S&J Investments

Dropping your best content at 10PM is probably not the best idea, but I just finished this Photonics Mini-Doc on $LITE, $COHR, and $AAOI. Its 10 minutes, too long for casual investors but whatever, This tech is fucking crazy. Visuals are A+ and do the tech justice. If you actually understand what you're investing in, you should watch. 🔹 0:00 – Intro 🔹 0:38 – What Is Photonics & Why AI Data Centers Need It 🔹 1:55 – The Different Business Models ($LITE at 2:01 · $COHR at 2:55 · $AAOI at 3:44) 🔹 4:34 – Leadership 🔹 5:54 – The Financials, Cash Flow & Balance Sheets 🔹 7:51 – Stock Performance 🔹 8:34 – This Week's Earnings Expectations & Final Take I compared expectations vs my models at the end. There is one moment where I misquoted $AAOI as a 1bn dollar company vs a 6 billion dollar company. But I made sure the visuals and subtitles were correct. More coming S&J 🔹 (Posting this from the ✈️ to 🇬🇧)

Top 10 High Beta Stocks for a Snap Back End of Year Rally: 1. $CRDO — Credo Technology • % Off 52W High: -45.8% • Beta: 3.25 • Gross Margin: 67.1% • Free Cash Flow: $439M TTM → $1.17B Proj FY27 (+166%) 2. $AXTI — AXT Inc. • % Off 52W High: -59.3% • Beta: 1.86 • Gross Margin: 32.2% • Free Cash Flow: +$3.6M Last Q (Flipped FCF+) → $70.2M Proj FY27 (+393%) 3. $AEHR — Aehr Test Systems • % Off 52W High: -56.6% • Beta: 3.07 • Gross Margin: 34.7% • Free Cash Flow: +$1.1M Last Q (Flipped FCF+) → $16.2M Proj FY27 (+275%) 4. $ALAB — Astera Labs • % Off 52W High: -42.6% • Beta: 3.69 • Gross Margin: 75.1% • Free Cash Flow: $277M TTM → $1.26B Proj FY27 (+355%) 5. $FPS — Forgent Power Solutions • % Off 52W High: -59.1% • Beta: 3.87 • Gross Margin: 31.4% • Free Cash Flow: +$19.1M Last Q (Flipped FCF+) → $283M Proj FY27 (+270%) 6. $MU — Micron Technology • % Off 52W High: -26.0% • Beta: 2.23 • Gross Margin: 80.7% • Free Cash Flow: $59.0B TTM → $135.8B Proj FY27 (+130%) 7. $SITM — SiTime Corp. • % Off 52W High: -45.6% • Beta: 2.88 • Gross Margin: 58.7% • Free Cash Flow: $84M TTM → $548M Proj FY27 (+555%) 8. $WDC — Western Digital • % Off 52W High: -52.4% • Beta: 2.17 • Gross Margin: 52.6% • Free Cash Flow: $4.29B TTM → $7.59B Proj FY27 (+77%) 9. $BE — Bloom Energy • % Off 52W High: -37.8% • Beta: 3.78 • Gross Margin: 32.3% • Free Cash Flow: $440M TTM → $1.30B Proj FY27 (+196%) 10. $LITE — Lumentum Holdings • % Off 52W High: -24.2% • Beta: 1.54 • Gross Margin: 41.7% • Free Cash Flow: $551M TTM → $1.16B Proj FY27 (+110%) Honorable Mentions: • $SNDK (Scored #1 mathematically at -44.6% off 52W high, 5.22 Beta, 71.5% GM, $11.5B TTM → $30.8B Proj FCF—moved here since I already have $MU and $WDC in the Top 10 and there’s too much noise around memory right now) • Next up (#11–#16): $LSCC, $VICR, $STX, $ONTO, $VRT, $MRVL • Growth-CapEx Outlier: $NBIS (-43.2% off 52W high, 1.46 Beta, 74.3% GM, +$5.26B TTM Operating Cash Flow) 🔷 Methodology: We screened 115 AI Infrastructure names across 4 equal 25-point pillars: 52-Week High Displacement & Beta (25%), Forward Revenue Growth (25%), Forward PEG & Gross Margin (25%), and Free Cash Flow Generation & FY27E FCF Growth (25%). 🔷 Because this market is ruthlessly punishing cash-burning story stocks, we enforced a strict Free Cash Flow Gate: Every stock in the Top 10 must either be TTM FCF-positive today or have already flipped FCF-positive in its most recent quarter with explosive FY27 cash flow expansion ahead. That immediately filters out heavy cash-burn traps and isolates the beaten-down, high-beta AI bottlenecks that actually print cash when the tape turns. S&J 🔷

$CEG (Constellation Energy) #earnings are out:

$NVDA CEO JENSEN HUANG’S DRAFT MEMO TO EMPLOYEES, OBTAINED BY AXIOS. “I owe my family and all of you an apology.” “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.” “Leading NVIDIA is the privilege of my life.” “I am fully committed to NVIDIA and will work to earn back your confidence.” Regarding the national security investigation: “I support the investigation and will cooperate fully.” “My family bears no responsibility for my choices. I do. Please give them privacy.” NVIDIA’s board has launched an independent investigation into reports that Huang was targeted by a foreign intelligence effort. The board says it currently has no reason to believe U.S. national security or NVIDIA’s secrets were compromised.