#275: 2 Stocks to Buy That Wall Street Is Ignoring

0:00Software solutions for fishing and hunting, CRM software for electricity and gas suppliers, business management solutions for builders and project developers, and software solutions for managing fire brigades. I mean, how many companies are going to bother to go after the fire brigade software solution market? So that means that these companies, because they serve such a small niche, have unreal retention, really sticky products, and huge switching costs. Peter threw some stats out at Investicon. He said 98 % of all customers stay every single year. He said there were roughly 20 businesses out of the 46 in their portfolio that tripled their prices and their retention rate was 100%.

0:48Emmett, how are we getting at? Hey Mike, how are you today? I'm good, I'm good. in the aftermath of Investicon I always get a very positive I'm not sure what the exact feeling is but just being in the room with the community of investors especially in Ireland where it's very much a niche subject always gives me a very positive kick on what we're doing here so it's great sorry we're recording this this is why we missed last week essentially is because I think it might be the first podcast we missed in a good while. Because we did Investcon last week in the Irish Stock Exchange on Thursday, August 21st.

1:31Emmet:And roaring success, I have to say. Ah, yes. We saw people fly and drive from near and far to spend a half a day with us and our guest speakers on the really very historic trading floor of the Irish Stock Exchange, which is a magnificent building in its own right. I think it's, did we say it was 1760 or something it was opened? I saw that on the wall. Oh, Jesus. I don't know. I thought it was 1870. The block on the wall was from 1879. Oh, right. Okay. That doesn't mean it was when it started, though. For sure. I mean, Julia, one of our members, flew in from the Bay Area of San Francisco for the half day.

2:09So thank you, Julia. And Trent flew in from Seattle for the event, which was absolutely incredible. and on stage as our listeners know because we've interviewed most of them here in stock club on the run-up we had lois cox and she is the former chief investment officer of kansas state university foundation we had eric bleeker who was and is the founder of 24 7 investing and is a bit of an ai genius really and we'll talk about that on this show we spoke with anthony sheehy who's the founder of irishwhiskeyauctions.ie and mark mclaughlin from the dead rabbit which you probably remember from your new york days do you do you mike yeah it was famously i don't know when it won it but it won uh best bar of the year like yeah best bar of the year in the world uh yes it's a big uh which is a big ticket island for a while i remember that mark probably served me when i was going to and from new york because i was a regular to dead rabbit we also had peter slagers who's the founder of Compounding Quality which is Substack's number one investment newsletter and we also had Tim Cohn who is the Vice President and Senior Wealth Consultant at Charles Schwab and he's a former NFL player huge big block of a gentleman who gave us really interesting stories not only about managing vast sums of money but his time in the Oakland Raiders and the Denver Broncos and so on and of course there was you and yours truly Mike So the two of us were on stage.

3:40So the day, on the day, our panel of experts, by my count, pinpointed 14 stocks for potential massive returns. In fact, it was 15, but one was mentioned twice, which is like a double blessing of sorts. and then there were four very collectible whiskey bottles that were mentioned by Anthony that appeared to me to be sure certs I mean I really wanted to just invest in them and if you add in the macro themes that excited Tim and Lois there was probably about 22 or so actionable ideas so yesterday last evening you and I thought it would be fun to pick one new idea that we heard at investicon uh something that's new to us now you said something back to me i don't think you're the one you're going to talk about is new to you because i heard you mention before but from that day you and i were fed a lot of great ideas and i think we shouldn't do our absolute favorite for obvious reasons a lot of people paid a lot of money to be there um but let's pitch our one of our favorites to each other on this show and i'm actually going to nick my favorite from eric the ai suitsayer and i'm also going to pitch um uh pitch it in horizon and i'll probably even buy it it's a face melter so actually sorry i'm going to pitch my favorite for merrick in horizon now listen up folks if you want a full debrief from the event it's not too late email pod at my wall street.com and we will send you a very special offer for horizon that's two goods pass up so So you get Horizon for a year, you'll get the Investicon summary with the 22 odd investment ideas and themes, and you will, as ever, have first access and favorable, very, very, very favorable rates on future events that we do.

