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🗞 7 Hidden 100-Baggers

🗞 7 Hidden 100-Baggers

These 7 under-followed stocks have delivered 100X returns in 20 years.

Braden Dennis
October 06, 2024

Written by: Ryan Henderson & Braden Dennis

Happy Sunday!

Here’s what’s on the docket for this week’s newsletter:

🪧 Dockworkers Union Strike
🛫 Spirit Airlines Bankruptcy?
💎 7 Hidden 100-Baggers

And much more, let’s dive in!

News of the week

🪧 Dockworkers Union Strike: The US supply chain is in disarray this week after members of International Longshoremen’s Association (ILA) began a strike on Tuesday halting the importation of goods to many ports across the East Coast.
Shipping companies have began diverting their routes to other ports resulting in thousands of containers being dumped wherever possible. This has led to a rise of inland transportation costs as trucking companies struggle to deal with the demand in certain cities.
While it’s uncertain when this strike might meet a conclusion, it’s likely that US consumers will see the prices of imported goods rise in the meantime. On the bright side, as of Thursday the ILA had officially began negotiating again with the US Maritime Alliance in hopes of coming to a quick compromise.
SonicShares’ Global Shipping ETF was down ~4% this week.
🛫 Spirit Airlines Bankruptcy? Spirit Airlines’ stock dropped more than 25% on Friday after news leaked that the low-cost carrier is in discussions with its bondholders over the details of a potential bankruptcy filing.
The interesting paradox here is that despite Spirit being unable to succeed on its own, 10 months ago a federal judge blocked the company from being acquired by JetBlue. The ruling came down to concerns that the combined company would have a monopoly in certain markets.
Spirit, who has just over $1 billion in debt due next September, has struggled to maintain profitability despite cost-cutting efforts. With each passing quarter of losses, the risk of Spirit’s shares going to zero becomes likelier and likelier as they attempt to repay debt holders.
Spirit’s stock is now down 90% year-to-date.

Source: SAVE on FinChat.io

👟 Nike Earnings: On Tuesday, footwear and apparel giant Nike delivered another difficult blow to shareholders. Despite surpassing analysts’ 1st quarter profit estimates, Nike underperformed sales expectations for the quarter and even withdrew their full-year financial guidance.
Nike’s CFO Matthew Friend stated “revenue expectations have moderated since the start of the year, given traffic trends on NIKE Digital, retail sales trends across the marketplace, and final order books for spring.”
For investors hoping to get some clarity on the current situation, it looks like they’ll have to wait. This week Nike also announced that the company is postponing its Investor Day as it deals with the CEO transition announced last month.
Nike’s stock dropped 8% this week taking its year-to-date returns to -23%