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SMALL CAP INVESTING
Recorded: May 27, 2025 Duration: 1:27:11Space Recording
Short Summary
The discussion highlights a bullish market sentiment driven by strong economic indicators, emerging trends in AI and technology, and strategic partnerships in sectors like defense and energy. Panelists express optimism about growth opportunities while emphasizing the importance of selective investment in high-quality stocks.
Full Transcription
Thank you. What is up everyone? Happy Tuesday, which is weird to say on the small cap show, but hey,
yesterday a little holiday. Hope everyone had a great long weekend and we weren't going to
miss out on the small cap show. So we got with the crew and the whole crew said, yes,
let's keep it going. Let's run it on Tuesday at 1 p.m. Eastern instead of Monday. So we're
not going to skip anything. We're going to keep it going here.
What a great show this has been.
I just have to say as more of a neutral front row seat type of view that I have here.
It's been an absolute fantastic.
A big shout out to the whole crew.
You see them joining us up here.
And I'm not going to delay this any farther.
Just got closed out on our Tesla space that we host every Tuesday
and jumped over here as quick as I could to get this open. And with no further delay, Ben, I'm
going to kick it over to you to go ahead and kick us off. Okay, great. I mean, from a market
sentiment or macro point of view, everything is looking great. You know, I've been pretty bullish
since we broke above the 200 DMA on the SPY QQQ, which happened as a result of that
90-day pause with China and that 10% reciprocal tariff rate. And ever since then, I've been saying
that that 200 DMA is a demarcation line between bull and bear market, between sentiments that
we're going to come out of this
great and sentiments that, oh, we may have recession or stagflation. So as long as we're
above the 200 DMA, and we've seen this, even if the market has a down day or some scare or
something like that, it's not like a one-to-one correlation where everything goes down with the
market. There's been stability underneath, and that's been my whole thesis. Once you're above the 200 DMA, stocks can trade on their individual own merits,
on their individual catalysts, and it's not like you have to watch the macro
because the stocks, no matter what the news is, it just moves with the spike.
So we're out of that dynamic, and we're into a better dynamic now.
There was a little bit of a scare Friday and I
should have been you know strictly adhering to what I just told you but on Friday I got cold
feet with trading and moving in on some good individual stocks with catalyst because of that
Europe news I'm like oh here we go again and you know now we might go below the 200 DMA. So let me try to anticipate that that possibility.
So Friday, you know, tricked me a little bit. So made out, OK, still beat the markets.
But, you know, what we found out after that whole episode Friday, if there was any doubt about the Trump put being in, there is no doubt now.
The Trump put is underneath this market. And, you know, whether that's because Trump will come in and save or boost the markets
when needed or whether that's because there's a positive seems to now be a positive outcome
every time Trump gets really tough.
Right.
So I don't maybe that's not called a Trump put, but basically it's a buy the bad news
scenario.
Right.
You know, Trump gets really tough on some country,
and there's a equal and opposite reaction, right? Europe comes out and says, Oh, okay.
You know, Trump said they're slow walking things. And Europe comes you, you comes out and said,
All right, let's fast track things and get this done by July 9. So again, whether it's the Trump
put, or whether it's just maybe what Trump is doing is working at this point, you know,
he talks tough, things go down, they go right back up.
So, you know, as long as they're above the 200-day moving average,
I think I've learned my lesson.
I've got to take that very literally,
and I think that's how the market's going to play it.
The market's going to be, we're in a bull market as long as they're above the 200 DMA,
so you can be a little more aggressive on the small caps, on the gross names,
on the meme stocks, on the risk assets, especially when there's a catalyst and the right setup, catalyst, sentiment, fundamentals and technicals, everything I look for as we're watching Tesla break 361 crazy.
So, yeah, that's my take on the macro and the overall kind of environment for small cap investing right now.
Beautiful. Thanks for kicking us off there. Money Mark, let's go over your direction next.
What's your macro kind of bigger picture thoughts here?
Yeah, I mean, we're looking good. The economic numbers are still coming in good. The soft data
is weak. So we got to be careful, you know, as we go into the back half of the year, but that's the back half of the year.
We're here right now.
I remain in light yellow alert, which is basically means be picky.
It's the next shade next to green.
So we're just about in a green alert.
But the difference is there's a Trump put, but I think there's also a Trump call, right? And what I mean by that is
when Trump came into office, he seemed willing to sacrifice the stock market, at least to some
extent, to get his policies put across. So, you know, we had the tariff tantrum, stock market dropped, and he didn't care. And then it dropped more, and he didn't care. And then it got to a certain level, and he's like, you know what, I think I care, right? And the Trump put came about.
Now, what happens last week? Putting the tariffs on Europe, utilizing the fact that the stock market is strong again and say, OK, the market's strong.
Now let's try something else. So that's kind of a Trump call as opposed to a Trump put.
And until we see him really comfortable with what he's accomplished, you have to be a little careful from that perspective.
what he's accomplished, you have to be a little careful from that perspective, right? But listen,
that's not holding me back. I'm still finding great picks out there. We've been talking about
defense and gold as two of the areas to really make money while still being on defense. And guess
what? Defense and gold are two of the top five performing sectors of the year, both in the double digit
positives. The individual stocks I've provided there, we'll talk about later, but those are up
like 50% year to date, some of them. And then we've got AI, right? So having been a technology
analyst during the internet bubble back in the nineties, this is old hat for me. So we've been
picking names, derivative names on AI, not the mainstream names.
Of course, NVIDIA was a pick that I was on for a couple of years.
Got out of that on January 3rd. But since then, still picking other names.
Again, we'll talk about that in the individual name segment of the broadcast.
But you guys all know TSSI, of course. And so, hey, just be careful, right? Be picky.
Don't settle for less. Just take elite risk reward bets. And it should work out because I think the
market's still going to remain healthy for a while. But you got to be careful because of all
the different things that can happen from a macro perspective. You never know what Trump's going to do next. And that's not a negative comment. It's just a fact. By the way, Mark, I'm sure you
remember this. That was Trump's MO in 2016 as well. In his first term, it was just so obvious.
Every time the market really pumped, that's when he came in and did the China tariff stuff,
you know, to a much lesser extent. I don't know, it was like 10% he was going for back then or whatever it was.
Yep.
But that's been his MO.
So it's not a surprise to see that.
Yeah, and that in 2016 was a really volatile year.
It was a great year, right?
The market was up in 2016.
I know at least the Russell 2000 was, I think, up 24% that year.
But it had a lot of ups and downs involved. So yeah, you're dead on, Ben.
Kyle, what's your thoughts around the market and where we're at today and
what's developed, I guess, since the last time we spoke?
Well, I was in Hawaii for a week, so I missed out. No, I'm just kidding. Obviously, the market has-
So sorry for you. We just all hate that you had to miss the market to go to Hawaii.
Yeah, it was tough actually to track the time difference, but that's besides the point.
Obviously, the market's been doing pretty well over the last couple of weeks. I think consumer
It's been doing pretty well over the last couple of weeks.
I think consumer sentiment has jumped since the U.S.-China trade truce a couple of weeks
ago.
But with all that being said, I'm kind of with Mark.
I would be optimistically cautious, right, because we don't necessarily really know where
this administration is going to go next.
And then also, I just saw today that I think
it was from Apollo, that the shipping data is still showing fairly weak overall. And businesses
don't necessarily know how to react. So I think that uncertainty could play out over the next
couple of months. So I think I would lean a little bit towards where MoneyMark
was saying, hey, you know, there are pockets of the market that you can do very well, but I would
still be overall pretty cautious. I think going forward, right, there's a few names that don't
necessarily have a ton of impact to tariffs. And I actually do have a couple I can share later, but
I would still just be careful because the data is still showing that businesses aren't full steam ahead.
And there is a little bit of caution still in the market, especially with some of these names.
I have heard that that Hawaii trading schedule is actually pretty rough.
hawaii trading schedule is actually pretty rough a friend of mine goes out there fairly often for
family and awake at weird hours trying to trade and taking naps during the day and stuff it's
it's uh probably the only downside i guess i would say kyle but six hours back from eastern um so it
was very very early in the morning when i was waking up to check the market so wait what pre-market trading starts when you go to sleep at midnight or something.
That's wild.
It's just wild to think about.
