Plus: 📈 CDPR’s shift from explorer to producer could be huge
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Hey Investor, This week’s picks cover: 1 • ⛏️ Why Whitecap Resources can perform regardless of US policies. 2 • 📈 Why Microsoft is exceptionally well positioned to grow in an AI world. 3 • 🪙 Why Cerro de Pasco’s possible shift from an explorer to producer could deliver big upside. |
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WhiteCap Is Positioned To Profit Regardless Of Trump's Policy |
Whitecap is insulated from U.S. tariff risks due to the Trans Mountain expansion and gains global pricing leverage. The Veren acquisition and strong free cash flow support long-term growth and sustain its attractive dividend. |
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61.6% undervalued vs current price |
Based on ~3.5% p.a. Revenue growth for 5 years |
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💡 Why we like it: It’s a sharp, well-reasoned narrative on a company balancing geopolitical risk with execution and scale. The author connects the macro dots of Trump, tariffs, and pipelines, with company-level discipline. The update on May 30th is great as a checkin. |
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Microsoft's Evolution Will Drive Revenue to New Heights Fueled by AI |
Microsoft’s AI integration across platforms like Copilot and Azure is driving strong revenue growth and margin expansion. In-house AI chips and the Activision acquisition further strengthen profitability and long-term positioning. | |
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28.3% overvalued vs current price |
Based on ~5.6% p.a. Revenue growth for 5 years |
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💡 Why we like it: It has thoughtful risk analysis and growth expectations, explaining the upside potential. The base/bull/bear framing makes the possible scenarios easy to digest. However, we think the valuation may be using the bear case numbers, since it doesn’t match the base/bull case commentary. |
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| A CASE FOR USD$2.50 (CAD$3.44) BY 2028 (A 5-10 BAGGER) |
If Cerro de Pasco achieves production with silver at $100 and oil at $50, the stock could rise to around $1.58 driven by strong cash flow and improved margins. Its shift to a producer, combined with high beta and short interest, adds significant upside in a bull market. |
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87.8% undervalued vs current price |
Based on ~105% p.a. Revenue growth for 5 years | | |
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💡 Why we like it: The author balances macro tailwinds (USD $100 silver, cheaper oil) with credible operational milestones, and ties it all together with thoughtful comps and valuation math. It could be considered a speculative pick, but the logic is tight and the risk/reward is clearly mapped out. |
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| This email is from Simply Wall Street Pty Ltd
Level 5, 320 Pitt St Sydney 2000, NSW, Australia. StjepanK is an independent analyst, who has written a narrative in their capacity as a writer contracted by Simply Wall St. 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 narrative 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 estimate’s are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your 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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