About 18 months ago, I made a post about Micron. Looking back at that post and the replies, I am amused and fascinated at how we view certain industries, in this case, the cyclical nature of memory companies.
But this also makes me wonder, taking a contrarian view (not for the sake of it) can sometimes pay off big time. What have been some of your bets that have been against the grain (as per the market)? What are some industries/companies you think the market is wrong about today?
And no, I am not taking about meme stocks. I mean actual, real businesses.
I just want to hear from fellow market players/investors and of course, find opportunities. If this is not a post suited for this subreddit please let me know; I will take it down.
Micron post in question: https://www.reddit.com/r/ValueInvesting/s/MhceKC2REt
What are your underrated/contrarian bets today?
byu/FireEjaculator instocks
Posted by FireEjaculator
17 Comments
Just got PLTU on sale
SaaS companies
$SPXS
What about MSFT since it’s been beaten to shit? Apparently has a good long term prognosis due to its dominance in corporate software and its AI possibilities. Strongly considering a buy since it’s a great company that seems momentarily out of favor.
Not 100% conviction on this name but I took a small position in TER. Hard to see how they don’t blow up with the semis doing what they’re doing
MSFT is like my wife, its gonna take all my cash
adobe
Beauty: ELF and Estée Lauder are perfect because there both affected by tarrifs and oil prices. Will buy after earnings is they stay depressed
NOKIA
Thank me later 🙂
Xiaomi
my only contrarian play in my por is mrk & brkb
PPIH Perma pipe. boring pipe co. that are expanding into datacenter’s for cooling and leak detections.
I made this [post ](https://www.reddit.com/r/stocks/comments/1s83xap/what_are_your_thoughts_on_crcl_at_this_price_89/)about a month ago on Circle (CRCL). Many people were not a fan (some for good reason). Not that it is my favorite stock, but it best fits your question of “bets against the grain”.
In the post I go much more into detail about my thoughts. But in general I think it has potential to benefit as more things get tokenized. Blackrock has made partnerships with them for a money-market fund (USDXX) and the BUIDL fund. And it seems that no matter which network wins, Circle will benefit.
SaaS altho I donno which one
It’s basically the GOOG trade (“ChatGPT killed search”) of this year.
The whole “agents call api so no seat based pricing” literally makes no sense
perhaps $NOW? Or standard $CRM
Solar
Reddit stock is mis-priced. The fundamentals are off the charts and the market hasn’t given it the credit it deserves yet. It will soon, and it will pump.
Rule of 40 score is 100+. Growing revenue 70% year over year and their margins are extremely juicy. Other growth companies with these kind of metrics trade at much more aggressive forward PE ratios than Reddit currently does. 6th most visited website in the world at a $30 Billion valuation – the companies ahead of it have trillion dollar valuations. Reddit just started monetizing, and the runway for its ads and ARPU to improve is vast.
Already provides data licensing to Google for Gemini and OpenAI for ChatGPT. Likely will provide the same for Anthropic soon since Reddit is already suing them for scraping their data without a licensing deal, so they will likely settle and agree to work together. Both the Google deal and OpenAI deals are up for renewal soon, and rumor is that they will potentially move from a flat fee to a usage based revenue structure which would be absolutely huge for Reddit.
Everyone is obsessed with AI and LLMs right now. Those models constantly need to be fed human conversational data to stay sharp and keep improving – there is no better provider of that kind of data than Reddit.
By the way… hasn’t been added to the S&P500 yet, and it meets all the criteria for addition. This would trigger large institutional buying.
Zeta global holding