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SMALL CAP INVESTING
Recorded: Sept. 8, 2025 Duration: 1:14:00Space Recording
Full Transcription
Thank you. All right, what is up everyone?
Happy Monday, September the 8th, 1 p.m. Eastern.
And Mondays, as you all know, at 1 p.m. Eastern,
we run this amazing space called Small Cap Investing with a just all-star through of
stock pickers and traders, investors, researchers, all of the above. All of those titles fit
perfectly. I want to welcome everyone in. A little quick market update as I get everyone
up here on stage. We are green in some indices, red in some indices. Small caps basically break even,
slightly red here. The Dow is also break even, slightly red, if you want to call it that.
The S&P up 0.2% and tech is up 0.5% here in this Monday trading session. Not a whole lot going on
across the market this morning, but there is a lot of
news, things that have happened last week. We had the jobs report, obviously, on Friday, NFP,
and some stuff coming up this week. The Fed coming up on the 17th. Let me make sure I get
that date right. And they are in a blackout period as well. So some interesting stuff
going well there.
And with that, I'm going to go ahead and open it up, turn it over to my main co-host here, Ben, over at Story Trading.
Ben, how are you, sir?
Good. Good. How are you doing?
I missed that little bit of the intro.
There were some tech issues there, but caught the tail end of it.
So we had a schedule change.
We're doing a full show here, one to two.
I think that gets...
Correct, yes.
One to two, full show.
We'll do market sentiment thoughts in the front half
and full pick ideas, deep dives in the second half.
Yeah.
Well, look, man, things are popping all over the place,
at least on my watch list.
Let me see.
IWM is actually down slightly.
So we'll get into the macro.
But before I do that, just an observation that's made it a little bit harder for me in the past five or six weeks.
There's been a very, very clear for the traders out there, and I'm a trader, data swing time frames.
My swings are sometimes quarters, but usually days to weeks, sometimes months and quarters.
But that's my time frame.
And, you know, story trading, I'm all about the catalyst.
I'm looking for inflection catalysts on stocks I know.
Very often I'll also take what looks like an inflection catalyst on
a stock I don't know for these rapid rebatings and I gotta say it's been a little bit hard since
beginning of August even throughout you know we had that initial dip in the first couple of days
of August we had the big rebound you know things basically all the indices are near all-time highs
now even IWM trying to get there soon.
But throughout the past five or six weeks, it's been a little bit difficult executing on my
strategy because I've noticed a very clear change in, I guess, tactics, probably by hedge funds
and institutions when it comes to small caps and risk assets. And you know what? Even the big caps,
where they're selling the news on day one, it's just such a clear thing. Like you see stocks
popping up all over the place, right? Even today, we have a watch list, lots of quality names out
there. See tons of things, tons of risk assets up, you know, quantum scape is up 18%, obviously
at HUD, but IMVZ, there's a billion things, up 10%, 15%, 20%, all over the place, right?
But they're selling good news on day one, and it's been so frustrating for me.
They're selling good news on day one, even if it may gap higher.
You may look at something superficially and be like, hey, it's green.
There's good news today. But it's been fading the whole entire day like you have here with sats
ecostar corp which had the deal with spacex it's gap and fade the whole freaking day right
yeah it's not even it's not even takes the whole day like it goes down immediately like right from
the jump so you've
noticed that too but then you know what happens on day two or three the thing freaking explodes
i mean they've been playing they've been playing games with my uh process because i do usually
pretty well buying inflection point news even if i have to buy the gap you know for most of this
year you've seen gap and runs on good news but the last five or six weeks you see gap and fades only the tricky only thing. Oh my god
The markets kind of broken, you know, we're fully valued
Catalysts are not being you know appreciated and rereaded anymore, but no. Yeah, they are on day two three and four but not they want so
You have a little bit of a difficult price action underneath that I'm continuing to see. But going back to your IWM, small cap show here, jobs data came in again.
It's been six consecutive weeks where basically every single data point, economic data point, has been pointing to a weakening economy.
And that's been causing the expectations for interest rates to go up. You've
seen TLT completely breaking out here in a second day in a row. Interesting to see TLT gap up 1%
by IWM flat today. We have some last data for inflation coming in this week, PPI Wednesday,
CPI Thursday before the FOMC decision next Wednesday.
And at this point, I fully expect with an asterisk, because you can never fully expect anything.
But I would say at this point, I think there's like a 99% chance IWM is going to break up to all-time new highs about 234.04.
I just don't know the path there. I don't know if it gets there before PPI, before CPI, after CPI, before FOMC, after FOMC.
But I would think there's a very good chance that the latest you see that is September 17th or September 18th.
You're going to see another $6 move in IWM to $243 plus.
But I've got to be honest. I'm very hesitant about this rally.
Look, logically, I'm like, yeah, you've got to be long stocks that are interest rate sensitive, particularly maybe in the housing sector.
Or maybe stocks that have really underperformed in the last few years that are very sensitive to interest rates or have a lot of debt.
But, man, these job revisions are massive, and it's a little bit scary.
And personally, I've never really invested in the housing sector.
I don't know housing stocks.
I've got to lean on the godfather knows in our community
to maybe play some of those housing names.
And it has been all over Nail for months, but I never even touched it
because it's just a sector I've never traded in my life.
That's why I stayed away from Nail.
But the last few days I've been playing a little bit with Open, which I bailed on because then we got another better one from Citron, it looks like, in LDI.
So I've been playing with that a little bit. But yeah, I think these lower rates are
most likely coming 25 bps next Wednesday. And these job numbers are so bad. I got to start
thinking maybe we're going to have multiple two, three, four, I don't know, rate cuts.
But it's a little bit scary. It's a little bit scary because these job number revisions are
really freaking massive.
And, you know, in my morning note, I've been basically at yellow alert at a macro level.
When I say macro, I mean large caps and breadth.
I think large caps and breadth, a little bit scary here.
But if you're in the right small cap stocks that benefit from lower rates, I think that's where you need to be.
I'll stop there.
Appreciate you kicking us off with those thoughts.
It would definitely be interesting,
especially when I look at, okay, a rate cut
that's a maintenance cut is one thing,
but if they start talking about the job data,
I don't know, Ben, what do you think?
If they have to cut because of something like this
and that's the reason,
do you think the market would take that badly?
Well, look, I think it's going to be better if the rate cut next week comes
because we have a light CPI on Thursday.
Because then if you have a hot CPI and bad job numbers,
then you've got to start worrying about sagflation.
So that's a worry.
And, yeah, I think people, to your point,
I think people are going to be looking ahead at this point
because it's pretty much baked in, this 25 bips,
so people are going to be looking forward next week,
whether it's the, I don't know much about the dot plot,
but whether it's the dot plot
or just forward-looking commentary from Powell
so people can get a sense of, you know,
how many rate cuts are coming
because this first one is pretty much baked in at this point.
I appreciate those additional thoughts.
