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THE SMALL CAP SHOW
Recorded: June 9, 2025 Duration: 1:29:27Space Recording
Short Summary
In a lively discussion, crypto enthusiasts explored the latest trends in technology and finance, highlighting Apple's WWDC event, strategic partnerships in biotech, and the bullish sentiment in the market. The conversation also touched on the increasing adoption of AI and its implications for crypto, alongside insights into emerging investment opportunities in small-cap stocks and Canadian companies.
Full Transcription
Thank you. What is up everyone? in happy monday a bit of a slow overall market this morning but it's uh
it's green it's moved up a little bit so so we can't be too upset with that there's definitely
some things moving in the market and with this crew there's always something moving and making
money i'll tell you that first right off the top here, Apple starting their WWDC event right now.
I've got that pulled up over here on the side, but honestly, I don't care what new colors they announce today.
I'm more excited for small cap.
So right here on Wolf Financial with the crew, Money Mark joining us.
Dougie Fresh up here, and of course, my co-host is back, Ben.
Great having you back on the space.
Hope you enjoyed your time off last week.
We missed you.
We shouted you out a couple times.
And hope you're doing well.
I miss you guys too, man.
I felt kind of lost when I came back.
I was off for Monday and Tuesday.
I'm like, what are those folks talking about?
It was like a half week for me because I was sick on Friday.
Still a little bit sick now, so I may not be able to talk a lot.
But, hey, Em, do you remember what the guys talked about last week?
It would be great if we can get just a quick, maybe like a five-minute or less overview
about what the top picks were last week.
Anyone want to chime in with that really quickly?
I say let's just kick it off with that.
Money Mark, do you want to rehash anything that maybe Ben missed out on last week
and give us any updates on it?
Yeah, if we can just quickly go around.
I just want to catch up, and then we'll come around with updates after that.
No, I mean, we went over the macro like we always do.
And, you know, the money's flowing, the mean, we just, we went over the macro like we always do. And you know,
the money's flowing, the big, beautiful bills out there. And whether you like it or not, it does
seem to have the momentum necessary to pass. And if it does, then, you know, people are concerned
about what that means for money printing. But the treasuriesuries the yields are not responding overtly negatively so all we have
is a money printing issue right so the dollar continues lower and everything priced in dollars
goes higher right money is flowing that's liquidity that's money in the system money in the system is good for stocks and stocks
stocks are up and work any alpha from whatever stock you talked about last week how did it do
since since last week whatever oh good lord i mean the last week was was amazing i mean we talked
about tssi we talked about idn uh the godfather had names that he talked about. I mean, I think virtually everything we've been talking about
has the same hockey stick stock pattern. You could ask
Dougie Fresh about that. Nice. All right. Good. So, TSSA,
IDN, I've been watching both of them. They did great. Beautiful.
Real quick, I'll come back around. Godfather, what did I miss last week?
What was your top pick last week?
I introduced a new pick, Journey Medical, Derm.
And it's actually one of the few names that you can buy cheaper this week than you could have last week.
So I know we've talked about that, and I've got full due diligence on it in our, in our discord. But yeah, look, this is a biotech company that is, it's not a biotech in so much as
it's, you know, it's R&D phase is over.
This is about commercially launching products and they've got a suite of products.
These are the guys that have been in the market, you know, with the number one acne drug,
Accutane for, for years.
And now they've got a new blockbuster that they're just rolling out.
So they're covering 90% of the subscriber base already have been.
So they've built out their sales team.
The costs to get this through the FDA are now behind them.
They've got approval in November.
So it's all about launching this.
And the market just hasn't caught up to the fact that this new drug, which is called M.
Rosy, which deals with rosacea, is set to capture 20 to 30% of the market share of the incumbent.
Head to head, better efficacy, you know, less drawbacks. Pretty much every one of the prescribers that
they've talked to in this field of leading dermatologists have indicated that they are
going to write scripts for this, you know, talking about a peak market that's in excess of 200 million,
another 100 million in international that they own 100% of the rights to that
at any moment they could drop a licensing agreement. They've done this before with other
products. So yeah, stock was close to 52 week high when we talked about it last Monday.
I think it was 807 or so. And today it's 7.23. No reason other than markets focused otherwise.
So great opportunity there still.
All right.
Cool.
Thanks for giving me that personal update.
Let me just give my quick view on the macro, by the way.
Just got an alert.
No, it didn't break yet.
Watching WeRide to see if we get a second entry on it.
It's trying to come back.
But in any case, on the macro, I'll give you my take here.
MoneyMark talks about it a little bit.
Things are looking good.
You know, I've been pretty bullish since the QQQ spike broke above the 200 TMA on that China trade weekend when we got that good news on Monday.
And there's been a couple days where I was hesitant, where I was like, wait, can this
turn back because of like some geopolitical news?
And I was wrong on those days.
On those days, I'm like, I'm not trading or I'm not, you know, and there were opportunities
to buy the dips.
So, you know, that kind of kind of strict interpretation I had was the correct one if
I just stuck with it which
is we're above the 200 dma so you know you can you can buy the dips you can buy the small caps
everything's pretty good and and now the iwm obvious breakout uh this was in my weekly note
last night i'm sure everyone saw it uh compared to the three indices iwm had a standout technical
breakout on fr. Really impressive.
It's obviously going to the 200 DMA.
I think that's pretty much a guarantee at this point.
Let me just see where we're at now.
213.64, 200 DMA, 215.
I would guess we hit that before the CPI.
There's CPI Wednesday morning, right?
Correct me if I'm wrong, but I would imagine we hit that before CPI.
And, you know, and this is really giving that.
If you look at it, it is also a little hockey stick pattern there that Mark was talking about from May 12th to now on the IWM.
So that's helping give a nice bid to small caps, especially ones with catalysts and good fundamentals.
They're getting this extra tailwind from IWM doing well.
I don't know what's going to happen after Wednesday with CPI. This is definitely an important point. Just like I gave
a lot of respect to the 200 DMA on QQQ Spy, I think you've got to do the same thing. Sometimes
there's just these technical levels that, in my mind, override everything. Instead of trying to
be a pundit and look at the fundamentals and the catalysts and say, yeah, I think the market's going to be good or not.
Like these 200 DMAs are freaking important, man.
So this is a key test coming up for IWM this week.
It's obviously going to react probably violently to CPI one way or another because we'll probably be right on the 200 DMA when CPI comes out Wednesday morning.
So, you know, either we get a big correction or we gap up above it.
And if we gap up above it, then all the stocks we're talking about in this room will do even
that much better.
So that's my take on the macro, Em.
I'll turn it over to you for any thoughts.
Do we want to get some macro thoughts maybe from the rest of the crew and then get a little
bit more down to earth?
However you guys want to go.
Yeah, no, no.
Do you have any macro thoughts yourself before we do that?
I mean, from my side, it's, I mean, nothing's really changed.
We still have one half of a trade deal on the tariff front.
We have this tax bill that's being deliberated.
I just, I don't know, float higher until otherwise seems to be the correct answer right now.
We'll see what happens.
Rates don't look like they're going anywhere.
The data has been fairly strong on that side of things.
But I'm interested to hear what everyone else thinks on that.
A little bit surprising.
I'd like to get the take from a couple folks here.
There was strong economic data on Friday.
TLT went down.
Rates went up.
But then IWM had that major breakout Friday.
And I don't know what that was about.
I don't know what that was about.
I didn't research it a lot.
But I'm like, I'm going with the technicals.
But I'm like, I'm going with the technicals.
If anyone has any insights as to why IWM broke out on Friday on rate, you know, people are
now the rate cuts are being expectations being pushed back to at least September now instead
of July.
So if anyone has thoughts on that, why is IWM pumping so much?
Let's start there.
I'm happy to go.
Go ahead. I'll give you the full rundown and I've got some thoughts specifically on IWM, which I'll get to.
So, look, we are now back at 6,000 on the S&P, right?
We're up some 30% off the lows and, you know, we're then shouting distance of all time highs on, you know, all of these indices.
And, you know, a number of the key sort of market leaders
did make new highs again last week,
the Microsofts and the Broadcoms of the world and so on.
So despite setups that looked rather rich going into earnings,
a lot of these names managed to come out unscathed,
include NVIDIA in that bucket as well.
