In this article, we will discuss the 5 cheap stocks to buy according to Louis Navellier’s hedge fund. If you want to read our detailed analysis of Louis Navellier’s history, investment philosophy, and hedge fund performance, go directly to the 10 Cheap Stocks to Buy According to Louis Navellier’s Hedge Fund.
5. SunOpta Inc. (NASDAQ:STKL)
Navellier’s Stake Value: $456,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 26
Price as of October 20: $7.96
SunOpta Inc. (NASDAQ:STKL) is at the fifth position on our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund. Based in Mississauga, Canada, SunOpta Inc. (NASDAQ:STKL) is a leading multinational focused on specialty foods and sourcing organic ingredients.
In Q2 2021, SunOpta Inc. (NASDAQ:STKL) recorded an EPS of $0, which was in line with the analysts’ estimate. Recently, Cowen analyst Brian Holland started coverage of SunOpta Inc. (NASDAQ:STKL) with an Outperform rating and a price target of $15.
4. Sharps Compliance Corp. (NASDAQ:SMED)
Navellier’s Stake Value: $547,000
Percentage of Navellier’s 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 15
Price as of October 20: $8.04
Sharps Compliance Corp. (NASDAQ:SMED) is a hazardous waste treatment and disposal company. The Texas-based company provides full waste management services for medical, pharmaceutical, and hazardous junk of small and medium quantity generators. Sharps Compliance Corp.’s lead products include the Sharps Recovery System and MedSafe Medication Disposal System.
At investment advisory firm Barrington, an Outperform rating was maintained on Sharps Compliance Corp. (NASDAQ:SMED) stock, but the price target was lowered from $18 to $13 by analyst Kevin Steinke, owing to the drop in COVID-19 vaccinations.
3. Tencent Music Entertainment Group (NYSE:TME)
Navellier’s Stake Value: $434,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 35
Price as of October 20: $8.31
Tencent Music Entertainment Group (NYSE:TME) is a music streaming service developer targeting the Chinese market. Founded in July 2016, the China-based company is a leading online music, and audio entertainment platform with 800 million active users and 120 million paid subscribers. Tencent Music’s products include popular apps like QQ Music, Kugou, Kuwo, and WeSing.
Gil Simon’s SoMa Equity Partners was the largest stakeholder in Tencent Music Entertainment Group (NYSE:TME), with 12.5 million shares worth over $193 million as of the second quarter of 2021.
Investment management firm Nordstern Capital mentioned Tencent Music Entertainment Group (NYSE:TME) in its Q2 2021 investor letter. Here’s what the firm said:
“While Alibaba prefers to acquire and centralize, Tencent’s general capital allocation strategy is to invest and decentralize. As with Alibaba, Tencent’s ecosystem is so vast that it deserves several books.
The sell-side consensus projects 20% revenue compound-annual-growth-rate (CAGR) over the next three years for the operating business. Considering today’s share price, Tencent would trade at 21-times earnings three years out. This does not sound demanding for a dominating super-app ecosystem. However, the even greater long-term superpower of Tencent might be found in its investment prowess.
Tencent made thousands of investments in other companies over the last two decades. Just in the first half of 2021, Tencent closed more than 50 deals on gaming investments alone20. While Alibaba occasionally exits holdings, as it did with Meituan or Didi, Tencent hardly ever sells or divests investments and, like Berkshire Hathaway, primarily keeps adding more…and more…and more…
Tencent’s portfolio of public company holdings end of June 2021 swelled to $238bn21, which is about 35% of Tencent’s total market cap. Reviewing Warren Buffett’s investment success over his lifetime and comparing it to Tencent’s growth in shareholdings of public companies gives some idea of where Tencent could go over time…
The investment superpower of Tencent is to make early-stage private investments. However, if one had invested whenever Tencent either IPO-ed a portfolio company or announced an investment into a public company, the compound annual return rate would be around 20%. The results are driven by the 15 best performers, which more than make up for the plenty of declining public companies Tencent also holds.”
2. CEMEX, S.A.B. de C.V. (NYSE:CX)
Navellier’s Stake Value: $429,000
Percentage of Navellier’s 13F Portfolio: 0.06 %
Number of Hedge Fund Holders: 23
Price as of October 20: $7.17
CEMEX, S.A.B. de C.V. (NYSE:CX), a Mexican building materials company, is at the second position in our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund.
CEMEX, S.A.B. de C.V. (NYSE:CX) recorded YoY revenue growth of 13.03% and saw a rise of 59% in its stock price over the last year.
On October 11, CEMEX, S.A.B. de C.V. (NYSE:CX) was upgraded to Buy from Neutral by analyst Andres Cardona at Citi. The price target was lowered from $9.80 to $9.30.
1. iClick Interactive Asia Group Limited (NASDAQ:ICLK)
Navellier’s Stake Value: $670,000
Percentage of Navellier’s 13F Portfolio: 0.1 %
Number of Hedge Fund Holders: 05
Price as of October 20: $7.14
iClick Interactive Asia Group Limited (NASDAQ:ICLK) secured the first position on our list of the 10 cheap stocks to buy according to Louis Navellier’s hedge fund. Founded in 2009, the company functions as a marketing cloud platform with a global customer base. Based in Hong Kong, iClick provides a diverse range of services, including digital marketing, software development, and display solutions.
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