Alex

Filtronic back up 44% after some doomsellers called the stock overvalued. If I have another 10-bagger in portfolio, it is Filtronic. In the center of the whole space communication evolution and their research is paid by SpaceX. Sometimes it’s not harder than that.

Cathie Wood might be the most expensive lesson retail investors have ever paid for. Her flagship ARK Innovation ETF is down 23% in the last 5 years. The S&P 500 is up 77% over the same period. She has underperformed the index by 100 percentage points. And she has done it while collecting BILLIONS in management fees. A quick reminder of the highlight reel: – She predicted Tesla would hit $3,000 per share by 2025. It is currently $432. – She predicted Tesla revenue would hit $234 to $367 billion in 2025. The actual number came in under $100 billion. – She made Teladoc her single largest position around $80 per share. It trades at $7 today. – She loaded up on Zoom near $300. It trades at $110. – She dumped almost her entire Nvidia position in January 2023 around $20 per share. Nvidia is now at $220, which means she sold the single greatest stock of this generation right before it 10x’d. Morningstar officially labeled the ARK family of funds a “value destroyer,” noting that her funds lost roughly $14 billion in shareholder value from 2014 to 2024. But here’s the part nobody talks about: ARK Investment Management has been one of the most profitable asset managers of the last decade. Wood has personally made tens of millions in fees while her investors have collectively lost real money. This is the part of Wall Street most retail investors do not understand. You’re not paying for performance, you’re paying for marketing. The people who win are the ones running the fund, not the ones holding it. This Friday, May 15, every fund managing over $100 million is legally required to disclose their Q1 2026 trades to the SEC. We will be breaking down EVERY major filing right here the moment they drop. Follow us with notifications before it’s too late. If you don’t follow us, you might regret it.

I bought 4 new shares today. The first buy I want to share with you is SK Hynix. I bought the stock at €487 at the Frankfurt stock exchange today. I believe that Hynix is a foundational AI infrastructure play that the broader market is still severely mispricing. Generative AI training requires massive, rapid data ingestion, and right now, logic processors are quite literally starving without stacked memory. What do they do? SK Hynix is the indispensable backbone of Nvidia's AI accelerators, commanding a monopolistic 62 percent global market share in High-Bandwidth Memory. They established this massive lead through a proprietary packaging process called MR-MUF. This technology dissipates heat drastically better than the processes used by rivals like Samsung, resulting in far fewer defects. Because manufacturing and installing the microscopic through-silicon via production lines takes 18 to 24 months, new capacity cannot simply be spun up overnight. Consequently, SK Hynix’s entire production capacity is fully booked and completely sold out through 2026. How do they make money? This severe supply constraint has forced a highly profitable evolution. SK Hynix has transitioned from a cyclical commodity memory manufacturer into a full-stack AI memory provider. They are now selling highly customized, premium HBM modules directly to hyperscalers under long-term, forward-booked supply agreements. The financials reflect this dominance. They are generating record-breaking numbers, boasting an incredible 49% operating profit margin and sitting on a cash pile of $19.2 billion. What is my business case? The core investment case rests on a massive valuation asymmetry. Wall Street is terrified of historical memory cycles and is pricing SK Hynix as a volatile commodity facing an imminent bust. The stock is currently trading at a severely distressed Next Twelve Months Forward P/E of just 5.2x. Running a reverse discounted cash flow analysis reveals that the market implies a mere 7.6% free cash flow growth rate over the next decade. This is completely disconnected from the structural growth of the AI infrastructure buildout, which easily exceeds 25%. Because this AI expansion is a permanent structural shift rather than a fleeting cycle, the equity is profoundly undervalued and primed for multiple expansion. What is my exit strategy? First, I think I must closely monitor the cascading effects of the conflict in Iran on global LNG prices. A sustained spike in energy costs could severely compress SK Hynix's operating margins due to the highly power-intensive nature of semiconductor fabrication. The other immediate risk is a severe HBM supply glut emerging in late 2026 or 2027. If new capacity from Samsung and $MU finally floods the market, it would rapidly erode SK Hynix's pricing power and margins. Furthermore, with 40 percent of their global DRAM supply and 25 percent of their NAND output manufactured inside China, any revocation of US export licenses for advanced chipmaking tools could render a massive portion of their legacy supply chain technologically obsolete. However, that downside is heavily priced into the current 5.2x multiple. I feel that the market is giving us a clear opportunity to buy a monopoly-like asset feeding the biggest technological shift of our decade at a distressed valuation, and the upside is simply too massive to ignore. Note: This are my own financial decisions and no financial advice. Do your own research.