Transcription
Welcome to Growth Investing Mastery. This video will look at our January 2026 growth stock portfolio review. As a reminder, this is not investment advice or recommendations to buy stocks. The purpose of this video is to review our growth stock portfolio at the start of 2026.
We recently completed our mid-season earnings review process and this process always reveals new insights about our companies. This channel is focused on finding the most compelling growth stocks and this channel has a return of 442% since the start of 2024 with a long only stock portfolio.
Taking a look at our current allocations, we have three high confidence stocks. The first is iron with symbol I en at 18.8%. We then have a Sterilabs AAB at 16.1% and AppLavven app at 14%. We then have two medium to high confidence positions. Electrava with symbol ELVA is 12.5%. And figure technology FIGR is 9.2%.
This is followed by a number of companies which are medium or low confidence. First is payment with symbol pay at 3.9%. Next is Credo with symbol CRDO at 3.7%. Pattern group PTRN is 3.5%. Reddit with symbol RDDT is 3.3%. The company Dave with symbol Dave is 3.3%. Next is Scholes Technologies SH LS at 3.1%. And that's followed by Micron MU at 2.6%.
We also have five low confidence or newer positions. These include T1 energy TE at 1.9%. Bioharvest Sciences BHST at 1.4%. 4%. Then we have Super Micro SMCI at 1.2%. Duos Technologies, DUT at 1%. And Motorsports Gaming, MSGM, at 0.5%.
Some of our longtime listeners here may be wondering if we're straying from having a concentrated portfolio. One thing I wanted to point out is that our top five stocks make up 71% of the portfolio. And these five stocks will have an outsized impact on our returns. But since we have been doing investing full-time for the last year, we have more time to research. The good news is we've been finding a ton of growth stock names which meet our criteria for investment. and we'd like to have some money in the smaller names which look really promising.
Let's now discuss our portfolio changes on the month. We got a request over on Saul's board to detail more about the actual portfolio changes in the month. Shout out to the guys coming to the channel from Salsboard. Something to keep in mind with these changes to the portfolio is that our portfolio stays fully invested. This usually means that buying a stock requires selling another stock.
This month we had four new stocks, Micron, Super Micro, T1 Energy, and Motorsports Gaming. We also sold three stocks on the month which were Organogram, Hive Digital Technologies and Skywater Technology. Skywater Technology actually got acquired so our hand was a bit forced there and we made small strategic additions to the following companies. Applovin, Payment, Credo, Scholes, Figure Technology, Pattern Group, Dave, and BioHarvest Sciences. We also made small strategic trims of Electravia and Astera Labs, and those trims were taking advantage of higher prices on Astera Labs and Elva at some points during the month. Additionally, we trimmed significantly on the company Duos Technologies. I made that differentiation there about trimming significantly because our confidence changed on duos technologies whereas on electrova and astera labs our confidence didn't change but we were taking advantage of different price points and adjusting our allocations slightly. Lastly, I have been considering making this portfolio changes slide more detailed with the actual dates of the trades. So, let me know if you think that additional detail would be helpful.
Taking a look at our results, in 2024, our portfolio was up 146%. In 2025, our portfolio was up 112%. And for 2026, our portfolio is up 4% year to date. The accumulative return since the start of 2024 is up 442%. On the graph shown here, we have a graph of the last 2 years. And we have a graph on the right of the last month or the year-to-ate results. For that 2-year graph, the max window that my broker Schwab allows is to show 2 years. And I wish I had some options to show a longer time frame, but we'll continue to show this rolling two-year graph. You can see on the one-mon graph, we had a big run up in the first half of the month, but the last few days of the month took our returns down quite a bit for the year so far.
Let's now discuss some strategy commentary or how we got a lot of new insights on our companies. The time in between earning season is a good time to examine our companies closer. And we kicked off this midseason earnings review right at the start of 2026. We highlight the physical transcripts we have with a green pen. Our initial read through of the earnings transcript after it was released uses a blue pen to underline key points. These different colors allow us to see when we got a secondary insight on a stock. This process reveals a surprising amount of new insights on all of our stocks.
The first read through of the earnings transcript is often under suspense. The company reporting earnings can create a sense of fear or joy depending on the result. This will cloud our judgment and our logical reasoning. But our second read through is under no pressure. We already know the outcome of the report and we can question and dive deeper. We can think of an analogy of watching a mystery movie. The first time watching the movie, there's a lot of suspense. We don't know what happens next. But the second time watching the movie, we can catch all the small details. And this re-review helps build confidence in our companies or it lowers our confidence. Both outcomes are good for us. We can adjust our portfolio accordingly.
Jumping into the companies, our highest allocation position is the company iron with symbol IRN. They are a neocloud with exceptional unit economics. I noticed on their latest earnings call that Bitcoin was not mentioned a single time or in the press release. The company's transition to a high performance compute provider is underway and it will likely make sense for the company to run their Bitcoin miners until they break even versus electricity costs. Currently, the company has 23,000 GPUs and they're looking to get up to 140,000 by the end of 2026. The management team mentioned that those 140,000 machines will equal a 3.4 billion annual run rate for revenue and it will take up 16% of their 3 gawatt capacity. Those numbers imply a 21 billion annual run rate for filling out their full capacity of 3 gawatt. Although that 21 billion will likely be a higher number because machines installed in later years will likely be more expensive and more valuable. Iron says end to end integration is a key differentiator for their business. This eliminates dependence on third-party collocation providers and it also removes all counterparty risk. Iron has full control over execution and uptime. The management team also mentioned the next phase of architecture is 100 megawatt superclusters. These are unique configurations for high performance compute AI training. The build for Sweetwater 1 Energization continues and it remains on schedule with over 100 people working on construction. Initial energization is expected in April 2026. And on this specific project, the company said it's extremely attractive in terms of the scale and time to power.
