Natural Resource Gas Partners Earns "Pro Pick Status"
Plus a $10 SOFI target and a new-school defense stock ...
In this weekend edition of Stock Picker’s Corner (SPC) …
Our “Desert Island Stock Challenge” meets the Money Show.
What’s next for SoFi Technologies Inc. SOFI 0.00%↑ after a triple earnings beat.
And a New Cold War requires a new type of defense stock.
💲Money Show Feature
The SPC “Desert Island Stock Challenge” from early July was featured this past week in the Money Show’s “Top Pro’s Picks.”
As a quick recap, Chief Stock Picker Bill Patalon posed the following question:
If you were on a desert island for two to five years and could put some of your money in just one investment — knowing that you couldn’t sell it until you got off the island — what would it be❓
Two of the contestants, Matt Warder of The Coal Trader and Six Bravo of Special Situation Investing, selected the same investment: Natural Resource Gas Partners NRP 0.00%↑.
For a little background, Natural Resource owns and manages 13 million acres of mineral rights through 150 leases with more than 50 lessees. You can see why Matt likes the stock here and why Six Bravo likes the stock here.
We also have a “bonus” Quarterly Roundtable on NRP here for members of SPC Premium.
🏦A Bold Bet on the Future of Banking
On Tuesday, SoFi had a “triple beat,” reporting higher-than-expected revenue and earnings per share (EPS) and boosting its guidance.
The digital-first financial company bumped up its EPS estimate for the year between 9 cents and 10 cents — from a previously estimated range of 8 cents to 9 cents.
SoFi also boosted its net revenue forecast to a range of $2.42 billion and $2.46 billion from the earlier range of $2.39 billion and $2.43 billion.
Despite that upbeat view with its morning earnings report, “Mr.Market“ wasn’t impressed: Shares dipped 2% by the end of the day.
One downer is the perception that SoFi still relies heavily on student loans — in spite of last quarter’s 46% growth in its financial services and tech-platform segments. Another, according to a Barron’s report: Short sellers still want to “punish” the stock and are pushing their position.
Whatever the reason, SoFi has called 2024 a “transitional year.” The company just logged its third-straight profitable quarter, providing some “proof” to that claim.
And Danny Brody — a serial entrepreneur and the publisher of The Net Worth Club — made a bold prediction here in early July that SoFi would trade for $10 by year’s end.
After this earnings report, Danny put together his latest thoughts on SoFi, which you can hear in less than three minutes in the video below:
🔴A New Type of Defense Stock for the New Cold War
On July 24, the latest plot development in the New Cold War storyline unfolded when a total of four nuclear-capable bombers flown by Russian and Chinese pilots came within 200 miles of the coast of Alaska.
While joint flights between Russia and China have previously occurred, this was the first time the duo conducted an “exercise” so close to American soil by flying through the Alaska Air Defense Identification Zone (ADIZ).
“It represents an ‘escalation’ of sorts. It was meant as a message. It comes at a time of great uncertainty here inside America. And it’s a ‘preview of coming attractions’ — as a sign of things to come,” Bill said on Monday.
With the novel advancement of weaponry that includes drones, autonomous vehicles, advanced satellites, artificial intelligence (AI) and cybersecurity, Bill sees the need for a new type of defense company to win this New Cold War: Palantir Technologies Inc. PLTR 0.00%↑.
It is the poster child for a “high-risk stock,” but with annual earnings growth estimates of 85% over the next five years, it could be a high-reward stock as higher stock prices tend to follow higher earnings growth.
He’ll walk you through why you may want to consider starting a foundational position.
We’ll see you back here next week.
Take care,
This is great stuff, thank you for the timely posting on SOFI, could be the time to press.