But Kyle, appreciate those thoughts.
Let's continue around the panel here a little bit.
Dougie Fresh, let's go your direction next.
How is everybody?
I hope you all had a great Memorial Day weekend.
And yeah, market's pumping right now.
Spies up $11.
It's a 590.
So it's cruising along.
And I'm not going to lie, Ben, the market confused the hell out of me last week, too.
I had to step away from it because the days I thought it was going to start ripping and
curling back up, it pulled back a little bit more.
But we're on point now.
And you could see it wanted to go up.
It just had that pullback last week and not a big
deal you caught a good opportunity and there are plenty of great opportunities in this market have
to love it the only thing we're watching for right now is you have to make sure that it despire around
594 has some good resistance is it going to curl up and go right through into the top or is it going
to bounce around a little bit i'm not sure but it isn't that bullish uh trend right there like it wants to get ripping and trump he does have it
like we've been saying he can snap his fingers move the market the way he wants to we just have
to be careful because they're going towards the top once they get into the top and they keep they
may bounce off that top line a couple times and then keep going back up with all kinds of crazy news.
And so you just have to be careful of that because you can catch some good dips like
we saw on Friday and then they get ripping right back up.
So that's what it looks like at the moment.
But it does look like it wants to roll off the MACD, the SPY, continue its way up towards
the top.
I thought so last week, but it decided to stall out a little bit,
and now it's doing it. And like I said, it's going up pretty good right at the moment. So
I would have to say it wants to continue its way up. It should be an interesting week as they start
to roll off the MACD and get into that top area and Bitcoin and crypto. That's all been cruising
too. So markets, you can't say look bad. They were great opportunities when they dipped way down there. And, uh, and like you said, I think it
was money. Mark said, you know, it got to a certain area right there. And Trump was like,
all right, now I actually care about the market. And ever since that time, like I said,
he never let it get down lower than that April 7th date. And the, uh, spy got down to what,
It got down lower than that April 7th date, and the SPY got down to, what, 481, and that was about as low as you saw it.
And then he just started to rip it up there.
Now it's almost back to where it was at the all-time highs.
And, like, I thought it was going to get up there, so we'll see if it gets all the way up there.
But there is a dip eminent.
It's just a matter of how much it's going to pull back.
So, like everyone else is saying, you just have to be cautious, but great opportunities.
And it's really nice when the market's moving around like this, you can catch some really good swings.
So we'll look at some other ones, some stocks in a little bit.
But thank you.
And that's what I see in the market.
Appreciate those thoughts, Dougie Fresh. Godfather, come over to you next, please, sir.
Yeah. Hey, everybody. So I guess I got to echo a few of the thoughts that some of the other panelists have outlined. As much as I know Ben looks at this 200-day demarcation point, and I think that's
obviously well looked at by the rest of the market, I'm looking at it from the standpoint of
rates. And the real key thing is that above four and a half on the 10- year, it becomes a bit of a headwind for the market.
At 475, it's, you know, very difficult for upside.
And at five, I really think, you know, the foot is on the neck of the market.
So here we are under four and a half today and the market's ripping.
And that's the primary reason.
I'm sure you guys saw the headlines. Essentially,
you know, if the funding that the Japanese authorities have signaled in terms of, you know, lowering their bond supply, you know, does push some folks into the Treasury complex. And that
seems to be what people are keying off of today. You know, it could boost demand. And therefore, we're seeing positive
rate effect or yield effect for US Treasury or US tenure. But the realities are this,
the US still needs to borrow $22 trillion over the next 10 years. And if you add in the tax cuts
from the big, beautiful bill, you can add another $5 trillion to that. So you never
want to underestimate the bond vigilantes. For the day, the bond market is sending positive signals
to risk assets, and we're rallying as a result of that. But I think it's going to be fairly
difficult to have a lot of downward pressure on this U.S. term premium. So, you know,
that said, I echo Kyle's remarks because, you know, I am optimistically or cautiously optimistic,
if you will. The things I'm watching closely this week in this regard are the two, five and seven year debt options.
I think they matter more than the economic data that we're going to see.
I know we're getting Federal Reserve minutes.
We're getting some economic growth numbers in terms of GDP on Thursday.
And we're getting some inflation data and we're getting some jobs data.
But it's payrolls.
The biggie, of course, comes on June 6th,
which is non-farm payrolls. So look, this wall of worry that's in the market continues to get
climbed. I mean, it's amazing to me. The market just shrugged off. When I say the market, I'm
talking about the bond market and how that plays into the returns we've seen here in
equity. It shrugged off the Moody's rating. It shrugged off the passing of the tax bill,
at least through the House, increasing of the federal debt limit by $4 trillion. All of this,
it just continues to climb this wall. If you look at where the big players in the market are focused in terms of their
attention, what they're paying the most attention to, trade policy is still number one. And of
course, you're seeing that in the markets today with the favorable headlines regarding the EU.
After that, it's U.S. growth. And then thirdly, it's budget deficit. So despite all of the stuff
that's not particularly positive to U.S. growth or particularly positive to the budget deficit, the market continues to grind higher.
I added to, you know, a bullish market sentiment shift through SOXL today, just keying off of this recent weakness that we've seen in the semis
and going into what I think has got to be a decent report for NVIDIA. Of course,
this matters more than even the auctions I mentioned. The consensus from the analyst
community tends to be that we're basically at 0% year-to-date gains on NVIDIA, so the risk-reward is
relatively positive in light of the fact that China has
been somewhat de-risked and there are legs to growth in the second half. So I think that that
backdrop, as long as all of those things stay intact, we stay over this 200 day, we stay under and a half percent on 10 years. There are, you know, bullish macro things in place that will
permit selective, and I do say selective, small cap alpha pursuits. And, you know, there are
certain areas that I favor over others. You know, you've heard me pound the table on financials and, you
know, we're seeing all the drivers in place to see continued steepening of this yield curve.
It sort of changes by the day, whether that's a bull steeper or a bear steepener, but nonetheless,
it's steepening and you can see it. Just look at the fintech names today. They're just, you know,
they're on fire. Gold for, you know, obvious reasons. I echo Money Mark. The big drivers there, of course, are
the U.S. dollar, which continues to drive lower here. And oil prices, the biggest cost input,
which, you know, also isn't going higher anytime soon, it seems. And then tech. I do think that
that, you know, this has been, you know, AI continues to be the biggest macro theme in the market.
And I do not see that going anywhere.
So, you know, to the extent that there are plays and second derivative to that, like all the power plays, nuclear, I'm actually, you know, I'm amazed that this run has gone as far as it has.
But, you know, we all know the big drivers there. We've got, you know, a tripling of energy capacity around the world in the next essentially 25 years, I think, you know, to 2050 is where that call comes into play.
So there's going to be a lot of upward pressure in terms of nuclear fuel, in terms of SMR demand and so on.
But, wow, I'm surprised that we haven't seen a reset yet. Look, it's an
important week here to focus on in terms of earnings. I know the number of companies is
down significantly, but there's still some biggies. In video, we talked about Okta, CRM, Dell,
Marvell, Zscaler. These are all going to provide some decent insights into what have been some of the key drivers in this market, like cybersecurity, like AI hardware, etc.
So, you know, it's going to be an important earnings rollout to pay attention to this week.
So that's where I'm at from the macro.
Appreciate that, Godfather. Maj, great to have you at from the macro.
Appreciate that, Godfather.
Maj, great to have you back on the space.
What thoughts do you have around macro and big picture here?
Hey, man, thanks a lot for having me on again.
Well, as you know me, guys, I don't really follow macro too much, so I don't have any, I don't think, any great opinions on that.
But I do like to kind of navigate the macro environment to some degree and looking at companies a little differently or changing my strategy a little differently, you know, depending on the risk out there.
If the macro environment is like causing volatility like it is now.
I mean, it's like causing volatility like it is now.
So really, I still think I use this opportunity over the last three months to have me look at my portfolio and just these resets help you kind of rethink your portfolio and get rid of some of your maybe your flyer bets and cost you more on quality.
So I'm really doing that.
I'm continuing to bear down on quality as I I've talked about in other states events with you guys.
And really what I'm doing now
is because there's this uncertainty in the macro environment,
I don't know which way it's going to go.
And Trump's the wild card here, and Mark talked about that.
