Trump Just Told You 12 Stocks to Buy BEFORE November

Wall Street watches what the billionaires buy. Smart investors should be watching what the US government is buying with its trillions of dollars in financial firepower. Hey bow tie nation. Joseph Hog with your weekly stock market update before the week starts with the stocks to watch and the stock market news you need to see. And nation Washington has quietly become one of the biggest investors in a few strategic industries. And I'm going to highlight 12 stocks already getting a boost along with one secret play that could be next. Stick around and I'll also update on shares of Super Microcomputer ticker SMCI up 31% last week. Sound hound AI and SpaceX. But first, onto that trillion dollar stock boost. Because for the first time in its history, the US government isn't just regulating businesses. It's quietly becoming an investor. Over the last year, the federal government has negotiated ownership stakes in 30 companies, strategic investments in next level tech critical to the national security. 12 of these companies are stocks you can buy, piggybacking on the support of Uncle Sam and his printing price of dollars. Returns on these stocks are up as much as 145% since those announcements. I'm revealing every single one, including the next investments the government is hinting at making right now. Understanding in which stocks the government is investing and more importantly where it's investing next, you need to understand the why the government is investing. For decades, the Feds mostly influenced business through regulations, tax incentives, and grants. That is changing now on competition from China and limited funding for some critical industries. The government has decided that some industries are just too important to leave entirely to the market. And more than just the investment themselves, some into the billions of dollars into the 12 companies I'm going to highlight, it marks a commitment from the money printing power of the government. The government is taking a real ownership stake in these companies to make sure that they have the capital needed to grow. Now, for investors, it's an important shift that you need to be paying attention to, no matter who you vote for. Government money does not guarantee success, but it does provide that floor of support, especially for a few of these penny stock companies on this list. Now, some of these stocks have doubled since the government's announcement, and all of them are in those critical industries that are going to continue to get a lot of attention. Here we see the full list of 30 companies the US government has invested in. And I've noted on the sides here the 12 stocks that are available in the US market with their ticker symbols. First up here is MP Materials. Ticker MP. It's one of the few rare earth producers with US assets including production and processing in Mountain Pass, California. One of the first investments by the government officially announced July of last year. The stock is up 145% since those rumors started leaking about an investment. $400 million in preferred shares that are going to convert to 15% ownership of the company. And the biggest investment, Intel took her INTC. This semiconductor designer floundered when it also started trying to manufacture chips as well. But that caught the attention of the government as a critical industry. Taiwan semiconductor manufactures more than 90% of the world's high performance chips. So, Uncle Sam is hoping Intel can take some of that market with an $ 8.9 billion investment that gives the government 10% of the company. plus warrants for another 5% under certain conditions. And nation for me, this is still a show me stock because I'm not totally convinced Intel can manufacture as well as its competitors. But the shares are up 131% since the government support. And Trilogy Metals took TMQ is still a small penny stock of just $68 million market cap. $3.52 a share even after a 68% run since the government invested $36 million for a 10% stake plus warrants for an additional 7.5% ownership. The minerals miner primarily produces copper, cobalt, zinc, and gold. But it's also developing assets of rare earth minerals in Alaska. That's one of the biggest trends you're going to notice on this list. those critical minerals that China has a lock on globally, but the US is just now starting to try to lock in its own resources with some of these companies. Lithium America, ticker LAC, is one of the few stocks to give up most of its gains since the government's investment with shares up just 11% since last October. The minerals miner is key in that rare earth and battery elements, receiving $184 million debt service deferral with 5% ownership stake by the government, another 5% ownership in the Thacker Pass joint venture. Lately, investors seem to have lost interest in these mineral stocks, which could mean better valuations for those willing to hold on. L3 Harris ticker LHX is the only major defense contractor to get an investment, and the shares are only up 1% since, though, spiked 27% shortly after that announcement. The government owns a $1 billion convertible note in the company's missile solution segment, plus warrants that convert to more ownership if the segment splits off from L3 Harris into an IPO. Not only is LHX a critical piece of that interceptor missile technology and should see revenue boom for years following the US war with Iran, but a potential spin-off of that missile solutions group offers another upside possibility. USA Rare Earth, a ticker USA, is still up 28% from the government's January announcement of up to $277 million in direct funding, plus a $ 1.3 billion loan for shares and warrants. The stock was as high as $26 per share, double the price from the announcement, and has come back down into that valuation territory for the rare earth producer with US assets. Again, folks, these rare earth elements. These are critical minerals used in everything from aerospace defense semiconductors and healthcare. So, these