My long term value watchlist for 2025

All of these are profitable, debt-free companies with a great future projection

Some time ago I promised the Reddit community a watchlist of companies that would be in my sights at the end of the 2025 recession.

Formally, the recession has not yet started, although I personally believe it is not far off, so I have decided to share this watchlist of companies that I believe will have a great future projection if they are able to survive the recession.

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The watchlist

In the following section I explain the selection process I followed to compile this list, but all the companies are listed in the USA (in parentheses I indicate the country where they are headquartered).

• ITRN 0.00%↑ (Israel)

• ABEV 0.00%↑ (Brazil)

• EGY 0.00%↑ (USA)

• PUBM 0.00%↑ (USA)

• FIHL 0.00%↑ (Bermuda)

• TME 0.00%↑ (China)

• LRCX 0.00%↑ (USA)

• FINV 0.00%↑ (China)

• ZTO 0.00%↑ (China)

• PYPL 0.00%↑ (USA)

• ACMR 0.00%↑ (USA)

• RLX 0.00%↑ (China)

• SJ 0.00%↑ (China)

• LOVE 0.00%↑ (USA)

• MOMO 0.00%↑ (China)

• RNGR 0.00%↑ (USA)

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My selection method

As of March 26, 2025, all of these companies have a total of five things in common:

1. They all have more cash than debt, and most of them have directly no debt.

   1. Having more cash than debt means that companies are in a privileged position, as they should be able to meet future debts or contingencies.

2. The debt to equity ratio is less than 0.80.

   1. When a company has a debt ratio of less than 0.8, it means that it has financed itself with its own funds and has been able to largely avoid indebtedness.

3. They have no preferred stock.

   1. Preferred stock prioritizes income and stability over growth and control, which are typically the main interests of common stockholders.

4. They show a positive evolution of their retained earnings (on an annual basis).

   1. If this progress is positive over long periods of time and even in periods of high uncertainty marked by economic downturns, the company in question is highly resilient.

5. They have a share repurchase program in place.

   1. These programs are really positive because they demonstrate the company's commitment to its shareholders and, in turn, increase the value of the company, often “artificially” inflating its stock market price.

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Future watchlists

Obviously, when analyzing value, it would also be necessary to “measure” the value of each company in terms of competitive advantages and capacity to differentiate itself from its competitors, but my basic idea is to start with good numbers because that is what can really be analyzed quantitatively.

Okay, but does that mean that companies that meet 4 of these 5 requirements are not worthwhile?

Of course not, and next week I will publish another article with my watchlist of the companies I have found that meet only 4 of these requirements, as I believe that many of them may be surprising.

I will also write some DD about the ones I find most interesting, and shortly I will make a list of highly speculative companies that I like.

Take care, see you around, and be careful in this ruthless market!

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DISCLAIMER

• I never provide financial advice on any platform: trade and/or invest at your own discretion, risk and responsibility.

• My posts are intended for educational purposes and discussion only.

• All investment decisions are your responsibility, I just provide my opinion based on my research: the only thing I can promise is high quality research.

• My content and opinions may be incorrect or incomplete. Always conduct your own analysis and research before making decisions.

• Again, this is not financial advice. If you rely solely on the information in my publications, you are making a conscious decision to do so, and therefore I will in no way be held responsible for any financial loss or outcome.