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SMALL CAP INVESTING
Recorded: June 2, 2025 Duration: 1:27:24Space Recording
Short Summary
In a dynamic market landscape, small-cap stocks like TSSI and Gatekeeper are thriving, with TSSI expanding its operations to meet AI server demand. Meanwhile, Gatekeeper's strategic partnerships and Derm's new drug launch signal promising growth opportunities. The upcoming merger of GSRT with Terra Innovatum further emphasizes the trend of fundraising in innovative sectors.
Full Transcription
Thank you. What is up everyone?
Happy Monday.
Welcome in. Working on getting our panel connected here
happy monday hope everyone is doing well hope you had a great weekend and uh here we go it's june
and uh we're still going we're keeping the momentum going here on mondays at 1 p.m eastern
small cap investing and i see a bunch of spinning connecting with my panel here.
So we'll see if that sorts itself out pretty quick.
If you're stuck in that trap, go ahead and drop down.
I'll get you right back up.
And we'll see Ben from Story Trading, our co-host normally of this show.
He is out of pocket.
I think he's out in the middle of nowhere somewhere.
We're not going to disclose any locations or anything, but I believe he's out in the middle of nowhere, getting away from the
charts a little bit. And good on Ben. Every once in a while, it's a good refresh and well-deserved
as well. But very interesting spot we're at here. I just sent out some new invites to those
panelists to get them back up here. We're going to keep the momentum going. We're going to keep
the show going. The show must go on, as they say. So here on the Small Cap Show,
thanks, everyone. Welcome in. We'll jump into it here in just a second as I get everyone up on
stage. And as always, we'll start off, we'll do some market sentiment thoughts. I don't know that
much has changed, honestly. You just look at a daily chart on anything and you'll say, well,
nothing's really changed. We peaked below the range range we peaked above the range we're sitting right in
the middle of it as far as the broader market goes um but there have been some things moving uh
definitely some some movement going around in the market and we'll see if there's any updated
thoughts from the crew here and then we'll uh get a little more granular after that, of course. And with that, I do believe I have a panel up here with me.
So let's go ahead and dive into it.
Money Mark, we've got you up here on stage.
I'm going to let you kick us off this week in Ben's absence.
How are you, sir?
Sure thing, brother.
Everything's going well.
Like you said, not too many changes this week in the environment.
I remain on what we call light yellow alert.
It's mainly a valuation-based metric.
And in a light yellow alert, what we want to do is be super picky and let the stocks decide how invested we want to be.
And man, has that ever worked?
I've remained cautious on the market personally, but when I look at individual stocks, we have
recently re-added TSSI and Gatekeeper GKPRF to our portfolios, as well as adding IDN as a new name. And I mean, we're just ripping across
the board as far as those names go. Since the last time we spoke, the market has drifted
sideways, if not a little bit down. And we have some reasons for that, right? We got
geopolitical risk is out there with Ukraine getting really innovative bombing,
Russian targets feeds into the narrative that I've provided with regard to drone shield, DRSHF.
And the concept that we brought up last week, right?
We talked about the Fed put and the Trump put,
but people haven't been talking about the Trump call, right? The concept that
Trump is definitely going to step in and maybe back off or be a little more friendly if the
market is collapsing on him, but that's not happening right now. The market has come back
strong. It looks a little resilient at this point, And that gives him the resolve and wherewithal to re-ramp some of his rhetoric and initiatives. Right. So I call that the Trump call, which is, you know, if the market is up and you think that Trump's policies are going to be the time when he gets a little bit more aggressive again, that he feels confident the market is back on the kind of footing that he wants.
So be careful about that, right? When the market is up, expect to see more of Trump's policies
being put in place. And by the way, I am apolitical. I'm not Republican or Democrat.
My political party is money. And that's all I want to do is make money in any environment. And to do that, you just have to be aware of what's going on. And this is exactly
what we're seeing now. You know, Trump, people even calling it taco, you know, with Trump kind
of backing off of these tariffs. No, I don't see it that way. Whether you like Trump or not,
I kind of saw it as a necessary step back,
given the bond market was puking all over itself, given what he was doing. And he decided,
let me take a step back, calm the markets, and then I can come back for round two and be a little
bit more judicious about it. Seems to be the case, because what do we have now? We have those geopolitical issues
cropping up and then we have the rhetoric going back and forth. It looked like they were getting
friendly. U.S. and China relations were getting a little more friendly and now starting to look a
little more hostile again. So other than that, the economy looks good. If you follow 42 macro,
which I do, they just went all in. They've been inching their way back into the markets, and now they're all in on risk assets,
100% allocation on stocks, 100% allocation on gold, 100% allocation on Bitcoin.
So we can talk a little bit more about individual issues coming up, but that's the way it looks
right now.
And so it's a great, great market if you are a stock picker.
And I think that's the way to
keep things focused at this point. Appreciate you picking us off with those thoughts. Yeah,
it's like nothing changed about it. I like the take there on the taco thing.
I know it went viral in the question and all that stuff. Trump always chickens out,
for those that don't know what the taco acronym stood for. But, you know, it doesn't look like he's chickening out. It looks
like he's pushing back on these courts. I saw this morning, even a push to get this thing to
the Supreme Court as quick as possible. It does not. I don't know, Money Mark, what your take is
on that, but it does not look like he's backing out of these. And that's why, like, I assume that's
probably why your yellow light's still on. I mean, part of, or at least part of it. Yeah, exactly. And this is exactly what I was
saying, because if you want to look at, you know, TTT versus TACO, right, all you have to do is look
at the market. If the market looks strong, resilient, and people are feeling bullish,
and if you look at the, you know, bear the measures that I look at every week, the CNN fear greed index has been pretty good for that.
We're in greed territory.
We're in a 66 out of 100.
And not just a couple weeks ago, we were even reached pretty close to extreme greed territory.
That was Trump's cue to go from taco to TTT. When the market was tanking,
that was his cue to go from TTT to taco. So, you know, I think you just hit the nail on the head.
It's not neither. He's going to, like any good president would, and not, you know, making a
claim of him being good or not, I don't care if you like him or not.
The fact of the matter is, if you know what his policies are, if you know how he's likely to react, that's how you can make money.
And the fact of the matter is, when the market's high, he gets more TTT.
And when the market tanks off, he gets more taco.
Yeah, that seems it seems to be a little bit more deliberate.
Like you're saying, I agree with that take there.
Godfather, let's get your thoughts and see.
Are you aligned kind of with that piece of things?
And what other thoughts do you have around the general market?
Yeah, I actually was going to talk about the taco thing.
the taco thing. And, you know, it, it concerns me, frankly. And it concerns me because I think that,
And, you know, it concerns me, frankly.
you know, look, the market certainly has tariff fatigue, there's no question about that. I mean,
that's notable in the fact that, you know, China seems to be going off the rails in terms of trade
negotiations. And, you know, what's the market impact been like less than a third of 1%. I mean,
if this was, you know, closer to liberation day, you know, the markets would have been off like 5%.
So, you know, tariffs, no tariffs, trade deals on, trade deals off, you know, this, you know, switching positions.
This, I think, is concerning in so much as that we know that Trump has been a protectionist for several decades.
I don't think he likes being called out as weak.
And to the extent that this taco theme continues to be in headlines, which is essentially suggesting that he cares more about short-term growth and he's going to do whatever it takes to keep the markets up and keep all of his billionaire friends printing cash and all the rest of it.
My concern is that he doubles down on this fight against that taco narrative and, you know, against China and against the EU, which is, you know, the two things, the two trade partners that everyone's still focused on.
You know, the two things, the two trade partners that everyone's still focused on.
And, you know, I see the market at a fairly vulnerable level here.
And that, you know, it could cause, you know, some material downside, at least on a short term basis.
So, you know, we're look, we're, you know, if Ben were here, he would say, OK, it's a it's a green light for stock picking because we're over the 200 day moving average.
And I do agree with that. That's that's good.
You know, nothing good happens under the 200day. You hear that said all over. I look at it more in terms of rates. And you've heard me say this, and I'll reiterate it again. With a 10-year under
four and a half, I think we're a green light. If the 10-year inches to four and three quarters,
I think it's sort of a yellow light. And as we approach five, it's a real red light for equities. So we're still in that sort of green light zone. But
look at what happened in the month of May, right? I think the SPX was up over 6%. This is the best
month we've seen since November of 23. But all that happened in the beginning of May.
