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SMALL CAP INVESTING
Recorded: March 31, 2025 Duration: 1:12:12Space Recording
Short Summary
The discussion focused on market sentiment, with participants expressing concerns about economic uncertainty, potential recessions, and the impact of tariffs. Several stocks were analyzed for their potential in the current market environment, with emphasis on shorting opportunities and cautious long-term investments. The conversation highlighted the importance of understanding market dynamics and being strategic in investment decisions during volatile times.
Full Transcription
Thank you. What is up everyone?
Happy Monday!
It is Monday. And you know what that means here on Wolf Financial.
It means we have our small cap investing show. The show we run each and every Monday at this time, wherever you're at. It is 11 local time for me. It's 12 central. It is 1 eastern and it is 10
on the east coast. And a quick look around the
markets. We are up decently off the lows that we made this morning. We did gap down and have moved
back up just a little bit. Obviously, the glaring thing is the Liberation Day on Wednesday and all
the stuff going on. We also have the non-farm payroll report this Friday.
So a lot of macro stuff to talk about. I'm interested to see what everyone's thinking,
what everyone's thoughts are, and if they're finding any alpha anywhere. I'm sure with this crew that we have, they're definitely finding some alpha in different places. And then in general,
let's kick it off. Ben, I know we've got you up here. I want to throw it over to you first.
We've got the whole crew, I think, pretty much up here, maybe one or two stragglers. But Ben,
I want you to kick us off. Let's get into some market sentiment and some general thoughts.
Obviously, we've pulled back. We had our bounce, and then we felled that back down slightly new
lows so far today. But what are you seeing out there, well this is shit show um so look I've been
negative five for a few weeks but my analysis from a technical perspective combined with the
headlines and everything we're seeing I'm talking spy because it's going to impact small caps here
but um it's just got a lot worse I did a whole technical deep dive last night for a community.
Previously I was talking about a low of 505 to 535 on SPY, which now looks like it's coming
into full view.
I think that's a pretty good chance we see that, unless there's some miraculous, I don't
know what Trump can do to stick save this tariff situation.
I don't think so.
So previously I was talking about 5 of a 5 to 535.
I mean, it seems reasonable.
But we could get into this 488 range here.
The 488 level on SPY would be exactly a 20% correction.
There's some candle support there.
And it will coincide with the rising 200-week moving average within a few weeks.
That will be a 20% correction on SPY. The problem with this is no matter what your take is on
small caps and IWM and interest rates and whatever your bullseys may be for the second half of the
year, when you have a liquidation like this in the market, it's going to impact
everything, especially e-liquid small caps.
So it's a problem.
I mean, if you're only a long-term investor, like I think Moneymark probably mostly is,
at least the audience he speaks to, I think is mostly talking about long-term investing,
then there's probably lots of opportunities in here.
And there's probably lots of opportunities in here.
And if you have a long-term timeframe, great.
And if you have a long term timeframe, great.
But it makes it extremely challenging if you're trying to generate short term income from
trading, which is what I do in our community.
Most of my money is in long term accounts.
We talk about the long term investing in our community, but we try to find the alpha in
the short term.
So it gets really, really hard when SPY is selling off like this and everything's being
liquidated.
It gets very hard to find that alpha in small caps in the short term.
That being said, actually, I like a couple of money marked stocks today.
So TSSI and ECOR, I think, both have the potential to outperform here in the very short
term.
We have a nice technical support after decent earnings on TSSI here at 760, 200 DMA.
E-Core Mark is going to talk about the news that just hit this morning.
And then later I'll talk about one more small cap. But yeah, I mean, I'm finding, you know, I know TSSI very well from the own research I did, ECOR is more a money
market stock, but, you know, when you get to periods of volatility like this, you really
need to understand what you're in in order to be on the right side of the trade.
Otherwise, you can really get shaken out and turned upside down when you're trading something
during extreme volatility that you don't understand.
It's almost guaranteed you're going to be buying high and selling low.
So that's why I see some opportunities here because I understand the fundamentals
and the catalysts and TSSI and ECOR.
So, you know, looking forward to Mark's thoughts on those, but those are my comments.
Yeah, great thoughts.
Money Mark, you were mentioned there a couple of times.
So if you want to go next, we'll throw it right to your direction.
Yeah, I mean, look, we've been on a yellow alert for a couple of months, so I'm not going
to keep reiterating all of that.
But what I will tell you is as I look for signs of a bottom, you know, we've got plenty
of technicians in here. I'm more of a fundamentalist, risk-reward-oriented
person. And the data points just keep eroding. And what I'm looking for is at different levels.
I talk to a lot of CFOs. I talk to a lot of CEOs. And I also pay attention to people who do that as
well. A lot of my colleagues do that. We trade notes once a week
at noon before my show at two on Fridays. And it's just getting worse. The executives
don't know what to expect. They don't know what to expect from the tariffs. They don't know what
to expect as a side effect of Doge. If a bunch of people in government lose their jobs, yeah, that could be good for the long term if those people weren't doing anything productive.
But in the short term, if they go out of work, then what does that mean for their impact on the United States as an economy?
So this goes in lockstep with everything I've been saying, which is we're going to continue seeing a weakening economy and a lowering of interest rates until we get closer towards mid-year where we can get that stuff refinanced.
So my yellow alert stands, and that means be careful.
When you talk about trades and trying to find alpha in a market like this, this is a down market.
So if you want to find alpha, find alpha on shorts, because that is the path of least resistance.
The names that I have picked out there right now are very few, very select, and extraordinarily
hedged with shorts against the stock market. And I've continued to
pound that drum. And if I sound stronger about that today, it's because I want y'all to hear
this. This is a bad market to be in. This is a bad economy to be in. Stop fighting upstream,
stop buying new names, focus on what you have and whether
or not you should have it. And if anything, short the market or find some good short stocks out
there if you want to make money in this environment. Because that's what it's all about.
I don't know what about a yellow alert. A lot of people don't understand, but this is a bad market.
Mark, you sure it's not a red alert now?
I was going to say, is it not red or at least orange?
Well, yeah, what you got to realize is that I've only had one orange alert in my entire career, 30-year career, and that was COVID.
And I've only had two red alerts in my entire career, and that was the peak of the internet bubble, which I called like me three
months early and the peak of the financial crisis, you know, before the financial crisis,
that was five months early. I was even a month or two early on this yellow alert. But if you
understand COVID is yellow alert, internet bubble and financial crisis are red alerts.
How can I make this more than a yellow alert?
