Growth Stock Thoughts
An Investment in Knowledge Pays the Best Interest
Benjamin Franklin
Baidu: Major Potential For China’s Tech Titan
• Strong leadership positions in numerous hypergrowth sectors will drive strong growth expected into 2030.
• Apollo Go self-driving taxis are chartered in several major Chinese cities.
• Macroeconomic recovery in China, the zero COVID policy ended with lots of pent-up demand from consumers and advertisers. Baidu is a leader in search in China.
• Expecting tailwinds in advertising space, as firms shift from cost-saving measures to returning to expansion.
Video: Mobileye MBLY SuperVision Provides Future Growth Avenue. 35% CAGR Revenues and EPS.
• Leader in driver assisted and autonomous driving vehicle technology.
• Strong growth in advanced driver assistance systems, despite making up under 1% of volume, SuperVision makes up 33% of revenue growth.
• $17 billion in contracted sales cumulatively through 2030, with an average system price of $105 expected compared to the current $56.2.
• Robust real-world implementation of SuperVision, with 96,000 units deployed in FY22. Expecting over 100% growth in units shipped for FY23.
• Backed by strong consumer demand for more safety features and more fatigue-reducing driver features.
Bloom Energy’s Growth Blooms with IRA
• IRA (Inflation Reduction Act) should accelerate growth for fuel cells.
• Hypergrowth sector, 2050 neutrality targets, and 2030 reduction targets are approaching fast.
• $10 billion in total backlog, $2.8 in new product backlog.
• First commercialization in carbon capture, expanding hydrogen cells and electrolyzation to Europe. Large expansion in the maritime segment, first successful deployment of a Bloom energy cell on a vessel.
• IRA tax credits significantly incentivize new installations and expand existing modules. Offering $3/kg of hydrogen produced over the electrolyzer’s or fuel cell’s lifetime.
Fiserv: Deep Value Through Dominance In Payments
Fiserv (NASDAQ:FISV) is a financial technology firm specializing in payment processing. Through aggressive M&A, Fiserv hopes to establish a competitive advantage through advanced platform features. Fiserv has consistently outperformed its own estimates and has successfully leveraged several M&A actions in FY22 to gain a foothold globally. These merger actions have already realized $700 million in additional revenue due to acquisitions, 2 years ahead of schedule.
Taiwan Semiconductor Dominates Leading Edge
• Semiconductor market is expected to double in size by 2030. TSM (Taiwan Semiconductor Manufacturing) accounts for 26% of the world’s semiconductor output.
• Largest pure play fabricator, strength comes from long-term relationships.
• Scale and leading-edge technology as one of the only sub 7nm wafer technology manufacturers in the world.
• International expansion slotted in Japanese and American markets driven by a $100 billion CapEx (Capital Expenditure) expansion.
• Western governments want to distance domestic technology products from China and bring manufacturing back to their countries or local allies.
• The US CHIPS and Science Act provides roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States.
SuperVision Provides Future Vision for Mobileye
• Strong growth in advanced driver assistance systems, despite making up under 1% of volume, SuperVision makes up 33% of revenue growth.
• $17 billion in contracted sales cumulatively through 2030, with an average system price of $105 expected compared to the current $56.2.
• Robust real-world implementation of SuperVision, with 96,000 units deployed in FY22. Expecting >100% growth in units shipped for FY23.
• Backed by strong consumer demand for more safety features and more fatigue-reducing driver features.
Video: Global Payments (GPN) Unloved and Undervalued. Strong Growth and Low Valuation. Best of Both Worlds
• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.
3.25% Yield and Healthcare Repositioning for CVS Health
• 3.25% dividend yield, strong free cash generation.
• Oak Street acquisition projected to add $2 billion in EBITDA by 2026.
• Expects significant volume growth at pharmacies with the introduction of several biosimilar and generic drugs in FY23.
• Modest FY23 guidance targeting 7% EPS growth despite some sustained headwinds in retail.
EnerSys Growth Is Electrified By IRA
EnerSys (NYSE:ENS) is an industrial solutions firm focusing heavily on stored energy. ENS has 22% of global stored energy for industrial applications.
[Ben Speaks at 35:30] Money Life with Chuck Jaffe: It’s ‘The biggest inflection point for most investors in their lifetime’
Benjamin Halliburton, founder and chief investment officer at the Building Benjamins investment newsletter, says that inflation and interest rates bottoming out last year after a decline/trend that lasted for 40 years has now put investors into a new territory, forcing them to consider areas and industries that benefitted from decades of disinflation. It’s the biggest inflection point of most investors’ lifetimes, he says, but it’s an adjustment that people will need to make to keep the profits rolling in the changed conditions they’ll see for years to come.
China Becomes More Difficult for Foreign Investors
China Becomes More Difficult for Foreign Investors Recent Sells January 19, 2022 Investment Thesis China has implemented policies to reverse some of the free-market policies
Perion Networks PERI had a great quarter. Revenues up 45%. EPS up 90%.
• Perion Networks (PERI) had a great quarter.
• Revenues up 45%. EPS up 90%. Current price 22 vs high of 30. Stock surged after quarter but has pulled back.
• A good entry point for a secular 30% grower.
• Over 500 advertising partners, 200 publishers, and 8 billion page views in 2020.
• Massive 45% increase in total revenue in third quarter driven by 30% increase in average spend and 12% increase in new clients.
• AI-powered solutions to a traditionally “analog” industry. The total addressable market (TAM) is expected to climb to $524 billion by 2024, from $340 billion in 2020.
