Interesting Stocks

[BlueWolf]

I wish I had legged in pre-IPO now. I really think, after the reading I’ve been doing over the last few days, that SPCX is going to be a keeper for the long run.

I still have my doubts about OpenAI and Anthropic, but, hey, maybe I just need to dig a little deeper. I can convince myself of just about anything if I try hard enough .

[jiesen]

If you have a good-sized gain right now, I would say it's a good time to lock that in at around 200. Don't worry about missing out on more, you should have another chance to get in below $175 again, either soon or once the insiders are able to sell their stock.

[BlueWolf]

If you have a good-sized gain right now, I would say it's a good time to lock that in at around 200. Don't worry about missing out on more, you should have another chance to get in below $175 again, either soon or once the insiders are able to sell their stock.

I sold another 1/3, and I’m going to hang on to the rest for now.

[jiesen]

I sold another 1/3, and I’m going to hang on to the rest for now.

That was a very good call. Congrats on getting the quick profit out of this monster stock, BW!

[jiesen]

If you have a good-sized gain right now, I would say it's a good time to lock that in at around 200. Don't worry about missing out on more, you should have another chance to get in below $175 again, either soon or once the insiders are able to sell their stock.

You see? Any shares you sold at 205 yesterday could be bought back today at 175. (or tomorrow for 165, probably)

[BlueWolf]

I just saw an interesting video that discussed the fact that Amazon now has 1 million robots working side-by-side with 1.5 million human employees in its warehouse. Moreover, this ratio is rapidly approaching 1:1. So I did a little digging (I plan to do a lot more) to try and find some of the companies that are supplying all these robots. I came across a number of them. One that really impressed me was an outfit called Universal Robots, which makes something called collaborative robots in the form of robotic arms. This company was bought by Teradyne (TER) back in 2017, and it’s become very good for the bottom line, especially over the last year and a half. Take a look at the chart. I don’t think this is likely to be a one off as this industry, which has primarily been operating in larger operations, is growing extremely fast and starting to spread to smaller companies. I wish I had spotted TER earlier, but there has to be other good opportunities out there. There are a lot of companies now making robots or important components for robots. A few examples are CGNX, SERV, GMED, BSX, IRSG, SYM, and ZBRA. I have to do a lot more digging in this area.

[jiesen]

Yeah, robotics has been, and will continue to be a growing industry. We would all do well to dig more into these companies, and find the best of them to own for the next 10 years of advanced robotics. Thanks for the list of examples to look into!

[jiesen]

You see? Any shares you sold at 205 yesterday could be bought back today at 175. (or tomorrow for 165, probably)

You sees? Now's the chance to get back in at under 160.

[BlueWolf]

My cost of entry after legging in like I did is around $145, so I’m happy. Believe it or not, my main goal was not a quick profit. If that’s all I wanted, there were many other, less risky trades. What I really wanted was a long term position in SPCX at or near $135, which was the original IPO price. I didn’t quite get there, but I’m happy with what I have. I really believe that a year or so from now, I’m going to be happy with my position. I can even see myself adding more shares if it dips a lot. I believe that 2027 is going to be a big year for SPCX.

I’ve also continued to dig into Anthropic and Open AI, and I am started to get a better sense about how they’re both hoping to scale. I’m leaning towards thinking Anthropic has a better path to profitability, but it’s still early in the game. I have substantial fears about what they’re doing, however. Both of them are on the cusp of having their AI do all or most of it’s own coding, which means we might soon have have self-sustaining, self-evolving AI, which is scary. Deciding which company to invest could end up being a moot point.

[BlueWolf]

This is one of the things I was looking for in SpaceX. They should join the Russell index soon, and I still anticipate that they will be fast-tracked into the S&P next year.

[jiesen]

I don't see how they can turn a profit 4 quarters straight starting this year, but yes in a year or two that could be possible. Once they have met all the criteria to be included, whether that is in 2 years or 4, they will become part of the S&P and that should give it an extra bump in price when it happens. So I agree, it's good to be in now at 135 or 145 before that happens in a few years. If they use the AI properly, and therefore can build decent rockets that don't blow up when they land anymore, we should be looking at a $300 or $500 stock in a few years. ECHO (formerly SATS) should also be at $300 or more when that happens, and though I regret now picking that one over the SPCX IPO, I think it'll be just fine, as long as SPCX does what it's supposed to next year.

[BlueWolf]

It’s GAAP profit for 4 quarters straight, which includes money raised through investment and the IPO. A little clever bookkeeping and they’re there. Even if it’s only the NASDAQ 100 and the Russell for now there should be some passive buying.

[jiesen]

It’s GAAP profit for 4 quarters straight, which includes money raised through investment and the IPO. A little clever bookkeeping and they’re there. Even if it’s only the NASDAQ 100 and the Russell for now there should be some passive buying.

No, sorry BW, but I have to correct you again on this one. GAAP rules don't count money raised on an IPO like this as income. It's an increase in Additional Paid In Capital, so it goes under APIC on the balance sheet. Go ahead and google the question, if you still don't believe me, but this is how it is, and why an unprofitable company doesn't suddenly become profitable for a year when they raise money by issuing equity or taking on debt. Those things are treated differently from income, otherwise a company would have to pay a huge income tax bill whenever they raised any money issuing equity, right?

[BlueWolf]

You’re right. I thought it was counted as other income, but it’s not.