 Good day fellow investors. For the month of October I would like to recommend three new stocks that I think have all the potential to double in the next 12 months or perhaps even more. Before going on to the stocks just a reminder on this channel we make stock analysis, we discuss macroeconomic trends that lower your risk of investment and increase your returns for better portfolio exposure, portfolio strategies and investment knowledge. So consider subscribing if you like the topics. Let's start with the first stock that I would like to recommend now and that's R-Cup Holding. What does the company do? Leases aircrafts, they have 1549 aircrafts, 200 customers, airlines and the headquarters are in Dublin which is good for the tax rate. Why am I recommending a company that's in the airline sector? Well, you have to look at this. The expected growth in the industry in the next 20 years is at least double and that depends on the scenarios. However, Indian market growth airlines is going to grow fivefold at least. People are not going to travel around in buses or trains anymore. It's a huge market. China is going to grow even the US is almost going to double in the next 20 years. Airlines faster, more and more travel around the world. Now there are a few cases from the International Air Transport Association in case of relaxing regulations allowing more travel we can see the market quadruple in the next 20 years which would be a great thing for R-Cup. However, in the negative scenario where everybody picks up some protectionism which wouldn't be good for anybody so I hope it won't happen, nevertheless the market would still grow which is again a positive for a company that leases planes. So the margin of safety is there in the growth. Let's look at the company. Total shareholders equity is stable, has been growing. However, the number of shares have been declining which means that the buybacks are very efficient. And what I like about buybacks in this case is that they are made at a stock price that's below book value per share. So any buyback is increasing the value for shareholders. Earnings per share are $6.58 per share, price is around 50 so we get the price to earnings ratio of 7.7 which is four times lower than the market. My thesis is that as the market recognizes the business model which is relatively new, airline leasing companies are very new so as the market recognizes the model the environment grows there is more demand for planes. I think that this company will deserve a fair market valuation and slowly the stock price will rise to that valuation. What happened in 2013 everybody was afraid of a slowdown. Aircap acquired international lease finance cooperation so everybody was afraid of too much debt, of too much growth, however it was a very very smart thing to do. So in 2016 you see the dip everybody was afraid that China will enter a recession also didn't happen. The market continues to grow, everything continues to grow except for the stock price which has been growing for the last year and I think it will continue to grow at a steady rate for the next 12 months and we can see easily the stock at 100. Just a quick look at revenues you can see how this is a relatively new sector 2007 till now revenues have quadrupled, earnings per share have tripled and in the last three years they have really aggressively been buying back shares at or below book value. They are still investing hardly so the capex is negative however with the market growth this is expected to bring even more earnings in the future. What I would like to finish here is look at this map from FlightRather. You can see a lot of planes around Europe, East US coast, Japan, however India practically no plane, Africa there is still so much growth, Latin America so much growth and all those areas really benefit from plane you can go around in other things than a plane it's not efficient. So there is huge growth coming from India, China and all those countries international flying so I really expect a much crowded figure in the next 5, 10, 20 years and air cap is a great play to take advantage of the growth in the environment especially as it's extremely cheap now price earnings ratio of 7.7 compared to a 30 price earnings ratio for the SAP 500 so it's four times cheaper than the market that will eventually have to equalize so or air cap quadruples in price or the stock market drops nevertheless the margin of safety is in the book value. The second company I want to recommend is another company that Buffett is buying. Two months ago I recommended Store Capital which was a good buy 10% yield that Buffett was buying. He has invested 500 million in Synchrony Financial so what does the company do they make third-party credit cards credit solutions and give credits to customers so 50 years ago Buffett was buying American Express now he's buying Synchrony Financial different model however Buffett is buying so there must be a margin of safety in it just look at the financial slow growth however stable growth net income stable what's very important about the company is the huge cash flow free cash flow of 7 billion which is almost four times more than net income and that's why Buffett is buying because of the business model he always loves companies that create a lot of cash don't need investments and can reward the shareholder growth metrics are okay loan receivables up 11% net income up 40% purchase volume up 6% average active accounts up 5% and the third-party credit cards have constantly new programs new new partnerships and renewed partnerships the company also announced a new capital plan increasing the dividend and increasing the share repurchase the 1.64 billion share repurchases that's 5% of the company now so that's in addition to the dividend of 2% that's a yield of 7% immediately if you look at the quality metrics we can see that 90 days past due customer credit is about 1.4 billion slightly growing nevertheless look at the funding capital and liquidity it's a 73 billion going back to the 90 days past due 1.4 billion so there is plenty of capital in the 73 billion to cover for that 85 years of history in the company 52 billion in deposit 125 billion of finance sales 72 million active customers so the company is really big and growing look at valuations very low valuations 11.7 price to book 1.7 not a margin of safety there but nevertheless there is a dividend and the company is still growing look at the stock price it IPL in 2014 was very volatile however what I see here is again a low valuation