In this article, we will discuss the 10 best stocks under $30 according to Ravee Mehta’s Nishkama Capital. You can skip our detailed analysis of the companies and go directly to the 5 Best Stocks Under $30 According to Ravee Mehta’s Nishkama Capital.
Nishkama Capital was founded by Mr. Ravee Mehta in 2013. Before founding Nishkama Capital, Mehta worked at famous hedge funds like Karsch Capital and Soros Fund Management. Mehta was a Summa Cum Laude from the University of Pennsylvania with a BS Economics degree from the Wharton Business School and a BS System Engineering degree from the School of Engineering and Applied Science under the dual degree program in 1997.
During this hiatus from 2010 to 2013, Mehta worked on his book, The Emotionally Intelligent Investor. The book challenges the conventional wisdom of replicating the strategies of popular investment gurus. Mehta highlights that the biases, motivation, and personality traits of an investor can be very different from investment gurus and this would act as an impediment in attaining success. The book is a guide to building an investment framework that is aligned with your personality.
According to the publicly available 13-F filings for the second quarter of 2021, Nishkama Capital’s asset under management (AUM) stood at $438 million. Ravee Mehta has a number of notable stocks in his portfolio. As of Q2 2021, Nishkama Capital had a cumulative 13% stake in Twitter, Inc. (NYSE:TWTR), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG).
Our Methodology
We have shortlisted 10 stocks under $30 from Ravee Mehta’s Nishkama Capital’s portfolio for the second quarter of 2021. These stocks take up around 22% of Nishkama Capital’s portfolio.
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Best Stocks Under $30 According to Ravee Mehta’s Nishkama Capital
10. Compass, Inc. (NYSE:COMP)
Nishkama Capital’s Stake Value: $1.6 million
Percentage of Nishkama Capital’s 13F Portfolio: 0.36%
Stock Price as of October 27: $12.96
Number of Hedge Fund Investors: 23
Compass, Inc. (NYSE:COMP) is a residential real estate broker aimed towards streamlining the search, buy, sell or rent experience for its users through its proprietary online platform. It is the second-largest residential broker in the and US has over 18,000 agents under its wings. The corporation went public in April 2021 and since then 23 hedge funds have taken a combined stake of roughly $708 million in the company by the end of the second quarter of 2021.
Investment management firm ClearBridge Investments mentioned Compass Inc. (NYSE:COMP) in its Q2 2021 investor letter. Here’s what the firm had to say:
“Compass also falls in the software camp. The real estate technology company and brokerage is disrupting the traditional residential broker market with tools that improve operational efficiency for brokers. Their tools have first-mover advantage in the industry and are attracting top brokers from the best markets, resulting in significant market share gains in a short period of time.”
9. Payoneer Global Inc. (NASDAQ:PAYO)
Nishkama Capital’s Stake Value: $3.1 million
Percentage of Nishkama Capital’s 13F Portfolio: 0.70%
Stock Price as of October 27: $7.69
Number of Hedge Fund Investors: 40
Payoneer Global Inc. (NASDAQ:PAYO) is an online payments company that is involved in providing a seamless cross-border payment platform to more than five million customers. The company provides its services in 35 plus languages, operates out of 24 offices globally with a headcount of over 2,000 employees.
For Q2, the company reported quarterly revenue of $110.92 million, up 41.5% YoY and outperforming the Street’s estimate by 7%. The under-pressure stock price has been observed by the analysts and according to Ashwin Shirvaikar at Citi, the “current attractive valuation” provides a “good opportunity for investors” to accumulate Payoneer Global Inc. (NASDAQ:PAYO).
8. Despegar.com, Corp. (NYSE:DESP)
Nishkama Capital’s Stake Value: $4.3 million
Percentage of Nishkama Capital’s 13F Portfolio: 0.98%
Stock Price as of October 27: $11.20
Number of Hedge Fund Investors: 22
Despegar.com, Corp. (NYSE:DESP) is an online travel portal with a strong presence in 20 Latin American countries offering a wide range of travel services like airline tickets, car rental services, hotel, and lodging services along with travel packages, and many other services. The corporation has a presence of 270 airlines, 690,000 locations for accommodation and nearly 1,260 car rental agencies on its platform for 18 million customers. The Buenos Aires, Argentina-based company can be considered as the Expedia of Latin America and as a result, 22 hedge funds have taken a combined position of $212 million in Despegar.com, Corp. (NYSE:DESP) as of Q2 2021.
