Looking beyond the market’s biggest names? Jamie Murray, President of The Murray Wealth Group, shares the investing framework he uses to uncover overlooked companies with strong cash flow, attractive valuations and long-term growth potential. From AI winners and consumer stocks to airlines, REITs and international opportunities, he explains what makes a stock worth buying—and why some of the market’s best opportunities are often the ones investors aren’t paying attention to.
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Jamie’s February 19, 2025 Picks
- Broadcom (AVGO) — up ~70%. Still a buy. Even after the run, Jamie says it should be higher — earnings have outpaced the stock — and he’s still betting on CEO Hock Tan.
- Starbucks (SBUX) — flat and choppy. Sold. The turnaround is working but slowly, and a big labor investment haircut EPS; at ~30x earnings, his team moved on.
- 3i Group (III / London) — down ~33%. Doubling down. A play on discount retailer Action; the drop is multiple compression, not a broken thesis, with a U.S. expansion as the free call option.
The New Picks
Nu Holdings (NU)
The Latin American digital bank rewriting the rules on banking the underbanked.
- Started in Brazil with a Capital One–style playbook — credit cards for consumers the five or six big incumbent banks wouldn’t serve. Today more than half of all Brazilian adults are customers, and it has expanded into loans and broader banking.
- The unit economics are the story: ~$15/user per month in revenue and roughly $1 to service (no branches). Mature customers already spend ~$30 — so there’s a long runway for that number to climb.
- Now operating in Mexico and Colombia, with ambitions to open new markets over the next five years.
- The recent pullback is largely a Brazil overhang (election uncertainty, EM pressure) plus higher growth-investment costs last quarter — not the business breaking. It trades at ~16x earnings, the same as Royal Bank, while growing EPS an estimated 25–30% a year.
Opera (OPRA)
The independent browser playing the “missing middle” — with hidden assets most investors are ignoring.
- Big in Africa, the Middle East, and Europe, now pushing into the U.S. and U.K.; mobile users are growing 50–70%, on a base of ~300 million users.
- ARPU is only ~$2 a year — but at near-zero cost to serve, getting that to $4 would double revenue. EBIT is growing ~20%, with no debt and an active buyback.
- The pitch is differentiation: personalization, gaming, and native ad-blocking and VPN — features Chrome and Safari won’t build in. Yes, AI browsers (Perplexity, OpenAI) are a real disruption risk and part of the choppiness, but Opera is the independent alternative to the defaults.
- Two overlooked kickers: a ~10% stake in OPay, a Nigerian digital bank valued around $4B and a likely IPO candidate; and MiniPay, a stablecoin wallet doing $15–20M in revenue and growing ~100% year-over-year.
Vital (formerly NorthWest Healthcare Properties REIT — TSX: NWH.UN)
A sustainable ~6.5% yield backed by hospital real estate, at a deep discount to NAV.
- Owns hospital-like infrastructure — hospitals and surgical/outpatient facilities — largely on long 10–15 year leases with government or government-adjacent tenants and built-in rent escalators. Bond-like cash flow.
- It cut its dividend about four years ago when COVID, rising rates, and too much short-term debt caught it out — but that was two management teams ago. The balance sheet is now in great shape after significant asset sales.
- Fresh alignment up top: a new CEO from Brookfield, and board chair Bobby Julian has bought ~10% of the company on the open market. The strategy is to consolidate into North America and sell global operations.
- The stock trades around $5.50 against an NAV near $8 — and they’re selling properties at NAV, which validates the mark. With REITs getting taken out “left and right,” Jamie sees the discount closing, and flags a potential take-private by 2028 if the public market won’t give it credit.
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DISCLAIMERS: This text AI generated and should be checked against actual delivery. The content provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
