The One Small Cap Stock I'm Buying for the Long Run

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DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.

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[madlaw]

Staying abreast of the latest trends and strategies is crucial for traders to stay ahead and make well-informed decisions. Beginners in trading and investing must recognize that success in these fields demands technical analysis, emotional maturity, and self-discipline. Thanks to Loraine Souvenir’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead!

[moannavictoria]

Thanks for the insights! Bought NVDA45T, predicting big returns! 📈

[mikepasley]

You should do a whole series on small caps

[alulaqt]

Your advice led me to NVDA45T, holding for 5x gains. Exciting listings ahead!

[EastofVictoriaPark]

Intel trying its best to become a small-cap.

[Lindacrumrine]

Hit 100k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month this 2024 investing with a professional broker Belinda Owens.

[Zynnovation]

The problem is, there's no moat on the business or the industry it operates in. Atkore sells commoditized products that are sensitive to input costs and reliant on new construction. Foreign imports are a potential problem. So is domestic competition. It's just conduit, there is nothing special about Atkore's product vs competitors. In recent years they've worked on expanding their distribution network to reduce operating costs but there's only so much you can do to offset the type of product you sell.

That said, it could still be a very good short/medium term investment if you buy near the bottom of the cycle. But personally, it's not something I'd want to hold long-term when competition is high and any economic slowdown will hammer them. Management is solid but recent quarters show that the industry is so volatile they can't even forecast guidance out 2-4 quarters accurately.

[simrug]

Thank you Jimmy, I bought ATKR last week and your analysis just confirmed my assumptions. Thanks

[Viewer]

My question is why does everything look good but insiders are selling at low prices and hold a low % of the stock.

[fluffhead]

You never even mentioned the SHARE BUYBACKS! Buying their own shares under $100.. 💥🍺💥🍺

[akshaykumar-ykri]

Hi jimmy, What about the competition from mexican imports ?
They are cheaper, and pose the same risk what buffet faced with dexter shoes.

[geraldmatthews]

As of July 31, 2024, Atkore Inc. (ATKR) stock had a short interest of 6.21 million shares, with a change of 8.13% and a percentage of float of 17.56%. Short interest is typically expressed as a percentage of the total number of outstanding shares divided by the number of shorted shares. For example, a company with a 10% short interest may have 10 million short shares out of 100 million shares outstanding... What do you think about that?

[thrashed]

the thing with cyclical stocks is that the best prices to jump in are when their fundamentals looks horrible

[bonanzatime]

One concern that jumps out at me is that the demand for commercial and office space is dropping rapidly since the pandemic and advanced technology has demonstrated to businesses that more people can work from home to cut costs. So there are too many commercial and office buildings already built which will depress the non-residential construction for many years, maybe even permanently.🤔

[grizzly]

Actually pitched this stock in a competition a while ago, great to see you’re looking at it too Jimmy!

[josephlombardo]

Great analysis! So 2 headwinds the company will have to face are commercial real estate and crucial commodity prices. How long will the down cycle in those will last? Haven't checked structure of future debt payments but if they're spread evenly over time at the same level they've been over the last 4 years or so at about $34M a year with an expected unlevered free cash flow of about $300M they should be good for almost a decade. Not bad!

[TheGreatOne]

It’s better to buy a commodity itself than buying a company that relies so much on commodity prices

[yahmoht]

Hi Jimmy,
Fantastic video. This is the one company I bought without much research. I just liked the business and bought it at 140 and 120. Was shocked that it dropped to 90+ because it was 200- at some point. Glad you made this in-depth video. Makes me feel that I'm gonna buy at these levels though I'm down about 30+% on this!! Cheers!

[leswhynin]

Great video. According to Morningstar, ATKR has a narrow moat as a specialized electrical component supplier. I think their buyback history indicates good capital allocation. But why is the short interest so high? What is the short thesis?

[Hazel]

ATKR stock is about to trade ex-dividend in two days. Atkore investors who purchase the stock on or after the 20th of August will not receive the dividend, which will be paid on the 30th of August.