Skip to main content

Here's My List of Billion Dollar Bets

Let's look at seven names that you can buy right now and watch grow.
Comments

DMY Technology Group DMYI  announced it would be bringing IonQ public. This will introduce the first quantum computing company to the public markets at an enterprise valuation of $1.38 billion based on $10 per DMYI share. Currently, that's close to $1.6 billion the enterprise metric and a $2.2 billion market cap.

This is definitely a cutting-edge company, and the future of where tech is heading, but it's an aggressive valuation to say the least. Revenue for 2021 is targeted around $5 million, growing to $15 million in 2022. Management expects revenue to push above $50 million out in 2024. It will finally break the $500 million mark in 2026, where it will still be cash flow negative. Earnings before interest, taxes, depreciation, and amortization won't see positive territory until 2025. On the plus side, the company will have $616 million in cash to burn through during the next half-decade.

I think it's fair to say this company is at least two years early to public markets, but if you want to be aggressive with a billion here or a billion there, why not put together a group of small names with the thought at least one becomes a billion-dollar company, making the rest of the group gravy? Don't have time? I went ahead and put together seven small names you could buy for a billion dollars (total). And from these names, I think you could walk away with way more than a billion dollars in the next three to five years.

So, maybe you don't have a billion dollars to sink into these names, but none of them are high priced, so picking up a few hundred shares probably isn't out of the realm of possibility for most investors. I should note that these are small, aggressive names that fall in line with the idea of buying a company with essentially no revenue and no free cash flow for the better part of a decade.

  1. CurrencyWorks (CWRK) : You've probably never heard of this name before now. That often happens with under-the-radar Canadian plays, but there's a ton of potential sitting in this name. The only folks that have traded this likely related it to the run in Bitcoin. The irony here is that understates the potential sitting in CWRK. Nothing is hotter than the NFT (non-fungible token) market thanks to NBA Top Shot. Dapper Labs, the company behind the NFT, is doing tens of millions in sales every day. CWRK actually developed an NFT for Topps Garbage Pail Kids in the past. It sold out almost immediately. Odds are management sees the opportunity in NFTs and plans involvement again. They have the experience and technology to get into the thick of it quickly. One issue for Dapper has been payment processing. It took me two days to make a deposit. I've seen numerous complaints about weeks for withdrawals. Well, CWRK already has tech for payment processing. They developed the Freedom Coin used for millions of dollars of transactions at GunBroker.com. We can also add they created the Kodak Coin along with the recently announced partnership with Odyssey Trust and the Canadian Securities Exchange (CSE) for a Security Token reporting system. If you think NFTs are big, wait until you see Security Tokens. The current market value is $40 million. The potential is $400 million without breaking a sweat. It might happen immediately if Dapper Labs teams up with them. Dapper could benefit from the payment help and they have synergies, so I wouldn't call it a dream scenario. I'd say it's logical and realistic.
  2. Draganfly (DFLYF) : Rather than take up space here, I'll link my recent write-up on this $170 million company. If this company were not on the OTC right now, it would be $300 million to $400 million right now. This is a company that could be a billion on its own by the end of 2023 or 2024. 
  3. Cybin (CLXPF) : Psilocybin life sciences company, Cybin, was uplisted to the OTCQB on Monday. Psilocybin is a compound found in certain hallucinogenic mushrooms. With a market cap of $200 million, Cybin's actually one of the biggest on this list and you've probably never heard of it, but you will. Everyone knows Compass Pathways (CMPS) , but Cybin isn't just a competitor, it's a real threat to billion-dollar CMPS. Cybin's 10 patents, strong balance sheet flush with cash, and team of scientists land it ahead of all its competitors. Their scientists were involved with the commercialization of the first and only psychedelic, Esketomine. They were also involved with the creation of a little drug called Allegra. It has heavy institutional ownership with a long-term focus in mind which is one reason we don't see a ton of volume on the stock. I anticipate that will exchange when this one hits the NYSE before the end of the summer. This may be the next billion psychedelics play behind CMPS.
  4. Alkaline Water Company (WTER) : I don't think WTER will ever make it to a billion-dollar valuation, because it will be bought out long before it makes it there. I believe 2021 will be a transition year, helping the company to double its $87 million market cap. They recently announced a deal with Hensley Beverage Company, an Anheuser Busch Inbev (BUD)  distributor, for direct store distribution in Arizona. Additionally, the company started its international expansion with a push into Mexico. This is a big potential catalyst as the Mexican market leads North America in per capital bottled water consumption. Lastly, Nestle announced last week that it was buying Essentia as a move into the premium functional water market. With Essentia out of the picture, that leaves Alkaline as the largest independent premium functional water product on the market. The next move by a big player into the space should have Alkaline included in discussions.
  5. Juva Life (JUVAF) : This is another life sciences company focused on cannabis and data collection that I don't think will be independent by the time IonQ is cash flow breakeven. While this one could reach a billion dollars, I believe a buyout in the $500 million to billion dollar range will happen before Juva gets there on its own. Want to check them out? 
  6. Genprex (GNPX) : This is the only other name on the list that is above $200 million. And this is a biotech, so odds say that we're staring at a company that will be worth in the billions or tens of billions if trials are successful and $50 million, if not. I've written about GNPX so many times, I doubt anyone wants to read about it again, but there's plenty on here if you search the ticker.
  7. GT BioPharma (GTBP) : It's another biotech name, so similar as GNPX. It will either go to $20 million or $2 billion. This immuno-oncology company is using its propriety NK cell engaged (TriKE) platform for the treatment of tumors. The company recently strengthened its balance sheet by eliminating debt, pushing its cash position to $30 millions, and giving itself a runway through mid-2022. After pausing due to COVID-19, they've restarted enrollment in their GTB-3550 clinical trial. Also, the company announced today that the ROR1 TriKE passed pre-clinical trials. Management hopes to transition to a phase I/II trial after one more successful pre-clinical pass.

There you have it. You could scoop up all of these names, in total, for around $950 million as of the market open on Monday morning. What will you do with the extra $50 million left over? Maybe purchase $50 million worth of NBA Top Shot packs. Maybe treat yourself to something nice. You deserve it, after all. Wall Street Bets folks would love it if you spent the money at GameStop (GME) . Go wild.

But these are my seven under-the-radar picks for the rest of 2021 and through 2022.

At the time of publication, Timothy Collins was long GNPX, JUVAF, CLXPF, DFLYF, CWRK.