Let's go over to Money Mark and see what's on his mind.
Yeah, so all the macro and technical guys that I follow and respect, including Doug E. Fresh, they seem to remain bullish on the market overall. Valuation-wise,
we are definitely in yellow alert territory. Ever since I put that new yellow alert out,
you see the AI trade mostly going sour over the last few several weeks. NVIDIA, AMD, Marvell,
few several weeks Nvidia AMD Marvel TSS I Dell tech agent all down you know
Broadcom being the one notable it seems to be escaping that harm there's others
but just kind of those the notable names out there so we're getting a little bit
of a summer swoon that Godfather alluded to at least in these sectors I'll also
tell you that I have a very disciplined mathematical process and i'm
finding it harder and harder to find picks that check all of my boxes so that's always the time
to really get cautious not you know force money into the market remain disciplined about the
pickiness you know i want to check every box um know, as far as the macroeconomics go on a bigger picture basis, you do have this economic weakness.
But, you know, we already had a dovish Trump, a dovish Bessent against the Fed.
And now the Fed is clearly they're going to be forced to lower interest rates.
lower interest rates. That's going to happen. Now, that's what Trump and Besson has wanted.
That's going to happen. Now, that's what Trump and Bessent has wanted.
And that's only going to get augmented come February, and not sooner. They've really been
on the attack of the Fed. So we are going to have liquidity. We are going to have lower rates.
All that, historically speaking, is bullish for the market in the absence of recession.
is bullish for the market in the absence of recession. And so that's where we got to watch
out for those jobs numbers. Then on the other side of the equation, you kind of have to wonder
all this efficiency that AI is bringing to corporations, it just kind of dovetails into
what we're talking about with that K-shaped economy, where it's the haves and the have-nots.
The low-end consumer has really been dead for a while. If you look at the charts on Lululemon, I mean, breaking down to
fundamental valuation levels that I haven't seen since 2017. Nike, same deal. That's just
kind of rebounding off of similarly low levels that from a valuation perspective, I haven't seen since the
great financial crisis. So that's a clear sign that the consumer is really suffering with
discretionary purchases. And so it's just all the more reason to be more careful. We got the
defense sector, we got the gold sector. I think anything that is kind of anti-dollar like Bitcoin,
crypto, et cetera, you know, it's still all systems go at the moment as far as that goes,
unless liquidity dries up. And it's just every single week, I just keep saying,
picky, picky, picky. Interesting what the Godfather has to say about all this,
because this seems real right up his alley.
Godfather, you've been summoned.
I heard the cue loud and clear.
Yeah, look, I think certainly on gold, it should continue to benefit from what we're seeing both in terms of easier fiscal and monetary policy.
And then the upside, the real upside kicker there is a stiflation scenario, which at least over the near term, depending on how sticky you expect inflation to be, it's kind of transpiring against the backdrop of weaker jobs that story trading Ben spoke to as well.
So, yeah, I've been trading that.
I don't have it in my long term portfolio. I currently don't have a position, but I think that longer term, it does make sense to hold some gold there.
earnings. And for all this talk about the AEI trade slowing and all the rest of it, if you
look at actual earnings revisions year to date, the MAG-7 still leads the way. In fact, the only
subsector that's positive. We've seen negative earnings revisions for the S&P to tune around 4%.
What's interesting is I just started digging into the numbers for the small caps.
And the Russell 2000, for example, has seen an 8% decline in earnings expectations.
And when we talk about earnings expectations, we're talking about 2026.
But if you actually look at 2025, it's down around 13%. So, you know, you look at the denominator and the numerator then, and you come to like 24 times for, you know, for small caps, which is, you know, like a lot of the rest of the market in this sort of 70 plus percent percentile.
So, you know, I agree with what MoneyMark just said in terms of, you know, yellow to red lights in terms of valuation.
But the other side of the equation is you've got to look at yields.
And we've seen the 30-year back off of this 5% level.
We've seen the 10-year back off from the 420 plus level.
We're just barely above 4% there.
It'll be interesting because we've got 10-year auction on Wednesday.
We've got a 30-year auction on Thursday.
But as long as the world keeps buying the US bonds
as sort of the best house on a deteriorating street
in terms of fiscal budgets,
it should be decent for markets.
And if you look at it from a technical level,
we're still above 21 day and 50 day moving averages
for both the Qs and SPY.
We're flirting with those sort of 21-day levels.
But there's nothing there that suggests over the near term that strategies that involve sort of short-term or swing trading should be reeled into a great extent.
you know, should be reeled into a great extent. You know, that would change, I think, for me,
especially if we start breaking the 50s. I'm still waiting for this sort of summer swoon. I mean,
it's a it's kind of a dull market. I'm not sure the market's been necessarily that weak, frankly.
You know, this week is kind of dull in so much as that from an economic standpoint, we just got
PPI on Wednesday, CPI on Thursday, jobless claims, I guess, on Thursday as well. But, you know, this week is kind of dull in so much as that from an economic standpoint, we just got PPI on Wednesday, CPI on Thursday. Jobless claims, I guess, on Thursday as well. But, you know, the Fed's in blackout ahead of the FOMC. There's not a lot by way of earnings.
Tomorrow after close, that's MIND, M-I-N-D.
This is the leader in offshore geophysics.
They saw the stock spike to the sort of 11 plus range mid-August.
And remember, in every quarterly report, at least that I can remember,
the last two or three managements talked about, you know,
extracting maximum shareholder value,
and that includes entertaining everything, including takeovers. So, you know, we've drifted back
down into the low nine, so that could be interesting for, you know, for a move back up
through 10 or 11 if they reiterate that view and the market gets excited about it again.
Needless to say, their numbers should be strong, continue to be strong.
They've got the best technology.
And that is, you know, proved out by their client base, which are the leading geophysical providers in the world.
So, yeah, that's kind of the backdrop.
It's not that exciting either to the positive or really to the negative at this point, which means you want to really dig in when it comes to small cap alpha. And I'm looking forward to the next half of the show because I got a couple of picks to do exactly that for you.
Absolutely. Appreciate those thoughts, Godfather. Let's go over to Leah. Leah, the trader, how are you? Appreciate you joining the show today. What are your thoughts around what's been discussed so far in general market sentiment?
rates, but how the market is going to react.
I mean, in increasing inflation and lowering rates, it's kind of good for risk equities
and stocks.
I'm sorry, for risk assets.
So I think even though September is pretty lucky month, as you can see since the beginning
we had a job and it's pretty weak, historically weak month, even if we get any sort of dip
this month or into October, I think the market will eventually go higher.
And if this admin gets kind of control over the fat by firing Coke,
then we will most likely see aggressive rate cuts.
And I do believe that owning assets will be a good thing.
And of course, IWM small caps will benefit greatly.
So I'm kind of more positive into the next couple of years,
even though when we're looking at the economy overall,
I see a lot of warning signs,
but I don't think anything major is going to happen in the next year or two,
especially next year we have midterm.
