These 2 Stocks Will Explode Higher ‼️
Summary
TLDRThe video script discusses the volatile nature of Wall Street, highlighting how quickly opinions can shift, affecting stock prices. It features a detailed analysis of two high-risk, high-reward stocks: The Honest Company and Planet 13. The presenter praises the management of The Honest Company for its rapid turnaround, noting increased revenue and improved profitability. For Planet 13, the script emphasizes the company's potential for growth, driven by strategic changes in its Las Vegas Superstore and positive financial results. The importance of portfolio diversification is also stressed to navigate market fluctuations effectively.
Takeaways
- 📈 The script discusses the volatile nature of Wall Street, with opinions and stock prices changing rapidly from day to day.
- 📊 The speaker highlights significant gains in various stocks such as Meta, Palantir, Tesla, and others, indicating a positive market trend on a particular day.
- 📉 Despite overall optimism, some stocks like Monster and Dutch Bros experienced significant declines, showing that not all sectors are performing well.
- 🚀 The speaker focuses on two high-risk, high-reward stocks, The Honest Company and Planet 13, which are showing promising signs of growth and recovery.
- 🌱 The Honest Company has made a remarkable turnaround with increased revenue, improved profitability, and no debt, positioning it for potential growth.
- 💰 Planet 13 is undergoing positive changes, including the introduction of new attractions to its Las Vegas Superstore, which is driving more traffic and sales.
- 🔑 The importance of a strong management team is emphasized, as it can transform a company's performance, as seen with The Honest Company's rapid recovery.
- 📊 The speaker provides a detailed analysis of The Honest Company's financials, noting the increase in revenue, reduction in costs, and improved gross margins.
- 🌟 The potential for The Honest Company's stock to reach $5 or more in the near future is suggested, based on the company's improving fundamentals and market opportunities.
- 🌞 The script concludes with advice on the importance of portfolio diversification, suggesting that investors should hold a mix of growth, value, dividend, and speculative stocks to weather different market conditions.
- 📚 The speaker also encourages investors to take advantage of a free resource on 'Seven Things to Do When Stocks Are Crashing,' emphasizing preparedness during market downturns.
Q & A
What is the main theme of the video script discussing?
-The main theme of the video script is the fluctuating opinions on Wall Street, the performance of various stocks, and the potential of two specific stocks, The Honest Company and Planet 13, despite market volatility.
How does the script describe the change in Wall Street's opinion over the course of a week?
-The script describes Wall Street's opinion as changing rapidly from predicting massive recessions and the end of the Yen carry trade to becoming optimistic with the cancellation of recession fears and a significant uptick in stock values.
Which stocks are mentioned as having a massive day out in the market according to the script?
-The stocks mentioned as having a massive day out in the market include Meta, PayPal, Tesla, Shopify, Amazon, Nvidia, and Cheesecake Factory.
What is the significance of the numbers mentioned for The Honest Company's financial performance?
-The numbers mentioned for The Honest Company's financial performance indicate a significant improvement in revenue, profitability, and gross margin, along with an optimistic outlook for the full year, which are positive signs for the company's turnaround.
What does the script suggest about the potential upside for The Honest Company and Planet 13?
-The script suggests that both The Honest Company and Planet 13 have high potential for growth and reward due to their improving financials, market opportunities, and strategic moves by their management teams.
What is the importance of the Las Vegas Superstore for Planet 13 mentioned in the script?
-The Las Vegas Superstore is important for Planet 13 as it has undergone significant changes to attract more foot traffic, which is expected to boost sales and improve the company's overall performance.
How does the script describe the turnaround of The Honest Company?
-The script describes the turnaround of The Honest Company as rapid and impressive, with the management team being referred to as 'The Magicians' due to their ability to transform the company from a potential bankruptcy candidate to a growing and profitable entity in a short period.
What is the role of diversification in an investment portfolio as discussed in the script?
-The role of diversification in an investment portfolio, as discussed in the script, is to protect investors from market volatility and ensure that they can withstand different market conditions by spreading their investments across various types of stocks.
What is the 'seven things to do when stocks are crashing' workshop mentioned in the script?
-The 'seven things to do when stocks are crashing' workshop is a resource mentioned in the script that provides a checklist or guide for investors on how to navigate and respond to market crashes effectively.