One change to Iron's business model recently is that they raised 2.7 billion of capital. The original game plan is altered a bit, but capital raising conditions changed. The company originally planned to finance their purchase of GPUs with Bitcoin mining, but Iron ended up accelerating their timeline as competitors such as Nebius also went on an aggressive capital raising schedule. The management team detailed their plans for GPU as a service. They said this business model is looking more attractive today. Later, they followed that up by adding it's an incredibly attractive opportunity. The company's recent Microsoft deal was for 200 megawatt of capacity. Management said there's appetite from a number of parties for well above 200 megawatt per deal. Lastly, they added the vast majority of our customers have required a bare metal offering and that is their preference.
Our second highest allocation company is Astera Labs with symbol AAB. The company's product is AI infrastructure 2.0. There was a press release on January 22nd detailing that Scorpio X is shipping in volume production. Now it says in that press release they are expecting the scale up switch market to reach 20 billion by the year 2030. One direct quote was the market opportunity is substantially larger than we initially anticipated. I found it interesting they use their word substantially which you don't see too often when companies say they found a bigger TAM than they expected. The company gave additional technical details on the five feature areas that help broaden the road map and they listed these as increased radic support, hyperscaler platform specific protocols, in network computing, hypercast technology and optical connectivity. one direct quote from their latest earnings report on Scorpio. They said, "We expect this to go until 2029 just based on some of the multi-generation nature of these design wins." And the reason we view this press release is significant is because on the last earnings they said the X series is shipping in pre-production quantities. So it means these pre-production quantities have increased to production volumes. No, management indicated that Scorpio will overtake Aries revenue in 2026. And something to keep in mind is that when Astera Labs went public about 2 years ago, Aries made up 90% of their revenue. The company also detailed how Taurus drove strong growth with incremental opportunities shipping in volume and the leadership team mentioned how they're still heading towards 70% overall margins indicating a huge Taurus ramp. This indication of the Taurus ramp requires us to read between the lines a little bit. We know that Taurus is a lower margin product and if Taurus sales are able to bring down gross margins by 500 basis points, it means Taurus is making up a larger and larger percentage of the revenue. The company also talked about how customer activity around UA link continues to be strong. UAL link is a consortion of companies that's promoting a open standard. Discussing guidance and visibility, the company said there's very complex new programs. They want to be conservative and give cushions for delays. There was recent discussion of Astera entering the optical market and they said they'll intercept this market at the right time. Discussing their overall product suite, Astera said the main use case is hyperscalers taking the high performance GPU and customizing for their own use cases. Additionally, when Astera was at the NEM conference, they said their business model is superior to competitor Credo because of supplier diversification. However, Credo was also at needm and Credo gave a pretty convincing reply as well, demonstrating some of the power of their business model.
Our next high confidence position is a company apploven with symbol app. Their product is an advanced ad tech solution. The stock sold off heavily on January 30th and the media attributed this to the announcement from Google of Project Genie which is doing AI games in real time. A lot of times you'll see the market overreact to announcement like this. Google's product is not released yet and we don't know yet whether it will be a success or not. However, the Apploven stock sold off about 17% on this news, and Apploven's been fairly quiet on press releases or news recently. I'm expecting a big step up in Q4 revenue followed by a strong guide for Q1. Something to note for this company is this Q4 will be the start of seasonality for this business. The web-based platform deals more with e-commerce and that is a stronger holiday season. App 11 presents a rare scenario where a company with a large market cap is acting like a startup. App has just 900 employees for a company that's projected to get 1.6 billion of quarterly revenue. Those numbers are unprecedented for a company of this size. The new web-based platform launched the first day of Q4, but still the system is being held back by management through a referral only program. One direct quote was, "We've constrained by how many referral codes we gave out. Anecdotally, I saw some users on Twitter asking for an apploven code and the apploven Twitter account said to check their DMs." So, it seems like AppL is giving out the referral code if somebody asked them directly. And this process of referrals helped gain early feedback and work out bugs in the new system. The latest conferences suggested everything is on track or ahead of schedule with the business and the web pilot. I'm expecting the market to be shocked by what type of results this company can produce and AI technologies allow app to scale without increasing operating expenses. The system is getting more fully automated and they don't need to hire additional salespeople.
Our next company is Electrava with symbol ELVA. Their product is next generation performance batteries and they had standout financials on their last earnings report. Revenue landed at 20.5 million versus 11.6 million 1 year ago and the company had gap net income of 2 million versus0.1 million last year. Operating profit was 2.7 million versus 0.7 million last year. Additionally, gross margin increased by 530 basis points year-over-year. The company's scaling up seems to be on track and they mentioned they have a long-term technology roadmap. The company said that record quarterly revenue strengthens the scalability of their business model. The company has the cycle data now and they said this is providing rare real world evidence of performance and safety of their product. The Infinity ESS or energy storage system launched in September and pilot deployments are taking place in 2026. It was existing material handling customers who suggested demand for ESS. management said they're seeing demand for backup power and one direct quote is so our technology is I'd say ideal for high power they added energy storage could be a huge huge place for the company and so that's always great to see when a company has expanded TAM from a new product mentioned having deeper collaboration with two global defense firms detailed how robotics will be the second largest revenue driver and they have visibility into 2026 from one specific customer in robotics. Additionally, Electrovia's batteries are being trialled by a major US airline and those batteries are going into airport ground equipment and transport. Another aspect of this business I'd like to detail is the management ownership structure. The chairman and founder still owns over 20% of the shares. While he's stepped down as CEO, the company is effectively founderled. This is because the son of the chairman Raj is now the CEO. He worked up through R&D and was doing hands-on engineering with a PhD in material sciences. Later, Raj entered business development, then became a VP, and he stuck with the company when the company was on the ropes, as he says. About 8 years ago, Electrovia was nearly bankrupt, but now the business is thriving.
