Dear Reader,
Elon Musk did something he has never done before.
He bought ad space during the biggest television event of the year... at $266,000 per second.
125 million Americans watched his ad and probably forgot all about it.
But I haven't stopped thinking about what it means...
You see, when the world's richest man spends millions to speak directly to America, investors should pay close attention. Especially when 1 in 3 people watching the Big Game that night were using "buy now pay later" services, and when 40% of Americans have more credit card debt than emergency savings.
There were two completely different Americas watching the same football game that night...
And Elon knows exactly which one he's building his future for.
What he told the world that night is the most important financial signal I've seen in years.
My name is Whitney Tilson. I spent 30 years on Wall Street and managed a $200 million fund firm. I've made a career out of seeing what other people miss...
That’s why I've put together a free presentation explaining exactly what happened that night, and what I think you should do with your money before everyone else figures it out.
Regards,
Whitney Tilson
Editor, Stansberry Investment Advisory
Former Hedge Fund Manager
Co-Founder, Teach for America
Harvard MBA
P.S. After the game ended, 600 private jets flew out of San Francisco. It broke city records. And it's all related. Elon... the private jets... they're all part of a huge economic current ripping through America. I explain why in the same presentation.
Why Penguin Solutions May Be the Smartest AI Infrastructure Stock
By Thomas Hughes. Published: 7/8/2026.
Key Points
- Penguin Solutions reported fiscal Q3 2026 revenue of $479 million, up nearly 48% year-over-year and well above consensus estimates, driven largely by AI demand.
- The company raised full-year guidance significantly, including a 22% revenue growth target and improved adjusted gross margin and earnings per share forecasts.
- Analysts and institutional investors remain bullish, with a Moderate Buy consensus, rising price targets, and shares up more than 200% since April despite high valuation concerns.
- Special Report: The company SpaceX cannot operate without
Although it is not technically a pure-play GPU-as-a-Service or neocloud operator, Penguin Solutions (NASDAQ: PENG) is effectively in the same business as Nebius (NASDAQ: NBIS), Iren (NASDAQ: IREN), and Applied Digital (NASDAQ: APLD) — but with far less risk.
Its role is to enable businesses, enterprises, governments, and hyperscalers to access AI-capable, high-performance computing (HPC) capacity, along with the software and services needed to run it.
I endorsed someone else's model for the first time (Ad)
Porter Stansberry spent 30 years ignoring outside investment systems - until he met Emmet Savage in Dublin. Savage's model, built on Hamiltonian mechanics applied to equity analysis, has delivered nearly 2,000% returns over 17 years with only one losing year.
What convinced Porter wasn't the returns. It was the sell discipline - a framework that identifies the exact moment a position's energy begins to decay, signaling an exit before the decline. He calls it the most rigorous sell system he has ever seen, comparing its edge to RenTech's famed Medallion Fund.
Watch Porter's full breakdown of Project Prophet and Emmet's systemThe difference is that Nebius, Iren, and Applied Digital take on significant risk by owning GPUs, data centers, and the infrastructure required to operate them, while Penguin Solutions does not. It is the true enabler, focusing on clients with the capacity to build their own HPC systems and providing the engineering, hardware, software, and services to make it all work. This includes long-term contracts for data center operation and maintenance, which is the real story in AI. While data center construction gets the headlines today, day-to-day operations and maintenance are what will drive revenue and cash flow over the long term.
Penguin Solutions Earnings Results Signal Game-Changing Shift
Penguin Solutions' Q3 fiscal 2026 results and guidance were so strong, driven by AI demand, that they were comparable to NVIDIA's (NASDAQ: NVDA), relatively speaking. Revenue grew nearly 48% year over year to $479 million, more than $55 million above MarketBeat’s reported consensus estimates and about 1,360 basis points better than expected. Strength was driven by AI, with Integrated Memory more than doubling year over year (YOY). Integrated Memory is critical to Penguin Solutions' business, as it helps remove the memory bottleneck by enabling HPC datacenters to pool memory across clusters, improving latency and efficiency.