So you've heard me exercise some caution because of where we're at. But to go higher from know, where do we, you've heard me, you know, exercise some caution
because where we're at, but, you know, to go higher from here, what do we need to do? We need
to do one of two things. We either need to have earnings continue to get revised higher, or we
need multiples to expand. And, you know, we're actually getting both of those. And, you know,
What contributes to that ultimately is the economic data. So if you go to the economic data, you go, OK, yeah, as you just pointed out, Ben, we had relatively solid non-farm payroll numbers. Inflation seems to be less and less of an issue. I think tariff headlines are sort of starting to fade, even though we don't have real deals. I think you can just look no further than the VIX and see it posted as first sub-17 close since mid-February.
what contributes to that ultimately is the economic data. So if you go to the economic data,
So you got that.
You've got forward earnings revisions that are actually seeing some breadth.
They're being revised back to the positive again.
Q1 numbers were all pretty solid.
And people are guiding.
There's a reasonable amount of optimism in the guide for these names to reproduce good numbers in the upcoming quarter.
And I think the other thing you're seeing here is retail is really leaning in.
Net leverage rose for the fourth straight week.
So it feels like these gains are being chased higher.
So how does that manifest itself?
Well, it manifests itself in the IWM in two ways materially. So it feels like these gains are being chased higher. So, you know, how does that manifest itself?
Well, it manifests itself in the IWM in two ways materially, those being the biggest weights,
financials and biotech.
And, you know, when the Trump administration first came in, sort of wholesale changed a bunch of key leadership positions at the FDA.
It sent ripples through that sector.
People were concerned about, you know, where the
FDA was going to stand in terms of, you know, their take on, you know, pathways to approvals,
whether they were going to get delayed, accelerated, otherwise, just a lot of
uncertainty. And I think that some of that's been resolved. We saw some actual positive data points on that coming out of that regulatory organization over the last couple of weeks.
And I think you're seeing that reflected in the XBI, LABU and the other names that track that.
Of course, financials continue to be strong here. We've got additional boost from the Wells Fargo news, the regulatory lift there.
But steep yield curve pending,
you know, further deregulation in the second half of the year.
Those are the two biggest weights in the IWM.
So it's not surprising to me that we broke through that key 210 level.
And, you know, as you pointed, we're over 200 day moving average on all these main indices.
That's a, you know, green light for stock picking.
I'll reiterate what I keep saying, which is as
long as the 10-year is under 4.5 or even under 4.75, it's a green light as well. So all of that
said, here we are, July. And in the last 16 of 17 years, July has been up. In fact, if you go through the individual months, it's been the
strongest month of the year with an average return of 4.2%. So I think we're in a pretty good place
here unless, of course, there's something from left field that comes out of the trade headlines
or otherwise. But we're starting to see a pickup, not just in the leadership sectors
where we need to see it. We need to see, obviously, tech continuing to perform and we're getting that.
There's been a positive glow to data center and other things related to AI, of course.
Financials, I spoke to how that's been strong. Last week in the industrials, which has kind of been lagging, it was the most net bought sector.
I think outpacing shorts almost at a pace of four to one.
So notional values were like four at four year highs.
And yet positioning industrials is still relatively low.
So from a positioning standpoint, things are positive.
And, you know, you can see it alive and well with some of these themes starting to
pump again, right? Names like the drones, the rare earths, the AI data center names that we
talked about. So these are all signs of a healthy market. So as much as I am concerned that we're
getting up into the higher levels in terms of multiples. As long as companies can keep pushing through
earnings revisions to the positive, and as long as inflation concerns aren't
overly rampant, which they don't appear to be, and as long as employment isn't falling off a
cliff, which it doesn't appear to be doing, I think it's green light go. So that's where we're at. There'll be some attention paid
to the 10-year note auction on Wednesday, more attention than ever paid, of course, to jobless
on Thursday. And even the 30-year bond auction is in focus these days, and consumer sentiment
on Friday, I guess, too. But, you know, for the most part, none of these numbers have changed the
course of this market. I think, you know think people are really just focused on, are we getting beats and raises out of the companies that we're invested in?
And we're seeing that.
We're seeing these names deliver.
So, yeah, that's kind of my take on the macro.
Awesome.
Good stuff.
Money Mark, you already talked a little bit about macro. Is
there anything you wanted to add or should we save that time for stock picking stuff?
Stock picking, my man. Yeah, I agree with you. All right. So let's just go to Catalyst to see
if he has any thoughts on the macro. It'll come back to stocks. Hey guys, Ariel here. Yeah. Thank
you for having me. I haven't been on in a few weeks, so it's nice to be back. One thing I did notice, and I don't know if you guys picked up on it either, is that this is the season for Russell rebalancing.
And one of the reasons why I've seen the IWM tick up is people are playing it a little early.
There is a statistic out there that says from June 23rd for the next six trading days um it's statistically significant
75 of the time since 1988 do you see an increase in in the iwm to the tune of 1.35 percent
which isn't a little number either but obviously worth noting so i think some folks are playing
that early i'm seeing it you know i'm i'm in the small cap, micro cap industry. I do investment banking in
that world and now more so advisory to C-level execs. So I am seeing that pattern starting to
really show itself. Now that the money is kind of flowing, you're seeing a lot of just capital
going in towards the Bitcoin names. I mean, that theme is getting just bigger and bigger. And I
just thought that it'll go and it'll happen quickly and go away. And then all of a sudden it's just
continuing and there's, you know, rewards are going around to these companies that I'm seeing
doing that. I mean, there's multiple companies I could mention. And that's telling me something,
tells me that risk appetite is strong. It's telling me that the markets are just looking at this data and the
day-to-day events that you would think would hurt the markets. If I told you in the beginning of
this year, here's what's going to happen at this date, we're still not resolved on a lot of these
issues with respect to tax. I could just keep going over and over the same things that we all talked about.
And here we are almost knocking on all-time highs. It tells me that we're looking at raising money
right now at the best level this year. That's what I'm seeing. I'm just seeing funds are flowing
into these small companies. And then the last thing I will tell you is private credit is continuing to just do really well, almost to the point where people are getting concerned and there's a bubble here.
using their balance sheet and securities like assets and asset-based type-like loans to the
tune of a 20% return because their margins are able to handle that kind of cost of capital.
So these are little signs that I'm always looking for in my field of work to know how the markets
are going to work into the near future. I can't predict the long term,
obviously, but in the near future with inflation starting to abate, you know, I'm, you know,
very bullish here. That's all I have to say. I love it. Great insights also from industry
insider there, Ariel. Really appreciate it. Hey, Ben, I can add a little bit to what he said
about the Russell 2000 having been one of the of the Russell arms going back over 10 years.
What typically happens coming into the start of any new year is guys like me, what I used to do, doesn't pay enough anymore.
You game who's going to get kicked out of the Russell and who's going to get added to the Russell.
who's going to get kicked out of the Russell and who's going to get added to the Russell.
And the reason you do that is because it creates, whoever gets kicked out of the Russell,
the institutions are forced to sell. Whoever gets into the Russell, the institutions are forced to
buy. Now, as a result, if the ARBs go and front run the institutions before they're forced to
make their moves, then you see the moves take place before the
institutions make their moves. Now, what that comes down to is the names that are going to
get kicked out of the Russell are currently in the Russell. And so they get depressed early in
the year. And by the time you get to this point in the Russell cycle, they've already been
completely sold off. And in many cases,
they have nowhere to go but up, which can help float the Russell a little higher going into the
reconstitution. So just a little bit of knowledge there as far as that goes. And then of course,
the names that are going to get added to the Russell have nothing to do with the Russell yet.
So they've already floated up quite a bit so be careful names that get press leases out there
you're seeing them being added to the russell unless they caught guys like me by surprise
it's unlikely that you're going to make money by buying those stocks ahead of them getting
added into the russell because the arbs have already been all over it for months
awesome good stuff i've been following you for years on that you are the expert on how that
works so appreciate that um let's go to dougie fresh on the macro and then money market comes
right back to you to do some stock picking go ahead dougie fresh all right and just to touch
on that money mark uh robin hood kind of did that this uh week i feel like or last week with the s&p
500 it was supposed to uh they were supposed people were saying it was supposed to be added.
I thought it was way too up there, and it looked like it was pulling back.
I know a lot of people were all over that thing, thinking it was getting added to the S&P 500, and it obviously didn't.
And it's pulled back, and it's back more today.
