We Are So Back
Posted November 11, 2024
Chris Cimorelli
Chris Campbell is taking a much deserved break this week, mostly likely globetrotting to some faraway, exotic locale that we’d both be jealous of. Or, idk, maybe Ohio.
Me? I couldn’t imagine taking time off this week. I’m making too much freaking money.
I don’t know about you, but I’m personally enjoying my best week since November 2020.
Still, I have a bit of a difficult task this week.
This week, it’s my job to do my absolute darndest to get you excited about something other than crypto.
It’s a tall order.
Bitcoin is ripping to one new high after the next.
Polymarket, the online betting platform that predicted Trump’s historic win last week, is now saying there’s a 50-50 chance Bitcoin hits $100,000 by the end of the year.
And while I’m making an absolute fortune in crypto right now – and think it’s still one of the best trades to make as we enter 2025…
I think investors who are trying to get filthy rich next year would be remiss if they ignored an even bigger opportunity unfolding inside of the regular ol’ stock market.
Stocks Are So 2024 Right? WRONG!
I’ve been predicting for a few months that we were about to enter 2020 and 2021 territory again.
You know, that crazy period when stocks would literally double in price overnight.
I know, I know. Cryptos can do the same thing.
What you probably didn’t know is that there are multiple stocks that have been making crypto-like returns for the last year now.
For example…
If you had to guess the best stock of the last year, what would you go with?
Chances are, you’d pick one of the popular AI names…
Like Nvidia, which is up another 200% year-to-date…
Or Palantir Technologies, which is up even more on its recent inclusion into the S&P 500.
Or perhaps MicroStrategy, the popular Bitcoin proxy that is up over 500% from a year ago.
Except, none of these stocks come anywhere close.
The best stock of the past year is up almost 6,000%.
And what’s even more shocking, it is still a tiny, miniature small cap stock you have probably never heard of.
It’s Not the Size That Counts
Again, I would bet money that 99.99% of you have never heard of this stock.
It’s call GeneDx. It was one of the biggest losers during the last bear market.
From February 2021 to November of last year, the stock quite literally dropped 99.99%.
No, that’s not a typo.
Over the last year? It’s up 5,883%.
That’s no typo either.
It’s without a doubt the greatest comeback story in the history of the stock market.
GeneDx is beginning to emerge as a leader in the genomics space.
But before its epic turnaround, the company was burning through so much cash it was losing $90 million per quarter and operated at a (get this) negative 833% gross margin.
So it was basically spending $9 for every $1 it made in sales.
Today? The company just posted its first quarterly profit on $76.6 million in revenue.
The crazy part – the company is barely worth $2 billion today. So it’s still a teeny, tiny small cap. Which means at its cheapest valuation, it was worth about $30 million.
Here’s another one…
Have you heard of Sezzle? It’s down 5% today. And it’s still up almost 4,000% on the one year chart.
The damn thing is up 160% in the last month alone.
It’s one of those “buy now, pay later” companies that gives you the option to pay everything now … or pay everything in 4 interest-free payments over six weeks.
How the heck does this company make money?
Well, it makes money from retailers who use it as a payment option on their order forms. Sezzle charges the seller 6% per transaction. And of course, the company also makes money from late fees and the inevitable interest accrued from customers who don’t pay everything back within 6 weeks.
And apparently, the company is making a ton of money. Third quarter revenue of $41 million was up 71% year-over-year. The company’s gross margin is over 50%. And last quarter it facilitated over 450 million purchases.
Meltup = Microcap Madness
Sezzle was another one of these companies that was just a tiny microcap stock but a year ago.
Another one you might have heard of is NuScale Power, which has the only government-approved designed for a “small modular reactor,” or SMR – which is basically a smaller, more advanced nuclear reactor. It was a $500 million microcap just a year ago. It’s worth over $5 billion today.
My point is, there are several stocks that have gone up 1,000% or more in the last year alone.
And I’m predicting we’ll see many more of these gains as we prepare to enter 2025.
You should know, however, that these types of gains are really only possible in the most misunderstood and least-investigated group of stocks – microcaps.
And it just so happens to be James Altucher and I’s favorite part of the stock market.
One of them was up 75% just on Friday on a massive earnings beat. This company, despite being so small, was strategically positioned as a leader in Big Data – to the point where all the big AI firms were coming to them to get data for their large language models.
It’s weird to think that a small stock could be a dominant player in its field, but it happens all the time.
Especially in times like now when people have been so focused on the BIGGEST stocks, like Nvidia, that they forgot there are 8,000 other stocks in the market (most of them in the microcap space).
That stock, by the way, has now more than doubled in the little more than 3 months since recommended it.
Two more are in within spitting distance of 100% gains. And our average position is up almost 30%, compared to the S&P 500’s milder 10% since we launched the service in July.
So, our readers are already sitting on some pretty respectable returns since we launched this service three months ago.
But this is still fairly early. I’d say we’re maybe in the third inning of the microcap bull market.
In the last microcap bull run, I scored a gain of 2,048% on my top stock. And it only took about eight months.
I don’t say this to brag. I say it to offer proof to this notion that 1,000%+ gains in the next year really are possible.