The next company we own is Figure Technology Solutions with symbol FIGR. The company is a blockchain marketplace for financial products. They recently had an impressive set of press releases. This detailed progress with their democratized prime product and also gave details about the launch of their blockchain stock market. The Democratized Prime marketplace is showing incredible month-over-month numbers as they scale up and Democratized Prime is a liquidity funding marketplace that delivers financing rates below what the capital markets can offer. In the press release, the company detailed various metrics going from about 50 million of volume in November to over 200 million of volume in December. The company's yield stable coin is showing strong sequential growth as well. 110 million of yields were in circulation in November and now the number is 328 million in December. The press release also showed that consumer loan volume went from 2.47 billion in Q3 to 2.7 billion in Q4. However, Q4 is sequentially slower for home equity lines of credit typically, and analysts were expecting this company to post a sequential decline in revenue. But the combination of high loan volume and new products ramping up indicates potential for a strong Q4. On the figure platform, they have more than half of the top 20 independent mortgage banks onboarded onto the platform. There's also a growing base of fintech, solar and home improvement companies that are onboarding. The company has a disciplined cross structure of their business and loans do not require significant human touch. Typically, they mentioned that all consumer credit and other asset classes are potential addressable markets for the company on the blockchain stock market. The company's ATS trading system or alternative trading system for stocks was launched recently and the SEC is okay with it. But they're still awaiting further approval of the blockchain native solution from the SEC. There's potentially positive developments on the regulatory front with SEC clarifications and one key takeaway is that figure having a working solution ready is an enormous advantage for the company.
Our next company is Paymentus with symbol P A. They're a SAS payment solution for enterprise merchants. The revenue beat from last quarter stood out to me. The company had guided for 278 to 282 million of revenue and they landed at 311 million. Future guidance for the next quarter was listed at 307 to 312 million. And since we followed this company for a while, it's typical that this company guides at the run rate and then beats their guidance significantly. A few select quotes from their latest earnings report include saying, "Results are exceeding our expectations in all key areas." They said, "There's a phenomenal quarter of onboarding activities," adding that there's substantial bookings and strong backlog. The company detailed how cash flow is a strength of the business. and they said incremental adjusted ebida margin is very high. There is a new use case for the payment platform which is B2B payments and that's a new vertical that is growing fast. The company's platform is vertical agnostic. They mentioned that supporting birectional payment rails is proving to be a good decision delivering results. Customers are using more of the services than anticipated, said the management, and days of sales outstanding are down 30% year-over-year. This shows the operating efficiency of the company has improved further, and the leadership team at Payment detailed how CIOS and CTO's now think of us as a partner in solving key business issues. My top concern for Payment is that transactions processed grew 17% year-over-year. And I'm not quite sure how that aligns with onboarding lots of new customers, which you would think would push that number higher. So that is holding me back from making this a top confidence position, but I'm still really optimistic about the prospects for payment.
The next company is Credo with symbol CRDO. Their product is nextgen AI networking hardware. The company had an impressive showing at the NEM conference explaining their larger vision. Crito does vertical integration and this allows for system level ownership. They can qualify, ramp, and deliver at scale and multiple new product launches show the pace of the innovation. The company's new Weaver product allows older DDR memory to have massive performance upgrades. This can give DDR memory 30 times the memory capacity and 8 times the bandwidth. It's technologies like these that are revitalizing the market for DDR RAM. The company's new ALC cables are similar to AEC cables, but with a longer range. Additionally, Credo is entering the market for optical solutions. These optical solutions are being delivered to customers such as Oracle. It allows for data centers to connect to up to 2 km away or GPUs can connect from one building to the next if the buildings are close enough. One direct quote from management was we're really really bullish on ALC cables. Additionally, revenue is diversifying amongst customers and this was previously a large concern of mine. Lastly, one analyst said this. So, you guys in a very good way kind of blew up my old model.
The next company we own is Pattern Group with symbol PTRN. Their product is a brand accelerator platform. The company's only had one earnings call since IPO, but Pattern was also at the NEM conference as well. Recently, the company said they had strong execution in international. Additionally, there was standout growth in non- Amazon marketplaces. International revenue in the last quarter was 53 million, which is up 72% year-over-year. This company has a clean balance sheet as well with 313 million of cash and no debt. The management describes a platform as a technology infrastructure layer for global e-commerce. They also added they don't care which platform wins. For example, in Mexico, they're on both Amazon and Marcato Libre. The company said NRR is the most important metric to track and it's a good sign that NRR has gone from 115% to 118% and then to 122% in the last few quarters. On their business model, they have a 90day sales cycle. The pitch is getting easier and costs are going down. The company named one of their main competitive advantages, which is actually taking inventory. They said other businesses want SAS in a capital light business model, but management says their model throws off free cash flow, evida, and beats them 10 ways till Sunday. Asked about their competition further, they said they're sort of alone on competition. Continuous optimization loops on the model make it stronger and they're investing in the intelligence layer. they said. The company detailed how each transaction strengthens the model, enhances efficiency, and increases operating leverage. Pattern Group is also investing in the physical layer. They have continued warehouse automation and the recent launch of their West Coast Fulfillment Center in Las Vegas. One potential concern for this company is that 63% of revenue in 2024 was from the health and wellness category, but they said now they're getting a foothold everywhere, and that includes other categories of products being sold. Yet, Amazon's e-commerce platform still makes up a vast majority of revenue for Pattern. And we're looking to see this company diversify revenue amongst e-commerce platforms over the next few quarters. and management may have inadvertently given a hint at the next quarter. They said Q4 was strong last year and they mentioned having a potentially challenging comp versus the number, but if we take into account their models improved and their business models gotten stronger, it's likely this company will have another strong Q4.
