Month: December 2024

BUY Trade Alert: Plug Power (PLUG)

Plug Power (Ticker: PLUG) has endured significant price declines over the past two years, reflecting challenges both within the company and the broader renewable energy sector. However, a recent 42.02% rally over the past three months signals renewed investor interest and the potential for recovery.

Key Considerations:

• Historical Upside Potential: If Plug Power successfully navigates current financial and regulatory challenges, there exists an extraordinary potential upside of 56,004.87% relative to its all-time high share price of $1,498.00 (achieved on 10/03/2020). This emphasizes the company’s ability to create significant value when market and operational conditions align.
• Market Opportunity: The company’s efforts to establish itself as a leader in the hydrogen economy, supported by strategic partnerships and technological innovation, underscore its long-term growth potential. Pending favourable guidance on the U.S. hydrogen tax credits could further catalyse future revenues.
• Positive Recent Momentum: A 42.02% increase over the past three months reflects improved investor sentiment and growing confidence in the company’s strategic outlook.

Risks to Consider:

• Plug Power continues to face short-term pressures, including ongoing financial losses and uncertainty around U.S. regulatory incentives.
• Broader market volatility in the renewable energy sector may create additional headwinds in the near term.

Conclusion: Despite past setbacks, Plug Power offers a compelling opportunity for high-risk, high-reward investors. With significant upside potential tied to historical highs and a rapidly evolving hydrogen economy, this stock could reward patient investors willing to weather near-term volatility.

Given the substantial potential upside and recent positive momentum, we issue a BUY recommendation on Plug Power, encouraging investors to capitalize on its current discounted valuation.

Best regards

Stuart

SPI-Club Founder

BUY Trade Alert: Stem Inc. (STEM)

Stem Inc. (Ticker: STEM) has been through a tumultuous period, with its share price declining sharply over the past two years due to market and sector-specific challenges.

However, the company operates in the rapidly expanding new energy sector, particularly in energy storage and AI-driven energy solutions, which holds massive long-term growth potential.

Key Considerations:

Significant Downside Over the Past Two Years:

• 2 Years: -96.62%
• 1 Year: -89.18%
• 6 Months: -71.61%
• 3 Months: -4.37%
• While recent performance remains subdued, the scale of prior losses may reflect overselling, presenting a possible opportunity for contrarian investors.

Historical Upside Potential:

• Stem Inc. achieved an all-time high share price of $37.00 on 01/07/2021. If the company returns to prior valuation highs, this represents an astonishing 10,081.62% upside from current levels.
• This underscores the potential for exponential returns, should market conditions and company performance align.

New Energy Sector Tailwinds:

• Growing Demand for Energy Storage: With global energy transitions accelerating, Stem’s advanced storage systems and AI-driven solutions are well-positioned to capitalize on this trend.
• Government Incentives: Policies favoring clean energy investments, particularly under frameworks like the Inflation Reduction Act, could provide a regulatory boost.

Stabilizing Trends:

• While historical price spikes have often been followed by sharp declines, recent price movements suggest reduced volatility. This may indicate a more stable base forming for potential future growth.

Risks to Consider:

Sector Volatility: The clean energy sector has faced challenges, including rising competition and supply chain disruptions. Investors should prepare for continued sector-wide volatility.

Company-Specific Issues: Stem Inc. must demonstrate improved financial performance and operational execution to regain investor confidence.

Market Sentiment: Broader market conditions and investor scepticism about speculative growth stocks could limit near-term upside.

Conclusion:

Stem Inc. operates in a high-growth sector with immense potential, but it faces significant challenges, both internal and external. For high-risk-tolerant investors, the stock offers an opportunity to capitalize on its discounted valuation, combined with extraordinary potential upside linked to its historical price peak.

Actionable Insight:

We issue a Speculative BUY recommendation on Stem Inc. (STEM) for investors with high-risk tolerance, emphasizing its discounted valuation, potential for exponential returns, and exposure to the transformative clean energy sector.

Stuart

Stuart Langan

SPI-Club Founder

The Wealth Shift Is Happening – Are You Ready?

If you read my “FinTel” you will be aware: Bitcoin, cryptocurrency, and innovative, disruptive technologies are driving what many call the largest wealth transfer in human history.

But these are more than stories. For those who’ve delved into the transformative potential of Bitcoin and emerging technologies, it’s no longer a question of if, it’s a matter of when.

