☕ Time to buy a stock we’ve never talked about? 🤷🏻
Nov 05, 2026Howdy! 👋
The markets have gone red in a hurry this morning.
Not that that’s a surprise.
Traders are still re-pricing risk in light of what they thought they knew heading into the US Midterms and what they now know afterward.
Let ‘em.
What happened in Washington doesn’t change one thing when it comes to your plan… or at least it shouldn’t.
Invest in optimism and refuse to let FUD – fear, uncertainty and doubt – make your decisions.
The markets are the only store on earth where people fear a sale.
This too shall pass.
Here’s my playbook.
1 – Time to buy a stock we’ve never talked about?
Agility Robotics goes public today, becoming the first pure-play humanoid robotics company to do so that I’m aware of here in the US. (Read)
What does it do and why am I bringing it up?
Agility is an Oregon-based startup with more than 500 employees that builds humanoid robots for warehouses and factories. Its latest model, Digit 5, loads materials onto equipment, sorts parts, and handles assembly-line tasks, taking tedious, hard-to-staff grunt work off companies’ hands.
It’s also got serious backing from the biggest of the biggies including Nvidia, Amazon, SoftBank and Foxconn, Apple’s main iPhone assembler, which led a roughly $201 million private investment in the deal.
Nvidia chips are the brains inside Digit. Foxconn brings what virtually all robotics companies are missing: the capability to build machines at scale, at a reasonable cost.
Time to buy AGLT?
There are some big “ifs”
… If GXO Logistics, one of the world’s largest warehouse operators, keeps rolling Digit out to more sites at this rate,
… if Digit 5 ships on schedule
… if the robots start paying for themselves
Wall Street will be key, as will competitors.
Tesla, Figure, Apptronik and Boston Dynamics have been building humanoids for years. Unitree, a Chinese competitor, beat Agility to the public markets in Shanghai and is already shipping cheaper robots out of China.
AGLT starts trading today.
Hmmm.
Meanwhile, I’m going to stick with my faves for a coupla reasons… they’re proven, they lead the markets, they have gobs of cash and yes… they’re already tremendously profitable.
Keith’s Investing Tip: IPOs were once a very viable investment, but these days they’re more typically one of the biggest, most rigged games out there. Be VERY careful if you decide to get on board or – my suggestion – wait a quarter or two for the inevitable drawdown and for the company to prove itself.
2 – Defense stocks getting hit hard, don’t chicken out now
Defense names are getting hit hard, an entirely expected outcome as I noted in yesterday’s 5 with Fitz (See #1).
MyPOV?
Congress can squabble over the budget all it wants, but the two things it can’t do are a) erase years of orders already on the books and b) compromise the security of any sovereign nation.
I think the selling pressure will be very short-lived and that it’s an incredible opportunity for income and dividend-oriented investors alike.
Tighter budgets force choices that inherently mean the cream will rise to the top while bloated legacy programs get squeezed. That means the list of potential winners, which was already very short, gets even shorter imho.
I hope you’re thinking along the same lines because I think there’s a good case to be made that those who are casting a wide-ranging net via defense funds and ETFs are going to come up short.
One of my faves, for example, has returned ~155% over the past 3 years while ITA, a popular defense ETF for many investors, has returned ~92% over the same time frame.
Keith’s Investing Tip: Buying big broad funds sounds great – and it can be, which is why it’s a popular choice. What many investors don’t realize is that doing so is a lot like buying cable TV in that you’ve got to pay a big chunk of money for “channels” you don’t want just to get those that you do. I say skip the middleman.
3 – Wendy’s tells Peltz to hold the fries
Nelson Peltz’s Trian and a group of partners offered $7.35 a share in cash to take the company private. Wendy’s board said no thank you unanimously because Chairman Art Winkleblack says the offer “substantially undervalues Wendy’s standalone prospects and long-term earnings potential.” (Read)
Dumb move.
Wendy’s has struggled for years, and I think there’s a good argument to be made that management has failed shareholders. Shares have fallen ~74% from a record close of $28.87 set in June 2021.
As I said back in August, cashing out is almost always the main objective when a stock is spiking on take-private buzz.
Getting while the getting is good still applies.
I think that Wendy’s may vanish within the next few years for the simple reason that the fast-food market is a dead end. Big names like Jack in the Box, Pizza Hut and Papa John’s have all hit the skids as consumers’ wallets have tightened and nutritional awareness and GLP-1 drugs have taken hold.
Keith’s Investing Tip: You can have results or excuses. When a board says an offer “undervalues” the company, you owe it to yourself as an investor to ask the obvious question. If the business is worth so much more, why was the stock down there in the first place?
4 – What’s Apple up to?
Apple is selling bonds today. Seven of them. (Read)
In plain English, Apple is borrowing money from investors. It’s splitting the loan into seven pieces, each paid back on a different date.
Wait a minute… Apple? Borrowing?
The same Apple that’s sitting on one of the biggest cash piles on the planet?
Yup.
Smart too.
When you’re one of the most creditworthy companies in the world, lenders line up to give you money which means that Apple can borrow cheaply and keep its own cash working.
Companies on the margin – meaning those without proven products, a subscriber base in the billions and the scale Apple has – are likely to keep struggling for financing for the foreseeable future.
Reports, btw, say the money is earmarked for buybacks and dividends, which go straight back to shareholders.
5 – Bryce made the cover!
We rescued Bryce nearly a decade ago – well, technically, he rescued us.
He was scared, uncertain and didn’t trust a soul when we got him because he’d been terribly abused.
Today, he’s one of the most gentle, intelligent and caring dogs in the world… he’s also the poster boy for the new Woof Project Annual Calendar.
We hope you’ll buy one and help more dogs just like Bryce find great homes. 😀
Bottom Line
The strong feed when the meek retreat.
You got this — I promise. 💯
As always, let’s MAKE it a great day!
Keith 😀
