TQI's Asymmetric Stock Idea For February 2024

This AI stock could be a 10-bagger in the next 5 years

Introduction

Welcome to the 11th edition of TQI's Asymmetric Ideas series, an exclusive monthly publication, wherein we strive to highlight investment ideas that can produce 50-100%+ returns in 1-3 years with limited risk. To do so, we utilize TQI's Quantamental Analysis [QA] process, which is a mix of fundamental, quantitative, technical, and valuation analyses.

Since launch in April 2023, TQI's Asymmetric Ideas have generated an average return of 34.4% as of writing on 11th February 2024:

From an ROI perspective, if an investor had allocated $1,000 per month to TQI's Asymmetric Idea for that particular month, he/she would currently be sitting on a profit of $3,442 on their $10,000 investment.

Past performance says nothing about future results; however, these numbers do provide validation for our stock picking process. 

While broad market indices (SPY) (QQQ) have rallied to new all-time highs, the small/mid-cap sector (where we look for our asymmetric stock ideas) hasn't really participated in the run-up. Now, if the economy continues to remain resilient going forward, I think our deeply undervalued small/mid-cap picks could deliver significant outperformance over frothy large/mega-cap stocks in the next 12-24 months.  

As of today, the macroeconomic environment remains highly uncertain; however, with the Fed all but done with its rate hiking cycle [multiple rate cuts expected this year], a somewhat depressed financial sector presents lucrative investment opportunities. For our 11th asymmetric stock pick, I have chosen a grossly mispriced AI-lending infrastructure platform.