So I do not believe that anyone from this current administration
would allow a huge, huge market sell-off or bear market per se.
So I'm allocating into small caps.
I actually like to trade the TNA.
Also, when you research how much shorted small caps are on the Russell,
you can see it on Finvis.
The large traders are still heavily short.
So we'll see on any occasion that small caps are going to rally,
they will have to cover.
So this can fuel the rally as well.
Of course, these are very volatile to trade.
One needs to know what they're owning.
I have a bunch of them.
It's not a majority of my portfolio,
but I do own individual small caps and I own the TNA for short term yeah so these are kind
of my thoughts I think although we try to be negative and think and see all the warning signs
I think the market will go higher any sort of weakness that we get this year I will be definitely
buying I'm not going to be scared yet I do believe there will be something major that comes our way,
but it will be probably two, three years from now.
We will pay for this for sure at some point.
I'm not that optimistic, but markets are designed to go higher
and I'm definitely long into the end of the year,
especially for end of October, November, which is a small cup month.
So these are my thoughts.
And again, I'm reserving the right to be wrong.
Appreciate that, Leah.
Great having you on the panel.
And just a quick reminder to the audience,
we do go through kind of just general market sentiment thoughts,
maybe some macro takes here in the first portion of the show,
and then we go around and let everyone kind of dive a little bit deeper
into either a sector or a couple tickers, maybe a story that they're
looking at on one of these smaller cap type of investments. Dougie Fresh, we haven't heard from
you yet on this space. I want to give you a chance to jump in next. Yeah. So our IWM, since it is the
small cap show, it is hitting that resistance right there, Ben about 238 but i have to agree i think it
might pull back a little bit but we will see it go up to its all-time highs like lee was just saying
this market is bullish guys i know we're going to see a little bit of pullback as we had been
mentioning on the show we tend to see it more in august but it is spilling over into our september
and we have the fed coming up what on the 17th that's next Wednesday rates are
definitely getting cut guys you know I've been saying it for like two months the one thing here
though I'm looking at the poly market this is the surprising thing is it going to be a 0.50
decrease right now that thing looks like it's about to shoot off the map and go straight up
and your 0.25 looks like it's about to come down real hard. So that's what I'm looking at.
What's the bet on that?
So actually, as I'm sitting here watching it, the 50 just went up another percent from 10 to 11 percent.
And your 25 percent decrease is at 86 percent and down a percent.
And, yeah, I'm telling you, that thing is curling up right there, that 50 BPS decrease.
That is really curling up hardcore today.
So that's an interesting.
The other side of that, you know, like I'm looking at this week and I see a CPI on Thursday.
We all know that this is the Fed's preferred inflation gauge.
I mean, even Waller is the most dovish on the Fed says, you know, expect an uptick in inflation.
This number on Thursday is going to be high.
We've got Fed fund futures at 45% for an October cut, 67% for a December cut.
Of course, September is a lock.
But I think the same pattern we've seen happen all year is going to happen again.
And that is the market is ahead of itself in terms of rate cut expectations.
And I think you see those things actually reel back, not go up.
That's just my take.
That's okay.
I'm just telling you what poly market looks like.
And yeah, it just curled up hardcore today for that 50.
And like I said, I do believe it'll probably be at 0.25 is what it should be right now.
And then obviously the rate cuts.
And we know it's been factored in. And we've known for a month or two that they were going to cut their rates right now and then obviously the rate cuts and it we know it's been factored in and we've
known for a month or two that they were going to cut their rates right now they didn't have one
a decision in august of course he's he called right in the middle of a show of course sorry
guys um yeah that's uh um yeah and i'm telling you it's just that you're gonna have some rate cuts that's what the uh administration's been looking for anyway so that's, yeah, and I'm telling you, it's just that you're going to have some rate cuts.
That's what the administration's been looking for anyway.
So that's going to help out with the market, obviously.
Whether it jumps up, I'll keep an eye on it today and see what this 0.50 looks like.
It's pretty wild.
How about Octo this morning, guys?
Holy cow.
OCTO went like berserk this morning.
We were in that talking about it last night on my show and this morning and on it at 4
a.m. in the discord.
So Ben, that was wild right there.
And I got rid of it right before the show hit $80.
I might have hit right around the top of it, too, which is pretty amazing.
I don't do that very often, but I might have gotten really lucky there.
I'm not sure.
And yeah, your PPI, CPI are Wednesday, Thursday this week, going to be able to tell us a lot
Fed next Wednesday.
And I'm not surprised by the jobs pulling back by no means.
I've been saying this for over a year.
We're not going to see jobs reports be good for a long, long time, guys, with AI.
The minute I saw AI two years ago,
I said, well, there goes everybody's job. And it just keeps getting better and better and better.
And now they're building robots and everything else. Everybody's job is going to be eliminated
pretty soon. Unless you work with your hands like HVAC guys, plumbers, electricians, and mechanics
and things of that nature, they're going to replace your job.
I'm telling you, it's just in the works. I mean, when you present this to a company owner and say,
hey, we can set up AI and it can be more efficient than all of your employees combined.
And you don't have to worry about holidays pay or anything else. You just pay for it once and
it works and that's it. And, uh,
it's a no brainer guys. I mean, it's, it's literally a no brainer. I don't know how anyone
doesn't, hasn't seen this for a while. And I've been saying, I don't know what any of these kids
are going to do getting out of college. Every one of their college degrees is basically useless
because AI can do their job. I mean, who's going to hire these people to have zero experience
and AI can just, uh, do everything for you. I don't get it going to hire these people to have zero experience and AI can just
do everything for you? I don't get it, but I don't know what everybody's thinking. And so yeah,
jobs reports are never going to look better. Not for a long time, guys, until AI gets all jammed
up and then all of a sudden we need people to do something again. But it's crazy. And yeah,
that's what the market looks like. And crypto, guys, is going to get insane. And Ripple looks crazy.
And that's what it looks like right now. I'm telling you.
And the regular stock market is just a little bit of pullback.
And that looks crazy to get into the end, like in the October and November and December.
So everything looks like it's popping. And as Leo was just saying, and I said it every week on this show, the midterms are coming up soon. There's no way this market's going down. They're not letting it happen. And we're just going to constantly see it get built up. This AI pullback right here is the perfect pullback on the stock charts. And it's just going to get running up, crawled up and just cruising along there. So I think we're pretty bullish.
And of course, we're going to have our little pullbacks on the charts to make a little room
to go up that next leg.
So and keep an eye on crypto because it's getting ready to take off.
Well, there you have it, Dougie Fresh with our thoughts there.
We're through the first half, Ben.
If you want to, I guess, not double down, but dovetail off of anybody our thoughts there we're uh we're through the first half ben if you want to i guess not double down but dovetail off of anybody's thoughts there and some additional
color um yeah first of all yeah that octo was it was crazy unfortunately um you know we have an
awesome uh channel on our discord uh focused on these four to seven a.m. stocks. For the most part, they are low floaters that don't necessarily have news.
