Is Frontier Digital Ventures (ASX: FDV) Motley Fool’s #1 X-Factor Stock For Tomorrow?

Today, I was sent this marketing mail by a friend, who suggested that Frontier Digital Ventures (ASX: FDV) is Motley Fool’s #1 X-Factor Stock for 2021. This stock will be announced tomorrow.

Could It Be Frontier Digital Ventures (ASX: FDV)?

This is absolutely not advice and is purely entertainment. I do not know if my suspicions are correct but I have bought shares in FDV which I intend to start selling tomorrow, whether or not Motley Fool recommend the stock.

In October, FDV reported a maiden quarterly profit at a portfolio level in 3Q 2020, with FDV achieving an EBITDA
margin of +6% on an FDV ownership basis. It also reported that 3Q 2020 revenue on an FDV ownership basis of A$5.0m, up 55% on 2Q 2020 as the operating companies rebound despite the COVID-19 headwinds.

Now, the Motley Fool marketing claims that sales soared 55% q-o-q in Q1, FY 2021. As it happens, FDV uses a calendar year, with the quarter to September (usually Q1) actually being Q3 for it. Technically they may have chosen to use Aussie FY to avoid making the pick so obvious.

But FDV does have operations in a number of underdeveloped countries, as shown below:

And it did record a “maiden quarterly profit at a portfolio level”.

So I think it is likely that the Motley Fool number 1 X-Factor share to buy in 2021 is Frontier Digital Ventures (ASX: FDV).

This is not advice. These are investment notes of mine; not a recommendation. I could have made mistakes in the notes; and I still have many loose ends to explore. I have just bought shares in FDV. Please read our detailed disclaimer.


As you can see, this prediction proved correct, with the share price rising from ~$1.60 when this piece was published to around ~$1.80 the very next day.

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