Good morning investors,
The end of summer has arrived and fall is quickly approaching. Only four more months left of 2021 then we are onward and upwards into the unknown of 2022.
I wanted to take this time to give a quick recap of the portfolio for the month of August. Overall, August was a great month for my portfolio. I invested heavily into coal stocks which saw a dramatic rebound in valuations as coal prices continued to increase.
For subscribers I wrote up two ideas in the month of August that were geared toward the coal inflationary theme. Please see those ideas below with the respected research reports.
The first company is up 37% since I wrote it up on August 4th and the second company is up 21% since I wrote it up on August 12th. Despite the dramatic re-rating in both stocks, I still maintain my position and think there is more upside to come. Why? The price of coal has risen 15-40% (depending on what market you are using) since August with no sign of slowing down.
Higher pricing equates to significant operating leverage as the costs to produce coal do not increase when pricing rises. This means every incremental dollar of pricing will drop straight to the bottom line. At the current price levels, both of these companies have the potential to generate as much free cash flow as their market capitalization rates are worth.
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For the month of September I have a few new stocks ideas that will be dropped for subscribers. One is a company trading close to 1x earnings with significant real estate ownership and a strong balance sheet. This company is very illiquid so having patience when establishing a position will be key.
In addition, I plan to roll out my “all in” portfolio to subscribers. I started an “all in” portfolio at the beginning of this year to see how fast I could compound my money if I went all in on my best ideas. I funded the account with $23,500 and its currently up 61% so far for the year.
The goal for the “all in” portfolio is to put 100% of the portfolio into my best idea. These ideas will have a significant margin of safety combined with high implied upside. Should my analysis be wrong, I won’t lose much money (if at all) and if I am right I will win big.
Subscribers to the newsletter will get access to what idea I have in my “all in” portfolio and how I plan to position this portfolio in real time. Overall, making these huge concentrated bets should prove to be profitable over the long-term as the larger the portfolio gets the faster it will compound.
If you want access to all of my previous research reports, future stock picks and what I will be investing my “all in” portfolio in, subscribe below for only $10 dollars per month.
If you decide my research is not for you, you can always opt out at anytime. Feel free to reach out if you want a free sample of one of my research reports.
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