But anyway, our macro right here, our SPY is up some today.
I've been saying, guys, that I think it's going up to that 610 area.
And I did also say last week, Ben, I said that IWM was set up to run.
And it certainly was.
It looked great.
And I don't know what the heck happened Friday.
I know you guys were talking about.
I was listening.
But, yeah, I just knew that the chart was set up.
And it looked really good.
So that looked nice.
It is running up. The SPY that looked nice it is running up the spy i think is
going up there it looks like it's going to be curling through that macd right here and touching
back into the 70 and the rsi try to get back into that top and we'll see when it hits up there what's
going to happen i do think we're going to have a little pullback happen it just depends on what
that pullback looks like because our 50 is coming up and it'll probably get caught up on that.
And it depends how fast like the 20 can come down and grab it is what I look at on the technical side and generally is what's going to happen to it.
So that's how I can kind of know what's happening in the future.
And, yeah, it's going to hit that resistance up there and we'll have to play it by that.
But I really do feel like it's going. And I kept i've been saying it for two three weeks now it did trick me that one week and pull back but
it uh i never said that i didn't think it was coming up to these all-time highs so
that's what i see in the future of it and um yeah and the iwm did uh pump up there and i'll be
watching that today just to see how it wants to run up. It may have a little pullback, but it does not look bad. It does look pretty bullish to continue its way up.
So that's macro for me. Beautiful. I love when everyone's bullish. All right, let's go back to
money, Mark. Mark, I'm going to set you up here because I do want to, if you don't mind, I don't know if you're planning on speaking about IDN, but I do want to mention IDN is a stock that was first brought to our community by Chris Tuttle on the day they got that big contract.
It was May 20th.
They announced a high seven figures deal over three years.
And at that point, our esteemed colleague, Chris, you know as well, is like, yeah, that's an inflection point catalyst.
It looked pretty significant to me, the size of that contract compared to the market cap and the revenue.
So I'm like, all right, great.
I bought it.
We put it on a newsletter as the inflection point catalyst that occurred with that stock.
But it's been going up ever since.
And I know you've been talking a lot about this.
And I'd love for you to have a discussion.
I want to hear what you want to say.
But I do want to kind of challenge you and have a nice discussion on this in terms of why does this keep going up, Moneymark?
Let's go.
Well, man, you know, I'm not the one to ask why something goes up.
I'm the guy to ask what something is worth.
So I've known
Chris for decades, literally, and we were both knowledgeable of this name before that large
contract came through. So we've been on top of this name for a little while. I mean, look,
I'm going to take a step back and tell you a lot of this comes back to AI. All right. And Chris was actually a developer of AI, like long before many people on this space were even born. He was like back when IBM was working on AI decades ago. So he's brilliant when it comes to technology. course, an internet analyst during the internet bubble for Wall Street firms, 120 or so Wall
Street firms were contracting our services for our research on the internet. So now fast forward
to today, and we're seeing all this AI and internet enablement coming together. And we just had what i would consider a stair step movement in ai right
ai came onto the scene it blew up and then you have these stair steps to take place it seems like
you know something happens it's chat gpt it blows up and then there was actually a lull
in chat gpt volume it was about a year ago this month actually and people like oh cc ai is
not for real and then all of a sudden it starts taking back off again you start to hearing about
audio and now you're seeing video with vo3 and it's a whole new ball game and we haven't even seen the NVIDIA Blackwell cycle really take off in earnest.
But the NVIDIA call made it clear. And then the Dell earnings call made it like, forget about it
clear when they said we sold 1.8 billion in servers this quarter. Next quarter, we're probably
going to sell 4X that amount. And that's it. And within a few days,
people caught on and realized all bets are off. And we saw CoreWeave, NBIS, NVTS, TSSI,
all taking off. And these are the direct beneficiaries of what you're seeing going on
in AI, taking that next step forward, where Dell telling us and the
contacts that I actually have within Dell, I've got a lot of contacts within the industry that
will tell me things that are not illegal, but things you're not going to hear in the public
domain. I share that on Fridays. What really came through was they are sold out well into 2026.
They've, whatever chips NVIDIA gives Dell,
they already have sold.
That's what's happening in the AI space.
And so it's a big backlog.
And anybody that's got AI chips now,
those are selling at a premium
in terms of access to those chips,
utilization, as well as purchasing.
Okay.
So now what does that mean for IDN?
I'm going to answer that question and then name a couple other names for you.
Deep fakes.
Fraud.
Everything is now easier because of AI.
It's a lot easier to scam people and corporations. Amazon just had
a truckload full of $83 million worth of merchandise stolen by a group of people using
fraudulent truck licenses. They're looking for a solution to that problem.
Well, guess what? IDN is the only company that has a complete database that can tell you
with 99.9 plus percent accuracy, whether or not a license is fake or not in the AI era. Okay.
New York state actually took them through the paces, gave them a ton of licenses
within that mix, a thousand were fake. IDN caught every single one of those fakes.
So what you're seeing now is Capital One, $5 million customer and growing. And by the way,
the customers are Capital One, right? The white
label credit cards that you get through like Kohl's. Well, Kohl's is an IDN customer through
Capital One because Capital One said, you got to use this because we don't want to lose money on
fraud on your credit cards. Okay. So the banks, Citi, Chase, Capital One, all using IDN, all expanding their relationships.
The big deal that you saw was actually an expansion of an existing deal with Southern Bank.
And it was Southern Regional Bank.
They were only paying them about $500,000, $600,000 a year.
Within the end of this contract that they just signed with them it's going to be nearly 10x that amount this is a 20 million dollar
company if they can 10x all of their customers over the next three years this
will be a 200 million dollar company just as an example well I'm IDN I'm
seeing the market cap at 127 million not market cap I meant sales oh got it got
it right right right. And of
course, if sales go from 20 million to 200 million, the market cap's not going to be there for long,
right? And by the way, if the stock gets up to about seven bucks a share and stays there through
year end, then they get into the Russell 2000 next year, just as a side note. But in talking
to my contacts regarding IDN, what I've picked up is Yahoo is now using them for email identity verification and now looking to expand that into other regions.
I've heard that they are in talks with Amazon, not surprising, and Netflix.
And by the way, Google and Reddit are in need of a solution.
X, by the way, has a good solution right now that they've cobbled together. It's not a 100% solution that you would get from IDN, but probably close enough that they're not going to want to switch to IDN
tomorrow. But if you've got Google, Reddit, Amazon, Netflix, all on the hook, as well as City,
Chase, Capital One, and all the retailers that they do business with. And on top of that all,
that they do business with.
And on top of that all,
I've also picked up that
in addition to like six new verticals
that they've gotten,
this used to be a company
that was only in retail.
Now it's retail, it's banking,
it's trucking, et cetera.
And now online gaming is a new one.
I've heard that they're likely
to win a deal there before year end
to replace a solution that's already been in place but not as
effective as IDN okay so you've got fraud thanks to AI becoming something
that needs to be combated just like drones being combated by drone shields
DRSHF that I've given you all for a long time,
but also age verification for the adult content on the internet. And you've seen 20 states so far
this year passing age verification laws. And so now you're going to have to see these porn sites
and other sites like that coming in with age verification and going to need to be able to
verify that somebody is actually over the age of 18. And you're not going to be able to fake them
out with a fake license or scanning a fake license or putting a picture on a fake scan
because IDN catches all that stuff. Mark, that's all very interesting stuff, but what I want to focus in on are the contracts and the potential for new contracts.
You mentioned Yahoo, Amazon Netflix.
They're using Yahoo now.
Is that like a pilot program or is that something that's been announced as like a full product?
No, Yahoo's been using them for email identity verification.
But what's news is that they're now looking to expand
that to other regions, potentially worldwide. And the reason is like I told you, as AI comes up,
you're seeing more fraud over email. I'm sure people on this chat have seen more and more
attempts at fraudulent action in their lives. Okay. Now, if they get a contract, just using
the recent contract they had as a guide in terms of how big these contracts can be, it sounds like if Yahoo expands or they get a deal with Amazon or Netflix, not only could it be a very large contract, but also the sentiment, that's my territory, the sentiment that comes attached with the validation from a big cap tech company, to me, obviously, that's a very simple calculation, obviously would cause a big rapid re-reading in the multiple they're getting.
So this is very material stuff you're mentioning here.
So the question for me is, what's your source here?