How does the script characterize the recent performance of Monster Beverage and Dutch Bros?
-The script characterizes the recent performance of Monster Beverage and Dutch Bros as poor, with both stocks experiencing significant declines in value, suggesting underlying issues with their business models or growth rates.
What are the potential future outcomes for The Honest Company and Planet 13 if they continue on their current trajectory, according to the script?
-If The Honest Company and Planet 13 continue on their current trajectory, the script suggests they could become significant cash flow machines, potentially leading to increased stock prices, possible buyouts, or expansion into new market opportunities.
Outlines
📈 Wall Street's Volatile Swings and Stock Performance
The paragraph discusses the unpredictable nature of Wall Street, highlighting how quickly opinions and stock values can change. It mentions a massive upswing for several stocks, including Meta, PayPal, Tesla, and Nvidia, which experienced significant gains. However, it also notes that some stocks, like Monster Beverage and Dutch Bros, faced substantial declines. The speaker emphasizes the importance of a recent video they made, offering a checklist of actions to take when stocks crash, and encourages viewers to access it for free.
🚀 The Honest Company's Remarkable Turnaround
This paragraph focuses on The Honest Company's impressive financial turnaround. The company reported a 10% revenue increase,远超分析师预期的3%, and improved profitability with a significant year-over-year increase in gross margin. The management's rapid and effective turnaround strategy is praised, as they have successfully transformed the company from a potential bankruptcy candidate to a thriving business. The Honest Company also ended the quarter with a substantial cash increase and no debt, projecting a positive outlook for the future.
🌿 Planet 13's Strategic Revamp and Growth Prospects
The speaker talks about the substantial changes and growth potential of Planet 13, a company that operates a large cannabis superstore in Las Vegas. They discuss the introduction of new attractions like a tattoo shop and a consumption lounge to drive foot traffic and sales. The company's revenue and gross profit have seen significant increases, and although there is still a net loss, adjusted EBITDA has improved. The optimism for Planet 13's future is high, with expectations for continued growth and profitability.
🌪 Surviving the Storm: Market Diversification Strategy
In this paragraph, the speaker emphasizes the importance of diversification in investing, especially for those with substantial market investments. They discuss the different types of stocks they own, including growth, value, dividend, and speculative stocks, to weather various market conditions. The speaker warns against putting all eggs in one basket and encourages investors to hold a variety of stocks to mitigate risk and take advantage of diverse opportunities.
🛒 Amazon and Berkshire Hathaway: Diversification in Business Models
The speaker uses Amazon and Berkshire Hathaway as examples of successful business diversification. They highlight how Amazon has expanded beyond e-commerce to become a major player in fulfillment, transportation, streaming, and grocery, while Berkshire Hathaway owns a wide range of companies under Warren Buffett's leadership. The message is to illustrate the benefits of not being confined to a single business line and to explore multiple avenues for growth and revenue.
📚 Embracing Market Opportunities and the Importance of Diversification
The final paragraph wraps up the discussion by reiterating the importance of market diversification and the abundance of opportunities available to investors. The speaker encourages viewers to look beyond the obvious and explore a variety of stocks with high growth potential. They also remind viewers to take advantage of the provided resource on how to handle market crashes and to maintain a diversified portfolio to secure long-term success in investing.
Mindmap
Keywords
💡Wall Street
💡Recession
💡Yen carry trade
💡Stocks
💡Market sentiment
💡Gross margin
💡Adjusted EBITDA
💡Diversification
💡Management team
💡Consumer goods company
💡Price to sales ratio
Highlights
Wall Street's rapidly changing opinions on market conditions, with stocks like Meta and Tesla experiencing significant gains.
The Honest Company's remarkable turnaround with a 10% revenue increase, surpassing analyst expectations of 3%.
Gross margin improvement for The Honest Company by 1,120 basis points year-over-year.
The Honest Company raising full-year 2024 revenue and adjusted EBITDA outlook, indicating strong future potential.
Planet 13, a cannabis dispensary, showing signs of recovery with increased revenue and improved gross margins.
Planet 13's Las Vegas Superstore undergoing significant changes to attract more foot traffic and boost sales.
Diversification in stock portfolios is emphasized as a key strategy for long-term investment success.
The importance of not being overly invested in a single stock or sector due to market volatility.
