Did I Make a Mistake with These Three Stocks?

TL;DR

The author discusses three stocks — Tattooed Chef, Honest, and Corsair Gaming — that are currently underperforming, with significant losses. To remain down in the future, these companies would need to fail in achieving profitability, see revenue stagnation, or face a slowdown in innovation, which the author believes is unlikely. They provide price targets over the next three years, suggesting potential for recovery and growth.

Transcript

hello folks here today we gotta talk about not the most fun subject in the world we gotta talk about if i made um some some really large mistakes here with certain stocks and we're gonna talk about three stocks in particular in this video here today and we're gonna talk about not really the bullish thesis on these stocks we're going to mostly talk ... Read More

Key Insights

• 🖤 Realistic bearish scenarios for the stocks include lack of profitability, revenue stagnation or decline, and innovation slowdown.
• ❓ The author believes that achieving profitability is highly realistic for all three stocks.
• 👾 Corsair Gaming is expected to benefit greatly from the upcoming DDR5 memory market, which will be a game changer for the company.
• 🥳 The author's price targets are based on minimum net income and forward price-to-earnings ratios, and they believe all three stocks have significant potential for growth in the next three years.
• 🖐️ Market timing, retail support, and investor sentiment played significant roles in the decline of these stocks.

Questions & Answers

Q: What are the main reasons behind the decline of Tattooed Chef?

The decline in Tattooed Chef can be attributed to the postponement of quarterly reports, negative market perception due to the postponement, and the stock being predominantly supported by retail investors.

Q: Why did Honest experience significant decline despite positive financial performance?

Honest went public at a time when market sentiment was turning negative, resulting in lack of support for the stock. However, the author believes that the company's financial performance, profitability, and innovation make it unlikely for the stock to remain down in the future.

Q: How can Corsair Gaming overcome its decline?

Corsair Gaming's decline can be attributed to high expectations, intense competition, and supply chain challenges. The author believes that the company's diverse product offerings, profitability, and upcoming opportunities in the memory market (DDR5) will help the stock recover in the future.

Q: What are the author's three-year price targets for the stocks?

The author's three-year price target for Honest is $20+, for Tattooed Chef is $30+, and for Corsair Gaming is $55+.

Summary & Key Takeaways

• The author discusses three stocks that they are currently down on: Tattooed Chef (down 30%), Honest (down 31%), and Corsair Gaming (down 46%).

• They explain the reasons behind the decline in each stock, including issues with quarterly reports, market perception, retail support, and supply chain challenges.

• The author provides their analysis of what would need to happen for these stocks to remain down in the future, including lack of profitability, revenue stagnation or decline, and innovation slowdown.