Equator Beverage Company (MOJO) filed their Q3 8-K earlier this month showing record GAAP earnings. I have been an owner for a couple years now and the stock has been very volatile and illiquid as seen below.

As a reminder, MOJO sells coconut water products with my favorite being the energy sparkling blood orange. The chocolate coconut water is new and I have yet to try but will be ordering as soon as I hit ‘publish’.

Before we go any further, let’s take a quick look at a snapshot of where things stand today.

MOJO is still trading just under a $10 million market cap despite turning profitable in 2025 and accelerating that trend in 2025. We’ll get into that later.

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Income Statement

Income reported for the quarter grew 27% YoY in what has been their seasonally strongest quarter. And not at the expense of profitability either.

On an operating income basis, this was their best quarter ever. I’m looking at operating income because their is a lot of noise in net income this year. Q1 ‘26 had a large tariff refund buried in ‘other income’ while Q2 has a very, very large tax benefit.

Revenue can be choppy but the quarterly trends are clear - up and to the right. I’m adding the annual chart right below this. The annual chart is going to be a thing of beauty once updated for Q4. A nice, hockey stick shape just in time for winter.

Gross margins for 2026 (not shown above) are at 52.4%. A record high. Things seem to be clicking on all cylinders right now.

Balance Sheet

This is easily one of the most conservatively managed growth companies you will ever see. And for good reason. Majority of growth co’s run out of cash and burn out. This is not one of those companies.

This is now a debt-free company with the only liabilities being accounts payable and accrued expenses. Their current ratio now sits at 7.1x which is extremely high. Unusually high. It may be time to start spending on some growth at that level.

For those not familiar, the current ratio is a financial liquidity metric that measures a company's ability to cover its short-term obligations (debts and bills due within one year) using its short-term assets. It is also known as the working capital ratio.

Cash from operating activities has been cash generative for the last five quarters in a row and eight out of the last ten (we don’t have the official 10-Q yet so I’m going off my own calculations for this quarter).

Summary

While we await the arrival of their 10-Q filing for the quarter, I’m ready to say that this is a blowout quarter for their standards. Record quarterly revenue. Check. Record quarterly net income. Check. All long-term debts paid off.

Q4 is typically weaker than Q3 so I’m not going to say we should see blowout earnings again next quarter but things are certainly on the upward trajectory.

Let’s talk valuation for a sec. If you’re a book value guy, this (4.6x) is too high for you. This is not a value investment. Although, if you look at the P/E for the TTM then you get a lowly 7.88 which is very low for a growth company. I get a P/E of 17.06 on an operating income basis to remove unusual items. Much more in line for what it deserves.

I think of this investment as much more of a venture bet than anything. While this company is already profitable, it is still tiny and is led by an older CEO who owns over half of the company. I’ve sized this bet accordingly (aka tiny) but am excited for the ride.

Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

D-BOX Technologies

The first company I’m writing about is D-BOX Technologies. For those of you that have not heard of this company, D-BOX designs, manufactures, and commercializes haptic motion systems intended for theatrical entertainment. Aka, movie theater seating that moves.

They also sell systems for sim racing and simulation, and training customers in North and South America, Europe, Africa, Asia, and Oceania.

The main driver, however, is the movie theater seating which is overwhelmingly popular with those that have tried it.

The business model is pretty simple. They receive an instillation fee for the initial sale and then receive royalties for the use of the seats.

If you’re anything like me, you’re probably thinking “why would I want to invest in a dying industry?”
Well, that was my exact thinking when I came across this idea and boy was I wrong. Take a look at the chart below.

Dead wrong.

That’s more than a 10x from the 2024 lows for those keeping track at home.

Today, D-BOX sits at a market cap of $255 million CAD at a P/E ratio of 15. Not very expensive on the surface level even after that monster run in the stock price.

Financial Statements

Total revenues grew 35% YoY to $58 million CAD for the year ended 3/31/26. Theater sales grew 133% while sim racing and simulation declined double digits. Royalties grew 32%.

Source: June Investor Presentation

The increase in royalties was led by one of the strongest years for movie theaters since the pandemic with hits like Zootopia, Avatar: Fire and Ash, and Lilo and Stitch.

