☕ I smell a monster investment opportunity
Oct 20, 2026Howdy! 👋
I trust you’re off to a great start wherever this email finds you.
I certainly am.
I shot outta bed at 0330 and beat feet to the gym for a super early (and killer) workout. Mind you this isn’t particularly unusual… I’ve never been someone who requires a lot of sleep.
I’m simply super-excited by all the opportunity I see in today’s markets. AI is not even the half of it…
The world is reorganizing around themes and in ways that don’t respect Wall Street’s old categories.
Here’s my playbook.
1 – SpaceX earnings inbound
Earnings are imminent as I type – and may be out by the time you read this.
I’m watching four things and encourage you to do the same:
- AI and Starlink growth along with scaling capacity
- Infrastructure spending; unlocks are a non-issue except to the pontificators and worrywarts
- A SpaceX and Tesla merger; I said that was likely years ago and was openly regarded as having lost my mojo. Now that is the subject of intense market speculation.
- Possibly the first profitable quarter. Expected $0.13 earnings but I’ll take anything above $0.
Game on!
You? 😊
2 – DeepSeek gets the boot and I smell a monster investment opportunity
The Trump administration has banned Chinese AI startup DeepSeek from federal civilian agency computer systems which means that agencies like Treasury, State and Justice have to rip out DeepSeek technology and stop buying it. That includes third-party products built on DeepSeek’s AI models. (Read)
What I want to know is how on earth anybody in our government even remotely thought implementing an open-source Chinese-built model into operations was a good idea???!!!
I mean seriously… whoa.
Anyhoooo….
Like many things that people view as challenges, I see this as a monster opportunity.
Every agency that pulls DeepSeek out has to replace it with something and that’s GREAT news for every American AI and cybersecurity company that has already earned Uncle Sam’s trust.
Palantir comes to mind straight away as do a few cybersecurity choices.
I’ve long said that the “free” stuff comes with a very expensive price tag and yet, again, it would appear I was on to something.
Keith’s Investing Tip: When you’re sizing up an AI company, don’t just ask how smart its tech is. What you want to figure out is who trusts it with their data. Then, invest accordingly.
3 – Tesla to $20T – It’s nice to have company
People thought I was stark raving mad – especially when I laid out my case for Tesla and a $20 trillion valuation by 2040 back in 2025. Even Unka Elon took notice and agreed.
Now ARK’s Cathie Wood has made a virtually identical case and sees Tesla shares reaching $4,400 by 2031. That would value the company at roughly $17.5 trillion while a move to ~$5,030 takes it up to $20T.
How’s she get there?
Largely the same way I did by recognizing that Tesla is way beyond just a “car company.”
To a point I made earlier this week while talking with FBN’s Stuart Varney, I think most investors could double shares and likely still not have enough.
Meanwhile and as usual, the naysayers, haters and pontificators are still counting deliveries.
Let ’em.
Tesla has created more money for more people faster since going public than any other stock on record. The fact that it’s gone “nowhere” since 2021 is a gift and the smart money knows it.
Shares have returned 22,000%+ since Tesla went public, btw. The S&P 500, by comparison has turned in roughly 875% if you include divvies and roughly 650% if not.
Just sayin’.
Keith’s Investing Tip: There’s no shortage of people thinking big but the problem most investors have is that they’re not thinking big enough.
4 – NYSE soon to open early, stay late… here’s how to use that to your advantage
The New York Stock Exchange announced Monday that it’s extending trading hours for options listed on NYSE American. (Read)
Here’s the deal.
Options will now trade in an early session from 7:30 to 9:25 a.m. ET and a late session from 4:00 to 4:15 p.m. ET, on top of the regular trading day.
The first batch covers options on a few big index and gold funds, plus some of the largest tech names on the planet. The NYSE says it plans to bring the same approach to regular stocks in December.
The exchange says it’s responding to demand and giving traders more time to manage risk.
I call b------t!
Once again this is being billed as “innovation” and the public is taking the bait.
The real edge will go to the big money who will use the extended hours to out quant, out trade and outmaneuver anybody who dares to face off against ‘em.
Volatility will increase even as spreads tighten.
What’s next?
This is what got me out of bed so early.
Chaos creates opportunity which means that any investor with a plan using proven high probability tactics has a shot at beating the institutions at their own game.
Volatility is funny that way.
Folks instinctively fear it, but what they fail to realize is that the more volatility there is, the more opportunity we – you and me – have.
Casinos, btw, figured this out a long time ago… the longer you keep the lights on, the more punters play at the tables. 💯
I can’t wait (because being the house has never looked better).
Keith’s Investing Tip: Always do what Wall Street does, not what it says!
5 – Backlogs don’t lie, and they’re often a sign of great investing potential
War, terrorism and ugliness remain growth industries.
I wish that weren’t the case for a dozen different reasons, not the least of which is that I believe the world would be a very different place where we focus on getting along rather than tearing each other apart.
But there’s not a lot I can do about that.
As investors, we have to deal with the world as it is, not as we’d like it to be.
Case in point, RTX and Northrop Grumman both reported this morning. Both raised their outlook for the year. Both are sitting on record backlogs of $340 billion and $109.6 billion respectively.
If you don’t understand why that matters, it’s worth a moment of your time.
Here’s the skinny.
A backlog is simply work that’s been ordered but not yet delivered… in other words, money that’s already in the pipeline so to speak. Sales look backward, but a company’s pipeline tells you what’s cookin’ in the kitchen.
Both companies are great choices for investors but one has a very definable edge imho… and OBAers know why.
Bottom Line
You can wake up with results or excuses.
Not both.
You got this — I promise.
As always, let’s MAKE it a great day!
Keith 😀
