Tag Archives: Portfolio

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Investing in stocks of bankrupt companies + new research report

Investing in stocks of companies that went bankrupt, seriously? Seriously! What at first sounds like a recipe for disaster, indeed can be a lucrative endeavor. A bankrupt company is not the same as the ceasing of operations. Indeed, often it is even the case that companies go into bankruptcy restructuring while everyday operations continue. This area can be a great treasure trove to fish for potential multi-baggers where others don’t bother due to negative associations. A premier on Financial Engineering: My Premium PLUS members receive my latest stock idea – a pick that recently emerged from bankruptcy – with the potential to multi-bag.

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3 Years of Breaking the Code of “Safe” Stocks and True Value

It’s been three years (and a month) since I launched Financial-Engineering.net in August 2022 to share my unfiltered thoughts on stocks, their valuations, risks like dividend cuts, and my best ideas that survive my rigorous research process. In past anniversary posts, I’ve offered food-for-thought insights. Today, I’m cracking the myth of “safe” stocks.

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Artificial Intelligence meets natural stupidity – and a potential winner no one is counting on

Is AI the biggest bubble we have ever witnessed? There are many voices claiming so, while others are of the view mankind has reached a new plateau in its evolution. As this is not a new topic per se, and my skepticism is well-known among my readers, I am not going to drill deeper on this front. However, there is a subtopic that deserves much more attention than it actually gets. Maybe because it is so boring and likely ahead of its time, the majority currently does not care. I do, though. And you probably should either.

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Are we seeing (again) the Erosion of Brand Values? + new research report

Many investors seek “moats”, or key differentiators that keep competitors at a distance. These “high-quality stocks” not seldom trade at premium valuations. At least for as long as this superior status is perceived. One such edge can be a brand. Well-known names create a barrier which in the best case even keeps new entrants out of the game entirely. However, it is no secret that brands come and go. Are we seeing another washout where once thought-to-be indispensable names are struggling for a reason? All my paid members receive my latest stock idea. It is a company with a strong market position where the brand name is irrelevant, for most even unknown.

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(Un)Safety first: The Drama of Sarepta Therapeutics

Biotech stocks are known for two things: either being graveyards for shareholders’ money or generating outsized returns – especially if they become multi-baggers (assuming one is positioned before the retail crowd discovers such ideas). While not every biotech stock turns out to be a do-or-die binary bet, it is safe to say that those stocks with big moves catch much attention – no matter the direction. Sarepta Therapeutics is such a case. It has even offered its shareholders both, an astronomical rise and a fall from grace despite generating billion-USD sales. A case study worth to have heard of.

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PVH Corp.: Trading at 6x earnings – still not a buy

While it likely makes sense to be cautious when a stock trades at a high valuation multiple, the case of PVH Corp. might raise some eyebrows – at least at first sight. The company owns two well-known apparel brands, has been constantly profitable, is generating healthy free cash flow and even buying back its own shares aggressively at a low valuation, seemingly generating strong shareholder value. Shares, however, only trade at a 6x price to earnings ratio. I’ll tell you while this likely is still not a bargain.

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Is Insmed a Promising Biotech Blockbuster? + new research report

Insmed, a biotech company with one approved drug and a very promising pipeline, in the last 13 months saw its stock going up by a factor of no less than 4x – plus 300%! There were two key events each propelling the stock decisively higher. Both were updates on ongoing clinical trials only. I am saying deliberately “only”, because it is not even a given that biotechs surge so much after drugs get approved by the FDA, yet, here it happened twice following just updates to clinical trials. The reason: Insmed’s assets are very promising with each potentially achieving blockbuster status (> 1 bn. USD is sales, both potentially multi-billions). Is it now time to jump onto this precious opportunity? My Premium PLUS members will soon receive my latest stock idea with a much more attractive setup.

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Don’t Get Hooked: How clinging to stock peaks can capsize profits + new stock idea

Some investors tend to put too much weight on a stock’s all-time high when fishing for bargains. Only because a stock has been (much) higher in the past, does not automatically mean the current setup is attractive or even dirt-cheap. Unfortunately, often this reference point – the all-time high – is used as a justification for why a stock must be cheap now. I am raising my finger. It is not enough to just look at the former high. The entire setup must be attractive, otherwise the risk to grab a value trap is high. All my paid-members will receive my latest stock idea – a barely known, profitable growth company with an excellent market position where the all-time high should be taken out soon.

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The case of e.l.f. Beauty — chic story meets a glamorous valuation

The comparatively young company e.l.f. Beauty is famous among younger generations thanks to low-price, high-value and cruelty-free cosmetics. Its stunning rise, disrupting the industry with bold innovation, has glossed its stock with a remarkable run, reflecting glamorous growth and consistent market share gains for years. After its peak, the stock fell by three quarters and has more than doubled again since then. After the latest earnings, shares surged by more than 20% as a big acquisition was announced. Is this a beautiful compounder to have an eye on?

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WD-40: an overlooked portfolio lubricant?

Last Sunday, I finally went after an annoying task that had been waiting for me for too long: to remove sticky and really ugly glue from an entire big window frame. My first attempts failed miserably and I had left it untouched for some time. But that stuff needed to be finally done. After some research, I found the solution: WD-40, the home workers best friend. While in full swing, I remembered that WD-40 is also a publicly listed company! The stock has practically always been extremely expensive, but I haven’t covered it for years. Time for an update to answer the question whether this is a smooth slide or a rusty bet.

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