When looking for the next 5-10x over a period of ~5 years what's something they've got to have?
Looking at some very good multibagger stocks over the last few years like Plug Power and Enphase Energy, something they usually got in common are:
- Low institutional ownership
- Low market cap
- Low share price
How important are these 3 fundamentals for a stock, in order for it to be a multibagger over the course of the upcoming years? Say stocks that are already valued at around $1bn, with institutional ownership around 70%, and a share price around $20. Meaning these stocks don't hit any of the bullet points (maybe the low market cap). My takeaway are stocks like these will have a very hard time becoming a multibagger for the next years.
Assume you have a solid company, good management, great product. However institutions already own over 70% of the stock, how would such a company be a multibagger candidate? Is it even possible?
Leave a Reply