$Castor Maritime (CTRM.US)$ I am holding this long term bas...
$Castor Maritime (CTRM.US)$
I am holding this long term based on the values and fundamentals. The earnings and income growth is high, and the low P/E indicates a better return than any other stock in the market. This scares me, but because I am unable to find out reasons why this is, I am forced to conclude that there is no rational reason why this is. As the company stands now, even if revenue dropped 50% this would still be considered a value play. If the stock market returns 10% on average YoY, one good atrategy of finding stocks that beat this average is finding those with ROIC higher than 10%, P/Es of 10 with stable or no growth, or high P/Es with high growth. CTRM represents an unrepresentive category because realisticaly they don’t happen that is:
it has high growth, low P/E, high ROIC, NO DEBT. This was before the Toro spinoff, but now rings true for both $TORO CORP (TORO.US)$ and CTRM stocks. Afterall, you take two undervalued businesses under one company and then split them in two, you still have two undervalued businesses. Thus I would recommend analyzing the two stocks and looking for reasons not to buy these companies, because this looks like a potential trap.
I’ve done this to the best of my abilities and haven’t found a reason so I am sticking with this company. HOWEVER. I do not hold any shares, except for TORO. Why? Because CTRM will need to have a reverse split because of their stock price being under $1 or face delisting, and that will cause their stock to plummet. Thus, I am simply waiting at this point.
This is an Extremely risky play on a microcap penny stock. Please do not gamble your money on it like a little child.
I am holding this long term based on the values and fundamentals. The earnings and income growth is high, and the low P/E indicates a better return than any other stock in the market. This scares me, but because I am unable to find out reasons why this is, I am forced to conclude that there is no rational reason why this is. As the company stands now, even if revenue dropped 50% this would still be considered a value play. If the stock market returns 10% on average YoY, one good atrategy of finding stocks that beat this average is finding those with ROIC higher than 10%, P/Es of 10 with stable or no growth, or high P/Es with high growth. CTRM represents an unrepresentive category because realisticaly they don’t happen that is:
it has high growth, low P/E, high ROIC, NO DEBT. This was before the Toro spinoff, but now rings true for both $TORO CORP (TORO.US)$ and CTRM stocks. Afterall, you take two undervalued businesses under one company and then split them in two, you still have two undervalued businesses. Thus I would recommend analyzing the two stocks and looking for reasons not to buy these companies, because this looks like a potential trap.
I’ve done this to the best of my abilities and haven’t found a reason so I am sticking with this company. HOWEVER. I do not hold any shares, except for TORO. Why? Because CTRM will need to have a reverse split because of their stock price being under $1 or face delisting, and that will cause their stock to plummet. Thus, I am simply waiting at this point.
This is an Extremely risky play on a microcap penny stock. Please do not gamble your money on it like a little child.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Value investing is the only (right) type of investing. Follow my paperfolio.
122Followers
45Following
621Visitors
Follow
Mohamad Ghadafi : How long so far have you been holding the Stock ?may I know the profit have you earning till now ?
sTone83 : If you want value investing, I'll give you two names that are currently suitable for entry:$Wingstop (WING.US)$ $Starbucks (SBUX.US)$
The Value Investor OP sTone83 : $Wingstop (WING.US)$ is not a value stock. It is not even remotely close to being a value stock. In fact, I would consider shorting it because it is so grossly overvalued. Worst part is, shareholders have negative equity. Meaning, if you buy $Wingstop (WING.US)$, you are literally buying yourself into debt. The company’s balance sheet is terrible. Also, it has a $6b evaluation, but made like $53m last year. $6b / 60m = 100. As it currently stands unless this company has some hyper growth it would essentially take 100 years for it to make enough money to be able to pay for its current market cap with its current profits (or in other words to double your money). Obviously it would not take this long for real because revenue and profits are growing, but a 15-20% revenue growth on a restaurant business does not justify a P/E of 100. At least if I were to pay a premium for a company it should be something like $Apple (AAPL.US)$ or $Amazon (AMZN.US)$ but paying a large premium for a company that makes 1% or less of its market cap in earnings and/or free cash flow is a horrible idea. You may as well put your money into treasury notes, savings accounts, and bonds, at least you can get 5% risk free. I’m not even going to look at $Starbucks (SBUX.US)$, I don’t think there’s a need to.
The Value Investor OP Mohamad Ghadafi : I am not currently holding the stock on any of my real portfolios. You can check my paperfolio, I don’t keep track of every stock’s performance because it’s too complicated to do so across all my different portfolios and trading apps. Every stock in my paperfolio is something I either have, or want to continue having for the next 5-10 years. There are stocks that I own that are not in my paperfolio, and the percentages don’t match my actual portfolios’ distribution, but overall its a good non weighted metric for gauging my stock picks over a long period of time. Paperfolio
I do not recommend copying what ever I buy or using my advice unless you are committed to value investing. I largely buy into undervalued stocks with negative sentiment, this can lead to negative performance for months, or years at a time. This historically tends to lead to outperformance, but value stocks tend to underperform for sometimes long periods of time before they ultimately outperform and make up for their losses. This requires investing with money you don’t immediately need, and it requires extreme patience and a masochistic mentality where you enjoy seeing markets down 50% in the red. It’s a very boring form of investing - unless the market is bleeding - in which case its really fun. You will 100% lose money if you simply try value investing or try buying “value” stocks without understanding value, or that it is a lifelong commitment that at times may not substantially reward you for years or even a decade.
sTone83 The Value Investor OP : Good luck my friend![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")