Founder & CEO @7investing. I find the stock market's best opportunities. @UTaustin ChE @Rice_Biz MBA @themotleyfool Advisor @chevron VC Go @Saints!
Houston, TX
Joined January 2015
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I came away from MIT’s #EmTechFuture conference last week with four key investing takeaways:
1) World Models are becoming more popular than Large Language Models (at 0:21 in the video)
Move over GPT, Microsoft $MSFT and others are developing new AI models to better serve drug developers.
2) Human-Computer Interfaces are gaining traction in medical care (at 1:04)
Keep an eye on the new field of circulatronics, and how Nike $NKE is really stepping things up in footwear.
3) Quantum Computing research is placing more concentrated bets (at 2:10)
Google $GOOGL is pushing in its chips specifically on superconducting and neutral atom technology.
4) Data Centers are getting creative on adding capacity and improving efficiency (at 3:04)
Software optimization appears the most likely short-term solution, though $OKLO's nuclear SMRs and Bloom's $BE fuel cells are also "having their moment".
@7investing @techreview
youtube.com/watch?v=yY1jY_Id…
We long-term Crocs investors get to run a victory lap in our plastic shoes today.
The company once again raised full year guidance, bought back another $250 million of shares, and (*gasp*) HEYDUDE returned to positive growth. 🤯
$CROX is now +41% since this post last January.
This "excellent value investment opportunity" actually played out as expected.
nitter.cf/7Innovator/status/1882…
Crocs is a very inexpensive stock right now, which could represent an excellent value investment opportunity.
$CROX is a global shoe retailer whose comfortable and inexpensive footwear generates $4 billion in annual sales.
Its core Crocs brand is growing 17% internationally and 8% direct-to-consumer. Q3 sales got a boost from "Mini-Crocs" being included in McDonald's $MCD Happy Meals and "Batman Crocs" being sold through a recent partnership with DC Comics (both of which are quite adorable).
But its recently-acquired HEYDUDE brand has been struggling. HEYDUDE's sales fell 17% this year, as it's not yet resonating with the younger consumer demographic.
Crocs is doubling-down on HEYDUDE's brand by hiring @sydney_sweeney to be the long-term ambassador of its marketing. She's encouraging others to be comfortable in their own shoes, and this feels like a good first step to getting sales back on track.
As an investment, Crocs looks very inexpensive. The stock is trading at just 7x earnings and 6.5x free cash flow, but it's generating a 70% return on equity and a 25% return on invested capital.
There's a pretty clear disconnect there. Crocs' core business is solid and profitable. Yet the market is pricing it as a fad that's in a permanent decline.
If the company's new marketing efforts pay off, this inexpensive stock might be worth snapping your jaws on as one of the stock market's most compelling opportunities.
See our complete @7investing coverage on $CROX -- including how well it performs based on the legendary value investor Joel Tillinghast's framework -- at:
7investing.com/company_name/…
Get more free investing ideas about stocks like $CROX delivered straight to your Inbox:
7investing.com/newsletter
Simon Erickson retweeted
If the NFL draft were held today, the New York Jets currently would hold the 6th, 9th and 11th overall selections.
Simon Erickson retweeted
Google stopped spreading its quantum bets.
$GOOGL
Simon Erickson (10/23): the first big company he’s heard say “We are in on two approaches.”
⚡ Superconducting: ~1-microsecond cycles
🔬 Neutral atoms: ~10,000-qubit arrays
Is focus the smarter bet?
7investing.com/article/alpha…
I'm excited to add DigitalOcean $DOCN and Honeywell Technologies $HON to our @7investing Watch List here in October 2026.
Influenced by my recent trip to the MIT EmTech Future conference #EmTechFuture, I went searching for companies who were improving data center efficiency.
These power-hungry buildings are getting more pushback from investors, regulators, and surrounding communities. They really need to operate using less electricity and consuming less water.
youtu.be/yY1jY_IdjDo
DigitalOcean is making AI models more accessible and more efficient, whose AI-Native Cloud is calming the waters of sophisticated AI infrastructure.
