Hunting For Alpha: Stocks that continue to offer significant downside
MYST hosted 25 formal events in 2023 generating 333 ideas (223 longs and 110 shorts). It was another impressive year with nearly 70% of their highlighted shorts producing positive alpha. Names that remain compelling include:
Aurora Innovation (AUR) - Entering a highly competitive market with an unproven product. TP $0 (100% downside).
Infosys (INFY) - Financials deteriorating amid structural growth slowdown. TP $12.50 (30% downside).
MP Materials (MP) - EV industry pivot away from rare earth materials to cause massive oversupply / pricing collapse. TP $10 (40% downside).
Veeva Systems (VEEV) - Back-end transition could be “worst tech decision since Osborne Computer Corp”. TP $115 (40% downside).
Edition: 177
- 12 January, 2024