3 SUPER STOCKS THAT COULD MAKE YOU FILTHY RICH
Updated: Nov 10, 2022
Depending on how you do your research and invest in stocks, you could become the next Warren Buffet. Investing in the right stocks can make life a little easier and provide for most of your future financial needs.
To get started, you need to know which stocks to keep your eyes peeled for. This article aims to inform you about three stocks that have the potential to make you wealthy if the business executes well.
These 3 stocks include:
Ginkgo Bioworks (DNA)
Opendoor Technologies (OPEN)
With an ever-growing global population, food sustainability seems to be a prevailing trend, and there’s no doubt that artificial intelligence will play an integral role in an emerging agricultural technology industry.
Appharvest (APPH), recently went public in the stock market, and is using artificial intelligence and robotics to achieve a goal of producing 30 times more crops than traditional open field farming.
All of APPH’s farming happens in indoor facilities that allow the company to control all variables of farming such as light optimization using solar LED lighting, pests or pesticides, and fertilization among other factors. According to the company, this is more sustainable and efficient than the traditional farming industry as wildfires, droughts, extreme weather, and animal contamination make traditional food production unreliable.
The company uses recycled rainwater to produce their 30 times normal crop yields with 90% less water than standard farming.
The robots in the facilities use infrared lasers to make quality assessments of the crops using collected data. The robots can determine if the crops are ripe to pick and the most efficient way to pick them using robotic arms and grippers. There is a built-in feedback system that allows APPH and the robotic artificial intelligence to continuously improve the efficiency and sustainability of the process.
The company has a goal of developing 12 of these large indoor facilities by 2025 throughout the Appalachian region of the United States. This should allow APPH to achieve large-scale efficiencies as it streamlines its processes. If successful, the company’s scalability could lead to massive cost savings and extremely high margins.
At the moment APPH has a very compelling story, but it is too soon to know for certain if it will be the first successful US company in this emerging “Agtech” industry, or if this is the agricultural version of the dot.com bubble.
It will not be easy for APPH to deliver on its grandiose promises. It will certainly need to spend a lot of capital, or incur significant debt and dilute shareholders to build many of these AI farming facilities. This will prove difficult as the current recession deepens
However, due to the stock market downturn, APPH is currently $1.55 per share and down over 90% from its 2021 all time high of nearly $36 per share (November 2022). If the company can be successful in capturing even a fraction of the market share in the United States agricultural industry, then this stock could provide life changing returns for patient, risk-tolerant investors over the long-term.
Ginkgo Bioworks (DNA)
Ginkgo Bioworks (DNA) is a modern-day synthetic biology company that uses the most advanced technology to program cells in order to develop new products or improve existing products.
While the intricacies and complexities of bioengineering may foreign to you, let me explain the basics. Ginkgo uses its vast database of genetic codes and organic cells to program the three-letter combinations of nucleotides in DNA similar to how computer programmers create software using programming languages and binary code.
Ginkgo Bioworks utilizes this DNA sequencing with artificial intelligence to change how cells function and offers these specialty cells to clients per their specifications.
The applications of this technology are limitless as these made-to-order microbes can impact endless products in many industries.
For example, Ginkgo could take genetic code from a cannabis plant and insert it into yeast for new marijuana products. The company could use the code from its genetic library to bring back the perfume of an extinct flower. The programmed cells could be used to increase the efficacy of pharmaceutical drugs, or alter the sustainability of food agriculture. The same proteins found in some foods can be used for personal care products.
The best part is that once Ginkgo is growing a massive database of sequenced DNA, it grows with each new customer. The more clients they acquire, the more value they can provide to other customers, which then allows the company to get more clients in a virtuous cycle.
With each sequenced DNA, the company’s manufacturing processes become cheaper. In fact, Ginkgo reduces the cost to program a cell by 50% each year.
Ginkgo is attempting to organize the world’s biogenetic code and utilize its database to become the Amazon Web Services of programmed cells, or the Amazon of biotech.
As Ginkgo focuses on scaling its library of genetic codes, the size of the code base should give it a competitive advantage that cannot be easily replicated by competitors.
With their headquarters located in Boston, they have made some great strides under the leadership of CEO, Dr. Jason Kelly.
As of November 2022, the Companies Market Cap revealed that Ginkgo Bioworks (DNA) has a market cap of $4.31 Billion.
With the share price at $2.3, CNN business analysts suggest that in the next 12 months the share could be worth between $5.50 and $14.50.
With such a promising outlook, this stock may be a hidden gem with a great risk-reward ratio.
Opendoor Technologies Inc. (OPEN) is an online company that buys and sells residential real estate. Its headquarters is located in San Francisco under the leadership of CEO, Eric Wu.
What differentiates this company from the rest of the real estate industry is its focus on iBuying, where OPEN purchases homes directly from sellers, renovates them, and tries to flip the properties for profit.
If you've ever tried to sell a home, then you know that the process of putting the home on the market to the settlement of the sale is a long, tedious process that can take months. Real estate is one of the most illiquid assets, which can be frustrating if you are trying to sell quickly.
The real estate market size is over $3.5 trillion, and the traditional process of dealing with real estate agents and home listings may be overdue for disruption given current technology.
iBuying companies like OPEN that use algorithms and data models to give fair, online cash offers in minutes, seem like the future of selling real estate as a stress-free alternative. There are many home sellers who would rather receive cash within days and pay less fees rather than find a trustworthy agent and endure listing the home and scheduling showings. There’s no doubt that iBuying will take market share from the traditional real estate experience over the next decades.
However, with an ever fluctuating housing market and many variables, it is not easy for businesses to buy homes and flip them profitably at a large scale. Industry leader, Zillow, recently ended its iBuying business segment due to racking up sustainable losses over the years.
Other iBuying companies such as Redfin and Offerpad show promise in this early, growing space, however OPEN's earnings reports the past year show that its iBuying business has merit and can reliably flip properties profitably.
With the looming threat of a recession, rising interest rates, and record inflation, if OPEN’s algorithms and automated technology withstand the inevitable housing market crash, that will give validation to their resiliency and increase the odds that they can emerge as a future leader in iBuying.
Currently, according to Companies Market Cap, OPEN has a market capitalization of $957 Million (November 2022).
The share price for OPEN is currently looming at around $1.51 per share and according to CNN Business, the prices are expected to rise and stay between $4.50 and $13.00 within the next 12 months, which makes OPEN a good investment to jump into at this market cap.
Currently, these stocks are going at low prices per share and look like a good area for you to venture into no matter the amount of capital you have.
These super stocks can make you filthy rich if you invest early and reap your profits when the share prices rise. However, don’t forget that investing in stocks is also risky. Make sure you do your research before venturing into investing in any stock.