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We just received confirmation from GeoInvesting premium member and research contributor Egor Romanyuk that he has closed his position in Usa Truck, Inc. (NASDAQ:USAK). USAK is a trucking company stock idea that he pitched to the GeoInvesting Community on August 8, 2021 at a price of $13.85. During the course of the next several months, the stock’s price climbed to a peak price of $29.09 during his coverage period, or an increase of 110%. It still sits in the mid-20 dollar range. Part of Egor’s pitch conveyed what he thought the fair value of USAK was.
“So there’s all this freight that needs to be moved at all these high prices, but there’s nobody to drive them. Right. So even there, they got hurt. And even then they came out with a record quarter. I think once like Darren Hawkins of YELL said on the transcript -, as soon as all these American workers get off the bench and get back into work, then I think it’s just gonna blow up and it’s gonna blow up the most in the industrial sector.”
“I mean, trucking is just, it’s gonna go huge, it’s gonna affect the rates, it’s probably going to bring them down, because there’s so much more supply of trucks, when you have all these drivers. But, you know, the way prices work in the world regarding whatever it is, they rarely have a tendency to go down. Once you get the prices up, you’re very likely to just keep them there where they are”
“So that’s the short pitch. I think it’s very undervalued. I think at simple multiples in the industry, we’re looking at probably a $250 million market cap fair price. So we’re talking about double the price of the stock now. So I think it’s fair, that it will be 30 bucks a share, and it’s going to get there. The float is actually quite small. The float is, I think, only 2 million shares.”
So there you have it. Egor is 3 for 3 on his truck stock pitches in USAK, Yellow Corporation (NASDAQ:YELL) (here) (up 231% since pitch price) and CAI International (acquired at a price of $56/share and pitched at price of $23). We don’t know if he is going to pitch another stock to us in the future as he is embarking on a few entrepreneurial endeavors that might keep him busy for a while.
Catch his entire past discussion on USAK here.
Since we are on videos, we’d like to point you to a few clips from our discussion with the CEO of an industry-leading global provider of engineered solutions, RF & microwave, and power products.
It’s our opinion that the company is capitalizing on a rare opportunity to create a moat in several of its business segments to enable it to log above average growth rates in sales and EPS for the next several years. We think this will result in an expansion of the stock’s valuation multiples and put the stock on track to be a multi-year multibagger.
Below are highlights of subject matter related to the company’s tube/magnetron/microwave business and use cases, the replacement of lead acid batteries with longer-life ultracapacitor modules in wind turbines, as well as the profitability of these capacitors.
We are extremely excited about the company’s involvement in the wind turbine industry, as its ultracapacitor solutions extend the useful life of equipment needed to operate turbines when compared to the status quo lead acid lead acid battery solution. Furthermore, the company is starting to address the needs of lab grown diamond and 5G markets, hot and growing sectors where the company is seeing increased order flow.
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Op-Ed: Watching Russia’s invasion of Ukraine shakes my own understanding of American power (Yahoo News)
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So, has anybody changed their opinion on Chinese stocks as a result of what has happened in Russia? Obviously apples and oranges, but man, this whole thing really highlights the tail risks of investing in authoritarian countries, regardless of emerging/developed status.
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Every winner that I've owned has dropped HARD at some point
Every loser has, too
Telling the difference in real-time is HARD
But, it's a much bigger mistake to sell a future mega-winner early than it is to hold a future loser too long
That's why my bias is towards inaction
— Brian Feroldi (🧠,📈) (@BrianFeroldi) March 1, 2022
“This stock is too illiquid for me, but I think you’ll like it.”
I love getting a message like this from a friend. Having smart, rich friends is insanely helpful.
Go provide value to the community and these people will find you and return the favor.
— Dirtcheapstocks (@dirtcheapstocks) February 11, 2022
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