By Charlie Ormond Analyst, Alpha Tech Trader

Dear Reader,

Hi, it’s Charlie Ormond here. I’m one of the editors here at Fat Tail Investment Research.

We’re doing something a little different today.

I’m sitting down with our small cap analyst Callum Newman and quizzing him on the latest market developments.

Callum’s subscribers have had some ripping opportunities this year. And talking to Cal, it’s clear he sees plenty more coming up too.

With all the action I just had to start this chat with DroneShield. This has been the ultimate rollercoaster in the last few weeks.

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Cal, thanks for sitting down with me.

You recently took profits in DroneShield after a huge run up in the price. It kept going up after you sold…now it’s down 40% in the last week or so.

What’s going on?

Thanks, Charlie. DroneShield has been a belter of a small cap stock this year. You don’t get a gigantic run up like that very often.

My subscribers had the chance to double their money…and then some…in less than six months on that one.

But you’re right, we sold out of it — too soon, in hindsight. It really kept melting up for a month afterwards. However, reality might be catching up to it now.

How so?

Drones are an exciting thematic, no doubt, and DroneShield certainly has the platform in place as a business to exploit this.

But the recent valuation was very stretched considering its low profitability.

Sometimes market expectations become so high that it’s almost impossible to fulfill them in the short term.

That’s what we saw on Monday when the stock got walloped 20% on its latest quarterly report.

However, DRO remains an interesting proposition. Certainly, I’m going to continue to follow their progress with keen interest.

They have a latent ability to release ‘big news’ at any time. I love that in any stock, but especially a small cap.

Besides DRO, how is the small cap sector faring in 2024?

It’s certainly not a ‘red hot’ small cap sector.

However, relative to this time last year it’s a marked improvement, I can tell you.

We’ve had some very tidy gains in other shares — Tuas and Nuix spring to mind. But the sector is still stuck in second gear in terms of sentiment and volume.

However, if you have the long term in mind, now’s the time to consider building up your exposure while things remain suppressed.

So what’s holding the small cap sector back?

Continue Reading...

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By Bill Bonner Editor, Fat Tail Daily

[3 min read]

The dots don’t matter. It’s the pattern that counts. 

Harris? Trump?

One, full of bile and bald-faced untruths. The other...empty as a beer can...hollow as a rotten log.  

They are on different trains, with different dumbbell slogans and different egregious lies... but both are headed to the same destination, a rendezvous with a perverse and unpleasant destiny. 

And yet, the American people will stand in line — even in the cold and rain of November — and vote for them. 

What has happened to us all? Did we suddenly awake, one dark and woebegone morning, and decide to be stupid? 

Or is it just part of the pattern? The dots come to think what they need to think when they need to think it. And as an empire ages, its people — both leader and followers — become paranoid delusionals.  

How else to explain it? The general level of dumbness is breathtaking. Americans think they can improve their economy by banning imports...cutting taxes and interest rates...and spending money they don’t have on things they don’t really need. Their national debt approaches the critical ‘meltdown’ level...and they just spend more. And neither Republicans nor Democrats even mention it. 

Continue Reading...