Why Crashed Stocks Create Fortunes

Ajouté : 2026-05-30

[00:00:02][music] >> Hi, it's Richard Hemming from Under the Radar Report.

[00:00:11]My message today is forget about SpaceX.

[00:00:15]You want to make money, you go the other direction.

[00:00:18]You invest in stocks that have been thrown out by literally thousands of investors. Stocks that have been stomped on. Stocks that have been smashed.

[00:00:28]There's trauma, there's pain, it's like Queensland in the state of origin right now.

[00:00:34]Look, I'm talking about taking advantage of investor psychology. I'm talking about what we stand for at Under the Radar.

[00:00:41]Buy cheap and be patient. Yes, I'm talking about fallen angels.

[00:00:47]This week one of our best buys Kogan spiked about 20% on a business update.

[00:00:52]Let me say I think Kogan can go a lot further.

[00:00:57]Which I'll get into. But I really want to talk to you about how stocks that have fallen out of bed, you know, I'm talking not just about a stumble, I'm talking about a full-on crash, can be some of the biggest opportunities in your portfolio. They can make a difference to your life.

[00:01:13]Stocks that come to mind right now, of course you can't avoid CSL. There's also uh the Singapore Singapore mobile company Tuas, which has fallen 60%.

[00:01:25]Look, these companies are in pain. Investors are in pain. They also include AI services group Appen, which is a bit further down the, you know, down the pathway.

[00:01:38]But they include loads of software stocks. Loads of software stocks like Catapult Sport, Gentrack, WiseTech. The list goes on. These stocks are at various stages of investor pain. It's pretty raw at CSL and Tuas. But that's where you can often find value.

[00:01:57]I found it worthwhile on occasion throwing a few bucks at stocks that have been really hit hard and see how it goes and then you leverage into success or you back off.

[00:02:09]The more you do fundamental analysis, the more confidence you have about the valuation, about the underlying value of any business.

[00:02:19]So let's get back to Kogan and the psychology of investing.

[00:02:23]This stock was up at $20, $20 in 2020.

[00:02:28]Um you know, the past past few years it's really battled. It's battled getting traction. It's been you know, $2 something, $3 something. Now we're back there and it's just past uh you know, gone $3 $3 and it's now above $4. But the valuation still looks good. It still good looks good because there's still a lot of pain in the share price.

[00:02:50]What we like about Kogan is their strategy, is the management strategy of discounting aggressively on the product front. Really getting consumers into their into their space, into their website, buying their products and then selling them services like mobile phones, like um insurance. You name it, they sell it. They get subscription revenues, they get higher margins. It's a fantastic business.

[00:03:16]The New Zealand business Mighty Ape is still turning around so there's still loads of upside with Kogan.

[00:03:22]But the key takeout is that if you do in-depth research, if you do fundamental analysis, you look at the balance sheet, you look at the P&L, you look at the cash flow, you you look at the customer base, you can ignore sentiment for a second and find value among other people's throwaways. So another way of putting it is that the growth darlings of the past that have lost their mojo eventually turn into dividend payers today. But the business has to be good enough.

[00:03:53]Look, other stocks might not be as far down the, you know, road as Kogan because Kogan's done a lot of work.

[00:04:00]But, you know, and Kogan is producing growth and dividends. But, the stock, you know, these stocks in question could be cheap enough to put some of your cash to work.

[00:04:10]And that's where we can help you. We can help you determine when it's time, you know, to have a to have a go at a potential turnaround.

[00:04:21]Look, that's how to leverage into success. You have to start somewhere.

[00:04:26]You start small and you grow big.

[00:04:29]That's explosive investing.

[00:04:33]Thanks. Richard Hemming here Under the Radar Report.

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