That does make good sense. Good context there on that money, Mark. Yeah, yellow alert in context with that actually sounds very, very reasonable. Obviously, the uncertainty, the market hates
uncertainty. We know that, right, Mark? The market hates the uncertainty, and that's all we have
right now. And who knows if we get any clarification by the end of this week or the end of this month.
Right, and that's exactly right.
And here's the thing, right?
Where I continue to see negative data points, I see CFOs and CEOs saying, we don't know what's next.
So the best thing for us to do is to freeze.
Freeze means do nothing.
Don't grow. Don't expand. Don't hire. That is equivalent to 0% growth.
Anything less than 0% growth is a recession. And that's why you see Goldman Sachs upping
their recession odds to 35%. Permabulls like Ed Yardenny upping his recession odds,
perma bulls like Ed Yardenny upping his recession odds, lowering his S&P price target. When you see
bulls lowering their expectations week after week, that's a degradation in the view. And even if you
think things are going to be okay, if everybody else doesn't, they're going to sell in your face.
So you got to be careful. A yellow alert, for Money Mark, yellow alert is bad.
In many people's cases, it's a red alert. So if that's the way you want to look at it, yeah,
this is a red alert. Appreciate those thoughts, Money Mark. And yeah, I can't help but,
excuse me, excuse me, agree uh there with the just all the
uncertainty going on doing nothing i feel like that is the hardest thing for a trader for an
active investor but i think it's super important to hammer that home that there are periods of the
market where you do do nothing um kyle let's go over your direction next kyle what are your
thoughts around uh market sentiment in general and maybe doing nothing,
yellow alerts?
What's on your mind today?
Well, I kind of have a unique perspective in the sense that I sell enterprise software
to companies.
And this morning, a CFO got back to me and said, hey, Kyle, we're not going to make any
purchases for the next couple of months just because we don't know what's going to happen.
So I kind of just want to reiterate what Mark said and kind of give my thoughts on that.
It's like, I mean, if people are not going to be doing anything and not going to be spending
money on things like software, then I think the market could go down even more.
We have no idea what's going to happen next couple of days.
We have no idea if the tariffs are going to be in place for a while or are there going
to be some trade deals that happen.
I think the best thing to do is just kind of know what you hold, like Money Mark said.
And I mean, if you're second guessing any positions, it's OK to short the market a little
bit or potentially go to the sideline and hold some cash.
But I had a fairly large deal this morning and the CFO came back to me and said, hey,
we're not going to make a decision. We're not buying any software for the next couple of months.
And this is a fairly large company that people might know. So I think in my own perspective and
in my own sales career, it's getting tougher. And I've noticed this happening more and more
over the last couple of weeks. So I think, I don't know, who knows what's going to happen,
but I'm not going to win this deal anytime soon. Hey, this is important. This is super important
for everybody to gather because this is how I made my money. Dealing with people like Kyle who sell critical software to corporations.
Kyle, did the company like what you're selling?
Yes.
They, yes.
They liked my software.
So you expected that they were going to move forward
and make an investment in this software to make their business better?
It was forecasted at 90% chance.
And now it's zero for the next few months.
Zero percent for this quarter, for sure.
I don't know what couple months means.
I mean, that could be six months.
It could be a year.
But yeah, I have no idea.
It's not going to happen in the near term.
Right.
Now let's make one last thing clear, because this is great for
everybody. Do you think you will eventually sell that software to this customer? I would say yes.
Okay. This is what happens in an environment like this, folks. People, they don't stop life. They
just pause it. This company sees software that can help their business get better. They want to buy it,
but they don't know if it's a great investment right now because of what's happening right now.
So they say, you know what? Let's not buy it right now. But once the coast is clear,
once you see things get better, that's when Kyle's going to get that phone call and they're
going to say, let's move forward with the software. Everything's clear now. And then things go gangbusters because there's all that pent up demand from all the things that they want for their business, but decide not to buy it right now.
some beautiful insights there uh kyle appreciate you sharing that uh with us let's continue around
the panel uh dougie fresh i believe you were up here uh pretty early in the space appreciate you
joining us what are what are you seeing out there i know you are a lot more on that technical side
of things but i know you're looking at that that macd and some of these uh these turndowns are not
pretty right now across a couple different time frames oh man guys
it is a little choppy to say the least it is crazy kyle and money mark great analysis right there
because both of them dead on the money exactly how business and the world works to be honest with
you that software example was great the now home and you're just seeing things flat i kind of last
night it was like a coin flip they needed to say
something this morning to really get the market moving again i kind of expect them to lighten up
the tariffs just to kind of hold it back from this recession talk but maybe not because like you just
said i mean this thing's coming down on that macd pretty good it isn't a nice channel it has some
support the spy we're talking about it like 5 45 but i mean
you get under that and you're toast and uh and then you're gonna be uh triggering these um
you know these stop losses and that could definitely uh trigger a recession really
quick because if these things start selling off real fast you know how they work it's like a
domino effect so i thought they were going to try to keep them up in that channel between a 20 and
50, but nothing's been said lately to keep them pumped up or even moving lately. And yeah, we have
the tariff day coming up Wednesday, April fools tomorrow. So who knows what's going to happen.
It is kind of crazy though. And I understand they are trying to get these interest rates down.
You can't have the markets running with the interest rates like this, but they also don't want the economy to go into a recession because it's hard to bow out of one of them as well.
So it is in a very, very interesting spot.
And it is day to day, guys.
So you have to be careful with what you're getting.
Everything's going to be on sale and great opportunities.
You just got to be patient with things and really read it. And yeah, I had a Microsoft. I had that shorted down and
sold that off today. That was a beauty. It was weighed out like $10 this morning, maybe a little
more, but that exactly what you guys were saying, look for the shorts because they come down way
easier than they go up right now. So that is what I see in the market and it is very
choppy. So be picky, be patient and just kind of exactly what they're saying. Know what you own.
If you're a long-term person, believe in it and don't get, you know, don't get run out of it
because things are dipping down. Look at the opportunity if you love it and you believe in it
that, you know, you're in a great opportunity to pick it up cheap and average down, and then you'll be rocking and rolling when the market turns around.
So that's how I look at things.
Appreciate you coming in with those thoughts there, Dougie.
And Godfather, do you want to round us off with the end of kind of the market sentiment,
end of kind of the market sentiment, what you're seeing out there, what you're thinking around the
what you're seeing out there, what you're thinking around the market?
market. Sure. So look, you know, unless you're inside Trump's head, you don't know what's going
to happen. So what can we do from a macro standpoint? Well, we can focus on what we think
is likely and, you know, what we actually know. So let's focus on, you know, what we actually know right now. What we know is that
the soft economic data is sending a clear picture of what's to come in terms of the hard data.
