Okay folks, so we are starting to get into this very interesting environment, where many of the very popular high Conviction retail stocks from early in 2021 and especially last year are starting to pick up in a major way. After months of wavy price action, we've seen a lot of them break into new recovery highs, and there's one in particular that you need to know about. But let me just give you a little bit of context here, whether it's Xpev nearly doubling in the last month, Lee doubled in the last month, Chargepoint, the leader in charging infrastructure up about 50 percent since last month's lows, Fisker more than doubled in the last month, going from nine to over 19. And even outside of Evs, the crowdstrike security play getting up to new highs pltr up 50 since last month's lows skills doubled since Melos yes, partially a short squeeze, African Amazon Junior almost doubled Draftkings the king of the drafts bounced very nicely from its dip in May.

Clove broke out into new highs earlier this week solely the squeeze attack, but but still descends. Play: Another play that we've talked a lot about and broken down fundamentally during the downtrend, all of a sudden finding itself twice as high as it was last month lemonade insurance stock went from 55 to 105. by the way, the one thing that all these plays have in common is these replays that are on our price targets list and plays that we've covered publicly and broken down on the channel. Obviously, these are all growth plays in our growth place tend to be either loved or hated, depending on the current market condition.

and I'd be lying if I said that I changed my conviction on stocks based on whether or not the current market cycle is favoring them. And obviously that is not a very popular thing when it comes to having a Youtube channel during an Ev crash. People are like, oh my God, stop telling people to buy falling knives. And if you're telling people hey, you gotta either be willing to lock in profits or hold through downtrends.

If you're buying stocks at a higher price, that's not so popular either, because there shouldn't be any fear during a bull market, right? Obviously, Because of the inflation scare back at the end of February and March, well, the growth sector plummeted, and so our growth stocks plummeted. But on the flip side, it's the euphoria from November, December, January, and February that made them do so substantially better than the rest of the market during that period. And that's the thing with growth stocks, right? They cycle between euphoria and dysphoria. When growth is in a bull market, it tends to move very, very fast.

But when growth is in a bear market, it tends to move down very, very fast as well. That's sort of the beauty, and that's why we talk about so many of these companies, not just because they are the future in many different ways. Obviously, a lot of people during the selloff are like, oh, Uvs aren't coming. Oh uh.

Tech software. All that stuff is a fad. Please buy Mcdonald's Mcdonald's is the grill story of 2021. But because growth cycles are at the early stage of their growth process, when they're showing results, when they're in an environment that's going to reward results, they tend to move much, much faster than all the other ones.

And people criticize them because they're in bear markets, which happen cyclically. They tend to go down a lot, but that's the beauty. Whole point of having high conviction in growth stocks is so that you have a price target when things go down, so you have a map to figure out what you want to buy, what you want to dip by, and which you're going to have the conviction to hold on. All the main stocks that I've ever liked have had massive fluctuations in both directions, and obviously we haven't seen all growth stocks come back since February sell-off Some of the more technologically advanced companies like Nano Dimension and Triple D D D D.

Our 3d printing stocks have been very, very slow. We haven't seen much strength in Green Energies. And what about Lovely Mara and Riot? Well, despite being huge winners during the tech sell-off and the growth sell-off well, recently, they've been put into a crypto winter. But hey, one of the beauties of being a trader is saying hey, you know what? Maybe we don't exactly know when a cycle is going to start, when it's going to end when you're going to get into a new cycle, but we know that things always cycle: A winning stock, a stock that's doing really well is going to go back into a losing cycle, and a losing stock.

If you've appropriately measured, it is going to go into a winning cycle. So taking advantage of the losing and taking advantage of the winning is a massive massive plus if you're a growth trader with more and right Obviously, we started at such a low level I think where call out price was like at 10 and because of the institutional adoption of Bitcoin since our original call-out date, which is what we were, you know, predicting. And that's why we liked tomorrow from the beginning of the year. let's let it to go into the stratosphere, and now it's still over 2x the price that we called it out at the beginning of the year, and they, in my opinion, are very undervalued if you're bullish on Bitcoin, but it's always a cycle back and forth, Folks, There's always something new that gets people out of Bitcoin or out of any asset class, and there's always something new that gets people back into it.

But why is growth picking up in the first place? Well, it's because a lot of the inflation concerns that we saw back in February and March that the market was anticipating. Well, they haven't panned out the way that they thought. Turns out that the market is starting to trust the Fed stance that inflation actually is transitory. That, yes, we're going to have higher inflation numbers, obviously, but that perhaps it's not going to be out of control.

Part of being a trader is acknowledging that we have control over certain things and we don't have control over other things. For example, let's go ahead and say Fed Chairman Jerome Powell wakes up tomorrow morning and he says, huh, You know what? I was going to keep the easy money policies, but instead we're going to raise interest rates to 20 percent. I'm also going to require that if you want to borrow from a bank that you need to give your first born. Well, obviously many of our favorite plays would tank the next day and people would say oh my God Charlie didn't see.

