My new pick has officially been made available on my YouTube channel!
The 1,560+ of you who have subscribed to my free YouTube channel already know this.
As you all may have noticed, almost all of my content is now being shared via YouTube. It’s far more time-efficient than writing, enabling me to spend more time on research (and life). Accordingly, I highly recommend for everyone to subscribe and hit the notification bell on YouTube, so you don’t miss any episodes (or new picks)!
OK, let’s get down to business…
Market Update: A couple months ago, I warned everyone to sell their tertiary (non-core) stocks. At the time, I felt that the looming pullback in government stimulus would make it harder for stocks to power higher.
That proved prudent. The Russell has fallen 13% off of its November highs. According to Forbes, 93% of stocks in the S&P 500 have undergone a 10% correction at some point this year, according to Schwab and Bloomberg data. For the Russell 2000, the most popular index tracking small-cap equities, it’s 98%.
If you followed my lead, you raised a ton of cash and focused on perfecting your Risk/Reward skills. If so, you took massive profits on stocks like VTSI and AEHR at their Risk/Reward highs and waited for the bargains to fall into your lap. After all, that’s what Risk/Reward is all about.
FYI, I share my Risk/Reward charts virtually every time I go LIVE.
That worked like a charm.
VTSI fell more than 50% off its highs, due in part to a delay in a massive government program. The pullback brought VTSI right back into a juicy Risk/Reward zone. Meanwhile, research indicates that the delays won’t be as bad as initially feared, so I’ve been buying those shares back.
Remember, if a company’s long-term story doesn’t change, its stock hitting a Risk/Reward low is an automatic “buy” according to my methodology (hint: a delay does NOT change a company’s long-term story).
Similarly, we’ve been able to buy shares of SMSI and TPCS, even as those companies continue to announce OUTSTANDING news. In the case of SMSI, I’m seeing plenty of signs that Verizon, T-Mobile, and AT&T are anxious to start selling SMSI’s products.
Apple’s recent location-tracking moves could be game-changing for the carriers (in conjunction with SMSI). Further, my team has uncovered evidence that the carriers are looking to partner with SMSI to add numerous IOT devices (like surveillance cameras and possibly other smart devices like thermostats) to SMSI’s SafePath platform.
I’ve been talking about SMSI’s potential to serve an “IOT central nervous system” role for the carrier, but now we’re actually seeing it become a reality. The implications for the stock cannot be understated. It’s reminiscent of what happened with APPS in 2019/2020…
As for TPCS, the company announced its earnings this week.
On its earnings call (NOT in its press release), CEO Alex Chen revealed that the company has received over $13 million of new orders since the end of September.
To put that into perspective, TPCS has only been generating ~$15 million in revenue per year. Personally, I’ve never seen TPCS book so much business in such a short period of time. In other words, the Wait Time is over… TPCS is officially moving into its Gold Mine phase. Here’s my Risk/Reward chart for the stock…
As for my NEW PICK, check out yesterday’s YouTube video for all the details…
…and be sure to hit the Subscribe button there (because blog posts like these will become increasingly scarce going forward).
Cheers!
Mark Gomes Research 