So it's not my thing.
I like to trade legitimate inflection point catalysts.
So I just like I saw it mentioned.
I'm like, oh, it's probably just one of those, and I ignored it.
And then it wasn't until 8, 30 or something, I thought, wow,
there's real news behind this octo.
So I ended up getting in from 16 to 25, and I thought it was pretty smart. Now, Dougie selling at 80, that's crazy. So good job. But that was
crazy. It was insane. But a lot of people made a ton of money in our community on that
this morning. Dougie, I do have to take the other side of your thoughts on
jobs.
People always say this about any type of technological revolution, that all the
jobs will disappear and it never happens. And, you know, when you're in a competitive
business environment, let's say you have two companies, right, and they can both now cut
their costs because of AI, company A and company B. Well, one of those companies are going to be like, well,
I have more profit now. Let me think of new ways that I could work hard using AI to outdo
my competition and gain market share. There are going to be jobs created that you never
even thought of. I think it's going to happen pretty fast. Look, I'm working my ass out.
I'm working harder than I ever did. What AI does, it makes people do more. I think the whole world will achieve much more, but people are going to be
put to work and they're going to be do things and have jobs you never even thought of. And we're
going to achieve things you never even dreamed of because people's time will be freed up to now
focus on other things that, you know, whether it's using AI to the best of its capability or
just other jobs you never thought of. So I'm not concerned about that. People will always have jobs in my
opinion. I can't disagree with that, but, uh, I, and yeah, people are just going to have to really
think outside the box. I mean, look what you're doing now. Yeah. You trade stocks now. I don't
think there's going to be that normal nine to five job that people usually had where you need
to go to a computer and do things.
No, I'll disagree with that because the next person is always willing to work harder and they're going to find a way to out hustle someone else, no matter what technology is at their fingertips.
So the jobs will change, though.
They'll be different. Right.
So certain people will be out of jobs because their skill set won't be needed anymore.
But there'll be demand for other jobs.
And, you know, we'll be good.
Don't worry about it, Dougie.
It's all good.
But individual stocks, you know what?
I guess I'll mention one or two.
I don't really have any that are super high conviction right now, to tell you the truth,
in terms of something that I'm willing to swing in size.
There's a few, I think. I'm kind to swing in size.
There's a few I think, you know, I'm kind of following the Godfather knows a little
bit on, he has better conviction on them and I guess we'll see what he says about Cypher
and Bot.
I have a sneaky suspicion he'll talk about those.
But one that I do want to mention is American Eagle, AEO.
It's $3 billion market cap, so I think it still qualifies, but this is one that I wrote
into earnings, not big size. Most of it was playing the event anticipation run into the
earnings report after that Sydney Sweeney marketing campaign and Travis Kelsey, but I was more
interested in the Sweeney part. And I love plays like this because I feel like there's a lot of people, a lot of especially maybe like fundamental investors who see something like that and think it's gimmicky and it's not a fundamental catalyst.
You know, and I think that I like to be forward-looking, and I'm a very optimistic person. So when I see a catalyst like Sidney Sweeney, I'm thinking, all right, this is great.
This could be an inflection point for the company.
It could take it to the next level.
Let's add those thoughts.
And I thought a lot of other people may have had those thoughts, and they wanted to be holding into earnings to see what American Eagle says.
And what's interesting is American Eagle, they crushed earnings, but that had nothing to do with Sweeney. That was totally pre-Sydney Sweeney. American Eagle's
just firing on all cylinders. I listened to the conference call really, really good execution
when it comes to tariffs, when it comes to product selection, when it comes to inventory control.
I mean, just unbelievable execution leading to a huge earnings beat. Again, having nothing to do
with Sidney Sweeney. And then Sidney Sweeney comes on board, and then the metrics that they did share for the
month following the quarter end were just unbelievable in terms of new customers and
momentum and foot traffic and everything.
So I have to believe that this was an inflection point for the company.
And if you pull out a long-term chart of American Eagle, I would use monthly candles on this.
out a long-term chart of American Eagle. I would use monthly candles on this. I think American
Eagle is probably headed to at least $25, but I would say $25 to $35 over the next six to nine
months. So that's one stock for you folks, American Eagle. Another one that's perplexing
me a little bit, I think it was even last week. Was it that we had the chairman of a ton strategy?
T1X used to be Verb.
So I'm saying this.
They're not a sponsor of anything now.
They're not paying me or Wolf or anyone as far as I know.
But we had an interview, and this is regarding the treasury strategy for Telegram.
I don't get it, man.
They announced NAV this morning of $11.90.
The thing's trading at $8.90.
Like I was adding Friday afternoon at $9.50.
This morning I added more at like $9.40, $9.50.
Now it's like in the eighths.
I mean, this is a legit crypto with Telegram.
And the thing is trading three dollars below now.
Maybe someone understands what's going on. But those are the two that I mentioned here for you today.
American Eagle, AEO and T-O-N-X.
Ben, can I ask you if you have any updates on Berna before I move over to MoneyMark?
Oh yeah, absolutely.
We killed Berna last week.
Now, Berna, I played the event into the pre-announcing revenue.
So you see that they pre-announced on September 4th.
Now it was a good pre-announcement. It didn't meet my highest
expectations. I think it was $28.4 million versus $27.2 million, something like that.
They beat by like a million on the revenue. I was hoping for $29 to $30 million. So you see how it
popped and sold off. So that was like me and others. I'm like,
okay, that was good. I'll take the pop to 22 because I piled in like in the days before that
at like 20, 50 or whatever. So I made a nice profit on it. I just, if it was 29 or 30 million,
I would have added more and I was ready to add more. I think if we got 29 or 30 million on the pre announcement, the thing would have gone to 24 to $26. But at the 28 million and change, I thought
it was just good enough for me to take my profit and run as far as my trade position goes. But I've
kept my full long term position on Burna. And I'm sure Godfather will have some additional thoughts
on that. But yeah, I think the quarter could have been a little bit better.
Last year between Q2 and Q3, they actually had a little bit of sequential growth through.
And this is a seasonally weak quarter, yet they had a little bit of sequential growth.
This year, they didn't.
They were like, they just missed sequential growth.
I think maybe there were folks like me who were hoping for sequential growth and a little bit more that were a little
disappointed in that and sold it off like I did. So, but yeah, I'm keeping long-term shares.
Just quickly on Berna, I think the part that the market is still missing with the stock at 20 or
below is that the bulk of the revenue growth is from their compact launcher. And the compact launcher has gross margin of 7% to 10% points, not 7% to 10% more,
but 7% to 10% percentage points more than the rest of their product offerings.
And this is where all the growth is.