In other words, it's adding a hidden layer that sits between customers and AI models to make those models easier to use and more cost-efficient.
AI is iterating quickly and DigitalOcean's top-line is growing rapidly. Its inference services segment experienced 800% growth this quarter as companies are challenging AI with more complex questions that require it to do a lot more thinking about its answers.
DigitalOcean appears to be in the right place at the right time. Perhaps investors should jump on that opportunity, and ride this Blue Ocean wave in their growth portfolio.
The name "Honeywell" most likely stirs up memories of a diversified industrial conglomerate, where you've probably seen its logo on an air conditioning thermostat or a smoke detecting sensor.
Yet four months ago, Honeywell strategically decided to split up its broadly-diversified juggernaut into three separate entities. And the new Honeywell Technologies, whose pure-play focus is on automation, appears to be the most lucrative of the bunch.
Data centers require a boatload of supporting sensors and systems, which are not only mission-critical but are also heavily-regulated. This company estimates its addressable market for automation is worth more than $200 billion annually and it intends to be a "Top 3" supplier in all of the markets it serves.
Honeywell's previous bloated and overly-diversified internal structure have caused it to underperform the broader market for years. Yet its recent split and its more narrow focus could be the shake-up it needed to unlock outsized future returns.
7investing.com/advisor_updat…
Prediction: If the US government does not put the proper safeguards in place to protect employees, we will see 20% unemployment by 2028.
share.google/HAgJ9tehYYpbXJB…
Sounds crazy, but this is exactly the direction we are heading.
Companies have to pay social security tax, Medicare tax, health insurance, and benefits for keeping full-time employees on the payroll.
Meanwhile, there's absolutely nothing holding them back from replacing humans with more efficient AI agents. Whose only cost is the tokens.
I'll be updating my Rocket Lab valuation model this week for @7investing.
Here's a glimpse back at the archives, when I recklessly predicted in 2024 that the stock had "at least 453% upside" and was worth $22 per share.
I'm looking forward to refreshing all of the numbers, and coming up with a new $RKLB price target for you for 2027.
I'll publish to X and YouTube later this week. Stay tuned. 👀🚀
*******
"I’ve spent the past two weeks working on my Rocket Lab DCF, which was a dedicated effort that was absolutely necessary.
With this being a popular company who attracts a lot of media coverage (which is typically either overly euphoric or dreadfully pessimistic), now is the right time to take an objective look at the forecast and come up with a quantitative stand on what the shares are worth.
So that said, I built my DCF from scratch, without looking at any other reports or price target estimates in order to avoid bias. I wanted make sure the objective inputs of my model were guiding the price target, rather than vice versa. Going into this exercise, I had no idea what the result would be of what the fair value of the shares would be worth.
I’ll jump right in to the punchline. I came up with an equity valuation of $22.35 per RKLB share. That implies that Rocket Lab’s shares have 453% upside from today’s price of $4.04. This makes it one of the stock market’s most undervalued and intriguing opportunities of 2024."
7investing.com/article/rocke…
The punchline: Rocket Lab's stock $RKLB is worth $22.35 per share and has 435% potential upside.
The supporting evidence: A Discounted Cash Flow Analysis, complete with all inputs and assumptions.
The reasoning: There's a lot of hype surrounding the space economy. This is an objective way to calculate what the shares are actually worth.
435% Upside?! Is this some kind of marketing ploy?: No. This is intended to provide investors with a realistic fair value that is based upon actual business performance and specific future forecasts.
Upfront disclaimer: I own shares of Rocket Lab and plan hold them for at least the next decade.
Upfront request: Please join our @7investing Community Forum to discuss my DCF in greater detail with me & other investors.
I hope you enjoy. ☕️
7investing.com/articles/rock…
Simon Erickson retweeted
Lululemon’s new president and COO start today.
$LULU
Simon Erickson (10/22): the stock is “priced in… for no turnaround.”
📉 Down 52% in 2026
🛍️ Americas comps: -12%
🧾 ~8x trailing earnings
Can a new team fix the product before the numbers?