The balance sheet is rock solid. Cash is up to $17.5 million while long-term debt is miniscule.

This is a high margin business so most of the bottom line flows through to cash. Exactly what we love to see.

They also have a share repurchase agreement in place to purchase up to 10% of shares outstanding.

Current Customers

D-Box is now in four of the top ten largest movie chains in North America after expanding to Marcus Theatres last month.

I think what excites me most about this investment is that they are only in 1,201 of the more than 200,000 global movie screens. That’s less than 1%. There are 40,000 screens in North America alone.

If you don’t have one in a location near you, just wait, they’re coming.

Outlook

I expect 2026 to be an even bigger year with hits like The Odyssey, Toy Story 5, Project Hail Mary and The Super Mario Galaxy Movie already considered major successes. We still have Spider-Man: Brand New Day, Dune: Part Three and Avengers: Doomsday yet to hit theaters. I expect the amount of royalties this year to blow prior year’s out of the water.

I would expect 2027 to slow down a bit after two good years of movies but a quick search tells me next year is also expected to be a big year. Another Avengers, Shrek 5, Frozen III, The Batman Part II and The Lord of the Rings: The Hunt for Gollum are all expected to gross around $1 billion.

Summary

D-Box reports Q1 ‘27 results on Tuesday. We’ve had quite a runup and earnings are expected to be great so it would not shock me to see some near-term volatility to the downside.

However, combine the high recurring cash flows and low but expanding penetration and I think we are looking at a $1 billion market cap in the not too distant future. That would be a 4x from these levels. We’ll see.

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NameSilo Technologies

This next name should not come as a surprise to those have followed my writing for the last year as I have already covered it a couple of times and will try to keep this brief.

If you’d like a deeper dive on this name, check out my prior articles below.

What was a quick 100% gainer has turned into a more reasonable 50%ish gain and I am taking the opportunity to average up.

NameSilo reported results for the first quarter of 2026 in early June. While revenues continue to grow, net income had dropped precipitously compared to the prior year, mostly due to product development costs jumping more than $800,000.

This should be expected if you’ve been paying attention to the story. Two of their recent acquisitions, SewerVue and Reach, were both seen as opportunities that could significantly grow if provided with the requisite monetary investments.

Despite the extra investments, free cash flow was still positive even when including the acquisition of Reach to the tune of $1,070,196.

The downside to these investments, at least short-term, is that the buyback paused during the quarter in order to fund said new investments. While this is the right long-term strategy, it sure is nice to have that seemingly unlimited bid on the offer every day making that green in my account look nice.

Oh well. I trust that these are the right long-term decisions and expect this cash generating machine to bounce back soon.

Thanks for reading.

In case you missed it, here are some recent articles:

• Profitable Manufacturing Company Trading at Liquidation Value While Growing Revenue and Net Income with a 6% and Growing Dividend Yield

• What I’m Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

TL;DR

• The company trades at a market cap of $42 million while a conservative calculation puts liquidation value at $40 million

• Revenues steadily growing in single digits while gross margin, net income, and EBITDA grow in high teen to low 20%

• Trades at 1.42x book value with a fortress balance sheet

• 6% dividend yield and increasing

• Not sexy or AI related

• Maybe best of all, company is actively pursuing growth strategies in a profitable manner

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Hope everyone enjoyed the your 4th celebrations!

Last week’s major news:

• Slow, holiday shortened week

• Nasdaq and S&P finished Q2 with their biggest quarterly gains since 2020

• U.S. jobs growth disappointed with the economy only adding 57,000 jobs last month. 74,000 were expected.

The Market Rundown

Big pullback in market sentiment this week despite the S&P finishing up on the week. Everyone bulled up on tech stocks that finished the week UGLY. Fear not showing up in the VIX, however. Semis got smoked while financials, utilities, transports, industrials, and health care all breaking out. Rotation, rotation, rotation. Metals even saw a little relief as the Dollar retraced.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Mortgage Rates

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

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Stocks I’m watching

DPZ - I think Dominos is an interesting one to watch as it tries to build a base. I have sold some puts on it. Earnings July 20 and I suspect the buybacks will start up again shortly after that date.