How confident are you?
Where are you getting this information that Yahoo wants to expand and they're in talks with Amazon and Netflix?
Well, of course, my contacts are always confidential. That's been my hallmark.
The reason I was able to get contracts with companies that are owned by Jim Cramer and George Soros, et cetera, is because I have the information that they want.
I get the information they want because I've got contacts that have information that I have as well. So I exchange information,
I network people together, and they know that I'm going to protect them. So just know that I've been
doing this for 30 years and you're not going to find out where I get my information from,
whether it's innocuous or near the gray areas, right? But suffice it to say, if I open
my mouth about something, I'm going to tell you the difference between this is a fact, this is
something I've heard from a good contact, or this is something that I'm hypothesizing. Now, what
you're saying, what you picked up on about the validation from large players, okay? This is something that I preempt. I worked for a company that, you know, IDC, AMR, competitor of Gartner Group, actually Gartner Group acquired AMR, the last company I worked for.
And they are known as the preeminent players in terms of validating technology.
So when an Amazon wants to solve a problem, they'll go to Gartner Group and say,
we have this problem. Who can solve it for us? Okay. And they'll narrow that list down and say,
this is what you need. And what I'm picking up on IDN and any other name that I put out into the
public domain, before I put it out there, I make sure that there's validation idn is the only solution that gives you that 100
near 100 accuracy with license verification so as a result i already know before i my contacts give
me any information that this product is validated and is going to win deals with large banks and
large technology companies and anybody else that is encountering a problem.
Okay, so when I saw Amazon lose an $83 million truck, I'm like, IDN doesn't have any $83
million customers.
This is going to be easy for IDN to solve for Amazon, so it won't surprise me to see
them do business together.
And in a conference, I heard IDN talking about truck licenses being an
issue. And then I hear from my contact that Amazon is talking to IDN. It's just putting the pieces
together. It's just common sense in the world of business. Okay, great. So what's your
expectation or what do you kind of, I don't know if you can model this or just even without modeling it,
but what's your expectation in terms of timeline and size of these contracts and what that could
mean for the stock price if one of these contracts come through? Yeah. So the large contracts are
more difficult to forecast, right? What you really want to do is take a look at what's the sales
force look like? What are their quotas? What's their history of hitting quotas? So you get a feel for what the internal mechanisms are in terms of adding salespeople to address demand that they're seeing to the mix. And from what I'm gathering, we can count on easily, easily in the
20s in terms of percentage revenue growth for several years to come. And that's without the
large deals. Okay. So if they get one large deal per year on top of that, you're talking something
closer to 40% growth, 40% growth doubles your revenue over a couple of years.
In a couple of years, that gets you to something closer to 45 million, which if you model it
out, and that's the other part of my specialty is after I get the expert validation, after
I get the contacts, I model it all out and figure out what drops to the bottom line.
You're looking at a dollar of EPS a couple of years down the road.
So 12 months from now, Wall Street might be looking at a company that's in the Russell 2000,
which means more institutions are going to look at it. They're going to model it out and they say,
holy crap, next year, these guys might make a buck. If you're looking at a company that has
a monopoly on this aspect of a space, growing at 40% per year, putting up a buck of recurring revenue.
If all this falls into place, you're talking about a stock that's going to be trading for
over $30 per share. Now, I'm not saying it's going to 30. I'm saying if all this stuff works,
that's where it belongs. You look at it compared to the current stock price,
the risk reward is tremendous.
What are the chances that everything falls apart? If they just put up 20 percent growth, the stock is barely valued.
30 percent growth, undervalued, 40 percent growth, severely undervalued.
And that's what I do. Right. The whole goal is to figure out where your highest potential reward is for the least possible risk.
where your highest potential reward is for the least possible risk.
All right.
Got it, Mark.
I spent a lot of time on that.
So just to sum it up, in terms of your thoughts on Yahoo, Amazon, Netflix, et cetera, the
way you're looking at it is that you understand the product and the product market fit and
it's validated.
And you're just saying, hey, there's a likelihood they're going to win some of these contracts
over time.
It's not as if, hey, I think they're going to win this huge contract within the next few weeks,
and the stock's going to double or triple. You better get it now. It's more the former than the latter, right?
Right, right. Yeah, that would tread into insider information.
So basically what I was doing for these giant hedge funds is getting them as close as you could get to insider information without using
insider information. You use, you know, connecting the dots. So look, when somebody runs off
with your truck full of $83 million of merchandise, and you can't change your processes,
this is how Amazon gets their product across. They use truck drivers, right? You've got to be
able to validate those truck drivers.
And this is the easiest, quickest path to do it.
So what that does is, you know, in my matrix of how long is it going to take to close a deal, you look at the sense of urgency. And the sense of urgency right now because of the fraud taking place, thanks to deep fakes, et cetera, is high.
All right. Got it. Thank you so much, Mark.
Mind if we come back to you with the other
picks later?
Sure thing.
All right. Let's go to Godfather. Haven't spoken to you in some time. Of course, I see
you in the Discord, and we text on there, but happy to have this discussion with you
now. So tell me, what do you want to talk about? You got a top pick for today?
Yeah, I got a couple of names that I'm going to talk about, and I'll go through the information quickly.
But I just want to point out a third name that I've spoken about numerous times on the show that happens to be reporting in an otherwise light week without, you know, many names reporting at all, frankly.
And that's MIND. The ticker is MIND. It's MIND Technology, M-I-N-D. They report after the close on Tuesday. Again, this is, you know, a best-in, Schlumberger, all the big oil and gas contractors,
as well as other folks that are looking to map the undersea floor for placement of offshore wind towers, you know, that sort of thing.
I will remind you that in addition to reporting record results in their most recent quarter and talking about increased visibility and new orders
year to date and, you know, an overall strong market conditions. They went out of their way
to say, hey, we're a small company. In fact, I'm looking at the press release right now.
And what they said is, quote unquote, however, we are a small company which presents certain
challenges. We believe that to maximize stockholder value, mine needs additional scale. We have identified organic growth opportunities that could help grow the company. However, there are additional ways, acquiring assets or businesses or combining with other organizations or even an outright sale of the company. And they hired an advisor to do
that. I'm not saying they're going to announce something this quarter. But what I'm saying is
they are firing on all cylinders when it comes to their fundamentals. And on top of that,
management is basically, you know, throwing it out there to say, hey, we're not happy about
our stock trading where it is. And, you know, something's going to give. And I believe it.
My fundamental view on this stock is that
it's worth $10 to $11 just based on what they have today. I think a strategic acquirer would
probably pay that or be happy to get it for that number. It's come off a little bit from
when they last reported. I think we're closing in on where are we today? Yeah, close to $7. But like I said, there's an easy number,
an easy $3 or more in this name that either comes through, you know, the market taking it there or
a strategic player taking it there. Yeah, when everybody uses this technology from the top down,
you know, they've got the best. And for that reason, I just don't see it being a standalone
company much longer. The two companies that I wanted to talk about today. I just want to chime
in as well. And Mind is a company I've independently researched as well. And I've been all over that.
I have my full-throated endorsement on that. We fully agree, fully aligned on the opportunity
and the price targets. It also matches kind of the technical targets I'm looking for as well,
around that $10, $11 range.
So, yeah, and I will remind everyone, three months ago,
or was it two months ago, you had also given us a heads up on mine,
and it slipped my mind.
And I went and I looked at the last, um, the last conference called transcript and I loved
it and made a prediction that we'd beat again. And we did, and it was up in our district was a big
winner for the community when we played mind that that week, uh, held it through earnings. So, um,
let's see, let's see what we get tomorrow. All right, go on. You just, you just don't see this
type of technology in this small of a company with this dominant market position.
And as they keep rolling out their installed base, it increases the recurring revenue portion
because this stuff, they drag it through the ocean.
There's a ton of maintenance, like 40% of their revenue is coming from just the maintenance
side of things.
And that just increases all the time.
But I'm not here to talk about Mind. That is coming on Tuesday. I do expect it to be a strong
report. And I do expect, I think in six months, this name is gone, frankly, unless, you know,
unless they decide to use some of their cash and their strong balance sheet to make their
to make their own acquisition and get bigger. But one way or another, value goes higher, in my
own acquisition and get bigger. But one way or another, value goes higher, in my opinion.
opinion. So two names I wanted to talk about today. Another one that's topical, it's a name
I've talked about, but not for a long time on the show. It's MBOT, M-B-O-T, Microbot Medical. And I
mentioned it today because it's down 15% because they talked about their FDA approval timeline
going from Q2 to Q3. Now, previously,
their window for approval, and just to back up here, by the way, this is a company that makes
an endovascular robotic navigation system. They filed for FDA approval. This is 510K or device
approval. They filed in December of 2024. These approvals typically take about four to six months to come through.