And like literally for the last 15 trading sessions or so, at least the last half of the month, we've sort of been sitting here flat.
And, you know, we're, yeah, we're a little bit above the 200 day.
But I look at some of the leading sectors like semis, for example.
If you look at the SMH, you know, we're 242.50 right now. The 200A there
is sitting at 237. Obviously, we've got the largest weighting, even larger than NVIDIA in
the semiconductor index is Broadcom, and they report on Thursday. So, you know, it's possible if the market has decided multiples are
enough here, you know, that that could send it, you know, below the 200 day. It's also possible
that 200 day could act as support. So I just say that because, you know, we're sort of in this area
where, okay, Q1 earnings are over and they were good, by the way, MAG7 exceptionally good.
I think 32% earnings growth versus the rest of the 493 at like 8%. So that's positive. We've seen
a general uptick in AI sentiment, which clearly as a market leading sector, we needed to see.
That was sort of reinforced by the so-so numbers out of NVIDIA,
but a decent market reaction to them. I'm concerned about where we go next from here.
You've got a lot of the good ideas that are already sitting at 52-week highs. I look at the
valuations on the VEVs of the world, the CrowdStrikes of the world, the Zscalers of the world.
You know, and, you know, worth mentioning CrowdStrike because they report on Tuesday.
So tomorrow after the close.
So, you know, between Broadcom and CrowdStrike, I'll be watching those very closely as leaders
for where the index could go
from here. But look, I agree with the Money Mark's take on the outset. Nothing's really changed on
the economic picture. I think finally the market is down to what I see as reasonable in terms of
expectations of rate cuts at two. If you asked me or pressed me on that, I would probably bias to suggest that it's
still a bit high. I think maybe one and done is all we get. And why is that? Well, because
growth numbers are holding in there. Unemployment numbers aren't blowing out.
So the market cares about three things in this order. Number one, trade policy right now.
cares about three things in this order.
Number one, trade policy right now.
Number two, economic growth.
And number three, deficits and debt.
So it's just going to be whipsawed back and forth by these trade headlines in the immediate
term.
And then we need something.
We need something to give the indices an excuse to push higher.
I just don't see where that's coming from.
It would take some material
revisions upwards to earnings from here. Because on a multiple basis, we're pretty much where
we should be. It's tough to make the case that a lot of multiple expansion from here
is warranted. Now, this is a small cap show. So let's put this in the perspective of the environment and the background for investing in small caps, which is really the only reason we talk about macro on the show.
And I go back to what I said.
At four and a half or under on the 10-year, you're free, I think, to find alpha.
And there are plenty of small cap names that are trading at materially discounted
multiples to the market. So market multiples don't matter. And I think from a flow of funds
basis, they'll continue to be rewarded because it's not a situation in the market where correlations
go to one and equities are sucking against other asset classes. In fact, the opposite is true.
You know, some of the risk assets like crypto and all
the rest of these are showing some decent green lights. So it's a decent backdrop. I think it's
a great environment to focus on quality small caps, and that's what we do on the show. And I'm
looking forward to coming back and sharing one, two, or three of those with you, new names, depending on timing.
Yeah, and Godfather, totally agree with you on the valuation front.
That's where I sit at the light yellow alert evaluation based measure.
One thing I didn't mention, love your thoughts on this, with the big, beautiful bill, that seems to amount to further monetization of the debt,
more money printing. And you see the dollar going down. So is there an argument to be made that
assets priced in dollars benefit from the dollar going down? So you've got gold going up,
stocks holding up, Bitcoin going up, things of that nature. I mean, the dollar is the notable, you know, victim in all this over the last few weeks.
Yeah, for sure. And I think, you know, we talked about this, I think, on every small cap show that I can remember, at least for the last four or five, about, you know, how certain sectors like gold, for example, you know, really benefit from that.
about how certain sectors like gold, for example, really benefit from that, anything where
commodities are priced in dollars. So yeah, look, I think it comes back to this. For all of the talk
of Doge and all the rest of it, if you look at this bill, deficit spending is still going up.
It's still going up. Trump loves to he talks about Trump loves to talk about how Biden
wasted money and all the rest of it. And again, I'm Canadian, so I don't have a dog in this fight.
I'm just talking about, you know, actual numbers here. But yeah, the net net is the U.S. continues
to spend. And, you know, it needs to borrow another $22 trillion over the next 10 years, according to the CBO. So, you know, you got tax hikes,
you know, in this big, beautiful bill, along with not a lot of cost cutting.
You know, a lot of these things appear to be structural in terms of inability to materially
cut costs. And if you add those proposed tax cuts in there, it's another five trillion to the number I just mentioned.
So I think that's the main reason why, you know, you're you're you're seeing the dollar weaken, generally speaking.
So, yes. Yeah, bro. I mean, even even oil is ripping now.
Yeah. Which is which is crazy. Like I had to do a double take on the weekend.
Like I had to do a double take on the weekend.
I saw this headline. I'm sure you did, too.
I saw that headline.
I'm sure you did too, you know, OPEC, another big, you know, raise in production and oil
price rises.
And I'm like, what the heck?
All assets floating in a week dollar environment at the moment.
That's right.
So look, you've heard me say this mantra over and over again.
You know, I got two main investing mantras.
Number one is, you know, do more of what's working and less of what is.
And number two, you know, try to invest where the wind is at your back.
And if you can find sectors where, you know, weakening U.S. dollar helps your company,
whether it's a manufacturing company or commodity based company, then, you know, take those wins.
Because investing is difficult and anything you can do to slide the ledger in your favor is welcome.
100%.
Dougie Fresh, what market thoughts do you have for us?
I was definitely enjoying listening to Money Mark and Godfather. They were
giving a great analysis of the market and telling us exactly what's going on. I have to agree.
great analysis of the market and telling us exactly what's going on i have to agree and uh
but i will say the spy is uh it started out red today and it obviously started to go up right now
it's up a little bit um my comcast is down my internet's down in the whole area so i just have
my phone to work with is that not the worst when your internet goes down you're trading on your
phone all day but anyway so i'm looking at the charts and everything on my phone but spy is up and i'll tell you what the iwm looks really
good check it out it is setting up right now and i think that the spy is i keep thinking the spy
wants to run up hit them all-time highs there's that channel right there where it wants to get
up to 6 10 and it does it looks like i I think Trump and China, they'll talk this weekend
and things will start popping again. It's like Money Mark said, he has the market under control.
He snaps his finger when it goes up too high. He has to say something crazy to bring it back down
because they don't want it to run up. We have to get the rates down. That's the main thing here.
So the market's going to run around until these rates get down.
And again, I said this one day, I just don't see the argument how the rates are still staying up so high. So, well, it'll be interesting if they get pulled back down a little bit in June or July, the rates.
And then I think you're going to see the market go crazy.
But in the meantime, I do think the SPY is going to pull back.
These things are way up at the top.
They've run up there way too high.
They look like they want to continue up a little bit more,
but there's absolutely a nice dip coming up soon.
And the small caps look like they're great.
They've been getting beaten down for a while now, and they're starting to set up.
So I think some of the momentum might start to change into some of the small caps at the moment why the uh the big ones have to pull back from that top
just to get set back up again and that's when you're really going to see them they're either
going to run like crazy or it's going to dip like crazy but i think like i say he's going to have
them run up to that top he has control over market. And as we spoke about many times on the show,
the midterms are coming up and each month gets closer and closer. So you can't go tanking the
market completely because then you got to try to recover from that in less than a year and a half,
like way less than that at this point. And he has to have that market cranking if he wants to win,
if he wants to take the midterms and obviously do
something in the second half of his presidency so he obviously has a master plan they sure do
and i've never like i say i just look at charts and now i look at the charts every day and try
to base what they are up to the administration's trying to do at that moment and it works out
pretty well i have to say and as money mark was saying in the beginning there's some great individual stocks right now i mean you can really see some great setups going
off and uh they are beauties they're running like crazy and if you saw that rgc and and a couple
other ones that's bad i mean you're talking rgc's up over eight thousand percent the thing just went
nutty so there's some great opportunities all over. And you just
got to really look at the market and see what they want to do really at the moment. You got to
be pretty dally about it and not really go too, too long yet. I don't think, I think we could see
a little dip in this market and you'll get really good opportunity by better buying prices. And in
the meantime, I do think the um the small cappers are
going to run like i said look at that iwm guys it looks it just got set up gold looks real good to
try to run up and i did find it interesting that oil was going back up and gold so that's going to
be interesting and money mark what do you think about that geo drill because i i think it'll still
go up but um just
the fact that oil is gonna could possibly go up i know it kind of affects their uh you know how they
they make their money there um so what do you think about that if oil does really start to
continue you think that the uh the j nug and the gold miners will really start to continue because
they had a great, great run there.