CLRO - higher better for short

CWD - higher better for short

SDOT - watching for a bounce to short

CANF - watching for a bounce to short

LHAI - watching for a bounce to short

OXBR - watching for a bounce to short

PCLA - watching for a bounce to short

Thanks for reading.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Last week’s major news:

• Iran war was over but then it wasn’t, again

• Fed meeting results in no change in interest rates but signals a more hawkish tone with no more rate cuts and a possible rate hike projected for the rest of the year

In case you missed it, here are some recent articles:

• What I'm Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• Shelly Group Update

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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The Market Rundown

Sentiment made a bullish jump after last Monday’s gap up on “war is over” sentiment. Fast forward to tonight……guess the war might not be over. Shocking. Not.

The dollar continues to break out of a one year base which is generally not good for commodities as you can see pressure on gold, silver and even nuclear. Semis and industrials breaking out. Oil retraced almost the entire Iran war move but will probably see a spike tomorrow.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Mortgage Rates

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

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Stocks I’m Watching

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Last week’s major news:

• Futures gapping bigly tonight as the U.S. and Iran reach another “deal". Who knows how long it will last this time.

• CPI showed inflation at 4.2% in May, the highest level in three years.

• Volatile week for oil as it rose early in the week only to fall to the lowest levels since mid-April.

• Kevin Warsh will lead his first Federal Reserve meeting this week with interest rates expected to remain unchanged.

In case you missed it, here are some recent articles:

• Weekly Roundup: Life Update

• What I'm Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• Shelly Group Update

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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The Market Rundown

Markets largely unchanged on the week despite some inter week volatility. Sentiment indicators took a big step back to bearish. 10-year yields dropped but mortgage rates remained elevated and look like they want to head higher. A lot of sectors looking like they will head higher but commodities are taking it on the chin right now.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Mortgage Rates

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Stocks I’m watching

We just had maybe the craziest week in small cap land in the last 10 years with the removal of the PDT rule but I watched from the sidelines as most of the movers are Chinese scam names and I try to stay away from those widow makers these days. A lot of multi-hundred percent movers only to retrace the move by day’s end. Crazy.

ADIL/CHAI/HWH/PPCB/SDOT/SUNE - all similar. Hoping for a bounce to short into before the crowd moves on to the next hot play.

Thanks for reading.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Thanks for reading.

Some of you may have noticed I have posted very irregularly for the last two months and my goal with today’s article is to explain why.

The last couple of months have had several major life events happen all at once so I have not had time to not only publish content, but pay much attention to the markets in general.

I can feel you clenching as your prepare for me to rattle off a number of bad things that have happened in my life but I promise you it is actually the opposite. So take a deep breath.

Last fall, my fiancée was accepted into CRNA school to become a nurse anesthetist. While not a total surprise, it did mean we had to relocate our lives to La Crosse, Wisconsin (where I also attended college). Not too far away from where we were.

I just put away the last box moments ago although we still have many things left at the house to move to storage. A special thanks to the family and friends that helped us move.

In addition to moving, I felt it would be best for my stress levels and marriage (we’ll get to that) if I went back to work while we are a single income household for the next three years.

Not only are the stress levels down but I think I really underestimated how much I enjoy working with people. Trading is a very lonely game and it feels great to be back in an office setting with great people rather than trapped in the confines of my own home.

In classic me-fashion, I decided to add to the stresses of starting and a job and moving by adding some major house projects to the mix. While I am mostly organizing everything amongst various contractors, it did take a weekend of demolition to get the house ready for anything to happen. Very out of my element here. Definitely more of a desk worker.

Side note: if anyone wants a multi-billion dollar idea, here it is. Blue-collar literally anything that calls you back right away and remains in constant communication. Very low bar here but I wish I was kidding.

There are still a few more big things to do to the house before we are able to sell which is the last remaining big item.

The last major event is the biggest of them all and almost two years of planning in the making.

I got married.