5:34People who are Horizon members were allowed to attend Investicon this year for one euro, as opposed to 459 euro, which is what the majority paid. okay so part of my wall street.com so let's kick off mike which idea which stock pitch uh got you excited who made it and tell us all about it yeah i i i i had a different level of excitement than other people for this one and i think it's because it's a stock i already owned and it's very small business um a small business and it's just that kind of validation i suppose do you know when you hear yeah sorry i should give some context it was uh peter schlegers who recommended the stock the stock's called the chapters group i might have done a very quick pitch on this stock on the pod before i can't remember exactly but it has been a charging and fearless stock of the past and yeah it's that kind of reassurance maybe you're hearing someone of the kind of expertise of peter wax lyrical about a stock you already own over the stock you've gone and done the research for but because of a stock like this where there isn't a lot of work done on it there isn't a lot of analyst coverage there isn't a lot people talking about it you're kind of i wouldn't say not sure but it's not like you know oh that's the amazon or google i own in my portfolio do you know what i mean there's still question marks and you would need some kind of feedback from the stock itself do you know what i mean so i only only owned for three or four months we've seen i don't even think we've seen a earnings report in that time period.

7:24So it was there. It's not a huge position for me, but it's one I intend to build on if it goes well, if I'm more and more confident in it. And so the SOC is called the Chapters Group. What I loved about the pitch as well is that Peter actually went and got real on the ground insights from this. So Peter attended the Capital Markets Day back in July, so a couple of months ago, where he spent a couple hours with the CEO and really got the insight you can't read on the internet for stocks like this. So it's great. We'll get into all of it, but let's just give a bit of backstory about the Chapters Group.

8:05So the Chapters Group is a German stock trades on the Frankfurt Exchange under the ticker CHG. And I'd say that if anybody's, all the people I met at the event mentor are talking to me about these same kind of stocks and I love these kind of stocks. So it's a holding company. It owns and operates 46 diversified businesses across a number of industries. It specializes in vertical software providers. So it'll pick a niche across kind of any industry really, but it makes sure that it's incredibly critical software for that niche. So we all know about Constellation software at this stage, maybe one of the best assets you could have owned over the last 25 years mark leonard he's ceo he'll go down as one of the greatest capital allocators of all time one of them anyways um so chapters group is made up of x constellation software guys the ceo jan more his x constellation is along with three or four of his top brass brass i think and literally what they're trying to do is just copy and paste the same strategy as constellation so vertical market software is very critical software for very specific niches and i took a few examples out of uh out of chapter groups investor relations page the subsidiaries it owns um just just just to show how niche it is and and how how how this kind of strategy works so software solutions for fishing and hunting crm software for electricity and gas suppliers, business management solutions for builders and project developers, and software solutions for managing fire brigades.

9:47I mean, how many companies are going to bother to go after the fire brigade software solution market? So that means that these companies, because they serve such a small niche, have unreal retention, really sticky products, and huge switching costs. Peter threw some stats out at Investicon. He said 98 % of all customers stay every single year. He said there were roughly 20 businesses out of the 46 in their portfolio that tripled their prices and the retention rate was 100%. So that's the kind of traits these businesses have and why Constellation is so successful and why I hope that Chapter Groups has every chance of following in its footsteps.

10:27Because if you were zero in on that Fire Brigade software solution company, do you know what I mean? there are i would say 200 fire brigades across europe it's not like they have much of a choice do you know what i mean there there isn't fire brigades.ai just popping up being like yeah this is the market we want to go after and this is where we're going to spend all our money and all

10:50Emmet:our marketing dollars and everything else and you'd never think of it i mean as an entrepreneur you sit down and evaluate opportunities and like software for fire brigades you'd really want to have had an insight and organically grow from the first kind of fortunate customer if you know what i mean 100 i think um is it a niche mode um yes what's the what's the economic mode oh this is i should know this um so should i but i i just know it's a niche mode i know uh sorry now this is terrible podcasting because i'm actually googling it in the meantime folks let me tell you about the cool and refreshing properties of mountain dew

11:39efficient scale that's what it is so essentially um it the market is only big enough for one company to be profitable in that market. And so there's no point in, if I'm michaelomahony.com and I have the market cornered of fire brigades, there's no point in Emmett Savage going and spending a bunch of money to come in, undercut me, and then not make a profit. And then instead of one profitable company, there's two unprofitable companies and it just goes up in flames. So that's essentially what a lot of these companies are doing and what's feeding this engine, we'll say. Constellation software is tens of thousands of companies.

