Stocks I'm Buying November 2024

Summary

In this November 2024 stock update, the speaker discusses a cautious approach to investing, revealing a single stock purchase—Evolution, a gaming company with strong growth potential in the iGaming market, despite its current low stock price. They also discuss trimming positions in Hims and Hers and Sofi due to market volatility and recent stock surges. The speaker highlights their focus on long-term opportunities while acknowledging broader market risks. Additionally, a limited-time promotion with the trading platform Weeble is mentioned, offering free shares for new sign-ups. The video emphasizes strategic decision-making in a fluctuating market.

Takeaways

• 😀 Only one stock was bought in November 2024, which is Evolution Gaming (EVGGF).
• 😀 Evolution Gaming is currently undervalued, trading at 12 times forward earnings, compared to its historical range of 20-30 times.
• 😀 The stock is down 17% year-to-date despite strong financial growth, presenting an opportunity for long-term investment.
• 😀 Evolution Gaming is a leading provider of live casino games and online gambling content, with exposure to high-growth markets like the U.S., Asia, and Brazil.
• 😀 The company has a solid balance sheet, strong profit margins (55%), and pays a 3% dividend yield, further enhancing its investment appeal.
• 😀 Stock buybacks by Evolution Gaming, along with the company's growing presence in the U.S. iGaming market, provide additional growth potential.
• 😀 Two stocks were sold or trimmed in November 2024: Hims & Hers and SoFi, both due to volatility and profit-taking considerations.
• 😀 Hims & Hers saw a 40% price increase in 20 days, and the investor chose to lock in profits ahead of anticipated volatility caused by changes in the GLP-1 drug market.
• 😀 SoFi stock rose 47% in the past year, but due to its volatility, the investor trimmed their position by 5%, while still holding the majority of their shares.
• 😀 The overall strategy is to remain cautious in a high-valuation market and protect profits, while looking for opportunities to reinvest if stocks retrace.

Q & A

Why is there only one stock bought in November 2024?

The creator mentions that there are limited opportunities in both the US and UK markets, especially with the S&P 500 at historically high price-to-earnings ratios. As a result, they only bought one stock in November 2024—Evolution, a gaming provider.

What is the key reason for the creator being cautious in the stock market?

The creator is cautious due to the current economic situation, including weaker-than-expected payroll numbers and concerns over high interest rates in the US, leading to a lack of attractive stock opportunities.

What stock did the creator buy in November 2024, and why?

The creator bought shares of Evolution, a Swedish gaming company, because it is trading at a historically low valuation (12 times forward earnings) despite strong growth prospects, including exposure to the growing US iGaming market.

What is Evolution's business model?

Evolution provides live gaming content and technology to online gaming companies. They supply games for casinos and sports betting platforms without managing the actual casinos themselves, allowing them to take a cut from the games offered.

How is Evolution positioned in the growing iGaming market in the US?

Evolution is well-positioned as the US iGaming market is expected to become the world's largest. The company benefits from this growth, as it supplies games to major platforms like DraftKings and BetMGM, and is involved in the industry's expansion in states legalizing iGaming.

Why is Evolution's stock price down despite strong growth?

Despite Evolution's strong fundamentals, the stock is down 17% year-to-date. This may be due to market conditions not reflecting the company's performance, as the stock is trading at a significant discount to its historical price-to-earnings ratios.

What recent financial performance did Evolution report?

Evolution's Q3 operating revenue increased by 27%, and earnings grew by 30%. These results reflect the company's strong profitability, with a 55% profit margin and a solid balance sheet.

What was the creator’s reasoning for trimming positions in Hims & Hers and SoFi?

The creator trimmed their positions in Hims & Hers and SoFi due to recent stock price volatility. For Hims & Hers, the creator was concerned about short-term speculative price movements related to GLP-1 news. For SoFi, they took profits after a significant price increase, anticipating potential pullbacks.

What happened to Hims & Hers stock after the creator trimmed their position?

After the creator trimmed their position in Hims & Hers, the stock dropped, which was expected due to the volatility surrounding the GLP-1 drug news and the eventual removal of the drug from the shortage list.

What is the creator’s strategy when trimming positions in stocks?

The creator's strategy when trimming positions is to lock in profits during periods of high volatility, ensuring they can capitalize on future opportunities. This approach helps manage risk and allows them to potentially buy back into positions at lower prices if the stock drops.