This Energy Shift Will Print Millionaires. 3 Stocks to Get in Early.

Everyone knows the energy demands are here, but where does the real answer lie? Joining us today is Dylan Jovenet with Behind the Markets. Dylan, so glad to have you in studio. >> I am here. I am grateful to be here. What a lovely studio you have here and thanks for being so welcoming. >> Well, thank you so much for being here. We love having you here, especially for this conversation. This is such an important topic. We're going to dive into the energy story, but if you like high growth stories, this is really the energy video for you. We are talking about an area of the energy market that many investors are not looking at right now. These names are really new and still very early in their growth story. And Dylan, you are really kind of the expert on finding us these stocks that are super early in that growth cycle. And these ones have a really interesting timeline that we're going to get into, too. So, I can't wait to get to these names. But, I want to start today by talking about the overall energy picture. We know there is a ton of demand for energy right now with the AI buildout happening across the country and so where do you stand on where the need for energy is right now in the US especially and what this means for investors and why investors really need to be paying attention to what's happening in energy. So let's talk about that energy demand first and kind of where we sit right now. What helps me is I I look at this also through a geopolitical lens through with China with competition. And you know, a couple years ago, Jensen Wong, the CEO of Nvidia, said that China has a real shot of beating us in the AI race because they have the energy solution. They have more energy. Now, if you listen to Jensen Hong, he says the AI stack is like a five layer cake. Energy is the foundation. Then you have data centers, you have chips, you have the LLMs, and at the top you have applications, which is probably where the economic value will be added the most. But that five layer stack, that's the critical layer for AI. And what China has is this foundational energy layer that we don't quite have. And you know, at root, Bridget, every tech revolution is an energy revolution at the same time. You know, when you think about the railroads and oil, you think about coal, you know, cars, oil and Rockefeller oil and cars or coal with railroads. And so is this. This is an energy revolution. So this is missionritical for us in terms of geopolitical because the country that solves this will run the world for the next hundred years. It's a high stakes competition. >> Absolutely high stakes. And I think that the China discussion that you just had is a real one and it's why there's so much investment going into energy right now. I know we see a lot of the hyperscalers, Microsoft being one of them, making huge investments into nuclear energy and making huge investments into what's that next solution so that we do uh get more ahead in that energy race. Let's talk about the nuclear story a little bit. When we do these videos, I think the most recent one we had on the show, we talked a little bit about nuclear being that solution. We have to look somewhere else. What's your take on the the nuclear setup uh for the industry but also in the market right now? >> Just to backtrack a little bit, I think Trump did a couple good things here. When you look at what he did with Venezuela and Iran, that's basically cheap energy for China. So, he knocked them out of getting that cheap oil to fund this. It's kind of a crippling move. And everybody's been betting on nuclear. I mean, you look at OK and all these companies that have just done great great great great. But I when I look at the actual math, it just doesn't math out. uh you know, so it's not fast. It takes forever to get one of these plants built and permitted. It's not cheap, it's super expensive. We're talking about 14 billion dollars to get a plant built, 7 years approvals, red tape, etc., etc. So, it's a huge investment. And uh and then the energy it produces is around $8,000 a kilowatt. Whereas you compare that with other sources that are faster and even more abundant like geothermal uh it's just you know 200 to $500 to start a plant to get a plant going producing energy and it's you know 50 to 60% of the cost per kilowatt 4 to 5,000 per kilowatt so it's faster and cheaper which is why Nvidia Google Bergkshire Hathway and all these companies are rushing into it right now and signing multi-billion dollar partnerships like the biggest opportunity nobody's talking about which is why we're talking about it. >> Yeah. So that's really going to be the topic of our video today is talking about geothermal and this is a topic that came up on our channel over a year ago. One time that's the one time that I've heard about this as an energy solution in the AI story. And I know the stocks that you have for us today. You have a list of three stocks in the geothermal space that are very different from anything that we've seen before. So I'm excited to to dive into those names. I want to talk about you have a brand new special report out specifically focused on geothermal as a solution with some really interesting stock ideas in it. So for those viewers who want to take a look at that special report again it just launched from Dylan and his crew at Behind the Markets. You can scan the QR code or get the link in the description and this is truly a revolutionary take on an energy solution that very few investors are paying attention to. So, we're going to dive into some of it today, but that special report has way more information for people who really want to dive into this topic and get ahead of the curve on investing in it. So, let's get into geothermal first before we get to the three names you have for us today. Why