7investing.com/article/lulul…
Simon Erickson retweeted
More energy out than in. That happened in 2022. 🔥
So why is fusion still "at least another decade away"? @7Innovator explains from MIT EmTech.
What powers AI first: fusion, fission or fuel cells?
Full video: youtu.be/EYYS7ifXwFM
One of the most polarizing stocks in the entire market right now is actually Lululemon.
This consumer-facing brand is going through a complete turnaround. It's essentially flipping the script on everything it's done over the past 10 years.
I'm going out on a limb and publicly reveal why I believe $LULU is one of my highest-conviction stock ideas right now.
(Yes...you did in fact read that correctly!)
As a disclaimer upfront: THIS IS FAR FROM A SLAM DUNK. LULU is a HIGH RISK and VERY SPECULTIVE investment thesis. Which is based primarily on the promise of a turnaround story.
As we already know, most turnarounds don't actually turn around.
That's why 34 of the 35 sell-side analysts who cover the company right now are calling it either a "Hold" or an outright "Sell".
But I'm going to break from the herd. Primarily because I see a lot of things investors should like about Lululemon right now.
And here's 3 minutes on why:
youtube.com/watch?v=3Tlb-TbJ…
Lululemon | 7investing Live nitter.cf/i/broadcasts/1NxarogPX…
"The US is now spending $2.5 billion every month on AI data center construction.
That's already up 150% since GPT first launched in November 2022!
And with #OpenAI and #Anthropic each claiming they want to spend up to $750 billion on new data centers, it looks like this trend is going nowhere but up for the foreseeable future.
Just as it was last month, my King of the Best Buys Hill here in October is also an important architect who's plotting out the course for AI's upcoming journey."
7investing.com/advisor_updat…
The more I talk to friends in IT consulting roles, the more I think our world's heading directly into a giant digital train wreck.🤦♀️
"You don't need to hire people to do that work any more. Just let AI do it."
"You don't need to spend time thinking any more. Just let AI do it."
Veeva Systems | 7investing Live nitter.cf/i/broadcasts/1MKgNbmkb…
Today is Best Buys Day!
Later today, I'll publish my 5 highest-conviction ideas on our @7investing scorecard to serve as our official October Best Buys.
So what exactly makes a stock a "Best Buy"?
What is it I look for, when I'm going through our more than 100 active recommendations to build out this list?
On today's 7investing Livestream, I'll discuss what it was about Veeva Systems that I liked so much to make it a three-time consecutive Best Buy earlier this summer.
And $VEEV's stock has done incredibly well since then.
All three of those recommendations are already up at least +77% in the six months since then.
So where's the next Veeva, on our upcoming list of Best Buys?
We'll go hunting together at 11 AM ET this morning!
youtube.com/@7investing/stre…
Here's My Recent Update on Lululemon $LULU:
"We know that Chip Wilson - the founder of the company who's also still its largest individual shareholder - has been pushing for "product led innovation" lately.
In other words, Lululemon no longer needs to be running this business for Wall Street and needs to return to making innovative products that people really want to buy.
It looks like he/they are getting more serious about that statement and took another step towards achieving it this month.
Lulu just hired the CEO from Athleta as Chief Product Officer and also a VP from Walmart $WMT Canada as COO. Both are newly-created roles.
corporate.lululemon.com/news…
I'm starting to believe Lululemon has purposely thrown out all of the bad news it possibly can.
Now it's completely hitting the reset button and is challenging all of its previous assumptions. Which includes how to run this business and also re-writing its culture.
As an investor, I like that.
Now's the time to say mea culpa and to start over. Because this previous management team was failing terribly."
See my complete Company Update for Lululemon - including my new Conviction Rating which just changed yesterday - in our @7investing Community Forum:
discord.com/invite/PT9ZQqdXX…
Broadcom does what it says it's going to do.
And that's going to mean very good things - both for the business and also for its investors - through 2030.
$AVGO @7investing
youtube.com/shorts/PgRmb8HzO…