12:25Chapter groups is just 45. But you see the runway there. You see the strategy that works. So that's very clear. It's got a proven business model. It's got the stats that back it up. It's got the right people in place. And I want to go into that a bit now as well. and the inside information I think Peter picked up and what he shared with us at Investicon. So Peter drove from Belgium to Hamburg in July to attend Chapters Capital Markets Day. And then I think there wasn't very many analysts at that, so he ended up getting invited to dinner with them and he got to spend about, he said, 90 minutes to two hours with the CEO, Jan Moor, and the feedback was incredibly positive.

13:11So I think his quote was, as long as Jan Moore is in the picture and he's only 36, then us investors are going to do all right. And that's what I love about these businesses. And I was talking to someone about this exact thing. It wasn't about Chapters Group, but because the CEO isn't running the operations of the business, the CEO is solely focused on capital allocation, finding the best investment opportunities, and then looking to achieve ROI on them. it's kind of doing our job first do you know what i mean it's you can be a bit more hands-off with a stock like this compared to say with facebook and zuckerberg can go off and blow 20 billion quid on the metaverse because of his you know an inkling he has and you can be completely wrong and the stock absolutely tanked to look it's recovered since but you know he we see that facebook is the best example because zuckerberg has so much control over that company in the hands of one person, but he's not going out and deciding, okay, well, look, if I can get a 10 % return on this acquisition over X, Y, and Z, and it brings this amount of synergies.

14:25No, he's going out and being like, AI is going to change the world and I am going to spend as much money as possible so Facebook doesn't lose its position as the number one advertising platform X, Y, and Z. and i just think there's distinctions there that are important because as an investor it comes down to the numbers do you know what i mean like paying some flute 250 million quid a year who's 25 and just out of college there's not going to be a high roi on that but zuckerberg is steadfast in his decision that this is right for facebook the business and look facebook has you done incredibly well under Zuckerberg's tutelage and his leadership.

15:08So that's fine. You can have trust in him. But for a business like this, it's just, oh, yeah, there's a good investment. There's a good investor in charge. He's going to make good investments for the company. And that's all I have to worry about. He's proven he's done it 45 times before this. I'm very confident he'll do it 45 times in the next, whatever, five, six, seven years. and just let it run. Do you know what I mean? And it's what we see with Warren Buffett. Warren Buffett wasn't there underwriting Geico's insurance claims and getting involved in loss ratio or whatever else. No, all he did was spend money wisely.

15:46And he's obviously the perfect example of what everyone goes to. And unfortunately, probably what a lot of people compare themselves to in these kind of capital allocator CEO positions. But if you're proven to be a good investor in that, I think it's a very easy company for investors to hold. Do you know what I mean?

16:06Emmet:Yeah, I do. I had a look at the annual report when I got home from Investicon, and I did notice that the CEO, and I presume his co-founder or the other guy on the front cover, were so young, which is what happens when you're going gray and you're 50. Everyone looks younger. But the one thing you said there that strikes me as the principal risk is you said something to the effect of they've acquired 45 companies to this point and you have a high degree of certainty they'll acquire another 45 in the years ahead. I did quote you right, didn't I, Mike? Pretty much. Yeah. Well, it's that. I mean, obviously, that's the magic.

