more common than you’d think. Take Airship AI – the AI firm that won a big Pentagon contract recently. It’s a tiny stock – it’s worth just $130 million. If you ranked the world’s stock market by size, it’d place 8,570th. There are more than 8,000 companies bigger than it! And yet it won a huge government contract. ROB: BigBear.ai is another great example – it’s worth less than a billion dollars. It’s a small stock. But it got a big contract. JOEL: And the thing is, when a small company wins a big contract... it kind of stops being a small company anymore. The contract is often the catalyst for big growth. Let me give you an example... In 2020, a tiny cybersecurity company called WhiteHawk won a big, five-year contract from the U.S. government. It was a tiny company... less than $10 million. But that contract saw WhiteHawk’s share price explode by more than 400% in the following months...
ROB:
It makes sense... If you’re a $10 million company and you get a contract for $100 million... you’re not really a $10 million company anymore. JOEL: Exactly – and that’s what makes PHASE II so exciting. Sure, some contracts will go to bigger names... But a bunch of them are going to go to smaller, much less well-known stocks. I’m talking about stocks we can’t even cover in our large-cap Hidden Alpha flagship publication... because they’re far too small, for reasons we’ll explain shortly. We’ve already seen that with stocks like BigBear.ai and Airship AI. Those weren’t well-known names at all. And yet they delivered massive profits after landing government AI contracts. ROB: And we know that Elon has a sweet spot for small, highly specialized companies. He’s done it his whole career. In fact, all of his companies started out as small, scrappy “outsiders.” No one thought Tesla could outcompete the big auto firms. But that’s exactly what it did. By 2020, Tesla was bigger than every large car firm... put together. No one thought SpaceX would be able to compete with NASA, either. But now NASA is calling on SpaceX to rescue its astronauts from space!
The same thing happened with another small stock called SuperCom at the start of this year. Again... SuperCom is a really small company, worth just $9.5 million. Yet it secured a big government contract. Its share price went almost vertical – up more than 300% in the space of a few months...
REVIEW BY JULY 18
DOGE: PHASE II // PAGE 19
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