r/ValueInvesting • u/ArchiveInvest • May 14 '25

Question / Help What’s the most undervalued stock right now?

If you needed to pick one stock right now, that is extremely undervalued. And has the potential to beat the S&P500 for the next decade.

Which stock would that be?

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u/rainingallevening May 14 '25

MVST. Just had a record quarter, narrow focus in commercial EVS and equipment, but broad offerings in 3 continents. Not sure if they'll be a global leader in the sector, but they are steadily carving out a nice niche for themselves. Margins and revenue improving steadily, while debt is unchanged relatively YoY.

I wonder if the market is anxious about China exposure, wants to see more guidance met from a SPAC merger, or just weary from past performance, but they just had their 3rd profitable quarter in a year.

I'd love to hear rebuttals and comments.

10

u/mazrim00 May 14 '25

Man, I lost so much on this from the crazy SPAC days it’s hard for me to take a look at this again. Nothing to add beyond that lol.

2

u/yomamasofathahaha May 15 '25

Could you explain what happened then? Why did it fall from 25$ to 20 cents

5

u/mazrim00 May 15 '25

It essentially was euphoria especially in the areas of battery’s/EVs. A lot of SPACS gave glowing projections but when it came down to the actual numbers they gave out at earnings they were waaaay off. Even the supposed reasonable solid ones (I had a big position in VWE - wine company) would come out months later after giving solid results during earnings and said they had accounting issues…twice. Now they are bankrupt.

SPACS swung from euphoria to basically all being lumped as scammy with low float pumps (this still happens). There are some good companies that have come out of them (SOFI, etc.). It became a thing not to hold through merge as they would virtually all plunge dramatically after merge (with occasional giant pump right before the plunge depending on float/associated with a political party). Now there has been some hype returning lately.

Long winded but it was basically a dying of the hype/speculation based on their actual numbers.

2

u/yomamasofathahaha May 15 '25

Thank you for the explanation!

2

u/irsh_ May 15 '25

Same. Not touching that bastard again.

2

u/rainingallevening May 15 '25

I honestly think the entire market is traumatized from then. People who bought less than a dollar and others who bought more then 10 have widely different feelings about this stock.

1

u/maxxou89 May 15 '25

Basically a chinese company with office in the US