The next company we own is Reddit with symbol RDDT. Their product is community-based social media. The company's local content framework is helping to expand internationally. Reddit is marketing for the first time. The CEO said, "We've never marketed before." Back in September, the company saw the launch of Reddit Pro Tools, increasing content sharing, and that could be a good sign for the Q4 results. Something that stood out to me was that advertiser count was up 75% year-over-year. And this is growing much faster than user and revenue growth. That's promising to see that advertisers are clamoring to get on the platform. And Reddit added accounts across channels, including large, mid-market, and small businesses. Advertisers are unlocking higher return on ad spend and they're spending less time managing campaigns with Reddit's tools. The company is optimizing their funnel on app installs and conversion for user growth. Another standout for this business is the strong growth and profitability. Next quarter is forecasted with adjusted IBIDA of 275 to 285 million which would be up 85% year-over-year at the top end of that range. But our top concern for Reddit is still the user growth and we like to see user growth step up a bit versus the revenue and profitability growth. On the other hand, average revenue per user numbers are still well below the top tier competitors such as Meta. Something to keep in mind is that Reddit is heading into the seasonally strong Q4 quarter, and Q1 guidance is likely to be down sequentially, and that's expected. This seasonality surprised the market the last time around because Reddit was recently public back then. So, the year-over-year numbers for Reddit's guidance will be relevant. And if the market punishes a stock for its expected seasonality, it could be a buying opportunity here.
Our next company is Dave Inc. with symbol Dave. They are a membership-based alternative bank. The stock has been trending down possibly on the credit card rate capping announcements, but Dave doesn't use a traditional APR style system. but it could be impacted still. The valuation looks pretty reasonable for this company with a 2.3 billion market cap, 151 million of revenue, and being deeply profitable. Adjusted net income in the last quarter was 61.6 million, up an impressive 193% year-over-year. The company exceeded the rule of 100 for the second consecutive quarter and they're seeing better net monetization per transaction and higher member lifetime value. The model version 5.5 is an upgrade. In September was the first month where they saw the impact of model 5.5. This model upgrade could indicate a strong Q4 because they'll have the full benefit for 3 months. Now, the company also said there's tailwinds from the new fee model and underwriting improvements. Monthly transacting members are accelerating. ARPO is rising and market conditions are favorable. The company's arrangement with Coastal Bank frees up cash for the company. One direct quote from management was basically all aspects of the growing model are firing on all cylinders right now.
Our next company is Scholes Technologies with symbol SHLS. They are a utility scale solar company that's entering the energy storage market. On the recent earnings call, the company detailed how they have record backlog and awarded orders of 721 million, which is up 21% year-over-year. The CEO said, "I couldn't be more positive about our backlog and awarded orders." And the company has new agreements signed with EPCs and developers on energy projects. Their battery energy storage systems offer two new use cases, grid firming and data centers. Talking about their storage systems, they said things are progressing ahead of plans. Some standout financials for this company are that gross profit was 50.3 million versus 25.4 million last year. Additionally, gross margin in the latest quarter was 37% versus 24.8% last year. The company's Eboss solutions or electrical balance of system are often custom engineered carrying higher margins. So the traditional side of their business has improving margins which is a good sign. When discussing tariffs, the company said tariffs can be passed on to customers. The company is recently scaling up international sales and they ship three projects in the quarter. Two were in Latin America and one in Australia. The company said there's a growing pipeline in Australia. One big takeaway for me is that the company is getting record revenue now, but they IPOed at over $30 a share when they had less revenue and now the stock trades around $10 a share, which presents an attractive valuation. One final note I had was that shares outstanding has gone down over the last 2 years.
One new company we added in the month is Micron with symbol MU and they're a memory maker for AI systems. Companies such as Super Micro have detailed how high bandwidth memory is now the bottleneck for AI systems. And this is in contrast to 2024 where the bottleneck was GPUs. If you've been following our content for a while, you may remember that Micron used to be a holding of ours. We ended up selling Micron in late 2024 as this was a much different company back then. At the end of 2024, the consumer side of phones and computers dropped off with a glut of over supply and high bandwidth memory was just ramping production at the end of 2024 and it was sold out. While being sold out is a good sign, it meant there was little upside to that projected revenue possibly. This company's guidance is really what convinced us to start a position here. While the posted results of the last quarter were strong themselves. On the last quarter, the company had guided for 12.5 billion in revenue and landed at 13.6 billion. Additionally, in the last quarter, gross margin was guided for 50.5% and landed at 56%. GAP EPS was guided at 3.56 and the company delivered 4.6. 6. A very strong beat. Yet, the next quarter guidance is absolutely crazy. Revenue is guided for 18.7 billion, which is up 132% year-over-year and 38% quarter over quarter. GAP gross margin is guided for 67% next quarter, which is 3,000 basis points year-over-year and 1,100 basis points of increase quarter over-arter. Even more impressively, earnings per share was guided to $8.19, which is up 481% year-over-year and 78% quarter over quarter. The company mentioned that capex spend for next year is going up as well. There's new facilities being built in New York State, Boise, Idaho, India, and Hiroshima. And there's already existing manufacturing in Virginia, China, Singapore, Taiwan, and Japan. Yet, the company is still struggling to keep up with demand even with surging prices for their products. One announcement for this company is that they acquired a company called Tong Luo. They paid 1.8 billion, and this is a Taiwanese company to help boost production for Micron. I thought that was an interesting detail that it's an American company buying a company from Taiwan.