I’m sure the rest of you get sick of the cliché “bEsT iNvEsTmEnT oF mY lIfE” posts like myself but I will admit, it truly is. It was a gamble planning an outdoor wedding in late May in Minnesota but the weather was absolutely perfect. A great day spent with family and friends. Easily the best day of my life. I could go on and on but I will spare you the details.

So there we have it. Started a new job, several house projects, wife started CRNA school, moved and working on some more house stuff and eventually a sale. All at once.

So, now what.

First, thank you so much to those of you who have stuck around. Each one of my readers means so much to me and I will be dropping the paid tier to $10/month temporarily for the next couple months as I try to rebuild consistency. I’m not sure how long it will stay that low so if you are waffling between joining the paid tier or not, now is your chance.

Second, back to business. Weekly roundup posts and ideas will start again next Sunday with the occasional deep dives or “What am I buying” articles. I have a couple ideas I’ve been working on recently but like I just laid out, haven’t really had the time.

Even though AI is still the hot trade, I think there are actually some really nice opportunities setting up with all the money being sucked into the AI trade.

Stay tuned and thanks for reading.

In case you missed it, here are some recent articles:

• What I’m Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• Shelly Group Update

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

Subscribe now

Last week’s major news:

• April capped a sharp V-shaped recovery, with the S&P 500 rising 10% on the month despite ongoing geopolitical uncertainty and elevated energy prices.

• The Fed held rates steady at its April 29 meeting (likely Powell’s last meeting) as policymakers navigate inflation well above the 2% target.

• U.S. GDP grew at a 2.0% annual rate in this year’s first quarter.

• Oil continues to trade in a wide range as peace talks with Iran continue to fluctuate.

In case you missed it, here are some recent articles:

• What I'm Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• Shelly Group Update

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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The Market Rundown

Stocks at all-time highs again with sentiment indicators showing everyone is bullish again. The VIX also back to normal despite the war continuing and oil fluctuating every day. Rates have also been a bit jumpy as interest rate hikes, rather than cuts, now seem more probable.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Mortgage Rates

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Stocks I’m watching

UONE - microfloat with heavy short interest that has made wild moves in the past. Will keep on my radar in case it does something disgusting.

AKAN - another microfloat that has 20x’d in the last two weeks. Not sure I have the cajones to short these micros anymore but I can’t stop watching them.

Thanks for reading.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Last week’s major news:

• S&P 500 and Nasdaq both hit all-time highs with the Nasdaq currently on a 13 day green streak

• Straight of Hormuz allegedly opens but stays closed but is also open but is also closed depending on who you ask

• Earnings season kicked off with the mega banks reporting double digit profit increases

• March producer prices rose only 0.5% MoM, much lower than the 1.1% expected

In case you missed it, here are some recent articles:

• What I'm Buying and Selling: April Edition

• What I’m Buying and Selling: March Edition

• Shelly Group Update

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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The Market Rundown

V-shaped recoveries for almost everything. Hope you didn’t panic sell. Should be another interesting week as more Iran news develops over the weekend but still no aggressive bullishness on the sentiment indicators.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Mortgage Rates

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Stocks I’m watching

EFOI - hoping for higher to short

FRMM - same as above

BBGI - microfloat so may stay away but watching just in case it does something more wild than it already has

Thanks for reading.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Welcome back to another edition of What I’m Buying and Selling. What we’ll cover today:

1. The only publicly traded dental roll-up sitting on a pile of cash

2. The new and upcoming sports hydration drink replacement to the big incumbents

3. Two of the most iconic professional sports franchises in the country at a steep discount

In case you missed it, here are some recent articles:

• What I’m Buying and Selling: March Edition

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

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Park Dental Partners, Inc. (Nasdaq: PARK)

Park Dental Partners, Inc. operates as a dental resource organization that offers business support services to dentists throughout Minnesota, Wisconsin and more recently, Arizona. The company provides various services, including clinical team members, administrative personnel, facilities and equipment to affiliated general and multi-specialty dental practitioners. It also offers general and specialty dental services, such as oral surgery, periodontics, pediatric dentistry, prosthodontics, endodontics, and orthodontics. Park Dental Partners, Inc. was founded in 1972 and is headquartered in Roseville, Minnesota.

