Market Overview:
Confirmed Uptrend.
Stocks continue to act well. All the indexes are in uptrends. Small cap growth is acting better.
“All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.”
— Peter Lynch
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Recent Recommendations:
$ YRD Yiren Digital. Acting extremely well. +67% in a couple months.
Overview:
The following stocks are incredibly undervalued and could easily be bought out in the next year.
Please review the technical overview section, as not all selections are ready for purchase.
Grupo Televisa: Symbol: $ TV $3.11
Synopsis: Incredibly Undervalued asset which caters to a fast growing demographic.
Grupo Televisa: Televisa is a major telecommunications corporation which owns and operates one of the most significant cable companies as well as a leading direct-to-home satellite pay television system in Mexico.
In addition, Televisa is the largest shareholder of TelevisaUnivision, a leading media company producing, creating, and distributing Spanish-speaking content through several platforms
The Hispanic Market in the US:
Grew double-digits to $3.2 trillion last year, making it the largest Spanish-speaking market in the world
The equivalent of the fifth largest national economy,
and the fastest growing economy in the world
You would expect a major company with such a growth tailwind, to be selling at a sky high valuation.
However, Grupo Televisa is actually selling at a discount to its valuation.
Net income is rising while the (P/E) price to earnings ratio is declining.
The disconnect seems to be that Wall Street is concerned about competition from streaming services.
Debt:
I don’t like debt, but the debt level with Grupo Televisa is reasonable considering the cash flow.
Assets:
Owns 45% of Univision and plans to spin off this asset sometime this year.
Owns 58.7% of SKY satellite.
$ BGFV Big Five Sporting Goods $5.46
Big 5 Sporting Goods Corporation is a sporting goods retailer in the western United States. The Company conducts its business through its subsidiary, Big 5 Corp. The Company is operating approximately 432 stores and an e-commerce platform under the Big 5 Sporting Goods name. It provides a full-line product offering in a traditional sporting goods store format that averages approximately 12,000 square feet. Its product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation
Big Five reported disappointing earnings in its last quarter. Earnings are expected to be released on 2/27/24.
I would not purchase shares until after the earnings release. Please read the technical overview section for the correct buy point.
Incredibly undervalued retailer. Most stores are on the west coast. A nice addition for many retailers.
The company has been a serial disappointment. It trades at half of book value. Has been paying dividends and buying back stock.
However, because it is now unprofitable, it remains a wait and see stock.
Technical Overview:
The shares are still in a downtrend. An earnings surprise would most likely result in a new uptrend, but it its best to wait and see.
A break above the 30 week trend line at ~$6.50 would be the area to watch. Ideally, a move to $6.5 would be accompanied with large volume (indicating institutional interest).
For now, it’s best to wait on earnings.