The next company in our portfolio is T1 Energy with symbol TE. This is a new position that we started recently. The product is vertically integrated US-based solar panels and systems. This company has an incredible revenue ramp starting from scratch one year ago. Over the past year, revenue goes from 0 to 3 million to 54 million to 133 and to 211 million in the latest quarter. What really stands out though is next quarter analysts are expecting 424 million of revenue. That would be up over 100% quarter over quarter if they land there. Additionally, the company is expecting to post their first gap profitable quarter. The technology uses poly silicon and wafers coming from the company Corning and T1 has also made promising partnerships with Next Tracker and other solar companies. In order to ramp up production fast, T1 acquired production facilities from a Chinese company that was leaving the American market. The company mentioned their production facilities also enable other types of manufacturing. Here's a direct quote. They said, "Standing up a domestic endto-end polysilicon supply chain should strengthen our national ability to produce semiconductors, advanced materials, and grid and space technologies. All of which involve common inputs and production processes. Recently, the management team said they're reaching daily production records. They got up to 14.4 megawws per day in October. That would make their annual capacity be 5.2 gawatt. But I do have some concerns about this company if the next quarter is benefiting from a one-time liquidation of inventory. The company mentioned they have some inventory to process through. And after this next quarter of higher revenue, analysts projected drop off. And we're still trying to determine if analysts are just filling in the blanks or if they actually know something. Another concern is this company has 700 million of debt compared to a 2.25 billion market cap. And this company could require additional financing if they're not getting consistently profitable. They also mentioned there's potentially long lead times at suppliers and this could potentially tank an upcoming quarter if they get supply blocked. Management described the upcoming year as a bridge year for us in relation to getting to a fully domestic supply chain. However, they can still sell in the US fine with not all domestic content, but they will get what they called stacking bonuses if they meet the requirements for the domestic supply chain.
Our next company is Bioharvest Sciences with symbol BHS ST. [clears throat] They do plant synthesis for consumer and industrial products. And I've regained a little bit of confidence in this company after trying the electrolyte drink and also looking at their CDMO or manufacturing pipeline. The drink mix was above my expectations on flavor and packaging. These electrolyte drinks are a product I already use and I also tried out some competitors. one called IM8 from the company Prenetics and the other is called Liquid IV which is the leader in the category. In trying the BioHvest lemon lime flavor versus the liquid IV lemon lime flavor, I felt that the Bioharvest one is much better. But of course, that's my subjective take and I could be wrong about BioHarvest doing well in this category. I also went in depth reviewing the pipeline of manufacturing deals in place or proposed deals and I have been skeptical of their timeline on these deals and I'm looking for some announcements soon. They did say a lot of these deals are confidential or they signed NDAs, but we're not going to wait forever for announcements if they're not able to deliver results. We identified four potential manufacturing deals they have in progress. The first one they describe as an undisclosed NASDAQ listed pharma company. In some quotes about this potential partnership, they said they're developing a complex plant derived molecule that is already part of an approved drug product. And they added they're using botanical synthesis platform as an alternative supply route for that active ingredient. But one thing to keep in mind here is there's a lot of tiny NASDAQ biotech. So, we don't know the market cap of this company they're working with or the scale. The second manufacturing prospect is a cosmetics agreement. They said payments are milestonebased and they signed an NDA for stage one and they're using botanical synthesis for high value fragrance and scent molecules. The third deal is with a company called Tate and Lyall for plant-based sweeteners. This supports lower sugar and healthier food and beverage formulations. The emphasis is on a strategic partnership and they made it clear that this is not a small standalone deal. And I do like that they're able to name who they're working with on this deal. The fourth manufacturing prospect is called Saffron Tech. Bioharvest will maintain a 25% ownership in the final compound. Saffron is a rare plant that is expensive to harvest and creating the plant compound synthetically could be a high margin business.
