Three things you need to know today…

1) Last Friday our first issue of Altucher’s Investment Network Australia went out to subscribers.

It was a huge issue with 3 different recommendations drawn from the US tech sector.

There’s no doubt about it. The USA is where the action is…

Look no further than the results from semiconductor superstar Nvidia [NASDAQ:NVDA].

Put the share price aside for a moment, and just look at these numbers…

• 12-month Revenue Growth +114%
• Earnings Per Share Growth +147%
• Gross Margin 73%

This for one of the biggest stocks in the world. Extraordinary.

And what excitement do we have in Australia? The most buzzworthy stock lately is a…Mexican restaurant chain.

You just have to be watching what’s going on in the USA.

Earnings over there just keep barnstorming their way to record highs.

See for yourself…

Both Google and Amazon, for example, are making record revenue and profit.

You can be reasonably confident that the US share market isn’t going to collapse why this is going on.

Of course, the million-dollar question is whether Trump herds the cash cow of the American economy over a cliff somehow.

But, for now, at least, US stocks are pumping out profits…and US tech is at the forefront of the current surge in AI and space communications.

James Altucher and I bring you multiple ways to potentially benefit from it.

See what you need to know here.

2) Last week we also talked about the explosive potential for the copper price to break out over the next 1-2 years.

My colleague Murray Dawes did the technical analysis of copper as part of our latest podcast, which you can view here too.

All in all, it’s a very interesting space to be watching. Look at some of these forecasts to see why…

BHP said last year it expects copper demand to grow 70% over the next 25 years. They included this handy chart too…

BloombergNEF says this equates to a required US$2.1 trillion in investment over the same timeframe to meet the demand.

Hmm.

That seems ambitious when you consider the complete lack of interest in natural resource investment over the last decade, with the current exception of gold.

In fact, you could probably throw a dart at a list of commodities and see the same story.

The peak of the last commodity boom was in 2012. That was 13 years ago now.

All the while the world has burnt coal, oil and wood, traded zinc, copper and cobalt…and financed very little for future use.

When this finally bites, I can’t tell you. But commodity markets are cyclical by nature, and they have been relatively tame for a long time now.

They are going to roar, at some point, and it’s likely sooner rather than later.

We’ve already seen a taste of this with the big US tech stocks looking to get access to power via modular uranium plants.

Elon Musk threatened to get into the lithium business when the green metal went to crazy price levels back in 2021.

I don’t think it will be long before US tech companies are financing miners to guarantee the supply of critical minerals like copper, rare earths and the like.

There is no AI boom without power or metals. They have the money and the muscle to make it happen.

I remember how electrified some lithium stocks became at the mere hint of a deal with Tesla.

We could see this dynamic reappear in the Australian market soon. It’s a tantalising prospect when the ASX, overall, doesn’t have much booming currently.

It’s something to watch for.

3) We’ve seen some heavy selling hit the market over the last week.

I like to watch for shares that get bid back up when this type of volatility hits.

Here’s one example I sent my readers of Small-Cap Systems last week. Of course, there are no guarantees here, this is a high-risk play, but as you’ll see, the setup is there…

‘We also got the latest half-year result from our gambling trade in Tabcorp [ASX:TAH]. This was the first acid test since we entered the position in January.

‘I’ve marked the earnings announcement on the chart below…

‘That’s the exact shape we want to see on the chart.

‘Even more importantly, that earnings announcement on February 20 is a way we can benchmark the stock from here.

‘The market, by the price reaction since, “approved” the results.

‘The stock, absent a wildcard sell down, should not fall substantially below 60 cents. That gives us an excellent stop-loss level.

‘If you’re not yet in the trade, now is a very reasonable time to consider it.

‘Heavy selling hit the small cap sector on Wednesday… but Tabcorp went up!

‘That suggests it’s being accumulated. The odds of it continuing to trend higher look very good.

‘My one hesitation is that it’s more a restructuring/resurrection type idea rather than a “hot” business firing on all cylinders (like our gold stocks BC8 and CYL lately). Tabcorp is likely to be more of a slow burner.’

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

***

Murray’s Chart of the Day

By Murray Dawes, Monday, 03 March 2025

Copper has managed to hold around current levels for the past few years while most other commodities were hammered.

That relative strength may be the hint that the next leg up in commodities could see copper outperform.

US$5/lb has remained stiff resistance for the price of copper for decades.

That begs the question – what happens when the breakout finally happens?

My guess is it will be like taking the lid off a Coke bottle that has been shaken up for 15 years.

We aren’t there yet, but when the blast-off happens, you might want to make sure you have enough exposure in this key future-facing metal.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps