May 28, 2024
On this week's
Stansberry Investor
Hour, Dan and Corey are
joined by Chris DeMuth Jr. Chris is a co-founder and managing partner of hedge fund
Rangeley Capital. He invests in
mispriced securities with
limited downside and corporate events that unlock value for
shareholders. Chris kicks things off by explaining what
event-driven investing is, how he uses it, and how
the concept of "counterparty
selection" is involved. He also breaks down what demutualization and remutualization are
and how there are numerous opportunities in the banking sector today to deploy these
strategies. According to Chris, many small-cap
community banks out there are
attractive in terms of valuation versus large caps.
(3:11)
Next, Chris describes the U.S.
Treasury Department's "inept, corrupt, and profligate"
Emergency Capital Investment
Program ("ECIP"). He gives two in-depth examples of ECIP
bank stocks that were trading
for far less than they were worth – Bay Community Bancorp
and Ponce Financial. And he
discusses why investors who got in early enough will profit
from them greatly.
(16:03)
Lastly, Chris names three
stocks that he's excited about right now and details the
specifics of each one.
The first is a tax-efficient real estate and financial-services
conglomerate trading at
a discount to its asset value. The second is a Russian-owned mining
company operating in
Venezuela that should soon benefit from litigation against the
Venezuelan government.
And the final one is a hospice provider with a lot of potential for
a private-equity
shake-up and then subsequent acquisition by a larger health care
company. Plus, you won't
want to miss Chris' answer to the final question, where he explains
how you can gain an edge
as an investor simply by researching topics you're genuinely
interested in. (29:44)
Dan and Corey close the show by
discussing Nvidia's recent blowout earnings, including its
262% revenue gain. Since the
company provides the "picks and shovels" of AI, it's
benefiting
massively from the boom in this
space. This leads Dan and Corey to compare AI stocks with
Internet stocks during the
dot-com bubble, speculate on what could happen next,
and
explore the disconnect between
the markets and the economy. (57:56)