I think really it's picky is the key word.
I think Kyle and Mark echoed that too.
I'm just a lot more picky right now in this market.
So I'm trying to find companies that I can kind of hedge my not knowing where the macro is going to go by buying these companies that I think of, A, are a certain quality.
And B, through reading transcripts and press releases are preparing for different type of macro environments that I'm willing to invest in. And
then C is looking at really nice trends in the market, whether it's data center trends, for
example. As you know, we're high on that. So on the quality side, I'm really looking for these
value trap kind of companies, stock selling at very low PE ratios, near cash per share,
tangible value, that are hitting some inflection points
and really having some good experience with that right now.
And we'll talk about one of them later on when we talk about our stock ideas.
And that kind of de-risks my not knowing where Macro is going to go.
At least I have some downside protection in some of these companies.
and I have about like 600 of these companies I'm going through right now,
And I have about like 600 of these companies I'm going through right now, one by one,
one by one with my team,
looking at them to see if I can find 15 or 20 that are hitting some new,
you know,
growth inflection points regardless of what's happening on with the macro.
You know,
then trend wise,
obviously I'm just really honed in on the data center theme because I think
that's going to survive,
you know,
however this macro kind of environment turns out to be here.
And, you know, we have TSI.
So we had, we created this data center screen.
And as you know, TSI was there.
TGEN was big win, 600%.
Now PSIX, 220%.
And we're continuing to go down that.
I have one I'm looking at now.
I'm going to do a site visit.
And I'll hopefully have a report on that next time we talk in our space event.
But that should be really interesting.
And then I'm looking at these companies that are falling for the wrong reasons where the market's hitting them because they think they have exposure to either doge cuts or the macro, and they really don't.
Actually, some of these stocks that are going down are going to benefit from what's going on.
That's kind of how I'm navigating the markets, guys.
And being less on margin, I got totally off margin
during this move.
I believe I have a little bit of cash now, which is nice.
And I'm making higher convection bets right now
versus more as when I'm in the bull market, I don't mind being diversified because everything goes up.
But now I'm trying to be a little more concentrated with my money and take bigger bets on some stocks I like because a diversified portfolio might not work as well.
So I hope that sheds some light, man, on where I'm going with things right now. Thanks.
Beautiful. Appreciate the thoughts there.
And last but not least, Mr. Spartan, we'll get your general thoughts around market kind of bigger
picture, and then we'll kind of dive into some of the picks. Yeah, sounds good. So, you know,
I've been pretty bullish on the market for a bit of time here, and I get a lot of it hasn't really
changed. And, you know, of it hasn't really changed.
And the main sectors I'm really looking at,
I mean, anything from the tech side of things that has a decent or a lower PE ratio
that's came into valuation points
where it's not that expensive to earnings,
I think there's still a lot to be done there.
Mainly the semiconductors is the main sector I like.
And if I could close my eyes and not look at the market for the next 12 months, that's probably a sector I'd still want to be in.
Because that demand is going to continue to increase as, you know, just naturally as we move forward.
And towards, I guess, kind of some of these big, big changes that are going to be happening with, you know, AI, Taun, and Striving, we're going to have a lot more, you know, the robotics and the AI robotics is going to be a big theme going forward.
And I think that sector or those sectors in general are just going to continue to drive, you know, that pick and axe theory that we've had on the semiconductors for quite some time.
You look at the dailies on them, all of our flagging, all of our set up for continuation.
I think the market today showed you just how strong it was.
You know, it seems like, you know, the news with the tariffs is kind of, you know, whatever news, right?
People are calling it a fake win, doesn't really matter.
It had a lot of people offside in terms of how they were managing their positions.
And it's going to be causing a continued squeeze.
And we've seen that continued squeeze today.
I think we're probably going to be able to break through that range,
the recent range high and continue to go higher.
So I think this caught a lot of people off guard.
I think going forward, you know, the tariff situation,
everything is a negotiation tactic.
And, you know, they're watching the market clearly,
and they're going to make sure that whatever they do,
they're going to, you know, change, and they'll be active clearly to support continued bullishness in the market and trying to get that bond market down as well.
That's going to be an issue going forward for sure.
We've got to keep an eye on the 10, the 20, and the 30.
But when it comes to the stock market, I think you just kind of right now follow the trends for the most part.
That's what I do.
I'm a technical trader and I always have been.
I take into account, you know, the tech or the macros, you know, when the events are happening, etc.
Because obviously you could trade off of them.
But the technicals don't steer you wrong.
Price doesn't lie.
It tells you the right direction to be on.
And I don't think you want to fight it.
So, you know, I'm trying to take the simplistic approach here.
Trend is still up.
Trend still looks good.
We are flagging to the upside.
We'll see if we can confirm today.
Semiconductor is probably the best-looking sector with the most
and the best risk-reward skewed in your favor at the moment.
But with that being said, I'll be watching cloud-based.
I'll be watching cybersecurity and some other of these tech names.
Mag7 is kind of hard for me to get behind right here.
I just think the betas on them are too low
compared to some of these other names.
So I think you probably would want to stay away from those.
And then the higher beta tech
is something that I would certainly look at this week.
Again, there's a lot of earnings reporting.
But if you look at names like, I think, PayPal,
let's call it Roblox, Roku, those types of names have a lot better and higher skewed risk rewards.
And most of them are breaking out.
So I think you can find some really good opportunity in the kind of, we'll call them mid-cap to big-cap tech going forward. So we're pretty bullish until things change,
and I'll just kind of stay on the side of the trend
and try to find the names with the highest skewter score.
I think there's quite a bit of opportunity out there.
So that's what my overall thoughts are at the moment.
Beautiful.
I love it when the crew kind of paints what they're seeing on the bigger picture.
Now I want to know, what are we looking at? What
themes are we trading? What names are interesting out there, developments? Anything that you guys
have called out in the past, feel free to give us an update or follow up on any of that. And then,
of course, any new ideas or what's on your radar for now? Ben, we'll start with you.
Okay, great. I have a few ideas.
You've probably heard some of these before that are not quite small caps.
Actually, one of them technically is.
PBI still qualifies under $2 billion.
And the other two are also kind of low billions.
I'm having a hard time finding, you know, like, I don't know, stocks in the under $300 million kind of range.
I know MoneyMark has a lot of them, and I think he's going to be mentioning one that I do support and I got in recently.
So stay tuned for that.
I'll let him talk about that smaller cap name.
But as far as these names, let me start with PBI.
PBI is actually my largest position now across my net worth. I have many different accounts and they add it all up. PBI to me is one of the best risk rewards on the market with the speed that they're deleveraging is absolutely astonishing.
They keep coming out at this point like once a month coming out and saying, oh,
our cash flow is even higher than we last got.
It's like I'm not even exaggerating.
Go back and look at it.
They probably upped their cash flow guidance like three times in the past five or six months.
It's ridiculous.
And they're deleveraging so fast.
This PBI, I have a price target of like mid to high teens on it.
And it's in my short-term account and my long-term account.
And in the immediacy, I think I wouldn't be surprised to see this at 1093 tomorrow.
You can see the gap in the chart there from last, I guess it was Thursday morning,
when they announced the latest news that they're going to be reaching
certain cash flow metrics that they need to reach
one quarter earlier than they previously got it for,
which they just got it for like a month ago.
So like one month, they're like, all right,
we're reaching that metric three months earlier now.
And that metric allows them to be more flexible
with their cash buyback.
And also they're accelerating their cash buy.
It's ridiculous.
I mean, this is the best. Like if I was worth like 10 million bucks I'd put 5 million
bucks in there and go on a one-year vacation like honestly so it's my
largest position I think there's immediate upside in this thing to $10.93
cents and then a swing to like you know fun based on fundamentals like 15 to 18
dollars something like that so that's PBI.
Now, two other names I'm looking at, which, again, it's like, I don't know if it's just I've started gravitating towards larger caps or I'm just, like, having a hard time finding
small cap names.
So here we go.
A little bit bigger.
All right.
WeRide.
WeRide, $3 billion market cap.
This is going to be probably going to win me the competition.
And if you looked at the spreadsheet tonight on the weekly competition, that was one of my picks.
Normally, I would not do Chinese stocks at all.
But they have the blessing of Uber.
