The High Risk, High Reward Bets in the Market I See Right Now Are
The high risk, high reward bets in the market I see right now are:
- $USA Rare Earth Inc.(USAR)$: A higher risk play on mineral security being a form of national security.
- $Aeva Technologies Inc.(AEVA)$: A bet on whether it can become a material CPO/NPO optical source player as well as a bet on 4D LiDAR.
- $Snap Inc(SNAP)$: My bull case model gives us a $40 stock (6.8x from here). A lot needs to go right to get there.
- $Aurora Innovation(AUR)$: Pure execution bet on the industrialization of Volvo, AUMOVIO, and PACCAR.
- $Redwire Corp.(RDW)$: High risk bet on the space thematic with a 1.52x book-to-bill.
- $Amprius Technologies Operating Inc(AMPX)$: Looking to grow revenue by 4x through to 2030 whilst trading at it's lowest sales multiple in 18 months.
Notes:
- I have positions in some of these.
- I'd never allocate a large portion of my portfolio to these kind of plays.
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