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Edge Sponsor
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First Phosphate (Canada: PHOS) (USA: FRSPF) is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (LFP) battery industry. The Company holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay–Lac-St-Jean Region of Quebec, Canada that it is actively developing. First Phosphate properties consist of rare anorthosite igneous phosphate rock that generally yields high-purity phosphate material devoid of high concentrations of harmful elements.
Recently, First Phosphate received a letter of interest (LOI) from the Export-Import Bank of the United States (EXIM) to provide financing for the Company.
Here Are The Highlights:
The LOI expresses that EXIM would be able to provide up to USD 170 million in financing to First Phosphate.
️ The LOI supports the procurement of U.S. goods and services by First Phosphate in Canada and is eligible for a maximum repayment term of 10 years.
The transaction may be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries for opportunities such as this one and to advance the comparative leadership of the United States in the Transformational Export Areas.
To learn more about First Phosphate, read its investor presentation below.
Quality Compounders
 ShockWave Medical Revenue | ShockWave Medical |
ShockWave Medical (SWAV)
Industry
Medical Instruments Manufacturing
Overview
ShockWave Medical is a trailblazing leader in the medical device industry, revolutionizing the treatment of calcified cardiovascular disease. Its proprietary Intravascular Lithotripsy (IVL) technology, which utilizes sonic pressure waves, offers a groundbreaking solution for safely and effectively treating calcified arteries. This cutting-edge technology is a game-changer in the critically important cardiovascular health market and is a major reason the company has achieved unprecedented growth over the past five years.
Financials
Return on Invested Capital: 41.00%
Profit Margin: 39.60%
Earnings Per Share (5-Year): 47.60%
Revenue (5-Year): 209.70%
Debt to Equity: 0.04
Market Cap: $7.613 Billion
Current Stock Price: $206.87
Intrinsic Value: $407.24
Margin of Safety: 49.20% Below Intrinsic Value
Competitive Advantages
Revolutionary Intravascular Lithotripsy (IVL) Technology: ShockWave Medical’s foremost competitive advantage is its groundbreaking Intravascular Lithotripsy (IVL) technology. This proprietary innovation utilizes sonic pressure waves to safely and precisely treat severely calcified arteries. IVL offers a transformative solution where traditional methods often fall short, making ShockWave a pioneer in the field of interventional cardiology and positioning them as a preferred choice for healthcare providers and patients.
Clinical Validation and Efficacy: ShockWave Medical’s technology is not just revolutionary; it’s clinically validated. The company has amassed a robust body of clinical evidence showcasing the safety and efficacy of IVL in treating calcified cardiovascular disease. This wealth of data not only instills confidence in healthcare professionals but also drives the adoption and acceptance of IVL as a standard of care, setting ShockWave apart from competitors.
Dedicated Focus on Cardiovascular Health: ShockWave Medical’s unwavering dedication to cardiovascular health is a distinct competitive edge. They understand the critical importance of addressing calcified arteries, a common and challenging issue in cardiovascular medicine. By focusing solely on this critical area, ShockWave demonstrates unparalleled expertise, ensuring it remains at the forefront of innovation and a trusted partner for healthcare institutions globally.
 Qifu Loan Facilitation Volume (RMB)| Qifu Technology |
Qifu Technology (QFIN)
Industry
Financial Technology Services
Overview
Looking for an international fintech stock? Qifu Technology is a leading Credit-Tech platform in China. The company makes credit services more accessible and personalized to consumers by helping financial institutions identify their diversified needs and connect creditworthy borrowers through enhanced credit assessment and improved collection strategies. This customer-centric approach, combined with its technological prowess has allowed Qifu to create multiple competitive advantages in a variety of areas including customer acquisition, funding optimization, risk assessment, and post-lending management.
Financials
Return on Invested Capital: 19.70%
Profit Margin: 25.00%
Earnings Per Share (5-Year): 85.20%
Revenue (5-Year): 83.80%
Debt to Equity: 0.01
Market Cap: $2.747 Billion
Current Stock Price: $17.02
Intrinsic Value: $79.84
Margin of Safety: 78.68% Below Intrinsic Value
Competitive Advantages
Comprehensive Credit-Tech Ecosystem: Qifu Technology has built a comprehensive Credit-Tech ecosystem that connects financial institutions, consumers, and SMEs. Their technology solutions facilitate efficient online lending processes, enhance credit screening, and provide post-facilitation services. This ecosystem offers substantial advantages to financial institution partners by seamlessly integrating with their infrastructure, expanding their borrower base, and improving risk-adjusted returns.
Effective User Profiling and Risk Management: Qifu Technology’s advanced technology and credit profiling capabilities enable them to identify creditworthy users with low delinquency risks. This expertise is especially valuable in serving consumers and SMEs with limited credit history and collateral, a demographic often underserved by traditional financial institutions. By effectively managing risk, Qifu empowers financial institutions to extend their borrower reach while offering users convenient, flexible, and transparent financial products.
Diversified Revenue Streams: Qifu Technology’s business model includes both credit-driven services and platform services. Under the credit-driven services, they provide guarantee services against potential default risks and bear credit risks, generating income through service fees. Simultaneously, their platform services offer customized technology solutions to financial institution partners at various stages of the loan lifecycle, diversifying their revenue streams. This dual-pronged approach strengthens their financial stability and resilience.
