Plus: 📈 Mycronic to benefit from AI and EV-driven demand cycles, while EM fintech Dlocal enjoys sticky growth
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Hey Investor, This week’s picks cover: 🪙 How Americas Gold and Silver could deliver 6-10x upside over 5 years. 💳 Why DLocal’s trusted brand in emerging markets is under appreciated. 📈 Why Mycronic will benefit from an electronics-complexity super-cycle. |
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A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. |
Americas Gold and Silver’s production could reach 7–8 million ounces of silver annually by 2027 as EC120 and Galena ramp up. At $100/oz silver and $4,000/oz gold, the company could generate over $500 million in annual free cash flow, with no dilution and strong insider backing supporting a 6–10x upside by 2029. |
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~91% undervalued vs current price |
Based on ~180% p.a. Revenue growth for 5 years | | |
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💡 Why we like it: It’s a high-conviction deep dive with bold but well-framed assumptions. The author backs the 6–10x upside case with detailed production math, cost models, and a clear valuation range, making this an ambitious but methodical bullish narrative for those with an appetite for risk. |
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DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts |
DLocal is driving 35% revenue and margin growth through product expansion, deeper local integrations, and automation of complex transactions to boost merchant adoption and retention. Its unified platform and strong emerging market presence create high switching costs and reinforce a durable competitive moat. | |
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~94% undervalued vs current price |
Based on ~35% p.a. Revenue growth for 5 years | | |
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💡 Why we like it: It’s a nuanced take on a fast-scaling fintech with deep roots in emerging markets. It balances bullish growth drivers like platform expansion and merchant retention with honest insight into execution risk. The focus on high-volume complexity and switching moats paints a clear picture of durable edge in a volatile sector. |
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Historically Cheap, but the Margin of Safety Is Still Thin |
Mycronic is poised to benefit from rising electronics complexity, driving demand for its precision tools across AI, EV, and semiconductor markets. Despite historically strong pricing power and room for valuation mean-reversion, margin of safety remains thin if growth or margins falter. |
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~19% undervalued vs current price |
Based on ~12% p.a. Revenue growth for 5 years |
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💡 Why we like it: It’s a clear-eyed take on a premium capital equipment business with durable pricing power and steady growth. However it also warns investors not to confuse "cheap" with "safe." A smart, balanced view of upside and risk. |
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| This email is from Simply Wall Street Pty Ltd
Level 5, 320 Pitt St Sydney 2000, NSW, Australia. Simply Wall St has no position in the company(s) mentioned. These narratives are general in nature and explore scenarios and estimates created by the authors. These narratives do not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company’s future performance and are exploratory in the ideas they cover. The fair value estimates are for informational purposes only and do not constitute a recommendation to buy or sell any stock. They do not take into account your objectives or financial situation. Note that the author’s analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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