The twenty twenty four election is over. Congratulations to everyone who made it through it. Donald Trump is the president elect for the United States of America. The betting odds were right. The polls were wrong. And I suspected this much because the betting odds have money behind them. The polls do not. Today is Wednesday, November six and assalamu alaikum to everyone. the markets have been doing extremely extremely well the dow jones is up three and a half percent the nasdaq is up two and a half percent s p is up two point three percent and the russell is up more than five percent so as I've been saying for a while I thought the small caps were going to do well in detail end of the year And perhaps we're just getting started here. Dollar index is up. And the VIX is down twenty percent. So a major source of uncertainty in the market has now been removed and the market is telling us this much. The Fed has started its meeting and will come out with a interest rate decision by the end of this week. The market is pricing in basically a certainty for a twenty five base point cut this time around. Now, Will the Fed guide towards another twenty five base point cut at the end of the year? Or will it guide towards an increased probability of a pause? In December, we'll have to wait and see. In the meantime, our our stocks have been doing extremely well. Tesla is up. Close to fifteen percent today. I mean, yesterday I was saying I thought maybe Tesla would get to three hundred and above three hundred by the end of the year. It may do that today if it continues on the momentum that it's on. Nvidia is up a bit dear. Iris Energy, they had their update today. We'll go through that. Irish Energy up twenty two percent today. HIMS is up ten percent. We also have a dividend stock that's up ten percent. So, you know, we have, I don't know, five names in our portfolios that are up double digits just today. Enphase is down. Seventeen percent as is first. Solar is down big today. Eleven percent. The reason being, I think that there is speculation that some of the incentives that were given to solar energy may be going away under a Trump presidency. Luckily for us, we're not exposed to either of these names in our PIF portfolio. So if you've been following along, You've been shielded from this. And gold is down a bit. People are in more of a risk on mood. Investors are. So we're now at twenty six hundred for gold. Bitcoin is up eight percent. We hit a new all time high yesterday. Doge is up a cool, fourteen percent and Solana is up eleven percent. So really our portfolios have been positioned quite well for the latest developments. You can see here, if you like looking at the map, really everything is green with exception to this corner right here, consumer defensive. that is solidly in the red so mostly dividend stocks um have not been doing that well blue chips have not been doing that well as the market goes risk on now in the height of this euphoria, I think it's important to always look to be booking profits. Take a look at our sell above prices on our watch list. See what upsides are left for the names and trim accordingly. I may do some additional trimming. I took some profits yesterday. PIF members know what position I'm talking about there. And, you know, I'm looking to perhaps take even more profits as this bull run proceeds. Again, we want to be careful when the market is greedy. We want to be greedy when the market is fearful. Real estate and utilities are also down. There is anticipation of interest rate cuts and what that will mean for profitability there. But really the rest here is doing very well. Green across the board. Interestingly enough, we saw Barack Obama was not taking the Results of the election that good at all. He was seen at a Shia shrine saying, which was interesting to see. Iris Energy, as I mentioned, up twenty one percent today. They did release an update. We'll go over that very quickly. So their October twenty twenty four monthly investor update. um key highlights ai cloud services so there's an additional one thousand and eighty nvidia h two hundred gpus being commissioned preparing data centers for liquid cooled blackwell gpus uh they did mine four hundred and thirty nine bitcoins twenty one exahash installed with sixteen joules per terahash efficiency so this is the leading edge here in terms of efficiency thirty one exahash still planned for Q four of twenty twenty four, which is one exahash above their initial estimate of thirty exahash and Q four data centers of one point four gigawatts. This. Energization schedule has now been pulled forward, so they're running ahead of schedule here and they're aiming for April twenty twenty six to have this Now, I think one of the most exciting things here is ongoing discussions with multiple hyperscalers regarding monetization structures. We did see a report from JP Morgan basically mentioning that, you know, agreements with hyperscalers need to happen in the next six to eight months because. the crunch in supply may not last beyond that. And I really think the two Bitcoin miners that are best positioned to have these contracts signed in this window of time are IOS Energy and BitTier. So I'm hoping that we get something like this signed. That could be a big boost for the company and its stock. uh Q one F uh fiscal year twenty twenty five earnings to be released in the coming year so we have that to look forward to now something really good about the update today was their progress in Bitcoin mining so the revenue per Bitcoin has been increasing but that's really not something that you can attribute to the company itself that's a function of the price of Bitcoin. But what was very encouraging was the fact that we're seeing the electricity cost per Bitcoin going down. This is very encouraging. So we went from twenty nine thousand in August to twenty three thousand in September and now at twenty thousand per Bitcoin. That's the cost of electricity. This doesn't take into account the depreciation of the Bitcoin mining machines. But in terms of sort of cash outflow, electricity is going to be once you've installed the Bitcoin mining machines, electricity is going to be the biggest source of your cash outflows. So mining