Archive Category: 10X Stocks Archive

Last week, I wrote you about how many of the companies we invest in are in a “sweet spot” of profitability — that is, not quite profitable, but with a clear path to profitability, and soon. Buying companies on the cusp of profits allows us to get in at a cheaper level — before positive cash flows attract more conservative investors. One of the examples I shared last week was Clean Energy Fuels Corp. (Nasdaq: CLNE). I showed how the company reported a reasonably small loss based on GAAP numbers, but otherwise a small profit on adjusted earnings. In short, the company is almost in the black … and I expect it to be clearly profitable in the not-too-distant future. Another example of a company on the verge of solid profitability is Hims and Hers Health (NYSE: HIMS).

We currently own two biofuel companies — FutureFuel Corp. (NYSE: FF) and Clean Energy Fuels Corp. (Nasdaq: CLNE), which I just recommended two weeks ago. Both companies have just reported quarterly earnings and their stock prices are on the move. Unfortunately, the reaction in shares of FF have been negative. The stock is down around 22% today, putting shares back down to around the $7.86 level we recorded as our entry price last June. The initial reaction to CLNE’s report was also negative, with shares falling from yesterday’s close of $4.49 to an intraday low of $4.07. Though as of noon, the stock had rallied back up to $4.50. I’m writing today with a brief note to tell you… Don’t worry — remain patient and stay the course.

In late December, I put together a special presentation on the “oil super bull” … what I expect to be a massive, multiyear bull market in crude oil and, by extension, oil and gas stocks. At the time, oil had already completed the first act of that play … rallying from practically $0 (!) in April 2020 to $115 by June 2022. And it had already begun the common act that follows any initial “too far, too fast” rally: a pullback. When I released my “Oil Super Bull Summit” on December 29, 2022, crude oil was priced at $79 a barrel — already down 31% from its first-rally peak of $115.

Quick update this week… I’m in the middle of a deep dive on my next 10X Stocks recommendation, writing the research that I’ll send your way by this time next week. Without sharing too many details, my team and I are looking at another energy play with a fascinating origin story and a highly promising niche with little competition. It’s early-stage, so we should expect some volatility from this stock. Though, as I highlighted last week, that’s something you’ve come to know and love about 10X Stocks.

Two weeks ago, I put out a call to you… I wanted to know what you liked about this newsletter… What I could do to improve it… And specifically, how you traded one of our inaugural positions, Marathon Digital Holdings Inc. (Nasdaq: MARA). The response was beyond my expectations. Dozens of you have since written in with your experiences, ideas and words of appreciation for what we do here. These letters have assured me that 10X Stocks has landed in the right hands. You know your stuff. You’re a sophisticated investor. And you understand how important it is to expect quality from a research service like this one.