Speaker 1: 0:00

Amazon now has more robots than humans 1 million robots working in their facilities and while everyone's focused on chat, gpt and all the AI software, the real money is being made as AI jumps off your phone screen into physical reality. Jp Morgan and Morgan Stanley are projecting an $8 trillion added to the S&P 500 just from this shift alone. My name is Felix Preen Winston's back there. There are a few kittens around here. This is one of them. They do all the real hard work around here, and I'm a former investor and banker. This one hasn't quite managed the trading floor yet, and I'm also the founder of the Goat Academy, with over 20,000 students.

Speaker 1: 0:41

And today I'm breaking down the robotics revolution and why it is the biggest investment opportunity since the internet. I'll show you three companies that will surprise you, because they're not your run-of-the-mill robotics companies, but they're already profiting from this transformation. I give you real numbers. I give you real profits. So AI is transitioning from screens to physical bodies. For example, the White House is using robot dogs for security, tesla cars are processing massive real-time visual data, and consumer robots are somewhere between $8,000 to $16,000 by now. But every tech revolution is fundamentally an energy revolution. Do you remember the railroads? I'll be surprised because you'd be rather old, but what happened is that coal usage coal went from 10 million tons per year to 200 million tons per year, so he was the real winner there, it wasn't the railroads tons per year, so he was the real winner there. It wasn't the railroads, it was the guys shoveling coal, or the Ford Model T. What happened to oil? Well, oil consumption went from 20 million to 1,000 million barrels a year. And yes, I do know that's a billion, but it kind of makes the point more easy if we go from 20 to 100 and from 20 to 1. Anyway, we're seeing a similar exponential energy demand coming. Microsoft and Meta are buying what? Little islands? No nuclear power plants. It's a cheap dig, wasn't it? I know I should be told off for that one. So, literally buying nuclear power plants. That's how serious the energy demand is.

Speaker 1: 2:27

So we're going to start our first stock with a company that you're not thinking about when you think about robots. The company is called tourmaline tourmaline, depending on how you pronounce it or which part of the world you hail from. T-r-m-l-f is the ticker symbol. And no, it is not some sort of precious, semi-precious stone. It is an energy company. It is Canada's largest gas producer, supplying AI data centers. So gas, as in energy, is the play here.

Speaker 1: 3:03

So why are we going with that first? Why aren't we going for some funky little robotic manufacturer? Because what happens with every innovation? Well, let me take you back to the railroads, let me take you back to the Model T, let me take you back to the dot-com companies. What do they all have in common? Nine out of 10 of those companies if I could write 10, nine out of 10 companies failed. So to invest in the car company, or the dot-com company, or the railroad company, or into the EVs, the electric vehicles nine out of 10 fail. They go kaput, belly up, bankrupt, not where we want to be. So it is much, much safer to just invest and own the company that is going to benefit from, no matter who wins this. So let's go back to our tourmaline chaps.

Speaker 1: 4:07

And first of all, the financials matter. Why? Because this is a real company. They've got $1.5 billion in revenue, which is better than most robotic companies. They make a lot of money. They have a 30% profit margin 30%. Do you know how good that is? Any idea how good that is? That's like Google. So they're like the Google of the gas world. If I was making a sales pitch for the sales world, I would say Now they also have just increased their dividend by a whopping 43 percent. I know some of you like the dividends. Let me know in the comments. And they're also buying back their own shares rather aggressively. Why? Because they're making money. Data centers need consistent, reliable build power and their ceo is their founder. He's got skin in the game. Another another reason we absolutely love this. Now I'm not telling you to go out and buy these. This isn't financial advice. I'm just telling you. These are some of the stocks that we're researching that we like.

Speaker 1: 5:06

Stock numero deux is a little bit closer to the actual robots. It is called Haumet Aerospace aerospace. Ticker symbol is HWM. And what's that all about? Well, they use intelligent robots for 3D printing and manufacturing. Hopefully, we can put some fun clips of that on the screen here for you. They brought in 2 billion in the last quarter in revenue, so it's a real company. Their profits are up by 52%, which is much better than a kick in the groin, and they've just bought back $175 million worth of their own shares. So the company is probably worth 50% more than it's currently trading.

Speaker 1: 5:57

My humble opinion Doesn't mean it's going to come true. I haven't got a crystal ball. Winston back there keeps eating them. So why aerospace first? Well, early adopter of AI-optimized manufacturing processes is the aerospace world. Why? Because they reduce waste, they improve lead times and they increase profitability. So it's just one of those. Generally, the whole defense aerospace space is quite early to technology. As long as regulators don't have to get involved, that's a whole nother thing.

Speaker 1: 6:27

And then what is stock numero three? It is again not some little cool, funky robot manufacturer, because nine out of ten of those will go bankrupt. So if you want to do that, buy a robotics etf, all right, go for it. But still a lot of those companies are going to go bankrupt. So even though you own the one winner, you're also going to own all the loser, and all the losers are going to drag down the returns of your winner. So why bother? Right? I don't need to be in the latest thing, I don't need to miss the most exciting thing. I do this for money. Investing is to make more money. That's what it's about. It's not to be part of some club. It really isn't. So if you're making money with Costco or whatever, brilliant. So if you're making money with Costco or whatever, brilliant, you don't need to be in the latest stock, but you can get exposure to a massive growth sector in a much more safer way, and I'll show you the stock charts in a second.