Warren Buffett and Jeff Bezos are cited as examples of successful diversification across businesses.
The potential for The Honest Company to become a cash flow machine with a positive net income in the near future.
Planet 13's adjusted EBITDA showing an increase, indicating better financial health.
The comparison of The Honest Company's price-to-sales ratio with that of Procter & Gamble, suggesting significant upside potential.
The potential for Planet 13's stock to experience substantial growth as the company emerges from recent challenges.
The strategy of owning both growth and value stocks to balance risk and capitalize on market opportunities.
The concept of speculative stocks and their role in a diversified portfolio, especially during risk-on market conditions.
A reminder to investors to stay diversified and not focus on just one or two opportunities in the market.
The availability of a free resource on 'Seven Things to Do When Stocks Are Crashing' for viewers to access.
Transcripts
Wall Street you got to love Wall Street
Monday it was all massive recessions
coming this Yen carry trade it's all
over it's game over Tuesday it was like
uh maybe not things might be okay
yesterday it was like I don't know
things might be bad Thursday today oh my
gosh no recession it's all been
cancelled we're looking good baby
$82,000 up isn't it fascinating how much
wall Street's opinion can change by day
byday basis it's incredible right uh
obviously massive day out there for so
many of my stocks I mean meta $335,000
up today this just in the public count
paler $116,000 up Tesla 12,000 elf 6,000
PayPal's almost 5,000 Amazon 3,000
Nvidia 2,000 Cheesecake Factory 1,800
it's incredible Shopify another stock I
own I don't own this one the the public
account but I own nether portfolios 25%
plus move now in the past 5 days 7% here
today yesterday was like an 18% move for
the stock you do have a few stocks out
there crash though I will say that
monsters one of those that crashed here
today that was down over 11% and then
you had Dutch Bros down about 20% today
two drink companies just different drink
companies right man those stocks
absolutely got pounded Celsius beverage
I'm getting closer and closer to buying
the stock it's now down 59% in the past
12 weeks absolutely historic fall and a
lot of these drink related companies you
look at Starbucks as well they're just
going through some pretty tough times in
regards to their business model monster
the growth rates I saw in regards to
monsters earnings that was some of the
weakest growth I've ever seen from
Monster I used to be a shareholder of
that company about probably over a
decade ago now but uh man you know some
rough growth rates out for some of those
companies but today's video we're really
focusing on two stocks okay these are
two higher risk but like insane High
reward stocks that are looking very very
good these companies numbers are coming
around very nicely and uh we'll speak
about the numbers that have come out
here after the belt we'll we'll talk
about what's the potential upside for
these particular stocks which there's
any amount of upside for these
particular stocks and so we're going to
get into all that in this video here
today I put this together for you guys
about uh what was that four or five days
ago I think I put that together Sunday
night late Sunday night seven things to
do when stocks are crashing it's a
really important kind of checklist
Workshop whatever you want to call it on
what you need to do when you are seeing
stocks out there crashing is unfortunate
cuz Monday a lot of people got wrecked a
lot of retail was out there selling
stocks at insanely poor pricing and uh
you know when the vix was high like
there's all these like correlations I
would have told you not to be selling in
the morning on Monday morning but people
just were panicking right and so make
sure you guys get access to that it's
absolutely free it's pin comment down
there before you leave today's video
either pause the video grab it now or
grab it at the end of this video but
make sure you get that one okay cuz I'm
shouting that out this week and I want
you guys to all have access to that okay
all right so the first of these two
stocks is The Honest Company this
company's been on a comeback and the
comeback continues okay it's up 8% after
hours don't be surprised if it's up a
whole lot more than 8% to tomorrow
here's a deal with honest okay I before
I even got to the numbers I already knew
it was going to be great because I just
saw the headlines and I'm like what
raising full year year outlook saw
achieved a record Revenue up 10% first
off analysts were at you know what
analysts were expecting the company to
grow revenues for this quarter 3% 3% the
company comes in with 10% I was like oh
baby improved profitability with gross
margin of
38% a
1,120 basis point increase
year-over-year I call this management
team and caros specifically The
Magicians because I've never seen a
turnaround happen this rapidly in a
consumer uh goods company like like this
this is
incredible they raised their full year
2024 revenue and adjusted eida Outlook
phenomenal now in terms of their income
statement here they went from $84
million in Revenue to 93 m of Revenue
cost of Revenue went down for the
company down for the company how do you
increase your Revenue that much in your
