Chris DeMuth Jr. Shares Some Stock Picks

Core Insights - The U.S. equity market is perceived as fully priced, particularly in mega-cap tech, leading to a focus on international markets and smaller caps for investment opportunities [5][7] - Two stocks of interest are Willis Lease (WLFC) and FTAI Aviation (FTAI), with the former having a market cap of approximately $1 billion and the latter around $24-25 billion [11][13] - California First Leasing (CFNB) is highlighted as a misunderstood company trading at a significant NAV discount, with a current price of $27-28 per share compared to an NAV of $33-34 [25][26] Company Analysis - Willis Lease (WLFC): - An aerospace leasing company primarily focused on leasing jet engines, with a valuable portfolio and a market cap of about $1 billion [10][11] - The company has benefited from a tight supply of engines, leading to high net asset value (NAV) [12] - Potential for significant growth through new joint ventures that could transform its business model and increase earnings [14][15] - The stock has seen a decline of approximately 20% over the past year, which may present a buying opportunity [17][18] - FTAI Aviation (FTAI): - A larger player in the aerospace leasing market with a market cap of $24-25 billion, well-regarded and understood by the market [13][18] - The company has experienced substantial growth, with a stock increase of around 43-44% in the past year [18] - California First Leasing (CFNB): - A company that owns a large-cap U.S. equity portfolio and has been trading at a significant NAV discount [22][25] - Management plans to conduct a self-tender offer to buy out small shareholders, which may not be shareholder-friendly [24][26] - The stock is currently undervalued, with potential for a price increase if the management's plan fails [26][27] Investment Themes - Interest in the gambling sector is noted, with concerns about the gamification of investing and its implications for long-term investment perspectives [28] - Activist investing is a focus, with recent engagements in companies like Core Scientific (CORZ) and Golden Entertainment (GDEN), where management decisions are being challenged [30][32] - The potential for significant mispricing in deals, particularly in the gaming sector, is highlighted, with a call for shareholders to be vigilant [36][38] Sector Trends - The healthcare and AI sectors are of interest, with a focus on how AI can impact various industries, including biotech [81][84] - The discussion includes the potential for AI to revolutionize business operations, particularly in data centers, as seen with Core Scientific's transition from crypto mining to AI [82][83]