16:45Emmet:That's the formula. That's what they're out to do. But it seems that the competitive marketplace for serial acquirers is, to my eye, appears to be growing or else I've only grown into a phase of my investing life where I'm spotting them and seeing them and looking at them. Maybe they've always been as out there, you know, as they are today. um so like the the ability for them to go out and find other businesses that suit their portfolio i think it's probably getting to be a little more competitive but what i suppose uh is there is there barrier of sorts is the niche the the specific niches that they're looking for and that they're seeking companies in and the bigger they get the better deals they'll get which we know from giants like from berkshire hathaway when they walk in and offer a price they don't move a cent right through to constellation software who on multiple conference calls have said that their brand and scale has allowed them to be to get the best deal possible no i think that's true and it's definitely it's the top of the risk kind of factors for any business like this is can they continue to get good deals can they continue to execute it on this strategy i think there was it was it's correct um peter was saying the kind of general target is a evd of around sixfold was their general valuation targets you know what i mean so that's that's a decent uh litmus test of if they continue to get deals done around that level you know yeah yeah that that that kind of tells a lot tells a story about the competitive pressures because there's another company we love topicus that is doing something very similar and i know it's distinct in that it's going after a lot of um government software and public uh public work software and stuff instead but it's it's definitely swimming in the same seas and you know as we said already this we know the strategy works so what's stopping a new competitor coming in and being like well i can make this work at six and a half times EB-Tibit or seven times EB-Tibit and that immediately brings in new competitive pressures to the market it's completely true and it would be one concern um but again you know it's worked so far and it wouldn't it wouldn't uh it's the same like as in you know these companies they'll all have integration risks as well do you know what I mean it wouldn't it wouldn't stop me from uh wouldn't stop me from buying more at the minute unless that proves to play out over the next two three four five years i think it's actually quite a negligible risk i mean every business has a risk and every business has a long list of risks and if you were to get put off a business's opportunity exclusively for its risk uh every time well then you shouldn't invest at all um but what strikes me is that the if that risk plays out the way it manifests is just fewer deals are deals happening a little more slowly it's not like the business grinds to a halt so if you take a pharmaceutical the principal risk might be uh that their their patent protected drug is going to run out at x date and time and uh that's a very distinct cliff edge in the future but with this we won't actually see the real crystallized um outcome of that risk we'll just Obviously, a deal happened today where, in fact, it could have happened a year ago, but the only people who know that are the ones in the side chapter.

20:21It's just a slower deal. I did notice that it's about a billion dollar in market cap. Or sorry, euro. It's a billion, 950 million euro in market cap. So it's still a lovely size. but the downside for a lot of our listeners will be a broker that allows them to access

20:42Emmet:um is it i know it's a hamburg-based company but which are the aliens it's on the frankfurt exchange uh frankfurt exchange yeah so a lot of kind of everyday brokers uh fast casual brokers if you like will not make it easy to buy that share won't allow you to do it so you need a bit more of a bit more of a grown-up brokerage who do you who did you use to buy chapters mike that's on Revolut Revolut has pretty good coverage of European stocks it doesn't it doesn't cover a lot of I know it doesn't cover Canadian or Japanese I'm not sure about Australian but in Europe for reasonably sized companies Revolut has pretty good coverage well scratch all that well yes and no because that's pretty good I mean that's great a billion dollar um uh frankfurt based uh business that a billion euro that's very impressive it's been nothing but going up i presume even in the three months since you bought you're in the green oh i'm in the green all right yeah um it's had what the last couple of weeks a little downturn but it's okay yeah um but yeah i know it's great it's great to hear someone of peter's stature in the in the investing circles talk about a stock you already own so highly um it's that well your spatchers is just as great mike don't mistake that because he researched it you researched it and bought it so yeah it's like the full irish breakfast uh the chicken helps but the but the pig really was invested in it you know fried egg and a sausage you know every the whole farmyard played there a bit but the pig really went there and knew the same right that was uh that was chapters group uh on that lovely lovely analogy lovely farmyard slash breakfast analogy what a segue what an absolutely irrelevant segue no it's good it's good uh when my outlet uh had a good one for me there recently uh it's first time i heard it you probably heard loads of times but it's what is it oh yeah if you got a name for waking up early you can sleep in bed all day

23:04all right what do you got you're going down before i oh yeah yeah i'm going the ai route and before i'm kind of in a slightly related tone our business my wall street is going to invest very heavily in profit in the next year and apart from i believe it is already the greatest five minute a month formulaic investment product of all time it just needs that that value needs to pop into people's lives because people forget or don't take the advice we send but all i can say to our listeners is grab it today while it remains 29 books a month just go to useprofit.com and you can put backslash my wall street offer at the end of that domain if you want uh one of about a dozen three month free trials so we just i suppose just trust me folks give profit a free roll because a free trial because uh we're doing something special there and the more i mature and the more my wall street matures the more i'm certain that we've got ourselves a very special unique blue ocean based strategy product that you are going to want in the ai world and i spent some time talking to eric bleeker about profit and how we've deployed ai and as a as a certified expert in in ai as somebody who was buying invidia stock 10 years ago um um uh we he was in agreement with the presumptions and the facts that i had on the table about profit so okay so i'm going to talk about one of eric's uh stock pitches you just did one of peter slagers and eric spoke about ai under three teams i think he gave at least nine stock recommendations is that right he gave three under three categories orange um it's not far off if it isn't it?

24:52Emmet:Yeah. Well, one of the three areas that he was speaking about was robotics and automation. And one of the companies that he pitched is definitely a riskier play in LiDAR sensors. And it's called Ouster, O-U-S-T-E-R, and its ticker is O-U-S-T. And it has really strong growth targets like 30 to 50 a year for the years ahead and it basically produces applications across vehicles industrials and potentially humanoid robots which are space age until you see them arrive i mean there's no one in this listening to this podcast who enjoys taking out the rubbish or the trash the garbage no one wants to do that no one enjoys emptying their dishwasher sure no one enjoys those menial tasks but when there's a fleet of robots that for six thousand dollars does it for you it's it's something you would consider so ouster is is in their words the physical ai company powering the lidar revolution now you might uh have spoken about lidar in the past and why it matters and um when we've spoken about tesla versus waymo you've explained that tech but i'm just going to give a recap to our listeners on what is lidar everyone knows of radar um what does radar stand for mike can you remember no i'm not a clue me neither can't remember so that was pretty good but it is an acronym it is yeah because lidar is light detection and ranging um so it's a sensing technology that uses laser pulses to measure distance with extreme precision I think most of us who've watched David Attenborough have at some stage in life heard or seen about bats.

26:42They stand at a super high pitch squeak and they see the inside of a cave wall in the pitch dark because of the sound that comes back.

26:49Emmet:Well, this is an analogous technology using laser pulses to measure distances. And I know what laser stands for? Light amplification by stimulated emission of radiation. So total nerdy. So it admits millions. So this LiDAR tech emits millions of beams of light per second and measures the reflections. And basically what happens in the mind of the machine is a 3D map of the environment. So you can see why that's such an important tech with self-driving cars or anything else that's basically going to start to map the environment in which something is interacting. So if you think of it, it's basically vision for machines.

27:32Emmet:How do machines see? Well, very often tech uses LiDAR and it uses just total fractions of a centimeter. It should have a word, probably millimeter, probably. Yeah, you should invent a word called millimeter accuracy. Day or night and rain or fog or glare or whatever. And there's a whole bunch of applications that are proliferating as a consequence of this technology. Like, as I said, autonomous vehicles, robotics and industrial automation. So like in factories, parts that are being moved by robotic arms, where seeing machines are a thing and in warehouses. And then there's smart infrastructure, such as like traffic monitoring.

28:11You can imagine city councils, the need for them to monitor traffic and pedestrian safety and crowds. You know, pop up crowds happen everywhere across the world all the time. Perimeter security, all types of mapping and surveying, construction, agriculture.

28:27Emmet:And the more you think about this tech, you could sit down with a pencil and after 10 minutes come up with 20 applications for seeing machines that wouldn't have occurred to you unless you sat down. So LiDAR is really moving from an experimental technology, which in fact, when you and I or when you explain the tech to me and our listeners at first, at least a year and a half ago, in my mind, it was quite new. and it clearly wasn't if you worked in in the lidar companies that's been in development for quite a number of years but it's certainly no longer an experimental technology it's an essential technology so as a result of and i think the success of waymo is kind of a validation of that in a sense no question we're seeing we're seeing it roll out successfully in more and more cities across the u.s yeah very much it is like the kind of you see it on top of any waymo now it's the the spinning kind of hat or collar yeah yeah but that that is powering autonomous vehicles in everywhere except tesla and then showcasing i suppose the the efficacy of it elevates a company like ouster now as well and that they specialize in this technology that people see working with their with their two eyes instead of hearing about it yeah and and i know that tesla's advantage is that the camera method they're using is apparently a factor cheaper like exactly 120 of the cost the scalability of everything i think the scalability of it exactly but nonetheless the lidar market is projected to grow by about 20 compounded all the way through till 2030 so it's the the analysts out there are saying that there's something between a 15 to 20 billion in annual revenue markets.