revenue increased to close to thirty million. So we're talking about. from Bitcoin mining around if we want to analyze this around three hundred and fifty million for their Bitcoin mining business. That's in revenue. Their hardware profit margin is improving. And that's really important to see. So from fifty one to sixty two to sixty eight percent, that's their hardware profit margin, which is which is the trend that you want to see and perhaps why the market has rewarded this company so generously today. And with regards to their cloud services revenue, we did get a dip last month, but we are recovering. That's because one of their customers did not extend their contract but they did mention that they had other customers that they were talking to and so we can see that their revenue has jumped back up from last month it's still not a significant portion of their business but they do plan on this being close to ten percent of their business by the end of the year And this is really exciting because the hardware profit margin here is ninety seven percent. So this is a much easier way to make money. AI cloud services is then their Bitcoin mining business. And so increases in this particular part of their business, I think, is extremely encouraging. So they already had eight hundred and sixty sixteen Nvidia H one hundreds. This is installed and operational. They're adding one thousand eighty eighty Nvidia H two hundred GPUs that are currently being commissioned. Uh, so they'll have, uh, one thousand eight hundred and ninety six H one hundreds, H two hundred GPUs utilizing less than point five percent of iron status center capacity. So really the here's, this is where the real growth in the business of its revenue, its profitability can come from as if this point five percent becomes ten percent or twenty percent. Then this company is poised to really print money. And I think that's what the market is seeing. and this point five percent is supporting thirty two million of illustrative annualized hardware profits so you could see here you know if you ten x this twenty x this what this means for the company could be very very big designing procurement underway to accommodate liquid cooled hardware including nvidia blackwell gb-two hundred gpus oh and by the way if um If iOS Energy is looking for a source for the liquid-cooled Bitcoin mining rigs and wants to buy additional units, they can buy them from Bitdeer. I'm sure Bitdeer would be very happy to accommodate their request. So we're trying to get to thirty one exahash by the end of the year and fifty exahash by next year. I expect this target to increase as their previous targets have increased before. So we went over most of this electricity cost reductions. And a big part of the electricity cost reduction was the fact that they're utilizing the Childress location more, which has a low cost of electricity, three cents per kilowatt hours in October, at least. So they have five hundred and ten megawatts of data centers in twenty, twenty four, and The site that they're working on with an additional one point four gigawatt, that timeline has been accelerated. I mentioned April twenty twenty six. And if you look at their total. Sort of planned power. output or input rather and the data center capacity that they're planning for it's more than uh three thousand megawatts so this puts it at either number one or two amongst bitcoin miners in terms of the access to power that they're for. And therefore, it makes it a very, I think, interesting company to do business with for hyperscalers that are really energy hungry. I mean, we've seen a lot of these hyperscalers are, you know, Amazon, Google, they're going to nuclear companies. energy to try and see if they can find enough power to power their planned data centers. So if you're going to nuclear with all the regulatory hurdles, with all the concerns about nuclear, with all the pushback that you're likely going to get from different municipalities, from different governments that may want to push back on your efforts, That means that you're really in need of energy sources and you're basically willing to knock on any door to find them. And so here we have these Bitcoin miners, specifically Iris Energy, Bitdeer, that have some really compelling infrastructure that I think puts them in a really solid position to do business with some of these hyperscalers. And that could really take their business to something else, really graduate it from Bitcoin mining into something much more serious. or I should say much more profitable. Not that Bitcoin mining is not a serious business, but much more profitable. Amongst all the businesses that you can be in, Bitcoin mining is a very hard business to make money from because you're constantly competing with... a harder network, a more difficult environment to mine Bitcoin in, and therefore increasing costs. You're constantly raising money, you're issuing equity, raising debt in order to buy the latest and newest Bitcoin mining machines so that you're efficient enough to actually compete with other Bitcoin miners. And oftentimes the Increase in price in Bitcoin is eaten away by the increase in investments that you need to make in order to increase your mining capacity. It's a tough business to be in, and that's why I'm in the names that I am in with regards to Bitcoin mining. All right, let's talk about HIMS and HERS, up a cool ten percent today, and it has recovered very nicely. close to twenty percent at the time I told you I would be back I tell you I told you so I've already told you I told you so but I'll say it again so it recovered very nicely from the pullback that it got after the news came out that Novo Nordisk's medicine was no longer in short supply and therefore perhaps the compounding license that Hens and Hers had may be revoked. So let's talk about their earnings and what they reported because it was really stellar. And so their Third quarter, twenty twenty four financial results came out and their revenue, four hundred and one million was up seventy seven percent year over year. So, by the way, revenue at four hundred, I mean, annualized that that's one point six billion. This is a market cap of four point eight nine billion. So for