Come in the Fed, taking our firstborns, or even outside of me, You're going to think to yourself, all these plays that you did the work on You're like, wait a second, they're all down. They were bad plays, but in reality, but in reality, what are you doing? You're focusing on all these factors that are outside of your control. What is in your control is valuing a company, putting a price target on it, making it a priority to make sure that you're buying it at cheap prices and then just being patient. Funny thing about doing the research during all conditions is that if you have a price target that's not affected by market condition, that means that you have a steady level where you're like.

Okay, this is what I see: the company valued at, so if it's substantially below that, then I can buy it. If I think that Apple is worth 500 and then all of a sudden there's a global pandemic and it's worth 200, then I'm gonna buy it. It doesn't matter if the media is saying don't buy it because stocks won't come back, Go buy gold. You're thinking for yourself, You're not thinking with the crowd.

Remember folks, We buy stocks when they are irrationally undervalued so that we could sell them when they're irrationally overvalued. How long that takes. Hey, we don't know. I don't know what the Fed's going to do tomorrow.

I don't know if inflation's really going to be transitory or not. I think it will, but it doesn't really matter because trading is a business. It's not just trying to gamble on what the market environment is going to be. Is it going to be rainy? Is it going gonna be shiny? Is there gonna be a World War Iii? How the hell could you predict those sorts of things? You gotta be honest with yourself.

And I hate the fact that I see so many people that lie to themselves thinking that they could predict exactly what the market environment is gonna be Listen into the Bs that goes around during every single negative catalyst that drops. But now we're getting to the point. Neo. It was a stock that we've covered since the low single digits and talked about for years.

and every single time it goes down and is slow, which has been dozens of times in the last few years you'll start hearing about how Neo was a scam and that you were a for buying the company and then what happens when it breaks out into new highs. People all start pouring back in because oh no, it's it's a momentum play. Now better all buy it. It was a scam at much cheaper prices, but now it's a deal at really high prices, especially if hedge funds are buying it.

Go ahead and pump it to the retail traders and then when you decide to go and short it later on you can say oh my god, you dumb money, You bought stocks based on fundamentals that we were buying. You fell for it again. same story every time and it's really unfortunate. But let me just talk peacefully about Neo Neo, which nobody seems to be talking about right now and nobody even wants to look at is trading up about 50 month over month.

Why are people not paying attention to it? Well, because most retail traders especially sold out of their Neo after it hit new lows, people were bombarded by media articles talking about how you should sell all of your stocks that are at low so that you can go buy Coca-cola Go buy a lot of these boring companies that move 10 in a normal year. If you're lucky, buy companies that have most of their growth story behind them. and then we'll recommend you get back into growth stocks when they break out in new highs. and it's obvious that they're at New Highs Media Tactics 101.

And unfortunately, when you're a retail trader, especially if you're a newer retail trader, you probably got interested in a lot of these grill stocks during time periods when they were all doing very, very well. Which is fine, but you probably were also ill prepared for the sell-offs. and maybe part of that was my fault, right? We need to hammer Earth's management more. during sell-offs.

We need to hammer a bigger picture of how hard it is on your stomach to deal with downtrends if you don't actually believe in the stocks that you're playing with. But at the end of the day, the results are still the same. A lot of retail traders will buy high conviction stocks, high conviction stocks that they think they really like during uptrends, and then they'll sell them during downtrends because they're all the fud gets into their head. They start thinking, oh my god, Evs are never coming around I was naive.

How many times over the last couple of years has Neo gone down fifty percent? Everybody decided that their convictions are out the window, only to get their conviction magically back when Neo's back up again. Having patience not only allows you to see the bigger picture, but it also allows you to see the opportunity. So in the remainder of this video, I want to break down Neo on what they're doing. At the end of the day.

Nobody can tell you whether this is the rally that's going to take us into new highs or if it's going to be three more rallies from now, but I want to take some time to actually look at the company and get rid of the noise with the chart. Okay, so to start for context: Neo and the Eevee stocks were the first to sell off in February because of the chip shortage, blah blah blah. You know that that caused a massive blow to manufacturing capacity and their ability to deliver vehicles. They've come up with ways to mitigate and adapt, diversifying suppliers, ordering in bulk, crafting closer relationships and renewing current relationships with key manufacturers, and even overcrowding some of the smaller companies.

And as a result of this, while we have seen Neo's production drop, they are already acknowledging that based on current production and delivery demand, the company will be able to accelerate the delivery in June to make up for some production misses. In May, it looks like the summer for Neo is going to be very good. Despite ongoing chip problems, it looks like they're getting better. looks like there's some light at the end of the tunnel after all.

And as the overall industry moves from the middle of a chip shortage to the ending stages of a chip shortage, you're going to start seeing investors anticipate what a post-chip shortage is going to look like for Neo. Instead of anticipating lower production levels, they're going to be anticipating higher production levels and scaling up of that and then building on what they had even before the chip shortage. In terms of expansion, Neo just landed a key license in Europe to expand their Neo Es8 model. This means that starting now, this vehicle is approved for mass production and license plate registration in all European Union countries, an area with over 447 million people in it, many of which can afford and also have demand for electric vehicles.