It's just a question of timing, right? We saw consumer sentiment fall another 12%
from what we saw in February down for the third straight month. You saw, you know,
two-thirds of consumers expect higher unemployment.
These things weigh an impact on spending decisions.
The big drivers of the economy are either government spending,
which we know is being reeled back, or the consumer,
which is definitely reeling back.
And we've seen that all the way through from comments from the big retailers,
Walmart, Target, et cetera, et cetera.
And look, there's been a ton of soft data, small business surveys, et cetera, et cetera. We don't
need to get into all of those things. The words that you've heard me say before and have sort of been talked about here, are air pocket. And, you know, this
is exactly, you know, where I think we are. You know, once we get past Liberation Day, and honestly,
I'm not sure how much of the uncertainty is really going to be relieved on the second. But to the
extent that there is any sort of clarity on tariffs, what's next? Well,
the market is going to focus on Q1 earnings. And based on what we know from the economic data
and based on this uncertainty, which was highlighted by Moneymark and others here,
that is essentially frozen corporate decision making, frozen consumer spending decisions.
essentially frozen corporate decision-making, frozen consumer spending decisions.
You know, this picture for Q1 earnings is turning ever more red.
And, you know, a day doesn't go by here that we don't see strategists, you know, continuing to lower their earnings estimates for the indices.
So, you know, all over the headlines today, of course, was, you that, hey, 10% increase in tariffs. And I
think the consensus is to end up at like 9%, is going to provide maybe a 7% boost to earnings
in total. That's all we're going to see over last year. Well, if you get to that number,
you do the math, it's 260. Put a 20 times multiple on it, you're 5,200 on the SPY.
You know, go back to what I started in this conversation, you know, what do we know and
what's likely? Well, I'll tell you what's likely. You know, you can expect that the starting point
for terrorists is going to be high and it's going to be watered down. That's just the art of the
deal. That's the way it works. So, you know, we're hearing that now, 20% all countries. Well, where does
that end up? Does it end up closer to the 9%, you know, just the 15 worst countries in terms
of trade deficit? Probably. But either way, the bias to that 260 number that I just threw out
then is lower. So, you know, if every 5% tariff percentage point increase in tariff sucks 2% out of that earnings number,
which is, again, a Goldman estimate, now you're talking about something that's closer to 250.
So 20 on that is 5,000. You know, there's a lot of technicians here. And, you know, that 5,000
or 5,200 number seems to come up over and over again. I would not be surprised that there's a bit of a magnet in the
market to go there before, you know, we can kind of come out of this. And I think, you know,
subject to any abrupt material policy changes, which of course is a big S when you're talking
about Trump, I think there's probable cause that the market, you know, as a best case,
kind of goes nowhere until mid to late summer before, you know,
A, all of this trade policy starts to flush out. There's always going to be geopolitics,
but, you know, some of the stuff that's front and center, like Trump talking on the weekend
about bombing Iran and, you know, now being pissed off at Russia and all the rest of this,
you know, we get closer and closer to the offsets to what Trump has started with in terms of reoranging government income and, you know, the global trade environment.
And these are the things that you've heard Besson talk about, right?
The relaxing of bank covenants, which obviously has a big impact on small cap stocks, corporate taxes, deregulation, all of these things are favorable.
But again, that's back end loaded.
So we're in this uncertainty period, we're in this air pocket that's going to start getting
translated both into hard numbers on the economic side and into weak earnings for Q1. And all of
this is obviously negative for the market. So that's where we're at. There are times for sure
when the market says to do less. And absolutely, it's time to do that. And Mark used the words,
the path of least resistance down. I like to talk about it in terms of wind at your face or wind at
your back. When we get around to picks this week, my pick is a short. Why? Because, yeah, the path of least resistance is down.
The wind is at your back if you're shorting.
Investing is hard.
Trading on a short-term time horizon is even harder.
So, you know, why not work with the wind at your back?
Anyway, I'll leave it there.
Yeah, some really good thoughts there, Godfather.
A couple of headlines just came out right now. I was looking over
Trump headlines, I guess we should say. Levitt is talking
right now. The tariffs will be announced at the
Rose Garden event on April 2nd, which we know is
being called Liberation Day. So that just came out, confirmed. So whatever time that is on Wednesday,
I haven't found that, I haven't dug into it any further. But yeah, the uncertainty, one of the
Trumps, and then Godfather, you just kind of made this point. And I think I'd love to to ask you this one question back real fast is it like the boy
cried wolf too at this point because of so much change like we're gonna do this now we're walking
this back now actually we're gonna do this now reciprocal for everyone now 25 over the now we'll
double that that is it like boy cried wolf once we do get maybe this quote unquote clarity of
what's gonna come does anyone really buy into that and believe like, OK, well, that's what it's going to be going forward?
Or do we think, hey, that may be changes in two weeks, in a month, in three months?
Well, look, all of this uncertainty has caused a major sort of repositioning in the market to a defensive stance.
Right. People have been degrossing weights, all the rest of it.
That's not going to change on a dime. And the problem is the Fed's also in a box, right?
We know that inflation is running hot. And in the near term, goods inflation from tariffs is going
to keep that up. It's going to take some time.
Eventually, the growth side of the mandate is going to take some precedence in terms of the direction of interest rates.
But you need to have a growth slowdown at a minimum for that to happen.
And, you know, increased probabilities of recession, which is all the talk these days, that's only going to continue to persist.
So, you know, this is just one part of the equation.
And yeah, look, I don't think anybody in the market really thinks that 20% across the board,
all countries is going to be where we end up. It's going to get watered down. But again,
I think the market is bracing for a slowdown in corporate earnings,
which ultimately are the driver of share prices
and this lag and this box that the Fed's in
in terms of rates.
So there are more reasons than just the tariffs alone.
You can see the impact short-term
in terms of the economy.
There are a lot of reasons not to be overweight equities right now.
And I don't think that changes on April 3rd, for example.
StockSniper, we got two up here on stage.
I saw you sneak in here.
We just went through everyone, got their market sentiment.
Didn't know if you had any thoughts to throw into the mix before we start getting a little bit more granule i'm sorry i was working
on something in the background um was on my own planet for the last 10 minutes or so but um you
know are we are we in the stock picking phase at all or are we just talking about the market as a
whole we're still doing the market as a whole right now if you had any thoughts around that
and then we'll uh transition to that next yeah I'm just going to talk very briefly on this one because I don't know
exactly what was covered and what wasn't. But the one thing that I really want to say and kind of
emphasize is most of this market has kind of sold off from the anticipation of tariffs coming in.