is this a better solution? And you hinted to it already. It's more available and it's cheaper, but let's talk about that a little bit more. Why aren't we there yet? Why? >> Well, it's it's kind of radical idea actually. using the the heat from the core of the earth, pulling up energy from that, just tapping into that, pulling that energy. I mean, it's a it's a clean energy. It's lower emissions than coals or gasoline and oil, you know, it's close to nuclear in terms of clean and it's abundant. I mean, it's, you know, think about the core of the earth. I mean, it's really kind of unlimited energy and it's you don't have fluctuating oil prices. Like, it's just there and it's abundant. Like I don't understand why everybody's not figuring this out. I mean, I can understand why big oil wouldn't want you to figure that out, but you know, it's it's interesting because big oil, both in the Soviet Union in the 70s and in America, you know, there's a lot of people who say they've known about this for decades, of course, and they really weren't rushing to bring this to the public because it really threatens their dominance, obviously. So that changed when Trump took office and he uh made his energy secretary Christopher Wright who is a big proponent quite an accomplished guy actually. He ran a company called Liberty Energy and they were big proponents and investors in geothermal and they're like you know the prior administration their idea of clean energy was you know you know whatever their idea of batteries and lithium and all these things that made us very critically dependent on China. See and that's the other thing looking at this through the lens of geopolitical competition with China. China got the jump on clean energy battery tech they they just did right we weren't focused on that. So they have a comparative economic advantage. We have a comparative economic advantage in oil and geothermal is still up for debate. So we realized when the Trump administration came in office, we really can't financially compete with the scale that they've already adopted the supply chains. They have lock on that battery tech in a large degree for another 10 years. And if we're spending time trying to build lithium mines, their lead just extends just like they can't. It's hard for them to catch up with us in oil and all the infrastructure we've built over the c you know the centuries now really. So geothermal is a new area for us now. It's an open competition. It's a big deal. >> It's very interesting and yet this is something that so few investors are paying attention to or looking at. Um and really you're not seeing the headlines on it either. And I think that's part of it. So many investors follow the headlines and follow what's the biggest hype story right now instead of what might be a realistic solution. And so that's why I'm so excited for this list today. I feel like we could talk about the issues for a long time on the energy story. Uh I think you mentioned mining a little bit. That's a whole another story we could talk about, but I want to dive into this list because I think that's what our viewers really want to see today. >> Let's get to it. >> Let's talk about what is that first stock that you're looking at in geothermal. >> FVO has recently come public and this is basically a development stage company. uh you know hasn't produced any revenues but this is the company that uh Liberty CEO the energy secretary Christopher Wright this is his baby and Google and Nvidia and Berkshire Hathway and all these companies have have partnered with this company I mean they have billions in contracts they have plants running already so basically they have the first plant on their second plant's coming Google's locked down a bunch of energy for their data centers for the second plant so you see billions in contracts already this is the one that is seems to have a real competitive lock on the future and uh you know they're being valued as a company that um the market doesn't understand it. You mentioned it earlier. We're you know people are still talking about this and that. We're trying to look at what's going to be valuable in a year or two. The market still hasn't perceived the value here. >> Yeah. I think that's a thing that we see all the time with newly advancing tech. Same with newly advancing energy is that the market's not sure what the value is. You can see that in the chart of this one. Um this IPO story. Uh it looks a lot like every IPO's chart where it gets a lot of excitement right away and then it goes down. Um and so we're kind of in that downtrend right now. What timeline do you expect for the stock to really find where the price is at to really reach a real value? Do we have any kind of analyst coverage? Any expectations on this one? >> Well, I I I don't pay attention to analyst coverage for the most part. >> I mean there look it's an IPO so there's a lockup period and the lockup period expires. These people lean on the stock. When I worked on Wall Street, we owned a firm. We would just lean on stock. We know that the IPO lockups would come. we would short the stocks and you know we know that these people would be selling into that so we know we'd capture these kinds of spreads so this is what's happening here it's an engineering unwind and and that's normal but you know generally speaking they have these plants coming online 26 and 27 so we're already seeing it run so that those numbers they will start to report and they'll start to you'll start to see those hit the income statement and you know you'll start to see quarterly earnings that will be hey we've grown revenue it'll seem insane 10,000% from a low baseline and you But then you'll start to see the stock start to find a revenuebased, cash flow based footing. >> Yeah, we're going to talk about two other names here and they're more established. This is