HKHC - Why FRMO Corporation Might Just Be The Sleeper Stock Of The Year

2025-01-22 11:00:10 ET

Summary

• FRMO Corporation's diverse investments, including stocks and cryptocurrency, have led to a one-year return nearing 50%, with a current stable stock price of around $10-$11.
• The company's strategic investments in Horizon Kinetics and short-selling path-dependent ETFs have bolstered financial stability and cash reserves despite short-selling being a minor part of its strategy.
• FRMO's growing involvement in cryptocurrency, particularly through investments in Winland and Consensus Mining, highlights its commitment to this volatile yet potentially lucrative market.
• With a low P/E ratio of 2.24x and promising growth opportunities, including a potential tax strategy refinement, FRMO is rated a “buy” for high-risk, undervalued growth stock seekers.

Thesis

FRMO Corporation ( FRMO ) has been around since 1993 and operates out of White Plains, New York. It’s essentially a small-cap investment firm, and what it does, broadly speaking, is generate profits by putting its money into an eclectic blend of investment opportunities. These range from the more conventional, such as stocks, to the somewhat more cutting-edge, like cryptocurrency, not to mention various specialized financial strategies.

It looks like FRMO is on the right track, given that its one-year return is hovering close to 50%. Interestingly enough, most of those gains have come in just the past few months, especially following a trading breakout in late September of last year. Since then, things appear to have settled into a more stable range, with the stock now finding its footing somewhere around the $10 to $11 mark....

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