And now, again, when we look at how many tariffs have actually been implemented,
there still are no tariffs implemented yet. So everything is completely speculation. We've seen the market come down 10%, slightly bounced back, and now we're back to where we were before.
This is all just speculation and this is all just swinging on the news and possibility of
tariffs coming in. And yes, we've seen all kinds of different figures and different speculations
on how these tariffs would actually implement things if they were actually implemented. But
again, nobody really knows how many tariffs are actually going to go through. And, you know,
I think a lot of this is speculation. And, you know, it could be better than we all think. It
could be worse than we all think. We don't really know. And so, you know, I think the market's in a
huge phase of uncertainty. And, you know, for this reason, I'm pretty much just holding on to
everything. I haven't bought any stocks this week so far. I haven't traded yet this week,
but I'm just pretty much watching on the sidelines and waiting for some more information to come in.
I think that tends to be the general consensus right now is among most of the people I have conversations
with, you know, across all these different spaces, it seems to be, and Money Mark hit on this very
well earlier, is, you know, just you don't have to do anything right now. Just wait for some clarity
and just weather the storm until you have something a little bit more concrete. And
somebody else, I don't know if it was Kyle or Ben or somebody else made the comment of what we do know. Maybe it was Godfather. Somebody said, well, what do we know
and what don't we know? And there's a lot of those. We don't know this, but we do know very
few things right now. And we do know that there is a lot of uncertainty and there's a lot of
wait and see going on in the market. But that pretty much wraps up the kind of the market sentiment portion of the show that we do each and every week right here on Small Cap Investing.
I'll throw in one last comment we did.
If you're watching from just the indice level, from the technical standpoint, we did come off of our lows.
We consolidated for a while.
We got back to that 200-day, especially on tech.
We got over it for a day on S&P, the broader market, and then we failed that. Obviously, anybody that was swing short traversed that entire range, and at the new low break today, you saw a lot of short covering.
And with that, I do want to transition this into a little bit more zoomed in approach and see what we're looking at on kind of an individual stock picking type of basis.
So any names that have been working well, we can go back and visit those.
And then, of course, anything that we're looking at going forward right now, whether it's on the long or the short side, because I think Godfather alluded to that a little bit.
But Ben, I want to bring you back into the conversation here and start with you and see what's on your radar. What have you been
trading? What are you looking at now? Okay. So it's important to, when we have any of these
discussions, to know what your timeframe is because it's a whole, I alluded to this earlier,
short-term trading versus long-term investing can be two totally opposite things.
You know, sometimes I've sold a stock in my short term account and at the same exact price
I would buy in my long term account.
You know, one of the things that I've been through lots of busts, you know, dot com,
the financial crisis and everything between COVID.
financial crisis and everything between COVID.
And one of the mistakes I've made in my long-term account before was thinking I was brilliant
by basically going all cash or mostly cash very, very early in the move down.
And then subsequently we'll see a bear market down 20 or 30%.
But guess what?
You know when I get back in, when it already recovers and goes back above what I sold it at.
This is more so I think at the times when I was not maybe trading full time and I had
like other things to distract me and I was working on my dating site business and stuff.
So I would sell all my stocks, totally check out and get back in at like way, way, way
late.
So based on those experiences, I'm not making too many changes in my long-term account.
Just sold a couple things that are maybe not as high conviction, maybe shaved the 10% off
here or there because I want to have some cash to buy a dip in a couple months.
So it's very important to know what timeframe you're talking about.
So I bring that up in context of this quick trade idea I had this morning in TSSI.
You know, for right now, I'm not really issuing in our Discord, I'm not really issuing any high conviction swing ideas.
It's been weeks, weeks, maybe more since I've officially put a trade idea out there.
Everything has basically been, you know, short-term, intraday scalping and then
discussion of long-term positions. So with TSSI, I had a nice scalping here today. They
had earnings last week. It was a good earnings report, but I don't think it was enough to
buck the market trend. And then you had this magnet to the 200 TMA. So I advise people
in our community, I'm like, dude, this thing's going to be 760. I think I even said it before
the earnings report. I'm like, whatever they report, it's going to 760. I think I even said it before the earnings report. I'm like, whatever
they report, it's going to 760. That's a magnet at the 200 DMA. So I picked them up at 760
today, understanding the fundamentals and the technicals and having that recent catalyst
gave me that conviction to take that stop today. And, you know, it was just a small
trade for me. And it's 760 out of 780. I'm monitoring it. There's some support there at the 200 TMA. But if you're
just thinking long term, we'll hear what Mark says. This might be an awesome pickup for
the next three quarters at $7.60. We'll hear what Mark says about TSSI.
Another one that's a MoneyMark pick that I can't speak to about as intelligently, he'll
talk about is ECOR, which has just been devastated since
the earnings report, just red candle after red candle after red candle.
And they had a nice catalyst that was PR'd this morning.
I think Money Mark was ahead of it.
He knew about a Friday, but a VA contract that was extended for five years.
And for me, that's also a little scotch.
I don't know what my entry price is.
I've got to check for today.
I think it was like $670 or something.
I'll have to check.
But in any case, I just thought that that was a catalyst that can buck the market trend
a little bit here.
It's up 5%.
So these are just quick, quick trades for me.
Now I will give you one that I have more conviction in as a swing for this week.
And by the way, that ECOR, I'm not dismissing it as a long-term pick.
That might be great as a long-term pick, right?
We'll hear from Mark about that if he wants to talk about it.
But one that I picked up as a swing for this week is Kodak.
K-O-D-K, I think I've talked about it on this show before,
but a very interesting opportunity this week on Kodak.
First of all, it found support at the 200 DMA.
Kodak had a great earnings report, by the way.
But one of the things they've been working on is domestic manufacturing of active pharmaceutical
ingredients, API.
And they started this process during Trump 1.0.
It's been, you know, many years they've been building this out. You know, back then
the Trump administration had given them initially a huge loan, I forget how much it was, like
a billion dollar loan or something. And then because of accusations of insider trading
they had to pull back that loan, they never got the money, but they went forward with
it anyway, with their own resources. So they're launching that this year.
On the conference call that just happened, they definitely stated that they're launching
this domestic manufacturing of active pharmaceutical products this year.
And this is in the backdrop of fundamentals that are really improving for the company
because of tariffs, actually, believe it or not.
They're getting a huge boost, actually, from Biden tariffs.
These are Biden tariffs that went into effect.
It went into effect after the election, but they applied for it.
They lobbied for it over the last couple of years.
A couple of weeks after the election, the Biden administration put these tariffs in effect for these photographic plates.
