This analysis provides a disciplined framework for distinguishing genuine value from price-action traps by prioritizing fundamental rigor over market noise. It is a sober reminder that a low price is never a substitute for a sustainable business model.
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Stocks that Might Be the BIGGEST Opportunities NOWHinzugefügt:
There are some massive names that you guys have been asking me about that have just cratered down in stock price in a very short period of time, and you guys want to know, are these stocks a massive opportunity or huge trap and you should run away from them? All right, so I got to be up front with you guys right now.
This list is just wild this time around.
I mean, there's great companies, you know, [music] that are just I can't believe they're at 52-week lows, and there's complete trash and everything else in between, okay? It just it's a wild is the only word I can use to describe it. So, I'll tell you what I think, and if I think there's a massive opportunity in any of these seven stocks at these lows, and most of these stocks, guys, we've never discussed on this channel before, okay? It's a lot of new things to get into here. Let's talk about them all. Just make sure you like the video if you like getting the truth out the hype cuz that's exactly what we're going to get today, guys, and that's exactly what we do right here. No hype involved in any of this sort of stuff. Let's get down into the nitty-gritty of it. But, remember, I don't care about 52-week lows, okay? I just like I don't care about 52-week highs, either. A stock can be significantly overvalued even at a 52-week low and vice versa. So, a stock being at a 52-week low means nothing.
That's why I preach valuation. That's why valuation is so important. That's why you have to do it as a long-term buy and hold investor because I've seen it before. A lot of folks let stock price dictate whether or not they buy or not, not valuation, and that is a massive, massive mistake as a long-term buy and hold investor. That's how you get burned. That's how you routinely buy high and sell low and lots of other things like that that were, you know, we've all done at some point in time, myself included, so it's not like I'm not guilty of this. Absolutely am. But, how I overcame that problem was simply by using valuation. How did I overcome FOMO and not buying hype? By using valuation. And same exact thing, avoiding the quote-unquote falling knives that everybody talks about, is simply by, once again, using valuation.
Therefore, I'm not forced to guess anything or make predictions or anything else of that nature. I just simply use those solid fundamentals to guide me to the right price to buy that stock. All right, so let's talk about the stocks here and they get more controversial as we go culminating in the last stock that we will discuss today that's just going to be controversial.
But hey, we got to start off right here with the first one.
And that stock is McDonald's. All right, I don't know if you guys remember.
Maybe you were investing, maybe you weren't. But just a few years ago, McDonald's was the darling of the stock market, right? Nobody wanted anything to do with it. Nobody wanted Nvidia. In the toilet. I think it was at split adjusted like $15 a share, something crazy like that. You know, nobody wanted Palantir.
Nobody wanted, you know, AMD, Micron.
You name the stock. Nobody wanted that.
But everybody wanted McDonald's. Okay?
Don't understand it. It went up to like a 50 or an 80 PE. I don't even remember now. It was that ridiculous where you're just like, "Oh my gosh. Like what the heck are we doing here?" You know, Meta's trading at an, you know, eight or nine, you know, PE and we got McDonald's over there at 50 and you're telling me McDonald's has anywhere near the growth that Meta's putting up or near the cash flow or anything. Like literally McDonald's does nothing better than than, uh, you know, Meta does. Although I love, you know, me some McDonald's every once in a while. I don't really eat hardly at all cuz it's just terrible for you. You know, it kind of hurts as you get older when you eat bad foods.
But nonetheless, here it is right here at a 52-week low and I just personally it's one that I'm staying away from there. It fits a very, very particular style investor in a very, very particular style portfolio makeup and that's not my portfolio, unfortunately.
And McDonald's as a whole, I I think we all, at least here in the US, can see how much more can you expand around the world? They're literally in every freaking country. I don't know where the growth is going to come from and more importantly the quality and, you know, everything else kind of involved around McDonald's and a lot of, you know, fast food places in that particular arena.
