3 High-Risk, High-Reward Stocks to Consider in June 2024

For some investors, it is not enough to overcome currency erosion via inflation. Of the many candidates in this category, from dividends to growth stocks and blue chip stocks, they generally imply safe, slower growth.

But what about companies that are perceived as bad calls, from this safe perspective? Because their shares are suppressed, they have a higher potential for greater gains. Yet they still offer some fundamentals that are hard to ignore.

Here are three stocks that are riskier but offer the potential for higher rewards.

Boeing (NASDAQ:BA)

Whether it’s new whistleblowers, close landings and mishaps, or a botched NASA launch, hardly a month goes by without negative news from Boeing. This continued feeding has removed BA stock, far from its all-time high of $430 in March 2019 to $191 per share.

Yet that price is now above the 52-week low of $159, reached at the height of Boeing’s Fear, Uncertainty, and Doubt (FUD). The reason is simple: there is no substitution in the market for this type of wide moat company that could tackle the scale of military contracts, commercial flights, eVTOL and deployment space rockets.

As Boeing whistleblowers point out that the company is no longer prioritizing quality controls in favor of racial/gender accounting, the company’s corporate culture is one election away, or one away a CEO, with turnaround potential. In the meantime, its well-established status is unlikely to erode, which is why such non-commercial luxuries were put in place in the first place.

BA stock is down 24% year to date. But given Boeing’s fundamentals, the analyst consensus for the next 12 months indicates an average BA price target of $215.43, with a high of $270 versus a low of $140 per share.

Tesla (NASDAQ:TSLA)

Like Boeing, Elon Musk’s wealth creation company is no stranger to FUD. Although Tesla is not a wide-margin company, it has electric vehicle dominance in major U.S. and European markets. By avoiding the unionization trap, Tesla continues to maintain an advantage over traditional automakers like Ford Motors.

Effectively ceding the pure electric vehicle market to Tesla, Ford Motors has shifted its focus to hybrids, with some success in driving sales growth in the first quarter. Tesla’s foray into the SUV market, and subsequent recall of Cybertrucks, has not helped the FUD in the face of encroachment from Chinese automakers like BYD and Li Auto.

Nevertheless, Tesla’s main platform, the Model 2, will not be rolled out in 2025. Until now, the company’s entire history has been focused on popularizing electric vehicles as luxury vehicles from from the cumbersome era of specialized vehicles. The next-generation Model 2, priced at $25,000 in addition to being the platform for robotaxes, has not yet become Tesla’s bread and butter.

It’s fair to say that this two-year interim period will lay the foundation for Tesla’s failure or success. But if it’s the latter, the gains should be substantial relative to the currently muted TSLA stock.

Given Musk’s technological success in SpaceX, investors are counting on this scenario. Since reaching an all-time high of $409 in November 2021, TSLA stock has been priced at $177 per share, below the 52-week average of $220. Since the end of February, TSLA stock has been moving sideways, having lost 28% of its value since the start of the year.

Baselode Energy (OTC: BSENF)

Investors ready to take the uranium plunge would be betting on this Canadian company’s discovery of new uranium deposits in the Athabasca Basin, particularly on the challenges of solving mining problems in the underground mining of sandstone.

On this issue, even Larry Fink, CEO of BlackRock and leading facilitator of ESG, admitted that “the world is going to run out of energy” due to the demand for generative AI. Nuclear power is by far the densest and cleanest form of energy, with buildings of modern design, offering zero air/carbon emissions.

Although uranium is not renewable, just 1 kg of uranium is equivalent to the energy produced by 2.7 million kg of coal. Baselode has four main uranium mining projects: Catharsis, Bear, Hook and Shadow, of which Catharsis is in the drilling phase. Depending on the success of exploring other projects and mining the uranium trioxide ores discovered at ACKIO, Baselode could end up powering entire countries.

Unlike other uranium stocks that have soared, the BSENF penny is down 33% year to date, due to technical challenges and stock dilution in February to fund operations. As of the end of March, the company had nearly three years’ worth of operating runway, based on the cash burn rate reported in May. But if Baselode reaches its full uranium potential, shareholders could see triple-digit returns in the coming years.

What was your riskiest bet in your investing career? Let us know in the comments below.

Disclaimer: The author neither owns nor has any position in the securities discussed in the article.

About the Author

Tim Fries is the co-founder of The Tokenist. He holds a BSc in mechanical engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior associate on the investment team in the US private equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and security solutions. and control.