Orion Energy Systems, Inc. is a leading LED lighting manufacture that provides a suite of intelligent controls. The company continues to build a growing pipeline of potential partners, supported by its financial strength to execute on opportunities that fit within its growth plans and financial metrics.
As a $220 billion company, you may think that Adobe’s best days are behind it. However, this business continues drive growth for long-term investors. Adobe has taken a more aggressive approach to acquisitions, recently acquiring Frame.io, a leading cloud-based video collaboration platform. Frame has over a million active users across numerous global businesses, which aligns well with Adobe’s digital experience business. Adobe has continuously announced new additions to its most popular platforms, including critical developments that expand its business into new, lucrative markets.
Marine shipping stocks continue to provide an excellent investment opportunity. Disruption in global supply chains, container shortages, and surges in worldwide trade are combining to benefit these companies. We are bullish on GRIN due to its strong Free Cash Flow, dynamic operational strategy, and balanced capital structure.
MELI is down about 43% over the past month. And it has been beaten down about 20% since January 01, 2022. The selloff is really the result of a broader tech selloff due to fears of slowing growth and various macro factors. MELI is at its lowest Price / Sales ratio in five years (~8.0x). And I expect strong growth over the next three to five years. I believe the company is a good buy all the way to its traditional 10-12x Price/Sales ratio that it has historically had.
Homebuilding stocks continue to rise on the foundation of high demand and low interest rates. CCS still has a strong backlog and benefits from strong management and a specialty home building model. The Company has reported ten quarters of consecutive improvement and returns 31% on Common Equity. Sound fundamentals and recent share price weakness make CCS an attractive target.
BLDR is a leader in the construction products group and this group continues to show signs of strength. We remain bullish on the housing sector and believe that BLDR remains well positioned for growth in a highly fragmented market. BLDR built a strong M&A campaign during 2021 that has improved the Company’s positioning and market share.
UMC continues to grow profit margins and maintains a disciplined CAPEX program. UMC’s focus on lower-end markets enables it to generate stable growth without resorting to more capital-intensive strategies.Helped by a chip shortage that will last at least another twelve months, UMC will accelerate its growth rate. Strong demand fueled by 5G adoption and digital transformation will continue to drive performance. IoT, EV, and HPC will provide additional market tailwinds for its growth. As the Nasdaq falters, take advantage of the selling by buying UMC stock on weakness.
Luminar continues to make progress on production, logistics, and supply chain management. Yet the LiDAR market is characterized by strong competition and has been hard hit by the semiconductor industry. We are bullish on Luminar and recommend a long-term hold over the next three to five years. The Company provides upside due to its existing commercial projects, order book and cash position.