The 10x Win That Still Loses

SPEAKER_00 0:00

Winston here showed you stocks that went up over a thousand percent. One of them a thousand fifty percent. If you put ten thousand dollars into that stock, you'd be looking at a hundred and fifteen thousand dollars. Life-changing money, right? Another one went up 827%, a third one went up 180%. Now those were all quantum computing stocks, and it wasn't hype. It was one of the biggest tech shifts in in human history. I also flagged, actually Winston did, Palantir when it was trading in the 20s, right? It ran well past $100. So the picks were right. The thesis was right, Winston was right, but here is what went horribly wrong. The quantum stocks crashed, INQ down 70%, Reggetti down 70%, and most investors who bought these great Winston picks here, even early, gave back almost everything or even lost money. Because they didn't know that they had to sell at some point. So we can literally hand you a 10x winner, and most people will still lose money on it. And it frustrates the heck out of me because it isn't a stock picking problem, it's a system problem. So today, Winston and I are going to show you two things. First, the next wave of stocks that have the same kind of breakout potential. Not the obvious AI names, you know, not NVIDIA or something, but six stocks across three industries here. Three of those are just smallish companies, about $15 billion, which is typically where the biggest opportunity is. And Wall Street barely covers these. But the numbers are pretty insane, and I'll show them to you. And second, I'm going to give you a simple three-checkbox framework that tells you whether a stock has real potential. It's just noise. It's the same kind of system that would have told you exactly when to take profits on these quantum stocks, right? Now, I warn you, there'll be plenty of information on this, and yes, some golden retrievers. So we're also going to um give you all the numbers, the system for everything in writing, because we want to make sure this really lands for you. So you can go to phoenixfrents.org slash stop and you get our full free research report on everything we're about to cover, plus more. Link's in the description, right? Uh that's that's Winston's uh Spanish heritage. He doesn't have any. So it's yours, it's free. Uh download it. If you're gonna download it, write it, write stop in the comments. Uh, that'll that'll really confuse people who haven't watched the video past the first 30 seconds. So before we talk about the six stocks and why I think they could 10x, I'm not a financial advisor, I haven't got a crystal ball, but I'm gonna show you why I think it.

The AI Spending Wave Behind It

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Let me give you the bigger picture. Because if you don't understand what I call the wave, you'll never understand why these companies are about to make potentially a fortune. Every major tech company right now, literally on the planet, think Microsoft, think Google, Amazon, Meta, Apple, they're all in a spending ball. They're pouring hundreds of billions of dollars into AI infrastructure. So we're talking about 600 billion this year, estimated for next year is over a trillion. So it's, you know, literally more than the GP of most countries, you know, more than Sweden, poor Swedes, more than Argentina, uh, just in one year on one technology. And what most people miss is when you hear AI spending, you think Nvidia, you think chips, right? But chips are maybe 30% of the story. Somebody has to build the building, somebody has to build the foundation, somebody has to run the power line, someone has to wire the whole thing together, and someone has to make sure the whole thing doesn't get hacked. And there are over 140 large-scale data center projects out there. We're talking really, really big ones, just in the US. And the bottleneck isn't actually chips, it's power, it's physical infrastructure. It's the stuff nobody talks about because it isn't that sexy. And that's where the real money is, in my opinion. And that's where these six stocks live. But before I show you the stocks, and you can obviously jump around if you're a you know ADSD, but whatever they call them now. Um, you know, you suffer from something uh that is probably a result of your TikTok habits, but uh there is a medical term for it, they'll give you medication, and that way you feel special. I'm gonna give you a framework because stock picks, a lot of framework is gambling, as we've seen on the quantum stocks. Thousand percent up, all the way back down, no super losing money. I

The Three-Checkbox Stock Framework

SPEAKER_00 4:14

call this the three checkbox framework. For obvious reasons, I've just drawn three checkboxes. It's fairly simple. You can use it literally on any stock, any industry, and here's how it works. Checkbox 1, which is where I come from, is simple. Is industry climbing? Simplifying the language here a little bit. Not is it cool, not is it in the news, not as everyone's talking about it, no. Is money flowing into the industry? That's checkbox what? That's checkbox one. Checkbox two is is this the best company in this industry? That's checkbox two. What are we looking at? Highest margins, fastest revenue growth, strongest order backlog, best return on invested capital. You want the company that's winning. You know what, don't just sort of the participant, you want the best in class, and then checkbox three is stock moving on up. And that's the one most people skip. You say, see, people want to catch the bottom. The bottom is where stock's going to die. I want to see that the stock's already in an uptrend. It's already building momentum, money is already pouring into it, and if it's moving, check. Do these three land for you? Put a check in the comments down below and I'll see it. And if not, I'll do this again. Uh or I just jump out of the nearest window. So, what happens if I do this and one of these fails? Say this one fails, but I don't buy it. What if two of them fail? Well, I definitely don't buy it. And when these checkbox stops being true, is also a pretty decent place to possibly take some profits. That's the system. You know, if you had this on quantum stocks, checkbox three would have made you take profits because it would have failed fairly quickly. You'd still have some money. So, and you know, I sort of make a joke out of it, but it's actually very serious, right? It's really very serious. People like literally have to work years longer because they make a decision based on something they didn't really fully understand. And this framework here on the screen tells you when to look at a stock. But knowing exactly when to get out of it, when to sell it, that is a whole different skill. And it's the skill most investors never ever learn. The strategy that builds your parents' wealth, it will not build yours. If you believe buy and hold is the path to profits, well, I've got bad news for you. Buy and hold is dead. Wall Street buried it, the hedge funds buried it. And if you don't understand what and if you don't understand what replaced it, you'll be sitting in software stocks making 0%, while the NASDAQ does 70%. That's what happened in the last year to people who own software stocks. Or you hold oil when the smart money is already moved on. I'm starting to buy software stocks, by the way. Again, doesn't mean you should. Wall Street does not buy stocks for quality anymore. They don't care about profits or management. They follow the money, momentum, they call it, and they move faster and faster and faster. And if you don't learn to follow the money, you will get left behind every single time. So I'm going to teach you this. One more time. Life, the exact system professional investors use to spot the rotations before they happen, early. And this is what works for you if you're a trader, a stock picker, or if you're just buying index funds. It isn't complicated, it works at every level. So you've got to do one thing: grab yourself a free seat at buyandgrow.net. It'll be live. Bring your questions. There'll be no replay, don't ask me for one. And now let's get into the six stocks.

Data Centers Need Builders And Power

SPEAKER_00 7:55

The first industry we're looking at is data center construction and power. I know it's exciting, but think about it this way. If AI is a factory, somebody has to build the factory, and somebody has to make sure the factory has power. That's this industry. And right now, data center construction is the biggest building boom since you know the highway system in the US. That's the comparison I saw. Companies are spending hundreds of billions, they can't build fast enough, and the number one problem: power. Every single one of these data centers needs massive amounts of electricity. And there I'm not talking about nuclear. I'm talking about a very simple bottleneck. Who builds the power plants? And there are two companies in this space that have numbers that genuinely blew me away. The first is this one on the screen here, is STRL, Sterling Infrastructure. There she is, Sterling Infrastructure. And most people think this is a road paving company, which is pretty boring, but but they have a segment, and that segment is called e-infrastructure solutions. And it builds the foundations, the electrical systems, and the site work for data centers. And that segment is exploding. Their most recent quarter revenue went up 92% year by year. 92%, right? They build boring stuff, construction. It doesn't happen very often. They have a backlog of $5 billion. That's work already contracted. And by the way, these guys spend absolutely no money at all on RD. They don't need to. They dig stuff. And because we know they have this backlog and orders, we know what the revenue is going to be going forward, right? It isn't a guess. These are signed contracts. The work is scheduled. This is about as close to guaranteed growth as you get in the stock market. Revenue growth, that is. So let's run the check boxes. Is the industry climbing? Yeah, data center construction spending is at an all-time high and it's accelerating, right? Check. Best in class, well, they have 92% revenue growth. Pretty hard for you to find another construction company that does that and a $5 billion backlog. Check. Is the stock moving up? I have a crude stock chart on here, and it sort of is. Not tremendously so, but it sort of is. It's kind of consolidating, I'd say, after a big run-up. Setting up for the next move might be another way of interpreting it. I'm not promising you that, but that's another way of interpreting it. Now another stock in that space is called AGX. Tell me if you've never heard of it, right? I've never heard of it in the comments. So if Sterling builds the data centers, Argan builds the power plant that feeds it. They have a subsidiary, it's called Gemma Power Systems. They build natural gas power plants. And right now they're building massive plants specifically to power data centers. They just secured a contract to build a massive power plant in Texas, an enormous one. 1.4 gigawatts is quite a lot. It's enough to power a small city. And it's being built specifically for data center customers. Now, there's one thing I love about this company: cash flow, free cash flow. They have an insanely good free cash flow margin. And let me explain what that means. Most companies would love to have like a 10% free cash flow margin. These guys have a 40-something percent. So for every dollar of revenue, about 40 cents just turns into cash that they don't need. About a 3 billion backlog in orders. So revenue is kind of locked in, work's scheduled, and they're sitting on quite a bit of cash, if I'm not mistaken. Fairly nice cash pile, which is good. And in a capital-intensive construction business, having no debt is basically unheard of. These guys have no debt. Did I mention that they have no debt? So it's a pretty well-run company. How big is this company? About 8.8 billion. Pretty small. Company with these margins growing this quick. It's the hottest construction market in decades. So there's room to run, right? So checklist, it's the industry growing. Yeah, power plant construction is going through the roof. And that massive demand, right? Best in class, yeah, very, very good cash flow. Debt-free. Seems to be like a well-run business. Pretty good. Is the stock running up? Yeah, gradually. Gradually. Pull back a little bit here in the recent days, but that's that's the entire market. Nothing to see here, really. There you have it. Now what's the next industry? The next

