Best Idea(s) for 2025

[Blake Hampton]

5 minutes ago, oscarazocar said:

 

Which service do you subscribe to?

 

https://investors.valueline.com/equities/digital-equities-services

Small Cap

[ValueMaven]

TPL at $1200

[yesman182]

5 hours ago, Blake Hampton said:

My best idea for 2025 was giving Value Line another shot, their new digital booklets are incredible.

How much does it cost? Have you checked what you can get from the library for free? My library has some new online booklets that I can view from home. I can’t print them, however. 

[SafetyinNumbers]

On 12/16/2024 at 11:32 PM, SafetyinNumbers said:

I think FFH was mentioned in passing so I will go with my second biggest position Mako Mining MKO.V MAKOF.

 

Mako is a gold producer trading < 3x OpCF and <1x 2028 OpCF. They are taking the FCF and investing it in exploration and building a new mine in Guyana. Gold companies are the furthest thing from quality but they enjoy enormous right tails given that the gold price also enjoys enormous right tail potential. I oversized Mako because I’m a big fan of the management team and the controlling shareholder Wexford Capital. Wexford also created Diamondback Energy (they like animal names) in 2007 and took it public in 2012 as their oil play. Since then it’s compounded at ~24%. Mako is their gold play and the cycle is just beginning. 

 

In full disclosure, I’m on the board of Sailfish Royalty FISH.V which spun out of Mako a few years ago and has a royalty/stream on Mako’s project in Nicaragua. FISH is also controlled by Wexford. I’m excited to see how Mako can compound over the next 5-10 years as every time the deal it will be accretive. The risk of course is on execution and geopolitical which is true for any gold stock.

I’m sure most people passed on the gold stock idea (most people invest only in quality and junior gold stocks are the furthest thing from quality) but MKO just announced a deal in Arizona risking only $5-10m to buy an operating gold mine out of bankruptcy. If they are able to optimize the mine it could double the existing corporate production run rate within 6-12 months. Given it’s less than <3x OpCF without it that’s a big improvement.
 

The stock is up a bit since the announcement but this is a play for the cycle with a small amount of capital as gold mining has plenty of execution and geopolitical risk but the upside is multiples of capital given the right tails on production, resource size and the gold price.