The alternative asset space is difficult to define. Some investors consider companies in the private equity, real estate or digital assets sectors to be the best way to invest outside the traditional system. However, there are plenty of REITs, cryptocurrency-related stocks, and other offerings to choose from that are publicly traded right now.
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SSR Mining (SSRM) trades at 7x forward earnings despite a 230% year-to-date rally driven by rising 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 computing support.
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Funko (FNKO) trades at 0.2 times sales following a brutal sell-off linked to tariff risks and licensing challenges.
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Among the alternative assets I’m going to talk about in this article are the types of names that I’ve long thought could provide greater portfolio diversification (and better long-term risk-adjusted returns) at reasonable valuations. These are companies that could be overlooked for this diversification potential and should not be ignored.
Without further ado, let’s dive in!
Precious metal companies such as RSS Mining (NASDAQ:SSRM) are starting to catch the attention of some investors as they represent true value. Rising precious metals prices have led to absolutely incredible earnings growth for companies like SSR Mining and its peers, with SSRM stock trading at a forward price-to-earnings multiple of just 7x, even after its recent impressive 230% rally so far this year.
That’s the kind of solid momentum and future earnings multiples most investors want to see. SSR Mining is still healthy and undervalued according to several analysts who cover this stock, and I think that opinion understates the position SSR Mining is in right now.
As a relatively overlooked mid-tier gold miner in a sector that many investors believe will likely fall in line with gold prices (we’ve seen a pretty incredible spike lately), those who think the gold rally is still far from over may have a compelling buying opportunity here.
I remain bullish on the long-term gold price and, in my opinion, SSR Mining represents one of the most attractive options in this sector at the moment.
I am generally not very bullish on crypto mining companies, and there is a solid reason behind this. From what I’ve read in several of the leading whitepapers on the subject, mathematical returns for long-term crypto miners are expected to approach zero, when taking into account the costs associated with the hardware and energy to mine major proof-of-work tokens like Bitcoin.