30:18Emmet:So it's not bad as a starting point for Ouster, who now are positioned with the full stack. So let me explain. So the business was founded in 2015. It's only 10 years old. And it's one of the few companies with not only the tech, but also the manufacturing and commercial traction to lead the shift, or us fumbling over the strategic advantage earlier or of small niche businesses well its strategic advantages the first mover advantage which we all know is time limited um and the company has transformed from what was once a pure hardware maker into what it is calling a physical ai company which is interesting because for most of us ai is just this thing in the cloud you interact with a machine that's somewhere else but they are the physical ai company so they're pairing these industry-leading lidar sensors with their own proprietary software that turns the data into something that you can use actionable intelligence so in the most recent quarter uh q2 2025 revenue for uh for uh ouster was up from the floor i mean it's really the earliest days when you look at its um five-year revenue well revenue only switched on two years ago and it was negligible it was i think it was like two million or something um so so basically revenue for the quarter of q2 was 35 million dollars which was 30 percent up year on year they shipped about 5 500 of their sensors which was up about one third year on year for the quarter and they had a 45 gross margin um or 50 non-gap margin which was again up from last year up about 40 from last year which says that the business is getting more efficient at building and shipping and selling the stuff that it does so it has a bunch of cash uh in the bank about 230 million dollars cash in the bank it has no debt so therefore has a really strong balance sheet um maybe the strongest balance sheet in the lidar industry because you think of early stage businesses such as this they very often need to fuel with levels of debt well this business is debt free and has a whole bunch of cash and um and it has beaten its own guidance for 10 quarters in a row so i'm just looking at the long-term stock chart here it went public back in 2020 at yeah 97 bucks a share so i imagine it had a and it's at trading at 30 bucks a share now yeah and it went as high as 160 161 exactly yeah so it was valued as much as it's maybe over 10 billion my max is maybe shaking on that no i think you're right for a pre-revenue company um so it shows you're talking about the balance sheet there i imagine it uh did very well off that ipo and is as kind of had any deer in between but uh that's always kind of uh financially at least secure the business from that yeah um well said so it's market cap right now is about 1.7 billion dollars and you're right it's sort of above 10 uh billion dollars way back when well when i say way back when let me have a look it was only two two years oh yeah sorry so um so it's barely at the trap and it just went it started high went high and it's fun all fallen all the way back and we're at 30 uh about uh by 30 bucks a share is it i don't have it open here about 30 bucks a share that's up from 10 bucks a share last year as well so but that's volatile to say the least yeah and looking at historic share prices it's it's always fun but somewhat demoralizing to drop your finger on a touch screen at the lowest point to go imagine if i just went back and bought out of three bucks a share it'd be genius right now and there's no there's no stock on earth where if you look at its max share price uh graph you can find a low point where you should have done something but there's opportunity is is what you might want to do now is consider ouster because it has a vast opportunity it has smart infrastructure um and the company itself estimates that there's a total addressable market of about 19 billion dollars for lidar enabled infrastructure that's so that's like traffic lights um highways and safe city systems connected smart cities which all cities are moving towards um so products like ouster gemini and blue city are already out there sold in the network pairing intelligent systems and crowd analytics and perimeter monitoring then there's um so that's the first one smart smart infrastructure then the next area that they've got a product for is robotics and logistics and again most people have seen some piece on tv the inside of a giant e-commerce warehouse whether it's amazon or something smaller but the logistics and the technology inside those places is absolutely mind-blowing if you've never seen it so you know an old-fashioned view of the amazon warehouse might be a whole bunch of people walking around with a shopping basket when in fact when you look inside an amazon warehouse it's hundreds or thousands of robots on rails going collecting packaging and automating the dispatch as it is for so many other uh big businesses from micardo libre to you know your local place maybe hello fresh um so uh so that this this area is is growing we all know e-commerce is getting bigger warehouses increasingly rely on these autonomous robots and lidar is the offers this unmatched precision uh in these crowded environments with humans and machines and products all kind of interacting on a non-stop basis then the the third area that i still have a product and a solution is automotive adas or advanced driver assistance systems in other words keeping in lane blind spot detection collision avoidance you know my sense on that is that i'm not sure they'll make the headway that they would like into that area because so many manufacturers