A1's Top 5 Most Undervalued Nasdaq Stocks, By Our DDDD (Deep Dive Due Diligence)
5 Stocks With Undeniable
Massive Upside Potential
Updated Nov 19th, 2024
Let's begin by saying that any investment is risky. When you invest, only do so on your own due diligence. Anything can happen: When Covid news went worldwide in March 2020,
even the greats tumbled. Tesla fell to $103. Boeing fell to $113 pre-market. The Stock Market can be quite irrational.
Having said that, we envision a day where most things become as they should be. ​​
In the SM (Stock Market), sometimes there are extremely illogical moves, both upwards and downwards.
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Here are our current top 5 most undervalued stocks, after our deep dive of due diligence, that can relatively easily increase 7x to 20x or more, this week:
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#1 ​​​ HKD AMTD Digital Inc​​​
The ALL TIME record setting stock, ($10 to $2,550 in 3 days) is almost to the official level of "Extremely Oversold"...
For no valid reason at all. Absolutely NONE.
--Stock Bargains like this come around very rarely.
We'll post our analysis, but first, here's what other Analyst Groups are saying, and we'll quote:
1) Stockscan: "The Amtd Digital Inc Adr (HKD) stock price forecast for the next 30 days is generally positive, with an average analyst price target of $493.94, representing a +17,926.83% increase from the current price of $2.74.
The highest analyst price target is $502.45, and the lowest is $485.42."
2) The Wall Street Journal itself has LISTED a calculated fair price $16.75/sh, but they have not updated the new financial data, & earnings surprise, so 1.88x =$31.49
3) SimplyWallSt says "Price-To-Earnings ratio (8.4x) is below the US market (19x). Earnings grew by 88.6% over the past year
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Net income: US$31.9m (up 188% from 1H 2023).
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For HKD's industry, though, the PtE ratio industry average is 42.2x...giving HKD a Fair Value of $13.75/share​
4) WallStreetZen: "HKD ($2.74) is trading below its intrinsic value of $8.03, according to an updated version of Benjamin Graham's Formula from Chapter 11 of "The Intelligent Investor."
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In closing of our piers' views, the top 4 trusted evaluators have a range from $8.03 up to $493.94, the average is about $251,
using just the bottom 3, the weighted average is $17.76/sh.​
​ Now, our due diligence and catalysts:
A) 2 new blockbuster movies have recently been announced,
they are: 1) "The Last Dance" a romantic masterpiece,
which was just released last Friday, Nov 9th, and 9 all time movie sales records were set, it had a phenomenal weekend of sales.
2) "A Cover-up" which is based on a real story, which explores people's struggles when facing their true inner selves. It uncovers the dark side of human nature, and reveals the difficulties of climbing up the social ladder. (I prefer this
one to a romance, but that's just me!) Release date is 11-16.
--HKD completed its new Fiscal Year on Oct 31st, the suspected
massive Earning Report (ER) is imminent. All HKD shareholders
are eagerly awaiting the final numbers from the record setting
"Mission Moscow", "The Goldfinger",and "White Storm".
2023 numbers (only a few months, the movies were Fall releases) were ¥600m, ¥466M, and ¥422m respectively.
Yuan to USD exchange rates fluctuate, as of this writing
that equals
​
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$82.8 million USD
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$64.3 million USD
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$58.3 million USD
>>Those figures are 10.9% lower than when the sales occurred, so 2023 revenue for the 3 would be $227,270,000.
As an explanatory note, SimplyWallST has it wrong--they didn't
read the filing which states a shift: "On April 30, 2024, the board of directors of AMTD Digital Inc. approved a change of fiscal year end from April 30 to October 31.".
Meaning? The massive movie sales, revamped hotel sales,
and newly acquired L'Officiel's sales have not yet been reported,​ nor have the $70m in share buybacks, which completed in Q1 2024. Thursday, Jan 16th the ER is expected--as it will be 6 months from the new fiscal schedule for the period containing these numbers.
That ER should be quite exhilarating to HKD shareholders.
believed to be many times what it was in 2023's
(Nov '22-Oct '23) Covid plagued period.
HKD is QUITE RIDICULOUSLY ATTRACTIVE at the current $2.74 share price, we feel with the imminent ER it is easily 1/11th of the true value. History has shown, when an
aggressive upward push appears, this stock can skyrocket
in a flash. We've watched it jump $3 whole dollars per share in seconds many, many times, and the stock is much more
valuable now, with the fabulous movies, L'Officiel magazine, music star events, and hotel empires it has built.
-The INCREASED China stimulus package of yuan (equaling about $1.27 trillion USD), clearly helps parent company AMTD,
and will clearly greatly boost spending on movies, hotels, and fashion items which HKD provides.
PT=$34/sh (1,240% upside potential)
​​
#2​​ TWG Top Wealth Group Holding Limited ​
(Replacing HURA due to shockingly poor ER)
Widely known as owning the top caviar company in the world, Imperial Cristal Caviar, this one's drop is perplexing. Oct 24th the share price was $13.50, and now hovers around .28.