Just they struggle right now and it's becoming less and less desirable to go to places like that. On top of the fact that, you know, it's freaking $15 for a meal at McDonald's. Like why the heck would I do that? You know, why don't I just go get something that's, you know, a little bit healthier? And whereas before, a healthy option may very well cost you, you know, double the amount, well, now I may I may be getting it cheaper than a McDonald's meal, or at least, you know, within a dollar or two.
Big, big difference from a long time ago, or even just three or four years ago. So, for me, man, I don't know where McDonald's goes from here, cuz I think in order to recapture and recapture some of the growth and get the customers back, they're going to have to cut prices, which of course means less growth, less profits. It's already a thin margin business to begin with. So, for me, McDonald's is definitely one I am out on. So, stock number two is Shopify. Now, this one is interesting, okay? Because it is caught up in the SAS-pocalypse, you know, nonsense garbage. And, you know, everybody's thinking AI is going to replace it, which of course implies that, you know, Shopify can't pivot itself. Um, Shopify also offers some things within the platform itself that AI just can't do. I don't think people folks understand whenever you set up an online shop and you set up payment processors and you set up all these other things, it's not like you just, oh, I just, uh, you know, set up, you know, just link this thing to my bank account, it just does it. It There's all kinds of approvals, there's all kinds of legalities that come into it. Um, there's a lot more that goes into that. Somebody building something on their own using AI of some sort, as opposed to somebody doing something over here on Shopify, where a lot of the agreements and a lot of all the legal framework and everything is already kind of built in there, it's it's not going to work out well for a lot of folks. I don't believe that narrative's going to take shape. And more importantly, Shopify is dynamic enough of a business to where they absolutely can just simply implement AI into it, continue to make it something better and better for the folks that use it. And of course, if they're able to pivot and make that shift, I don't think AI is going to be a problem right now for that one.
Obviously, in terms of valuation, it continues to get cheaper. Everything kind of continues to move into that, hey, this might very well be some sort of steal deal there. Now, you have to understand the business itself, understand and try to figure out where that growth is going to come from. I'm not real sure about that. That's something I'd have to look into further about that stock. There's definitely some interesting things going on right now with Shopify and I believe the narrative, more importantly, against Shopify is way overblown. So, do that due diligence, dig in deep, but there might very well be an opportunity with Shopify. But, let's look at number three, and that one is Lucid. Everything is getting worse except for revenue. It was up, but of course, when revenue goes up, the losses were bigger as well.
That's not good. That's the opposite of what you want to have happen. More revenue with an improving bottom line is what you want to have happening. You're hoping as you scale and as you sell more and as you increase revenue, you're able to also, you know, get those margins up off the floor and start getting better and better margins, but they're going in the wrong direction once again. Um they're going to have to raise capital at some point in time. They do have avenues to raise that capital. I understand that completely, but they are struggling and showing no signs of a sustainable turnaround right now for Lucid, so it's definitely one um I'm staying far, far away from. Again, I spoke out about it a long time ago. Said I don't I don't I don't get it, you know, the the valuation made no sense.
They'd have to sell, you know, way you know, they're not even close to the number they needed to sell just simply to justify, uh you know, a $10 price today, much less the prices at the dizzying highs it was at a long time ago. So, this is one want nothing to do with it right now. No need to buy the future. We'll see if they make it. I definitely don't want them uh diluting me to just simply keep the business open.
Not that I mind dilution. We'll talk about that here in just a second, but there's good dilution and bad dilution, and Lucid is clearly in the bad dilution category. They're diluting you to keep the lights on if they choose to do that.