Silicon Plumbers For AI Clusters

SPEAKER_00 12:09

industry, I call these the I call these the silicon plumbers. What the heck does that mean? It's a little bit more technical, right? But let me make it really, really simple for you. You know how AI runs on these massive GPU chips, right? The one Nvidia's makes, those really big, expensive ones, right? Well, those chips don't work alone. They work in clusters. Thousands of them. And they're wired together, you know, in a data center, and they talk to each other at very, very crazy speeds. But you see, the chip is only as fast as the connection between the chips. If the wiring is slow, the whole system's slow. It doesn't matter how good the chip is. So think of it like plumbing. You can have the fanciest kitchen in the world, but if the pipes are clocked, nothing works. So these are the silicon plums. And there are two companies in this space. One does the data connection, and the other does the power delivery. Both of them are solving the exact bottleneck that AI companies are desperately trying to fix. So let me give you the stock tickets. First, there's Credo Technology Group. I actually talked about this one before. They make the high-speed connectivity chips that allow AI processors to talk to each other. Now, let me tell you something about these guys. Their revenues just tripled, tripled in one year, from 400 million to 1.3 billion in one year. Insane. And their gross margins are 68%. And that tells you one thing. It tells you they have pricing power. Nobody's undercutting credo, just like it's run by the Italian mafia or something, because nobody has the same technology, or just a very good protection racket. Let's assume it's the technology. So they basically have software margins for a hardware product, which is insane. This is my favorite word of the day, insane. Market caps 48 billion, which is bigger than the others I've shown you. So the 10x mass here is a little harder. But the business quality, this might be the single strongest company in this entire video. Revenues tripling, 68% margins, a market that's growing faster than anything I've seen since probably early cloud computing. And if you look at our check boxes again, do we meet the checkboxes again? Do you remember what they are? What's checkbox number one? Red's a bit menacing. Industry climbing. You bet. Every the demand's just going through the roof. Are these guys best in class? Well, the data I'm showing you is from the Winston app. We look at about 12,000 stocks on this that you can scan for. And it's up there. It's very, very, very, very much up there. There's nobody even close. And then are we looking at the chart? Well, it's in an uptrend, sort of. It's moving in the right direction. And that's something we'll talk a little bit more about if you talk to Army on the weekend. But generally speaking, you want an uptrend. You don't want it to be too early. You don't want to be the first one in there, like you also don't want to be the last one in there. That's how people lose their money. And there's a fourth stock here. And it's called ticker symbol V-I-C-R, Vicor Corporation. So if Creeder, if Credo is the data plumber, Vicor is the power plumber, they make specialized power modules that deliver electricity to GPU Rex. I know it's very exciting. So what's the problem? Well, these AI chips are really, really power hungry. So imagine, like a, you know, sort of very large obese person who just needs to eat all day long. And you can't just plug them into a wall outlet, neither the obese person nor the chip. You need precision power delivery, the right voltage, the right current, a bit like the right sort of ready meal, you know, at the right timing. And that needs to happen for thousands of chips simultaneously. So that's what Vikor does. They have something called factorized power architecture. Basically, they solve this problem. And revenue, it's just hit all-time highs. Backlog's $300 million. It's the highest it's ever been. And they're building out capacity support, about a billion and a half in revenue. Profit growth is up 700% year on year. Margins, check 55%. For people building hardware, this is crazy. Have a look at Tesla's margin. It'll be below 20%, I think. Last time I checked, because they're building physical things. Very hard to build physical things with margins that are higher than 20%. And it's a small company. 12 billion market cap. So a couple of big contracts could double the stock. But it's also not a penny stock. So it's not going to move quite as crazily as that. So industry climbing C power delivery for AI data centers is the bottleneck. It is going through the roof. So check. Best in class, you're not going to find these kind of gross margins with many hardware companies like that, because they just build something that only they can build. And uptrend, look at my crude stock chart here. Yeah, it looks so it's a broadly an uptrend. So that's kind of all we needed to know. Now we have one more industry for you. And tell me if this is useful, by the way. And tell me if you also realize that you don't know when to take profits on these things if you decide to buy them. And if you decide to buy them, that's on you. I'm not telling you to buy them. I'm just giving you some research here, right? So what's the third industry?

