Workflow
3 Cheap Stocks That Could Grow Your Wealth
MNSTMonster(MNST) Investor Place·2024-07-13 17:56

Core Insights - A 1,000investmentinMonsterBeveragein1994wouldhavegrowntoapproximately1,000 investment in Monster Beverage in 1994 would have grown to approximately 2 million by 2024, representing a 200,000% return, highlighting the potential of investing in undervalued stocks with strong leadership [1] Company Summaries DLocal (DLO) - DLocal is a Uruguayan fintech company founded in 2016, focusing on online payments in emerging markets [2] - The company's share price has decreased by 53% year-to-date in 2024, primarily due to declining gross profit margins [2] - Despite a 49% increase in total payment volume to 5.3billioninQ12024,grossprofitmarginsfellby115.3 billion in Q1 2024, gross profit margins fell by 11% to 34%, resulting in only a 1.2 million year-over-year increase in gross profit [2][3] - DLocal's revenue in Egypt surged 11-fold to 39millioninQ12024,matchingitstotalrevenueforAfricaandAsiainQ12023,indicatingreducedrelianceonLatinAmerica[3]HighPeakEnergy(HPK)−HighPeakEnergyownsover100,000acresintheMidlandBasin,Texas,andhasreporteda11039 million in Q1 2024, matching its total revenue for Africa and Asia in Q1 2023, indicating reduced reliance on Latin America [3] HighPeak Energy (HPK) - HighPeak Energy owns over 100,000 acres in the Midland Basin, Texas, and has reported a 110% return over the past five years, outperforming Exxon Mobil [5] - The company reported Q1 2024 operating revenue of 287.8 million, a 29% increase year-over-year, and operating income of 103million,up16103 million, up 16% from Q1 2023 [5] - Discretionary cash flow for the quarter was 195.7 million, a 27% increase year-over-year, with production rising to 49,729 barrels of oil equivalent per day [5] - HighPeak's enterprise value is 2.98billion,withanEBITDAmultipleof3.51x,significantlylowerthanExxonMobil′s7.42x[6]IrisEnergy(IREN)−IrisEnergyfacedcriticismfromshortsellerCulperResearch,whichquestionedtheviabilityofitsAIplans,suggestingashiftinfocusduetodecliningBitcoinminingprofitability[7]−BernsteininitiatedcoverageofIrisEnergywithan"outperform"rating,indicatingthatBitcoindatacenterscouldberetrofittedforAIdatacentersduetotheirexistinginfrastructure[7]−Bernsteinestimatesthat152.98 billion, with an EBITDA multiple of 3.51x, significantly lower than Exxon Mobil's 7.42x [6] Iris Energy (IREN) - Iris Energy faced criticism from short seller Culper Research, which questioned the viability of its AI plans, suggesting a shift in focus due to declining Bitcoin mining profitability [7] - Bernstein initiated coverage of Iris Energy with an "outperform" rating, indicating that Bitcoin data centers could be retrofitted for AI data centers due to their existing infrastructure [7] - Bernstein estimates that 15% of Iris Energy's power capacity will be reallocated for AI data centers, with a target price of 26, more than double its current trading price [8]