One more new company we own is Super Micro with symbol SMCI. And this company used to be a top conviction position back in 2023 in the start of 2024. They are an AI hardware manufacturer and reseller. The company builds enterprise level systems with Nvidia, AMD, and other GPU providers. I mentioned this was a top holding and we ended up selling the company because they encountered accounting issues. The company delayed a yearly filing and then their auditor resigned. These issues were timed well with a short report and the stock price absolutely cratered after that. I still see this company having elevated risk due to the prior issues. But our take now is that the company is mispriced as the market punished the stock previously. Super Micro has 18.6 billion market cap but is guiding for 10 to 11 billion of revenue next quarter. That would make the run rate price to sales less than 0.5. One important note is that 10 to 11 billion of revenue does include 1.5 billion of revenue that was meant to land in Q3 but got moved to Q4. So what ended up happening was the company missed their Q3 guidance numbers but their Q4 guidance numbers are a huge step up. When we look at peers in the industry, one of the closest peers is a company called Celestea with symbol CLS. They have a similar business model of selling to hyperscalers. Celestea had 3.65 billion of revenue in their latest quarter, but they have a market cap of 35 billion, which is about double of Super Micro. So when we look at Super Micro versus Celestica, Super Micro in this latest quarter will have about three times the revenue and half of the market cap. On this latest call, Super Micro said they received a 13 billion sales order recently. And the company talks of their annual capacity reaching a 100 billion run rate for revenue. The geographic mix for sales is interesting. The US makes up 37%, Asia is 46%. Europe 14% and the rest of the world 3%. US revenue was down 57% year-over-year in the latest quarter. But some of that sequential decline is from missing that 1.5 billion in Q3 that moved to Q4. However, revenue from Asia grew 143% year-over-year. So you can see how Super Micro's business is growing really strongly over in Asia. Super Micro also introduced their federal program intraquarter and if Federal starts ramping up soon, it could help their US sales quite a bit. The company's newest solution is called Data Center Building Block Solutions, also called DCBS. And this part of the business is higher margin. They mentioned margins at 20% or higher. We're ramping a new product line at mega scale. Management said when analysts pressed the management on their guidance of 36 billion of revenue next year. The management said it's a very conservative number and then they followed up by saying I guess we try to be very very conservative. One key takeaway is we will re-evaluate on the next earnings to see if this is a company we want to be a bigger position. That statement is true about re-evaluating for every company after earnings. But we do have a lot of question marks here if this business is really ramping up consistently.
Another company we own is Duos Technologies with symbol DUT. The company makes edge data centers and the edge data center is placed in what looks like a shipping container. The company has a patent on their clean room solution. I ended up trimming my position a couple of times throughout the month and this is because I realized this is a more complex story than typical with a major business pivot. The company has a legacy business of existing energy contracts with a company called APR Energy and DOS actually owns 5% of APR Energy. But the part of the arrangement that is a bit strange is that the Duo CEO is also the CEO of APR Energy. These energy contracts are set to wind down in 2026, but I'm not clear on the timeline for this revenue drop off before their transition or business pivot. And the amount of revenue that's coming through edge data centers is only just ramping up now. So my concern centers around this transition or the business pivot and I'm wondering if we could see a quarter where financials look poorly as the business model switches. Although I still believe this company has a good chance to execute their plan, which is why I'm still a shareholder. It could take a year or more to fully execute the pivot and we'll be focused on how the edge data center revenue looks next quarter. But the good news is the company seems on track for their edge data center roll out. There was three recent press releases. They landed their first edge data center in Illinois and they also launched two more for schools in Texas.
The last company we own is a new position called Motorsport Games with symbol MSGM. The company makes racing games and esports products. This is a really tiny company with 3.1 million of revenue which is up 72% year-over-year. The headquarters is in Miami with about 40 employees. The market cap is 22 million and daily volume for this stock is about $500,000. So that low volume might be relevant information depending on your position sizing. This company just reached gap profitability in the last two quarters. The valuation seems attractive here with a run rate price to sales of 1.7 and a trailing price to earnings of 11. The company has a crystal clear balance sheet of 4.5 million of cash and no debt. And while 4.5 million might not sound like a lot for most companies, it's important to keep that in the context of a 22 million market cap where about 20% of the market cap is in cash. Motorsport Games did a IPO back in 2021, and there was a lot of hype for esports back then along with a meme stock mania. The stock price got all the way up to $380 a share, but now it's at $420. And the stock price had tanked after restructuring the business twice, and they did headcount cuts. One detail that put me over the line for starting a position in this company was their December update about their game Le Man's Ultimate. The update said they recorded its highest concurrent player count. They got up to a peak of 8,740 players as their maximum. There's also a new online championship system which seems to be keeping players online. This company is also launching console games in late 2026 and early 2027. Profitability for this business is getting stronger. They had adjusted IBIDA of 1.1 million in the last quarter and that's versus 0.1 last year. Because this company is gap profitable, it looks like cash on the balance sheet will be increasing each quarter now. And the company even said we've entered a profit generation phase. But we'll want to see that gap profitability continue for each subsequent quarter. That will indicate this is a consistent business that can make money. It also seems like this company has the potential to be an acquisition target. The company is growing. They have a clean balance sheet and a low market cap.
Getting into the companies we sold this month. The first is Skywater Technology with symbol SK YT. They are a US-based semiconductor fab working with Quantum Designs. And the company just got acquired by ION Q with symbol IO NQ. ION Q agreed to pay $35 a share or about a 1.8 billion market cap and we sold our shares on the date of the announcement. This was a strong result for us as we got over 100% return holding since November. And this company did seem dramatically undervalued when we first found it at a 850 million market cap, but it seems like others in the industry noticed it was undervalued as well. Growth had come through acquisition for Skywater, but they were getting 151 million of quarterly revenue and they had a nice setup after their own acquisition. They had three facilities. Two were for advanced designs and the third was for volume production which they acquired. The last quarter that Skywater had posted was an overperformance and analysts were surprised by their results. The company was adding customers in the emerging field of quantum compute. We view this as a smart move by INQ to control the production and the supply chain. And it was announced in the press release that Skywater will continue to work with existing contracts for IonQ competitors as well. And one of the main reasons we sold is ION Q only has 40 million of revenue and a 16.3 billion market cap. That makes it still a story stock at this point because they don't have a lot of revenue versus that big market cap. And there was a strange psychological phenomenon for myself which happens with a lot of other investors as well. And this is wishing we had more shares or a larger position size. Usually when we close out a position, it's because of bad news on a company. But in this case, it's more of a bittersweet moment to part ways with a company we found promising. But if we look at this a bit more logically, we don't know the future and past events may seem obvious in retrospect.
The next company we sold is Hive Digital Technologies with symbol Hive. They are a Canadian Bitcoin miner that's moving to high performance compute. The last conference call this company had was highly unusual. The chairman started talking about let's get into my macro recap and he went on one of the longest tangents I've ever seen about a lot of different topics that weren't really relevant to the business. Another thing that bothered me with re-reviewing this company was the chairman kept mixing up terms in the introduction of the long rambling speech. For example, he said hydroelect electric is producing over 10 xahash of electricity in Paraguay. And it looks like he meant to say gigawatts there rather than xahash. And that could be understanding of a one-time mistake, but there was another spot where he is mixing up megawws and gigawatt. And keep in mind, these are supposed to be prepared remarks, so they should be pretty polished here. One more concern that was raised for us is that an additional 100 megawatt of mining capacity in Paraguay is coming online, but not until late 2026. This means the company's Bitcoin mining capacity will be mostly flat for a few quarters. Additionally, this latest quarter had lower net income and lower adjusted IBIDA than the previous quarter, even with higher revenue. They mentioned for Blackwells coming online, they have 1,000 Blackwells in Q1 of 2026, 1,000 Blackwells in Q2, and then 4,000 Blackwells in Q3. But this seems like a really slow timeline again. So, we're really going to have to wait till Q3 of 2026 for this business to ramp up. Additionally, the Bitcoin price has been trending down this quarter. So, the company's unlikely to post impressive numbers. And keep in mind, this company still needs to do conversion for its tier 3 upgrades of data centers to get to the higher quality tier 1. They mentioned there's an associated $30 million of capex for this. The company has a collocation deal in New Brunswick, which initially sounded really promising to us. But something that stands out from what Iron said is that colllocation deals are worse economics. As I was digging more into this company, I learned that the Bitcoin's pledged that Hive has is an arrangement with their minor bitmain. This adds some custodial risk to the company. A couple more things that bothered me recently. are the management is proud of building a Bitcoin miner with Intel that was not competitive. So the chairman was reminiscing how they built this hardware product with Intel. But then when I was asking AI if Hive itself uses their own miners, they said they abandoned those miners because they were not competitive with Bitain miners. So this really isn't a story that management should be bragging about. It's more of a failed venture they had. The company is doing a lot of ESG initiatives and they have massive charity in Paraguay, but that's all with company money. And it didn't really stand out to me at first. They had mentioned they were doing a little bit of charity in Paraguay, but then when I learned about the extent of the charity, it seems extreme. They're renovating HVAC, flooring, and giving a lot of school supplies in Paraguay. And again, I feel like this money should be from the chairman's own pocket, not from company money. Lastly, they said that the company is hoping for a Bitcoin rally and a Federal Reserve cut. And I really don't like to see a business model that's hoping on some macro influences outside of their control. The one silver lining here is that valuation is still pretty low compared to US-based peers with similar business models. And a lot of our thesis was based around this low valuation. But there's too
Many concerns otherwise to be holding anymore. The third company we sold this month is Organog with symbol OGI. They are a cannabis producer that's based out of Canada. I was on the fence for a while about selling the stock or not, and it just seems like the story has become more complex over time as we learn more.
One thing I picked up recently is I realized the company said they're going to get greater than 300 million of revenue next year. But on the second read through, I realized they were talking about Canadian dollars and not USD. When we convert that to USD, this means they're saying they'll get at least 54 million of USD per quarter on average over the course of the next year. The problem here is the current quarter got 57.5 million of revenue in US dollars.
Another complication with this business, I discovered that a company called British American Tobacco, BTI, owns 45% of the company. And the strange thing is this company's not listed as an institutional owner due to the unusual financial arrangement. BTI invested money for something called the Jupiter Fund which organagram controls and this seems like a fund that's dedicated for acquiring companies. This Jupiter fund still has 58 million of capital to deploy. But then we started thinking about how this is a company that has to grow through acquisition it seems.
Additionally, Organagram was proud of the fact that they're getting the EU GMP certification soon. But when we looked at competitors to Organog, many of them had the EU GMP certification already. The company mentioned they got a 14,000 kg annual capacity increase recently. That sounded like a lot until I realized they have over 100,000 kg of existing capacity. So, it's not a huge percentage increase to find this efficiency.
Overall, there was not enough organic growth or capacity to accelerate expansion significantly in our opinion. And a lot of our thesis here if we decided to hold would be this is an undervalued company and an undervalued sector. But we do not know when the sector may be re-evaluated by the market and we could be waiting a while in the meantime.
Taking a look at some promising new ideas for the month. The first company to introduce is Accelerant Holdings with symbol ARX. Their recent IPO, which is an exchange connecting insurance underwriters with risk capital. Revenue was 218 million in the latest quarter, which is up 57% year-over-year. The company had adjusted net income of 80 million versus 19 million last year. They also had adjusted IBIDA of 105 million versus 26 million last year. The company started in the UK and the EU, but they expanded to the US. Their headquarters is in the Cayman Islands, which is for multi-jurisdiction. It's always a bit of a yellow flag to see the headquarters in the Cayman Islands, but it's something we're willing to potentially overlook if the rest of the business seems really promising. This company also has a nicel looking balance sheet with 1.66 billion of cash. Additionally, the stock price has come down significantly since they IPO, making it a better value.