cost of Revenue goes down like that's
I'm telling you this is stuff that
almost never happens incredible when
from $61 million cost of Revenue down to
$57 million gross profit exploded to $35
million from $22 million in the same
quarter last year selling General
administrative was a little trouble spot
for the company that was up about $1.4
million year-over-year marketing has
spend the they are spending quite a bit
more on marketing about $1.3 million
more on marketing there research and
development R&D 1.7 million versus about
1.6 million same quarter last year so
total operating expenses went to 39.6
million from 36.2 million operating loss
was $4 million versus over $13 million
in the same quarter last year and as far
as uh basic and diluted EPS 4C loss
versus 14 C this is the highest grade I
could give to a company that loses money
on the bottom line like that's that's
that's as good as it gets when it comes
to a company that has a net loss on it
right now company also ended the quarter
with $37 million in cash and cash
equivalence and $19 million increase
from this point last year the company
has no debt on the balance sheet that
makes me sleep well at night no debt and
all that cash let's freaking go and this
is a small market cap company so 37 mil
is a large number as far as the Outlook
goes they raise their Outlook so Revenue
now they're talking about mid to high
single digit percentage Revenue growth
before they were talking about low to
mid single digit so low to mid single
digit that's kind of like thinking like
2 to 7 perish range right and as far as
adjust eidon now they talking about 15
to 18 million before they were talking
about positive low single digit to Mid
single digit range that's like a 2 to 7
million so huge huge increase in
adjusted eidal now in terms of adjusted
eidal this is important to look at right
because you see the company has a net
loss of $4 million it's not really what
it looks like and here's why they had
stock-based compensation in the quarter
of $8.9 million now stock based
compensation you dilute shareholder
value a little bit but that's a non-cash
expense for the company it's not like
that's a cash expense where money's got
to come out of pocket so if you're
wondering how's this company's cash
balance keep going up and they have no
debt right these are the sorts of things
that are very important to understand
like this is a non-cash expense when it
comes to stock-based compensation right
also CEO and founder and C co uh trans
transition expense that was about
$700,000 that's more of a one office
type expense so they adjusted eBid was
actually positive by about $7.5 million
year-over-year versus a $4 million
adjusted eBid loss in the same quarter
last year so the fundamentals of this
company are increasing rapidly okay the
management team has done I mean it's
incredible it's incredible how fast this
management team has taken this company
from like it was like man they may be a
bankruptcy candidate the stock got all
the way down to a dollar right and how
fast theyve switched things in a matter
of like a year and a half like in a year
and a half like it's like a whole
different company now at this point in
time it's a whole different company and
uh that's why I call them The Magicians
it's incredible how fast they turn the
ship around I mean my gosh it goes to
show you the importance of a management
team a bad management team can
completely ruin a company a great
management team can completely transform
a company and that's what we have going
on now the other thing you got to
understand about this company is they're
about to flip to net income every
quarter in my opinion they're about to
do it and if you look here like we can
look at the overall 6 month Trend okay
so if you take a peak here they had net
loss of about $32 million for 6 month at
this point last year now they brought
that down to $5.4 million so this
company's on the verge of going to net
income and then they're going to become
net income positive like every single
quarter unless there's some freak like
onetime expense or something like that
which is very very exciting because then
we're talking about the companies just
going to start cash flowing bigger and
bigger and bigger and then what they do
with that cash flow is up to them are
they going to start to buy back shares
right let's say the Stock's still in the
single digits will they announce a big
share buyback will they buy out other
brands will they expand into more
opportunities with their own business
and continue to reinvest into R&D
there's a lot of things they can do with
that money will they pay a dividend I
don't think they're going to do that
will they just stack cash right
treasuries are still yielding a lot so
maybe stack cash and and just you know
cuz I I could see how honest could get
to $50 million if not $100 million plus
in cash and cash equivalence very
quickly here and so when I think about
the bottom line starting to flip over to
that positive net income right and then
once again stock based compensation the
only thing that's been hurting them
really as far as their bottom line rate
that's a non-cash expense so when I look
at honest here this is about to become a
cash flow machine as a company which is
very very exciting cuz like I said like
a year year and a half ago we never