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Last week’s major news:

• U.S. and Israel launched joint military strikes on Iran over the weekend of March 1–2, triggering a sharp risk-off move across global markets and closing the Strait of Hormuz to tanker traffic

• WTI crude oil surged 35% on the week, breaking above $90/barrel - its biggest weekly gain since oil futures trading began in 1983 - as supply disruption fears took hold

• S&P 500 closed at 6,740 (-1.33% Friday), Nasdaq closed at 22,387 (-1.59%), Dow ended at 47,501 (-0.95%), slipping into negative territory for 2026 on the week

• February nonfarm payrolls fell by 92,000 - well below consensus of 50,000 - the third job loss in five months. Healthcare shed 28,000 jobs due to a Kaiser Permanente strike, while federal government payrolls fell 10,000

• Futures traders are now pricing majority odds for the first rate cut of 2026 at the Fed’s July meeting, with stagflation concerns creeping back into the conversation as oil prices spike alongside a weakening labor market

In case you missed it, here are some recent articles:

• What I'm Buying and Selling: March Edition

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

Subscribe now

The Market Rundown:

Easy summary this week: everything looks bad. Unless you were already long oil. Markets are only down a few percentage points from highs despite everything going on. Sentiment indicators are all pretty bearish and the VIX finally broke out. Mortgage rates finally had a 5-handle before ticking back up on Friday. Energy names struggled to break higher despite the surge in oil, perhaps alluding that the peak in oil is near.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

U.S. Dollar

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Mortgage Rates

Stocks I’m watching:

BATL/TMDE/TPET - group of crappy oil companies may look to short if any shares available

EDSA - big squeeze on Friday. May look to swing short.

EPSM - higher the better

PRSO - higher the better

Thanks for reading.

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

What I Sold

Shelly Group (SLYG.DE)

Cost: $15.04 Sale Price: $54.70 Gain(loss): 264%

After holding this stock for almost three years, I decided to part ways with my entire position. Shelly reported earnings last week which I covered here:

I bought it in the summer of 2023 back when it was still called Allterco headquartered in Belgium. It was a rapidly growing DIY home electronics play trading around a $250 million market cap that I thought could make it to $1 billion market cap someday.

I was fortunate that this was one of those investments that works right from the start. I don’t think I was ever red on the position.

Laughing at myself now as I wrote “Currently up 4x on this one and have no plans to sell as they are just entering the U.S. and Asian markets. Could get much, much more exciting” in the last update and sold this morning. Funny how change in price can change sentiment.

My gut is telling me something is wrong with the receivables and lack of cash flow so I have fully exited the position. The comment made on the conference call about cash flow and dodgy answers did not sit well with me either.

While I’m not calling this a fraud, ever increasing receivables and sales without seeing improvements in cash flow are hallmarks for channel stuffing.

Channel stuffing is a deceptive, often illegal, revenue recognition scheme where a company pushes excessive inventory to distributors or retailers near the end of a reporting period to artificially inflate sales figures. It temporarily boosts revenue but causes future losses due to high returns and reduced demand.

Again, not calling this a fraud but I’ve got the same gut feeling I had with Simply Solventless Concentrates and wished I had sold that one earlier.

Here’s what that chart looks like now.

We’ll see what the future brings for this company. I’d be happy to jump back in if we see cash flows improve substantially.

As an old college professor used to say, “cash is king.”

Kraken Robotics (KRKNF/PNG.V)

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Shelly Group SE, together with its subsidiaries, engages in the internet of things business in Bulgaria, European Union, and internationally. The company is involved in the development, production, and sale of IoT devices and building automation solutions under the Shelly brand. It also offers subscriptions for cloud applications; and engages in real estate management activities. The company was founded in 2010 and is headquartered in Sofia, Bulgaria.