So where they're really missing the boat here
is that when they report their next quarter,
assuming they haven't gone wild with marketing,
and I think they're doing that very efficiently
with this AI campaign,
and they haven't gone overboard with endorsements
beyond their original strategy,
I think the earnings numbers could exceed market expectations
by a meaningful amount. So I've consistently said in our community that I see fair value in the mid
20s. And I would not be surprised to see us get back into that $25 to $30 range before year end.
So I still think there's a great opportunity, despite the fact that it's just been an absolute
peg of a trader. You know, couldn't even hold these gains from this great pre-announcement.
But that's the part of the equation that the market is missing, in my opinion.
Thanks for that. Beautiful. Yeah, I'll be holding for that earnings report on my long-term account.
We'll see. Maybe I'll take a trade position to that as well.
Perfect. Appreciate you being getting us kicked off there and uh getting that little extra
thought there with you and godfather let's go over to money mark and see uh what's on his radar
yeah so uh my top picks are fairly unchanged at this point so you know godfather talking about
gold being a good thing to own i I am not owning gold. I'm owning
derivatives on gold. So you got GDXJ is the junior miner's ETF. Dougie, you take a look at that chart.
I had a channel drawn on that and I was just having a great time buying and selling that
at the highs and lows of the channel.
And my last sell, man, I'm kicking myself because it just blew right through the top of that channel.
We've been on that one since the 30s, now at 86.
So, you know, you've got gold at all-time highs.
You've got GDXJ at all-time highs.
What's not at an all-time high is Geodrill, G-E-O-D-F.
It did hit an all-time high. We got you guys in there at a three-year low,
for people who have been following me for a long time. It was at a three-year low at the beginning
of 2024, sitting at about $1.50 in the Canadian markets, and got to all-time highs just a couple weeks ago.
And then, right to what Ben was saying, reported great Q2 numbers and sold off of those all-time
highs down 23% to the 200-day moving average.
And now showing a little bit of strength right there, getting its footing back. This is the name, I think, from a gold perspective that is great to pull on right now, especially given that there was a large seller all the way from the lows of and they've now gotten underneath a threshold.
And what I've heard from sources on the institutional side who like to go and pick
shares off of those guys once in a while, they're not interested in selling at those levels. So we
got all kinds of positive data points for those guys. As far as AI goes, that's my specialty going back to the 90s when
I covered the internet bubbles, rise and bust. My number one holding right now, period,
is Gatekeeper Systems, GK, PRF, remains number one. I've continued to do more and more research
on what's going on here. And what I've understood is that the market share gains that we have found, you know, scouring the markets for every win, seeing who's winning and seeing their market shares increase from about 20 percent at the beginning of last year to over 40 percent now.
It's because of the AI capabilities and the train capabilities.
So you got buses and trains are the primary fixtures that they put their devices on for AI
monitoring. There are now government mandates in the US and Canada that are creating just massive, massive deals in excess of their
full year revenue last year. They're on a $32 million run rate right now. They just won a 20
plus million dollar deal with New York. The rumor is that's going to blow up into a 100 plus million
dollar deal. There is already a 70 and another $100 million deal in their
pipeline. And the urgency is that about one, two years from now, these mandates have to be
completed. So all of these train and bus operators have to have all these AI cameras loaded up,
installed on any of their buses or trains that are running.
And these guys are winning 40 plus percent of the deals that we're seeing out there.
This is tremendous.
It's going to be a – yeah, go ahead.
Mark, if you can clarify, I guess I saw you made a post on this after that contract was finally PR'd after months.
About the market cap, I think you had mentioned it was like $30 million.
And I respond to you on my Webull.
It's like I've shown $134 million.
What's the accurate market cap on this?
Yeah, $134 is the market cap number.
$30 million is the revenue number.
So when I'm talking about this is a $30 million company, I'm talking about in terms of revenue and winning.
Okay, got it.
Yeah.
So just to give people a sense of scale, right?
You're dealing with a company that has been only doing $30 million in revenue of late.
And we're looking at those numbers.
I mean, the New York deal alone, that's just for Long Island, right?
That's just for Long Island, right? So that 20 million, it's a two-year deal. So whatever revenue they've been doing, you're got Chicago, you've got Los Angeles. They've already
So that $20 million, it's a two-year deal.
won a piece of New York. They've already won a piece of Toronto, which is number three in North
America. They've already won. Philadelphia is number five in North America, and they are telling
everybody else to use them. So this is just going to be an absolute monster groundswell of business coming their way.
They've built up inventory in advance, which tells you that they've got an inside track in terms of their likelihood of winning these deals.
And the number one competitor that's been distracting them in the marketplace is running into some financial dislocacies.
So their market share might increase even more at this point from what i understand there's going to be based on the way that these deals go down
and what time frames are needed to install these cameras and go through the whole process
we should expect to see a lot more deals to get announced by these guys over the next few months
maybe even before they announce their Q4 results.
So stay tuned for that. That's the update there. And then real quick, I did have a meeting with the management team of Crescendo, C-X-D-O, another AI name. They've told me that they will be announcing an AI product, a new AI product in the fourth quarter.
In the meantime, I was able to ascertain that July and August were strong for bookings.
So, you know, obviously they won't tell me if September ends up being strong for bookings
because then I don't know what the quarter is.
But at least we've gotten that uh in the bag
as far as july and look if a technology company has a great july and august the rest of the year
is almost always spectacular right like july and august is usually the quiet time for tech
so um so cxdo looks safe as far as that goes they continue to win deals they already announced
another win um stealing the
account from meta switch which used to be owned by microsoft and microsoft gave up microsoft was
getting killed by these guys so much that they just gave up sold the businesses and they also
took another customer away from cisco as well so the momentum remains unfettered there and
management just reiterated what's happening as far as that goes.
And letting us know that we're going to see more AI products coming up.
So that's it for this week.
Oh, great rundown, Money Mark.
Appreciate that.
Let's go over to Leah next, and then we'll hit the godfather.
Leah, what are you looking at?
Any individual name sectors that are on your radar right now?
so Atai
I like this one, I had it for a while
it's a biotech company from Berlin
that's messing around with psychedelics
and brain drugs and it really
has positive results
when it comes to treatment of depression and
anxiety and as we can
see a lot of people suffer with
this disease and
it's actually growing
especially with young people
so they're working on BPL-003 no spray version of 5-MeO-DMT.
And I know many listeners probably don't know about this,
but I have a personal experience with this substance.
It truly does work for anxiety and depression,
but it usually was administered by all sorts of shamans around the world,
which is kind of very scary and risky,
but this company is really doing research on this.
It also is extremely effective for drug addictions and alcoholism
because it basically resets your brain
and brings you back to the stage of complete,
like when you were born, neuroplasticity.
So you can retrain your brain and start from beginning. And those substances
really work, as I said. And it's very, very nice to see that this company is actually doing it in
lab settings. So that's one I have. And I also like Invis. Today was a very good day for Invis.