And they still look good.
But again, oil was so far down and that was their major operating cost.
So what do you guys think about that?
And that's what I see in the market right now.
And the spending is out of control, guys.
If you look at that bill, like you were saying, it's just completely crazy.
I mean, I don't know when anybody's gonna try to
stop the spending or cut it back um they're clearly never gonna make enough money on tariffs
or anything else i don't care what we do um they just gotta cut spending back we spend entirely
too much money and a lot of it's just crazy i mean obviously before you see all the reports
that doge was bringing out and a lot of the crazy, crazy spending.
But it's still crazy, guys.
So we're still blowing through money in this country like it's not even there.
And that has to get under control.
And, yeah, I just think that Trump has a master plan.
He's going to try to snap his fingers and keep this market rolling here.
So that's what it looks like at the moment.
And I'm looking forward to hearing what you guys think about the gold miners. Yeah, we'll have that in the stock portion of the show.
You're burying the lead, my boy, my man. Just one comment about the indices since you brought it up.
As you guys all know, I'm a fundamental guy, not a technical guy. But for that reason, I try to pay
attention to the guys that I think are sort of
leading on that front. And the numbers that I'm working with just on the SPY and Dougie, maybe,
I don't know if you actually look at the indices or not, but clearly 5970 is a breakout level.
And then, of course, you know, the psychological 6000 comes into play. But on the downside, there's a real glaring gap fill here at the 56-60 level.
So those are the two levels that I'm looking at.
And it seems like most of the technical guys that I follow have those on their radar screens.
Yeah, no, absolutely.
And I do look at the indices.
And I honestly started looking at the futures a lot more and really relating the VIX to the SPY.
And you can kind of you can really tell. I mean, if the VIX is setting up really, really good, you can almost time it out to the right timing now.
Not now, but I'm sure I just never really looked at them more or less before.
looked at them more or less before, but now I really kind of zeroed in on the futures and
different things like that to try to better my charting and what I can see and what's going to
happen. Especially right now, it's so crazy. You almost have to worry about a tweak here or there
and it can make the markets run. And I think if you could see either VIX really setting up and
the SPY going the other way, I think it kind of confirms to you that, you know, it's going to kind of dip down on you at that moment.
And that's what I've been looking at.
The Vicks is starting to look pretty good.
The Spy is pulling back.
And it looks like he wants to say something that makes that thing pop up there and makes it run back up into the sixes.
And then we'll see a nice dip after that.
Or it's not going to make it back up to the sixes. And then we'll see a nice dip after that. Or it's not going to make it back up to the sixes.
And it's just been teetering since last week.
They left it over the weekend.
You couldn't tell what was going to happen.
You still can't tell what's going to happen.
And, yeah, I just had a close eye on it.
And it just can't.
It's just teetering back and forth.
You can see it try to crawl down.
The MACD will be crawling up.
The RSI will be going up the rsi will be
going down they'll go vice versa it'll switch around it's just bizarre what you look at so yeah
you really have to be on it every moment to really know what's going on but um yeah i'm just waiting
for that tweet to uh say something decent or positive is happening with China talks and, and things will run up to that six,
10 again.
And then,
like I said,
there is a dip coming though,
guys,
I can definitely see it there when you see everything run up to the tops and,
and like,
look at Microsoft.
I mean,
that thing's just been up at the top over the 70 for way too long,
longer than I thought it was going to stay up there and it keeps cruising up.
So yeah,
these things will pull back and they have to to to set up to go up more so that's that's what i
see there godfather look at uh look at the ndx so you know the the the top 100 biggest nasdaq
companies in the last 15 uh days or last 13 trading sessions, I think it is, they've traded within a 1% trading range.
So we're essentially flatlining here, which either can be viewed as a good consolidation, a healthy consolidation of recent gains for the next leg up.
Or we get a breakdown here because we've kind of hit resistance levels.
I think there are all these lingering pull-forward
concerns. I think the market in general is, like I said, sort of waiting for the next catalyst
because now the Q1 earnings season is more or less behind us and the economic environment looks
fairly benign. I think all eyes are again on the trade front to where that's going to come from. So your guess is as good as mine on that.
But yeah, it certainly looks like we're at a potentially vulnerable place in the market.
So I just I think it's worth noting that.
And from a flow of funds basis, you know, we we saw the worst outflow in the SMH since early February when the Liberation Day was announced.
So that's not good for a sector-leading subsector to see that.
So it's a little concerning.
All eyes on CrowdStrike.
All eyes on Broadcom.
Yeah, definitely. Both of those reporting this week, as you mentioned earlier, CrowdStrike tomorrow after the close and Thursday after the close for AVGO Broadcom.
Two things both in my portfolio that I'm definitely paying attention to that have done very, very well. We'll see how it goes. Appreciate the kind of general market thoughts
there. I think you guys covered it very well. I'll refrain from throwing much in because I've
put my thoughts out there a few different ways either way. But I do want to, even though we are
consolidating, right? Markets going sideways, which the one point I did want to kind of add to
was, you know,
we talk about whenever a market runs a lot, it consolidates one of two ways.
It either, you know, pulls back and gives a dip type of buy or time consolidation where
it just goes sideways, right?
And let's moving averages catch back up and stuff on the technical side.
And so I think you could view this either way.
And also there's what catalyst do we have other than maybe some earnings
left over this week, but all the big earnings have basically already hit. I think it's just
the uncertainty of where the market goes next based on the tariffs and the bigger macro picture.
So we'll see where we get clarification on that. I mean, that time clock is ticking a little bit
on the tariff side as well. But with the consolidation and sideways action of this market, there are things moving in
the market and there's a bunch of opportunities out there.
I know that you guys have been hitting on and continued to pound the table on.
So let's jump into that section of the show here.
Money Mark, if you want to go.
I know, yeah, we buried the lead a little bit on you there.
But if you want to go ahead and kick us off with what you're watching, what is moving, what thematics are on your radar?
Yeah, no doubt.
Well, as you know, tech and AI is my specialty going back to the 90s when I was picking stocks for Kramer, Soros, et cetera.
So let's kick it off with what happened last week in the world of AI.
First of all, we had NVIDIA and as Godfather
mentioned, it was so-so, but let's peel back the onion a little bit there. It was actually
a phenomenal quarter, hidden a little bit by the fact that we've got the turmoil going on with
China and the restrictions that they're putting on NVIDIA. That's one thing. The other thing was, and this is the big news,
this is what everybody has to realize.
Blackwell had a hiccup in terms of ramping up
earlier in the year, okay?
And that was discussed on the first quarter call
a couple months ago.
But on that call, Jensen gave the green light
and all go signal.
We got the problems ironed out.
TSMC's ramping up.
And we're going to be full systems go the next time we speak.
And that's exactly what we got out of him on last week's call.
It's all systems go.
You're going to see massive increases in Blackwell production in the back half of this year.
massive increases in Blackwell production in the back half of this year. And that's why the market
response to the quarter was not really negative. And then you back that up a few days later with
Dell coming out with their results. And what you have to do with Dell is also peel back the
onion because Dell sells a lot of IT equipment. But within that,
they have been doing a great job of giving us visibility into the AI portion of their business.
And oh my God, that guidance on that business went absolutely berserk. I would tell you that the AI stat of the week was that Dell did 2.1 billion in AI server business in Q4.