thought this was possible I mean
absolutely incredible for this company
now additionally what makes the stock so
compelling here and why is there's so
much insane amount of upside if you
compare them to you would have to
compare this company to somebody like a
Proctor and Gamble right a Proctor and
Gamble is a very profitable company
honestly is just starting to you know
flip over that profitability side right
so when I look at you can't compare them
as far as PE ratios or forward PE ratios
or twoe out forward PE ratios you got to
compare them on a price to sales ratio
right and as far as a price to sales
ratio go the TR 12 month price to sales
ratio and if you look at Ford price
sales ratio I mean Proctor gamble is
about 5x 5x so onus has about 5x upside
which means $3 to $15 just getting to
the the P the price to sales ratio that
Proctor and Gamble's at here okay now
keep in mind honest has way better
growth than somebody like a Proctor and
Gamble so technically they should trade
at a much richer price to sales ratio
than somebody like a Proctor and Gamble
right and so what we're going to see
here is a massive move up in the stock
as a company gets more and more
profitable because then people are going
to look at and they're going to say oh
my gosh look at the growth of this
company they're profitable now and their
price to sales ratio is so far beneath a
pier like a Proctor and Gamble overall
whose growth is very very slow right now
in my opinion if this company stays on
track if Carl and management team keep
everything on track the numbers keep
getting better and better and better you
see that Revenue keep going up you see
the the just EBA do keep going up you
see the net income start to be positive
quarter in and quarter out right which I
think we should get to very soon here
and the company just becomes a cash flow
machine which which I think they could
become in a very short amount of time I
think we're going to $5 plus in the next
few months not the next few years in the
next few months will'll be in $5 plus
you'll see on the stock and I do believe
the stock will be $10 to $20 likely at
some point in 2025 I think that's where
the stock will kind of be range Bound in
2025 $10 kind of at the low end $20 kind
of at the high end overall you're going
to see in my opinion a massive move up
now if the the fundamentals got off
track if Carla and the team like all
this momentum they have going that
stopped and gross margin started going
down and revenue started going down then
then obviously these prices aren't going
to happen but as long as they keep what
is going on Gross margins getting better
right the bottom line getting better the
revenue getting better this is what's
going to happen in the next year and a
half in my opinion like that's what
we're going to see play out and then
from there we'll see right 2026 and
beyond that that really depends on where
do they want to take Hest are they going
to try to become a giant Corporation
right are they going to try to get uh a
buyout right cuz you know you could sell
off this company let's say let's say at
the end of 2025 going into 2026 a
company's profitable every single
quarter right they're bringing in you
know $50 million $100 million plus in
cash flow a year right and it just keeps
building the revenue keeps going up they
got they keep attracting more and more
market share could be a very interesting
acquisition Target for maybe a Kimberly
Clark maybe a Proctor and Gamble lot
these other brands that you know the the
growth rates aren't the best for those
sorts of companies and are looking for
that sort of growth opportunity right
remember Carly used to work for Annie's
anies ended up being acquired by General
Mills over time anies used to be a
company I owned back in the day they did
a lot of business with Whole Foods so
and then Carlo's experience coming from
Amazon I don't know we we'll see what
happens here but uh what what a change
man I I could not be a happier
shareholder of this company it's it's a
miracle man I I'll just be honest with
you guys it's a miracle so that's stock
number one I mean incredible upside here
and it's going to be a a lot of fun as
long as I keep this going woo
it's going to be a lot of fun here over
the next year and a half next stock up
here man this stock maybe was even more
troubled but we've gotten we've gotten
past the hardest part now and from here
it just gets better and better and
better and this stock is the planet the
planet's a 41 Cent stock here today
there's big changes ongoing before I
even get into the numbers the numbers
came out after the belt I'm going to
show you the big changes that are going
on really at the the Las Vegas
Superstore here it's very important you
understand what's going on there cuz
they made some major changes and it's
completely changing how much traffic has
coming to that location okay now this
was a stock that used to be an under $1
stock it went all the way up to seven
bucks at the height of the hype cycle in
like late 2020 in early 2021 with the
stimulus and all that right and
obviously today it's back to under
dollar stock okay so you understand this
Las Vegas Superstore location if you
never been they've got a ton of room to
expand inside that location and they
basically weren't using utilizing a lot
of the space well that's changed okay so
