If investing is the best way to make money or generate wealth—It makes perfect sense that we all want to find investment opportunities. Finding these investment opportunities is the tricky part though, generally a service reserved for a wealthy niche. When looking to invest in the stock market, many investors can’t identify opportunities for themselves.
That’s why we introduced Themes on Thndr, These themes are lists of investment opportunities. These opportunities are usually grouped together by a common criteria. For example: Investment opportunities to protect your money in times of inflation or even a devaluation. Another list of undervalued companies (basically stocks on sale) We also have themes that group together companies based on their fundamentals i.e. things like profitability, revenue, assets, liabilities, and growth potential.
Here are some Thndr themes you’ll probably find useful.
Electric Stocks
The Electric Stocks theme is a monthly top 10 stocks list. These stocks are selected based on our factor investing methodology. This methodology identifies companies with solid fundamentals and gives each stock a score out of 5, something known as our Thndr score, which essentially ranks the stocks for our investors based on profitability, revenues, assets, liabilities, and growth potential.
It is important to note that fundamental factors explain returns over a long investment horizon.
Theme criteria:
- Top 10 highest Thndr scores
- An average traded value greater than 1 million
Undervalued Hot Stocks
The undervalued hot stocks theme looks to identify profitable companies that are trading at a discount (aka the current price of their shares is lower than their book value). Profitability is measured by looking at Return on Equity, while a low price-to-book ratio can signal that a company is undervalued.
Companies generating healthy profits yet trading at a discount to the book value of their shareholder’s equity might represent good investment opportunities.
Theme criteria:
- Price to book value is less than 1
- Return on Equity is greater than 20%
- Net debt to Equity ratio is less than 2
- 3 years average Return on Equity is greater than 10%
- Net Income growth is positive
- An average traded value greater than 1 million
EGP Devaluation Hedge
The EGP devaluation hedge theme groups companies that have a significant portion of their total revenues in foreign currency.
If another devaluation were to take place, these companies are expected to better withstand the impact of a devaluation, since the foreign currency they hold will hold its value against the EGP.
Theme criteria:
- At least 30% portion of total revenues in USD
- An average traded value greater than EGP 1 million
Interest Rate Players
The interest rate players theme looks at companies that stand to benefit from higher interest rates. The banking sector stands to benefit from the difference between interest received on lending and interest paid on customers’ deposits. Another sector that potentially stands to benefit is the non-banking financial services sector, as business tends to increase during times of rising interest rates as companies race to restructure their financing.
Theme criteria:
- Banks
- Non-banking financial services
- An average traded value greater than 1 million
Steady Stocks
The steady stocks theme groups together companies that have relatively steady historical earnings before income, taxes, depreciation, & amortization (EBITDA). EBITDA shows how much operating expenses (salaries, marketing, office expenses, etc.) are eating into a company’s gross profit.
Theme criteria:
- An average traded value greater than 1 million
- Companies with stable EBITDA margins
- EBITDA margin’s level of dispersion around the average is between 0x and 0.35x
Inflation Resistant
The inflation resistant theme identifies companies that are better able to withstand periods of high inflation than others. When prices soar, like they are now, companies with stronger pricing power are usually in a better position than those with weaker pricing power. Strong pricing power means they’re able to pass on the rising costs to the end consumer, given that the products they sell are necessities rather than luxuries.
Stable gross profits are a strong quantitative measure of strong pricing power, & that’s what we looked at when constructing this theme.
Theme criteria:
- An average traded value greater than 1 million
- Companies with stable gross margins
- Gross margin’s level of dispersion around the average is between 0x and 0.35x
Where can we find Themes on Thndr?
Themes can be found on our app under the explore tab.
If you have any suggestions on how we can make Thndr themes better, please drop us an email at thndrclaps@thndr.app!
