As part of our ongoing series on multibagger Case Studies, private investor and GeoInvesting contributor Thomas Birnie was kind enough to offer up his second video explaining more on the dynamics of underlying clues that could lead to significant appreciation in stocks. Birnie’s latest contribution delves into MercadoLibre (MELI), often referred to as the “Amazon of Latin America.”
Thomas Birnie, a part-time investor and GeoInvesting contributor, presented a case study on $NFLX as a multi-bagger investment opportunity, focusing on the period around 2011-2012. During this time, Netflix’s stock experienced a significant decline, losing about 75% of its market value. Birnie emphasized that this was partly due to the company splitting its DVD rental service from its streaming service, leading to margin compression and a drop in investor confidence.
SWVL’s price soared as much as 405% higher to a peak price of $4.90 in the days following its December 27 earnings release, when it reported 2023 first half results showing a $2.1 million GAAP profit, translating to EPS of 25 cents.
Peter Lynch was a huge advocate of Cliff Notes, so it’s fitting that one of my favorite video clips of 2023 was when Tim Heitman discussed his time working at Fidelity while Peter Lynch was managing the Magellan Fund between 1977 to 1990, racking up an annual average return of 29.2%. Tim talked about Lynch’s “Cliff Note” approach to quickly laying out a stock pitch.
As you may know, on November 16 2023 at 2pm, we hosted a webinar about our contrarian or Buy On Pullback strategy to take advantage of volatility in stock prices, seeking to buy stocks that fall sharply due to reasons unrelated to the fundamentals of the underlying company’s business.
IEC Electronics (Nasdaq:IEC) came into our crosshairs in January of 2018. We started covering the company at around $6 a share. This is a classic case study of betting on a jockey – betting on management to take a company to the next level, ultimately leading to the company getting acquired for a nice premium.
Deploying effective cybersecurity measures for your business today is a continuous, ongoing battle with cybercriminals; and cybercriminals, like conventional terrorists, have a built-in advantage. It’s asymmetric warfare – just as it only takes one suicide bomber to breach a physical perimeter, it only takes one response to a phishing email to get past conventional “perimeter-based” IT protections, and thereafter it becomes easy to roam through target networks and extract sensitive data.
Had Nolan Ryan selected a different career path….say microcap investing…I’d venture to say that it’s likely his mindset and tenacity to achieve greatness would have made him as successful an investor as he was a pitcher.