Undervalued Recovery Stock (Heavy Insider Buying)
Added 2021-03-06 13:24:24 +0000 UTCHey Patreons, we are now at the point were adding some recovery stocks to our portfolio is starting to make sense, but I am not going to buy hotels and airlines, that is pure FOMO and very speculative and I may even say premature.
I am looking for recovery style stocks which are not yet hyped and are still undervalued while making sense in the post pandemic world.
On Monday I will be buying DHIL stock to add to my portfolio. Currently the price of the share as of March 6, 2021 is $156.70 and I have a price target of $180 for this stock.
DHIL is a good rotation play that makes sense, its up during the sell-off of the past couple of weeks, and it completely focuses on classic high-quality value stocks for the long term, such as Abbott, Disney and even Berkshire believe it or not. The numbers are really good as well, with a 7x P/E ratio and a 41% net margin, which is very nice. Another key factor was the fact the during 2020 we had 5% of all shares outstanding repurchased, which is a very strong indicator.
My plan is to move about 10% of my portfolio to rotation/recovery stocks during the next quarter, and this will be my first purchase as part of this strategy.
Please note that as with ANY post or video I make this is NOT financial advice and strictly my opinion and may be totally wrong. Do your own research please. Note that past performance is not a guarantee of future results. Don't assume an investment will continue to do well in the future simply because it's done well in the past.
I currently do not hold a position in this company. I will open a long position on Monday.
Comments
Just wondering. If you hit your price target do you sell? For example I'm a long term investor like most of us. I am 22 and looking for 10+ years. So do I sell on my target price or just hold the stocks I truly believe in like Tesla, Palantir, Disney, Shift technologies.
Siem te Hennepe
2021-03-10 21:16:31 +0000 UTCGotta love this recommendation! Price target of $180 and itโs a $175 in 2 days up 12%. You are the man Tom
Shane
2021-03-09 03:32:58 +0000 UTCThat said, I can see a couple of points where it has underperformed over the past year and may be due to seeing better returns. Also a looks like it may be a cup and Handle pattern on the chart. I hope we can discuss more on Monday.
Tom Deschenes
2021-03-07 04:04:01 +0000 UTCHi Tom, To be clear, DHIL (Diamond Hill Investment group)? I need to call out some points\questions on this. With ~15% return, which is nice, why this over $IWM (Russell 2000) or $DEEP who has 1% of DHIL? This advice would have been more attractive in Mid February (Though I know that no one can time the market).
Tom Deschenes
2021-03-07 04:01:05 +0000 UTCHow is this a recovery play? It's an investment in their asset management business, not in the actual assets they invest in. Lots of fund management companies dirt cheap now.
Kas
2021-03-07 03:56:29 +0000 UTCDHIL, not DHL
A box
2021-03-06 20:51:18 +0000 UTCHow about CUK the sister of CCL but with a dividend.
Chate Mineer
2021-03-06 19:51:25 +0000 UTCInteresting, will read up a bit more on this
Brett
2021-03-06 19:48:26 +0000 UTCprobably just adding cash, not selling
Generico Fakero
2021-03-06 17:47:32 +0000 UTCWhen you say โmoveโ what current stocks are you selling to buy DHL?
Brandon Huang
2021-03-06 15:54:02 +0000 UTCDIS is very good for that purpose and I think the dip isnโt over yet
Generico Fakero
2021-03-06 13:44:11 +0000 UTCInteresting pick and thanks! Doing a bit of research ๐๐ฝ
David Oliver
2021-03-06 13:39:39 +0000 UTCGood stock but personally I prefer Disney. Qq: Do you think the dip is over, and we are going to recover from now on ?
Amine REZKI
2021-03-06 13:27:09 +0000 UTC
