2 Long Shot Investments to Start Your 2024 Off Right

2 Long Shot Investments to Start Your 2024 Off Right

Posted On December 12, 2023 9:53 am

This week, I want to continue to offer some long shots that have the potential for huge payoffs if they work.

Some will. Some will not

Please understand that these companies have the potential for massive gains over the next several years.

They are highly unlikely to make you rich beyond your wildest dreams by next Tuesday.

Owning them will not protect you from the Federal government or keep your banking information from being accessed by the Chinese Central Bank.

But if we have a batting average of 50% and half of the losers survive, we will almost certainly handily beat the S&P 500 over the next three years or so.

So, let’s take a look at these two long shots…

Returns will be increased if you buy on big down days in the market.

Taking small profits using the rationale that you can never go broke taking a profit will lead to underperforming the S&P 500 over the next three years or so.

We are looking to keep score in multiples of the purchase price, not just percentages.

Our first long shot is Sleep Number Corporation (SNBR). In case you live under a rock or watch even less TV than we do, this company makes beds with adjustable firmness numbers that guarantee a good night’s sleep, domestic tranquility, and increased personal productivity.

The mattresses are sold online and in company-owned stores around the United States.

High-end bedding has been a weak market over the past year. Consumers are being cautious and avoiding high-price tag items.

A shocking number of 20–30-year-olds still live at home, so demand for mattresses is below expectations.

Sleep Number is growing market share in a weak market but losing money.

As a result, the stock is down about 50% over the past year.

This is a decent company with good products. When housing improves, so will business for Sleep Number.

The stock trades at a price-to-sales ratio of just .17.

As long as management does not screw up too badly and the economy does not end up in a deep-lasting depression, it is hard to see how this stock does not give patient-aggressive investors a return of 4-5 times the current price.

Wolverine World Wide Inc. (WWW) is in the shoe business.

I was sure I had never seen a Wolverine brand shoe until I investigated the company and realized they made Sperry, which makes Docksiders.

That was my shoe of choice for decades when I…

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