have spent their entire technical lives figuring it themselves and uh but it does they say there's a major upside catalyst for the business as it as this moves from in from niche premium cars into mainstream vehicles that every vehicle eventually will the entry level 10 000 euro car will have advanced driver assistance systems and then the fourth and final area where they see a revenue opportunity is security and defense and board protection and critical infrastructure and commercial facilities um that all that are required that require lidar so um there's plenty of blue ocean like this is not a everyday tech um it will sorry this is an everyday tech that is being rolled out at the moment it's not everywhere at this time but there is a giant opportunity and and ouster has an amazing uh roadmap custom silicon chips they have firmware upgrades and software platforms like gemini the one i mentioned which is their analytic software and blue city which is the one the one i mentioned for smart cities and the developer tools so when you think about um the textbook example of an ecosystem that everyone knows and understands is apple they built the iphone and opened it up for people to use or maybe a more niche example might be the raspberry pi but what they've done is they have developer tools and they've created the hardware for individuals and businesses to do whatever it is they need to do so this combination of the hardware and the software is critical so sensors are really just a race to the floor like there's no question about it anything that's a technical product that's going to be everywhere is effectively a commodity um that is just going to if you think of anyone who's bought a a camera for their home i want a 4k camera and nest is a brand you know but if you go online there are so so many technically superior products at a cheaper price point because they don't have a brand but the point is that lidar sensors are they're going to be every they're already on the way to everywhere but the real thing is when you pair them with software and then overlay ai you find you've got a really nice business model with recurring revenue and higher margins so um that's iust i mean they they are a earlier stage in the technology life cycle of life or of life cycles the life of lidar is still still in its early stages and of course like everything just like chapters risk we discussed where they might not have 24 or 45 whatever we said acquisitions in the years ahead like they the oyster has its own has its own risks i would think the market adoption and uptake in automotive might be lower than they expect as i said and i think there's an awful lot of competitors chasing the same opportunity and and when that happens a price war occurs which nobody really wants you don't have built this beautiful thing and find your margins are getting compressed because this giant other business over there um like what's to say that apple purveyors of air tags don't have the lidar equivalent for whatever it is you need so there are seen competitors and there's potential giants who could move in and crush them overnight but nonetheless i still think it has a potential to be a multi-bagger and so does eric eric pitched this world says it's the highest risk highest reward stock that always makes players pick up so um yeah 19 billion billion um tam um it already is exhibiting great growth and as i said 10 quarters in a row smashing uh analyst expectations the margins are improving the balance sheet is strong um and all in all i think we are looking at a relatively small player but not so small that's feeble we're looking at a 1.7 billion dollar business that has a brand that's known if you're in this space or if you're looking for something in this space and and um eric said to me that he could see a path to a 10 billion valuation in the next decade um i don't think he said that on stage we're chatting afterwards and i said i want more on this so i'm very interested in it and and uh I look for 100 baggers, but you don't know if you found one until 25 years later.

41:08So you don't even remember what you were looking for back then. So it could be a hundred bagger. I don't know, but could it be a 10 bagger? I certainly think it's one to consider. And it's one that I'm very interested in. Very good. Okay. Ouster, ticker OUST. That's it for the show, Emmett. Just two stocks. We won't be giving away much else around Investicon. But just thank you. if there are any listeners I know there are that were in attendance. I just wanted to give a big thank you because it was a great day and we really, really enjoyed having you there. Really, really enjoyed the chats after, the chats during, the actual speakers, of course.

41:47So yeah, that's it. I think just a big thank you to everyone involved. The organizers as well, Luke, JT, Anne-Marie, even your son and his mate were doing the doors, the least intimidating bounces I've ever seen. cheap labor but not that cheap to be honest when i ended up between tickets for the match and and

42:06Emmet:cash for the day um but uh couldn't have asked for two better but the whole team were brilliant um and don't forget folks pod at my wall street.com for a very special deal where we can send you the 22 or so stocks or investable items that were discussed in investcon plus a year of Horizon and also sign up for profit. You will be sorry when we do the stuff we're going to do if you missed it. Brilliant. Okay, Amit, thank you very much for joining me this week and thank you everyone for listening. We'll talk to you next week.