We'll see how Neo fares, but certainly a huge market potential here, and they will be starting in Norway this September. and based on how successful it is there, you'll start seeing investors anticipate it spreading to other countries. And it's also true that being approved in Europe takes away a lot of the fud around how good Neos cars actually are. Eu regulatory standards obviously provide a lot more reliable data than Chinese regulatory standards data due in terms of competition, let's talk Tesla.

The irony of Neo is that a lot of people won't touch it because it's Chinese, which is fine. But then they'll go and buy Tesla which has a lot of its valuation and revenue coming from the Chinese market. So it's like, hey, wait a second, you're buying and investing into the Chinese market in one way or the other. If you're not going to buy something because it's Chinese, at least be completely transparent with yourself.

And I love Tesla. But wait, Neo has a home field advantage in China. Tesla succeeded in China because it was convenient to the Chinese and the Chinese Communist Party. I think they would have let Tesla succeed if they didn't get something out of it and it didn't accelerate their own industry.

I love Tesla. I think their cars are great. They're still very, very competitive in many, many markets, and in China right now they're still competitive. I think they're still the leader.

But at the end of the day, if you're thinking five ten years down the road, who is more likely to be kicked out of China, I would not lie to you and say that I think that Tesla is gonna have this massive market share in the Chinese market forever. China would much rather have its homegrown players be winners. And in terms of Neo competing with Tesla, Tesla, the leader has basically been flatlining in growth, both on a delivery level and on a share price level. Tesla's very mature in terms of its share price.

Where Neo is very, very early in the process, and when you consider how fast Neo has grown in the Chinese market and how fast it's come onto the scene in such a major way, it really makes you wonder how it's going to fare against Tesla and some of its other competitors in Europe. You consider the Es8 that's coming in September to Norway. Right now, the small to medium-sized Suv is one of the most trendy vehicles in the world, and Neo is attacking that market there first. With that, Neo so far has built its reputation as being one of the leading providers of luxury electric Suvs in China.

What does Tesla not have a good competitor for? I would argue Suvs. That's why around the world you're seeing all these companies saying hey, wait, there's not that many good electric, small to medium-sized Suvs, but there's a ton of demand And that's why you saw Ford come out with the mock E Little Ugly Mustang Suv. That's why you're seeing Fisker Lead with their Suv. That's why you see Neo lead with bears.

But Nito has a proven track record in the Chinese market and a proven brand reputation there. What does Tesla have in terms of a small to medium-sized Suv? The Model X is like a minivan looking thing half sedan, half minivan. so it's easy to see how Suv buyers looking for a traditional Suv shape and practicality would prefer maybe an Es8 to a model X, especially when factoring in the price difference. Neos in most cases are going to be cheaper.

And I think that as Neo continues to introduce some more models and actually competes in the sedan market, which it's basically been pushing under the rug for the last few years, well, you're actually gonna see Neo take some ground there as well. So again, I would never bet against Tesla. I'm just using this as a comparison because Tesla's already made it in terms of a mature Ev company in the eyes of most people, and Neo has most ground to gain in order to catch up to that. But there's a lot of things here that indicate that Neo's in the very, very early stage of its growth process, and I would not overlook it.

Now, in terms of price targets, the average analyst price target is 61.91 and that is 35 higher than the current price. Keep in mind that analysts tend to hate Ev companies, and they're kind of fuddy-duddies with growth companies overall. Why? Because Eevees haven't been around for 50 years and they never look good in terms of quarter quarter results. because they're growing companies, so they're not prioritizing making profits quarter by quarter and shooting out money to give to the shareholders and line their pockets.

They're actually caring about building a company, which I guess that's a Sim these days. You can't build a company that's disgusting. Give the money to the suits. Well, maybe I shouldn't say suits a poor choice of attire, but you get my point.

With that being said, the analysts are putting this at an average price of 62 bucks, with some ranking it as high as 81 and even the biggest mainstream bears putting it at 50, which is still above the current share price. Why are they doing this well? Because Neo has cemented itself in the biggest Eevee market in the world, China, and it's really just getting started with its model line. And I think the key. Here's not saying Neo is not going to have massive failures over the next couple of years Every Eevee company will.

It's tough to build an Ev company, but the fact of the matter is that you could factor in a lot of failure to the share price and the potential here is much, much higher. I think that when you consider that the chip shortage is temporary, you figure in the advantage that Neo has in terms of being earlier on that curve to exponential growth. You think about all the new markets that it could potentially enter over the next coming years, and you think about the fact that in the moment, it's accelerating its production during a massive chip shortage. it leads you to the conclusion that hey, Neo is going to be worth a lot lot more than it's at right now.

We don't know when that's going to be. Maybe it is going to have a few more cycles back and forth before it gets there, but I'd have a very hard time arguing against Neo. I think it's just a question of patience. Anyways, that caps out of the video.

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