I don't know exactly what it does, but it puts them in a really, really good position to see their revenue explode this year from that plates
business.
So that's an example of, and that's like high tariffs, it's like 100, 150% tariffs they put
on their Asian competitors.
And Kodak is the only domestic manufacturer of this place.
So they're already benefiting, they have all these tailwinds, benefiting from the tariffs,
flipping to major cash flow profitability, and now building
up this active pharmaceutical API production facility in New York, launching this year.
I don't know exactly when.
When that tariff announcement on pharmaceuticals comes later this week, this could have a nice
pop.
And I think that's why you're seeing some relative strength.
Some traders are probably getting ahead of it.
So this is a small cap that I'm in.
I'm hedging with spy puts.
We'll see.
It's tough to do the puts, but that's one of my long positions.
I feel comfortable swinging this week, and I'll leave it at that.
Appreciate you kicking us off there, Ben.
And Money Mark, let's just go right over to you next because, once again, your name was mentioned there a couple times.
I know you and Ben do collaborate on some thoughts and look at some different things there.
So we'd love to hear your thoughts around a couple of those names and anything else we've got.
Yeah, I mean, clearly, you know, with TSSI, good enough is not good enough in this environment.
Really what it came down to.
They had a good quarter.
They had a strong earnings call.
Everything they said there was really bullish.
They're doubling their square footage in terms of capacity.
They're looking to quadruple the number of gigawatts that they have of power they have coming to the facility.
And they're getting approvals for that.
They've already gotten approvals for a good chunk of that.
So that's nice.
They're getting no resistance from the local governments on it or gigawatts. And everybody knows the value of power right now and how hard it is to get their hands on it.
So that's nice.
And then the liquid cooling station.
So those of you guys
who like to see what happened with that stock. Um, they said that the number of liquid cooling
stations that they were going to incorporate into the new facility, they are tripling,
at least tripling that number, uh, since the initial plans that they put out. So
there was a, basically a delay in terms of how long it would
take before they start ramping up the facility, but it's only because the demand that they see
for the facility has gone up so much that they have to add more stuff into the facility before
they get going. So that sounds great, but at the same time, it is still a delay. You still have the
uncertainty in the marketplace. So it becomes a matter of one of the magic words that Ben likes
to use, sentiment. Sentiment is just really dirt poor right now in AI. People are like, well,
we'll believe it when we see it. And so this is more of a show me story in terms of the massive growth that seems to be coming in terms of demand versus a belief that it's actually coming.
ElectroCore, similar situation, right?
You have what Kyle said earlier about the CFO freezing spending on the software product that he has to offer.
ElectroCore freezing sales hires. We've known
this for weeks, ever since the earnings call, right? And that was, I came out and said that,
we're going to be cautious about this name. I'm not going to come out and pound the table
on a name that same long-term outlook, Ben talking about short-term versus long-term, right?
But in the meantime, we don't know what's going to happen. All right? Great news coming out this morning. They have an FSS contract, which is the Federal Supply Schedule. That gives them the right to sell their product into the VA, right?
that expired about a pretty close to a year ago, I think. And they were getting extensions.
All right, we're still working on it, but we'll give you a three month extension. Okay,
we're working on it. We'll give you a three month extension. On the earnings call, they announced
another three month extension. And I was like, man, this thing is not going to get done in this
three month extension, given what's going on with Doge, et cetera. Well, the press release this morning says that the VA had 585 contracts canceled.
Okay?
This is what's going on with Doge.
They are canceling contracts across the board.
But ECORS was not canceled.
In fact, not only was the extension no longer needed, they got a five-year renewal on the old contract that they had.
So that's great news.
And in the midst of that, they took the liberty of giving some pre-announcement on the March VA business saying that after a modest slowing in January, which, right, as expected, if there's uncertainty in the
department, even if they don't stop buying your product, which was my thesis, the problem was
that there was disruptions in that VA. And they said that the disruptions that they saw in January
did not continue in February and March. They saw a review re-acceleration
there. So that's nice to hear. Doesn't change the fact that until we hear that the sales
hiring is back on at ElectroCore, that hampers the growth story. So it puts us in with TSSI, ElectroCore, most other names. The only name that I see continuing to go full bore, operating not following suit. That's a perfect environment for
profitability for the miners. And the miners are leaning heavy right now on geodrills saying,
hey guys, we need more drills. We need more drills. And geodrills saying, we've got no more
drills, but hang on. We're going to go try to find more in the marketplace. And they're going out and
they're trying to acquire more drills, but they're hard to find and they're rising rapidly in price because of the demand for
drills. It's a perfect environment for a company like Geodrill right now because now any business
they do, it's going to be at a premium price. It's going to be in a multi-year contract. They've
been signing those. I've been hearing nothing but good things for those guys. G-E-O-D-F is my only massive
position in the marketplace right now. Everything else is cautious because we're swimming upstream
in a bad market. Hey, Mark, when is the next earnings for Geodrill?
You know, I can look that up while you guys continue to talk.
I can see here. It doesn't look like it's announced. I see May 12th to May 16th estimate is what Weeble's shown.
That sounds about right.
I wanted to get something a little more locked in for you guys.
But what I will tell you is this.
Expect great comps for the next several quarters because they took a lot of their drills offline over a year ago to move them
from bad jurisdictions with shaky customers. They had second and third tier customers in shaky
countries. They took those drills offline and moved them to safer jurisdictions to do business
with tier one customers. It was a massive disruption
of the business and the stock still hasn't fully recovered from that. But if you look at the chart,
you will see where the stock went down for a long period of time and now it's been moving up steadily.
It hasn't come close yet to getting back to where it was and the company is in a far superior
position to where it was. This stock should be at least 25% higher than its all time high. And it's probably closer to 25% below it.
So in this environment, this is the company that I feel most confident right now that is
operating on all cylinders. For what it's worth, my system shows May 9th before market.
There you go. Thanks, brother.
Awesome. Appreciate that money, Mark.
Kyle, I want to bring you back up on stage, or well, not on stage,
but back up on the conversation here and see if you've got any names or ideas
on your radar, sectors, themes, whatever it is.
What's on Kyle's radar right now?
Yeah, I wanted to, just two names.
I wanted to provide a quick update on BKTI.
So they did report their earnings last week
and it actually was really strong.
I think it's up about 10% even today,
but they're forecasting 280 in EPS this year
and projecting single-digit revenue growth.
So right now, that's roughly a 13 or 14 PE. But knowing this management, they're extremely
conservative. I wouldn't be surprised if we see closer to 350. So BKTI, they had a great earnings
last week. And the tariffs don't seem to be hurting them
too much because they're still forecasting 42% margins for this year.
