I have been tweeting about the intense divergence between individual stocks and the broader indexes. What I mean is, while the S&P 500 might be up 8% over the last year, the average stock is doing a lot worse than that. I mean, a lot worse. There are hundreds, wait actually thousands, of stocks that have been totally thrashed, smashed, and crashed.

2000+ stocks that are down 40% of more in the last 12 months.

Several hundreds stocks that are down 75% or more over the last 12 months.

Complete destruction!

And so that got me thinking, as someone who likes to trade: where’s the opportunity? I created a list of stocks that I personally went through and made my own watchlist for. I am calling it “Stef’s Super Spicy 25” because the list is hot, tasty, but also dangerous. Hot peppers make your food taste great, but have too much or the wrong one and you might get burned bad. This list is the same. The parameters for selection were pretty simple: down 60% or more over the last 12 months, a recognizable brand, a balance sheet that’s sturdy, and the potential to flip the switch on free cash flow.

🚨 REMINDER 🚨
I am not saying to buy any of these stocks. What I am saying is they are down 60% or more in the last 12 months and have potential to them. You have to do your own research to learn more.

👉 Oh, one more thing, you can follow this list here.

LegalZoom – LZ

Bandwidth – BAND

GAP – GPS

Penn Gaming – PENN

Nerd Wallet – NRDS

Expensify – EXFY

Redfin – RDFN

23 and Me – ME

Everbridge – EVBG

Stone – STNE

Purple – PRPL

Kaleyra – KLR

Invitae – NVTA

Allbirds – BIRD

Vimeo – VMEO

Pacific Biosciences – PACB

Canopy Growth – CGC

Fastly – FSLY

Fiverr – FVRR

Toast – TOST

Vroom – VRM

Wix – WIX

Beyond Meat – BYND

Zoom – ZM

Zillow – ZG

Desktop Metal – DM

FINAL NOTE! ☝️
Keep in mind this is also a first draft list. At first glance, I am missing some energy plays, so I would like to change that in the coming days or weeks. I’ll get there. But for now, the brainstorm begins.

P.S.

Consider this list open source. I’ll have some updates coming that makes it more fun for everyone. Details coming soon.