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Speculative Multibagger Opportunities


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41 minutes ago, no_free_lunch said:

Try wall street bets, lol. 

 

That said if you want to gamble look at calls on the 2 prison companies in the US.  Can't remember the tickers.  Michael Burry is in big on them and it's an interesting setup.  

 

Prison Companies = GEO and CXW

 

I looked at them when Burry posted his 13F. Ultimately decided to pass. 

 

"Try Wallstreet Bets, lol" - Agree with this. This is not the forum for you if you're looking for quick multibaggers. But you will come across some smart people and some really good ideas if you can do your own due diligence.  When people talk about getting rich quick I think of a thread I saw on WSB (I like to lurk there for entertainment) Where the guy said your only 5 good trades away from being a millionaire. One of the top comments back was "Yea, and your only 1 bad trade away from workin behind Wendy's."

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Permian Basin Royalty Trust.  See @broncho24 for thesis.  Not getting cash flow from biggest asset due to big (and apparently successful) 2021 drilling program that must be paid off first.  Assuming oil prices stay roughly the same, payoff of drilling CapEx should happen in Q1 and then monthly distribution may 10x.

 

I have checked his math and it looks right as far as it goes.  But there appears a greater fool theory underlying at least part of the thesis -- wells decline so should be DCF'd, not valued on current production/cash flow/distributions alone. 

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