It was up over 20%. I've been in this name from $1.40. And they develop LiDAR sensors and perception software for autonomous vehicles.
As we know, this is the future, of course.
I just signed up for the robot taxi in San Francisco.
I hope to get on the list so I can try it out.
I only use Waymo at this point.
So I'm a big fan.
And yeah, so this is kind of the two stocks, small caps that I have.
Invis is cutting it just very closely to 300 million.
And yeah, so this is it.
And then, as I said, I have the TNA for a short term into November.
I wouldn't suggest to own this three times leveraged
small cap ETF,
but it's fun to trade for short term. If someone wants to
do just the
IWM, it's safer
to own for longer term.
That's it for today. Thanks for having me on.
What was the
first ticker I cut out just for a moment
when you were given that first, the biotech one?
Atai. A-T-A-I.
Atai Life Sciences.
A-T-A-I. Thank you thank you leah appreciate you being here on the
panel with us this afternoon um make sure if you are in the audience that you're following all
these great panelists we have up here on the small cap show and uh with that said let's move over to
the godfather yeah i'll touch briefly on cypher just because Ben mentioned it. This is a company that,
as we all know, they're converting their HPC, or sorry, their power and their data center capacity
to HPC. They, like a lot of these guys, found themselves in the right places with the right
power contracts. And now, of course, you've got seemingly insatiable demand
from AI for large data centers.
So not too long ago, a couple of weeks ago,
this thing was already up at, I think, 878.
Might have even touched nine on anticipation,
as they have been saying consistently
through corporate presentations,
that they are going to get a deal done
with a hyperscaler before year end.
Meta's been thrown around.
Google's been thrown around.
Frankly, it doesn't matter who it is.
But they gave another presentation this morning.
It was a Wainwright presentation.
They said that there's a frenzy pace of interest in their sites.
They said that, you know, that the desire is huge.
And, you know, again, they just basically reiterated what they said before,
which was that we are going to get at least one deal done,
at least one deal done before year end.
So the stock had floundered down to around the $7 level
and it continues to make new highs back above $7.50.
I think a 20% move that takes you into that sort of $8. $80, $9 range is warranted. And this thing probably
does what we saw Wolf do with similar capital structure into that potentially $11, $12 range
on an actual deal, depending on what the metrics are. Keep in mind that they do have Fortress as
a financing partner, which is both positives and negatives. They've got to give away a little bit
more of the economics, but it increases their ability to do deals, not just on their Barber Lake site,
but, or their Black Pearl site, but also Barber Lake and then Stingray is sort of their tier two
sites. So that's Cypher. Yes, we need to talk about MBOT, which I've talked about on the show
many times. They finally got 510k approval for their endoscopic robotic system.
This is basically steering a little camera through blood vessels for insertion of stents and
various things for endovascular procedures. Look, this company, as I've been saying,
is going to get taken out. There's just no question about it. If you look at the management team here, it's full of
industry players. I think I highlighted these names briefly yesterday or last week when we
were on time constraint. The CEO is XJ&J. The CTO is previous from IceCure. The CMO is
XBoston Scientific. They've got a Striker guy that heads up their sales.
They've got the former business development VP and the head of M&A strategic partnerships for J&J as a director.
So I don't know who buys it.
Maybe it's Medtronic.
Maybe it's J&J.
Maybe it's Striker.
Maybe it's Siemens.
Again, I don't care.
But look, run the numbers on this a little bit.
Okay, fully diluted. There's 77.4 million shares out at $4.30. It gets you around $340 million
market cap, but that includes $95 million in cash. And these guys are very frugal. They only burn
around $2.5 to $3 million a quarter. And that includes their pre-commercialization activities, which they've been fairly aggressive on in anticipation
of this approval. The approval was not a surprise. The trials were 100% successful,
no adverse events. The biggest thing here is that surgeons are able to operate the system remotely.
So it lowers their radiation exposure by like 92%.
In any event, it's about how big this TAM is. And, you know, there's various numbers being
thrown around. Is it 15 billion? Is it 10 billion? Look, in the press release today,
announcing the approval, they talked about two and a half million annual procedures. I ran those
numbers. That gets me to around a $15 billion TAM. If you assume they do 5% of that
market and they get 25% of the procedure dollars, that's $200 million a year. I think those are
conservative. You put historic medical device multiples on this thing on an EV to sales that
are in the five to six range, and you get 15 to sort of $17.50 a share as a takeout value.
And you get 15 to sort of 1750 share as a takeout value.
Now, that's at sort of mature adoption.
I think you got 18 to 24 months to see this thing ramp.
You'll start to see 2027, late 2026 sort of exit revenue run rate numbers around 75 million.
If you put the same multiples on those numbers, you get to sort of six to seven bucks a share.
If you put the same multiples on those numbers, you get to sort of six to seven bucks a share.
And that's what I've been saying in our community is sort of like my first stop fair value for this thing.
The real value is going to be whatever somebody is willing to pay for it, because obviously they can capture a lot more of that TAM.
People like Stryker and Siemens and J&J, et cetera.
So, yeah, that's, look, I think minimum,
you've got valuation support.
They go this on their own to six to seven bucks.
It gets taken out for strategic premium
and you're deep into double digits.
So that's MBOT.
What I really want to talk about today is LDI, Loan Depot.
We saw the stock skyrocket last week
as Citron highlighted it as a long,
basically saying, look, you guys are excited about Open. You're excited about OPAD.
From the housing side of things, you really ought to look at Loan Depot. People that have
been listening to the show know or listen to me on spaces on a weekly basis know that I've
been talking about housing. As Ben mentioned, I've been basis, know that I've been talking about housing.
As Ben mentioned, I've been bullish on NAIL. I've been talking about a steepening yield curve. I've been talking about, even before this, quote unquote, potential housing emergency, the Trump
administration's platform during the election campaign, let alone this sort of renewed talk
about it being a big focus for the midterms in November next year, that housing affordability
is a big part of the mandate. And now that I say that the tariff side and the trade side has been
dealt with, I think you're going to see them turn their guns towards housing affordability. And that
can take all sorts of forms, right? There's been talk about federal land usage. There's been talk about loan guarantees, obviously the IPOs of Freddie and Fannie.
There's been talk about grants. There's been talk about incentives.
And we're talking both for buyers as well as builders.
There's talk about exempting building materials from tariffs,
all of these things, on top of, of course, the pressure that the administration is putting on the Fed to lower rates to stimulate housing, which is a very, very big part of the economy.