They had previously got it to the market Q2.
Obviously, there's a month left in Q2.
They're now saying it's going to come out in Q3.
And by the way, their timeline for rolling out this product commercially has always been Q3.
And despite saying that they now expect approval to come in Q3, they still expect their commercial rollout to be on time, which suggests to me that they're expecting approval early in Q3.
So this is losing the forest for the trees here, in my opinion.
Let me just back up and help you understand how big an opportunity this is.
and help you understand how big an opportunity this is. This is a product that's used in
catheter placement. It's used in stent placement. It's used for arterial blockages. It's used for
interventional oncology. It's used for targeted drug delivery. It's used for tumor embolation.
It's used for targeted radiation delivery. So, you know, you're talking
cancer, you're talking cardiovascular, you're talking about $40 billion of annual spend.
Six million endovascular procedures are done in the U.S. alone, 15 million worldwide. There's 15,000
million worldwide. There's 15,000 doctors performing these type of procedures. There is
no commercially available robotic system for endovascular procedures. I know that's hard to
believe, but there isn't. This company has passed all of their trials with flying colors, 100%
success in navigation, no adverse effects,
92% reduction in exposure to radiation because surgeons can basically do this remotely. It's
like a joystick. It looks a lot like your Nintendo controller. Here's what you look for
in a small company like this. Are they well-financed? The answer is yes. If you fully dilute the cash,
it's almost 100 million. It's 93.3 million fully diluted cash. There are some warrants
that get you there in the capital structure, but even right now, they're sitting on 30 million in
cash. No debt. Has management done this before? Well, the CEO is ex-J&J. The CTO
founded a company that was acquired by Medtronic. The CMO is ex-Boston Scientific.
They just hired a new VP of sales. He's ex-Inari, which was bought by Stryker.
Their directors, two of them have key experience. One was actually the head of M&A and strategic partnerships for J&J. The other had a company called Corindus Vascular Robotics that was sold to Siemens. Intuitive Surgical, one of those names. So go back to that, what I was talking about in terms
of market size here. If they get just 5% penetration and 25% of the procedural dollars
associated with that 5% of penetration of the TAM I mentioned, you're talking about a company that
does a half a billion dollars a year in sales. Let's take all those numbers and cut that in half. Again, let's say it's $2.50.
And you put a one times revenue, one times price to sales multiple on this thing.
That's $3.60 a share. Then you add the $1.35 a share in cash, and you're pretty close to $5
already. By the way, Intuitive Surgical trades at 23 times price to sales.
This company will not trade at one time's price to sales. There's only one analyst that cover this
company, and they have a $9 target price on this. So the fact that it's down 15% today on a couple
of months, a delay in FDA approval is crazy. I only seen my long-term account added more today.
Again, I think in six months, this company is gone at a high premium to one of these large
companies. That's company one I wanted to cover. Company two, continuing to move quickly through
all these, is a company that I've looked at since April of 2024. I got to thank my colleague Ben for putting it back on my radar screen
when he was looking at Aegeo and CXW
and these publicly traded prison companies.
This is a company out of Israel that focuses on ankle bracelets
and remote monitoring.
When I looked at this back in April, I had a couple of issues with it.
Number one, they're an Israeli company. They were bidding for some Israeli business, but they had
not yet won a key contract. And number two, they didn't really have any cash. And what's happened
between April of 2024 and today is not only did they win that contract in Israel, but they
dislodged a 20-year incumbent. And now they have all of the monitoring for the entire country.
They've also raised $16 million. They paid down debt.
There's only $700,000 in warrants left in the cap structure at $1350,000.
If those get exercised, they end up in a net cash position of $2 million.
These guys have 70 multi-year government programs that
they've won since 2018. The TAM here is $2.5 billion a year. Um, it's about 90% less per day
to monitor, um, somebody that's on probation or house house arrest or, you know, that's being
monitored for domestic violence or whatever. They even have an alcohol monitoring thing. I don't
even know how that works, but it's like $10 to $35 a day versus $100 to $140 a day for incarceration.
The company has inflected not only the EBITDA positive, but they're now operating cash flow positive.
They're displacing incumbents left and right.
They've got a 65% win rate.
This is a company that's started building their market share in the EU and recently moved to the US.
In the EU, every single country has their own decentralized monitoring system.
They've got to convert to the local language, abide by the local laws and regulations, all the rest of it.
The margins to selling into the US are much higher because it's a centralized cloud-based monitoring setup, inventory management, 24-7 support. It's all in English. So they're winning
contracts left, right, and center. They're now in eight. Well, when they reported their quarter,
which was a couple of weeks ago, they were in eight states. Since then, they've added
another two more. They're now in 10. They announced five new
partnerships since the beginning of the year. And again, these are like five to nine year type
contracts. So it's a recurring revenue thing. All of their interest that they pay on their debt is
basically offset by the cash. It's the interest they're earning on the cash that's on their debt is basically offset by the cash that's the interest they're earning on the cash that's on their balance sheet. So the most recent quarter saw operating income increase by a factor
of two. They did a rollback back in August of 2024. So now there's only 3.7 million shares
in the float. And going to the crux of this whole story is valuation.
Sorry, I don't think you mentioned the ticker symbol yet.
Oh, it's Supercom, S-P-C-B, S-P-C-B, Supercom.
So, look, right now, this company is trading at 5.7 times EV EBITDA, 1.7 times enterprise value to sales.
There are two analysts that cover it. They both
have $18 targets on this. I'm conservatively saying $16.50. Even at that level, it works out
to 2.3 times on an EV to sales basis and only eight times on an EBITDA basis. So it's crazy
cheap. It should be trading at a premium, frankly, to
the bricks and mortar publicly traded prisons. So yeah, I like this name a lot. And they've
wholesale, I got to hand it to management. They've wholesale revamped their balance sheet.
management. They've also revamped their balance sheet. They've proven themselves in their
technology by winning all of these contracts. The pace, it seems every couple of weeks,
they announce another. They did mention that they are in talks with what I believe to be
several of the value-added resellers in the U.S., so effectively vertically integrating their sales structure in the U.S.
because it's a higher margin for every sale they do in the U.S.,
and it's just the biggest market in the world.
So, yeah, that's a name that should be on everybody's radar screen.
And let me add to this because this became one of my largest positions very quickly.
And I made it a four-pillar pick.
A four-pillar pick in our story trading community is the stocks that I have the highest conviction on where basically everything's aligned.
Sentiment, catalysts, fundamentals, and technicals.
And the reason one of the – you know, I waste sentiment maybe bigger than you.
But, you know, GEO was a big winner for me earlier this year.
We completely nailed it.
And there's an immigration enforcement component here.
One of the things that GEO did is electronic bracelet monitoring.
And it sounds like that's something that they're doing for their clients as well.
So, you know, the way I found this company, I was doing some research on GEO and on social media.
Someone mentioned that SPCB, Supercom, is taking business away from GEO.
So that's the sentiment angle that makes me really, really like this
because obviously immigration enforcement is a big thing.
And when it compares SPCB and GEO, I did have some GEO long-term.
I immediately dumped that and made this my long-term position.
And let me just add a little bit of color here.
You're talking about, you know, all these contracts are winning just in the month of May.
I mean, this is incredible.
May 8th, they won a Canadian electronic monitoring contract.
May 20th, Virginia
they win. May 27th,
Nebraska. June 4th,
North Carolina. June
6th,
it's like a reseller, I guess,
for states including Florida
and Mississippi. I mean, they're, like you said,
contracts every other day
over here. And Dougie Fresh,
take note.
Actually, your listener, I don't know if you're a speaker in here, but I just invited you again.
Dougie Fresh, take note of the weekly chart in SPCB.
We'll come to you in a minute. But this is one of my topics right now.
Look, I'll just add two other things. Number one, there's 15 national programs now that they've won with countries around the globe. Yeah, to your point, there are 20 of these contracts that they won in
the US year to date. I did some digging on the technology. And the reason that they're winning
all of these contracts and displacing the incumbents is that they spent $40 million into the tech stack here.