definitely the newer player because it's new. Does that make it more of a risk for investors or is there enough of a moat here that really sets it apart and gives it a competitive edge in the geothermal story? >> First of all, it's, you know, I I'm looking at the actual locked in contracts they have. You know, I mean, they have actual signed legally defensible deals with these hyperscalers. It's the horse that the the big players are backing. So, we'll see. There's always execution risk and all this kind of stuff. And it sounds easy when we're sitting here in a studio. Oh, just to dig in the hole in the ground and get energy. I mean, it's not, you know, it's kind of silly, but these guys are among the best in the world at what they do. And the smartest hypers scales in the world are pushing them and partnering with them and signing multi-billion dollar contracts. So, >> all right. So, Fervot's the first one. It's a new IPO, a riskier play potentially. What's the second stock that you have? >> Well, Ormat is the company. Orat Tech is the company that's kind of been doing it for a minute. billion dollar business, 10% margins. I mean, those are not big margins for a small company growing because you're investing a lot of capital and development and new plants and all this other stuff, high capital spending, but 10% profit margin. So, billion dollar company, $6 billion market cap, 10% profit margins, 50p. It's not great. It's sold off from about 150 to about 120 right now. And I look, I I think this is a this is just it's these two companies right now. And this is a company that shows you or is the proof of what happens when Fervo goes online. What they're showing you is in a couple years what Fervo looks like, you know, but they have bigger contracts with bigger hyperscalers. They're more plugged into that Silicon Valley connect. So, Ormat is doing this too. Uh, and you know, again, this is growing very much. They're growing their business topline 50%, bottom line 30%. People are signing up. It's like this little revolution happening uh in energy that nobody's talking about. Like these guys are signing billion dollar multi-billion dollar commitments with hyperscalers like every day and no one's talking about it. It's kind of why we're here. >> Yeah, that is why we're here today. And I I want to talk about I think one question people have on this geothermal story is one, why aren't we hearing about it? But two, it's fairly new yet. This company's been around longer than Furbo. >> Yeah, just a couple years. >> Just a couple years longer. I want to talk about what's the capacity for how much energy they could generate and eventually will they become a bigger part of the energy story? We know they're getting contracts with these hyperscalers. Will they be able to produce enough, you know, is is that growth story? Is that a really long runway yet for growth? >> Good question. >> So, um, the hyperscalers are going to move to energy like water moves down a creek or stream. They're going to go for the least friction, right? And if every time they're running into obstacles with nuclear, I mean, you know, they're getting because as a consensus, we have not as a body politic, we have not agreed fully. There's parts of us that agree and I talk to people like you can't do nuclear because you know I grew up as a child of the cold war. I mean we had nuclear drills all the time. I understand it and they're oh no we'll do safe stuff. We're going to put it in the hands of hyperscalers. You want Microsoft to run nuclear? I mean that to them sounds crazy and I get it. I get it. It's cheaper and faster to get these geothermal plants online. 200 to $500 million. You can get phase one of the plant start producing energy immediately. Uh it's half the price per kilowatt. So it's just less friction. You could just move faster like water down a stream just faster and cheaper. And in my experience, businesses that solve a problem faster and for less money do better over time. >> I think that makes perfect sense. I also think that there is so much energy demand right now. There's not going to be necessarily only one winner. You know, >> yeah, that's right. >> Geothermal is not going to be the only solution. We know Bloom Energy and some other different energy companies have been doing incredibly well because the demand is so tremendous right now. What do you what do you think about that? >> I mean, look, I'm I'm long energy, so I mean, I'm a big fan of capturing that side of the infrastructure. The more power we use, the more demand there is for energy. Full stop. And the power consumption. Look at these data centers. I mean, it's just 1 plus 1 equals two. You know, bigger data centers, more strain on the grid. We don't have the grid for it. >> We got to tool up. >> Yeah. And I think that's what we're seeing in the market right now. Clearly, you know a lot about what's happening in the energy story and this geothermal story uh is so interesting. This conversation about all kinds of winners leads us to the last stock which we're going to get to in a minute. But I just wanted to share again if you want to dive more into geothermal. Uh make sure to check out Dylan's special report. Again, there's a special offer just for our market viewers today. So scan the QR code, click the link in the description and you can take advantage of getting that special offer on that report and really dive into this geothermal story. I think it's a unique area that investors should really be paying attention to right now. So again, click that link in the description and you can get that report today. Okay, Dylan, let's get to this last stock. And this one, it does have a geothermal tie-in, but it's also really just a part of the broader energy story. >> Yeah, it's a good oldfashioned Baker Hughes, uh, you know, picks and shovel play here on this one. They're