 Vertex Product Pipeline | Vertex Pharmaceuticals |
Vertex Pharmaceuticals (VRTX)
Industry
Medical – Biomedical and Genetics
Overview
Vertex Pharmaceuticals is a dominant force in the biotechnology industry, celebrated for its groundbreaking work in developing therapies for cystic fibrosis and other severe diseases. This portfolio of life-saving drugs exemplifies its unparalleled expertise in targeting the root causes of genetic diseases, offering new hope where previously there was none. With a relentless commitment to innovation and a proven track record of pioneering precision medicine, Vertex stands at the forefront of transforming the lives of patients worldwide.
Financials
Return on Invested Capital: 23.60%
Profit Margin: 35.40%
Earnings Per Share (5-Year): 65.30%
Revenue (5-Year): 29.10%
Debt to Equity: 0.03
Market Cap: $92.786 Billion
Current Stock Price: $358.70
Intrinsic Value: $572.34
Margin of Safety: 37.33% Below Intrinsic Value
Competitive Advantages
Revolutionary Precision Medicine: Vertex Pharmaceuticals’ foremost competitive advantage is its revolutionary precision medicine approach. They excel in developing therapies that target the root causes of genetic diseases, particularly cystic fibrosis. This precision not only provides life-changing treatments for patients but also positions Vertex as an undisputed leader in addressing rare and severe diseases where traditional medicine falls short.
Robust Pipeline of Innovative Drugs: Vertex boasts a robust pipeline of innovative drugs beyond cystic fibrosis, demonstrating its ability to diversify and expand its therapeutic portfolio. Their commitment to research and development ensures a continuous stream of potential breakthroughs, making them a preferred choice for investors seeking exposure to cutting-edge biotechnology.
Global Reach and Collaborative Partnerships: Vertex has a global reach and strategic collaborations with other biotech leaders and pharmaceutical companies. These partnerships bolster their research capabilities, expedite drug development, and expand market access. Vertex’s ability to navigate international regulatory landscapes and collaborate with industry leaders enhances its competitive edge in the biotechnology sector.
Rising Star
 ACM Total Revenue and Product Mix| ACM Research |
ACM Research (ACMR)
Industry
Semiconductors
Overview
ACM Research is a dynamic and innovative leader in the semiconductor equipment industry, specializing in advanced wet processing technologies. Renowned for its unwavering commitment to technological excellence and continuous innovation, ACM Research plays a pivotal role in enabling semiconductor manufacturers to produce smaller, faster, and more efficient chips. This expertise in critical processes like cleaning, etching, and polishing, positions them as a trusted partner for semiconductor companies seeking cutting-edge solutions.
Financials
Gross Margin: 49.53%
Revenue (5-Year): 61.94%
Debt to Equity: 0.12
Cash on Hand: $219.5 Million
Market Cap: $1.145 Billion
Current Stock Price: $19.08
P/S: 2.57
Catalysts
Rapid Advancements in Semiconductor Technology: ACM Research is uniquely positioned to benefit from the relentless pace of advancements in semiconductor technology. As semiconductor manufacturers strive for smaller and more powerful chips, the demand for ACM’s advanced wet processing solutions, crucial for chip fabrication, is surging. This dynamic landscape presents a significant catalyst for the company’s growth.
Growing Global Semiconductor Market: The global semiconductor market is expanding exponentially, driven by the proliferation of electronics in various industries, including 5G technology, artificial intelligence, and electric vehicles. ACM Research, with its innovative and efficient semiconductor equipment, is well-equipped to capitalize on this growth. Their solutions are integral to the semiconductor manufacturing process, making them an indispensable partner for chip makers globally.
Strategic Collaborations and Expanding Product Portfolio: ACM Research’s strategic collaborations and continuous product development are catalysts for their success. Collaborations with leading semiconductor manufacturers and the expansion of their product portfolio into critical processes like wafer-level packaging enhance their competitive advantage. These initiatives not only strengthen existing relationships but also open doors to new opportunities, ensuring ACM’s position as a preferred supplier in the semiconductor industry.
Our Methodology
Quality Compounders
Our first goal as investors is to never lose money. The most effective way to accomplish this is by investing in world-class businesses that are trading below their intrinsic value. A world-class business is financially healthy (i.e. high-profit margins, growing revenue and earnings, as well as little to no debt), has multiple durable competitive advantages, and has a brilliant management team (i.e. ROIC measures how effectively a CEO allocates capital). We strive to buy these businesses below their intrinsic value because it limits the downside risk while improving the upside potential (i.e. think of it like buying a Ferrari at 50% off, then selling it to someone else at full price, risk-free). If one can find these opportunities and their conviction is strong, then one should take full advantage before the rest of the market realizes what they are missing.
Rising Star
Small or early growth companies (i.e. less than $1 billion market cap) may not be profitable or have a durable competitive advantage quite yet, but they still pack a punch. Investing in these businesses is a tricky game, but if you can spot them before they take off, it may be the only investment you ever need to make. To spot a rising star, the business must be financially stable (i.e. high operating margin, growing revenues, little to no debt, and ample cash on hand), have a large addressable market with multiple catalysts, and a highly ambitious and motivated management team that is willing to do whatever it takes to succeed. If you can find early-stage businesses with these characteristics, then you may be on the path to financial freedom quicker than you think.