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Last week’s major news:

• Supreme Court struck down Trump’s broad IEEPA tariffs in a 6-3 decision - markets briefly rallied before Trump announced a new 10% global tariff under the Trade Act of 1974, keeping uncertainty front and center

• S&P 500 closed at 6,909 (+0.69% Friday), Nasdaq +0.9%, Dow ended the week just below 50,000 after a volatile ride

• Q4 GDP came in at a shocking 1.4% annualized (Wall Street expected 2.5%) - government shutdown estimated to have shaved ~1.0% off the print

• December PCE rose 0.4% MoM and 2.9% YoY - the largest annual gain since March 2024 - pushing Fed rate cut odds sharply lower

• Fed’s January FOMC minutes had a hawkish tilt; June rate cut probability fell from 85% to 57% on the week

The Market Rundown:

Quite a volatile and bifurcated week. Consumer Staples continue their historic run - up over 15% YTD, now trading at RSI readings near 80 and at valuations not seen since the 1990s. Institutional inflows into the sector are at all-time highs. Industrials and Transports are also extended, sitting roughly 3 standard deviations above their moving averages after a massive run. Meanwhile, software stocks and crypto remain an absolute bloodbath as AI disruption fears trigger what analysts are calling indiscriminate selling. Metals also look like they might be basing for another move higher and nuclear looks like it wants to go higher. Sentiment indicators lean bearish which is a good contraindicator.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Mortgage Rates

Stocks I’m watching:

Still choppy out there so not doing much. The waiting is the hardest part.

NVDA - earnings on Wednesday after the close. Stock has been basing for 7 months. Could be an explosive move higher but not entering anything until after the report. The direction this moves likely determines the overall market move in the short-term at least.

RXT - higher the better for a short after earnings. Retail driven momentum right now.

CDIO - higher the better

Thanks for reading.

In case you missed it, here are some recent articles:

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

• Sanuwave Health Announces Preliminary Q4 2025 Revenue, EQUATOR Beverage Company Reports Record 2025 Revenue

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Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Last week’s major news:

• Major indices posted weekly losses as AI disruption fears spread beyond software to logistics, real estate, financials and insurance — virtually no sector safe from the selloff

• S&P 500 down -1.5%, Nasdaq down -2.0%, Dow down -1.3% for the week; Dow lost 50,000 level after briefly holding it

• January CPI came in cooler than expected: +0.2% MoM, +2.4% YoY (vs. 0.3% and 2.5% expected), boosting rate cut bets

• January nonfarm payrolls came in much stronger than expected at 130,000 (vs. 55,000 expected), sending Treasury yields higher mid-week

• Software sector now in worst non-recessionary 12-month drawdown in 30+ years (-34%), wiping ~$2 trillion in market cap per JPMorgan

• Cisco dropped 12% on disappointing guidance; C.H. Robinson fell 14% on AI logistics fears; Pinterest crashed 18% on weak outlook

• Applied Materials surged 8%+ on strong AI-driven demand; Rivian jumped 20%+ on earnings beat and bullish delivery guidance

• AI fears spread to “old economy” names — real estate (CBRE, SL Green), logistics (CHRW), financials (Morgan Stanley), and wealth management all hit

• Apple fell 5% on reports of Siri AI delays; all “Magnificent Seven” names finished the week lower

• Markets closed Monday 2/16 for Presidents’ Day

The Market Rundown:

Rough week. AI disruption fears have now gone full contagion - no longer just software names but logistics, real estate, financials and even insurance getting hammered as the market tries to figure out who the next domino is. Thursday was an ugly session with the S&P down 1.57% and Nasdaq down 2%. The saving grace on Friday was a cooler-than-expected CPI print which revived rate cut hopes, but megacap tech still couldn’t catch a bid. The Dow lost the 50,000 level it just conquered last week. Russell 2000 actually held up better with small caps rallying 1.1% on Friday on rate cut optimism. The jobs report mid-week was a double-edged sword - strong headline number was good for the economy but pushed yields higher and rate cut expectations back. Software continues to be an absolute wasteland with IGV down 31% from highs. Semis held up relatively better thanks to Applied Materials earnings.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Mortgage Rates

Stocks I’m watching:

No big cap names on this list as I think it’s too choppy out there to pick a direction. Not many micro cap names moving this week until some heightened activity mid-day Friday. Usually I’ll see some of the micro names moving on extreme volume before the rally in the big names restarts. Let’s hope that’s the case this time.