I went here this is probably 2 weeks ago
or so I went to inside the actual store
hadn't been a long time and I was blown
away by what I saw I was like oh my gosh
like there there they've made major
changes so now they have a tattoo shop
in there right that has all different
pricing on tattoos everything from like
10 bucks to $400 tattoos okay and this
place was busy when we went I think this
is like a Friday night or Saturday night
we went that particular night right and
uh bunch of people there's like three
chairs everybody's getting tattoos bunch
of people waiting to get tattoos and
whatnot and that's one of those things
you look at and it's like are they going
to make a ton of money off of a tattoo
business no but the bottom line is this
attracts a ton of foot traffic into the
planet which is what it's all about you
want to get more and more foot traffic
and have more more things to sell people
in your Superstore right it's a Las
Vegas Superstore they call it you got to
do more than just have Jack Jackson for
people to buy when they're there right
they now have this club Lounge open as
well in addition with the bar in the
kind of like restaurant space as well
which is pretty exciting opportunity so
just another thing to drive traffic they
still have the same setup they've always
had in terms of kind of their machinery
and their brands and all those sorts of
things right the Superstores is bigger
than it's ever been it's incredible the
size of that Superstore they could do
they could do so much volume now at that
store I mean literally like it's
basically like an unlimited amount of
volume they could do there like there's
no there's nowhere you're going to find
a Superstore that big when it comes to
this particular space right now this is
really exciting opportunity here why are
all these people in line here so what
this is this is a consumption Lounge so
basically you go in there and you kind
of get a menu like you would going to a
restaurant or a bar or something like
that right and you could order different
products Jack Jackson products that is
okay and uh you get to enjoy them in
there now when I first heard about this
I thought it was you were going to buy
stuff at the superstore and then you
were going to go inside the consumption
lounge and then use that product no
that's not how it works it's like more
of a bar or restaurant type experience
where you go in there and then you order
this and that and this and that right
and um and then you pay and then you
leave eventually so that's something
that I I've seen that what twice now in
every time I go by there there's always
a line it's always busy there so that's
very very good to see now they have all
this they're supposed to open up this
like exhibition a Jack Jackson related
exhibition which I'm sure is going to
drive a bunch more traffic they doing
some sort of like filming of a show or
something over here but this is a ton
more space that they can open up more
more and more stuff for which is
phenomenal for this company and so that
that Las Vegas Superstore is going to
get busier and busier and busier and be
more and more of an attraction overall
for a lot of different reasons and then
this is going to help the store sales in
the end right now I additionally I was
closed to store last Thursday okay and I
took this picture from overhead from the
store check this out look at how busy it
is it is incredibly bus busy I mean the
Ubers the taxis the parking lot I mean
this is like considering how bad the
consumer has been hit the last few years
you wouldn't think the planet would be
able to do business like
this it's they're doing business they're
attracting people again just yesterday
on Wednesday afternoon I took this
picture as well on a Wednesday afternoon
you got to understand the strip is like
the most dead usually kind of like
Monday Tuesday Wednesday right and then
people start coming in again Thursday
Friday Saturday Sunday that's like busy
busy times especially for the type of
people that would be going to the planet
right any Monday Tuesday Wednesday the
only people that are there for the most
part are more like convention type
business right Thursday Friday Saturday
Sunday that's that's the mass is coming
in right and that's Planet so this on a
Wednesday afternoon I'm like this is
busy for the planet on a Wednesday
afternoon that looks pretty dang good to
me so there's fundamental changes going
on for their big dog store their Las
Vegas Superstore which is very very good
now in regards to the revenues this
company came in at 31 .1 million that
was up from $25.8 million in the same
quarter last year that was an increase
of over
20% and they said a month and a half of
revenue from Florida helped and then the
Las Vegas Superstore helped and then the
Illinois store also helped gross profit
increased to $15.8 million compared to
$1.9 million in the same quarter last
year the Improvement in gross margin was
driven by lower cost of cultivation
through full U utilization of cultivate
cultiv cultivation facilities and better
yields along with higher portion of
sales from owned Brands right Planet
owns a bunch of their own Brands and the
margins on that are pretty pretty good
let's just call it versus selling
somebody else's product right net loss
for the company was a one trouble spot
came in 8.1 mil versus for mil uh keep
