Trade Alert: Eyes On the Prize, Spacey Space, Helium 5G Network And More
Note from Cody after hours. I’m covering a little bit of my index shorts after hours right now as the markets have tanked even further. I’m still staying very cautious obviously.
Here’s the transcript from this week’s Trading With Cody Live Q&A Chat.
Two personal notes to start. I had eye surgery last week and it went great. I’m having the other eye fixed next month. Secondly, I’m headed to NYC next week for the first time since the pandemic hit. I’m going to be very careful. Now, let’s rock — ask me anything.
Q. Hi Cody. All of your 10-bagger winners in past 10 years were mostly serving a mass consumer market worldwide (AAPL, AMZN, GOOG, FB, TSLA, NFLX). It’s hard for me to see any space-revolution companies that can match this kind of performance in the next decade?
A. What about NVDA and Bitcoin and SEDG? Anyway, I don’t think you’re thinking nearly big enough about The Space Revolution. Do you remember when people first saw a Blackberry and then they were like, well, what else would we ever need to do on our phones now that we can surf the web and read our emails? And then when the actual Smart Phone/App Revolution came along, so many people couldn’t believe that there’d ever be a need for more than five apps on your phone? You have to think big. You have to realize that people can unleash (literal, in this case) universe of new ideas, applications, concepts and business models when something as big as The Smart Phone Revolution and/or The Space Revolution comes along. The Space Revolution will be a HUGE consumer business in ten years and I don’t mean simply Space Tourism. Thousands of consumer businesses will be built upon The Space Revolution over the next ten to twenty years.
Q. Hi Cody. Personally, I am a believer in VACQ and the space revolution. Looking closer at VACQ, I see little revenue now and only projected for $900M in revenue by 2027. The company is currently valued in the $4B range. So, pretty overvalued at the moment. If revenues are only supposed to hit $900M by 2027, is this a company that really can be a 5-10 bagger? Or is the company being conservative with their estimates and plan on blowing by expectations? Thanks so much for your analysis.
A. Great question. I’d suggest that the $900M by 2027 number is too low given how fast I expect Space Revolution economies to grow over the next 3-5 years. The valuation as it sits now, is probably too high, like most of the stock market. LOL.
Q. As $TSLA is in the top 5 positions of most of your readers, can you please do a fresh analysis of it with an open mindset? You turned from bear to bull on Tesla when it was hated the most. Right now, I feel our minds are biased and clouded towards TSLA. Can you take a fresh look into all the points made by short sellers and see whether there needs to be a change in our stance? I feel Elon is walking a thin line between genius and fraud and hence this question. Some of my notes- Pros: Technical disruption/advancements in SpaceX, peoples admiration for Tesla’s cars, Cybertruck coming up, recurring revenue thru FSD package- Cons: All Tesla board members are his supporters (e.g. SolarCity acquisition), pumps up when he needs it (e.g. talked about global warming right before the SolarCity acquisition), similarly pumped DogeCoin after Tesla purchased Bitcoin, a lot about solar roofs and lies (e.g. Musk accusation about whistleblower Tripp).
A. I’ll take a fresh look at the shortseller thesis for TSLA. Great idea!
Q. Binance.us, in my opinion, is really bad. I had the hardest time even logging in, getting the password wrong and trying to reset it multiple times and never getting any email reply from them. Only good thing is they have not been hacked yet, I think. And that’s the problem with Crypto… no single exchange has all the coins. I’m starting to dip my toes in the crypto world. How many exchanges do you more experienced crypto investors usually have? I have a few: Coinbase, PayPal, Binance.us, and a couple more that I have an account in but don’t use it, or it was hacked and is dysfunctional now. I use Coinbase Pro now, but will need Binance.us for Cody’s crypto pick. I also have Bitmart, which a number of us used to buy some Safemoon coin a while back.
A. Be careful with your money. The exchanges and wallets at all of these not named Coinbase are not as safe as you think and Coinbase isn’t impervious to hacking and other risks too.
Q. You said in the subscriber email that you ordered or bought this 5G thingy. How much did it cost and what is the return like? How does it work in your ranch in the middle of nowhere?
A. I put in a $100 deposit to pre-order that 5G thingy. I won’t get it for a few more weeks at least. Not sure how much it will cost, but I think I remember it being about $1000 per 5G node.
Q. With all the 9000 cryptos out there, how do you do your research in finding potential opportunities? What are some of the criteria you use to decide if its a viable risk?
A. I’m pretty sure most of the 9000 cryptos are either frauds or terrible ideas that will never go mainstream. I mostly just wait for people I respect to suggest I look at a crypto before I do, as that’s what happened with Helium HNT. Most cryptos I look at seem to be silly and/or fraudulent almost immediately when I look under the hood and I don’t have to dig far to decide not to mess with most cryptos.
Q. I emailed Renji Bijoy with a question about being able to compete with FB & Microsoft and this was his response, “Our partners (Facebook & Microsoft) won’t be able to compete with us because they refuse to build cross-headset apps (example: Apple’s FaceTime vs Zoom).” What is your response to the competition IMMERSED faces delivering the product? Thanks.
A. Like I said from the start, it’s going to be tough for Immersed to out compete the big boys but that their open cross-platform architecture enables them to have a decent chance at pulling it off.
Q. Hi Cody, APP is a new IPO (similar to U and RBLX). My son is a high-level executive there. Please take a look if you can.
A. Congrats and I will take a look right now. Looks like an interesting company and I like what I see except for the valuation at 10x next year’s sales estimates assuming a lot of growth this year and next. I added it to my screens to keep an eye on it.
Q. Cody, hope your family is doing well! Will you be able to send a latest positions update soon?
A. Yes, I’ll do it when I get back from NYC.
Q. Are you having LASIK eye surgery?
A. I had serious enough issues that they replaced my whole lens. ‘
Q. Hi Cody, good luck with your upcoming eye surgery! As requests for position updates are pretty common during our weekly chats, might it be easier for you to simply maintain an ongoing chart that tracks positions, dates recommended, dates closed under the “Latest Position” heading of this website? Doing this would allow you to simply make updates to the chart and would avoid all the questions around “when did this alert go out?” And on the subscriber side, it would make it easier to find Cody recommendations without pouring through weeks of Cody emails.
A. Sigh, yes, but how am I supposed to find the time for me and my people to work on that when we can’t even find the time to do the Latest Positions write ups! Sorry.
I leave you with this pic I took of a cool lizard on a very hot 101 degree day at the Valley of Fires last week with my daughter. Be cool as this lizard and you’ll do fine in the markets.
Ok, folks, I’m going to have a rare week day lunch with my beautiful wife. Have a great weekend.