And they've integrated things like GNSS, which is GPS that allows them to track, you know, in underground car garages, in the middle of noisy cities, in deep inside buildings.
They've got a battery life that's in excess of a year versus some of their competitors that these things need charging every two days.
And they're adding AI analytics to improve functionality as well.
So I think the proof is in the pudding in terms of governments adopting their technology.
Their R&D spend is going down.
At the same time, their sales are going up.
And that's a recipe for expanding operating margin.
And you saw that, like I said, in the most recent quarter, up by 2x.
They had a 10-year record, not just on operating income,
but on gross margin as well,
which tells you that their cost of goods sold is going down.
So yeah, it ticks all the boxes. And it's 10% short interest for some reason. Okay, great. Let me go back to Moneymark
and we'll come back to you first time and Dougie, of course. Go ahead, Moneymark.
Yeah, I got to head out at the top of the hour. So I'm going to keep this quick
news this week. You know, what's really interesting is that where I'm really finding
value is among Canadian names. Okay, so I'm going to give you a triumvirate of Canadian names,
two AI, and then the other with the gold trend. So you've got Intermap, IT, MSF,
and just heard a podcast this week.
They were already getting a lot of traction.
There's a lot of countries around the world that are tapping into their 3D database of
topographical information around the world.
Indonesia, where you have global warming and islands and flooding and insurance companies
want to get a hold of this
data and put it into AI databases. So their business has really been inflecting of late.
But now I'm hearing about the 3D Earth. And these are some of the greatest minds in AI. If you
listen to some of the top podcasts out there, Andreessen Horowitz puts one out, and they were talking about specifically how they want a map, a 3D put in the level of investment that they have over the
last 15 years. This company struggled because they were getting little government contracts
for $4 million, this and that, but never really inflecting in terms of people wanting that volume
of data. And I think the reason is that you had so much data that you couldn't process it very easily.
And two, you couldn't do as much with it as you can now because we have AI.
So you're seeing that inflection point.
It's going to be really interesting to see what happens now with the 3D Earth.
I'm hearing about maybe SpaceX looking to do business with them.
Hypothesis, not from an exact contact.
That is actually a rumor out in the industry. So that's ITMSF. And then more actual AI utilization is Gatekeeper, GK, PRF.
Now you've had monitoring on buses, trains, and the like for a long time, and that sounds boring, but not when you add AI to it.
And what that now does is enables the cameras on buses and trains to become like police officers of sorts because they are watching everything that's going on, but keeping an eye open, right?
watching everything that's going on, but keeping an eye open, right? The AI can notice if something
seems like a fight is breaking out or a mugging is starting to happen or anything else that's
not supposed to be happening on a bus or a train, not to mention legal issues like somebody claiming
to have slipped on the bus and suing the city for a million dollars. This is actually what happens. The city of Philadelphia uses GKPRF and saves literally $40 million per year in litigation costs because the AI is able to pick up what's going on in the bus and say, no, that's not what happened. And here's exactly the proof of this, you know, what's going on with that.
going on with that. And then it goes outside of the buses and the trolleys and monitors the traffic
in this real world. And I know it sounds like big brother, but I'm not a politician to legislate
what's allowed or what's not allowed. And what you're seeing now is cities signing up for their
services because you can catch infractions without traffic cops, right? Somebody blowing a red light, somebody going too fast,
whatever it might be. These cameras are now AI enabled for this. So not surprisingly,
and let's get to the punchline, GKPRF has signed eight deals in six weeks.
I've known this company for a long time. I've never seen them sign this many
deals in two quarters, much less six weeks. So they're on fire. I've been working on this with
one of my colleagues. This stock belongs much closer to $1.50 and then go from there. So those
are the two on the AI side. And then on the gold side, you've got GEODF. They, as expected, announced a buyback program that they actually wish to
utilize. The interesting wrinkle, though, is that their customers are asking for so much
expansion of their services that they have a dilemma. They have to choose whether to buy back stock, right? And the
U.S. version, the G-E-O-D-F is trading for $2.67. They're on a 48 cent EPS run rate. So this stock
is trading at just over five times their earnings run rate, EPS run rate, not sales, right?
EPS run rate, not sales, right? Buy back stock or buy more rigs to service the customers that are
knocking down their door saying, we want to give you more business. Please let us give you more
business because we want more gold out of the ground. So we're going to get one of two things.
Either they're going to buy back shares and the stock's going to go up, or they're going to give
a stronger earnings and the stock's going to go up. That's my impression given the
valuation that we're dealing with, a 48 cent run rate. The 12 cents they just put up in Q1,
they're going to put up a bigger quarter in Q2. They've already added more drills. They're only
adding more drills because the customers want more. Their utilization rate is at all time highs
and they need to buy more drills to keep
the customers happy and updated with the amount of gold that they want to pull out of the ground.
So that's the story there. It seems like a win-win. If things slow down, they'll start buying back
stock. As long as things are hot and getting hotter, they're going to buy more drills,
and we're going to get greater EPS. I like good stuff. Thank you so much, MoneyMark.
GKPRF is a name blast from the past.
I remember that from years ago.
It looks like it's finally inflecting.
I've got to look back into that.
Yeah, it's a bit of a cheat code, right?
Because when the stock is overbought and they put up a big quarter,
you want to sell it off because they're bound to put up a bad quarter sometime soon, one or two quarters down the road.
It's a lumpy business.
But the opposite is true.
So when the stock is down as it has been recently and they put up a bad quarter, that's when you want to pile into the stock because they're bound to have a good quarter soon.
Boom.
It looks like they're going to have multiple major quarters coming up with all the deals they've just signed.
All right. Sounds great. Thank you so much, Mark.
Catalyst Capital, you got something for us?
I don't know if it's still on the stage.
I think Ariel had to drop.
Ariel had to drop. All right. So who do we get to?
I think Godfather might have another one, but let me go to Dougie Fresh and then we'll come back to Godfather.
Dougie Fresh would love your take on—oh, you know what?
Before I give it to you, there's another stuff I want you to look at, Dougie.
Sure.
So SPRO, this is one of my largest positions in my trade account, Psyro Therapeutics.
Okay, very interesting here.
Psyro Therapeutics, they were doing a phase three three trial which they discontinued early due to efficacy.
And their partner is GlaxoSmithKline on this.
So basically they're like, hey, this is effective and it's for complicated UTIs by the way,
carbapenem, which is usually IV but it's oral. There's no oral formulations of carbapenem for composite ETIs.
People have to go and get IVs in the hospital right now.
Anyway, effective phase three.
Galatso-SmithKline comes out and says we're filing an NDA.
They get all these milestone payments from Galatso-SmithKline.
And now Spiro, Therapeutics, the CRO.
They have no more expenses, basically.
Like, everything's handed off to GSK.
And they have something like close to $2.50 in cash after the milestones that are coming
through them through the NDA.
So you're basically almost getting all of their future milestones, which are still substantial,
a few hundred
million plus royalties, almost for free.
This is crazy.
I've been in this stock since the news came out, and I'm looking for a rapid re-rating
still to about $3.50.
Dougie Fresh, take a look at that, and I'd love your take on Spyro, SPRO, and SPCB, and
whatever else you got on your table.
You got it.
So SPRO, that is looking pretty good.
It is hitting that resistance up there at that 281.
It's at 273.
It did get over it today.
It got to, like, what?
It hit that 281.
So, yeah, it's hitting that resistance, and it's in the top,
but it does look like it wants to crawl.
Take a look at the weekly chart on both of these, SPRO and SPCB weekly charts.
The SPRO one's definitely up there.
It does look like you'll probably get another boost up there a little bit more into the top.
Like I say, they like to run when they're up, especially when they look like that one.
And the SPCB, that weekly chart, looks amazing, to be honest.
It almost looks like it wants to pull back just a hair just to set up, like stair its way up so that's what spcb looks like on the weekly even the dally looks like maybe
a tiny bit of pullback and it could be that pullback today that we're seeing that 66 cent
pullback today but yeah it doesn't look bad it does look like it's going to try to bounce back
up in the top it's holding itself up there pretty well. So I have to say super calm I'll be keeping an eye on that one just to see what that pullback is and yeah
That's pro that one's pretty wild running up there. You're right because on what the
May 27th, it was way down here like 66 cents and now it's a 273
So it did it just ran up and it doesn't look bad
Let's try to stay up there for a little longer. Yeah, I're going to get a little more stretch out of that one right there.