RIME - former karaoke company with AI news that sparked a selloff in transportation on Thursday. It’s a nothingburger. Will look to short.

JDZG - may look to short but China name so careful, may avoid completely.

MLEC - may short but microfloat

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Switching gears now. I’d normally update my holdings behind a paywall but because I was busy and am a couple days late, I’m keeping this one free.

The original free article is below if you want to read the original pitch. My background is public accounting so this one is near and dear to my heart and an area I have expertise in. Please enjoy.

Kelly Partners Group Holdings Limited (KPG.AX)(KPGHF)

Kelly Partners Group Holdings Limited provides chartered accounting and other professional services to private businesses and high net worth individuals in Australia and internationally. The company operates in two segments, Accounting and Other Services. It offers accounting and taxation, corporate secretarial, outsourced CFO, audit, business structuring, bookkeeping, and other accounting related services; and financial broking, wealth management, investment office, and other non-accounting services.

Financial Results

• Revenue of $76.0m (+$11.1m, up 17.0%): Acquired revenue growth of $8.4m contributed 12.8% to revenue growth, with in year acquisitions completed to date in 1H26 contributing $4.4m and revenue from the acquisitions completed in FY25 contributing $4.0m. Revenue from organic growth contributed 4.2% of the overall growth.

• Group Underlying EBITDA pre AASB16 of $19.3m (+$1.9m, up 10.8%): Underlying EBITDA before the impact of AASB 16 of our operating business was 27.6% (1H25: 28.1%).

• Group Net Debt of $77.1m increased $21.6m or 31.9% on FY25 because of new borrowings for 1H26 in year acquisitions, fitouts and buy-ins of new and existing partners.

• Number of offices increased from 35 to 43

• Announced buyback of up to 300,000 shares

Commentary:

The serial acquirer of tax firms continues their progress by adding six more firms over the last six months. Organic growth was only modest at 5% but I think that is pretty good in today’s environment as many of the big U.S. firms continue to lay off workers.

Operating cash flows continue to steadily improve which is the important thing to watch here as that is what drives the acquisition flywheel. Overall, not a lot to talk about financial statement-wise as profitability continues to improve with revenue and long-term debt improving.

Sometimes you just have to zoom out to get the big picture…….

Other notes:

AI competition is all the rage right now and Brett believes the recent AI related selloff will provide great opportunities for KPG over the long run as it becomes cheaper to acquire new businesses.

Something very unique to KPG is the average age of their partners is only 42 years. That is a very young workforce compared to traditional CPA firms and the young workforce should make the implementation of AI tools much more seamless than what the rest of the industry may be in for.

TAM outside Australia is 10x the size of within Australia. The goal is to keep expanding within Australia but expand worldwide more quickly.

Brett made an interesting comment towards the end of the presentation stating something along the lines of “the accounting business is meant to be the core operating business while the holding company may take advantage of interesting opportunities.” That caught my ear as I believe he may be hinting at acquiring business other than accounting firms down the road. Wouldn’t be all that surprising knowing his love for Warren Buffett and Mark Leonard.

Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

Last week’s major news:

• Major indices staged strong Friday rally with Dow breaking 50,000 for first time

• S&P 500 up +1.97%, Nasdaq up +2.18%, Dow up +2.47% for the week

• January U.S. Job cuts 108k, most to start year since 2009

• Amazon earnings disappointed with $200B capex plan spooking investors on AI spending

• Tech stocks experienced mid-week sell-off on concerns over massive AI infrastructure spending and competition

• FDA intends to take action against non-FDA-approved GLP-1 drugs

Last week’s coverage universe updates:

• Hydreight Technologies Issues Fiscal 2026 Revenue Guidance

• RAVE Earnings, NameSilo Definitive Agreement, and Operational Update for Cizzle Brands

The Market Rundown:

Quite a volatile week. Consumer staples continue to rip higher while software stocks and crypto were an absolute bloodbath this week. Sentiment indicators are back to healthier levels after a nice pullback during the week. Transports and industrials also continue to have a nice breakout with both sectors being AI beneficiaries.

