These 2 Stocks Will Explode Higher ‼️

Summary

The 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

00:00

📈 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.

05:02

🚀 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.

10:02

🌿 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.

15:03

🌪 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.

20:03

🛒 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.

25:05

📚 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.

Keywords

💡Wall Street

Wall Street is a term often used to represent the financial markets and the investors who participate in them. In the video's context, it refers to the fickle nature of market sentiment, which can change rapidly from one day to the next, as illustrated by the fluctuating opinions on a recession and its impact on the market.

💡Recession

A recession is a period of economic decline, typically characterized by a drop in GDP, high unemployment, and reduced consumer and business spending. In the script, the mention of a recession is tied to market fears and its potential cancellation indicates a shift in market optimism.

💡Yen carry trade

The Yen carry trade is an investment strategy where investors borrow in Japanese Yen, which typically has low-interest rates, and then invest in higher-yielding assets. The script suggests that a perceived end to this trade is an indicator of significant market shifts.

💡Stocks

Stocks, also known as shares, represent ownership interests in a company. The video discusses the performance of various stocks, emphasizing the volatility and the potential for significant gains or losses, as seen with companies like Meta and Tesla.

💡Market sentiment

Market sentiment refers to the overall attitude of investors toward a particular market or stock. The video script highlights the rapid changes in market sentiment on Wall Street, which can influence stock prices and investment decisions.

💡Gross margin

Gross margin is a company's total sales revenue minus its cost of goods sold, expressed as a percentage. The script points out an increase in gross margin as a positive sign of improved profitability for a company, which is crucial for evaluating its financial health.

💡Adjusted EBITDA

Adjusted EBITDA is a financial performance measure that excludes certain non-operational and non-cash items from the company's earnings before interest, taxes, depreciation, and amortization. The video discusses the company's improved adjusted EBITDA as an indicator of better financial performance.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk. The script emphasizes the importance of diversification to withstand market volatility and to ensure long-term stability.

💡Management team

The management team of a company is responsible for its operations and strategic direction. The video credits the management team's effectiveness for the company's turnaround, highlighting their impact on the company's performance and future prospects.

💡Consumer goods company

A consumer goods company produces and markets products that are typically used by consumers in their daily lives. The script discusses the challenges and turnaround of a consumer goods company, emphasizing the importance of effective management and market conditions.

💡Price to sales ratio

The price to sales ratio, or P/S ratio, is a valuation ratio calculated by dividing a company's market capitalization by its revenue. The video uses this ratio to compare companies and to assess the potential for a stock's price appreciation based on its relative valuation.

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