Margins were another critical factor. Long criticized for its profitability metrics, the company appears to be turning a corner. While gross margins were compressed, internal improvements and revenue leverage helped drive operating margin expansion, allowing top-line strength to flow through. Highlights included record GAAP and adjusted operating income, with adjusted operating income up 67% compared with the 48% increase in revenue. Looking ahead, the strength is expected to continue, as reflected in the guidance.
The guidance was as impressive as the revenue, with full-year revenue now expected to grow by 22%, a 1,000-basis-point improvement from the prior quarter. Within that, the adjusted gross margin target was raised by 50 basis points, and adjusted earnings per share (EPS) by 45 cents, or 2,040 basis points. Those figures may still prove conservative. There is clear momentum in the data center industry, and Penguin Solutions has emerged as a top-tier service provider. With this in play, investors should expect results to remain strong for the foreseeable future.
Penguin’s fiscal Q3 strength is also visible in its balance sheet. While cash is down year to date, the decline is minimal; the company is well-capitalized, and metrics including receivables, inventory, and equity reflect strength. Receivables more than doubled to over $700 million, more than offsetting the cash decline, while inventory also more than doubled and long-term debt declined. The impact on equity was substantial, increasing by nearly 11.5%.
Penguin Solutions Q3 Results Affirm Analysts' Support: Price Targets Rise
Penguin Solutions' fiscal Q3 results affirmed the bullish stance analysts had taken ahead of the release, prompting some to raise their price targets again after the report. Commentary focused on the massive top-line beat and margin improvements, which directly refute the critics.
The takeaway is that 10 analysts rate this stock as a Moderate Buy, there is a 70% buy-side bias, and price targets are rising. The consensus price target still lags the share price, but that is not a concern, as it rose by 40% on a trailing three-month basis as of early July, with high-end targets forecasting fresh all-time highs.
Institutional activity is also bullish, with institutions owning more than 97% of the shares and aggressively buying at a $3-to-$1 pace over the trailing 12 months. They provide solid support and limit downside risk, setting the stage for retail investors to drive shares higher. The likely outcome is that institutions continue to underpin support in future quarters while improving visibility brings retail money into the market.
The chart action is robust. PENG shares have rallied strongly since April, rising more than 200%. Price action has pulled back from its peak, but MACD convergences suggest this rally is far from over. Those convergences, a sign of strength, appear across multiple time frames, including the monthly, weekly, and daily charts, suggesting new highs are likely. Critical support and resistance levels are near $60 and $75; a move below $60 would be unexpected, while a move above $70 appears more likely. The biggest risk is valuation, which is high at approximately 35 times earnings. However, the fiscal Q3 results affirm a healthy growth outlook, putting this stock at value levels within a few years.
Is McCormick a Steal Ahead of Game-Changing Unilever Deal?
By Thomas Hughes. Published: 6/29/2026.
Key Points
- McCormick's proposed $15.7 billion combination with Unilever's food business has driven shares down 50% from record highs, creating a potential value opportunity.
- Q2 results showed 16.7% revenue growth and adjusted EPS of 80 cents, beating estimates and supported by organic growth and the McCormick de Mexico acquisition.
- The company's 4% dividend yield is backed by nearly 40 consecutive years of annual increases, offering investors income as they await a merger catalyst.
- Special Report: The company SpaceX cannot operate without
McCormick & Company’s (NYSE: MKC) share price looks like a steal in mid-2026, down 50% from record highs ahead of a potentially game-changing deal.
The proposed combination with Unilever’s food business could triple the company’s size, generate shareholder value, and provide sufficient cash flow to support balance sheet quality and capital returns.
I endorsed someone else's model for the first time (Ad)
Porter Stansberry spent 30 years ignoring outside investment systems - until he met Emmet Savage in Dublin. Savage's model, built on Hamiltonian mechanics applied to equity analysis, has delivered nearly 2,000% returns over 17 years with only one losing year.
What convinced Porter wasn't the returns. It was the sell discipline - a framework that identifies the exact moment a position's energy begins to decay, signaling an exit before the decline. He calls it the most rigorous sell system he has ever seen, comparing its edge to RenTech's famed Medallion Fund.
