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9 Stocks Under $20 to Buy Today According to Nishkama Capital

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·8 min read
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In this piece we will take a look at the nine stocks under $20 to buy today according to Nishkama Capital. If you want to jump straight ahead to the top five stocks in this list, then take a look at 5 Stocks Under $20 to Buy Today According to Nishkama Capital.

Nishkama Capital is an American hedge fund based out of New York City, New York. The firm is a relatively young player in the financial industry that consists of giants with decades of experience in making financial bets and raking in billions of dollars. It was founded by Mr. Ravee Mehta in 2013.

While he set up his investment firm less than a decade ago, Mr. Mehta has had prior experience at working in some of the largest institutional investors in the world. Before starting out in the financial world, Mr. Mehta graduated from one of the world's top business schools, by receiving his bachelor's degree from the illustrious Wharton Business School of the University of Pennsylvania. However, unlike some of his other peers who have received only one degree from the University of Pennsylvania, Mr. Mehta would graduate from both Wharton and The School of Engineering and Applied Science.

After graduating from Wharton, he would work at several financial firms before settling down at Nishkama Capital. The now hedge fund executive would start his career as an investment banking analyst at the firm Donaldson, Lufkin & Jenrette Inc. During his time in the industry, Mr. Mehta would also go on to work at the renowned George Soros's Soros Fund Management and serve as a managing director at Karsch Capital Management LLC.

During his career, he would focus on investing in the segment of stocks commonly dubbed as TMT. Referring to Technology, Media, and Telecommunications, this segment is home to some of the most illustrious and highly valuable firms in the world. The most striking example of a technology firm is the Cupertino, California consumer electronics giant Apple, Inc. (NASDAQ:AAPL), and while the company is absent from Nishkama's portfolio, the firm has invested in other technology firms.

Nishkama Capital also focuses on the TMT sector, and it incorporates behavioral psychology in its investment philosophy. Psychology is another one of Ravee Mehta's interests, and he is one of the few hedge fund investors who has written a book on the subject. The book is titled The Emotional Intelligent Investor and it focuses on stressing the importance of tailoring one's investment approach with one's character and personality traits, arguing that an individual's investment philosophy is the reflection of the investor themselves. The firm focuses on the Unites States when investing, but it also looks at companies in other countries as you'll find out as you read through this post. Additionally, it also utilizes fundamental research and a study of investor behavior that covers several areas such as growth investing and value investing for a balanced investment approach.

Photo by Mohamed Hadji on Unsplash

A cursory glance at Niskhama Capital's portfolio reveals that the firm had invested $405 million as the fourth quarter of last year came to an end. Some of the well known companies in the portfolio are Barnes & Noble Education, Inc. (NYSE:BNED), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT).

Our Methodology

In order to pick out Mr. Mehta and his firm’s favorite stocks that are under $20, we sifted through Nishkama Capital’s filings with the Securities and Exchange Commission for the fourth quarter of last year. This enabled us to sort and identify the firms after which we evaluated them through their earnings reports, analyst coverage, large investor holdings, investor letters, and hedge fund sentiment gleaned through Insider Monkey’s survey of 924 hedge funds for Q4 2021.

Stocks Under $20 to Buy Today According to Nishkama Capital

9. NeoGames S.A. (NASDAQ:NGMS)

Nishkama Capital’s Stake Value: $711,000

Percentage of Nishkama Capital’s 13F Portfolio: 0.17%

Number of Hedge Fund Investors: 16

Stock Price as of May 16, 2022: $12.05

NeoGames S.A. (NASDAQ:NGMS) is an Israeli digital lottery services provider. The company has several services, technology platforms and a game studio under its portfolio. Through these, it offers instant and draw based games to users with a host of devices such as smartphones, personal computers, and others. Additionally, it also offers online lotteries and games, alongside software development and licensing services.

Nishkama Capital owned 25,579 NeoGames S.A. (NASDAQ:NGMS) shares during the fourth quarter of last year. This allowed it to have a $711,000 stake in the company, which constituted 0.17% of its investment portfolio. Insider Monkey's Q4 2021 survey of 924 hedge funds outlined that 16 had also invested in the company.

As its first fiscal quarter came to an end, NeoGames S.A. (NASDAQ:NGMS) had raked in $13 million in revenue and -$0.03 in GAAP EPS, for a poor set of results that saw it miss Wall Street analyst estimates for both metrics. The company's updated earnings guidance for the full fiscal year saw it increase guidance by 11%. Jefferies set a $20 price target for the company in March 2022, as it stated that the firm was performing better when compared to its peers.

Along with Alphabet Inc. (NASDAQ:GOOG), Barnes & Noble Education, Inc. (NYSE:BNED), and Microsoft Corporation (NASDAQ:MSFT), NeoGames S.A. (NASDAQ:NGMS) is a top Nishkama Capital stock pick.