S&P 500

Nasdaq

VIX

Fear and Greed Index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Mortgage Rates

Stocks I’m watching:

Still very choppy out there so pretty slow trading week as I wait it out. A lot of momentum names getting crushed this week.

NVDA - tried a short on this Friday on the gap to moving averages but got stopped out pretty quickly. Stock could go either way here but holding pretty strongly as moving averages catch up. Earnings at end of the month.

VRT - power name with a cup and handle formation that looks like it could break out. Earnings on 2/11 unfortunately but will keep on watch.

SMX - may look to short but I took a huge loss on this one back in December but I am of course stubborn enough to try it again. We’ll see. Float is much higher today that it was back then.

In case you missed it, here are some recent articles:

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

• Sanuwave Health Announces Preliminary Q4 2025 Revenue, EQUATOR Beverage Company Reports Record 2025 Revenue

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

Subscribe now

Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

• Sanuwave Health Announces Preliminary Q4 2025 Revenue, EQUATOR Beverage Company Reports Record 2025 Revenue

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

Subscribe now

Read more

Hydreight Technologies Issues Fiscal 2026 Revenue Guidance of ≈ $150 Million and Provides Q1 2026 Outlook

Read more

Last week’s major news:

• Major indices were mixed with the S&P 500 slightly up and Nasdaq slightly down

• Healthcare stocks got demolished on lack of Medicare price hikes for 2027

• Kevin Warsh was nominated to replace Chairman Jerome Powell coinciding with a late week selloff

• Gold and silver set record highs before major selloffs on Friday

• Another big week in earnings on deck

Last week’s coverage universe updates:

• Cheelcare Announces Medicare and Medicaid Services Reimbursement Approval, Lakeland Fire + Safety Issues Shareholder Letter and Provides Corporate Update

• BluMetric Announces Fiscal 2025 Results, BranchOut Food Preannounces

The Market Rundown:

A lot of charts either stalling a bit or pulling back. It’s pretty choppy out there. Sentiment indicators were slightly more bullish this week although that was before a selloff Thursday and Friday so I’d imagine they are much more neutral now.

S&P 500

Nasdaq

VIX

Fear and greed index

NAAIM Exposure Tracker

AAII Investor Sentiment

10 Year Treasury Yields

Semiconductors

Transports

Industrials

Financials

Utilities

Consumer Staples

Consumer Discretionary

Health Care

Homebuilders

Gold

Silver

Oil

Nuclear

Europe

China

Emerging Markets

Bitcoin

Ethereum

Mortgage Rates

Subscribe now

Stocks I’m watching:

Closed out ALAB for a loss as it broke below moving averages late in week. Sold half of my CLS for nice gain day of earnings and still holding other half at a small loss. Wanted to derisk a bit before earnings and that played out beautifully.

Markets are very choppy right now so not looking to long anything at the moment. Will give it some time to setup.

NVDA - basing nicely over the past 6 months. Earnings not until end of February.

LITE - earnings on Tuesday so putting here as a reminder only. Obviously not touching during earnings but a nice VCP setting up.

LUNR/PL - couple space names pulling back a bit that I’m watching. Need a while to consolidate before I become interested, however.

In case you missed it, here are some recent articles:

• NameSilo Technologies: An Update after Q3 Results and Multiple Acquisitions

• Sanuwave Health Announces Preliminary Q4 2025 Revenue, EQUATOR Beverage Company Reports Record 2025 Revenue

Subscribe now and never miss a single post. If you’d like to see long-term idea alerts in real-time, consider upgrading to a paid subscription.

Subscribe now

Disclaimer: This is not a recommendation to buy or sell any securities. The content does not constitute investment advice, financial advice, or any other sort of advice. Nothing in this article should be construed as a personal recommendation to buy, sell, or hold any investment or security. All content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision solely on the content without first consulting with qualified financial advisor, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance.

BranchOut Food Delivers Record ~$14M Net Revenue, 113% YoY growth, Secures Major Retail Wins, Expands Capacity & Product Offering

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