Welcome to The Alpha Report 👋

You only have to get rich once. Now is your time.

Major News Today👇

• Sorry for the formatting issue on the last send. This should be fixed! (I am getting all the bugs worked out of these newsletters)

• Dell Earnings Breakdown and what it means for SMCI & NVDA.

• Best Buy’s earnings shows Amazon’s strength.

• Watchlist Updates

• 30 year fixed mortgage rate unchanged at 6.96% from yesterday.

• 10 year treasury bond yield climbs to 4.30% from 4.26% yesterday.

  (5 minute read)

Fear & Greed Index For Today👇

• 61 yesterday & 64 today.

• The major indexes pushed higher today which moved us deeper into the greed category.

• Be greedy when others are fearful.

• Be fearful when others are greedy.

  

Million Dollar Lesson👇

Selling put options when a company is trading below intrinsic value is one of the biggest hacks to investing I have ever found.

This is how I currently generate about $30k/month from my computer for just a few hours a week!

Learn how here👇

Why Earnings From Dell Matters A LOT More Than You Think

👇First Lets Break Down The Earnings👇

• Dell reported Q3 25 earnings today

• Currently trading at $126/share

• Q3 25 EPS: $2.15

• Q2 25 EPS: $1.89

• Q1 25 EPS: $1.27

• Q4 24 EPS: $2.20

• Total TTM EPS: $7.21

• 126/7.21 = 17 PE trailing.

• EPS same quarter last year was $1.88 vs $2.15 now. That is 14% YoY earnings increase

• Revenue same quarter last year was $22.25 vs $24.37 now. That's 10% YoY revenue increase

• The stock is up 79% in the last year.

Notes From The Dell Earnings Call👇

• The Nvidia Blackwell is BIG

• It seems like all these "secondary" companies are running around with their heads cut off trying to do all they can to implement the NVDA chips, especially Blackwell.

• Guidance miss had nothing to do with "AI demand". It was related to the PC refresh cycle taking a little longer vs what was expected but they said it is 100% coming and coming soon

• They have a "significant" backlog for AI implementation. (server racks for data centers) This is what SMCI does too.

• Blackwell is starting to ramp production and demand is very strong for Dells products.

• Basically Dell does what SMCI does with regards to the "hooking up" of the chips for data centers. They basically supply everything except the chips. So lots of back end stuff.

• Liquid cooled server racks seem to be a must with the blackwell chip because of heat issues. So this is good for SMCI too.

• Seems like Dell wants a bigger piece of the pie and they were asked about SMCI but they dodged the question with regards to the accounting issues with SMCI.

• They basically implied they are focusing on themselves and there is plenty of demand for everyone which is reflected in the backlog.

So Is Dell A Buy Right Now?👇

• Assuming a 15% annual growth rate, dell is near intrinsic value.

• It is a decent buy in my opinion but there is better options out there.

• If you do buy, hold for a few years at a minimum.

• Dell is a way to get exposure to AI without the risks of SMCI's accounting issues.

• I do think SMCI will get it resolved though. High risk, high reward.

What Does This Mean For NVDA & SMCI?👇

• Ai is the future, adopt it or get left behind

• The Dell earnings call showed just how dominate Nvidia is and how much demand there is for Blackwell.

• High Blackwell demand = SMCI demand for server racks and implementation.

• You can’t get the Blackwell without the server racks and full integration from Dell & SMCI.

• I feel all 3 of these companies will do good in the long run.

Is Amazon Destroying Best Buy?

• Best Buy Reported Q3 25 Earnings Today

• Currently trading at $87/share

• Q3 25 EPS: $1.26

• Q2 25 EPS: $1.34

• Q1 25 EPS: $1.20

• Q4 24 EPS: $2.72

• Total TTM EPS: $6.52

• 87/6.52 = 13 PE trailing.

• EPS same quarter last year was $1.29 vs $1.26 now. That is 2% YoY earnings decline

• Revenue same quarter last year was $9.76 vs $9.45 now. That's 3% YoY revenue decline

• The stock is up 28% in the last year.

• I will 100% not be buying this stock.

• Of course the PE is cheap but the company is not growing and actually having YoY earnings and revenue declines.

• I feel this company will eventually be consumed by Amazon… Amazon just makes shopping too easy…

  

Brandons Watch List:

(Updated Daily)

👇My Price Targets For End Of Year 2025👇

• QQQ - $530

• VOO - $580

•  IWM - $240

• SOXX - $240

• TSLA - $380

• NVDA - $190

• AAPL - $240

• PLTR - $60

• AMZN - $240

• GOOG - $195

• SMCI - $105

👇My Favorite New Trades 👇

I either plan to enter, or have already entered these trades.

• QQQ - DCA Shares - 3 year minimum hold duration

• VOO - DCA Shares - 3 year minimum hold duration

• SOXX - DCA Shares - 3 year minimum hold duration

• TSLA - DCA Shares - 5 year minimum hold duration

• PLTR - Buy Puts - 3 Month Duration - Strike Price $60

• GOOG - Sell Puts - 1 year duration - Strike $150

• NVDA - Buy & hold for 2+ yrs & sell 1 year puts at a strike of $115

• AMZN - Buy shares on a dip and hold for 2+ yrs

• SMCI - Buy calls - 5 month duration - $28 strike.

(Join premium discord to see my exact trades in real time, link below)

👇How My Trades Have Performed Since 2023👇

Current Value of My Trading Account👇

• I think we are about 10% over valued as a whole, so if the market takes a dip, that’s 100% normal. (reversion to the mean)

• So I consider the intrinsic value of my trading account to be somewhere around $800k ish, not $906,562

  

Final Comments👇

• The future is AI in my opinion.

• It seems like Nvidia is the captain of the ship and all the other companies are there for support to implement the chips.

• I am super bullish but it is key to buy good companies at a good price.

• Check out my watchlist, I like all the plays on there.

• I do see the market as 10% ish over valued. (a dip is ok and normal if it comes)

• Keep your emotions in check on pumps and dumps.

• Continue to DCA into quality stocks/ETFs at good prices.

• When you find undervalued companies, use options to magnify gains

• Check out my links below for my course, free guides, & intrinsic value calculator!

👇Check Out My Links Below👇