Moby Dick has the best first page of any novel. Herman Melville wrote:
Call me Ishmael. Some years ago—never mind how long precisely—having little or no money in my purse, and nothing particular to interest me on shore, I thought I would sail about a little and see the watery part of the world. It is a way I have of driving off the spleen and regulating the circulation. Whenever I find myself growing grim about the mouth; whenever it is a damp, drizzly November in my soul; whenever I find myself involuntarily pausing before coffin warehouses, and bringing up the rear of every funeral I meet; and especially whenever my hypos get such an upper hand of me, that it requires a strong moral principle to prevent me from deliberately stepping into the street, and methodically knocking people’s hats off—then, I account it high time to get to sea as soon as I can. This is my substitute for pistol and ball.
It is well known that investing in stocks is a psychological game. One has to be in stable control of one’s emotions.
But sometimes you feel like you must weigh the risks and vent the spleen, to proverbially knock peoples hats off.
So, here are three speculative long shots to get you started.
AST Space Mobile Inc. (ASTS)
ASTS jumped 56% today on news of a $100 million deal with Verizon.
The companies announced a partnership to provide space coverage over the entire United States. The press release stated:
“This new partnership with Verizon will enable AST SpaceMobile to target 100% coverage of the continental United States on premium 850 MHz spectrum with two major U.S. mobile operators in the most valuable wireless market in the world, a transformational commercial milestone,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “This partnership will enhance cellular connectivity in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.”
AST is building the world’s only space-based broadband accessible from your smartphone.
The company has $212.4 million in cash and another $51 million in credit. The company is burning $56 million a quarter. ASTS has a market cap of $1.16 billion.
The five-year deal with Verizon means that the company has a good chance of making it to profitability.
Rezolute Inc. (RZLT)
RZLT is a clinical-stage biotech. Today they reported positive “topline results from the Phase 2 clinical study of RZ402 in patients with DME who are naïve to or have received limited anti-vascular growth factor (anti-VEGF) injections.”
This has to do with hypoglycemia resulting from insulin receptor over-activation. The market seems to think they have a good chance of going to and passing phase 3 trials.
It’s a speculative biotech with a good-looking chart. They have a $157 million market cap and no revenues. But they do have $92 million in cash or $2.34 a share. Given that it is a ~$4 stock, RZLT is a cheap longshot bet at a big return.
CureVac (CVAC)
Another biotech that is up 6% today is CureVac (CVAC). This company is making vaccines based on mRNA. They are up because they announced dosing for their phase 2 study for seasonal influenza in collaboration with GSK. They have other prophylactic vaccines for the treatment of rabies, melanoma, and other cancers.
The CVAC price chart shows that the downtrend is broken and we all know that gaps get filled.
The company has a market cap of $822 million and cash of $300 million with just $40 million in debt. They have no earnings, but revenue was up 73% last quarter to $59 million.
You could get a fast 20% pop out of this as it fills that gap formed in late December. Or you could hold for the long haul with the idea that biotechs have bottomed, and CVAC will discover the cure for Avian Flu.
All the best,
Christian DeHaemer
Outsider Club
P.S. Recently I suggested you buy Avino Silver & Gold (ASM) which is up 16%, Bitcoin (BTC) which is up 64% and Whitehaven Coal (WHITF) which is up 13% and pays a 6% dividend.
In case you missed it, Brit makes the argument for power companies: https://www.outsiderclub.com/buy-power-stocks-now/
And tells you why he is bullish: https://www.outsiderclub.com/here-is-why-you-buy-now/
And Biden is releasing Gasoline for the election: https://www.msn.com/en-us/money/markets/the-biden-administration-is-releasing-gasoline-reserves-will-it-lower-prices/ar-BB1mYlwe