Identity And Forensics To Guard AI

SPEAKER_00 17:11

I call them AI needs guards, basically, you know, with big sharp teeth. Why? Cybersecurity and digital identity is what it's all about. If you've got hundreds of billions of dollars in AI infrastructure, you've got every company on the planet connecting their most sensitive data to these very AI systems. You've got AI agents, software robots that can now log into systems, they can access data, they can send it to people without humans being involved. So who makes sure the right agent accesses the right data? Who makes sure a hacker doesn't hijack an AI system and walk away with everything? Who investigates when something goes wrong? AI doesn't just need to be built, it needs to be guarded. And that's a massive growing market. So I've got two stocks in this for you. One's called Okta. And by the way, for this sort of thing, if you don't know where to look, in the in the Winston app, you can just click on a filter called cybersecurity, and it'll literally spit out for you some of the best names out there. You can click compare top 10, and then you see all the data, all of these stocks very, very simply. Now, Okta is the one we're looking at here on the right, OKTA, if you can't read it. And it's the biggest name on the list. Um, most people think of it as a boring sort of company that lets you work in, you know, log into your work apps or something. Um, but it's a bit like saying Microsoft or Amazon rather is a bookstore. Okta is now positioned itself as the identity layer for AI. They locked, they they launched something called Okta for AI agents, which basically lets companies control which AI agents can access which system, what data they can see, and what actions they can take. So it's sort of the bouncer for AI, right? And if we open the uh the full analysis here for Okta, stocks moving in the right direction, uptrend, right? That's our third check. Revenue is growing, profits are growing at an increasing rate. They're generating free cash, which I absolutely love. And their margin is just crazy. It's like a beautiful, beautiful software company with an almost 80% margin, lots of free cash being generated. They're getting paid up front. I can see that from this cash conversion number. So these guys are printing money. And AI agents is still very new. I can tell you, they're gonna be millions and millions and millions more AI agents out there next year and the year after, and the year after that, and so on. So if you have 10,000 employees, you're probably gonna have 10 million agents. All of these agents need to be monitored and watched. This is exactly what Okta does. So we've got check boxes, industry climbing, C. AI security spending is accelerating, right? That's our check. Best in class, well, the margins are just absolutely perfection. And stocks moving, yeah, it's climbing. It's in an actual in active uptrends. We've got all three. But there's another one that I want to show you. Also flies under the radar, and it's called Celebrite. Take a symbol CLBT. It's the last stock on the list, and it might be my favorite sort of sleeper on this whole list. It's a $4 billion company, not that big. Most of you have never heard of it. If you've never heard of it, put never heard of it in the comments. And it does something very um, well, they they would say it was interesting. They make the tools that law enforcement and intelligence agencies use to extract data from phones, computers, and digital devices during investigations. So you think FBI, think Interpol, think military intelligence. So when there's a criminal case and they need to pull data off a suspect's phone, Celebrite technology is what they use. Now, here's the AI ag. As AI gets embedded into everything phones, apps, communications, the investigations get way more complex. You need AI-powered tools to analyze AI-generated data. Celebrite is building exactly that, and the numbers are really, really very 84% gross margin, best on the list. Now, people think this is a hardware vendor with software margins. Free cash flows, beautiful, yeah. 32%, last quarter was 60%. Revenue guidance is about 20% growth. So 4 billion companies is the smallest, the small smallest on the list. And that's why, you know, the the 10x math works for these sort of stocks the best, that's sort of promise. But to go from 4 billion to 40 billion is actually very doable. Whereas to go from 40 billion to 400 billion is a lot harder. So, what do we got? An industry that's climbing? Yes, digital forensics is going to go through the roof, stocks moving up, and they have best in class numbers. So let me just put this all on the screen for you together so you can see them and compare all the data. We had analyze, and now you've got all six of them on the screen here. And if I run you through this quickly, you know, Okta guards the front door, celebrate bright even investigates when someone breaks in, both.