And the thing with SCRO, sorry, even though it's come up so much,
the risk reward is really good because the support level is so strong
with their cash position now.
Like $250, you're seeing it technically.
So there's almost no downside to this stock and there's also a chance that
glaxosmithkline will buy them out anytime for probably north of three dollars and fifty cents
so it's it's a really really good risk reward here yeah and honestly like i said that pullback
is probably going to be slight just so it can get a little more uh a little more space so it can really catch
some more momentum to get through because you can see it's been pushing that resistance there it's
been busting through a little bit spiking up it just hasn't kept the momentum to keep it going
so if it draws back just a tiny bit it can almost like that bow and arrow you pull that bow that
arrow back and then it can make that bow go even further kind of what i look at right here so
if you do get a slight pull back on it probably a great opportunity like i've been saying but it is
in the top and it looks like it wants to stay in there and these things have been running up in
that 70 rsi and up there they've been cruising a lot of stocks have and that's where you really
see your uh gains um big time gains are running up there.
So, yeah, not bad.
I'll keep an eye on this.
It is curling up.
I mean, it doesn't look bad for some more momentum there.
So, yeah, I can't disagree with that one.
And then that plug, PLUG, that's been plugging along.
I've been mentioning that thing.
And that thing is up like 23% today.
It's been going up almost every day. I mentioned RXR rx last week that thing's bumped up all week this week and that one a little bit of pullback but
it ran up this morning some and that got up to like 584 and i know we were looking at it down
here probably at like four in the 4 30s i think and then another one i had mentioned this before
had some pullback and now it's really
setting up in them uh uranium ones so keep an eye on that DNN Denson Mines or something that one is
setting up to run as well and LAES is curling up and this one looks like Ben check this out for
tomorrow this one looks like it could be a nice little popper keeping that momentum it's curled
up really not nice on uh laes and that's a semiconductor one i believe yeah it's semiconductor
in switzerland so just look at that one it does look like it has some good momentum going into
tomorrow and that's what i see oh if you guys want an otc mark gave out some good ones this one uh
one of my listeners on my show,
Louis Rodriguez, I'll give him credit where credit's due,
but NTPLF, guys, check it out.
We talked about it.
I don't even know what I said,
but he gave us a bunch of info on it.
Check this thing out, guys. This thing ran up the other day.
It's called MetaPlanet, NTPLF,
and it's going to get cruising some more you can see it i think that's
one you guys will like as well and again i don't know what they do i completely forget but it does
look really good it's an otc or so keep an eye on that by the way with plug there was an insider buy
i was i learned it in our vehicle chat room like 30 minutes ago, maybe during the show, at $1.00 and $4.05.
Up like 20% now, $1.20.
I saw someone in our chat room went about call options on that alert.
I should have bought that alert too, but it can't be everywhere.
Yeah, no, I feel you, Ben.
I'm going to try to zero in on the best calls again um like really
really soon but yeah there's been so many of them that it's almost like distracting trying to jump
around it's you almost have to really focus because this plug has been looking good i had it
and i actually sold it off most of it and uh i just had some shares of it because it was looking
good and then i sold it because i just kind of play them fast and there you go
It was popping up there today, but it's all good. I don't worry about that. I still make profits on them
And uh, yeah, now it's still been looking good and you're probably going to keep momentum on it. So keep an eye on that
So yeah that and speaking of the discord i'm telling you there are some banger calls in that thing every single day, guys.
I mean, if you're not paying attention to our Discord, there's something wrong because that thing is insane.
I'm telling you, we crush it over there.
I gave out that CRCL on there.
That thing went wild circle.
You guys see this thing?
It's up a little bit today.
It's shot way up.
But, yeah, we gave that out, and that was a new one.
I mean, there's just so many great calls on there guys and i say it's uh very valuable for you guys because
um you know you get bent i'm telling you the morning note he puts out it's amazing godfather
great due diligence and i've been throwing in a lot of poppers and i'm gonna really start putting
the entries and exits and really trading with everybody. So if you want to check that out, check it out.
And obviously check out everybody that's speaking on here.
Money Mark, he gives a lot of great advice too.
And I see his videos on Friday.
They're really cool to watch.
So yeah, some great stuff going on on this show.
I love it.
And thank you guys.
And good to see you back, Ben.
Hope you had a good vacation.
Beautiful endorsements there.
I love it.
Godfather, was there one more you wanted to talk about
or did we get through your picks?
We got through my picks,
but I will mention a couple of things.
Just piggybacking on Dougie there.
L-A-E-S, if you're curious about that one
and if you are going to trade it,
they do report before the market opens
on the 17th
of june so uh not tomorrow but a week tomorrow um i wanted to just uh put a plug in we are going
to be doing this teaser teaser so yeah just a little teaser for a space we're going to do um
as soon as i can find the time to finish my work on this. But AI Data Center has been all the rage.
Obviously, you guys have watched CoreWeave, CRWV, more than triple since its IPO.
And then, you know, they've been signing deals left, right and center.
power, secure power contracts to basically, and hosted GPUs to basically defease all this,
what seems to be limitless demand for AI, both inferences as well as learning. So
CoreWeave, of course, their end clients are people like OpenAI and all the rest of it.
are people like OpenAI and all the rest of it.
These guys have 1.6 gigawatts of contracted power currently.
37% of that comes from Core Scientific on a deal they did over a year ago.
And this was really the first deal done by a big data center.
We call them a NeoCloud.
They're not hyperscaler.
They're not part of Amazon.
They're not Microsoft. They're independent. But these guys are also using capacity because all of their own data centers are running full out. So they're going to the nebiuses of the world and the core weaves of the world and licensing this compute capacity.
this compute capacity. At the end of the day, it comes down to who's got the data center
infrastructure and who's got the negotiated power contracts. Well, they did this deal with
Core Scientific for 590 megawatts, again, of the 1.6 gigawatts that they have. And they paid for
all the CapEx up front. The deal that you saw them sign with APLD, which saw that stock go up several
hundred percent last week, APLD has to pay all the CapEx. So at the end of the day, the name that
really drops out of this whole sector as being misunderstood by the market is Core Scientific,
C-O-R-Z. I mean, rough numbers are as follows.
These are 12-year contracts subject to renewal with CoreWeave.
And again, you know, the end customer here is OpenAI and others.
And this is, you know, annual recurring revenue.
And it's negotiated.
Like, this is like having, you know, a lease with a blue chip company.
This is an annual $850 million a year run rate business.
And the margin, and when I say margin, I mean the profit margin, not the gross margin,
the profit margin on this business is 75 to 80%. So you can do that math. This is going to be fully, this 590 megawatts will be fully built out by the end of
the first quarter of 2027. So forget about the fact that this is being delivered in increments
and 250 megawatts of that will be delivered this year. If you assume it's all a donut and then add
another year and assume we're getting this run rate as of Q1, 2028, put in the weighted average cost of capital
for this thing, discounted back, divided by the number of shares outstanding.
And you've got a cash flow stream that's worth $40 a share. That's the way the math works.
I will look at this six ways to Sunday, including conventional metrics like EBITDA and enterprise value to sales and even P multiples and all the rest of it.
If you compare this with the likes of the DLRs, the Digital Realties, Equinix, EQIX, these are the big legacy data centers.
They're REITs, of course, and they're structured as such so they get different valuations.
But it's all about FFO.
It's all about annual recurring cash flow.
There's just simply very few businesses that come anywhere close to this.
And if you add in the fact that Co cores is essentially capital light, they're delivering
these cutting edge data center platforms to the likes of core weave, and they're not spending
any out of pocket capital. I mean, the cash is just going to build on their balance sheet like,
like crazy. All of the power costs are pass throughs directly to core weave.
It's an incredible business model.
So stay tuned.
Hey, Em, are you there?
Yes, I am here.
All right.
I'm muted there.
We kept you able to watch the Apple event there.
Yeah, I appreciate it.
I was kind of one ear ear here one ear over here
you're not going to miss anything in this Apple event
just in case anybody wasn't watching
I mean
it's nothing
I put out a funny tweet a while ago
just joking around
Apple introduces what Samsung and Huawei had seven years ago
that's basically all we've seen so far
just to give a further little
plug on what the Godfather was talking about, he was really early.