And, you know, in terms of autonomous driving RoboTaxies and another catalyst out this morning, expanding to Saudi Arabia with Uber.
Another catalyst out this morning, expanding to Saudi Arabia with Uber.
And the chart just looks really constructive, especially today.
We're above the 50 DMA, and this thing has been—actually, no, it's fighting the 50 DMA right now.
10.58 is a 50 DMA. It went above it earlier today.
You close above that 50 DMA, and then you look at their peer, Pony,
that has just absolutely exploded above its key moving averages over the past month,
this one may just be starting to play catch-up.
So, you know, not your typical kind of small-cap value play, but there's a sentiment in here.
There's catalysts.
There's the Uber kind of validation, which makes this investable for me as far as the Chinese name.
So WeRide, that's your second one, PBI, WeRide.
If we have time, I have one more for you on the back end, but let's go around.
Money Mark.
Yes, sir.
So sticking with the themes, the best themes out there for the year remain gold, defense, and AI.
So I'm going to quickly go through the first two, and I want to spend a little bit more time on the AI. On the gold side, again, G-E-O-D-F, G-E-O-D-F. That's Geodrill on the gold side again g e o d f g e o d f that's geodrill on the gold side they just put up
12 cents in q1 they have more drills now than they had in q1 so i'm confident they're going to put up
a bigger number in q2 that's a 50 cent run rate the The stock's trading for 262. And as a result of that,
now that's up quite a bit from where it was. And they were going through some turmoil,
self-inflicted, by the way. It wasn't a bad thing. They were making a transition,
trying to improve the quality of their customers, the geographic locations of their drills,
et cetera, et cetera. And so they had to shut some drills down for a few quarters and it killed the stock.
That was dumb.
Stock got down the ones.
I told people this is like the fattest pitch you'll ever see.
And the stock's been moving up ever since.
It remains steadily moving up in a channel.
I'm sure Dougie Fresh can give us some info on that.
But the fact of the matter is their fundamentals are moving even faster than their stock to
the point where we've got a $2.62 stock on a 50 cent run rate, both in US dollars on
GEODF.
And then, of course, GDXJ, the godfather said it.
Gold is up.
Oil is down.
He doesn't see either of those things changing.
That makes sense if you
look at the charts gold has momentum to the upside oil has broken down out of a channel
that i was in a trading range and that portends more downside for oil that's the best situation
for gold miners so gdxj is the junior miners et. That's been a big winner for me this year.
And as far as, you know, I mean, gold keeps going up and their biggest expense, oil, keeps going down.
It's only going to keep getting better for them.
On the defense side, you've got Kraken, KR, KNF, and Drone Shield, DRSHF.
I've talked about before in the past.
Kraken provides the batteries to Anduril, which is, I've been saying for several quarters
now is the Tesla of defense.
And now a lot of people know about Anduril IPO coming.
Stay tuned.
Kraken supplies the batteries to them.
And DroneShield does exactly what the name implies.
You know, With all these drone
attacks happening around the world, they've now collected enough contracts for 2025. Here it is,
only May, enough contracts for 2025 to beat Wall Street expectations. Wall Street hasn't raised
their numbers. I don't know why, because the number is 95, and they have over 95 million of business booked for this year's recognition.
order for submarines this morning. That means TPCS is going to get a follow-on order as well,
because they are the sole source for certain parts into the same submarine programs that GHM
is in. Okay. So that's golden defense. Let's go to AI. This is my specialty. This is where I cut
my teeth back in the nineties. And NVIDIA, my contacts are telling me NVIDIA is basically sold out for the rest of the year.
Like as many chips as they can make, they're going to sell. Okay. So if you're asking yourself,
are they going to make their numbers this week? The only question you have to ask is whether or
not they produced enough chips to make their numbers.
OK, and what I'm hearing is production has ramped up very nicely on Blackwell.
OK, they had a little bit of a delay. You know, they had that hiccup last quarter as far as that goes.
I'm hearing it's full guns now going into Q2 as well.
Q2 as well. And the derivative play on that, all those chips being produced that were produced in
Q1 that flows through the supply chain into Q2 and maybe even spills over a little bit into Q3.
And that means good things for TSSI. I know you guys know this name. I actually have to step
aside a little bit because I was going on vacation and I don't like to put investors in
front of names unless I know what's going on. My contacts are telling me they're ramping up
their facility right now, a new facility that's 2x bigger than what it used to be.
And their number one partner, Dell, whose number one partner is NVIDIA, Dell is sold out into 2026. They cannot take orders. They
turned down an order. I heard from the largest bricks and mortar retail company in America. You
can guess who they are, a monster order. They had to turn it down because they are booked solid,
right? And then Elon Musk last week comes on CNBC and says, we're putting a million chips
in our new facility. That's an upping of guidance that he had provided before. He was supposed to
have a million total, but this is going to be a million just for the new facility, bringing the
grand total to 1.2 million. This is going to be all the business TSSI can handle through the end of the year as long as the chips are available.
So much so that Supermicro was brought back.
I was the one that told you all to short them.
Now, Supermicro is being brought into these deals after getting kicked out of the deal because there's so much demand for it.
Now, like I said, I like derivative plays on AI.
So here's my new pick.
Revealed it on Friday.
Ben can follow up with what he sees on the charts there and what he believes.
But it is called IntelliCheck.
I-D-N is the symbol on that one.
These guys, what's happening right now in AI is fraud is going through the freaking roof you've got amazon announced last week that
they had an 86 million dollar heist people from armenia no offense to armenians posing as truck
drivers were able to use fraud identity theft, to pose as legitimate truck drivers, got the truckloads
of Amazon product, and then just drove off into the sunset and it disappeared.
Believe it or not, this is actually a common problem. That's a high profile example,
but it is happening. On the internet, same thing. eBay, Facebook with their marketplace,
it's a lot easier now with AI using deep fake technology to replicate IDs, to steal identities,
and verification of online licenses and stuff stuff like that very difficult but guess what
idn is the only company in the industry with a proprietary database built over the course of 20
years due to their relationships with the am um aamva and the dmv you guys all know the DMV, where they help them out in basically the technology that goes into driver's license.
So when you have your driver's license and you look at it, it's not just the barcode on the back.
It's not just the laminate, it's holograms.
There's microprinting.
There's UV patterns.
There's watermarks.
There's security threads.
There's optically variable ink that changes color when you use it at different angles.
There's laser engraving.
There's ghost images.
And all those things make a license legit.
All those things make a license legit.
But over the internet, there's only one company that can identify which licenses have those things and those that do not properly.
And it's IDN.
And it's starting to show in their results.
They made 30% more per transaction in the most recent quarter.
They made 30% more per transaction in the most recent quarter.
They have a $20 million base of revenue right now that they can now start monetizing at
more than 30% increases in renewals per year because, in one example, they saved one customer
$55 million in exchange for a $4 million contract.
That's too low.
They need to up those contracts and that's
what they're starting to do. And in fact, you saw a deal last week, Southern Regional Bank
increased their deal size from 500,000 to what's going to end up being closer to 5 million, 10X
and 5 million bucks by the time we get to the end of that contract, that's 25% of their revenue right
there. They get their revenue up closer to $45 million, then $25 million, and they're going to
be putting up a dollar of recurring revenue, EPS, with no competition for what they specifically do
in terms of speed and efficacy. Because of this also, I talked about it earlier, you have companies like Amazon,
Facebook with problems associated with this. I can verify that they have got an implementation,
not just a deal lined up, an actual implementation with a major social media company that I think is
meta. I'll have definitive information for you on Friday about the deployment of that
deal. We're waiting for signs that the deal has actually launched. And once that happens,
then we're just going to be waiting for either a press release or the logo to show up on their
website or something of that nature. But I'm telling you for the first time here today,
didn't even talk about this on Friday, that deal I found out over the weekend is implemented and deployed.
Okay.
So stay tuned.
And then for that on Friday on my show, in the meantime, what are analysts saying?
Well, Craig Hallam, which was the biggest bear on Wall Street, had a $3 price target.
had a $3 price target. And after they saw the Q1 results, and after they saw how much more
Southern Regional Bank is now willing to pay them for what they're doing, they upgraded the stock
from a hold to a buy and doubled their price target to $6. And I saw the report. I saw the
numbers that they put up. The numbers are a cakewalk for these guys. These guys are going to
do way more than what Craig Hallam thinks.