in mind SBC and some other things kind
of went into that right some other
non-cash expenses adjusted eida came in
at 3.2 mil as compared with a just eida
at 2.8 mil just iida was higher due to
better gross margin performance strong
cost controls and increased operating
leverage so just eaal actually up for
the company year-over-year now the other
thing is I'm expecting these companies
numbers next quarter to be really really
good and then kind of moving in the
future here cash came in at 26.7 mil
versus 11.8 mil total assets came in at
242 mil versus 151 mil total liabilities
came in 84 mil versus 44 mil so total
liabilities was up about $40 million
roughly year-over-year while total
assets was up about $90 million
year-over-year I will take that I will
gladly gladly take that okay so now I
haven't been on the conference call yet
I'm going to listen to that likely
tonight my guess is the guidance is
going to be really good and my guess is
this the CEOs of the company are going
to sound the most optimistic they've
been in my guess is probably years just
to be quite Frank I think this will be
the the most optimistic the CEOs and the
CFO have been in years it's been a
really Downer Market the last several
years for this company and for anybody
really in this space and the reason was
the consumer got hit right uh
Las Vegas gave a lot of licenses to open
up stores a lot of those stores have
faced a lot of troubles it hurt margins
in a massive way and it was just a down
spiraling cycle for the longest time
right and that's over gross margins are
starting to pick up now and uh the
business is trending better and better
and better and also the planet's just
executing on a higher level so I'm
expecting a really good conference call
we'll see what happens there so we put
it to you kind of like this 2022 through
2023 the planet was kind in near the eye
of the hurricane man it was violent it
was bad they were getting absolutely
wrecked and it was an ugly situation and
we all know that and that's why that
stock trades under 50 cents today and
under a dollar right and then the way
you kind of view it as 2024 we're kind
of on the the outskirts of the hurricane
now at this point time you can kind of
see the Sun a little bit but you're kind
of still being hit by a little bit of
rain but it's not that bad anymore right
and the way I kind of view this in 2025
and Beyond is the Hurricane's long gone
it's sunny days ahead and so really
happy with execution now where do I see
upside regards to
Planet oh gosh I mean it's impossible to
really measure how much upside there is
for the planet right it's too early for
this company to really say like it's $3
$7 $10 $20 $30 $50 $100 it's too early
days one we don't know when this company
flips back over to net income which
should be sooner rather than later we
don't know how much net income right now
right could be $10 million a quarter
could be $20 million a quarter could be
$50 million a quarter could be 100 like
we don't know where this company's going
to range at as far as net income goes
over time right additionally we don't
know how many we don't know really how
big the Florida opportunity is the
management team when they talk about the
Florida opportunity they talk about this
being like the biggest of the big
opportunities but you got to see the
numbers right the Las Vegas Superstore
looks like better than I've ever seen it
by far and away and so it looks like the
Superstore numbers are going to come
back insanely strong over this next
couple years regardless of consumer
environment right uh the Orange County
store is still the Orange County store
and that's a whole mess but the only
good thing with the Orange County store
is I feel like it can only get better it
can't get worse the Illinois store
sounds like it's off to a decent start
here and so the truth is and we don't
know what's going to happen with
legislation we don't know what's going
to happen with the government in regards
to this this particular product right so
it's really an unlimited upside story I
just know it's a lot higher than where
we're at right now right but you can't
really put a dollar amount on it cuz
it's too early a days it's way too early
a days so very very exciting in regards
to Planet I hope everything continues to
Trend there it's a small position for me
relative right but it is a position
nonetheless and um I hope someday I'm
able to look back and be like wow that
one maybe thousands of percent of gain
we'll see we'll see uh time will tell
right now next thing I want to talk
about here is very important is are you
Diversified because a lot of folks in
the market they're not very well
Diversified so they might own two stocks
three stocks that's fine if you have
like a, bucks in the market or a couple
thousand but if you have more
substantial amounts of money in the
market 30,000 50,000 100,000 whatever
right you need to be Diversified across
10 15 20 stocks one of the things that
gets me through the bare markets and out
to the other side is diversification I
own growth stocks I own value stocks I
own dividend stocks right and so certain
time periods no one wants to touch
growth stocks I also own spec stocks
right that's a fourth category and so
when when no one wants to own growth
stocks well usually values and divs hold
up pretty darn well right there's other
