MicroCaps (@espacemc) January 25, 2022
"I've always loved to play games, and face it: investing is one big game. You need to be decisive, open-minded, flexible and competitive." – Stanley Druckenmiller
— Santangel's Review (@SantangelReview) January 18, 2022
https://twitter.com/NorthmanTrader/status/1483500951768121346
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