In the middle of the earnings releases, you may as well be looking for a little break of information around tech giants? Great, then this week’s community picks should be of your liking. Gone are Apple or Tesla and welcome or old dogs such as T-Mobile and Hilton Hotel Group.
P.S. We are in a new month, but investing is still as risky and markets as volatile as they have been the previous months. So remember to stick to your own investing rules.
Community Picks Portfolio!
No tech giant for this week but still some tech companies from the US. The American marketing and sales automation platform had a strong 2020 with its share price up over 130%, with their FY20 earnings largely above expectations.
With Hubspot having recently surpassed the 100,000 customers and the $1bn annual revenues, investors might have reasons to be potentially enthusiastic again ahead of its Q1 earnings. The company’s development beyond a pure CRM platform towards customer experience has been a success so far. 💌
This may come as a surprise, given we hear so little nowadays about hotels. Hence a good reminder of what we can do in (hopefully) a few months again and potentially a good time to enter an under-valued segment. With hotel sales in the US alone 50% lower prior to the pandemic, one can expect room revenues to pick up again late 2021 starting 2022.
Despite the strong headwinds in the industry, Hilton continued to execute its long-term strategy plan and opened over 45,000 net new rooms and may be well positioned to benefit from the recovery. But the question remains: budget hotels vs. luxury hotels? 🏰
3. Deutsche Telekom
No we don’t try to make you change your opinion about what happened to the stock during the Dot-Com bubble, but fact is that the German telecommunications company has evolved into a dividend stock, with a dividend yield on average around 3-4%.
While telecommunication stocks are known for strong dividends, they offer as well some anti-cyclical protection to your portfolio. ☔️
While its operations go back more than 40 years, Ballard Power Systems surged over 225% in 2020, driven by strong optimism around driving fuel cell stocks.
The company has built a solid market positioning over those years, with 45% share in China’s FCEV market and 80% in Europe and 95% in sunny California. While this sounds all good, the company has not been able to translate its strong revenues in bottom-line profitability, and is still incurring losses.
So this one looks more like a bet in a sector where strong competition, from Plug Power and Bloom Energy, and the potential widespread adoption of hydrogen fuel someday, may result in pressured margins. ⛅️
Sonim Technologies is a US company providing ultra-rugged mobile phones, a suite of industrial-grade accessories, and data and workflow applications which are collectively designed to increase worker productivity, communication and safety on the job site.
The stock suffered considerably from the pandemic and has since then been subject to quite a lot of talks in penny stocks forums. But even before that, the company had seen the value of its stock slashed by over 8x in not even 2 years, on the back of weak earnings. Are we seeing another GameStop in the making? 📉