Market Overview - The market is broadening beyond technology, with materials, defense, transports, and airlines showing strong setups as 2026 begins, while technology, particularly software, is lagging [1] - The start of 2026 is characterized as 'very' bullish due to increased market participation and breakout performances in certain sectors [1] Sector Analysis - The energy sector is identified as a 'fake out' with stocks hitting resistance levels and pulling back, suggesting caution before investing [2] - The materials sector is highlighted as a breakout from a year-long base, supported by silver, gold, and packaging stocks, indicating potential for further gains [2] - The defense sector is noted for a significant breakout, suggesting strong performance ahead [2] Small-Cap Stocks Outlook - The Russell 2000 has reached all-time highs and is on track for its eighth consecutive month of gains, creating a positive backdrop for small-cap stocks in 2026 [3] - Small-cap companies are economically sensitive and benefit from lower interest rates, but only about 1% of active long managers have been beating their benchmarks over the last 18 months [3] - Despite quality small-cap stocks underperforming, the long-term earnings growth setup for small caps is more favorable compared to mid-cap, large-cap, or MAG7 stocks [3] Stock Recommendations - A list of 10 promising stocks under $50 has been compiled based on high upside potential and popularity among hedge funds [6] - The strategy of imitating top stock picks from elite hedge funds has shown significant outperformance, with a return of 427.7% since May 2014 [7] Company Highlights - **Acadia Healthcare Company Inc. (NASDAQ:ACHC)**: Current share price is $13.67 with an average upside potential of 42.54%. The company is emerging from a 3-year downturn in underwriting, with expectations for margin recovery in managed care [9][10] - **Cipher Mining Inc. (NASDAQ:CIFR)**: Current share price is $16.90 with an average upside potential of 62.21%. The company has acquired a new 200-megawatt site in Ohio, diversifying its geographical footprint and enhancing its development pipeline to 3.4 gigawatts across 8 sites [13][14][15]

Group 1 - Stone Fox Capital is a Registered Investment Advisor (RIA) based in Oklahoma, led by Mark Holder, a CPA with extensive experience in accounting and finance [1] - Mark Holder has 30 years of investing experience, including 15 years as a portfolio manager, and leads the investing group Out Fox The Street [1] - The investing group provides stock picks, deep research, model portfolios, daily updates, real-time alerts, and community chat for readers [1] Group 2 - The article does not contain any specific investment recommendations or solicitations to buy or sell securities [2][3] - It emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to start 2026, consider joining Out Fox The Street .Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential ...

Core Viewpoint - The outlook for equity markets is cautious, with stock picking remaining a potentially rewarding strategy, particularly in monetized and cash-flow backed stocks, while narratives may shift over time [1] Group 1: Market Trends - AI is identified as a long-term supportive factor for the market, indicating a multi-year trend that could benefit certain sectors [1] - Growth in the market may be limited to stocks that demonstrate strong monetization and cash flow, suggesting a focus on fundamental financial health [1] Group 2: Analyst Background - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, emphasizing expertise in equity valuation and market trends [1] - Previous roles include Vice President at Barclays, where the analyst led teams in model validation and stress testing, showcasing a strong foundation in both fundamental and technical analysis [1] - The research approach combines rigorous risk management with a long-term perspective on value creation, focusing on macroeconomic trends and corporate earnings [1]

Group 1 - The article discusses the potential for investors to position themselves in undervalued stocks that are mispriced by the market as the year ends [1] - Stone Fox Capital, based in Oklahoma, is led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2] - The investing group "Out Fox The Street" provides stock picks, deep research, model portfolios, daily updates, and real-time alerts to help investors identify potential multibaggers while managing portfolio risk [2] Group 2 - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [4] - It clarifies that past performance is not indicative of future results and that no specific investment recommendations are being made [5]

One interpretation of options market pricing by Goldman Sachs, says stocks won't be tugging the same way next year. ...

Core Viewpoint - The discussion emphasizes the importance of stock picking over index funds, highlighting that individual stocks can yield significant returns if chosen wisely, despite media negativity and market skepticism [2][21]. Group 1: Nvidia - Nvidia has been attempting to sell its high-performance chips to China, a market valued at $50 billion, but has faced restrictions from both the US and Chinese governments [4][5]. - The US government recently allowed Nvidia to sell the H200 chip to China, imposing a 25% surcharge, which is not expected to deter sales [7][8]. - Despite the positive development, Wall Street and media remain skeptical about China's interest in these chips, leading to a decline in Nvidia's stock price [8][10]. - The Chinese government is interested in Nvidia's products, despite supporting domestic competitors, indicating a potential future demand for Nvidia's chips [9][10]. - Nvidia is characterized as a retail stock, heavily owned by individual investors who are easily influenced by market sentiment [11]. Group 2: Apple - Apple faces ongoing skepticism from analysts, which has historically caused panic among shareholders, despite being a strong long-term performer [12][13]. - The launch of the iPhone 17 has been met with criticism, but the stock has performed well since its release, contradicting negative media narratives [15]. - The media's focus on negative stories about Apple is seen as a tactic to attract attention, rather than reflecting the company's actual performance [15][21]. Group 3: Warner Brothers Discovery - Warner Brothers Discovery, under CEO David Zaslav, has been working to reduce debt and improve cash flow, positioning the company for potential acquisition interest [17][18]. - The stock, previously trading at low valuations, is now seen as undervalued, with increased interest from acquirers like Paramount and Netflix [18][19]. - The belief in the company's turnaround strategy is emphasized, despite initial skepticism from the media [19][20].

On a day where the Dow dipped 179 points, S&P declined 009%. NASDAQ actually inched up.13%. I want to talk to you about how the stock business works against you.While I'm now on my incessant book tour to sell how to make any how to make money in any market, I've gotten intense push back from many who are in this racket, including those who don't even know it is a racket. The whole point of my book is that it's possible for you, you to make big money by picking individual stocks as long as you do it right. B ...

Core Viewpoint - Working for Greg Abel may not carry the same prestige as working for Warren Buffett, known as the "Oracle of Omaha" [1] Group 1 - The perception of leadership at Berkshire Hathaway may shift with Greg Abel at the helm, contrasting with the legacy of Warren Buffett [1]

Group 1 - The importance of timing and strategy in stock picking is emphasized, highlighting that identifying a great stock name is not sufficient without knowing when and how to buy and take profits [1] - The Cash Management Discipline is introduced, focusing on utilizing cash as a strategic position for overall success in investments [1] - The company prides itself on stock picking, indicating that even well-known stocks require careful selection [1] Group 2 - Subscribers receive curated lists for specific sectors, including Microcap Biotech, Aviation+Space, and Asset Light Stocks, indicating a tailored approach to investment opportunities [2]