Keith Kaplan’s AI System Is Back — With 3 Fresh Picks VIEW IN BROWSER Tom Yeung here with your Sunday Digest. In August, I introduced a stock-picking system developed by TradeSmith CEO Keith Kaplan and his team and drew your attention to three stocks it flagged. It’s a system that uses a powerful blend of technical signals and bottom-up research to pinpoint the highest-probability trades. According to research from Keith’s team, this strategy would have turned $1,000 into $90 million over the past three decades. I hope you tuned in to that Digest… Because in the days following, one of the three picks the system recommended began to break out. By the end of August, the overall portfolio returned 8%, even as the S&P 500 traded sideways. 
Now, Keith and I realize that trading this way can prove burdensome. Even though generating an 8% return every two weeks theoretically quintuples a portfolio within a year, achieving those returns involves a lot of trading. And so, this week, Keith and his team are introducing a streamlined, all-in-one version called the AI Super Portfolio, which constantly updates you about the system’s five best stocks at any given time. It’s a near-autopilot system that replaces older stocks with new ones as opportunities arise. With it, you could’ve booked a 502% gain last year alone. In fact, Keith and his team are so confident about the system that they are offering Digest readers limited-time access to their underlying system. With this access, you’ll be able to see its stock-price forecasts for over 2,300 companies, including some you already might own. And I hope you’ll see how essential the AI Super Portfolio is in helping sift through the best of the best. In addition, trying out the portfolio will give you access to Keith's presentation on October 15 at 10 a.m. ET, where he will explain the details of the AI Super Portfolio, and how you can get started using this powerful new tool. Click here to try it out for yourself. In the meantime, I’ve been given permission to share three more of the system’s current top picks to illustrate its power in identifying short-term winners. | Recommended Link | | | | Eric Fry here. I just delivered an urgent report from ground zero of the greatest technology project in human history. An invention so far beyond our current technology — even artificial intelligence — that some believe it will create millionaires overnight. Click here for the details. |  | | Bringing Drones Into the Military In August, I recommended shares of Ondas Holdings Inc. (ONDS), a defense startup building drones to hunt other drones. Flying robots are dangerous to shoot down in populated areas, and Ondas has developed an elegant solution that doesn’t involve firing a flak cannon above a crowd. Instead, the company’s “drone-in-a-box” system shoots ballistic nets and parachutes at enemy drones to safely lower threats to the ground. Shares of this startup have risen 150% in the six or so weeks since that recommendation. Now, the obvious trouble with small defense startups like Ondas is that they lack the resources to fulfill large military contracts. It’s one thing to build a dozen drones for a customer… and quite another to assemble 100,000 of them for the U.S. Army. That’s why “prime” contractors like Lockheed Martin Corp. (LMT) and General Dynamics Corp. (GD) have grown so large. It’s also why the primes largely avoid dealing with smaller firms like Ondas. But medium-sized contractors like Kratos Defense & Security Solutions Inc. (KTOS) offer a way out. These midcap firms are large enough to take $100 million military contracts… yet small enough to care about startups like Ondas. That’s likely why Keith’s system has highlighted Kratos as a potential “Buy.” Over the past several weeks, drone threats have become even more pronounced. On September 9, roughly two dozen drones entered Poland’s airspace after allegedly being launched from Russia. The incursion was serious enough for Polish Prime Minister Donald Tusk to request invoking Article 4 of the North Atlantic Treaty. Then, on October 3, authorities were forced to shut down both runways at Germany’s Munich Airport after numerous drone sightings. Less than a week later, Germany’s cabinet approved legislation authorizing the nation’s federal police to shoot down rogue drones. That puts Kratos in an incredible position. The San Diego-based firm has a long history of inking nine-figure deals with various military branches. Most recently, it was awarded a $175 million contract to upgrade the U.S. Navy’s radar system. And the company is one phone call away from making a deal with startups like Ondas to bring anti-drone technologies to the U.S. military and abroad. Though shares of Kratos are pricey (and therefore have limited long-term upside), the buzz around drones is currently too loud to ignore. KTOS