Craig Hallam is still, in my opinion, bearish, but at least now they're saying it's a buy in six bucks.
But you can decide for yourself what a company is worth if they put up a dollar of recurring revenue.
Ben?
Yeah, let me help you out here, too.
First of all, when you said $5 million, you're talking about the annual revenue run rate
by the third year, right?
Correct.
So this is a $9 million add-on to the prior relationship
and it's gonna ramp up to be like 2 million, 3 million,
5 million, or something like that over the next three years.
The final year is gonna be like 44.5
plus the existing .5 makes it 5.
Got it.
Okay, so IDN, I look at it much more simplistically.
I don't do the research Money Mark does.
Well, I haven't on this one.
In some names, I do a tremendous amount of research.
But IDN is a name that our colleague Chris Tuttle
brought to our community and our Discord on May 21st,
or maybe it was May 20th,
or probably the night of May 20th.
Right after that deal you're talking about, that high nine-figure revenue deal came into play.
And we put that in our daily note we put out and identified it as an inflection catalyst.
So I have a running list of stocks that have reached inflection points. And for me, just looking at the market cap
compared to the size of this deal and cross-referencing that with the chart, it just looked like
it made sense for me to jump in. I look for rapid rebating. So my starting point is the
catalyst. Your starting point is the research and knowing the company and the fundamentals.
For me, my starting point is I want to get into a stock where there's a catalyst that
looks like an inflection point catalyst.
So when you get one regional bank coming in here with high nine figures, you know, it
didn't take a rocket scientist to figure that maybe there's going to be more around the
corner.
Now we're learning from Mark about the nature of these other deals and meta.
That might be one of them.
That's absolutely stunning.
So you had a $104 million market cap just getting this nine million dollar deal and more
in the pipeline like maybe a meta that makes this pretty compelling so i actually added this also
to my long-term account today mark hey uh and you know what just crossed my desk you want to talk
about catalyst texas just announced that they are going to enforce age verification on Apple and Google app stores.
I saw that this morning. Yeah. I would need something like IDN to do that.
Well, that's the thing. Right. Because if you're going to verify the age of these users. Right. How are you going to do that?
You take the license. Right. You can you can fake a license, right? Unless you're using IDN. IDN can tell you the difference between a fake license and a real one with 99.9 plus percent accuracy. Nobody else can do think the state of Texas is going to take too kindly to somebody slipping through the cracks and having, whether it's be porn or fraud or what
have you. And that's just one of many states. You're seeing a number of states do this. I
showed a few on Friday. This is going to be a completely countrywide thing where you're going
to have, you know, not only with the adult content that's online, but also the fraud that takes place.
Before you know it, we're going to need identity verification for virtually anything you do online.
Great. Real quick on the technicals, and maybe I'll ask Brain Freeze.
Where's Dougie? Dougie Fresh.
Dougie Fresh. Dougie Fresh.
But on the technicals, actually, when I look at the daily and the weekly,
it's kind of hard to read, especially with the big moves recently.
I went to the monthly chart, Dougie.
I don't know how often you look at the monthly,
and I see a target of 582 as kind of the next resistance or next stop on IDN.
Dougie, we'll turn it over to you from here.
Yeah, no, you're right on, 582. That's where your 200 day is. And it's not looking bad. It has
jumped up. I mean, you guys got in it Friday. If you got in it, Money Mark was in right there.
That was beautiful. Nice jump up today for IDN. It's up, what, 71 cents, 15% over 15% right now.
And it is, it's cruising right up to that 580 something and it does look like it
wants to jump into the top i might have to keep my eye on this it is in the top and it's been uh
or it's just about to hit the top i mean so yeah it's just about to hit there and i think if it
gets in there i was gonna say if it gets into the top i think it's gonna be a runner up there so
i'm definitely keeping an eye on it just ran up today quite a bit I'm just going to see if it wants to pull back a little bit.
But yeah, you're right on the money with this money, Mark.
Because that does look really good.
Yes.
So if you look at a longer term chart on this thing, because I'm a longer term type investor.
I'm looking at the fundamentalist thing.
And I'm seeing within a couple of years, I'm putting up a buck of EPS.
you know, within a couple of years, I'm putting up a buck of EPS. And if they do that, this is a
And if they do that, this is a $30 spot.
$30 stock. When we go back a few years, back in 2021, as late as 21, this was a $15 stock.
How does this, how does this, how do you look at that from a longer term perspective? Or do you
just look at it in a short term perspective? No, actually money work. I look at everything
from six months. I don't even use, actually I was, I had the monthly when Ben said that. So
yeah, the Dally chart, it is in the top. I thought, I was like actually i was i had the monthly when ben said that so yeah the
dally chart it is in the top i thought i was like wait a second the monthly it's just getting in
there and i think it is going to push higher it's been in the top for a few days as it's been running
up here i guess what since about may 20th right there and even before that it started to really
get moving i actually look at six months at least six months of data before just to see how the setup
goes and this thing wants to run i just once it gets up to this height on like an over that 70
what are you at like 82 on the rsi up there i just uh i like to look for a little bit of pullback but
like i said these things rip when they get into the top. So I do look for them for momentum plays up here.
So I will absolutely be watching it.
And even if it pulls back a little bit, you can see it's really strong.
I mean, the thing wants to run.
You obviously have your due diligence on it.
And I'm just looking at a quick chart.
That's all I ever do.
And long term, it looks great.
I just think you might see a quick pullback and then get set back up to run some more.
Yeah.
Sounds good, brother.
Yeah, no, it looks great.
And then your G-O-D-F, you know, I was all about that thing.
That thing looked amazing.
Same thing.
I mean, it's run up so much that it just has a little bit of pullback.
It's probably going to just pull back a hair more and roll off that macd and go up even higher so i think uh i think we have you might catch a little more of a pullback if you uh if
you're listening to the show and you haven't gotten into it i'm telling you this thing has
been a monster right here money mark was on the money when it was all the way at the bottom down
here i guess in the beginning of april the thing was beautiful and it's run up tremendously and yeah
You might have a tiny bit of pullback right here
And it looks like it's gonna just keep on rolling up as well that chart and i'm not a big otc guy
But these things look great. Um, I I do follow the otcs that money mark mentions because they are there
The charts are easy. They're like normal charts. Some of the otc charts are really crazy
And uh, and yeah, these things are just in bull channels get moving Charts are easy. They're like normal charts. Some of the OTC charts are really crazy.
And yeah, these things are just in bull channels getting moving.
So I definitely like that one.
And then just cruise along.
I'll mention two that I've talked about before, and they're definitely setting up plug power, PLUG.
This one is doing pretty well.
I mentioned it last week.
I know that it's up a little bit today.
It's at 80 81 cents
right here and it is curling up it gets over that 20 uh moving day average at 83 it's really
going to start moving so that one's setting up until ray another one and again i don't know what
the heck's going on in the cannabis industry something is setting up i know ben has like the
msos yeah i'm holding it i'm holding it as a trump play
we'll see what happens no i'm telling you it's setting up right now ben uh it's all it dropped
all the way back down to the bottom and it's in a perfect spot so keep your eye on that this
weekend i have a feeling they have to be announcing something i don't know what the heck it is i can't
figure it out but it will make the
markets pop if they talk something positive about the cannabis industry obviously uh anything with
the federal legalization or even the banking um the banking act the safe banking act if they can
do something it'll make the markets pretty much pop but yeah till ray's been setting up that canopy
growth's been running up.
CGC, it's down today.
But that got into the top, a little bit of pullback.
So yeah, I'm not sure.
I've been following it.
I'm not exactly sure.
But Tilray is one that's setting up an MSOS as an ETF for the cannabis industry.
Both of them are setting up right now.
So you can keep your eye on them bad boys right there.
And that's it for me.
And so yeah, I'll turn it back over to you guys.
All right. And maybe on a break. He didn't go yet. Godfather, let's go.
Yeah, I want to talk about a couple of names, kind of like Ben, though, a little higher up in
the market cap scale, still certainly small caps relative to their peers.
A name that the folks in our Discord heard a lot from me about of late is Lyft.
And at $5.7 billion in market cap, you can decide whether that's small cap for you or not.