While we are all in our community, we were early on NBIS.
But then he did a lot of fundamental work on it, and our whole community had a lot of conviction on NBIS.
And you see what's happening now, right?
So CoreWeave exploded.
That money flowed into NBIS now.
It flowed into apld so um i think you know
i was talking about 60 on nbis before the end of the year back when the stock was trading at 18
right so and now i'm talking about core weave or core scientific pardon me cO-R-Z, which we were on also early in that last run to 19.
And nothing's changed. In fact, what's changed is that you're getting closer to that cash flow
stream. So it makes no sense to be down year to date. But anyway, this is a, it's a $40 stock.
And, you know, it makes sense, frankly, for CoreWeave to buy them. Even when they were a
private company, they tried to buy them because they're so integral to CoreWeave's business plan.
Now they've done an IPO.
Now they're sporting a $70 billion enterprise value.
And over a third of their business is from Core's.
I mean, you can just look at that.
$70 billion for CoreWeave, $4.2 billion for Core Scientific.
Yeah.
It just doesn't equate.
I mean, they could throw all sorts of paper at Core Scientific, and it would still be massively accretive for them.
So, AMP, CoreZ, C-O-R-Z, we're basically going to be proposing to you this is the next place all that money is going to flow, right?
The CoreWeave money, the AP weave money the apld money the nbis money um maybe we can do a joint space on this and get some
eyeballs on it um but plants are this is the this is the one i literally thought was a pharmaceutical
until you guys started talking about it and actually looked into it yeah so like i i i it
was just like because i didn't know anything about it it's all the name and i was like and i like pass it off and then you guys kept talking about it actually dove into it a
little bit more and started following some of y'all's research and posts on it i was like oh
wait a second there is something here so we'll see story training and we'll plant the flag there
and uh you know we should can i ask you about root uh ben and anyone else up here um last week i know
just across the market a lot of different spaces I'm a part of,
people were talking about, you know, Lemonade.
People were talking about these different insurance companies.
And Root's one of the ones that you guys have been all over since very early.
What's going on with Root right now?
I mean, look, in my long-term account, that was one of my two picks of the year.
Oh, my God, I'm going to crush that competition.
Root and ASPS.
We see ASPS blowing up right now.
Might as well give me the trophy now.
The two picks of the year.
So I'm keeping it.
I mean, I've shaved some off on Root,
but this thing is just so cheap.
I mean, it's as simple as that,
and they keep on executing.
I don't know if you want to add anything,
Godfather, on that.
Yeah, I mean, I was obviously talking about
that name on the space for a while, but people were like, oh, AI this, on that. Yeah. I mean, I was obviously talking about that name on the space for a while,
but, you know, people were like, oh, AI this, AI that, you know, it's great, but where are the
real world examples? Well, look no further than Root. You know, they've got the data capture in
the vehicles through your phone. They know, you know, where you're driving, how fast you're
driving, all the rest of this. And if you agree to that disclosure,
you can get discounted insurance as a result of it. And surprise, surprise, they're leading the
market in terms of what they call the net combined ratio, which is, without getting into the weeds of
it, essentially, what are the loss rates relative to the premiums? And so now they've built themselves into the biggest single provider of
automobile insurance on the planet with industry leading loss ratios. And of course, profitability
that goes along with this. Nobody can compete. So it's massively disruptive. You know, there's
accelerometers, there's GPS, there's gyroscopes, all this stuff is embedded in your iPhone, and they found a way to unlock all of this technology
to make something that people really don't differentiate.
Like, who do you care?
You don't care where your automobile insurance card comes from.
You just want the cheapest policy possible.
So if you're in that boat, you know,
you're going to have a hard time competing with Root. So for them, it's just been
about the way they govern their marketing spend relative to, you know, their profitability. And
they've been sort of running right at that fine line because it's, you know, when you're disruptive
like this, it's about market share capture. And so they've been running profitably. But if they
were to cut off that marketing spend,
I mean, this would be a massive, massive cash cow,
but they're still out there in the market taking share.
The chart looks really set up
and I'm pretty sure insurance companies
have to spend a certain amount of money
on marketing and advertising by law each year.
I know that from a buddy that's in the insurance agency, in the insurance company.
But yeah, it's kind of weird.
But anyway, their ability or the amount of marketing spend that they're doing is actually
going down because they're putting more money into their partnership channel.
Like, for example, Carvana, they are the go-to in three clicks. Now, when you buy the car online,
you can get the insurance online. All of that is,
is them behind the scenes. So to have an essentially an online business,
that's this disruptive and they built that in to various partnership channels.
So that's lowering their, their customer acquisition cost materially.
And if you look at the most recent quarters, that's been the biggest single contributor to further increase in their profit margins.
Yeah, that's a good idea.
And that's genius.
So you got to partner with people if you really want to make it bigger.
I think them partnerships definitely help these companies.
And I've never even heard of Root, to be honest with you,
but that chart looks good.
I'll be watching this thing.
So thank you for that one.
All right, Dan.
You got no break today.
Wait until your 2.30 show.
Never.
There's never any breaks in this world.
I'm always doing 27 things at once but i love it
can uh can't complain one bit and i tell you what like even when i am distracted during this show
this is one of the shows that i actually will when i you know get down with my day or i'm winding
down into the day i'll go back and listen to it actually so and that's a shout out there as well
for the audience if you missed any piece of the show it is recorded uh this space and
this we don't have any other things going on off the back of this space or nothing in front of this
space so it's easy to go straight in find this link and listen back to the entire show here and
you know i just want to shout out all the guys up here this has been an incredible show to be a part
of i know several of you guys have a discord together there's other people that participate
in this show that have their stuff as well.
So definitely want to shout out everyone that's a part of this show and their different things.
This is just an hour, usually an hour and a half at this point that we do on Mondays.
But these guys are doing this all day, pretty much every single day, even on the weekends.
I see, you know, I'll get a message from Ben every once in a while, like on a Sunday night where he's just doing some research.
And, you know, I'm like, man, that's actually super interesting.
Check these guys out.
Make sure you not only give them a follow, but check out all the other stuff they're doing as well.
I'm not going to sit here and shill anything, but if it's something that piques your interest, there's definitely a lot of value out there.
Definitely would encourage you to at least check it out.
Any final thoughts from anybody up here before i close this one down for the day um no glad to be back i missed you guys last week it's like
yeah it was like i was without food and water missing the show last week so
i'll tell you my my monday felt a ton out of it as well well my my monday felt like i was without
food and water without you on two of my spaces.
So I'm excited that you're back.
And I'll tell you this, you're on the podium right now.
You look pretty safely on the podium for the Stock Picks show this afternoon.
Make sure everyone tunes into that.
We'll have Stocks on Spaces over on that account, of course, starting in about 30 minutes.
Power hour, we'll go for about two hours over there.
And then after that, we have our Stock Picks for the Week show.
And, you know, Berna, one of Ben's picks for the week is up 8.5% right now with a little bit of time left in the day here.
There's one of our picks up, Sam Solid had NVTS, of course, which is up 30% this week.
So he's running away with it at the moment.
But definitely some good picks across the board here.
And we'll see what everyone picks tonight.
I'm actually interested.
I mean, as the market continues to float higher, there are little pockets of the market that are just outperforming.
And these stock pickers are really, you know, if you're just playing indices right now,
you're probably not getting anywhere near what some of these pro stock pickers are really, you know, if you're just playing indices right now, you're, you're probably not getting anywhere near what some of these, uh, pro stock
pickers are getting right now. So definitely tune in for that later. We appreciate the whole crew,
money, Mark, Dougie fresh, Godfather, and, uh, Ben over there at story trading, make sure you
give them a follow. Appreciate all the audience that tunes in each and every Monday. And, uh,
we'll see you guys, uh, in about half an hour. I've got a couple of things that are going to
get done, but about half an hour over on stockss on Spaces. And then this evening, of course,
after Stocks on Spaces, Stock Picks for the Week right here on Wolf Financial. Thanks again,
everyone that tuned in. And if you missed it, just a quick reminder, you can listen back to
the entirety of this show as soon as I close it out right now. All right, everyone. Thanks. Shout
out to the small cap crew.
We'll see the money crew later.
Thanks to everyone.
And we will catch you guys on the next space. .
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