1.8, a slight downtick in Q1, which was expected.
They gave guidance to that.
But pay attention to that number.
2.1 and 1.8, both approximately two, right?
Their guidance for this coming quarter, seven.
Seven. And they're conservative. So if they come in at 7.2, that will be exactly 4x.
Four times as many AI servers being sold this quarter than last quarter. And the reason given
was the Blackwell ramp. There was some
hesitation in purchasing because of what was going on with the tariffs. There was some hesitation in
purchasing because, hey, we want Blackwell, not Hopper. And all that is now not completely
alleviated on the geopolitical side, but on the production side for Blackwell, it's all systems
go. And if you look at the most
recent data, Mary Meeker, formerly of Morgan Stanley, formerly a client of mine, put out a
report this week that showed XAI is showing the greatest performance and not a surprise,
they're the most aggressive buyer of chips out there. And Elon says he wants a million Blackwell chips between now and the end
of the year. Bottom line, AI is not a bubble. I've been saying this for two years. I was the one that
called the internet bubble in November of 1999, not the one many did. But we saw that firsthand
in the business that I was working in. We actually brokered deals between technology companies and customers of technology.
And it was clear.
It was a bubble in the internet back in 99.
We saw the RFPs drop off a cliff.
People were tinkering with the internet to make sure they didn't get Amazon like Borders Bookstore did.
This is not what's happening right now.
All we're seeing is an acceleration in what AI is capable of doing. If you are just paying attention to what you're seeing out there, the video that AI is creating is amazing. The results that you're getting out of a perplexity or a chat GPT just keeps getting better. And that is resulting in massive increases in demand to go with the production. It wasn't a lull in demand from
NVIDIA. It was a lull in production. And my contacts in the industry have told me that Dell
is backlogged well into 2026. In other words, they are going to keep nailing their AI numbers
every month after month, quarter after quarter into 2026. Now, what happens to the rest of their business?
I don't know. There's a lot of stuff that goes on there. Laptops hasn't been a strong business
over the last several years, right? So where does that bring us? Let's find the pure place. Let's
find the small cap name. And that's where TSSI comes in. Because as soon as I saw those Dell
results, I was all in on TSSI. I took a little break from them.
I was on, you know, traveling over here to Europe, a couple weeks vacation. I don't like to be
involved in a name, you know, if I don't have access to my contacts, access to my research.
But when I saw that Dell information 4X, now you know why TSSI is doubling the size of that
facility. Now you know why Dell is basically tripling down on the guarantees that they're giving TSSI.
This is going to be a massive couple of quarters up ahead for TSSI.
So, boom, there you go on that one. I revealed all that on my Friday show, which set viewership records, so you can
tune in for continued updates on that on my YouTube show. Now, Dougie, you asked about gold.
Funny you should ask, because Geodrill, G-E-O-D-F, does not get hurt by oil prices. Those expenses get passed on to the customer, but it will affect the actual gold miners who have to pay for all that.
Right. And so GDXJ, the junior miners ETF, which I've been recommending on this show for several months, which is now.
Jeez, Dougie, you don't, you don't have, you don't
have your laptop. I got to calculate this real quick. It's at 69 44 right now. GDXJ. That's,
that's, that's up 65% year to date. Um, you know, so if you've been watching, if you've been
listening into this show every week, um, that's that's massive. Doug, you could tell me better than anybody.
For me personally, it's a little overbought.
So I decided to take profits this week on GDXJ.
And what you can do is there's been a nice little pullback on GEODF.
So kudos to you, by the way. you kind of hinted at that, that they
might get a little pullback there. And you said, yo, we might get a little 10% pullback before it
resumes. Well, guess what? We're at 9.4% pullback on GEODF while GDXJ is sitting here at a massive
high. So that's a great pivot point um by the way yeah oil being up is
bad news for gold but guess what gold is up also so that kind of offsets from a profitability
standpoint in other words the gold miners are not going to stop pulling gold out of the ground
and dollar down is positive for gold positive for gold gold mining, which means that GEODF continues to be strong from that perspective.
And then just a couple others really quick.
Gatekeeper GKPRF.
I reinstituted a buy on that one, I think, last week.
guys have in 17 days won four contracts for video um monitoring on the school bus systems
you got nevada florida indiana virginia all going with gatekeeper systems uh you know systems within
those states toronto looks like it's going to go with Gatekeeper.
That's like the third largest municipal transportation system in North America.
So these guys look like it's completely lights out there. And this is all, everything that I've
said kind of, well, with the exception of gold, of course, comes back to AI. With the advent of AI,
you're not just having monitoring going on on buses and trains systems.
You are having AI monitoring.
So as the video runs on these school buses, if a fight breaks out in the back of the bus quietly, the bus driver may not know what's going on.
But the AI will and alert somebody, hey, there's something going on on bus number 132.
Check it out.
And that has been spurring a great deal of purchasing for the systems from GKRPF.
And then finally, last but not least, IDN with AI making it easier.
You can check out my show.
And I think I talked about it on this show as well last week.
AI is making it a lot easier for people to scam other people and companies for that matter. Amazon announcing an
$83 million heist of their product by Armenian truck drivers who posed, had falsified credentials.
And without that identity verification lockdown on Amazon's side,
these guys can use deepfake technology. All kinds of AI can be utilized to scam people.
The North Koreans are doing it by getting jobs in the US that are online jobs. It's been absolutely
insane. And as a result, you're seeing a huge influx of demand for the products provided by IDN, which has a stranglehold on license verification in North America, patented and relationships that nobody else has from that standpoint.
So that stock has been ripping for us as well. And the little last little nugget I'll give you on IDN is on my show Friday, I announced that I've been working my contacts, working
what I'm seeing out there in the environment, in different platforms, trying to figure out
which two social media platforms are looking at IDN. And what I found is 95 plus percent sure,
number one, Meta is one of those two customers. And number two,
they have not only installed, they have not only deployed, they have put into action
the IDN platform. So yes, IDN is currently generating revenue from Meta. They haven't
announced it yet. We don't see it on their website yet, but it's happening. So stay tuned
because they're going to have to do something to let us know that that exists.
I'd say something more likely on their website than a press release because Meta doesn't like people press releasing their relationships.
But we see that Meta symbol show up on the IDN website.
I mean, you tell me.
All bets are going to be off.
But we see great operating leverage there.
Phenomen phenomenal risk reward
in all of the names i mentioned here tssi idn geodf gkprf and regardless of what the environment
looks like right now when you have low risk and high possible reward those are the names
i go after and and i can hedge with a market bet if i need to
go after and I can hedge with a market bet if I need to.
Oh, one last thing on IDN, by the way, just so far in 2025, 20 states so far this year have passed
laws for age identification verification. And that is mainly to protect kids from the various craziness that's happening online.
Obviously, there's adult content, but an increased amount of that is being generated by AI.
So there's this big influx of dangerous content for the kids.
And now you see 20 states this year alone passing laws for age verification.
Great stuff, MoneyMark.
If anybody has any commentary around that or follow-ups, go ahead and jump in.
If not, we'll continue on and go over to The Godfather.
Yeah, I just wanted to quickly give a hot tip to our fellow small-cap stock picker,
Kyle Adams.
I don't see him on today. Is he here? Yeah. I don't see him on today.
Is he here?
Yeah, I don't see him here.
I don't think he could make it today.
I'm not 100% sure what he had going on.
I know a couple people had stuff
pop up on him.
For all the listeners, last week
there's tremendous
value in this small cap space. It's not just
for the listeners but also for the speakers. So, you know, I did my own deep dive on legacy education, which was a pick that he announced last week, LGCY. Love the capital structure. Solid balance sheet. Only $8.5 million in float.
11 consecutive quarters of 25% CAGR growth.
This is a career college company.
I think they've got six campuses under four banners, and they're acquiring other bricks and mortar career campuses, but they're also expanding through their online offerings.
And this thing is printing cash.
They've got adjusted EBITDA margins that are in excess of 20% and growing.
Like I said, new student enrollments, hitting new records.
They've definitely got some pricing power.
This is like 92% women, by the way.