Another company we looked at is called Energy Vault Holdings with symbol NRGV. They do utility scale energy storage in three categories of battery, gravity, and hydrogen. The company had 33 million of revenue last quarter versus 1 million a year ago. Next quarter is projected at a massive step up of 141 million of revenue. But this is in context of a previous revenue high of 172 million in 2023. That was with a single project. And when that project completed, the revenue collapsed. The company made a bit of a business pivot, shifting towards ownership rather than just selling to companies. And this company lost 27 million of net income with the context of getting 33 million of revenue. The gross margins are fairly low here at 27% with a lot of ups and downs in the gross margin.
The next company is on the Canadian Venture Exchange and it's called Zedcore with symbol ZDC.V. They do AI enabled surveillance and have 247 live monitoring. Their main markets include construction, industrial, utilities, and retail. Revenue in the last quarter was 11.5 million, which was up 75% year-over-year. The company has a market cap of 465 million and a gross margin of 63%. Our big concern is that profitability is staying flat or it's not ramping up at the same rate that revenue is. I also thought a run rate price to sales of 10 is a bit expensive for this business.
The next Canadian company we looked at is called Aneria with symbol ang.to. They have a waste to energy platform and it converts to renewable natural gas. The product is a proprietary separation system that is sold to utilities, municipalities and agriculture. revenue was 37 million, up 77% year-over-year, and they had their first gap profitable quarter with 1.7 million of net income. The market cap of 331 million seems reasonable for this company. One interesting detail about this company is that 46% of sales are in Italy, and we'd probably want to learn more about why Italy is a main market for this company.
Taking a look at more promising technology ideas, we have the company Blaze Holdings with symbol BZ AI. They make a fabulous AI chip for edge data centers and their chips are called a graph streaming processor or GSP. It's a full AI system for inference. The company had 11.9 million of revenue last quarter and that's up from zero a year ago. next quarter is projected to land around 22 million of revenue. But this company is still deeply unprofitable with negative 26.3 million of net income last quarter. We discovered 88% of sales come from a single Asia-Pacific customer and the company's still raising money. While the financials still look really uncertain here, this does sound like a promising technology name if they can scale up and gain more customers.
Another company we looked at is Figma with symbol FIG and they're a recent IPO. They have a SASbased business model for design and project management software. Revenue was 274 million in the latest quarter which is up 38% year-over-year. And it looks like this will be a profitable company on future quarters post IPO expenses. The company had 131% NRR and that increased two percentage points. This quarter was also the best sequential quarter of net revenue added before. Figma had massive hype at the IPO, getting up to above $140 a share, but now it sits at $27 a share and has a much more attractive valuation.
The next company we looked at is Cloudflare with symbol net. This used to be a top confidence position for us some years ago. They're a cloud security platform for protecting apps. The company had guided for 543 to 544 million of revenue and they landed at 562 which was up 31% year-over-year. This stands out because the company had been stuck in a growth range of about 27 to 28% on most of their previous quarters. NR was 119% going up 5 percentage points quarter over quarter and that's really impressive for their scale. The company recently raised $2 billion through convertible notes but it just seems crazy to us that Cloudflare still needs to raise money because they aren't gap profitable yet.
Taking a look at some promising new hardware ideas. The first is SanDisk with symbol SNDK. They're an old school memory maker that is seeing huge demand from data centers and they're a recent spin-off from a larger business. The company just reported this week they had guided from 2.55 billion to 2.65 billion of revenue and they landed at 3.03 billion which was up 31% quarter over quarter. Even more impressive, next quarter revenue is guided from 4.4 to 4.8 billion. that would be up 58% quarter over quarter. I checked the prior earnings call for this company, but I haven't read through the report on the most recent one yet. I'll be looking to determine if Sandis can scale up further or if they've reached capacity.
The next company we looked at is called SI Time with symbol SITM. They make timing devices in semiconductor products. The company sells through global distributors in Asia. The data center part of their business is growing over 100% year-over-year. But other parts of the business are a drag that are growing in the single digits. This company seems hungry for acquisitions even though they are not gap profitable yet. And that's not really something we want to see too much because if they want to buy a company, they'll have to go through debt or delusion to do that. Revenue for SC time in their latest quarter was 84 million which is up 45% year-over-year. But the market cap for this company is 9 billion and that makes the run rate PS27. So this company seems really expensive to us right now.
The last hardware company we looked at is called NA Technology with symbol 2408.twanbased DRAM maker. Revenue in the latest quarter was 959 million which was up 358% year-over-year and 60% quarter over quarter. Additionally, next quarter guidance analysts expect 1.36 billion. Analysts also expect massive steps up in profitability as the prices are rising for DRAM. But our biggest concern here is they say they are reaching capacity and their spending capex for their 2027 expansion. So their revenue is likely to flatten out a bit assuming they can't raise prices further.
Wrapping up with some final thoughts on the month. We've had some up and down results to start out the year and we're getting ready for the upcoming earnings season starting soon. Our new powerful stock screener unlocks a world of new companies to research. This helped to find companies such as T1 Energy on the month. And we have a video on the channel going in depth on that stock screener. It's the previous video if you want to check that out. I'm especially interested to see how the new screener performs after company's report.
This concludes the video for the month. And let me know what you think on any of these new stock names or the new promising ideas. As a last reminder, this is not investment advice or recommendations to buy stocks. Thank you for listening.