and what I see here is a takeover candidate the huge cash flow will make this company attractive to other companies and therefore we could see a double in value perhaps even Buffett buys the whole company because he will be attracted by the 7 billion free cash flow so again a potential double the third company I want to discuss is a gold miner Ray Dalio said that if you don't own gold you know nothing about economics nor history so gold or end gold miners are an essential hedge to any portfolio and it's a better hedge when you have a great gold miner that is expected to grow no matter what happens in the gold field and that miner is Guyana Goldfields that has a mine in the country of Guyana Guyana is a small country in the northern part of South America is a stable country the last three elections were very stable they have now find oil fields offshore working with Exxon so the company will benefit from political stability so I don't expect any trouble there now Guyana Goldfields has a mine the Aurora mine that's operating has an extremely high gold grade in comparison to other mines around the world in total proven and probable reserves go to 3.5 million ounces multiply that by the price of gold and you've gone to more than four billion in gold the company's market capitalization is below 600 million now what does the company do mine gold it has just started mining gold two years ago so it's a fresh company developing company the guidance is 160 000 ounces of gold at the cash cost of 500 with the only sustaining cost with all the additional mining costs of 800 per ounce the gold price is now around 1300 so there is a margin of 500 in profit the operating profit would be around 80 million for the year divide that by 170 million shares you get to 0.46 per share the stock price is 3.39 for a stable gold miner as the company confirms what it's doing it has been doing very greatly in the last two years is a very very low valuation what happened why is this a buy now well as soon as the company confirmed the grade started mining the mine stock price went up to 7.7 almost and then it started dropping so you can see the straight drop line this is because the market doesn't like volatility and what happened is that in the first two quarters of this year the company mined lower ore grade and they expect an increase in head grade in the second half of the year also all in sustaining costs are expected to be lower in the second half of the year so as soon as the company confirms the higher grades in the second half of the year I expect the stock chart to turn up another point is that the company is expending the mill so they are increasing the mill from 5000 tons per day to 8000 tons per day so that's 60 percent increase in expected production increased in recovery so and they expect that project to complete in the first quarter of 2018 so from 2018 we can expect much higher production the mill expansion is on schedule and on budget so that's good let's see what is the company in detail 16 years of mine life net present value of 850 million that's on a gold price of 1000 per ounce the current gold price is 1300 and the net present value at a higher gold price is around 1.2 1.4 billion so that's double the current market capitalization the mine will be mine through 2024 an open pit then it will go underground so there are 15 years of more expected mine production what you can see is that the costs total cash costs from the mine are expected to be very very low which makes this a very safe investment you can expect cash flows no matter the price of gold here is the complete mine expected life and you can see an average production of around 200 250 up to 300 000 ounces of gold an average of 225 000 ounces per year and I have made here an example of what we can expect from 2018 revenue around 292 292 million coming from 220 000 ounces mine cost of revenue half from the all-in sustaining costs that's gross profit 146 million take off the sales general and administrative expenses take off 20 million from depreciation the interest expect expense they currently have other operating expensive from exploration and we get the total cost and expenses of almost 100 million take off 27.5 percent in taxes and the royalty thus we are at a net income of around 70 million or per share 0.4 0.4 dollars per share for a gold miner with expected production of 15 years is very very low I expect a price earnings ratio of 20 on it and the share should be at around eight dollars not the current price so that's my expectation from the situation as is however as it is a mine let's dig deeper the aurora gold mine has a lot of resource growth potential so they could expand that production for more than 50 years there are also brownfield exploring the zone around we can see here aroma marupa close to the aurora gold mine and there are also 23 meters drilled with almost five grams per ton that's double what is mined now so if they found something new there it could be very profitable and increase the production for the mine then their mine isn't mining district they have more licenses to drill so they could find the new mine as they have found this one they have a sulfur rose it's their target and the grades there also show that it could be a new mine in development so if they develop another mine then you can expect a double in stock pricing from 8 to 16 even more if gold prices increase then we are at 50 or more so it's huge huge potential and the margin of safety is in the low cost mining to conclude if you want a margin of safety investment then it's better to invest with set clarman and the biggest owner of the company is the baupost group set clarman's hedge fund i think this month we have very very great stock picks and let's finish with the comparison of where do these stocks fit in our investment table giana goldfields comes at the top as the potential upside is very high and the margin of safety is also very high because the gold is there just has to be mined good jurisdiction growth is expected so very very interesting gold play even better than amira then rcap and synchro financial are good companies however a little bit worse on our table nevertheless there is a margin of safety the companies are stable the risks are their double recession or us recession the risk for giana is low gold prices nevertheless i think there's a really really good investments especially for a well diversified portfolio thank you for watching don't forget to click like subscribe for support and i'll see you in the next video