Another name beyond BKTI would be PSIX, so Power Solutions International.
It's just above the 200-day moving average.
It did sell off a little bit after the last earnings. But what
they do is they build power systems primarily for data centers. It runs on natural gas or diesel.
And they just posted a 38% growth this past quarter. And it's trading at about an 8 PE.
So when I look at all the data center names and in the market today, it probably is the
cheapest one. The one thing is, is most of their supply chain actually does come from China.
But if we see any kind of news with, you know, China tariffs coming down or maybe TikTok getting
sold off and they negotiating a deal with that, I think PSIX is a really big beneficiary.
And even with the tariffs in their last press release,
they did say that they're expecting stronger sales in 2025 over 2024.
And it's trading at an 8 PE right now.
So that ticker is PSIX.
Give me that ticker one more time.
I was trying to pull it up over here.
It's PSIX, Power Solutions International.
PSIX, sorry.
I love when you guys go through these names.
I love to take a look at them,
get them kind of on my recents tab over here and keep an eye on them,
which hopefully if you're in the audience, that's what you're doing as well.
There's some really great ideas.
Of course, there's no investment advice or anything here.
Just a starting point, kind of a launching point to do some of your own due diligence, of course.
But that is the way I treat these spaces.
So absolutely love that.
Kyle, did you have anything else you wanted to share before I continue around?
Not necessarily.
I guess one question.
Money Marker.
Money Marker, yeah.
Can you hear me?
Yeah, I can hear you now. I guess my question is, in the U Corp press release, is there any hint at it being year-over-year growth, or is he looking at Q4 to Q1?
Yeah, so my best impression, I've talked to a lot of contacts on the name.
I don't see any major degradation off of Q4. If I put a gun to my head and I would
say that Q1 will be up versus Q4 in the VA business. I would also say that the true Vega
business, the B2C business, I think there's a good chance that that's also up.
And if that's up, that's heroic because we just came off of a Q4.
And you know for consumer products, holiday season is big and then Q1 falls off, usually dramatically.
I'm not seeing a dramatic fall off there.
So I'm looking at VA being a little bit up versus
Q4 and I'm looking at true Vega business being potentially flat versus Q4, which is, um, you
know, which would be really nice. So I, I don't, I don't expect a bad Q1, you know, could it be a
little soft? It could, could it be great? It could be great.
But again, with the uncertainty out there, I'm giving you the data points you need
if you're a long-term investor, and then I'm giving you the data points you need if you're
a short-term investor. Got it. Thank you. And then I guess one thing to add to that,
I actually do have the search trend data on Trivaga, and it looks like it is stronger
than the last quarter minus December, which makes sense. But January and February are stronger than
October and November. So that trend does look true.
Well, that coincides with the data points I'm getting, and it's different data points on what
you grabbed. So triangulates nice. Cool. nice cool thanks brother that's it for me beautiful stuff there appreciate you kyle uh dougie fresh let's
go over your direction yet uh next and see what's on your watch list yeah i'll touch base on the e
course since it's popular today and it looks really good i've actually been watching and since uh you
guys mentioned it money mark did uh the other day or the other week.
And, yeah, it's been pulling back.
It looks like it's trying to base out here.
Again, the uncertainty of this market is just crazy.
So they do like to bounce off that MACD, come down.
Maybe it comes down one more level.
I'm going to watch it.
But I think this one actually is a great one.
And it's getting bullish.
Like, it wants to try to run up to like that $16 area as soon as
it's let loose so it's at $6.77 I think it's going to be a really good one definitely keeping my eye
on especially right now with everything kind of pulling back and not looking the best this is a
pretty good opportunity I would say and I'll just touch base on the two I gave last week, Wolf and Wolf. They both pulled back with the market and honestly still look pretty good.
The Wolf, W-O-L-F Wolf Speed, it's trying to bounce out of that basement real quick.
It's at 290.
Take a look at it.
It looks like it's trying to set up even better than last week.
And then the other Terror Wolf, W-U-L-F, is just kind of pulling back a little bit.
But it looks like it's trying to roll off that MACD.
So I've been keeping an eye on both of them, both a little bit of pullback, but could be setting up
nice. And then just on my scanner real quick, I saw this one setting up and might be a quick pop
for this week. It's a GAIA. I don't even know what it is. It's a communication services and they have
like a 96.53 million dollar market cap
and yeah it's just sitting right on that bottom line the g-a-i-a i know them i know them real well
know the ceo and all yeah this guy they actually have a it's a streaming service and they've got
tons of content that is uh that you know generated the company. It's kind of like an enlightened, you know, the aliens create the pyramids and things like that.
Very popular amongst a certain rabid following.
The one thing that's been helping content services, streaming services like that, that have their own content is that the llms want that content so you got a company like curi
gaia you've been seeing those stocks do really well as the hyperscalers come to these companies
and license their content to train the llms on how to produce videos using ai see that guys that's
why you listen to this show because i just look at the
charts look at some money mark knows what he's talking about he knows the company the ceo
everything in between and when you know that we're lining up together and he likes it and
not saying he likes it but he knows it well and i'm telling you it's just gonna it looks like it
wants to bounce off of this uh support trend line down here and it may just kind of run around for
a little bit,
but it does look pretty solid.
So keep an eye on it.
Just popped up on my scanner.
And that's what I have.
And thanks, MoneyMark.
Greatly appreciate that info there.
Beautiful.
Anything else, Dougie Fresh, out there on your watch list?
I had a feeling we might have some lower amounts of watch list items right
now i'll give you one that looks really good it's like almost it's a penny stock it's taken a huge
dip but i've been watching this thing it's taken a giant dip it's down at two cents guys logic mark
lgmk it was setting up the other day and i i'm sitting here staring at it right now because i've
just been flipping through the market and i we've been watching it on the show and it does it looks like it wants to
roll off that macd and i'm telling you it's at a great price it got under two cents today it ran
up to three and again this is a real penny one very volatile but if you're looking for something
to try to move real quick this thing was looking good the other day and it was trading at like 11 cents 16 cents it ran up to and that was just last week and now we dipped all the way down
the two cents and i never got into it i was just kind of watching it and now i think and you'll
probably see a reverse split but i think we're going to get a little pop before that so yeah
the market is just very choppy it's like i've been shorting a lot of them down to be honest like i
said i had microsoft shorted down um they just look stronger to short down than they do to go up
and some of these penny stocks are looking a little bit healthier a lot of times when the mag
seven the big caps and other things like to pull back these penny stocks the money seems to roll
into them and they fly off and you've been seeing some of these run over a hundred percent it's fast though and again with the 4 a.m trading on webull you have to be careful because a lot of
it is done early in the morning they if you're going to maximize your profits you have to be
careful with these penny stocks it's a totally different trading game than it used to be so you
just have to be aware of that and on webull and I don't know what other real platforms really trade that early, but it seems insane at that time.