It's mostly
nursing and other sort of healthcare related, dental, you know, that kind of thing. But
tremendous demand for this. They've, you know, I looked at all of these, these comps, and they're
all trading around 18 to 20 times on a PE basis. This thing's around 15. So yeah, I see 13 to $15 on the stock
and it's trading around 920. So a great pick from him. Just wanted to recap that if he's not here,
because yeah, that is one that should be on all small cap investors radar screens. So I wanted
to present a new name today. The company is called Derm, D-E-R-M. And
as the ticker suggests, they are in the dermatological space. It's a biotech company,
but it is not an R&D company. This is a drug selling company, FDA approved drugs. If you
ever had acne or had teenagers that had acne, you would have heard of the drug
Accutane, which has been the leader in severe acne for years.
That has been their lead drug.
They do have some other drugs for dermatological conditions related to cancer and other bacterial
infections.
But the real reason the stock is at 52-week highs and looks
poised to go higher is that in November of 2024, they got approval for their drug called
MROSI. And MROSI targets rosacea. And if you don't know what rosacea is, it's a chronic skin
condition that causes redness, swelling, visible broken blood vessels at the surface. It's inflammation, facial redness.
For people that are suffering from it, there's burning and stinging and all the rest of that.
The issue here is that it's an autoimmune disease. So it's effectively, it's lifelong. It's all about
controlling it. And there's 16 million people in the U.S.
that have been diagnosed with rosacea, but it's chronically underdiagnosed. In any event,
the incumbent oral drug, something called Oratia, does 300 million a year. This drug has proven proven efficacy superiority, as well as less side effects. So the dermatological community is
relatively small, and they already have a sales base that targets this group through years and
years of selling Accutane and their other drugs. So they cover 90% of all the folks that write
scripts in the derm space already with their
existing sales force. So they're just ramping this drug up. What's great about it is that
it has a much lower cost of goods sold than Accutane. So you already saw,
even though there were only, I think, a month worth of sales in the most recent quarter, you saw gross margins go from 54 to 64 percent.
And by the way, their R&D expenses went to zero.
So they are a sales focused organization at this point.
There was a little uptick in SG&A just because of the additional costs to get this through the FDA.
But now they're in a position where it's launched and it's just about incremental revenues.
The consensus estimates have been doing 70 million this year, increasing over 50 percent to 108
million next year. That's based on the expectation that they'll capture about 20 percent of the
market from this incumbent. I think that's conservative. I think several other analysts that have looked
at this agree with me. That could go as high as 30%, which would effectively double their sales.
So doubling their sales, the company, by the way, is already break-even on an EBITDA basis.
In fact, they've posted six consecutive positive non-GAAP, you know, just EBITDA positive quarters in a row.
So they're about to become a cash cow.
The stock is going to go from losing 20 cents this year to, I think, consensus estimates are around 90 cents for next year.
So you're trading at less than 10 times on a PE basis.
It's less than one
and a half times on an EVB basis. And the thing that isn't in any of these numbers, which is the
real big catalyst that I'm looking for, is that they retain all the rights to this. So they're
in the midst of negotiating licensing in the international markets for this drug.
And that could add another $100 million, which would again double.
So they're making great progress on insurance coverage for this drug already.
I think they've got some 24% or so of the lives covered.
And they're seeing good traction on that. They got it in their first quarter conference call that they expect to see that ramp significantly over the
next 12 to 18 months. And by the way, this is $950 a month treatment. They've got patent
protection on this right through till 2039. Yeah, DERM stock is bouncing close to 52 week highs here at $8. And for good
reason, I think even a reasonable 15 times multiple on this and you're easily $13 plus,
which is a nice lift from $8. I have another name. If we have time, come back to me. Otherwise,
I have another name. If we have time, come back to me.
Otherwise, I'll leave it there.
I'll leave it there.
Got plenty of time. Dougie Fresh, do you want to jump in and anything that's on your radar or any thoughts you've got?
And then we'll get any last picks from Godfather Money Mark.
Sure thing. So, plug. I've been talking about that one over the last few weeks.
And that one plugged away right after last week and went pretty
high up it's just pulling back right now it does look like it's going to set back up off the 20 and
try to roll back up so just watching that on the pullback again as it just ran up in rxrx i had
mentioned that one and that one i think is up today it is up a little bit and it does look like
it's setting up looking pretty good right there.
Recruiting pharmaceuticals or something like that.
It's hitting a 20.
Looks like it wants to get into that channel and move its way up to the 50 right there.
It's at 438.
It looks like it wants to get up into the five-hour range.
So you can watch that one as well.
And then I'll just run through the ones that they were just talking about because they were great picks, and I'll just do it real quick because that TSi is setting up like a beauty guys mark's not kidding when he's telling you that thing looks
great watch if it pulls back it's like 1378 you could possibly get it in the lower 13s just watch
it the next few days it could pull back but it is setting up to get cruising right there so absolutely
keep an eye on that and that geo drill again is a great one. It is
just a little bit of pullback going on and then it's just setting up to get moving. So absolutely
keep an eye on that one as well. And let's see what else was there. There was a GDXY mark that
I think was a great idea to take your profits there. Today was probably a beautiful day. It's
getting up into that 70 area, hitting that top line.
Some great resistance right there at that 69, 40 area right where it's at.
And it is up like over four hours today.
It could get into the top, but I don't know.
They've been hitting that hard resistance and pulling back.
So I think that was a beautiful call on your part right there.
And then that IDNn you talked about it
last week i've been watching that thing and that thing popped up today that's a beauty right there
and for whatever reason i can't get to the otcers because my uh trend spider decided that it didn't
want to work real quick but anyway my internet came back and then that doesn't want to work
legacy guys that was great you are kidding godfather
kyle was on the money with this and it's about to get cruising it just stayed up i was watching
this as well it's been sitting right over that trend line right there and it's curling up it's
up like 23 cents today and it is it's about to get into the top and run and then that derm you
were just talking about was looking pretty good it was're right. It's up at 52-week highs, and it is very bullish.
I would just watch if it does pull back just a little bit and into the sevens anywhere.
It's at $7.99.
It was just over $8 a minute ago.
Yeah, it doesn't look bad right there.
Like I said, maybe a little tiny pullback, and then you will see that continue up.
So some great one from you guys and
godfather let's hear another one from you i'm interested so uh i i have to um uh keep one pick
back because i haven't officially launched it in our discord but um it's a name that uh has gone
up 4x uh since they announced their 10k at the end of March. And I believe when they report their
next quarter, the stock will double further. I know that sounds crazy, but it's got a float of
three and a half million shares. And they've got a cash problem in so much as they've got so much
cash, they don't know what to do with it. So come to Story Trading Discord to get your fill on that
one shortly. But the freebie that I wanted to give away here was a name that should be on all
of your radar screens. Obviously, one of the hottest theme sectors here is power, to the
extent that obviously data centers are sucking a lot out of the grid to the extent that Trump recognizes that and is doing whatever he can to fast track the nuclear sector.
We've got three primarily listed primary three SMR companies, small modular reactor companies listed NNE, Oclo and SMR.
You're probably all familiar with them. Their market caps, by the way,
are 1.3 billion, 7.3 billion, 4.3 billion, respectively. There is a SPAC, the ticker is
GSRT. So Golf, Sam, Romeo, Tango. There are no warrants listed on this. It's just GSRT. They are in the midst of
merging with Terra Innovatum, which is a company that does exactly this. They're another micromodular
nuclear reactor company. A couple of benefits to their technology is that they use standard
LEU or low enriched uranium. All of these names,
if you dig into them, they're really, you know, the commercialization is on the come,
some of them all the way out to 2028. This name is no different, but the transaction at $10
values the company at 475 million. But 230 million is going to come in in terms of gross proceeds from this deal.
So here you have a market cap of less than a half a billion relative to those market caps I just
mentioned, a merger that's expected to close in the second half of 2025. None of this is, you know, inside
information. It's all public, but I just don't think that it's part of the nuclear conversation
the way it should be. And by the way, the ticker will ultimately change to NKLR, nuclear. So it
will be, you know, part of that zeitgeist. And it would not surprise me to see this thing at least obtain the valuation of NNE, because by my due diligence, at least a big part of the claims to technology that NNE are boasting are effectively groundless.