is a “Buy” for short-term gains. Keith’s system projects that KTOS will rise 17% over the next 30 days. Its forecasts for this stock have a historical accuracy rate of 82.81%. Riding the Robotaxi Revolution Earlier this year, robotaxi firm Waymo overtook Lyft Inc. (LYFT) to become the second-largest taxi/rideshare service in the San Francisco area. Ridership has surged 56-fold since 2023, and autonomous vehicles now account for one in five taxi rides in the city. Robotaxi services have grown even faster in China. Baidu Inc.’s (BIDU) Apollo Go alone reported 2.2 million fully driverless rides in the second quarter. Pony.ai and WeRide Inc. (WRD) likely double that figure. That’s proving a windfall for Hesai Group (HSAI), the world’s largest producer of robotaxi lidar systems – the “eyes” of self-driving cars. Hesai controls around 61% of the market, and revenues at this Chinese firm have more than doubled since 2022. They are expected to double again by the end of 2026. Those are bullish signs for Hesai’s stock, which Keith’s system believes will rise 10.5% over the next 30 days. The system has a 78.13% historical target accuracy on the stock. There is support for this bullish view. In late September, Baidu said it is exploring new markets for its robotaxis, including Australia and Southeast Asia. The Chinese tech giant (a Hesai customer) also received trial licenses from Dubai authorities, allowing it to double the size of its fleet in the United Arab Emirates. We may also see positive news from Tesla Inc. (TSLA), which has avoided using lidar so far. The EV company has recently struggled to get robotaxi licenses from U.S. regulators after suffering numerous self-driving crashes in low-visibility conditions. Lidar technologies offer a way out because, like radar, they can “see” in total darkness. So, even though shares of Hesai slipped 9% this week due to profit-taking on Chinese stocks, Keith’s system sees this as a sign to buy the dip rather than sell. The New Gold Rush Finally, it’s been hard to escape the headlines about the U.S. government getting involved in American mining. - MP Materials Corp. (MP). In July, shares of the rare earths miner doubled in price after the U.S. Department of Defense acquired a 15% stake.
- Lithium Americas Corp. (LAC). On October 1, the Canadian lithium startup, which is developing a mine in Nevada, rose by a similar margin after the U.S. Department of Energy said it would take a 10% stake.
- Trilogy Metals Inc. (TMQ). The company’s shares tripled this week after the U.S. government took a 10% stake to support Alaskan mining exploration.
Which company could be next? One bet worth considering is Energy Fuels Inc. (UUUU), a firm Keith’s system believes has a 16.9% upside over the next 30 days. The system has an 83.59% historical target accuracy on the stock, making UUUU one of its highest conviction picks. Energy Fuels is the largest American producer of uranium. The Colorado-based company mined 665,000 pounds of the nuclear material in the second quarter, and plans to continue scaling production through 2026 as prices continue to climb. The company also operates the largest uranium processing facility in America. In addition, Energy Fuels has significant exposure to rare earths – an area the Trump administration has recently promoted. The firm operates the only facility in America able to process monazite, a type of rare earth ore, and expects to be “first out of the block” in producing heavy rare earth oxides later this year. It’s no surprise that two weeks ago, a U.S. congressional delegation visited the company’s processing facility in White Mesa, Utah. That’s why a small speculative bet on this company could make a great deal of sense. Though shares are expensive from a fundamental standpoint, investors have shown little concern for traditional valuations once the government steps in with a deal. 
Signs of a government investment to come? Introducing the AI Super Portfolio You might have noticed that the three companies I mentioned are time-sensitive. Consider what happens if: - Kratos makes a deal with Ondas…
- Hesai lands a contract with Tesla…
- Or the U.S. government buys a piece of Energy Fuels.
Any of these three scenarios would trigger an immediate double-digit gain in share prices. However, any gain should also come with profit-taking, given the high starting prices of these companies. After all, momentum trades only work well when shares still have room to go up. So, I urge you to sign up for your free trial of Keith’s system. And most importantly, be sure to watch his presentation on the AI Super Portfolio, where he outlines how to use his system to turn these high-potential trading ideas into even greater profits. Until next week, Tom Yeung, CFA Market Analyst, InvestorPlace | 
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