My Favorite Under-the-Radar Stocks, Part I

When you do what I do for a living (writing about and recommending the best stocks to own), few days pass without one or more people asking me what my favorite stocks are. Hey, this is the life I chose, and for that reason, answering this common question never gets old. The reason why is because the market is always offering dynamic opportunities to profit from, and that’s largely courtesy of the brilliance and tenacity of the people at the helm of great companies.

Today, I am going to answer the frequently asked question: “Jim, what are your favorite stocks right now?” But today, I am not going to tell you about my favorite stocks that you likely already know about (Palantir Technologies (NASDAQ: PLTR), CrowdStrike Holdings (NASDAQ: CRWD), Edwards Lifesciences Corporation (NYSE: EW), etc.). Today, I am going to tell you about one of my “favorite under-the-radar” stock plays that you may not have heard about.

Now, by “under-the-radar,” I mean stocks that aren’t household names, and that don’t have gigantic market capitalization. And by “favorite,” I mean stocks with one or more of the following characteristics:

1. A CEO/management team that I know personally (i.e., I’ve met them, had dinner with them, can call them on the phone right now).
2. A business model and/or position in the marketplace I think offers a unique opportunity for investors to make big returns over time.
3. The company/stock meets many of my fundamental and technical buying criteria.

This week, I am going to tell you about one of my favorite under-the-radar plays. Next week, I will tell you about more favorites, so get your watch list out and take notes. Better yet, log on to your brokerage account and get ready to place your orders.

The first favorite under-the-radar stock I want you to know about is DeFi Technologies Inc. (OTC: DEFTF). This company is doing something very unique in the cryptocurrency space. It has essentially created a way for investors to participate in the upside of cryptocurrencies and blockchain technology with an array of products that merge traditional capital markets with decentralized finance.

DeFi Technologies business lines include its wholly owned subsidiary, Valour Inc., which issues exchange-traded products that enable retail and institutional investors to access digital assets such as Bitcoin and others in a simple and secure way via their traditional bank account. Think of the Valour side of the business like a smaller, more mobile and much more international version of BlackRock or other exchange-traded fund issuers.

The company also has a subsidiary firm called Reflexivity Research, which specializes in high-quality, in-depth research reports for the crypto industry, reports that I’ve found to be fantastic founts of information. DeFi also owns Stillman Digital, which is a crypto financial services firm specializing in trading, market making, custody and liquidity services for the crypto segment.

One interesting aspect of this business is its focus on international markets. The company is based in Canada, but its products are targeted to markets in the United Kingdom, Europe, Africa, UAE, Singapore and the United States. Meanwhile, DeFi’s CEO Olivier Newton is located in Switzerland. In fact, this morning, Olivier called me to update me on the latest happenings with the company — while he was on a hike in the Swiss Alps! Hey, he knows how to make a man jealous!

More importantly, Olivier knows how to make money for shareholders, as he is a veteran in the industry, having started the Bitcoin mining firm HIVE Digital Technologies (HIVE), a stock I’ve recommended with great success in the past to subscribers of my Crypto & Commodities Trader service.

That money-making touch has extended to DEFTF shares as well, as the stock is up a remarkable 475% over the past 12 months. And in just the past week, shares are up some 23%!

So, why the big move higher of late?

While Olivier didn’t (and would not) disclose any confidential information to me on our call this morning, he did mention the very likely possibility of a NASDAQ uplisting in the near future. It’s more a matter or when, not if, as he and his team told me. DeFi recently filed an amended 40-F Registration Statement to the SEC as they await the NASDAQ uplist approval.

One other reason for the optimism here for DEFTF is the change of political power in Washington. According to Olivier, the Biden administration was very dismissive of any efforts to open pathways and dialogue for the crypto industry. By contrast, the Trump administration has been very open to dialogue about how to promote the industry and how to make a regulatory framework more permissive to the players.

The appointment of Paul Atkins as Chairman of the Securities and Exchange Commission, and David Sacks as White House AI and Crypto Czar, both cryptocurrency proponents, bode well for the future of crypto, and especially for companies such as DeFi Technologies.

For the reasons mentioned here, and for many more, I think this stock could be one to watch, and one to own, particularly if you are bullish toward the digital currencies and the adoption of blockchain and decentralized finance technologies around the world.

So, put DeFi Technologies Inc. (OTC: DEFTF) first on the list of “favorite under-the-radar” stocks, right now.

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Let Anger Go

“Holding on to anger is like grasping a hot coal with the intent of throwing it at someone else; you are the one who gets burned.”

–Buddha

Are you angry at the world for all of its perceived stupidity? I know I can get very riled up when I see injustice, blind obedience, groupthink and other forms of irrationality wafting over the cultural zeitgeist. But when I feel this way, I am usually quick to remind myself that holding on to anger too long is self-destructive. And though one must act in response to enemies, one also must preserve one’s own inner peace. It’s a delicate balance and difficult to achieve, but I’m working on it.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods