Hello From Moldova !
I’m out of the country for the next several weeks, but life (and the stock market) goes on. In fact, since getting here, I’ve done more research than usual (fewer distractions)… and that research has yielded incredible fruit. Here’s the quick rundown…
1) For those looking for stocks that can triple in value, my Starting 5 is (in no particular order) SMSI, VTSI, TPCS, IRIX… and now AEHR.
2) CTLPP has previously been named as part of my Starting 5… and it’s STILL one of my 5 largest positions. However, that one is has a different profile from the rest — a super-safe preferred stock which will provide great returns without the multi-bagger potential of SMSI, VTSI, TPCS, IRIX, and AEHR.
3) AEHR has actually been sitting in my real-time performance tracker for several years, but doing nothing. The reason? Simple. The company has been in Wait Time… but last night’s earnings call finally signaled AEHR’s graduation into the Gold Mine phase.
For those who aren’t inclined to read a 20+ page transcript, I boiled last night’s earnings call down to the key highlights. In short, demand for Electric Vehicles (led by TESLA) is driving demand for AEHR’s cutting edge testing systems.
It’s been a long time coming, but technology has finally gotten to the point where AEHR’s systems are now a must-have, not just a nice-to-have… and that means big things for the stock IMHO.
4) All indications tell me that SMSI is finally ready to launch at T-Mobile… and they will just be the first of many. I believe the launch could happen at any time within the next few weeks. Meanwhile, the stock is bouncing off of a risk/reward low, a point from which the stock has traditionally risen 100%+ (which it has done four times over the past four years).
Because of this, I saw no reason to wait any longer — I bought as many shares as I could without breaking any of my portfolio management rules. I see fundamental and technical upside to $15 (and more over time).
5) IRIX continues to gain traction in its retina and glaucoma businesses. However, it continues to sport a market cap of just $100M vs. $1B for its peers (including one that is expected to IPO shortly). I’m not saying IRIX should be a 10-bagger from here, but the business is doing great (something that should be reflected in its earnings call, coming within weeks). Further, the math tells me that the stock should be upwards of 100% higher right now with the fundamental / technical ability to be a triple in just over 12 months.
6) I’ve discussed VTSI at great length in my videos on YouTube. However, I would also encourage anyone to check out this article on SeekingAlpha. It’s one of the best I’ve read regarding VTSI and its opportunity. Basically, in addition to the growing demand for law enforcement training, the military is launching a virtual reality training program, driven by Microsoft’s Hololens. Microvision (MVIS), a component supplier to Microsoft, rose 1,000% last year on hype surrounding the product and program.
What most people don’t know is VTSI is almost assuredly going to be a part of the program as well, generating tens of millions for a company that has traditionally done less than $20 million in revenue per year. “Most people” includes the third-tier Wall Street “analysts” who cover the stock. They’ve been asleep at the wheel, enabling the stock to pull back from recent highs. I’d view this (or any further) weakness as a great buying opportunity.
7) TPCS shareholders have been in a holding pattern, waiting for the pending (and transformative) STADCO deal to close. Based on recent data points and SEC filings, I expect this deal to close within the next 2-4 weeks… and, in my humble opinion, that will justify a $1 (+80%) increase in share price.
8) Last but not least, I do NOT think it is wise to pick and choose which of these stocks will do best. I’m confident that these stocks will do amazingly well as a group, but experience has taught me that I never know when I’ll be right or wrong (otherwise, I’d never be wrong). Accordingly, I have built a similarly large position in most of these names. Food for thought…
Have A Great Weekend!
Mark Gomes Research Website
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Disclosures / Disclaimers: This is not a solicitation to buy, sell, or otherwise transact any stock or its derivatives. Nor should it be construed as an endorsement of any particular investment or opinion of the stock’s current or future price. To be clear, I do not encourage or recommend for anyone to follow my lead on this or any other stocks, since I may enter, exit, or reverse a position at any time without notice, regardless of the facts or perceived implications of this article.
I am not a financial advisor. Nor am I providing any recommendations, price targets, or opinions about valuation regarding the companies discussed herein. Any disclosures regarding my holdings are true as of the time this article is written, but subject change without notice. I frequently trade my positions, often on an intraday basis. Thus, it is possible that I might be buying and/or selling the securities mentioned herein and/or its derivative at any time, regardless of (and possibly contrary to) the content of this article.
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3 thoughts on “AEHR Taking Flight… and More!”
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Great post. Love the conviction. I own a little IRIX and VTSI.
As always thank you for your insight-it is much appreciated!
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