There’s a new tactical trading strategy coming out of the current administration…
Government Equity Stakes.
Inside The War Room, it’s been a hot topic of conversation.
Kaddiddlehopper just posted this…
When it comes to a “mother load of profit,” that’s always something that captures our attention.
Recently, we made +23% trading MP Materials (MP) in just around 30 minutes.
So, predicting the next round of governmental equity stakes could surely lead to a big, fast profit.
So, let’s review this entire situation and see if we can pinpoint the next round of candidates.
Starting from the top…
The Trump Administration Now Owns:
10% equity stake in Intel (INTC)
The deal was signed on August 22nd, and the stock closed at $24.80 that day. Intel returned nearly +47% by October 6th, closing at $36.59 per share.
15% equity stake in MP Materials (MP)
Since the deal closed on July 11th, the stock has gained +64%, jumping from $45.11 per share to $74.33 as of the close on October 6th.
10% equity stake in Lithium Americas (LAC)
It has advanced by +20% since the government’s stake acquisition on October 1st at $7.04 per share to $8.45 as of October 6th close.
10% equity stake in Trilogy Metals (TMC)
The deal announcement saw the stock skyrocket +215% in after-hours trading.
They also own a “golden share” in US Steel Corporation
This does not represent a typical equity stake, but instead grants the U.S. government permanent veto authority over key corporate decisions, including relocating the headquarters from Pittsburgh, shifting production overseas, or closing facilities.
YOUR ACTION PLAN
After seeing these stocks’ reactions, the obvious question is….
What’s the next acquisition?
In my view, defense contractors are next.
Howard Lutnick has already said that firms like Lockheed Martin (LMT) derive nearly all their revenue from the U.S. government – thus making them “basically an arm of the U.S. government.”
I’d set my sights on Lockheed Martin, RTX, General Dynamics, and Northrop Grumman as the next group of possible acquisition candidates.
Aerospace companies such as SpaceX and Boeing are also in play, as Boeing and SpaceX have each received billions from NASA for space transportation.
That said, keep an eye out for an invitation to join Karim and me in Monument Traders LIVE to discuss this unique and timely situation. Details on the event are still being worked out – but I wanted to get this event on your radar screen so you don’t miss it! More to come soon!
P.S. The U.S. government is not alone…
Just today, JPMorgan Chase said that they plan to invest as much as $10 billion in direct equity and venture capital stakes in companies operating within key industries such as artificial intelligence, mineral producers, and defense.
The strategy is part of a wider “security and resiliency” plan by the country’s largest bank to commit $1.5 trillion in future financing and spending on industries critical to national and economic security. So clearly, this is a critical market trigger catalyst that is worth exploring right now!
Karim and I will break it all down for you in a future Monument Traders LIVE episode – which is totally free for readers like you. As soon as we pick a day/time, you’ll be the first to know!