The alternative asset space is one that’s hard to define. Some investors view companies in private equity, real estate, or digital asset sectors as the best way to invest outside of the traditional system. Though, there are plenty of REITs, crypto-related stocks and other offerings to choose from that are publicly-traded right now.
Quick Read
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SSR Mining (SSRM) trades at 7x forward earnings despite a 230% year-to-date rally driven by surging precious metals prices.
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CleanSpark (CLSK) trades at 12x trailing earnings with positive profitability and is expanding beyond Bitcoin mining into data center compute support.
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Funko (FNKO) trades at 0.2x sales following a brutal selloff tied to tariff risks and licensing challenges.
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Among the alternative assets I’m going to talk about in this piece are the kinds of names I’ve long thought could actually provide increased portfolio diversification (and better risk-adjusted returns over the long-term) at reasonable valuations. These are companies that could be overlooked relative to this diversification potential, and shouldn’t be ignored.
Without further ado, let’s dive in!
SSR Mining (SSRM)
Precious metals companies like SSR Mining (NASDAQ:SSRM) are starting to catch on to some investors as the true value plays they are. Surging precious metals prices have led to absolutely incredible earnings growth for the likes of SSR Mining and its peers, with SSRM stock trading at a forward price-earnings multiple of just 7-times, even after its recent impressive year-to-date rally of 230%.
That’s the kind of solid momentum and forward earnings multiple most investors want to see. SSR Mining still remains healthy and undervalued according to a number of analysts which cover this stock, and I think that view kind of understates the position SSR Mining is in right now.
As a relatively overlooked mid-tier gold miner in a sector many investors think will likely head lower in line with gold prices (we have seen a rather incredible peak of late), those who think gold’s rally is still far from done may have a compelling buying opportunity here.
I’m still bullish on the price of gold long-term, and SSR Mining represents one of the most compelling options in this sector right now, in my view.
CleanSpark (CLSK)
I’m not typically very bullish at all on crypto mining companies, and there’s a solid rationale behind this. From what I’ve read via a number of top white papers on the subject, the mathematical returns for crypto miners over the long-haul is expected to approximate zero, when factoring in the costs associated with hardware and energy to mine top proof-of-work tokens like Bitcoin.