But compare it to Uber at 190 billion plus. You know, I just, like Maj, I'm looking around the market and I'm seeing some dislocations
and, you know, I am cautiously optimistic like Kyle and, you know, the cautious side comes in
where I'm almost more eager to play, you know, things like levered bets, like call options on these slightly larger companies than some of these small cap names that as soon as Nervosys comes into the market, you see a real dry up in liquidity in some of these names.
So this name in particular, look, it bounced 20% when they reported their earnings. It's been, if I listen to the technical guys, because I'm not a technician,
it's been bull flagging since then. They saw double digit re-acceleration or acceleration,
I should say, in their key KPIs, which are essentially driver hours and rides.
driver hours, and rides. These are all in the high 15 plus range. And then they're seeing
downward pressure on the cost side of things, which are things like driver incentives,
insurance, inflation, et cetera. So as a result of that, they massively beat unadjusted EBITDA.
unadjusted EBITDA. In fact, if you look at the progression here quarter on quarter sequentially,
In fact, if you look at the progression here quarter on quarter sequentially,
this thing is becoming a massive cash cow. Any fundamental analyst will tell you that the holy
grail of fundamental analysis is enterprise value to free cash flow, if you can find it.
And these guys are coming in somewhere around seven. And I would love somebody inbound me,
a company that's trading at a better metric than that. I don't think there are that many that provide this kind of upside liquidity in an
industry that clearly has some tailwinds to it. I know there's a lot of debate about
autonomous and what that's going to do. We don't have time to get into that full thesis here, but
I am certainly of the view that this is a positive, net positive to the likes of both Uber and Lyft,
both from a fleet management side of things, as well as in terms of demand generation.
Yes, there's going to be some Waymos, maybe Tesla will have their own app, et cetera. But mobility, autonomous or otherwise, shared mobility, is only going bottom left to upper right, in my opinion.
And then they announced this buyback.
They already had 500 million in the market.
They upped it to 750.
They're going to do almost all of that incremental, some $200 million worth in this existing quarter.
If you look at the chart today, for the first time really since the earnings report, you're seeing some material accumulation candles.
And the stock is actually finding new highs of the day beyond sort of an opening pop.
pop. So I think that this is setting up now finally to grind to where it should be on a fair value
basis in the 18 to 20% range or 18 to $20 range, which gives you around a 20% return. Obviously,
you can juice that up through levered vehicles. So I throw that name out. Another name that has a similar type comparison to it, the market cap on this one is $3.7 billion, and it's an old favorite of mine, Core Scientific, C-O-R-Z.
Obviously, the headline maker and data center of late has been the IPO of CoreWeave. And I think that that's brought up the valuations
of some of the peers.
We've seen it first in Nebius.
That's at various times been my largest holding
and I've been very vocal on X and other places
about how much I like this company.
But now you're in a situation where, you know,
CoreWeave with its market value is over 60 billion in terms of enterprise value.
Core's or Core Scientific is 3.7 billion.
By the way, they report on Wednesday, the fourth after market.
A lot of guys regard them as sort of the best way to play Bitcoin mining, which itself is not that attractive of business given the CapEx requirements, etc.
But what's important to understand or remember here is that two thirds of Core Scientific's business in terms of HPC or high performance compute is optioned to CoreWeave as we speak.
There's some 590 megawatts.
And they started with an initial deal of 16 megawatts.
And there are a series of five different options that were all exercised by CoreWeave to take this up to almost 600 megawatts.
It just doesn't make sense to me.
They're funding this already at like seven to eight bucks a megawatt.
Where are the constraints?
The constraints are in hosting.
The constraints are in power and data centers.
We know with this relative market cap, I look at just reading of Brent Thill at Jeffrey's
piece on Corweave, and I see the other guys that have launched coverage as well,
you know, their upside cases on the stock are in the sort of mid-70s and the stock's,
you know, well in advance of $100. So I think it makes sense for them to use their expensive
paper to finally buy this thing. Exactly, almost exactly a year ago to the week,
And almost exactly a year ago to the week, Corweave, while they were still private, made a bid for Cor Scientific at $575 cash all in.
That never went anywhere, but they can certainly afford to pay more.
And it's probably even more creative given their expensive paper. By the way, Core Scientific still has, in addition to that 590 that's committed to CoreWeave, another 270 megawatts that they can see a much, much higher margin on if that happens. Is it going to happen before the cores or core scientific earnings on Wednesday? Probably not. But I do think we probably get them in the spotlight on a relative valuation differential basis, as we've seen and as we saw when Envis reported their numbers, people start looking at this.
OK, there really is a huge gap here.
And I haven't yet been working on it as we speak, putting together the relative valuation table.
But my gut tells me Coors is trading at far too much of a discount.
So there's two names in the sort of $3.7, $5.7 billion market cap range.
I'll throw out one that's in the $1.5 billion market cap range that I've talked about before.
Again, relative to its closest peer, trading at a material, in this case,
a third or a quarter of the multiples.
And that's MicroVast MVST.
This is a lithium phosphate battery producer. This is not a science experiment.
They've got 800 plus patents, 2,000 people working for them globally. All of their capacity is in
China, even though they are headquartered in Texas, but that matters not because all of their sales are also ex-US. So this is lithium phosphate batteries for
grid support, utility scale, like for data centers and also commercial vehicles, think buses,
commercial vehicles, et cetera. If you look at them relative to EOS or EOS, E is the ticker is,
you know, I'm just looking at my valuation table right now.
They're trading at 2.6 times EV to sales in 2026.
EOS E at 7.4.
And if I look at it on a profitability metric, they're trading around 10 times EV to EBITDA, just, you know, straight up.
you know, straight up, nevermind the fact that EOSC is trading around like 50 times.
Never mind the fact that EOS E is trading around like 50 times.
But this was a real company and they're going to do more in revenue this year than EOSC will do
next year. And this is a company that's already at what other companies would love to say they're
going to get to in terms of maturity, in terms of margins. Gross margins are 37%. They're trending into the mid-40s.
EBITDA margins are already at 25%. They talk about that getting upwards into the 30% range.
There's a massive expansion, two gigawatts worth of production capacity that's coming on in the fourth quarter of this year. Again,
this is all ex-US in terms of both sales and production. And you're seeing 100% type growth rates in the EMEA and the other Asian countries. So more strategic collaborations, more new products,
more capacity growth, excellent cost containment, huge backlog.
Yeah, just kind of ticks all of the boxes.
Trading at 10 times EV to EBITDA despite top line growth that's pushing 35%.
By the way, that works out for people that still want to look at PEs. It works out to
about 15 times on a PE basis. So a real standout. And I think this sort of risk on market that we're
seeing, you know, we're seeing it in quantum, there's probably froth there. We're seeing it,
you know, in crypto treasury shit goes, definitely some froth there. But you're seeing money come
back into these theme plays, right? You see some nice moves in the likes of the LIDAR space.
And by the way, we've got HSAI reporting after close today to the extent that there's, you know, some industry adoption type KPIs that you might come out of that conference call that might be favorable to WRD or Pony or ARB, A-R-B-E, which you've heard me talk about on the autonomous space.
You know, drones has their days from time to time. Nuclear, of course, is right in focus right now.
But, you know, the multiples should be higher for this battery company. So I'll leave it there.
All right.
Maj, let's go.
We're a little bit behind, so if we can do it quickly.
We've got, like, I think another couple people after you, Maj.
Yeah, thanks, man.
Yeah, I'm only going to talk about one company here today, too.
So this is a very illiquid company.
So just for stock, just to make sure you guys understand that.
It's OTC, as you probably guessed.
The symbol is M-U-E-L, Paul Mueller Company.
And it only has a $300 million market, even after going up 600% since I actually first started buying it back in July, I think, of 2023.
And I've been even buying it up here at these levels, too, after it's gone up.
So just to let you know, my conviction is still there.
This is a classic case, I believe, of a value trap company,
where it's viewed as a value trap because of previous inability
of management to really do things, to use this big cash pal to grow the company, buy
back stock, increase facility expansions.
And a light bulb just went off in the company a couple of years ago to really start using
their cash better.
So in July, just to put things in perspective, of 23, it was selling around $45 near cash per share, P.E. of 4.
And now it's at $320-some now, probably a P.E. of 9.