a company that's growing revenue at seventy seven percent year over year, this is a very reasonable valuation, I think. And there's more there's more meat left on this bone. in my humble opinion, not financial advice, net income of seventy five million adjusted EBITDA of fifty one million in Q three subscribers grew to two million of forty four percent year over year in Q three. Now, when you think about what HIMS and HERS is trying to do, basically offer personalized online first, you know, pharmaceutical services basically for people who need medicine. And you look at their subscribers, it's at two million, right? And what is the total addressable market here? Probably tens of millions of people. So, I mean, if it's able to grow to ten million, that's, you know, with the same profitability and the same revenue per subscriber, I mean, that's an easy five X. I don't see why it can't get to twenty million users and maybe even beyond that. So just, you know, thinking about it, napkin math here and, you know, where it is right now and the potential for it. This seems like a Very compelling opportunity. And they're executing on all cylinders. They've proven out their model. The model makes money. It's cash flow positive. So it's just a matter of expanding here. It's just a matter of adding fuel to the fire. The fire is already lit. It works. um the demand is there it's just a matter of adding fuel to the fire to see how fast this thing can grow so they've raised full year twenty twenty four revenue guidance to a range of one point four six billion to one point four six five and adjusted EBITDA guidance to a range of one hundred seventy three million to one hundred seventy eight. So it's always good when companies are adjusting upwards their their guidance. So some comments from the CEO improving momentum in both the HIMS and HERS brands delivered another strong quarter of growth and profitability. Our execution against the strategy that brings customer convenient, transparent and affordable access to care. designed specifically for them is allowing us to reach millions of individuals across the country. In the third quarter, we eclipsed two million subscribers on our platform with more than one million utilizing a personalized solution. These are significant. So this is very important. So the personalized solution makes the product sticky. When you have a personalized experience dealing with a particular company, you're less likely to change companies because they know you and you don't want to start from zero establishing a relationship with someone else. These are significant milestones and confirm we are on a path to helping an American in every household feel great through the power of better health. The CFO said, our model is rapidly gaining scale, driving accelerating top line growth, improving profitability and strong cash flow. We are seeing this strength across our business. Our new weight loss offering is helping a growing number of people and providing an accelerant to what was already a robust trajectory. strong underlying trends continued as subscriber growth excluding contributions from our compounded glp-one solutions increased forty percent year over year so this is very important this is what I've sort of been banging my head and my hand against the table telling you guys This business can survive without the GLP-I solutions. The fear of losing the GLP-I solutions is what caused the most recent dip in its price, but the business model is not dependent on this one solution. Even excluding the contributions from their GLP-I solutions, their subscriber growth was forty percent year over year. This is very important for people to understand. benefiting from improving brand awareness, broader personalization initiatives, and new customers accessing care for multiple conditions. Our ability to unlock access to high-quality personalized care continues to expand, further instilling confidence that our model is positioned to help tens of millions of individuals over time. So this is what I told you guys. They're at two million right now. Their addressable market is in the tens of millions, and they have the plan to address that. Assuming the same revenue per customer, and I actually think revenue per customer can grow substantially from here, but even assuming the same revenue per customer, same profitability, not benefiting anymore from economies of scale, basically plateauing at where we are right now in terms of profitability, you can see five, ten X here easily. So as we saw subscribers, forty four percent increase between twenty, twenty three and twenty, twenty four. That's for the three months ended September. And look at this monthly online revenue per average subscriber also increased twenty four percent. So not only is the count of subscribers increasing and an increase to the tune of forty four percent, but also how much their spending is increasing. And this is really the sign of a very healthy business. And so in terms of numbers, total revenue, four hundred million compared to two hundred twenty six million in twenty twenty three. So really solid, solid results here. Gross margin of seventy nine percent for the third quarter. I love that. It did come down a bit from the third quarter of twenty twenty three. But I think that is temporary and I think they can remain in the eighty percentage point level for gross margin, which is I would classify an easy way to make money. Net income of seventy five point six million for the third quarter, which included sixty point eight million tax benefit related to the release of a tax valuation allowance partially offset by current period tax expense. This compared to a net loss of seven point six million for the third quarter. So whereas last year they lost seven point six million this year in the same quarter Q three, they earned seventy five point six million. and let's see here financial outlook uh we mentioned so fourth quarter twenty twenty four they're expecting four sixty five to four seventy million annualize that that's around two billion guys and we're we're only trading at close to four point eight nine billion so I think I think the valuation in light of the profitability of the revenue that it's generating