In general, one of our core philosophies is that we prefer to 'water the flowers and cut the weeds', meaning we prefer stocks that are hitting new 52-week highs and performing well, as it is typically indicative that the company is doing something right, and momentum is in an investors' favour. For example, stocks like CSU have been hitting new highs for decades, and investors 'waiting for the right time' or waiting for a pullback can be left on the sidelines while the winning stocks keep winning.
Activity on Wonderfi's platforms are developing nicely, and with crypto trading volumes increasing, its sales have risen to $50.6M over the past 12-months, and its profit margins are improving. Recent momentum has been positive, alongside the broader crypto markets, and it trades at an OK valuation of 1.9X book and 3.2X forward sales. Recent earnings have been positive, and if the crypto markets continue to perform well, we could see WNDR breaking above $0.40. For an investor that is optimistic on the crypto markets and has a timeframe of at least one year, we would be OK with a position around these levels, while acknowledging its high volatility levels and risks.