And what's really cool here is what's happened here.
There's been along that – what do these guys do?
I mean, let me get into that real quick.
This is a boring industrial company.
They make like stainless steel kind of containers and storage equipment for industrial companies.
Anywhere from farmer's school companies, dairy farmers, transportation companies, very boring stuff.
Farmers, transportation companies, very boring stuff.
And I'll get into what they're doing new with that product segment in a second.
But really, when you look at this progression of what's going on here, I believe that the company has moved away from this boring company with no growth.
Imagine that it cares about growing and has been doing things to do that, and will continue to do that.
So since we found them back then, they've done two tender offers, a $50 million tender
offer at $80, and then they tried to do another tender $50 million at $250 a few weeks ago,
and only a million were tendered.
So they still have that cash pile available there.
They spent a small special dividend.
But what's also interesting is they spent millions of dollars a lot of time on three
capacity expansions to increase capacity.
And what they are doing really is introduce a new product that's going to give them a
little bit of a competitive advantage.
Think of a – they're producing a modular type of product where it's all in one thing that a company,
a customer can buy as opposed to having to source all those components from different,
different producers. That's higher margin and enables them to go after better markets than
they have in the past, especially the pharmaceutical market. They've gone from doing a run rate of
revenue, maybe a 40 to 50 million. Now they can probably do a 70 to 80 million run rate soon here.
And there's a little bit of information arbitrage buried in a shareholder letter that the company put on the OTC.
And they got $120 million pharmaceutical contract, which is going to probably deploy over the next 12 to 18 months.
over the next 12 to 18 months.
So what I basically think is going to happen here is
some of this capacity expansion build is still being built
and it'll be finished in 2026.
So I think you're going to see an increase in margins,
increasing contracts and better markets,
and a continuing kind of discovery of this idea by investors
where the PE is just going to re-rate to,
if you look at some of the competitors,
you look at 15 to 20 PEs.
At the same time, the company is growing.
So I think the company can do at the new level of run rate of backlog.
They were doing about $5 to $6 a run rate over the last year or so.
Now I think they're going to jump into a, per quarter, by the way, that was.
Now they're probably jumping into a $12 to $15 per share run rate.
So call it $50 a year run rate. I think this can
make a push to $1,000 if things go well.
And I'm really curious what they're going to do with
that pile of cash that didn't get tendered at $250
if they're going to increase that tender moving up. So it's a really good case
study of a value trap, kind of losing its value trap moniker.
Where it's not just got too cheap, where I think management realized that they didn't do something, that they're going to attract activists.
And so now it's all systems go here.
And that's basically my pitch.
Awesome. Fascinating.
The OTC trade is $300. dollars pretty cool uh mp still there
still here just hanging out listening to uh all you guys we got a little time because we got a
couple more speakers here yeah we're we're good until power hour honestly okay kyle uh i don't
think we heard from you yet on individual fix yeah i Yeah, I'll go ahead and just do one name right now.
Legacy Education, the ticker is LGCY.
It's actually a for-profit education stock that owns a few community colleges.
Relatively recent IPO.
It IPO'd back in September of last year at $4 a share.
It's currently trading at over $9 a share, but still trading at a fairly attractive valuation,
in my opinion. It's a PE of 15. This past quarter, top-line growth of over 50%.
Operating profit grew over 55%. Compared to other publicly traded education stocks,
it's pretty cheap across every single metric, yet has much faster growth than all of them.
Also worth mentioning, the company has a rock solid balance sheet with $17 million in cash,
which is a lot for a $115 million market cap company.
All of their community colleges offer programs in the allied health space.
Think things like nursing, MRI techs, CNAs, things along those lines.
There's a huge shortage in the market right now.
So all of their programs have seen tremendous growth.
And in this past quarter, the organic enrollment numbers are really, really strong, but they also
just acquired a new college and they're already adding a lot of new programs to it. And another
thing to note, they've also shifted their business model online, which allows them to scale really nicely and not have to worry about
running out of space in their colleges. So if people are looking for a little bit of
diversification away from technology, semis, or data center plays, legacy education could be a
nice addition. And I still think it's relatively cheap, even though it's up over 100% in the last nine or 10 months.
And the ticker is LGCY.
I guess that's my pick for the day.
Awesome.
LGCY.
Hang around.
I've got one more pick for you since we have time.
But first, we've got to go to, I think, Spartan.
Spartan, are you there?
Yeah, yeah.
Sorry, guys.
I'm just fighting to get to my mic there to turn it on.
So a couple of different names.
I'm going to go a little bit on the really small market cap side of things. So kind of getting kind of all over the place here, but looking for valuation, looking for momentum.
That's just kind of the way that I do it.
And, you know, there was one name, OTC.
I did a thesis on it last week.
It's XBOTF, robotics company, companion robotics company, which is an interesting concept.
AI also component to it.
They also do hold some crypto.
But the CEO is a stud.
Worth going through that thesis.
I did a lot of work on it.
It's pretty long.
It's like eight, nine pages.
I actually just retweeted it
so you can take a look at it,
click on it.
But yeah, so far this thing's up 60%.
They're presenting a conference right now,
today, tomorrow in Vegas
and then they go over to the UK to represent.
So I'm expecting some more bullish action there.
Last time they had that really big push
from like 20 cents to 52.
That was during the CES conference.
So I'm thinking that we'll see something similar so far.
Those 60% move, which is pretty good before the conference.
And I'm going to be looking for some continuation there.
I like the robotics space a lot.
There's not too much that are publicly traded that are kind of pure robotics AI plays.
This is one of them.
It's one of the first movers. And typically the first movers get the best valuations.
I'll be speculating a little bit.
Maybe these guys can get a big enough valuation, enough cash to do a little bit of an uplisting,
maybe through an RTO.
That's probably the path that I think would make the most sense with them.
But again, just speculating, and you can just give me my opinion there.
There's a couple other names so this uh
upxi and all these um all these names that have basically become treasuries on the crypto side i
think that's going to continue i'm watching for the names that are actually raising money through
private placement upxi is another one that i did a thesis on had about a 50 60 move last week they
did a private placement they raised about 9898 million. And I'm going to
be watching for PR of them deploying that capital into Solana, which is what they're using. So I'm
thinking that you're going to get a nice little bump on that given the SBET news today. So there
should be some sympathy when we start to see more companies kind of reporting of treasury buying of
crypto. I think Mara and Riot kind of do fit the bill so i'm gonna probably
be watching those if you look at the option activity on them as well they're pretty bullish
so i'm thinking maybe they get into that space or even if they don't um you know just given the
option activity i think you're gonna get a probably a short-term you know move on that so
watching those um those minor names a little bit as well.
There's just another little OTC name, NGLV,
put it on again on the Friday there,
or sorry, Thursday there,
after they reported some results.
This is a streaming goal play.
So essentially they leased the lead
to companies doing exploration,
collect money that way.
So there's a lot less risk associated with it.
And I do like the concept of it.
It's kind of a first of its kind.
And they've been moving pretty good.
Kind of a short squeeze potentially could happen on it.
I was just looking at the shorts outstanding.
A lot of that is overseas at the moment.
That short volume.
So potentially on that naked short getting pushed out. is outstanding. A lot of that is overseas at the moment, that short volume. So, you know,
potentially on that naked short getting pushed out. It's had a pretty big move in the last like two, three days as well, which is, you know, indicative of, you know, potential short squeeze
that could happen going forward. So watching that, I like this little X4 as well. And that's kind of
what I'll end off on. Actually, I got two more.
X4, this one, it's a biotech name.
It's beaten down.
Low float name.
Interesting.
They just reported earnings that were positive.
They're positive because of their warrants being exercised and sold.
But regardless, even if they did do that, they still would have been, you know, their burn rate would have been very small.
$15 per cash per share, $3.96 book value per share.
Stock is trading right now at $3.26.
I think it's flying under the radar.
And just take a look at that daily chart, you know, that given the flow, given the amount of cash they have. To me, that's a nice speculation long off the lows to potentially get some momentum.
They got cash for a couple of years.
It's like, you know, potentially with their burn rate and some of their licensing deals they could be positive as well or if they continue
to kind of do these warrant exercises and sell them they could certainly be making money each
each quarter but i think that's a very interesting one uh to keep an eye on and then last but not
least uh being on this um you know the iranian side i do like this uh fmst still off the lows
i mean i did at least just update on these guys around $0.70 about two weeks ago.
