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Is USA Technologies (USAT) a Smart Long-term Buy?

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Alex Smith
·3 min read
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Laughing Water Capital recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 28.2% for the quarter (net of fees), outperforming their benchmark, the S&P 500 Index which returned 12.2% in the same quarter. You should check out Laughing Water Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q4 2020 Investor Letter, Laughing Water Capital highlighted a few stocks and USA Technologies Inc (NASDAQ:USAT) is one of them. USA Technologies Inc (NASDAQ:USAT) offers consumer payment systems. In the last three months, USA Technologies Inc (NASDAQ:USAT) stock gained 23.7% and on January 25th it had a closing price of $10.35. Here is what Laughing Water Capital said:

"USA Technologies (USAT) – USAT, which will shortly be re-branded as Cantaloupe, is our unattended retail/vending machine software company that was introduced in our Q3’20 letter. The company saw drastic corporate change in 2020 as a new, properly incentivized, board and management team wrested control from a prior regime that mismanaged the company. The new team has made rapid progress in reining in expenses through refinancing debt and right sizing operations, while also shifting the focus of the business toward its best-in-class enterprise software offering (Cantaloupe) and initiating plans for international expansion. The business is still hampered by Covid, but should improve as life returns to normal, and the stock should benefit in the months to come as the market continues to recognize the operational improvement underway, and from the forced buying that accompanies index inclusion."

Pixabay/Public Domain

Laughing Water Capital has been a long time USA Technologies Inc (NASDAQ:USAT) bull. In October 2020, we shared Laughing Water Capital’s bullish USAT's thesis in this article.

Our calculations showed that USA Technologies Inc (NASDAQ:USAT) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.