smart. They're selling weapons to everybody. They're like, "You guys need help, I'll help you. You guys need help, I'll help you." They're just selling the equipment that helps these people do their stuff. I mean, you know, I get it. I mean, it's kind of a cool position to be in. You know, everybody's rushing to the gold mine. They're selling mining equipment, pickaxes, and uh, you know, and and pants. That's what they do. Company's been around for a while, sold off recently. I think the stocks look cheap on a value play. The other two stocks that we discussed look cheap relative to the size of the opportunity in front of them and the contracts locked in already, right? So, if you look at the if you model out the economics and the cash flow that flows certain ways on a per cost basis and right to the bottom line, they look good that way. This company looks good. Just good oldfashioned value investing. You're buying a dollar for, you know, uh, you know, 60 cents or thereabouts. Baker Hughes just looks good to me. >> Yeah, you look at that top that it reached in May and it came down so quickly. What was behind that? Why did we see that downturn? >> You know, I it's it's funny in this market, that's right around the time the chip trade went parabolic. And there's a lot of fast money people running into the, you know, they're chasing it. It was gold 6 months ago. You know, it's chips and, you know, it's this. So you have a fast money crowd that think of them like a flock of birds. They roll and change direction and they roll from thing to thing to thing to thing. But you know I don't really you know I I take advantage of them. I don't really listen to them or follow them. They give us opportunities when that herd runs into something and pushes it up to crazy prices like chips. We were in chips you know a long time ago and thankfully for them they've made the chip sector 20% of the value of the S&P which is always a sell signal. So, we've been able to take some great profits. So, thanks to the fast money crowd. Appreciate that. >> Yeah, the fast money crowd is a great way to describe what we hear from a lot of investors. It's like, how can I make this, you know, 10x week? >> I understand. I understand that is a typical >> I mean, if you guys know a way, please let me know. I'm I'm all yours. I'm all yours for that. >> Right. That's what we say here, too. But let's talk about the timeline for geothermal. I want to dive more into this last stock. I have a couple questions. I I forgot to ask about that timeline for geothermal. Is this growth story for investors that's going to pay off, you know, in a week or a month, or is it a growth story that's really going to pay off 5 years down the road or 10 years down the road? >> It's a it's a that's a good question. >> I don't think either of those. I think in the next 12 to 18 months is what I think. This reminds me of the chips. You know, we recommended ARM a couple years ago, like a hundred bucks a share. People just didn't perceive this company correctly as it relates to the data center booth. We recommended Palanteer at seven bucks a share. people didn't perceive that correctly and you know goes up to 150 or whatever. People just aren't perceiving this quite yet and they've had their attention taken by gold and by AI and chips and SpaceX and all the things. So it's been easy to just ignore this. So you know I find that when really smart people start to turn their mind to something and they start to revalue it, perceive it a little differently, it's a game of perception. they will start to perceive the math of this differently. Now, when does this happen? You know, look, these contracts start flowing through the income statement for FVO. Second half of 26. So, imagine they start flowing through. They're signing up more and more contracts all the time. Big big multi-billion dollar deals, let's say, with Google, Display Data Centers. Now, all of a sudden, they start reporting earnings. Let's talk about perception. Hey, we've did 200 million this quarter and you know, X went to the bottom line. Hey, we expect that to grow 30% next quarter because, you know, the second phase of the contract kicks in and this other people sign up and all of a sudden people like, oh, this is a company that went from not earning anything to monetizing their contracts. People start to perceive it differently. >> I think that that 12 to 18month timeline is the most key point there for investors to pay attention to of now is the time to get in if this growth story is happening. >> I mean, if you like to buy things cheap, >> I do have one more question on this last stock to talk about. There is a geothermal tiein to this last company, too. Let's talk about that a little bit. Well, Baker Hughes is selling the equipment that helps them actually pull this stuff out, connect to the ground and capture this and and and all these things. They're like the big game in town. They found quite a little lock, it seems like. I mean, look, people will see that grow. The perception will change. Competitors will start to copy it. But when you have first, you know, early mover advantage, uh, you know, if you don't blow it, it's yours to lose. And there's a company that knows a thing or two about, you know, wins and losses in first mover advantage over time. I'm sure they're focused. Uh, it's an interesting one, a different than the first two. So, a good variety in these three names today. Dylan, thank you so much for bringing this to us. I really appreciate it. >> My pleasure. >> If you like learning from Dylan, again, make sure to check out that special report. And if you want to hear his other most recent ideas that he shared on our channel, watch the last interview we had with Dylan. He's always full of really great ideas, especially looking at getting into stocks early. You can watch that whole interview