Hi everyone, I’m a young investor looking to expand my knowledge of AI, the economy, and finance. I started investing during COVID-19 into high-growth companies recommended by the Motley Fool and found this board in the fall of 2021. Through the tech crash, my portfolio tanked more than 75%, but I continued to soak up information and learn through reading, conversations about stocks, and challenging myself.
First of all, I want to thank everyone who posts on this board, as over 90% of my stock picks come from company analysis on this board.
My strategy this year has been a mix between Wpr101’s strategy of owning the best companies based on qualitative and quantitative analysis and position trading. Position trading, also called intermediate trading, is a more active strategy that involves holding a company 3-6 months as it appreciates. Instead of planning to hold it long-term, I plan to do this so that I do not fall in love a company and can move on.
YTD Performance - 480.6% (not a typo)
Current Portfolio Holdings
PAY - 31%
EVER - 28%
AXSM - 16%
SEI - 13%
HIT - 12%
Why I own what I own
PAY
I don’t have much to add to Wpr101’s analysis. This is a cheap SaaS company that remains largely undiscovered by the market. It may take a few quarters before a huge run-up, but the risk/reward is favorable. I believe Paymentus’ strategy of decreasing prices to increase revenue growth will work in the long term.
EVER
I think Wpr101 mentioned this company on his watchlist so I did some research on the company. Although it did report 34% revenue growth this is not a typically Sauldom pick.
They also announced a $50 million share repurchase program last quarter. While the stock has fallen, I hope they took advantage of cheap shares.
They are an online insurance marketplace connecting consumers with the best insurance rates. As business leaders keep telling me, we are shifting from a relational economy to a transactional one. The businesses with the cheapest rates are most likely going to win.
I believe that the analyst estimates for this upcoming report are way too low at 15% revenue growth.
AXSM
Axsome Therapeutics is a biopharmaceutical company. They develop and deliver novel therapies for the management of central nervous system (CNS) disorders. Most of the revenue comes from AUVELITY, and the company has many other products with high-growth potential. Although I am not a biotech expert by any means, the financials are compelling.
Their total revenue was up 72% YOY to $150 million and up 24% sequentially. Although they are still losing money, they told us in the financial guidance that they expect their cash to be sufficient until they are cash-flow positive.
SEI
Solaris energy infrastructure primarily does X’s energy infrastructure through Solaris Power Solutions. They also do oil and natural gas supply chain management through Solaris Logistics Solutions.
According to a SemiAnalysis article linked below, “Musk’s firm weighs 67% of SEI’s 1700MW orderbook, i.e. 1,140MW. There are ~240MW on the Memphis Colossus 1 site, while the remaining 900MW will be owned by a Joint Venture owned at 50.1% by Solaris and 49.9% by xAI.”
The plethora of insider buys over the last 9 months gives me a lot of confidence as well.
The last 4 quarters have had a solid revenue uptrend;
75 → 91.6 → 126.3 → 149.3
HIT
They are an Insurtech platform company that attempts to utilize AI and cutting-edge technologies (e.g., blockchain) to simplify the complexities of health insurance. In the next earnings report, I hope they will provide more details about how they plan to implement blockchain in insurance. This company has considerable potential, but it is a penny stock with low trading volume.
Quarterly Earnings Strategy (Off Topic)
By using Saul’s process of finding great companies and combining it with discounted cash flow analysis, I plan to get into these companies before they report. I do not attempt to understand the details of a company, but rather the company as a whole and its financials.
Changes this month
Sold CRMD, HIVE, IREN, BHST
I plan to use my quarterly earnings strategy to get into these companies before they report.
Disclosures (Off Topic)
I have used margin for the first time in the past month.
Please note that my extremely high returns will NOT persist. I also have frequent 20-30% drawdowns and had one 50% drawdown this year (held through tariffs).
As a guy in the military and at college right now, I am ok with extremely high-risk/high-return strategies. I don’t need the money in my portfolio to live off of, and my portfolio size is still in the 5-digit range, which is a significant advantage.
Looking forward to this earnings season!