companies have buyers as long as they can dig it out of the ground. They just need the funding to grow those assets. Global Foundaries ticker GFS ran as much as 90% higher after the government's May announcement of up to $675 million across two Chip Act loans, including nearly $400 million for a quantum manufacturing foundry and $30 million for a silicon photonix. The government also has a separate agreement for a 1% stake, but the recent sell-off in AI chip stocks has brought this one back into that May pre-announcement price. The company easily beat expectations in its Q2 earnings with revenue of 1.8 8 billion could run even higher again if investors come back to these chip stocks. Another industry here getting a big bet from the US government. Quantum computing first with the wave quantum ticker QBTS was up as much as 65% higher from that May announcement the government would take a hundred million equity stake but has since come back down into the pre-announcement price as those quantum stocks compete with the AI theme for investors. Now quantum is still in its infancy. So investors need to be able to wait out on this one, but the potential is there for that next breakthrough in tech. The government support helps clear out the uncertainty in those cash flows and the survivability for D-Wave. So this is definitely one you want to watch. In Flexion, ticker INFQ is the only stock down since the government's announcement there in May. The shares were up as much as 81% following a deal for $100 million in stock to the government, but have since crumbled along with those other quantum stocks. This one is still relatively expensive though at 57 times expected revenue of $41 million. Deeply negative on the cash flow even with government support. It's going to need continuous debt and equity financing to stay alive. So probably the most risky of the group here. Quantum ticker Q& just started trading in June with the government owning $und00 million of the company. This stock is trading right around the IPO price of $60 a share, which is actually fairly strong given the sell-off in quantum stocks and the drop most stocks see after their IPO price. The company manufactures quantum computing hardware and software in the United States. So, might be a good picks and shovels play on that long-term quantum theme. Though, with all these stocks in this trend, it is still very risky on that limited cash flow and negative earnings so far. Regetti Computing ticker RGTI is one of the larger and more established quantum companies with a market cap of 5.5 billion. Revenue is expected to boom 233% this year to 23 billion. The company is still operating at negative earnings and cash flow. Like D-Wave though, that $und00 million investment from the government helps to clear up a lot of the uncertainty around funding resources and support. So, I like this one for that long-term pick in the quantum space. Aluma, ticker Almu, is the most recent investment by the government and the smallest publicly traded company on the list at just $39 million market cap, putting it firmly in that penny stock territory under $1 billion. The July announcement of up to $30 million in Chips Act funding along with a equal minority stake in the company, which would be about 10% ownership, hasn't seemed to make much of a difference in the stock, but this one could get a lot of attention soon. The company makes optole electric devices for sensing and computing applications along with semiconductor materials. At just $4.5 million in revenue and $2 million in annual cash needs, that $30 million funding goes a long way and revenue is expected to jump 59% this year. Now, one thing I noticed recently, many of those semiconductor investments have just been made over the last few months. The fact that this has all been kept extremely quiet compared to those earlier investment in Intel leads me to believe that the government is not done buying but doesn't want to blow the doors off stock prices before it does. That July announcement into stocks like Global Foundaries was made by blog post without even a word by Secretary Lutnik, let alone any big tweets by the president. Now, higher gas prices and recent rumors could point to the next phase in government investing and a few more stocks you need to be watching. The United States has a surplus of oil, but has to import gasoline because it doesn't have enough refining capacity. The government is now looking to reopen closed refineries, including one closed in 2021 that was made exclusively to refine that heavy sour type of crude oil produced in Venezuela. Reports are several companies have approached the government to buy the refinery and this could be the next push by the US to invest in resources. Shares of Valero, ticker VLOO, are already up 123% over the last year on a very favorable environment for these refineries. As the largest pure play refiner in the US, the company has a strong GF coast presence. If Washington wants more domestic refining capacity fast, Valero has the assets and the expertise that is going to be first on this list. And Marathon Petroleum, ticker MPC, would also be high on that list with 13 refineries across the US and that larger capacity of the two. Now, it's not quite the pure play on refinery since it does own pipelines and logistic assets through MPLX, but would definitely be a player if the US gets involved. Now, looking at the stocks I'm watching this week, Super Microcomput, ticker SMCI, reports earnings on Tuesday with investors watching for a follow-up to the company's July pre-announcement that sent the stock up more than 15% on that day. CEO Lang pointed to a new work with SpaceX and a growing backlog of new orders, more than $60 billion in the fourth quarter. And more importantly, that gross margin or profitability be as high as 17% or about twice of what Wall Street was actually forecasting. A nation that $60 billion in backlog orders goes a long way to continuing this revenue growth expected to 11.5 billion for the quarter, more than double