So look, I dug into this over the weekend. This name wasn't on my radar screen. I don't know why,
but they are the second largest retail home lender. I'm obviously familiar with IWMC, the largest one. So this was before the actual
report, if you want to call it that, which was pretty flimsy, that came out from Citron this
morning. I came to a number of five to seven bucks. If you look at the Citron report, which came out just as I was finishing my piece,
they came out at six bucks. So the key to the premise here is that they have industry-leading
recapture rates. And recapture rates are just a fancy industry term for customer retention in
the mortgage business. It basically means if a customer is selling their house, they pay down their mortgage, what are the chances they come and they, you know, come back to Loan
Depot for a new mortgage, or they refinance their mortgage? Do they do it at Loan Depot,
or do they go across the street to the competitor? Well, their customer retention or recapture rates
to use the industry lingo is 70 plus percent. The convention, their conventional peers are like,
industry lingo is 70 plus percent. Their conventional peers are like 35 percent. So
they're literally double. What this means, of course, is that your origination expenses
are low if we get a refinancing boom. So you've got that. There's tremendous leverage in the
business model, but the higher your recapture rate, the more inherent business leverage you have.
On top of that, of course, they, like other industries, are using AI to enhance their loan processing efficiency.
They've got their own proprietary, they call it their Mello technology platform.
But, you know, it's essentially like everybody else using digital transformation to drive efficiencies and returns and margin increases. So is it working? Yeah.
Look at the most recent quarter. They actually saw a loan origination volume increase 30%
while direct origination expenses were down seven. And then their other GNA, which was really what's
gotten out of line, fell like 2%. So what else has happened here? Well, the founder of the company that owns 45%,
this guy, Anthony Shea, came back in June as CEO. This is kind of like Steve Jobs coming back.
The previous management who, like I said, sort of let things go lax on the operating efficiency side, was ousted. Shea stepped down in April of 2022. And in 2021,
for example, Loan Depot did over $600 million in net income. They did a loss last year. Now,
2021, of course, mortgage rates were like 3%. People were refinancing like crazy. I think we
got down to like $26 265 in January of 2021.
So it's not that environment.
But the whole premise here is that we know that rates are on a glide path lower.
It is a rate cutting cycle.
The pace, the number of cuts, all to be argued for another time.
But I don't think there's any argument that rates are going lower from here.
That, on top of whatever these government-driven tailwinds
might be, could drive and should drive both origination growth, overall loan volume,
as well as refinancing. And this is, again, where that sort of real leverage comes into the business
model. On top of that, you look at where this thing is trading.
It has a price sales multiple of around one. The leader UWMC is at five. So you're paying five
times as much for only two times as much revenue, but you've got twice as much in terms of recapture rate. So there's a real disconnect.
I mean, if you put the UWMC valuation on LDI, which is where I was driving my numbers,
you know, I get value in that sort of five at first stop, seven at true fair value range.
So despite the stock's 26% move today, it's a double from here, potentially.
What else is going on? Of course, you've got the meme stock trend in the market with Open and
OPAD. And one of the things that's been thrown around by the Trump administration is that
to improve affordability, they might clamp down on corporate buying of
homes. That's a key core part of these business models. On top of that, quite frankly, the open
and OPAD business models suck. They basically buy homes, hold them in inventory. It exposes
them to a massive amount of market risk, also debt financing risk.
It's a massive amount of physical inventory for a low margin.
I'd much rather be on the finance side of things. And if you look at what Rocket just purchased Mr. Cooper, their servicing portfolio, and this was highlighted by Citron,
you get valuations just for that portion of their business
in the $5.5 to $5.50 range. So I completely agree with them there. We got all over this thing
around the $2.50 mark in our portfolio or our community, pardon me. I put out a full 10 reasons
to be bullish first thing this morning. So come join know, come join the story trading community and, uh, you can read all about it. There you go. Uh, thanks Godfather for the great rundown there. Dougie fresh. We've not
heard from you yet. We are at the top of the hour, but we've got a little bit of free time here. If
we need to run over a few minutes. All right. I'll cruise right through a few of them. So open door,
you know, we've talked about since 50 cents and we're almost hit seven dollars or went over seven yesterday
or today it did actually and then it's pulling back right now it is down a little bit and it
probably is going to pull back a little uh a little more so watch for that one i told you
last time it was pulling back and it did and then i told you exactly when it was popping back up and
it popped up so let it pull back a little bit at the moment denson mines dnn a uranium play from canada
and this one's run way up it's just a little bit flat today at 237 but definitely in a bullish
state right there so you should have it uh bounce off right around like that 231 area so it might
pull back a couple cents and get cruising s bet i know we
were looking at upxi the solana treasury this s bet is setting up again that's that uh ethereum
treasury one it's actually up a little bit since i've been looking at it uh just on the show right
now so it is jumping up as we speak right now it's up over and it just keeps going up so take a look
at that one it is definitely
getting set up down there and like i said crypto is getting ready to get cruising this next one is
nxtt next technology it's been showing up on the scanners for like two weeks now and it is getting
really set up this one's a penny one this is a true like penny stock one but thought i'd give
it to you guys it's at 14 cents i have no idea what's
going on it's a china company but i'll tell you what it keeps setting up on all the scanners and
it's looking pretty good and then i had a question for uh money mark have you still been looking at
amplitude amp l because i started watching that thing and at 11 it kind of bottom and started
popping up it's at 11.66 and not looking too bad right there
money mark so i didn't know if you were still taking a look at amp l because that one looks
pretty decent and uh go ahead yeah so i mean amplitude still cranking right away
continuing to win deals in fact the latest research put out there, it looks like there's increasing utilization
being made of their technology by AI super giants in their processes. There was a recent
acquisition, I don't have it in front of me, I'm out of the office, where one of the competitors in the space, who is about one-eighth their size, got acquired for $1.1 billion.
By comparison, Amplitude's market cap is about 1.4.
So a very comparable acquisition price, but for a company that's only one-eighth the size.
That's only one eighth the size.
By comparison's sake, the company that got acquired has $40 million in revenue.
Amplitude does $100 million in R&B alone.
So we continue to be bullish on them.
We continue to hear bullish things about them.
I've got contacts inside the company.
And stay tuned because it's september and as we get
closer to the end of the month and we'll get better reads on how the quarter turned out
cool yeah and uh stock chart turned around looks pretty good there so that's ampl and then just to
touch on uh burner real quick ben b-y-r-n that one's starting to crank up i know you had a nice
run on it like you were talking about about the other day when it popped up.
It did pull back a little bit, but that is getting set back up.
It's rolling off the MACD right now and looks pretty good.
Your geo drill looks pretty good at the moment, Money Mark.
And yeah, that Cypher and MBOT jumped up today in an LDI.
I was looking at that.
That thing looks pretty strong too i know
it's been up the last few days in the community and has run up but it does look pretty good to
continue its way up so that is what i see on the market and thanks as usual and uh for having me
every week it's always a great time talking to you guys and the whole team is back again and leah
thanks for joining us this week.
Nice to hear you.
And I'll kick it over to Wolf.
Hey, can I make one more quick comment on LDI?
Yeah, absolutely.
So look at this thing.
You know, open straight at 400 million shares today and stock price at six.
I don't know exactly what the VWAP is, but, you know, just some simple napkin math on dollar volume would suggest that the dollar volume on open, I guess you could maybe combine OPAD with that.