Risks, Profit Taking, And Next Steps

SPEAKER_00 22:00

Essential. So we started here. We've got Sterling, infrastructure, AGX here, sitting on the best cash generation machine in the whole sector. Credo is got the best numbers. So I'm only very clear on that. It's got the best numbers. But you know, Celebrite, that moat here is the best, and it's a it's a much, much smaller stock. 18% revenue growth. So you can kind of just click through this this way and see it. And then you could also save this as a watch list. You could export it and do all sorts of things with it. Or you could click into any one of these and you go back and you see the full overview. But I'd be doing a shoddy job if I didn't tell you there's something that could go wrong here, because every investment has risk. The biggest risk is, you know, an AI spending pullback or you know, change in technology or you know, something like that. And the second biggest risk is you, because even if you were to buy the right stock at the right time, it's highly unlikely that you're going to sell it at approximately the right time. And why is that? Because you haven't been taught how to do it. And it is what I see as the biggest, lowest hanging fruit out there. And it brings you back to what I said at the beginning. I can hand you the best stock pixel in the world, but if you don't have a system for knowing when to sell and even when to buy them, it doesn't matter, right? Quantum stocks proved it. Go back on my YouTube videos and you will see I talked about the entry point on Righetti being here, right? Went up a tremendous amount and then it collapsed and it's back to where it started, which isn't actually so bad, except that most people bought somewhere near the top, and then they're still holding on and hoping and praying and wishing with their 67% down, while other stocks that again nobody really talks about, from the point we bought it out here in late May, you know, are already up another 55%. So again, I'm not promising returns. But if you don't know when to take profits, if you still believe in this buy and hold till death do us part, well, pull up a chart of plug or PayPal or any of the losers out there. And I can tell you, your stock's going to be a loser one day. It's a promise. Let's bet on it. Buy and hold is debt. If you don't understand what replaced it, you'll be sitting in the wrong thing while something else goes up 50%, 60%, 100% or more. And you'll be suffering while the skilled money has moved on. Wall Street does not buy stock. Wall Street does not buy stocks for quality anymore. They don't care about the story, they just care about the momentum. That's all it's about nowadays. And maybe it's not what you want to hear. Maybe it's sort of like doesn't fit in with your view of the world, but I can tell you that's what's happening. And it's just technology. It's easier to track money, it is faster to act, it is cheaper to sell. So therefore, these funds do that. And they move most of the money. Not you, not me. So this live session coming up this next weekend will teach you that exact system that professional investors use to spot these rotations early on as they're happening. So if you're a trader, stock picker, you're just buying index funds, it isn't complicated, it works at every level. Grab yourself a free seat at buyandgrow.net. It'll be live. Bring your questions. There won't be a replay. And if you got some value out of this video, share it with somebody. And share with somebody else the live training we're going to do. And um bring some popcorn and let's have some fun. And let's spread financial education for more and more people. I wish you all the best.