I don't want to say it's an outright fraud, but there's a reason it trades at a quarter of SMR and a seventh of Oclo's market cap.
So this one appears to have real technology.
In any event, that should be on your radar screen.
GSRT.
Leave it there.
Hey, Godfather, I got a quick question for you.
What about your GRRR right now, that Gorilla technology? It's up at 17 and it almost looks a little bullish. I was looking at it yesterday. I thought of you. I was like, I wonder what Godfather thinks about this. So I'm picky where I find my entries and exits on this,
and I have been playing it just on the short side.
But for me, it becomes, so it has to be compelling, right?
Because, you know, these fraudsters can pull out all kinds of,
you know, fake news releases and the thing can fly.
It does have high beta.
So for me, anything over 18 is where my first alert gets tripped.
But if you get closer to the 19-20 level, just look at the chart.
It's been a reliable short in that area.
And then you cover in the sort of 15-16.
So here at 17, it's a bit no man's land for me.
Yeah, like I said, my alerts start getting tripped at 18.
I'd like to see at least high 18s and then re-enter on a short.
I think you're about to see it pretty soon.
And for whatever reason, it just looks like it's setting up to run into that channel
and hit that 50 exactly where you're talking about at that 19 area.
And it probably won't get through at the moment moment but it just seems like it wants to run
up i was like i said i saw it yesterday and thought about you so uh keep it just keep an eye
on it you might be shorting it down real soon great i look forward to it's been a it's been a
it's been an atm for our community yeah no i saw you uh mention it in the uh discord and obviously our the discord's amazing so check
that out guys and i don't know if money mark has anything else for us uh this afternoon do you have
any other picks or any comments or anything money mark no man i just uh want to agree with what
you're saying about tss uh you know not not everybody understands the analysis there. They're not covered by Wall Street analysts.
So I have my model on the company and was able to live on Friday update that model based on Dell's guidance.
And I'm looking at a dollar plus EPS run rate coming up real soon.
So you've got the company that that has a buck 50 in cash so it's trading at
closer to a enterprise value closer to 12 than 1370 where it's at right now um so you got an
evia 12 ramping up to a dollar run rate with unfettered demand for the next several quarters
i mean come on bro you know that's a that's a PE of 12 on the run rate that I see them hitting.
Yeah, no, it's going to hit that 1493 resistant area right around there, 1480, 1490,
and it's going to blast right through it.
And that's where it's going to really start taking off from.
And like you said, it's in the 1380, so you're dead on with that dollar going up.
And that's where you're going gonna see it really start taking off
So yeah, this thing is looking real good. That chart looks nice right there with TSS. Yeah, my risk reward chart has it
peaking out at
2080 from a fundamental perspective, so we'll see how that matches up with the technicals once everything blows through
And I could see a hit in the 20 area with no problem
So yeah, it will be interesting because that's where it's going to get set up again
You'll see a little pullback and then yeah, it'll probably run up some more just looking at the
Looking at it in down the road like a couple months down the road trying to see it
But yeah, no, it's looking great guys
So obviously keep your eye on that TSSI and all the ones that we were mentioning. They were all great
Ideas right there. I went were mentioning. They were all great ideas
right there. I went through them and they were looking great. So thank you guys. And Godfather,
you have anything else? Sorry, go off of me here. Yeah, I just want to point out that
Core Scientific, C-O-R-Z, there's Z hitting 52, or sorry, hitting a new high of the day here.
The reason I point this out is because, you know, as I said in my macro comments, there seems to be some shine coming back to the trade.
I think NVIDIA made it clear that, you know, data centers are going to continue to rage here, both for training and especially for inference.
And we saw APLD in this deal with CoreWeave.
Of course, CoreWeave has gone up 4x since its IPO.
So clearly there's a lot of market focus on data centers still.
Core Scientific, C-O-R-Z, not to be confused with CoreWeave, C-R-W-V, they were the leader in terms of converting Bitcoin mining compute power to AI, or HPC as they call it, a high-performance compute.
Now, the reason I mention this is because it's come back on my radar screen.
There's been better ways, of course, playing Bitcoin.
I think Bitcoin mining is a terrible business.
It's been shown through its capital intensity.
And otherwise, there's just no reason to play the miners to get leverage to Bitcoin.
It leaves this thing as one of the primary HPC plays.
If you look at the multiples on CoreWeave and you look at the multiples on Nebius, which I also very much like,
it's clear that CORZ is lagging materially.
And what's important to note here is that through the exercise of five
options,
core weave is taking a total of 590 megawatts of power from Coors for HPC. That represents 66% of all of
the megawatts that Coors has in its pipeline. CoreWeave made a bid at 575 cash exactly a year ago, almost to the day today, for this company,
back when they were private. Why is that? Well, they're already representing most of the business.
And by the way, the remaining 270 megawatts is currently dedicated to Bitcoin mining.
The margins are way higher on high performance compute. So I'm looking at this and I'm going, okay, now with CoreWeave, having done what it's done since its IPO, it's got an enterprise value or a market cap north of $60 billion.
CURZ is flatlining here around $3.7 billion.
It just makes sense to me that CoreWeave ultimately takes this out and then converts that
remaining 270 megawatts. That's currently dedicated to Bitcoin mining, to HPC, because
first of all, megawatts are difficult to come by as are hosted facilities. And this gives them both.
And now they've got the super expensive paper to work with. They can clearly pay more than $575.
So there's a real valuation disconnect here.
It's not just me that's pointing this out.
Jeffries and some of the other analysts have pointed this out.
The only way for CoreWeave to meet its sort of upside scenarios is that it needs to add
like 1.3 to 1.5 gigawatts worth of power. Where is it going to add like one and a half, 1.3 to one and a half gigawatts worth of
power. Where is it going to get that from? It could, it could tuck in, you know, a big chunk
of that, like close to 300 megawatts through this acquisition. So I think that's worth keeping an
eye on. It should be, you know, in any screen that you have that's got data centers on it should be you know in any screen that you have uh that's got data centers on it
yeah talking about data centers and ai guys and that's what um you guys have been talking about and obviously nvidia and everybody's talking about the production of it i'm involved with
a project right now i've been involved with it and it it's obviously using AI. And just to give you a quick idea, it's so crazy how fast it moves that we have a developer and a couple of engineers that are working on this thing.
And they just told me over the weekend, they said, yo, we had to delete half of what we already wrote.
And it wasn't a bad thing that we had to delete it, but the new update came out.
And it's so good that it made what we already wrote for for the last four months.
It just blew that out the water.
And now we just kind of rewrote it.
And I was like, what?
They were showing, guys, I'm telling you the future.
I keep saying, I don't know what any of these kids are going to do for a job that are coming out of college because AI is going to take every single job. And even these guys that are working on this project,
they were telling us that like 75% of their friends that do AI and did the programming
are now laid off because AI is taking their jobs. So now they're teaching the AI to just do
everything. And yeah, I don't know who's going to be working anytime soon, but I'm telling you in
the next two years, guys, it's going to be happening fast i've
been working on this project for two years we've been working on it and now it's getting like
really really close and like i said every time there's a new update they have to like delete
everything and they redo it and it's just so much better and faster so every four months it seems
like it just gets to a whole nother level. And they're not you're not kidding.
The it's just crazy.
The amount of the amount of the companies that are just using AI, they're using it for everything.
So the orders are just going through the roof and no one can keep up with the with the amount of orders that they're going to have.
So, yeah, AI is taking over everything. That and robots, guys.
I'm telling you, that is absolutely...
I've been watching this stuff happen
and you see what Tesla and all these other companies are doing.
It's absolutely insane what these things can do.
And I've had a sneak peek at some of them
and it is crazy what's going on.
So yeah, I'm just telling you,
AI, just if you're not into it,
I'm telling you, you better learn it
because it's going to take your job
very very soon and then you're gonna have to figure out something else to do i think the only
people that are really going to be left working are like plumbers electricians things of that
nature handy people mechanics they'll train the robots to do that as well i think teachers will
be one of the last things phased out just because you like human interaction with the children.
So they'll be safe with their unions.
But I'm telling you guys, even doctors, surgeons, they're not even going to exist.