time periods where no one wants a piece
of value in dividend stocks right you
could say a lot of that over the past
kind of year and a half a lot of value
and dividend stocks have sucked just to
put it quite Frank a lot of value and
dividend stocks have sucked the worst
the last year and a half to two years
right meanwhile growth stocks look at
big Tech they're like the best right for
the past we can call two years it's been
tremendous if you own meta and Nvidia
and all these sorts of stocks the last
couple years it's been phenomenal right
if you own a lot of these value and
dividend plays if you own Nike and
Starbucks last two years it sucked right
now those stocks might be an opportunity
now to be buying right and might have a
tremendous next couple years but they
weren't the plays the last couple years
right spec stocks have their time to
shine spec stocks have their time to
shine when the Russell 2000 gets rolling
and when the market just goes risk on in
general so if we're going to get into a
dynamic where the Russell 2000 starts
flying right stocks like Hest are going
to perform tremendous in that stocks
like the planet are going to perform
tremendous in that environment stocks
like Sofi are going to perform
tremendous in that environment okay so
think about those type of stocks a lot
of these under $10 stocks right now are
stocks that if we get into a real risk
on environment if the Russell 2000 goes
to the races those stocks are going to
fly right but being Diversified keeps
you through all these different markets
and out to the other side right if
you're too heavy in just one or two
stocks you're screwed if things don't
quite go your your way and that's more
what we call gambling activity an
investor stays Diversified overall look
at somebody like a Warren Buffett is
Warren Buffett you know just all in one
business line no look at Warren Buffett
look at how many companies his company
owns right and and then look at how many
stocks his company owns it's
unbelievable think about Jeff basos and
Amazon think about how many different
businesses Amazon's in is Amazon just an
e-commerce business no it's also a
Fulfillment company it's also a
transportation company right it's also a
streaming company it's also a membership
model company it's also the backbone of
the internet company the backbone of
company's company right it's also a
grocery store like you look at you go
through it and it's like wow that's a
behemoth of so many different business
lines and so the same way you you know
these guys would think about running
their businesses right not just being
all in what if what if Jeff Bezos had
just thought I'm just going to be a
bookstore forever right you think he
would be on the the the top richest
people in the world's lifts no of course
not what if Warren Buffett had just
stayed in you know back in the day when
they bought Burkshire ha that way if I
recall it was actually a textile company
they were making like shirts and shorts
and stuff like that what if they just
stayed that they like obviously Warren
Buffett wouldn't be the rich man that he
is today right and so there's a little
Foo for thought in regards to you make
sure you're stay Diversified across your
portfolio own 10 20 stocks or so right
and the bigger the portfolio the more
stocks you should likely own the longer
you've been investing likely the more
stock you should own as well because you
are going to hold stocks over years and
years and years right and then you might
want to start a new position in a
company so you you know naturally just
kind of goes up a little bit so as far
as me personally I probably own 20
stocks if not a little over 20 stocks
right I got
obviously significant amount of money in
the market right and so yeah always keep
that stuff in mind and especially when
you get on to more risk on markets CU I
think it's easy for a lot of people to
say I'll just own this stock or that
stock or I'm just going all in this
stock um and works for a little bit and
then doesn't work and then you end up
absolutely screwed right and uh that's
that's no fun right stay Diversified in
the market guys it pays off in the end
right there's so many great companies if
you if you think there's only one or two
great stocks in the market that are
going to do great over the next few
years you're not looking hard enough
there's so many companies I know off top
of my head probably 20 30 40 stocks that
are going to do tremendous over this
next 5 years including probably 10
stocks that I think are going to 5x or
10x over this next you know five years
or so so keep in mind there's a lot of
great opportunities in the market don't
get stuck into just one opportunity a
lot of times people just kind of get
blinded into just one stock or something
like that there's so much opportunity
out here folks I'm I've been actively
buying recently like 10 different stocks
because there's at least 10 different
opportunities I love the risk reward
profiles stay Diversified overall folks
very very important in this game okay
all if you didn't grab it already make
sure you go down the pin comment down
there grab that seven things to do when
stocks are crashing uh Workshop there
that's going to help you out
tremendously okay all right guys much
love as always and have a great day
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