SOUNDING OFF ON THE FROTH AND SPECULATION

The over the top froth and speculation that we always warn about is now getting some of the round trip. Our main theme on names that have no sales remains and that is “when the music stops and those themes are no longer in vogue, if nothing changes and companies continue to have no sales, there is always an eventuality that things will go back where they came from.”

We have seen a slew of “no sales” nuclear, quantum, robo-taxis, drones, space, rare earth and a couple of other areas go vertical. We are jealous. We were not in on the vertical because again…no sales. They are finally getting their comeuppance. After all, we found one name with get this…a $25 billion market cap. Yes…no sales but let’s buy a stock with a $25 billion market cap. We found another $15 billion market cap in where the CEO pretty much admitted they wouldn’t be able to scale for years. We actually found one name in nuclear that somehow has been able to stay a public company since the year 2000 even though they have never had sales.

We are not saying that out of this that there won’t be major winners going forward. Frankly, we expect some of these companies in some of these areas to become big names…down the road. For now, trading $5 and $10 bills for $1 not very smart. Seeing quite the few down over 50% from recent highs already with some worse.

We do not know if they just keep diving, bounce them or maybe even ramp them again. Just know at the end of the road, if companies still have no sales with ridiculous market caps, there is pretty much only one outcome when all is said and done. Sorry to harsh the buzz but we deal in reality.

And one more little matter. Less than thrilled as to how some of the AI stuff is playing out here. They are really coming after GE Vernova (GEV) today as well as that whole group…which has been under pressure before today. They are also coming after the supposed AI construction companies in a big way today.

We’ll stay on it.