But you're talking about 15 to 20 times what we're seeing on LDI.
So, you know, look at the stock charts of OPAD, look at the stock chart of open and then look at the stock chart of LDI today.
look at the stock chart of LDI today. There's clearly some rotation within this housing theme
away from those names into LDI. So, you know, you've got 5%, less than 5%, if you include OPAD,
of the dollar volume focused on LDI. So fundamental valuation for me, twice the current
share price. I don't know what the technicals say to you, Dougie, on LDI, but just from a money flow standpoint, I mean, even if we were to capture a portion of that money flow when people wake up and realize that the business model is far superior in the valuation, I don't even want to get into the valuation of open.
makes no sense whatsoever.
It makes no sense whatsoever.
But anyway, I think there's a great opportunity there
for even just the smallest amount of rotation
or participation in this meme theme by LDI.
Yeah, absolutely.
And I'm one of those folks who are rotating.
I was playing open a little bit last week,
but begrudgingly, I really didn't like to
because I don't like playing other people's pumps,
especially when Eric Jackson's out there being like, yeah, it's a hundred bagger.
I'm like, I really don't want to play the stock.
And then Citron, I just love when Citron comes out with long ideas
because they're notorious short sellers.
So if you get like a really skeptical person liking something long, you know,
so that sealed the deal for me.
I'm like, I'm not even looking at open anymore.
I like deleted from a watch list.'m only focused on ldi so there's definitely some
rotation happening over there real quick before we close it up and um godfather or anyone else
i'm curious i haven't figured this out why the heck is tonx trading like three dollars below
nav has anyone had a chance to look at that?
I meant to touch on it, Ben.
I don't know the financial parts of it.
You know, I don't look at the numbers, but I meant to tell you,
I've been watching this chart since last week,
and it has just been dipping down.
That 20 is coming down on it.
It's way under its trend line at $8.74 right now.
I think it might even get into the basement a little bit.
I'll see
it i'm watching it today i've been watching it this morning to see if it has any look like it
really wants to bounce up there it's down like almost 20 right down uh right now over 18 percent
and uh so yeah if it's going to bounce or bottom it's going to be right now and if not it's going
to continue down a little bit more and then we'll definitely know it's going to be bouncing off of that bottom but yeah i have no idea why it's down so much
but when we looked at it last week it did look like it was pulling back remember i did say that
i said hey that chart looks like it's going to pull back i'll keep an eye on it and i watched
it the entire week we've gone over it on the show every night and uh yeah now we're down here at a
very good spot i feel like but like i said it could
dip down a little lower i feel like it might be bottoming out here yeah so yeah the numbers
the 200 dma is at 782 just if you look at the technicals it looks like a magnet but
i don't know godfather have you looked at this i know you were looking at it yeah yeah my take on
it is pretty simple and I noticed this with the other
treasury plays. In these, as I mentioned, look, treasury plays, crypto treasury plays are a
bull market phenomenon. I won't get into the whole thesis there about why this sucks as a business
plan. But needless to say, there is a direct correlation between price to NAV and the direction of the underlying.
And if you look at TAN, it's down 10% in the last two weeks. So if that trend were to reverse and
we were up 10%, I think you would see some material improvement in that discount or premium to NAV. And of course, they can only grow their ton per share
if they can issue shares at a premium to NAV. So when you're trading at a discount to NAV,
you're basically forced to not do anything. You can't issue shares. I know that they've
announced the flexibility to buy back their shares. You know, I know that they've announced the
flexibility to buy back their shares. And, you know, presumably that's what they do when they're
trading at a discount. And then they issue when they're trading at a premium. So I think what
they need to do is tell the market, hey, we're actively buying back our shares right now,
because we are trading at this discount to NAV. And, you know, I would expect that, you know,
that management team,
who seems pretty glued in in terms of market sentiment, to be doing that in his, you know,
roadshow that he announced that he was going on through Europe and Dubai. And I can't remember
all the places. So, yeah, watch the direction of the crypto relative to the price to NAV.
And with that said, Godfather, you're dead on the money with that
because the coins the the altcoin i'm telling you these crypto coins are looking crazy a lot of these
altcoins and meme coins and things of that nature are looking like they're bottomed out right now
and getting set up to run and these things do run like a hundred times with no problem so i could
see that coin getting cruising um and especially
when this gets turned around that's why i've been watching the stock chart to see and it will i'll
tell you exactly the coin if you watch them both they you'll they'll both reverse at the exact same
time and they will they'll go cruising along and it'll be pretty fast so that's why i'm watching
it because it should have a pretty fast bounce back with the crypto and meme coins looking so good right now.
All right.
Appreciate that, folks.
And by the way, you.
Yeah, great show so far.
If anybody has any final comments or anything, I'd love to hear those.
We did mention that off to Dan Ives is on the board, I believe, of that.
That's up 4,000% or whatever crazy today.
And BMNR did take a position in that effort around 140 was the reported price there.
So obviously that's doing well for those names and that crypto treasury subject there.
Gold also continuing its breakout and and flying so very interesting things
happening around the market if anybody does uh have any final thoughts or or things to leave
the audience with tonight please jump in now if not we'll go ahead and start to uh close this up
no we're good just wanted to uh welcome leah to show. I don't know if you'll be a permanent fixture, but glad to have you back in the future. Definitely a nice having actually a female on the panel. Not a lot of those in the stock market. I like it. It mixes things up a little bit because people have different perspectives. So really appreciate you on the panel here today.
on the panel here today.
Thank you so much. It was a pleasure to be here.
It was a pleasure to be here.
Welcome, absolutely.
Make sure you're following Leah.
Make sure you're following MoneyMark,
The Godfather, Dougie Fresh,
and of course, Story Trading up here.
We appreciate everyone tuning in.
We do this each and every Monday
at 1 p.m. Eastern right here on Wolf Financial.
And Small Cap Show lives on for another week.
We will see everyone for this show again next week,
right at that 1 PM hour.
And for the rest of the day,
we do have stocks on spaces coming up at power hour.
And then of course our stock picks for the week show.
And Ben,
me and you are in a two horse race here,
maybe a three horse race with Chris Patel.
We'll see,
but little two horse race here.
You'll have to tune in and see.
We both had some earnings picks that went very, very well. Ben currently leading. I'm currently in second
place with a couple hours left of market here. So make sure you tune in 5 p.m. Eastern tonight,
right here on Wall Financial for the Stock Picks of the Week show. And we'll see you guys then.
Appreciate everyone tuning in. This entire space, as always, was recorded.
If you missed any of the great thoughts shared by the panel, the front half of the show, of course, as always, is the market sentiment, broader market, macro type of thoughts.
And then some really great individual deep dives and tickers mentioned there in the second half of the show.
As I close this out, that recording will be available to you.
And we will see you guys on the next space.
Thanks, everyone. Thank you.