from last year and an 80% growth to $40 billion for this year. And the profitability margin also helps to silence the bears with earnings now expected up 38% this year to $2.84 84 cents per share. Hell, it wasn't more than 3 months ago with the analysts were still forecasting flat earnings of just $2 a share this year. So, that profitability has improved dramatically. Our shares here have actually done really well over the last two earnings reports, up double digits in each and 24% in the most recent report. Now, I'm not sure we get something like that on Tuesday with the company already pre-announcing its earnings. But with SMCI, it's rarely about earnings and planned announcements anyway, as it is nasty surprises over accounting or employees. The stock is up 19% in the last month and without any big surprises can get back to $40 or $50 a share just on this growth. But folks, if you are not willing to hold out through these mini crashes, this is not the stock for you. I'm still holding my shares, though. I've covered the downside with call options and even took advantage of the most recent drop to $24 a share to buy another 3500 shares. I like the valuation here, but what I like even more is the volatility and the fact that I can collect a 20% plus income on those call options, reduce my risk in the stock, and still have 40% upside even if those options take the shares away. This is how you need to be thinking about SMCI, folks. Soundhound AI, ticker soun, was up 31% last week following its earnings that showed revenue up 45% over the year and gross margin of 45% well above forecast. Now, this was a very reassuring report with management raising fullear guidance and expanding in enterprise voice AI adoption. Soundhound is the leader in the voice assistant AI market, but as I said last week, it's still a very new market and just needs time to develop. the kind of market approval we saw last week, see immense investor sentiment for the stock. And with this kind of growth, 40% revenue growth expected for the year to $235 million. This takes the stock back higher and to that prior $20 peak within the next year. Symbotic, ticker SYM, traded sharply lower on its earnings last week, but closed only 6% lower for the week. Earnings weren't enough to impress investors used to the supernormal growth for the robotics logistics company, but these numbers were not that bad. Revenue increased 22% to $721 million as expected with net income moving further into the green from a loss last year. Even more positive though was systems in deployment increased by 10% to 77 over the quarter and the company continues to build on that $22 billion backlog of orders nation. This was just a classic example of a good quarter but higher expectations and investors in show me mode. Revenue is expected to accelerate to 29% growth next year. And while it's not growing as fast as some of our other stocks, this one is profitable. It's got two giant partners with Walmart and Softmag and a huge market opportunity in reshaping logistics. Now, Reddit ticker RDDT was another stock we hit last week, up almost 15% from recommending it on Monday. And I still think you can buy in here on those two catalysts that I pointed to in that video. Likely first is a settlement with Anthropic, which is going to want to settle any big lawsuits it has before it can IPO the stock. I don't think Reddit gets the $ one and a half billion dollar payout we saw recently from Anthropic, but it will be a headline number and boost the shares. We should also get positive movement on the Google negotiations for that AI content deal. Boosting the $60 million a year payment Reddit gets now from the search giant. Combine both of these with the company's strong growth of 50% plus a year and doubling in earnings should be enough to keep investors coming back to the stock after this year's sell-off. And SpaceX ticker SPCX jumped 21% last week even after falling hard on its first quarterly earnings report as investors decided that stock has just gotten too cheap and bought the dip. Now, I did cover this in Friday's space stocks and think the selling pressure isn't quite over just yet, though. The company beat revenue targets, almost doubling sales over the quarter, but is also spending $18 billion a quarter trying to build out its AI ambitions as well. That plan may pay out eventually, but it's not what worries me most near-term here. What I would be watching is the wave of supply and shares coming out over the next 5 months. You see, when a company first issue shares, when it has its IPO, it restricts employees and other early investors from selling their shares immediately, usually through about a six-month period, a lock up window that keeps a big wave of shares from just dumping on the market and really swamping the share price, bringing it down in that supply and demand dynamics. We saw the first lockup expiration hit Thursday though. An additional 912 million shares from employees and those early investors now able to sell their shares on top of the 280 million shares available from the IPO. Over the next 5 months, we'll see an additional 4.8 billion shares unlocked and flood the market. Now, Musk owns 4.7 billion shares alone, and not all those early investors or employees are going to be quick to sell. But it is still a wave of supply hitting the market continuously. Unless the company comes out with an equal wave of good news to bring in new investors, the price is just going to struggle with additional shares. It's just a reality of IPO stocks here and why most fall in that first 6 months after the IPO because because of all those new shares hitting the market. Now, you can still invest if you're in a long-term story there. I I just wouldn't jump in all at once here, rather to hold some money back for better prices through December. Join me on the Blossom Investing app free with the special invite link in the description. Don't forget to join the Let's Talk Money community by tapping that subscribe button and clicking the bell notification.