That's the wrong situation to be in and the wrong type of stock you want to be in as an investor. But, speaking of dilution, let's move on to number four, and that is SoFi. You guys know I love SoFi, definitely uh you know, one of my top picks right now in regards to the business cuz the business continues to get better, and it's one of the companies that's using dilution the right way to grow the the Just like every big tech company has done for the history of big tech. All the stocks that are popping off right now, all the big tech that are, you know, approaching, you know, 2 trillion, 3 trillion, 5 trillion dollars in market cap, all diluted the heck out of you the first 10 years of being a public company. And, you know, for some reason SoFi doesn't, it's terrible. And it's the worst thing ever. And it just shows that there's nuance to all this sort of stuff. And it's just simply a lack of understanding there. Love this team.
Absolutely believe we're getting a steal deal here. So, I won't talk too much about it. You guys know my thoughts on SoFi. I'm going to continue to buy this stock here and continue to add it. But the next stock I've never talked about on this channel before, but I know it comes up a lot out there in the retail crowd and in my group. So, let's talk about it right now. Stock number five is Mercado Libre. All right, this one has been a retail favorite for some time.
And I believe actually Michael Burry's jumped in on onto it now. But you guys were all over this, you know, for really a year or two now. I've been hearing about it from group members and such um in regards to obviously the price getting really, really cut down. I I got nothing negative to say about the company, but I'll give you my hesitation and why I don't own this company specifically here in just a second. But all the numbers are all trending in the right direction. You're seeing um the right things. Management executing.
Everything moving in the right direction. The caveat to this, and this is where I get with all my stocks, is you have to understand what you own. I know exactly what's going on there. The problem is is I don't understand the market that they're in at all. This is not the American market. This is the South American market. Okay? [laughter] And you have to understand those dynamics, those political dynamics, the regulatory environments and all the places they're trying to operate. It is very, very different than here. And for me, I just don't feel comfortable owning something where there's a huge chunk of the business or huge risk factor, potential risk factor, that I can't appropriately account for and understand. And so, that's why I have I haven't had interest in the stock, not because I think the company is bad, but because I know I'm blind in a very, very big spot on the company itself. I personally am blind. Some of you guys aren't, some of you guys are maybe from there or travel there a lot, have family from there, or have just studied it a lot more than I have, so you have a very high understanding of that. You know, if this was European, I'd have a much better understanding of that since I've done a lot of study in those areas for various business reasons and such, but and obviously here stateside, even Canada. But man, you know, in a lot of the markets they operate in, I don't have that level of expertise. I don't have that level of comfortability, more importantly with a lot of those countries that they operate in, where they make a lot of their revenue and where a lot of their profits are generated. And that for me just makes it to where I can't do it. So that's kind of my cautionary tale there is I like the setup, but you got to make sure you understand those dynamics on a high level, or else you could very well be asking for trouble. It makes it much harder to own that business in my opinion in regards to my comfort level, okay? But moving on to number six is one that I think we all know and are at least comfortable assessing the business, and that would be Nike. All right, the last and most controversial stock is next, okay? Don't worry, we'll get to it, but we got to talk about Nike next. Um it just continues to fall, continues to crater, and I get it. Um in terms of love, you guys know I love Air Jordans. Favorite shoe of all time.
Every kid from my generation, most kids, I should say, not everyone, but most, um wanted Air Jordans. Um I still occasionally wear them today. I just have a couple of pairs now, but you know, who the heck doesn't want that?
But I can say as somebody who does work out, um you know, does various athletic events and things of that nature and such that I enjoy doing uh for health reasons more importantly now that I'm older, uh definitely can't be competitive anymore. The facts are, outside of the high high high-end stuff, you know, the professional level stuff, a lot of their mid-tier and lower-tier stuff just has not been the same quality. And that's the reason why you've seen the, you know, the rise of brands like On uh and others that have kind of risen up and taken a lot of market share cuz Nike has faltered in those areas. So, can that new CEO turn that around? I don't know. There obviously there's nobody bigger than Nike. There's nobody has better marketing than Nike. No doubt in my mind. Nobody's going to have more professional athletes wearing their stuff than Nike, right? Absolutely. And again, I just told you the pro level stuff, you know, you know, for instance, when I do running and such, you know, their marathon shoes are the best. Everybody, you know, universally or pretty universally unless you're just, you know, you just like one brand better, but nobody ever says, "Oh man, Nike's marathon shoe, their top tier, you know, $350, whatever the heck it is, crazy price shoe is not awesome."