I mean, I get on at 7 a.m. to do pre-market, and it's like an entire day has gone by.
I mean, you see these things running up over 100% from 4 o'clock in the morning.
It's just bizarre.
But yeah, logic, Mark, keep your eyes on that one in the next few days, LGMK.
So not a whole lot i wish there
was a lot more popping but yeah i've been trying to short things down and and more or less just
sitting on the sidelines watching things and seeing and again it just what you just don't
know what's going on in trump's mind and i've actually said on my show we have to even though
we look at the charts for everything we're going to base everything off the charts We kind of have to think like this administration and what are they trying to do
and what are they trying to do with the charts at this moment? And that's kind of how you have
to look at it because every day it can change at the snap of a finger. So that's what you're into
right now in this market. So you just have to be really careful, picky, and don't go overboard on
anything. Just trade smart smart lock in your profits
quick and you know try to roll them over so that's what i see right now in the market
i love that dougie and godfather let's go over your direction and see what all you're watching
yeah as i mentioned um you know on the the theme of trading with the wind at your back, a name that's come on my radar screen, not just mine, it's hit for several other short seller radar screens is Gorilla Technologies, GRRR.
I mention it today because they report today, one of the few companies that do.
And what's more important is because of where these guys are incorporated,
you only hear from them semi-annually. They do not report on a quarterly basis. So here's a
company that dates back to a SPAC in 2022, still led by the same management team. They described
themselves at that time, which was the sort of peak of the SPAC boom as being a video analytics
company. If you dig into it, it's more like a security camera company. This thing is a fiesta of red flags, put it that way. With their sparks and smoke,
there's usually fire. When the company has a history of business plan pivots, it's obviously
a huge red flag. When the company is prone to making exaggerated projections without providing
operational, contractual, or partnership specifics. It's obviously a huge red flag.
So here's a company that's self-described now. Remember, they started as a security camera
company as a, quote unquote, global solutions provider and security intelligence, network
intelligence, business intelligence, internet of things, technology. This is a company that says it is positioned at the intersection of smart cities,
technology, blockchain, AI, internet of things, and operating across multiple verticals,
such as government, public service, manufacturing, telecom, retail, transportation, logistics,
healthcare. They are, quote unquote, an AI SaaS company now,
smart retail, smart infrastructure, transportation, endpoint security,
edge video analytics, blah, blah, blah, blah, blah. So a company that's all things to all people,
that's essentially transforming digital ecosystems globally, you would expect them to have a pretty hefty R&D budget, wouldn't you?
If you look at 2023, they spent all of $3.7 million in R&D. The last report prior to the
one that we get today was the six months ended June 30th. Full R&D budget for that period,
full R&D budget for that period, just over a million dollars. It's a joke, frankly.
The company is out there saying, hey, we are going to buy back stock. We're pissed off at
all these short sellers. You're going to see the company buy back stock, management might even buy back stock. The reality is they announced a $6 million buyback
last September, of which there's like 2.2 million left. So there's nothing relative to
a dollar volume traded on a single day. The company is touting a $2 billion pipeline that's now with some new contracts, potentially $6 billion. And this is hinged primarily on a $1.8 billion Thailand smart grid contract, which frankly is not going to see any profits until at least 2027.
not going to see any profits until at least 2027. This is a company that's got
all of 12 million in cash, 36 million in debt, almost all the cash is restricted cash.
This $4 billion increase in their pipeline is hinged upon an announcement whereby they claim to be the exclusive AI and digital
infrastructure partner for a $100 billion global investment fund that's headed by a fellow who
now has no less than 18 pending criminal and civil lawsuits. The founder of the entity is a committed fraudster. Anyway, I could go on, but I'm very
curious to see what sort of spin they're going to put on these numbers because they recently
increased their guidance to $110 million for 2025. Even if we say that's a real number on revenue, the stock is trading at
over five times EV to sales. It's trading over 100 times PE. And they're claiming EBITDA margins
in excess of 20%. The reality is that they're currently ticking in single digits. So if you put sort of,
even give them 10% on EBITDA margins,
you're still close to 35 times on an EBITDA basis.
So I think there's a big departure between reality and what is being articulated to the market.
And I don't think there's enough firepower
for the company to arbitrage that value difference with their so-called share buyback program.
So there was a lot of shenanigans that went on to see warrants exercised.
They're trying to sell real estate. They laid off 28 percent of their workforce.
You know, this is obviously not what you expect to see in a growth company.
So every time this thing gets up to around $28, I add to my short position.
And every time it gets down to the sort of $25, $24 range, I cover.
And that's been successful in the last several weeks.
And I expect that that will continue to be successful.
So it's a tough market for buying and holding small cap stocks in an investment account.
So I'm more focused on trade opportunities like this, especially to the short side.
Appreciate that, Godfather.
And I will say, if you haven't already, make sure you check out all these speakers that spend their time with us each and every Monday.
Give them a follow. Check out their content, their different services that they do out there.
We appreciate all of them joining. And we are at the top of the hour.
I know a couple of people may have to drop. So I do think everyone that joined.
But I want to keep this open for another few minutes at least so we can get StockSniperers ideas out there for the crowd.
Unless he gives me a cold shoulder.
And if that's the case, that will be our ending point there.
Stock sniper one, two.
There he is.
I was going to see if you had any names on your watch list you wanted to shout out to us today before we close out space.
You know, one thing that I've been monitoring pretty closely, and, you know, I haven't started buying it just yet, but it has caught my attention and it's on my eyes, but it's RKT, Rocket Mortgage, Rocket Companies.
I know a lot of people are talking about them, but, know they just bought Redfin last week. It seems like they
bought it a little expensive. The market doesn't like that necessarily. I'm not too worried about
that, but it seems like they're making another acquisition. I'm pretty sure they bought Coop
today. I don't know if that's finally gone through or not, but I'm really interested in
watching what this name is doing. They're making a lot of acquisitions at a very fast rate. I think it is worth monitoring
and keeping up with over the course of the next two months, especially as we could possibly see
interest rates come down. I think we could also see more volatility in the real estate market
as a whole. But Rocket Companies, that's just something that's on my watch list right now.
