| This one was Karim's spot back in January. While everyone was chasing the obvious AI plays, he found Absci Corporation (ABSI) – a generative AI biotech company applying artificial intelligence to drug discovery, specifically antibody design. The catalyst that caught Karim's attention? AMD's $20 million strategic investment, plus a partnership to deploy AMD's Instinct™ accelerators to power ABSI's AI drug discovery models – including their proprietary antibody design platform. With three promising candidates in their pipeline and a relatively small market cap, the risk-reward setup was compelling. Karim recommended buying at or under $2.95 in March. Exit after earnings catalyst: $3.55. Clean 20.9% gain. What happened next: ABSI became one of the better AI-biotech stories this year, running from our $2.95 entry to over $7 by fall. The AMD partnership proved to be just the beginning. The lesson: The better AI plays aren't always the obvious ones. Sometimes it's the companies using AI to revolutionize old industries like drug discovery. Winner #3: Dominion Energy's 26.2% Political Headwinds Play This one was pure political trading. Dominion Energy had invested $10 billion in wind projects. Political winds were shifting. Charts showed resistance at $57. The play: Buy Dominion May 55 puts. Two weeks later: 26.2% gain as regulatory risks hit the stock. What happened next: The regulatory pressure on renewables continued through the year. Dominion's wind investments became an even bigger liability as energy policy shifted. The lesson: Political catalysts move slower than earnings, but they're more predictable once you spot the trend. Some Lessons We Learned In 2025 Looking back, these three winners represent what worked consistently in 2025: Diversification isn't just about sectors – it's about strategies. We had momentum, fundamentals, and politics all working in one day. Catalysts come in different flavors. Short squeezes explode fast. Innovation plays build over months. Political moves grind steadily. Position sizing determines everything. Same setup, different size, completely different outcome. Good opportunities hide in plain sight. SOUN was on our free watchlist. ABSI was overlooked AI. Dominion's problems were obvious if you looked. Your Action Plan As we head into the new year, I'm watching for the same pattern: multiple strategies across different catalysts. The fundamentals haven't changed: AI moving into new sectors like biotech, political uncertainty around regulations creating opportunities, and high short interest setups waiting for the right spark. The market doesn't care what strategy you use. It only cares that you use the right strategy for the right setup at the right time. That's what one solid day in May taught me. That's what will drive profits in 2026. Ready to find the next opportunities? Join us in the War Room where we're already spotting January's setups. |
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