Everybody agrees that it is. Might not be the right shoe for you in terms of fit and all that sort of stuff, but it absolutely is. But then as you move down to, "Hey, what's the daily running shoe?
You know, the speed work shoe?" A lot of those other things of that nature as you kind of get into the running, Nike typically isn't high up on that list, especially among the folks that run all the time and do those type things. And I've had the same personal experience.
It's just, man, other companies are doing it better right now. Obviously, I'm wearing Nike right now. I I I generally like their stuff, but it's been a long time since I've gone in and just been blown away with not only the look, but then also the quality as well across the board in regards to Nike stock. So, and it's shown up in the numbers more importantly. Whenever I look at the earnings, I look at everything else that's going on there.
And I understand most of the companies in retail and apparel um are sucking, but Nike should be in a spot where they're absolutely dominating like they used to in all areas because it used to be, man, you know, the you the best running shoes were Nikes. You [laughter] know, the best of everything was Nike. And unfortunately, that has changed. And we'll see what the new CEO comes in and does. Obviously, that CEO change is big. Um we'll see if he can come and turn that one around, but this one for me would definitely be a wait-and-see approach. Um I was asked about this stock, you know, 6 months ago, a year ago, and it was the same exact thing. I'm taking I'm taking a wait-and-see approach if I even have any interest or not in Nike in regards to that. So, I'm not sure there's anything else to rush into right now in regards to that, but is the next stock at a 52-week low something you should rush into or not because I know there's some folks out there telling you you absolutely should. And that stock would be GameStop. Look, I I don't know what to tell you guys. This is This is like the been the weirdest 5-year anomaly journey with GameStop and AMC uh that that I've ever experienced uh in the stock market. It has just been They're bad businesses. Just this. This whole over where GameStop's going to buy eBay. I don't know. It's like AMC buying a gold.
It was stupid to begin with. It did absolutely nothing. All they've done just destroy you as an AMC shareholder since then. And it looks like GameStop's you know basically going to take the same playbook here. You know, I knew that that eBay thing wasn't going to work. It was just shenanigans.
Um I don't know where they're going.
These management teams are aimless.
They're in dying businesses. And they're just taking all these random moonshots that get social media really really excited in their group of fans, quote unquote investors, really really excited as well. And therefore now the squeeze is going to happen or now the big run's going to happen or whatever the case is.
Um and it's just I don't know. It's kind of one of those laughable things. I want nothing to do with any of this sort of stuff. Maybe there's a trade there some of you guys out there may be able to trade that. You know, maybe some of the apes and the GameStop bulls are able to trade this thing up and down. But we're long-term buy and hold investors here on this channel. This is not a long-term buy and hold by any stretch of the imagination. So unless you want to play those games, I would stay far far away from that stock. And of course, if you want to see my complete watch list with price targets and all the stocks I'm looking to buy and really all of our super investors in our group and our other, you know, six, seven, and eight figure members who also post their buys in a group. I may have left something special for those of you guys that hung around this long. It's the pinned comment down there. If you want to see all my buy and sell alerts in real time, see their buy and sell alerts in real time, get our stock calculator. We got something special coming for folks here in the coming months. We got free coaching. We got free courses. We got the best six, seven, and eight figure discord out there to make you a better investor. That's what we're focused on.
Learning how to do those fundamentals.
Learning how to do due diligence.
Learning how to do evaluations so you can become a better investor. Check it out. It's the pinned comment. And click this video here if you want to see exactly what I'm buying this market. And click here to see my exact plan for this market. So thanks for watching. and we'll see you in the next one.
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