The stock price of Despegar.com Corp. (NYSE:DESP) is down 15% in the past two weeks as Latin America has not been able to stage a solid response against the COVID-19 pandemic. The continent is home to 8.4% of the world’s population but has accounted for 30% of the death resulting from the pandemic. This can provide an attractive entry position as the Latin American economies are expected to rebound once vaccines roll out across the region and there have been signs of higher travel demand in the near future.
Just like Twitter, Inc. (NYSE:TWTR), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Despegar.com Corp. (NYSE:DESP) is one of the stocks on the hedge funds’ radar.
7. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)
Nishkama Capital’s Stake Value: $4.5 million
Percentage of Nishkama Capital’s 13F Portfolio: 1.03%
Stock Price as of October 27: $28.52
Number of Hedge Fund Investors: 24
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) is a New York-based floral and food gift retailer with a significant online presence. The company is focused on various annual occasions like Mother’s Day, Valentine’s Day, and Halloween. In addition to this, 1-800-FLOWERS.COM Inc. (NASDAQ:FLWS) also caters to life events like birth, death, and recovery from diseases and ailments through various floral and gift basket options. Two dozen hedge funds have taken a position worth $93 million in the company during the second quarter of 2021, reflecting an increase of 48% on a sequential basis. This reflects the extent to which the hedge funds are bullish on the stock and accumulating their positions.
1-800-FLOWERS.COM Inc. (NASDAQ:FLWS) reported its Q2 2021 earnings results. The company’s revenue came in at $309.4 million as opposed to analysts’ estimate of $296.88 million. Meanwhile, the loss per share came in at 20 cents, five cents lower than the analysts’ forecast. Following this development, the stock price went up by 9%.
6. Barnes & Noble Education, Inc. (NYSE:BNED)
Nishkama Capital’s Stake Value: $6.3 million
Percentage of Nishkama Capital’s 13F Portfolio: 1.42%
Stock Price as of October 27: $10.30
Number of Hedge Fund Investors: 14
Barnes & Noble Education, Inc. (NYSE:BNED) operates on-campus book stores and online services for educational sectors. The company caters to more than six million students and other stakeholders across 1,400 higher education and K-12 schools in the US through its 800 physical retail locations and a strong e-commerce presence. The New Jersey-based company went public in 2015.
Since the start of 2021, the stock price of Barnes & Noble Education Inc. (NYSE:BNED) has rocketed by nearly 125% on the back of on-campus education returning to normalcy following the rollout of vaccines across the US. This has prompted 14 hedge funds to go long and as a result, they have accumulated a stake worth $34.1 million in the company as of the second quarter of 2021. Meanwhile, on a sequential basis, Nishkama Capital increased its holding in Barnes & Noble Education Inc. (NYSE:BNED) by 32% during the same period showing its confidence in the stock.
Barnes & Noble Education Inc. (NYSE:BNED) was mentioned in the Q1 2021 investor letter of Choice Equities Capital Management. The investment management firm shared its stance on the company:
“BNED – As a case in point, our recent investment in shares of Barnes & Noble Education captures this theme quite well. The cash flows of the campus-based retailer of books and apparel became quite challenged with students no longer on campus. Shares fell meaningfully as a result, suggesting shares were quite attractive on normalized cash flows. Even though their source of revenue had momentarily dissipated, their competitive position remained unchanged. They were still the only store-based retailer of scale with a presence on college campuses and entrenched relationships with universities. Additionally, our view of normalized cash flows contemplated little in the way of upside from early successes in the company’s promising new initiatives like their bartleby digital self-study program or their First Day Complete courseware offerings. Accordingly, late last year with a bit more certainty around the trajectory of campus re-openings, we initiated a position. With shares more than doubling in just a few months and no longer offering the margin of safety and attractive risk / return characteristics we have elsewhere, we exited our position to reinvest the funds in our other holdings.”
In addition to Twitter, Inc. (NYSE:TWTR), Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG), Barnes & Noble Education Inc. (NYSE:BNED) is one of the stocks attracting hedge fund investments.
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Disclosure: None. 10 Best Stocks Under $30 According to Ravee Mehta’s Nishkama Capital is originally published on Insider Monkey.