It's so crazy what these things are doing.
It's absolutely mind blowing.
I was blown away two years ago when this hedge fund was showing me stuff.
And now these guys are on just a whole nother level.
Like they just make money hand over fist using AI. It's just the most craziest thing I've ever
seen. And I'm talking, I've been doing marketing and internet stuff for over 20 years. I had a
company that went viral 20 years ago before viral was ever a name and a word. And yeah,
how hard I used to have to do a lot of work and now you just like put it in ai and
it does everything perfect for you almost and way better than you could ever do it it just blows my
mind the amount of technology and like i said looking at this project in the form every four
months it just they're deleting half of it and redoing it even faster and better so just keep
that in mind everybody i. I tell everyone I talk
to, especially people with kids, I'm like, yo, you better tell people look into unions and stuff
because I don't know what anyone's going to do for a job. So I'll leave you with that.
Yeah, Dougie, I mean, you're not, you're spot on. So my best recruiting contact in the tech industry does recruiting for Amazon, Google, Facebook, you name it.
These guys aren't hiring right now.
And part of the reason is that AI is generating a huge chunk of their code.
I do recommend the All In podcast.
They've given some good podcasts.
I think last week's gave you some information about that.
And then from the legal standpoint, you talked about lawyers. Bro, I've actually been running
circles around my lawyer's assistance in terms of being able to generate information regarding
the legal matters that I'm involved with. They need to learn how to use AI because AI is actually coming out.
You could actually throw a contract into AI, ask it if it's legal in a certain state,
in a certain regard. Can you name case law that justifies the response given? And you can
eliminate a lot of those billable hours on your own. Same thing with medical, right?
I haven't, bro, I haven't been to a doctor in two years.
I take care of everything on my own at home just using AI.
You just have to make sure that it's not hallucinating.
But other than that, man, I mean, it is the AI era and it is not a bubble and you definitely want to be involved.
And it's just beginning, honestly.
I mean, it's been around
for a good two years now, but before it was just in that learning phase and people were just starting
to get used to it. And now it's just becoming like a whole new world and everybody's going to
be using it. Every business, if they don't use it, they're not going to exist because obviously
they're not going to be able to keep their costs down. Their overhead is going to be too high. You're going to be cutting employees out everywhere,
guys. It is absolutely mind boggling what's going on. And I just don't know what people
are going to do for a living unless you have like an AI company.
People are going to figure it out. People are going to figure it out. Don't worry about that.
You know, I think, you know, people will reinvent themselves. The people used to make horseshoes and saddles figured out what to do when cars came along. You know, this this could usher in an amazing era for the economy, because, like you said, if it drives down costs for lawyers and doctors, et cetera, et cetera, you know, that's deflation.
et cetera, et cetera, that's deflation, right? So if you have something that can counter
the inflationary forces, make us more productive, listen, I've just had the best 12 months in the
stock market of my life, and it's because I can go through stock picks much faster than I used to.
I used to spend 100 hours on 100 names to find 10 that I wanted to spend another 100 hours on to find one that I wanted to spend another 100 hours on.
By the way, that's how much time I spend on each of my picks.
But now because of AI, that first 100 hours gets cut down to like one.
That's pretty impressive right there.
Pretty impressive right there.
That's a big cut in time.
And then you can obviously focus on much better things in life and also in the market.
So, yeah, it's just all around everywhere.
It's just cutting down time, expenses.
And you were saying about the lawyers.
I'm positive.
I read a story last year.
This was the craziest thing.
I forget what country it was real quick.
Some guy, he wasn't even a lawyer, he used AI. He started taking all cases and he was winning them. He won
like five, six cases, like big cases in court. It might've been in like South Africa or somewhere.
I forget where it was. And, uh, until they finally realized the guy didn't have it, like he didn't
have a lawyer thing. He didn't even pass the bar or anything. He didn't, he was just doing it on AI.
He was smoking all the other people. And this was a year ago and it was just starting out. So
yeah, right now it's so crazy. Like Mark was saying, you can eliminate all your lawyer,
your lawyer documents, all that. So you just tell it what you want and just hit go. And then it just
prints it all out. And by the way, that's not necessarily bad news for lawyers, right? Because I still need my lawyer
from a procedural standpoint,
filing documents, going to court,
knowing exactly how to act in court
and all that stuff.
I don't know any of that stuff,
but imagine that my lawyer,
instead of me running circles around his assistant,
if they adopt AI,
then they could take advantage of that, right?
They'll be able to
take on more cases get through more things be more successful get a higher win rate and it's
just good it's better for everybody yeah no i agree so just something to uh keep in the back
of your mind everybody as we've been talking about ai and obviously everybody's talking about ai
after nvidia and all these other companies but
yeah every company is going to be using it in some capacity and everything and just like you
as we're talking about uh your public transportation they're moving all the camera systems the AI
everything is becoming AI guys it's just the technology is so crazy I want to if you get
into anything that really is like advanced like i'm telling you
and you get to see things that you just generally don't see on like social media or on the regular
computer and these engineers that really know how to build things you're just i'm blown away guys
i'm telling my jaw drops i'm like how the hell i think it's interesting it's crazy some of the
stuff i think it's interesting that we're finally moving from like the playing with AI to the real like application of AI.
Like I think most people are going.
Now they're actually.
Yeah, that's 100 percent right.
Well, because, you know, what you got, you know, it was funny because this this time last year we were seeing a little bit of a lull in the chat GPT utilization.
Right. And what I said was, was, you know, obviously, whenever a new
technology comes out, you get the tinkering, everybody wants to check it out, right? But
the fact of the matter is, human beings are creatures of habit. So you got a bunch of people
suddenly flow in and say, what is this chat GPT? Let me check it out. And you saw the spike in
utilization. And then they check it out. and then they go away for a little bit
because they're used to using Google or whatever.
But slowly but surely they find,
you know what, maybe I'll use AI for this.
Maybe I'll use AI for that.
And then that early adoption that falls off
turns into new habits.
And that's what's happening now
is you've got a lot of folks
and I'm sure a lot of people listening here
have gone transitioned, right, from using Google 100% to maybe using Google 80% and AI 20%.
I can tell you now my Google searches is down to maybe 10% of what it used to be, and the rest is all AI.
Yeah, that's a great point. I know my wife literally uses AI. She uses no search engines anymore. And so yeah, that's a great point right
there, Money Mark. So yeah, Google will obviously be pivoting as they try to make money in advertising
because if people aren't using the search engine as much they'll have to pivot there so yeah it's a lot of crazy stuff going on but ai is obviously the future and it's
just getting started guys so if you're not involved with it or have no idea just start looking them up
perplexity chat gpt just start messing around and now the crazy thing like you were saying people
were uh interested in it but now they're actually starting to train these things to be able to work like human beings and like really like process things like almost perfectly.
So that is the next big thing that we're seeing.
That's the big wave right now.
You're actually being able to train.
Right. That's agentic AI. So if anybody wants to look up and see what that's all about, you type in the word agent with an IC at the end.
Right.
That's agentic AI.
Agentic AI is where we're going next with all this. It's not just about, you know, by the way, I use perplexity.
Just download perplexity. If you haven't, if you don't have chat GPT or perplexity or something like that, just download perplexity onto your phone and you can start using it immediately.
There's no tough setup or anything. You just ask it a question and you're off and running. But now it's not just about
answering questions. That's just like, that's the cute beginning of what we're going to see here
with AI. You see revenues going through the roof, anything that's being reported out of OpenAI, out of, I just had a blank now on
the other one, gave us some view into their revenue run rate. These guys are going to be,
these guys are generating billions of revenue already. It was next to nothing a year ago.
And now we've got literally billions going to tens of billions of revenue that these
guys are going to be generating. And that's just off of folks like you and me, you know, paying the
professional, the pro version fee to get access to more sources and things like that. But it's still
dead free for a lot of folks. I think what perplexity has done, it's really ingenious is
I was using it for free for a long time.
And then what it would start doing is every once in a while, a question that I would ask, it would come back and say, we're going to give you the pro answer using more sources for free this time.
And it would give the answer.
And I'm like, wow, that's actually a higher quality answer.
And it got to the point where I said, you know what?
