Cramer Says Joint Stock Company Kaspi.kz (KSPI) Is A ‘Good Company’
We recently published an article titled, Jim Cramer’s Latest Lightning Rounds: 15 Stocks to Watch. In this article, we are going to take a look at where Joint Stock Company Kaspi.kz (NASDAQ:KSPI) stands against other stocks discussed by Jim Cramer during the latest lightning rounds.
Recently on Mad Money, host Jim Cramer stressed the necessity of staying updated on economic indicators, government actions, and industry developments to make informed investment choices. He emphasized that speculation should be approached with the mindset of a “pro” rather than a novice. Cramer mentioned that while he does not oppose speculation, it must be done with an understanding of the risks involved. He remarked:
“Otherwise, if things go south, you’ll be caught playing a game of endless musical chairs, led by me getting a huge number of lightning round calls about some very sketchy outfits that all belong to what I call the hot money segment.”
Cramer provided insight into this hot money segment, describing it as a segment with limited capital that cannot satisfy all the demand. He specifically pointed to China, explaining that the current policies from the Chinese government have created an environment where, for the moment, it seems nearly impossible to incur losses. He elaborated that the government is actively subsidizing stock purchases and promoting buybacks and insider buying through liquidity support.
It has led to significant price movements in the market. When considering investments in Chinese stocks, Cramer advised caution, suggesting that investors should focus on companies capable of withstanding market fluctuations. He pointed out that many people are tempted to buy Chinese auto stocks, especially given their impressive advancements in electric vehicle technology. Nonetheless, he warned that the electric vehicle market is becoming increasingly saturated.
Cramer added that with the limited amount of hot money available, speculative stocks now face competition from cryptocurrencies. He expressed his belief that Bitcoin and Ethereum are the only cryptocurrencies with a good chance of recovery, dismissing most others as “junk”.
He shared that he only invests in these two digital currencies and avoids common stocks tied to the cryptocurrency market, deeming them too risky compared to Bitcoin and Ethereum, which benefit from exchange-traded products backing them. Cramer concluded by mentioning that speculation should be done wisely, saying, “With any speculative trade, there’s a beginning and an endpoint.”
Our Methodology
For this article, we compiled a list of 15 stocks that were mentioned by Jim Cramer during the lightning rounds of his episodes of Mad Money on October 4 and October 7. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Cramer Says Joint Stock Company Kaspi.kz (NASDAQ:KSPI) Is A ‘Good Company’
Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
Number of Hedge Fund Holders: 25
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is a provider of payments, marketplace, and fintech solutions in Kazakhstan. It serves both consumers and merchants. The company facilitates a variety of transactions, including shopping, bill payments, and peer-to-peer transfers. In addition, it offers valuable data insights that help businesses make informed decisions. The company also features travel services, allowing customers to book flights and holidays seamlessly. When asked about the company, Cramer said:
“This is fintech. It’s a good company. I prefer, right now, I’ve been watching PayPal. I think it’s a similar business, and I think a better value.”
A significant portion of Kaspi.kz (NASDAQ:KSPI) revenue, 99.6%, is generated within Kazakhstan, with a small remainder coming from operations in Azerbaijan and Ukraine.
In response to a recent research report by Culper Research, the company issued a statement expressing that the report misrepresents its business. The company highlighted its position as the first from Kazakhstan to successfully list on the Nasdaq, noting that this visibility has attracted attention from short sellers.
On September 20, TheFly reported that JPMorgan acknowledged concerns raised in the report regarding the company’s exposure to Russia. The firm also mentioned that many issues discussed were already known to investors, including the migration of Russian immigrants to Kazakhstan.
JPMorgan plans to conduct further diligence on the report while maintaining an Overweight rating on Kaspi.kz (NASDAQ:KSPI), suggesting that concerns surrounding the report may linger as a potential overhang on the stock.
Overall, KSPI ranks 9th on our list of stocks discussed by Jim Cramer during the latest lightning rounds. While we acknowledge the potential of KSPI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KSPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.