I think the valuation is quite reasonable. Adjusted EBITDA, fifty million to fifty five million, reflecting an adjusted EBITDA margin of eleven to twelve percent. That I'm hoping will will increase the eleven to twelve percent adjusted EBITDA will improve as economies of scale are achieved. All right, so all in all, really strong fundamentals here for HIMSS, for Iris Energy. Inshallah, I hope that I've made some of you some money on these names. If I have, do leave a like. I really appreciate that. And if you'd like to know where we invest in next, follow our portfolios, become a member. Link to do so is in the description. So with that, guys, let's go to questions. Assalamualaikum to all. Nice to see you. Thanks for coming. Do I see miners continuing to rally here? I think there's a bit more meat left on the bone, but miners generally for me are a trade, not a long-term investment. So I will be looking to exit. We now see stock market approaching green territory. Should we stop investing, wait for correction? So it depends on the name, really. And that's why we go through the bother of valuing each name, buy below, sell above. So I would keep track of that and just ignore whatever noise there is. So BTC is going to do well. So Trump in his campaign was mentioning something about having a crypto reserve for the United States. That would cause crypto to go bonkers. If the United States ends up having a Bitcoin stash, that would cause really tall green candles. So... Yeah, there's a lot more meat left on the BTC bone. Hey, Assalamualaikum, Tuskeen. Great title for today. Any insight on Buffett selling off huge chunks of his portfolio? Yeah, so I think that in the businesses that Buffett looks at, there's probably the opportunities are few and far between. And increasingly so, because he just doesn't like to invest in technology. But I think in the technology space, there's a lot of value there. If you understand the potentials for these new technologies, especially as it relates to AI, I think the potential for AI is just enormous. It's mind boggling, really. And so I think that you're going to see very small companies, you know, one to ten people. It's going to become normal for companies of one to ten people. And yes, I said one to reach billion dollar valuations. And there's companies like this that are springing up all the time. Companies that integrate AI into their businesses are and are part of the AI supply chain are just going to do really, really well. And so we're just in the beginning of the slope upwards here for the transition to AI in the global economy. And so there's a lot of opportunity there. And you'll notice a lot of my names have something to do with AI. And so if you understand the potential there, Warren Buffett has always been shy in terms of investing in technology. Apple was sort of an exception to that. And so I can see if you're like excluding technology from the possibility from the possible companies to invest in, you're going to find it very hard to deploy cash. And I think perhaps that's what is impacting Warren. Yes, it says, haha, Obama, is that real? No, it's not real. Azure Music says, Samarkand, so glad I joined PIF. Well, I'm so glad that you joined as well. Is it still a no-no taking profits from Bitcoin? Would it be better to take profit from alts and miners if one wanted to trim a little? I think it's, yeah, you'll never go broke taking profits. So I would always advise, you know, instead of, taking a screenshot of your portfolio and when you feel like you want to do that because it's up so much. trim some of your positions and trim just enough so that you're happy that you trimmed if it reverses. And if it doesn't reverse and it continues to go upwards, you're happy that you kept what you did keep. So striking that balance is sometimes tricky, but I think that's the right approach. Well, to see what I'm investing in, I don't make recommendations, but to see what I'm investing in, TubeFiftySix, consider becoming a PIF member. For me, I think the miners that we have in our portfolio are the best. This is with regards to the question asking about Marathon. So we do update the buy below and sell above prices when a company reports earnings. So every three months a company will report earnings and we'll update those prices. don't necessarily have to buy if if the watch list is telling you nothing is in the buy zone or you know the the upside is limited you don't necessarily have to buy sometimes being a net seller is okay so uh investing on margin even if it's interest-free I don't think is halal when you are buying from the source that is giving you the margin, because the source giving you the margin is going to benefit from the trades that you make on their platform. And so any loan that is made not as an act of charity is basically rebate. Did you expect a Trump dominant win? I think I did. I think I did expect a Trump dominant win. And, you know, if you look at my lives, I think I've said that. But I also know that it's not over until it's over. And so even though, you know, I had a strong feeling that Trump was going to win, not because of him being a strong candidate, but because of his opponent being a completely unlikable shell of a candidate that will basically do and say whatever the heck she thinks the people behind her want her to say. That's why I thought Trump would win. So yeah, I think this was more a function of Trump was seen as the better of two bad options than people actually being fans of Trump. I think even an average candidate could have done way better against Trump. Because, you know, we've been through the Trump presidency before and we know that his promises of sunshine and rainbows are, you know, are just a fairy tale that he likes to tell himself. But people have short memories and they were stuck choosing between two very bad options. And I think they probably chose the better of two very bad options, if I'm being absolutely honest. All right, guys, thank you so much for tuning in. Leave a like if you enjoyed this live. Congratulations to everyone who has made money. And thank you for being part of our family. Until next time, make sure to take care of yourself. Assalamualaikum and peace be upon you all.