8. Core Scientific, Inc. (NASDAQ:CORZ)

Nishkama Capital’s Stake Value: $1.1 million

Percentage of Nishkama Capital’s 13F Portfolio: 0.27%

Number of Hedge Fund Investors: N/A

Stock Price as of May 16, 2022: $4.25

Core Scientific, Inc. (NASDAQ:CORZ) is an American software and infrastructure firm that is headquartered in Austin, Texas. It focuses its efforts on blockchains and digital asset mining, by providing both software and infrastructure to its customers. Its software includes custom firmware, infrastructure management options, and mining technologies. Additionally, the infrastructure segment includes equipment sales and hosting services.

As its fiscal  first quarter came to an end, Core Scientific, Inc. (NASDAQ:CORZ) reported $192 million in revenue and $0.31 in non-GAAP EPS, in a mixed bag of results that saw it beat analyst EPS estimates but miss them for revenue. In March 2022, the company had 80,000 bitcoin miners and a hash rate of 8.3 EH/s. During April 2022, Core Scientific, Inc. (NASDAQ:CORZ) mined 1,121 bitcoins and its hash rate dropped slightly to 8.1 EH/s.

Mr. Mehta's hedge fund owned a $1.1 million stake in Core Scientific, Inc. (NASDAQ:CORZ) by the end of Q4 2021. This came in the form of 102,061 shares and it represented 0.27% of the firm's investment portfolio.

Core Scientific, Inc. (NASDAQ:CORZ)'s largest investor is David Rosen's Rubric Capital Management which owns 2.2 million shares that are worth $24 million.

7. AvidXchange Holdings, Inc. (NASDAQ:AVDX)

Nishkama Capital’s Stake Value: $1.1 million

Percentage of Nishkama Capital’s 13F Portfolio: 0.28%

Number of Hedge Fund Investors: 19

Stock Price as of May 16, 2022: $6.96

AvidXchange Holdings, Inc. (NASDAQ:AVDX) is a payments solution software provider headquartered in Charlotte, North Carolina, United States. The company's software allows its customers to manage their accounts payable autonomously alongside connecting with buyers and suppliers and managing cash flows and workflows.

Nishkama Capital's fourth quarter of 2021 stake in AvidXchange Holdings, Inc. (NASDAQ:AVDX) was worth $1.1 million. It came through the investment firm owning 77,854 shares of the company and represented 0.28% of its investment portfolio. Insider Monkey scanned 924 hedge fund investments for Q4 2021 to find out that 19 had also invested in the company.

AvidXchange Holdings, Inc. (NASDAQ:AVDX)'s fiscal Q1 results revealed that it had earned $71 million in revenue and -$0.13 in GAAP EPS, for a strong set of results that beat Wall Street analyst estimates for both metrics. Deutsche Bank lowered its price target to $13 from $16 in May 2022, as it stated that company delivered solid growth during the first quarter.

6. Limelight Networks, Inc. (NASDAQ:LLNW)

Nishkama Capital’s Stake Value: $1.2 million

Percentage of Nishkama Capital’s 13F Portfolio: 0.3%

Number of Hedge Fund Investors: 11

Stock Price as of May 16, 2022: $3.4

Limelight Networks, Inc. (NASDAQ:LLNW) is a company that provides content delivery and network services in the United States, Americas, Europe, Middle East, Asia, and Africa. The firm offers online video delivery platforms, edge computing services, cloud security, cloud storage, and rack space services.

As part of its fourth quarter of 2021 investments, Mr. Mehta's hedge fund had held 354,876 Limelight Networks, Inc. (NASDAQ:LLNW) shares. These were worth $1.2 million and made up 0.3% of its investment portfolio. For the same time period, 11 of the 924 hedge funds researched by Insider Monkey had also held the firm's shares.

Limelight Networks, Inc. (NASDAQ:LLNW) reported $57 million in revenue and -$0.04 in non-GAAP EPS for its fiscal first quarter, beating analyst revenue estimates and meeting them for the EPS. Cowen raised the company's price target to $6 from $4 in March 2022, explaining that the company is on track to regain lost traffic share.

Limelight Networks, Inc. (NASDAQ:LLNW)'s largest investor is Cynthia Paul's Lynrock Lake which owns 4 million shares that are worth $14 million.

Limelight Networks, Inc. (NASDAQ:LLNW) joins Barnes & Noble Education, Inc. (NYSE:BNED), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) in the list of Ravee Mehta's top stock picks.

 

Click to continue reading and see 5 Stocks Under $20 to Buy Today According to Nishkama Capital.

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Disclosure: None. 9 Stocks Under $20 to Buy Today According to Nishkama Capital is originally published on Insider Monkey.