However, on Friday 11-15 it had a nice spike, up to .4126, with no news. The inside word is that chatter on Stocktwits, of how undervalued the stock is, caught investors' attention, rightfully so.
--With a great name like "Top Wealth" and being a fraction of its true value, with a 750% volume spike Friday, TWG can easily be
the next "meme stock" champion. Dilution risks are gone--
The company sold $10m+ in new stocks in Oct, with cash then at $1.6m, now $11.6m, an equivalent drop would have fairly lowered the price to $2.16. As usual, the Market overreacted.
The global caviar market experienced a growth rate of around
12% from 2022 to 2023. This growth was driven by increasing consumer demand for luxury food items, especially in regions like North America, Europe, and Asia. The market's expansion is supported by rising disposable incomes, growing culinary tourism, and a shift towards premium, health-conscious food products.
PT =$2.16 (771% upside potential.) ​
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#3 ADTX Aditxt, Inc.
In our 30+ years of analyzing stocks, we must say this one has
surpassed even SBFM (#3) for shocking and contradictory Market sentiment and overreaction. Even the sharpest analysts
are confounded by this one, so before we give you our views,
let's lay out the positives and negatives.
Positives:
-Dec 2023 This stock touched the equivalent of $380/sh.
SURE there has been dilution, but no where near -115,606%
for Heaven's sake!
-ADTX is ambitious, they are attempting to acquire OTC companies Evofem(EVFN) and Apilli (APLIF) simultaneously.
-The company has $3.3m in cash alone, but only a $2.82m MC!
-Finviz did all the heavy accounting and shows a $131.74 BV.
-Their CEO STATED in a recent online interview, that much of the financing needed is already in place for the acquisitions, and
only a smaller amount will be needed via dilution in comparison
to the value gained by the MAs.
Negatives:
-Their debt is high, but the CEO stated it is being addressed.
-Dilution will be needed, but it's more than priced in.
The RS value was at $4/sh, and it since has fallen to a ridiculous .3287
​
So much good, some bad. Quite confusing. We say this company is positioned quite well for long term growth, if the shareholders approve the MAs and the financing goes well. The price is so
low, (-115,606%!) it is almost insane not to jump in and hold
for the gold.
PT =$2 (608% upside potential -includes needed dilution.)
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#4 ICCM IceCure Medical Ltd
ICCM's work in unique Breast Cancer treatments is 2nd to none.
Shown by today's PR: IceCure's ProSense® Chosen for Breast Cryoablation Study Led by the Prestigious European Institute of Oncology with Sponsorship from the Italian Ministry of Health.
The .60 price is laughable, enough said.
PT=$4.20/sh (700% upside potential)
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​​​#5 ​SBFM Sunshine Biopharma Inc
Formerly our #1, SBFM falls to #5 due only to poor management- ZERO responses to its investors.
Now the good items:
SBFM's revenue is increasing QoQ, last Q was a 67% increase.
Friday, InsiderMonkey.com posted a similarly positive review with
a $15 pt. We think that's low, here's why: First of all, via Finviz, it holds a $20.06 Book Value. That does not include the massive Niopeg market soon to be open, combatting Neulasta for that $88 million market...in Canada alone. Florida laws were passed in January allowing Canadian generic drugs to be sold, SBFM's will be available there soon.
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Sunshine Biopharma Has Launched Eleven New Generic Prescription Drugs in 2024: Now Marketing 63 Generic Drugs in Canada
-Sales in 2023 grew to a total of $24,092,787, primarily as a result of a full year of revenues generated by the acquisition of Nora Pharma in October 2022. Nora Pharma's revenues for its fiscal year ended June 30, 2022, were $10,766,982.
-The average 2023 quarter-over-quarter growth in sales was 14%.
-Loss per share decreased from a negative $1.76 per share in 2022 to a negative $0.19 per share in 2023. Neg 9 cents this last quarter, from sales...an astounding improvement.
-SBFM had a sales surprise over guidance of 25%+ the last 2 quarters, and is growing 8% in marketed drugs per the PR.
(In contrast --Pfizer(PFE) had a negative .84% and dropped only 6% in the same timeframe, where SBFM dropped a whopping 721% )
-SBFM had $6.6 million in GP on 2023, a 488% growth YOY(!).
-Expenses decreased 54% YOY(!)
-Again, we must reiterate, as it is so important--SBFM has an extremely attractive, tiny float of $1.22 million shares, the top ingredient for a "BOOM".
-April 5th SBFM had the equivalent share price of $236.80/sh
and that was before the extra drugs added,
and the NIOPEG news.
The company is FLUSH with cash, $8.83/per share-- CASH ALONE. Quite undervalued at just the current $2.34 for their earnings, and future potential.
-SBFM is EXTREMELY good value based on its book value relative to its share price, compared to the US Drug Manufacturers' Specialty & Generic industry average.
Extrapolate that out with the 25.375x multiple, that comes to $41.65/share.
SBFM just received Nasdaq notice of Compliance, so they're good
on that front as well. What holds them down is angry shareholders, both past and present.
PT =$7 (318% upside potential.)