The signs are everywhere. The world is entering a perfect storm, with economic challenges growing more evident by the day:

• The US dollar is weakening, weighed down by over $30 trillion in debt.
• Inflation remains unchecked, with more than 70% of circulating dollars printed in the past three years.
• Global trust is eroding, as nations explore alternatives to the dollar’s dominance.

Amid these changes, one clear solution is emerging: Bitcoin.

Governments are turning their attention to cryptocurrency, recognizing its potential and the disruption it brings. For those already involved in Bitcoin, the outlook is promising.

As demand rises, its value could reach heights previously unimaginable, a  $1 million Bitcoin is no longer a far-fetched idea.

But here’s the reality:
Not everyone will act. Many will remain tied to outdated systems, missing the opportunity to benefit from early adoption. Yet, Bitcoin is a lifeboat for those who choose to step aboard.

The question is: Where will you stand as this wealth shift accelerates?

This is your chance to lay the groundwork for generational wealth by exploring Bitcoin, cryptocurrencies, and other innovative disruptive technologies reshaping the world at an unprecedented pace.

Consider these Year-to-Date Performance figures from SPI-Club Model Portfolio Picks:

• Crypto: Bitcoin 108.80%, NFT’s 108.45%
• Innovative Disruptive Equities:
  • Artificial Intelligence: 292.52%
  • Bioscience: 122.29%
  • Digital Assets/Blockchain: 473.87%
  • Space Exploration: 400.00%
  • Tech Stocks: 746.34%
  • Nuclear Energy: 804.78%
    (and more across 20+ sectors)

The greatest wealth transfer is happening now, and this opportunity will not show itself again anytime soon.  Reach out to me if you want a private conversation.

Warmest regards,

Stuart

Stuart Langan

Founder and Editor

Our  “DIY”, “Done for YOU”, or “Done with YOU services”

Failure is not an option!

Disclaimer: SPI-Club provides information and guidance but does not offer investment advice. Please conduct your research and consult with financial professionals before making any investment decisions.

We’ve been closely tracking Qualcomm’s performance and market volatility, particularly in comparison to its peers. Despite being a technology leader, recent developments suggest it’s time to reallocate our capital to higher-growth opportunities.

Qualcomm held an investor day last week, typically a forum for companies to share exciting updates. Unfortunately, the event lacked the impactful announcements the market had hoped for.

The original investment thesis for Qualcomm revolved around its foray into processors for AI-enabled personal computers. While CEO Cristiano Amon highlighted that PC chips are “exceeding expectations,” this segment remains a small fraction of Qualcomm’s overall business.

Qualcomm’s primary revenue streams wireless semiconductors for mobile phones and intellectual property (IP) licensing, are showing signs of vulnerability.

Although every 3G, 4G, and 5G-enabled phone uses Qualcomm’s IP, its largest customer, Apple, is developing in-house wireless chips. While Apple has faced challenges in this endeavour, rumours suggest significant progress, posing a clear risk to Qualcomm’s future semiconductor sales.

Though it will retain its licensing revenue, this shift threatens Qualcomm’s current financial engine.  Adding to the challenge, NVIDIA (NVDA) delivered blockbuster quarterly results last week, growing revenue by an astonishing 94% year over year. NVIDIA’s dominance in the AI market continues to expand, with CEO Jensen Huang forecasting sustained demand for their GPUs.

Wall Street has become increasingly fixated on companies with direct exposure to the AI boom, leaving Qualcomm at a comparative disadvantage.  While Qualcomm remains a solid company with strong fundamentals, its lack of significant AI leverage and the looming threat of reduced mobile chip sales make it less compelling in the current market environment.

The stock, up 113.18% year-to-date, has pulled back significantly from its all-time high in June 2024 (42.99% above today’s levels). With institutional investors showing signs of disappointment, further downside risk remains.

At present, there are stronger opportunities for outsized returns elsewhere. Protecting gains and minimizing exposure to further downside is the prudent move.

Action to Take:

Sell Qualcomm (QCOM) at current market prices.

Warmest regards

Stuart

Stuart Langan

Founder and Editor

Our  “DIY”, “Done for YOU”, or “Done with YOU services”

Failure is not an option!

Disclaimer: SPI-Club provides information and guidance but does not offer investment advice. Please conduct your research and consult with financial professionals before making any investment decisions.

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