A Hidden gem - Turning market fear into opportunity
A study in sentiment-driven mispricing
Dear readers, every once in awhile, my research will dig up some very compelling opportunities that are not yet in my Swan Select Portfolio. These investment thesis will be provided exclusively for paid subscribers as a thank you for supporting this newsletter. To those who are considering joining our community and becoming a paid subscriber, now would be the time.
For those who choose to remain as free subscribers, don’t worry! I very much appreciate your support and we will continue to have lots of free content! Alright, onto the post…
The stock market is forward looking. Stock prices generally price in events that are expected to happen even before they occur.
However…
Every once in awhile, the market sentiment gets so far ahead of itself that it begins to price in events that runs completely counterintuitive to what the existing data and fundamentals tells us.
These are often the greatest opportunities for returns, especially if the market cap itself is not large. In this post, I highlight one such potential opportunity.