Watch Porter's full breakdown of Project Prophet and Emmet's systemBalance sheet safety is one of the reasons the share price has fallen so sharply. The transaction includes a $15.7 billion cash payment to Unilever, with McCormick relying on cash on hand and new debt to fund that portion of the deal. That added debt is a key reason investors are focused on the company’s post-close leverage.
The bad news is that McCormick’s leverage ratio will rise to a higher-than-desired 4.0x EBITDA. The good news is that there is a clear plan to bring it down.
Already carrying investment-grade debt ratings from all major ratings agencies, McCormick’s executives have expressed a commitment to reducing debt quickly. Plans are in place to bring leverage below the targeted 3x level within two years, which should provide a tailwind for shareholder value.
High-Quality McCormick & Company Presents Deep Value in 2026
As it stands, McCormick is in a healthy financial position and growing its business. In this environment, the stock’s roughly 8x current-year earnings valuation is a deep discount to historical norms.
Typically trading in the mid-20x range, valuation metrics suggest meaningful multiple expansion is possible over time, compounding the impact of growth. The company is expected to sustain organic growth without the merger, with the potential to accelerate afterward. Estimates as of late June suggest much lower valuations relative to long-term forecasts, setting the stage for several hundred basis points of stock price gains over the next three to five years.
Analyst trends also help explain MKC’s price decline and the long-term outlook.
While price targets have moved lower, the low end aligns with the late-June price action, suggesting a floor may be in place.
Within that, the consensus Hold rating comes with a 46% Buy-side bias, which, given the 13 analysts covering the stock, provides some conviction in the outlook.
In this scenario, MKC could rebound at any time with the right catalyst and will likely move sideways until one emerges. Upcoming catalysts include milestones tied to the Unilever merger, such as the expected announcement of a European secondary listing location and regulatory approvals in the United States and United Kingdom.
Institutional trends highlight the value and help underpin market support as June nears its end. Institutions own nearly 80% of the stock and have accumulated shares at a moderately aggressive pace over the trailing 12 months, despite some distribution in Q1 2026. The key detail is that accumulation resumed in Q2 at an aggressive $10-to-$1 pace and will likely remain supportive of price action, given the company’s core strengths and a value-building merger opportunity.
McCormick Outperformance: Organic and Acquisitions Shine Through
McCormick & Company delivered a solid Q2, with growth underpinned by organic strength and the acquisition of McCormick de Mexico. Revenue grew by 16.7%, with 1.7% organic sales growth driven by a 2.2% increase in average prices. Both segments reported strength, led by a 2.9% organic increase in flavor solutions, with both segments also boosted by acquisition-related growth.
Margin news was good as well. The acquisition is driving significant back-end consolidation and cost savings, leading to improved gross and operating margins. Adjusted gross margin improved by 270 bps, and adjusted operating margin rose by 180 bps, leaving adjusted earnings per share (EPS) at 80 cents, up 11 cents year over year (YOY) and 11 cents, or 1,600 bps, better than expected.
Catalysts and a Risk-Reducing, High-Yielding Dividend
Guidance could act as a catalyst for shares because the company merely reaffirmed it, despite the strength in FQ2. The market assumes the guidance is cautious and expects the Q2 momentum to continue into the next release.
McCormick’s dividend is another risk-reducing factor for investors. The low share price translates into an unusually high yield, approximately 4% with shares around $50, and it remains a reliable payment.
The company is a Dividend Achiever with nearly 40 years of consecutive annual distribution increases, and it is on track to reach the 50-year mark and be crowned a Dividend King.
McCormick’s position as a consumer staples company gives it defensive qualities, but the stock still faces risks tied to pricing, volume, consumer trade-down behavior, and merger execution. Consumer headwinds have shoppers trading down on center-of-plate costs in favor of flavors. Cheap cuts and starches work well with bold, zesty, and spicy flavors, and McCormick is a leading source. Execution risk is the bigger concern, as delays could be reflected in the stock’s price. The worst-case scenario is that the merger is completed, but synergies fail to deliver the desired results.
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