I want that high quality answer every time.
And I'm using this so much every day.
What's 20 bucks a month?
Nothing.
It's less than a dollar a day to get any question that you have on your mind ever answered.
Not even just the questions, though.
You can create your images.
You can just create everything.
Software code, videos. Yes, I was going to say. Yep, that's what I was going next. questions though you can create your images you can just create software code anything you can
believe on yes i was gonna say yep that's what i was going next i was gonna say if you don't know
how to code you can sit there and write code for stuff it's so crazy i mean it's it's right and
even you know for just on the basic level right if you if you look at my youtube channel look at
the thumbnails that i used to have and look at what I have now. Every week I just say, okay, what's the theme of this week, right? And, you know, last,
was it last week of the week? The week before when I gave the TSSI pick and reinstated that,
I said, you know what? You know, we got Elon Musk buying a million chips and that's going to send
TSSI through the roof. So I just went into my, uh, my AI and I
said, listen, make me a picture of Elon Musk holding a sign that says TSSI exclamation point.
And that becomes my thumbnail. I don't have to go searching for thumbnails. Just give me what I need.
Boom. And we're off and running. I mean, it's just endless. We're going to see like an Avengers
movie probably within the next five to ten years
entirely made with ai right you're gonna get the script right probably less than that i'm telling
you money mark these hedge fund guys showed me something crazy this weekend yo i'm telling you
they could take in the next six months we won't even be doing videos ourself they can take an
image of you literally take your voice and make the most
part like make a video like you had just recorded it you would never know the difference they were
showing me this stuff i was just i was like holy shit dude this is crazy like i couldn't believe
what i was watching yeah yeah they did it they took me and did it and they were messing around
and i just couldn't but it looked like i just shot a video in my basement in my studio i couldn't
believe it i was like they're like in the next months, you'll be doing this all the time.
I was like, OK.
And they're usually on point.
So, yeah, you're definitely going to see that rule.
This is what I like about Disney long term, right?
You've got a company like Disney that has literally hundreds of characters, universes.
You've got Star Wars.
You've got Marvel.
If I was them, I would make a highball
bid and buy out DC. But pretty soon, right? Like Marvel has made stars, right? You see like Thor,
right? Who was that guy before he was Thor? He was doing soap operas in Australia. But in the
future, now that guy's commanding tens of millions of dollars per year for movies.
Well, what happens if AI can look at, okay, what is the prototypical, charismatic, hero-looking character and create that and mimic how they act, how they speak, everything else?
And then what's going to happen is Disney's not going to have to make stars anymore. AI is going to make the stars for Disney and Disney's just going to use its
property, right? It's intellectual property for guardians of the galaxy, for Avengers,
for whatever. And they're just going to be able to move forward and introduce new characters
with AI based actors. It's only the actors like you get The Rock and Tom Cruise
and guys like that.
Those guys are going to live forever.
Like, even after they're dead,
you're going to get a Mission Impossible 100, right?
And it's going to have Tom Cruise,
and he's going to look 20 years old,
and Tom Cruise will have been dead 30 years.
Yeah, no, that is exactly where we're heading,
in that direction for sure.
And like you're saying,
now all the movie stars and celebrities,
they basically know their time's ticking too
because AI's just going to eliminate their job.
Who needs it when you can just create it right there
and not pay somebody $10, $20 million to show up?
You don't have to worry about them showing up.
You already just created it.
So it's just crazy.
Well, why do you think there was a strike not too long ago?
Yeah.
They saw the writing on the wall.
They definitely did.
Yeah, no, they definitely knew.
Yeah, no, they've seen what I just saw this weekend, guys.
And I'm sure they've already been
privy to i'm telling you when i these guys showed me this i my jaw dropped i was like yo you guys
are nuts like this is some crazy stuff and they're like oh this is just the tip of the iceberg they're
like we do all like these guys are just on a whole nother level and uh yeah it's just crazy
what they always show me i love meeting with these guys and having a uh having a meeting
with them because every time i'm just like get off of here and i'm just like my mind is completely
blown what's going on in this world and uh i'm just happy i get to see it ahead of time i guess
because like i said it's it's just a lot of great stuff going on right now so just keep that in mind
and obviously get into the well this is i mean this is why we're seeing what we're seeing, right?
I mean, there's no pullback. You've got core. We've going through the roof.
You got AI server shipments out of Dell going up for X in a three month period.
I mean, that wasn't a year over year forecast. That was a quarter over quarter forecast.
That's insane for a less than two billion dollar business to go to $7 billion in a three-month period.
Hey, that's just what we're dealing with now, brother.
Nah, it's a different world, and I love it.
And use AI to your advantage.
Like I said, you could tell when someone just uses AI, but you can use it to your advantage
where you can make your writing look like yours, edit it a little bit, make it look great, all kinds of things. I mean, there's so much great stuff you can make your writing sound like look like yours edit it a little bit make it look great
all your pet all kinds of i mean there's so much great stuff you can use it there's even an ai that
will sit in your zoom meetings with you and give you a rundown and reminders after yep yep exactly
no way i didn't yeah otter otter's one of them um i think it's even a free plan on it but
you know you take calls or meetings With people or even if you
Sit in somebody else's
Zoom presentation or something
You can have an AI sit there and it'll take notes
It'll send you an email summary
It'll tell you actionable items that were mentioned
That's unbelievable guys
Just listen to what we're telling you guys
This is stuff that you should be paying attention to because honestly, like I say, it's just going to take
jobs, but you can also utilize it and use it to your advantage to create wealth because, uh,
people are obviously using it to build massive amounts of wealth. That's why there's so much
of it being sold because it's so great and it's such a great way to make big profits so
it's just something to keep in mind and thought i'd bring that up and that was a great conversation
right there guys so appreciate that for sure wait wait wait to run the show over half an hour for
dougie but no absolutely dead on um and actually have to hop into my next meeting but i'll be back
next week and every week with the AI update.
And, you know, great show, great conversation, Dougie.
Appreciate it.
And great picks out of Godfather.
Thanks, guys.
We'll catch you next week.
Awesome.
Thank you, Money Mark and Godfather and, of course, Empa as always. And, you know, we'll have Ben back next week and the rest of the crew, Spartan and Kyle
and everybody else.
Awesome, guys.
Thanks for tuning in, everybody.
As always, our small cap show.
Check out the Discord with Godfather.
Check out Money Mark.
Check out myself, Dougie Fresh.
Em's on all day, guys.
He's like the main stock guy now, I think.
He's an amazing host, really. He just does's like the main stock guy now. I think he's, he's an amazing host really.
He just does great, great stock spaces and everything.
He's on live doing all kinds of great stuff.
So everybody on here, check us out and thanks for tuning in.
And I hope you guys enjoyed the little AI talk there at the end.
So we will see you next week.
Emp, I don't know if you have anything to say to head us out, but thanks for having
us and having me.
So enjoy the week, everybody.
I appreciate you filling in some shoes today for Ben while he's out and about enjoying his time away from the charts.
But great show, as always.
A little bonus content around that AI discussion at the end.
I love it.
Kind of a slow market.
We've got a little pump up here, but I am going to close this out.
If you missed anything from the beginning, of course, this is recorded. As always,
you can go back and listen to it at any point. It'll be right there on the Wolf Financial
Timeline. And with that, I am going to close this down. Our next space will be,
we still have live trading going on over on Wolf Trading. And then our next space for me will be
Stocks on Spaces. We'll have a couple hour discussion around the markets there and stock picks for the week coming up.
Spoiler alert.
Usually we go spoiler alert.
Ben's in the lead.
But this week, spoiler alert.
Imp is in the lead.
I've got a commanding lead right now.
So we'll see if that holds for the next couple hours, hour and a half.
And we'll get new picks out for the next week.
And yeah, all kinds of conversations. picks out for the next week. And yeah,
all kinds of conversations. You can see the full schedule right there.
Pin tweet on Wolf Financial. Big shout out to the small cap crew. Thanks for keeping the momentum going on this space. It's been a great space. One of my favorites of the entire week, to be
100% honest, learned so much from this space. And a big shout out to the crew, and we'll see you
guys on the next space thanks everyone Thank you.
