2021, strong year for stock picking
The end of 2020 and the beginning of 2021 have so far been very strong periods for doing the homework and picking the stocks that are going to benefit most from the easing of Covid restrictions. The general market, often measured by looking at the S&P 500, is definitely not cheap and for the large companies a lot of post Covid optimism is priced in. Those companies are not the place to be anymore for the stock investor. Higher returns can be achieved elsewhere: mostly in picking small and mid cap companies that have not much optimism priced in but are financially stable and overlooked by analysts.
Newsletter portfolio up over 30% in 2021
The Hubens Capital newsletter discusses these small and midcap opportunities and this has worked out very well in 2021. Overall the portfolio (over 35 stocks) is up more than 30% in less than 3 months, while the S&P is up just over 6%. Examples of very profitable stocks this year are:
- Entercom (ETM) up 145%
- Performant Financial (PFMT) up 117%
- Express (EXPR) up 367%
- LEE Enterprises (LEE) up 107%
Many other stocks are up around 50-60% with very few stocks in the red.
Today there are still very strong opportunities
The newsletter focuses heavily on these small and mid cap opportunities and today there are still very strong ones in the market that have the potential to bring returns of 50%-200% over the next 6-18 months. Obviously, the markets can also go down and on the short term one might experience losses. But in such case, the newsletter will advise at what moment to get out or increase the position. Assume a stock is priced in the market for $1.00 but should according to analysis be priced around $2.00. A downturn in that stock, without specific company or industry news, is likely to then become a larger opportunity. In that way, we were able to build large positions in the Covid crash in March 2020 that enabled the investor to make large returns in the recovery after the market crash. A stock market crash is bad for the retail investor that doesn’t have guidance, but the informed investor will outperform in the time after the crash.
Cheap way to boost performance
The newsletter service is a low-cost way to get informed about stocks that are undervalued and interesting to own. There are interesting stocks for the offensive investor, but also for the more defensive investor and for the ones who aim to derive income (dividend) from their investments.