It's trading at around $3.30.
And I think that space is going to continue to be hot.
That thing basically just took off, and now it's becoming a momentum trade.
I'll be watching for more news.
It looks like today they tweeted out the PR that they have compliance again on their NASDAQ listing because it was trading below a buck, I don't know, a couple weeks ago.
But that's a pretty solid move in the short term.
I think you can get a continued squeeze there.
It was extended and it continues to hold those extensions.
Float's still small, so usually indicative of a continued push higher.
Yeah, that's kind of what I'm looking at now.
Oh, lastly, I'm looking at this NUKK.
This is a Golden Dome play speculation type of name.
It's come back to areas where I think it probably makes sense
to speculate and grab a little bit.
This would be on them completing an acquisition
that would have, you know, basically a company
that would be dealing directly with that kind of Golden Dome play.
But right now it's complete spec.
Take a look at the PRC.
They've kind of mentioned a few things there.
So I think it's come into areas on the extension to the downside where, you know, if you're going to speculate, this would be the area to do it.
Definitely not be when it's moving and chasing itself.
A couple of names there to keep an eye on.
I think most of them have some pretty large amount of upside left on them.
And, yeah, continue to keep you updated on these small caps.
Good stuff, Spartan.
Yeah, NUKK was one we were all over in that initial run-up.
So there's going to be some meat on the bones there.
I haven't done a deep dive in the capital structure or whatnot
to see if it's one of these, you
know, shitco companies that do these top financing.
I'm not sure about that, but the news around it's certainly very interesting.
All right.
So let me get one more pick for you.
I gave you PBI and WeRide, Chinese company, which I said I don't usually trade, and I
actually got another Chinese company for you here.
Again, market cap's a little
bigger. We're talking about Webull, a $6 billion market cap. And what a success story this stock
has been for a community multiple times. We've probably, I'm sure our community's made over a
million dollars on this combined, probably more. But Webull, B-U-L-L, great collaborative process here. Ross is still listening to it.
Great. But Ross brought this to our attention the day before they merged. This was a SPAC.
I don't know the ticker symbol, what it was before. But he alerted us at like $11, and within
two days, it went to $80. So that was the first run of this, where people made a ton of money on
Webull. And then the godfather knows on the panel here,
he got involved and he discovered the warrants for us,
which has been a tremendous, awesome way to play this,
particularly Bull Z, but we did well with both W and Bull Z.
So, you know, this was an arbitrage play at the time
as we were waiting for the exercise date to come to fruition. And so that
was the second big win on bull. And then I got involved. And, you know, I was really trying to
find the bottom on this thing. So, man, I probably spent dozens and dozens of hours kind of
researching. You see the thing went to $80 and it was sliding, sliding, sliding, sliding. So,
you know, Godfather and I were working on that together and he did some research about the unlocks and typically there's like a period
of time where the insiders can't sell but in both cases that wasn't true. They could
sell from day one so this thing was selling off, selling off, selling off and I spent
a ton of time trying to identify where this thing is turning around and man did I ever nail it. I got this chart's number. I figured it out. I figured out what line the algos
are following or whoever's doing it but I'm not going to tell you what line that is.
But I'll tell you we nailed the breakout on this chart at, let me find it right here,
it was May 2nd we put the alert. This thing's breaking out at $14.
We rode that to about $18, and we were out, and we got in again.
I mean, we're playing this thing like a fiddle because it broke out again here on about May
20th up until the earnings report.
So we played that perfectly as well, selling it into the event anticipation of the earnings
report, and then we anticipation of the earnings report.
And then we waited for the earnings report. We looked at that earnings report. And I think
Godfather and I both liked what we saw in the earnings report. The stock's a little bit expensive
fundamentally, but this thing's going to have a sentiment premium permanently. Webull, as you
know, a lot of traders use this thing and love it and swear by it. And I do too. It's my main
platform that I use. So this thing's going to get a permanent sentiment premium. And we've been watching it since the
earnings report. And it's broke out yet again today, back above this key level I've been
monitoring. So and we're playing, I'm primarily playing it with the Warren's Bull Z. So that's
a larger market cap, $6 billion. But I would say PBI, WeRide, and Bull are three of my
probably top positions right now from a trade perspective. All right, that's all I got. Em,
back to you. Dougie Fresh, did you get a chance to go through anything on your watch list?
I certainly did. Thank you, Em. Okay, just double check and make sure it got to anybody.
Any final thoughts from the crew?
Anything that somebody else said
that stuck out to you
that maybe you're going to dive into
or that you have looked into?
Just give an open mic shot here
in the last minute or two.
I mean, I got to tell you,
a lot of the names
that Godfather brought up,
NBIS, all the AI- related names, I would be on it.
You know, as long as they're not extended, all the information that I've gathered from my contacts over the last week, now that I'm settled into my new office overseas, is just extremely bullish.
is just extremely bullish. So I would say, you know, I don't know exactly what we're going to
see out of Q1 in NVIDIA, but beyond Q1, it's going to be lights out. It's going to be absolutely
lights out. And from the visibility that I have, we're probably looking at four good quarters
after the one they announced this week. And the one they announced this week might be good as well.
I just have better visibility into the few quarters that come after that.
And it's just going to benefit all kinds of names, NBIS, Vydia, TSSI, you name it.
So all the names that Godfather mentioned, I'd be on top of that.
Absolutely. Well, I appreciate the old crew up here uh if you are in the audience you're not following these great speakers up here and the couple that did have to drop there a little bit early
uh make sure you do that go ahead and check them out check out their timelines check out the other
services uh streams discords everything uh that they're doing. There's some amazing stuff out here.
I mean, what they do on this show for an hour, hour and a half,
once a week is just the tip of the iceberg.
I've checked out some of it myself, and I would encourage you,
if something that you enjoy or somebody says something smart that you agree with
or you like their style, definitely go check them out.
Give them a follow and start there over on their timeline.
Appreciate everyone.
Ben, any last comments from you before we shut her down?
Yeah, 5 p.m.
Stop picking competition.
It's a horse race, but I think I might come off
and get that trophy there.
I'm trying.
Yeah, you're in a nice lead here.
Unless Ethereum or bonds just go wild this afternoon i
think you're gonna i think you're gonna have it um i'm i'm fighting for the podium spot down here
uh i'm in fourth right now i'm fighting for it we'll see uh see what happens here in the back
half of the session but yeah 5 p.m eastern tonight right here on Wolf Financial. We will have our normal Monday stock picking show on Tuesday. And we'll see where everyone's at on
that. That will be very interesting, especially looking at the results of this past week,
the pullback, and then now this move up in the market on some good news. So very interesting.
We'll get some more thoughts from some other people tonight, as well as stock picks for the week at five. And I am off for the next half hour until we have
our power hour show over on Stocks on Spaces. And with that, I'm going to close this out. If
you missed any part of this conversation, it is recorded. You are able to go back. You can catch
those macro thoughts the first half hour or so. And then we get into the stock picks or the individual names and thematics around 30 minutes into the show if you missed any of it.
Big shout out to everyone up here.
Money Mark.
Maj, great to have you again.
Dougie Fresh, Godfather.
My co-host, Ben over at Story Trading.
A couple others that were up here as well.
A little bit earlier, Spartan.
Some of our other friends as well.
Big shout out to everyone, and we will see you guys back on Monday on this show next week.
Take care, everyone.
We'll see you on the next show.
Go ahead.
Oh, actually, Em, you there?
I'm here.
I'm here.
Yeah, actually, I can't do it Monday.
We've got to talk.
I'll be off.
Personal day's off next Monday and Tuesday,
so either you could do it without me or we'll have to reschedule.
All right, we'll have to reschedule. All right.
We'll jump in the DMs.
It's unacceptable, but we'll see what we can work out for you, Ben.
All right.
But I appreciate the heads up.
So just keep an eye on our schedule, of course, every Sunday evening.
Right around when Futures open is when I log on and put out the full Wolf schedule for the week.
So sometime between now and then we'll decide on what this looks like next week.
Thanks for the heads up there, Ben.
And with that, we will see you guys on the next space.
Thanks, everyone. Take care. Thank you.