Speaker 1: 7:39

As to blackwell, which is the nvidia chip, the one that you will need to beat, they have 32 percent revenue growth, which isn't really great, but it's okay. There is is a potential here that AMD and Nvidia become a duopoly, and you can tell I'm a former economist we like these kinds of words. It's the sort of thing that made the oligarchs rich in Russia. It means that only two companies that own the entire space, and that's basically what happened in the 90s. We had Intel, we had AMD, and they just owned the space. Both made a lot of money. So what's it all about?

Speaker 1: 8:16

Well, if you want to build drones, if you want to build any kind of military delivery system application, anything like that, well, you need a chip. You don't necessarily need the greatest, fastest, most wonderful chip, because a lot of drones are single use. I'm sorry drones, but that's your lifespan. Now the US military has reclassified most drones as essentially ammunition, so it's just like firing a rocket somewhere and blowing something up and that's done. So you don't necessarily want to put the most amazing piece of equipment into it. You want to put something in it that is price efficient so that you can make millions of these right. That's basically what it's all about, and amd, generally speaking, has lower costs than NVIDIA.

Speaker 1: 9:10

Now NVIDIA keeps saying, yeah, we charge more. Why? Because we are more energy efficient, and that matters a lot. If you are going to use that chip till it burns out in a data center, right, then that's important. So for data centers, this is really really key. But if you are making essentially ammo, costs are going to matter because, unless you're doing some sort of you know Tom Cruise thing where you're chasing drones, it's probably just a question of who's got the most drones in the air, and there's a little bit more to that. But I think that's more of a software issue rather than a hardware issue.

Speaker 1: 9:54

Now there are some risks, of course. What are the risks? And we look at the stock charts in just a second Is that? Well, nvidia is still very much the number one. The leading robotics R&D infrastructure and the whole sector, by the way, is dependent on the Mach 7's money. The Mach 7, the leading seven companies out there they're spending a lot of money on data centers Once that slows down. If that slows down and it may never, but if it does, both NVIDIA and AMD will correct.

Speaker 1: 10:24

So I want to show you a little bit more about how we actually analyze these stocks. So let's look at one example together, and if you are more of a serious investor and you actually really care about your portfolio, I'd highly recommend you learn the same rules that Wall Street applies every day and every week to their portfolios and I'll give you that for free, so it's an add-on to this that you can download and watch at FelixRentorg slash get free. It's literally the three rules we use to spot these breakout stocks and then also automate the profit taking, because that's ultimately what this is all about. So if you look at AMD here, for example and this is in Trade Vision, which is a platform we built, a couple of things I'd always pop on there's a support and a resistance line here, which is something that's proprietary to Trade Vision. You don't get that anywhere else. That basically tells you where do the market makers sell, so where do the institutions sell, so institute selling.

Speaker 1: 11:26

That kicks another red line, and that happened yesterday. Right, we went quite a lot higher, went quite a lot lower and we closed below that red line, which is sitting at $160 right now. So you can look that number up for every day if you wish. And then the green line, that one, there is your support. So it is what happens there. It's when institutions buy Right, and did they do that? Yeah, that was at $150. So we're in reality, actually trading in a fairly narrow range here.

Speaker 1: 11:56

And One of the setups I would also look at is always are we above or below the yellow line? So that would be my two nuggets for you for today. That yellow line there is the 50-day moving average line. You generally want to be above it because the traders sell below it. Every risk manager in the world kicks into overdrive when you drop below that. So that's something to look at. But where did we get in on this? Our last buy point for AMD was down here at 119. So that was down here. So it's still up 36%. Now, if you're still in on this, you didn't get knocked out here.

Speaker 1: 12:35

It's probably prudent to set a stop somewhere between below the recent low. Why? Because stuff can turn around and go down pretty harshly. Well, what if it goes down more? What if it recovers? I'll miss out on the rally. Well then we just buy it again. It's very simple. So we don't really care about missing out on stuff. We just want to be in something that is safe, that's managed and that's under control, and we can't trust our emotions to do that.

Speaker 1: 12:59

I'm sure you've experienced that by now. So therefore, we automate it. So that would be my approach to it. But I'm still. I'm still liking it where it's sitting. It's sold up a little bit, but, yeah, if you, your risk um allowed that, your risk management allowed, um, this sell-off here of 18, then, uh, you're probably still in on this and therefore you're gonna, you're gonna be riding this until it drops significantly till below, below 150. That would be my, my way of looking at that doesn't mean you have to do that. So if you got some value out of this, imagine the value you get if you actually watch that 15-minute masterclass at felixfrancoorg. I wish you all the best and thanks for tuning in.