I'm familiar with this name from back in a couple of years ago. I can't say exactly. I've been
watching it too closely for that long. I've not started a position in it just yet, but I am
looking. It's got my attention. And again, it looks like it is heavily discounted at the moment.
And I think it might continue to come down as well. But just wanted to put that out there.
That's kind of something that's made my watch list very recently. All right. Appreciate you getting that in there
at the buzzer stock sniper. Ben, my co-host over at Story Trading. Any final words from you as we
close up the small cap space? Great space as always. Appreciate all of you speakers that come
up here and run this with me each and every Monday. Well, if we haven't, how long do we have?
I'd like to, if we have two minutes. As long as you, as long as you want, boss. Godfather,
are you still there? Is he still on the panel? Yeah, I'm here. Okay, great. Why don't we give
an update? I'm curious your thoughts and I didn't talk to you about this beforehand. Because last week, we both were touting BURNA Technologies, BYRN, the earnings reporter next week.
And fundamentally, nothing's changed.
We're both expecting a good report.
But given what we're all now thinking with the market and SPY and everything else like that, does that change your perspective? Or are
you still holding this? Do you make any changes to this? Because it is a little bit rich, the
valuation. It's a growth company. So just curious if you're making any adjustments on a stop like
this going to the earnings report next week. So a couple of things. They did come out with their
formal announcement of earnings. And I think it was on most systems as next week, but it's actually the 10th.
So Thursday, consensus is $26,07 million.
No, and I don't think it's expensive, actually, for the type of growth rate, both in terms of top line and on margin.
for the type of growth rate, both in terms of top line and on margin.
You know, you're looking at a stock that has traded and probably deserves to trade closer to three times or four times.
It's traded all the way up to four times in a buoyant market.
You're now closer to two.
And actually, I think that number is under two based on where I think the real numbers are going to come in in terms of guidance.
But look, the second half of this year is going to be completely different than what we've seen from this company.
It's going to be a further acceleration of the momentum, both in terms of sales strategy as well as product.
And the biggest thing is the compact launcher.
This is 20% to 30% smaller than their existing.
And for those that don't know, this is a non-lethal weapons company,
primarily selling in the DDC market for personal security,
although they have sold into the DEA, Secret Service, ATF,
various federal and state agencies.
Basically, anyone that buys tasers, this is a potential market for them.
But the beauty of this for, you know, anyone that's fearing for their personal safety is you don't have to be, you know, right in somebody's face like a pepper spray.
foot range and they fire projectiles that can be either just a projectile themselves
or containing things like tear gas or pepper spray.
So this new launcher is a higher margin product and it's expected to ultimately become their
largest selling product just before
we exit this year. So you're going to see a further sales acceleration to the top line,
plus a further acceleration to the margin that they're already seeing. And this is exactly like
Root. The business's so responsive to advertising.
I mean, right now, every dollar they spend on advertising results in eight dollars in revenue.
They can throttle that back to, you know, increase margins as they need to or to stay profitable.
And that's what they're doing. They're trying to find this balance between profitability and growth.
between profitability and growth. So the other thing that's happened in terms of sales strategy
is that they're moving just from a DTC, which is 74% of their sales, where they use these influencers,
Lara Trump, Donald Trump Jr., Megyn Kelly, Bill O'Reilly, Sean Hannity, all these right-wing
folks, and they get like a 1% conversion rate.
But if you can go and actually shoot this thing,
as you can do in their own retail stores,
or as you can do in their store-in-store rollout
that they're doing with a sportsman's warehouse,
the conversion rate goes up over 80%.
So there's 145 sportsman's warehouses
that they're doing the store-in-store rollout into.
They're also boosting their presence in Bass Pro Shops and Cabela's.
That's another 165 stores.
So they're going by year-end to over 400 retail locations.
So, look, I'm not saying this is going to be another Axon because they don't have that, you know, software segment to it.
But in terms of a hardware product that also, by the way, you know, isn't reliant on or doesn't have any tariff issues and is seeing an incredible growth rate that I don't think is that economically sensitive.
Personal security is clearly a priority for those that are using these things.
And also the movement away from lethal weapons to non-lethal weapons wherever possible.
So there's just not a lot of product in terms of competition on the market either.
So there's just not a lot of product in terms of competition on the market either.
So this, in my scan of all the opportunities on the market, clearly falls into that baby out with the bathwater sort of thing.
You know, it's highly profitable and it's debt free.
It's got revenue growth.
It's got margin expansion.
It's got catalysts, both near term and longer term. What's happened? Nothing's
happened. The story's only gotten stronger. By the way, I think estimates are about 15%,
maybe even 20% too low in terms of consensus. But the biggest thing that's happened here is
there's been a multiple contraction. And every single 1x contraction or 1x EV to sales multiple change is $7 to the share price.
So all we need to do is go back from two to three on numbers that I think are going to beat the
market. And I think that multiple expansion will come when people realize that the story has not
fundamentally changed. It's just been a multiple contraction and this thing immediately goes from
you know $18 or $17 where it is now back into the $25 range where it deserves to be.
So you're not worried about multiple compression in the bear market?
I think we've seen it. I don't think it compresses much below two on consensus numbers and
you know something approaching 1.8 or 1.7 based on my numbers
that I'm modeling, which I think is where, you know, we end the year. And if you look at these
guys in terms of their guidance and the increases in their guidance on a sequential quarterly basis,
the cadence of that historically, you apply that to my assumptions, you come up with the same kind
of number. So the numbers are going to be revised higher. Companies that to my assumptions, you come up with the same kind of number. Um, so the numbers are going to be revised higher companies that revise numbers higher,
see multiple expansion.
Um, yes, I, you know, there's going to be headwinds to the extent that, you know, this
market doesn't, um, get back into a mood that starts, uh, uh, rewarding growth companies
again.
But look, I think, I think we'll get through that
in the next six months.
And I fully expect that you'll see this
in the high 20s before year end
and maybe even in the 30s
if we get the kind of market
that people are expecting
that we'll see closer to the end of the year.
Awesome. Very nice. Thank you.
Amp, Wolf turn it back to you
alright yeah I love that we got
some extra alpha there at the end of the space
so do appreciate everyone that joined
once again check out all these speakers thank you
all for spending your time with us here
today and every single Monday
on the small cap investing show
Dougie Fresh appreciates you stock sniper
money mark was up here Kyle Adams God and of course, my co-host, Story Trading, that's Ben over there.
We appreciate everyone that tuned in. And we've got a little bit of a break here, and then I will
be live over on Stocks on Spaces to talk about everything going on in the market. We'll see you
guys over there. Appreciate everyone that tuned in and take care all Thank you.
