All my oil stocks are gone for the year.
I’ve been riding that trade with Frank since 2021, and Exxon’s up five or sixfold since then.
When every major oil company is sitting near all-time highs, you have to take that dough.
So now I’m sitting on a bunch of cash, and I have to do something with it. Some of it can go into pipelines, because as you get older, those dividends start to look pretty good.
The rest is going into a stock that fell from $200 to $75 while most analysts and traders wrote it off.
My screen flagged it in August, and I think it’s where the next leg of the AI money goes, the same way the internet money moved after 2000.
Here are the details…
My Screen Flagged A $200 Stock At $75
I use a tool called Sybil that looks for stocks everybody didn’t like. The good thing about Sybil is I don’t have to think too much. The tool does that for me.
In August, it picked out Booz Allen Hamilton(BAH). It was a $200 stock and went down to $75.
Booz Allen is a consulting firm, and a lot of its work is for the federal government. It made headlines back in 2013, when one of its employees leaked classified documents from the National Security Agency.
I’m sure you’ve heard of him, Edward Snowden.
Accenture already had its run this year. Booz Allen hasn’t, because it’s a little lower profile these days.
Somebody Still Has To Make The AI Work
The market got overly focused on the AI build-out, the data centers and stuff like that. If you own an index fund, you own a lot of that build-out, whether you meant to or not.
But even when you get AI and you have the prompts, you still want somebody to help you with it. I don’t see how that business changes.
Are you going to go buy a CoreWeave or something like that? Or are you going to buy a company that still has growing revenue, is still profitable and is ready to use AI to do the work it already does?
I think that’s what people want.
It reminds me of right after the dot-com bust, those three years in 2001, 2002 and 2003. It was the companies that learned to use the internet that started the second wave of technology in the next decade.
I think we’re going to see the exact same thing, and the money’s already starting to flow in that direction.
I’m Giving This Trade Until January 2028
The easiest way I see to play it is the January 2028 110 calls. A call is the right to buy a stock at a set price, called the strike, until the option expires. Here, that’s $110, and you’ve got until January 2028.
If Booz Allen is above $110, plus whatever you paid for the call, when it expires, you make money. If it isn’t, the most you can lose is what you paid.
This isn’t a five-day trade. You have to let the narrative play out, and when this stock trends, it tends to trend for a long time.
I would like to see more institutional open interest, meaning more big funds holding options on it. It’s a thinner-traded stock. But still, the signal was good.
Ready or not it’s election night
The results start coming in tonight. Tomorrow at 10 a.m. ET, on Day 3 of the Midterm Money Multiplier, the team trades the result on camera, and Garrett Baldwin grades every call from Monday and Tuesday on air, mine included.
On the show:
- Whether my Booz Allen calls, and the 35-cent bet I made today that volatility drops after the vote, held up on day one
- What AI compute futures are, and why Hans Albrecht is watching them
- The stretch of 2027 when Garrett expects the cycle to turn, and the debt-market stress he sees on the way there
- A one-page card with the dates that matter from here, which you only get if you show up
There’s no charge to get in. Register and the “3 Energy ‘Tollbooths’ Set to Collect No Matter Who Wins” briefing lands in your inbox right away.
Andrew Giovinazzi