This "Spook" Stock Just Doubled (& Could Do it Again)

This sector is super-strong as well. [Logo]( This "Spook" Stock Just Doubled (& Could Do it Again) Hi Reader, Big Bill here. Thanks for joining me at “Micro-Cap Monday.” Summertime has traditionally been the time when rock bands hit the road, touring the world to support their latest albums. Bill Spencer Editor-In-Chief True Market Insiders Right now Taylor Swift is the “Queen of the scene,” out-selling and out-drawing every other act. The numbers are astounding. According to Chartr… “The Eras Tour [Taylor’s latest LP - Editor] has so far grossed more than $300 million since March, overtaking legends Bruce Springsteen and Elton John to become the biggest tour of the year. But how far can it go? Pollstar have estimated that it could gross over $1.4 billion by the time it concludes in August 2024, which would make it the highest grossing tour of all time.” “One study from research company QuestionPro reported that fans have individually spent an average of $1,300 per show to attend the tour, including tickets, travel, accommodation, and clothing. If concertgoers continue to spend at this rate, the tour could generate some ~$4.6 billion in consumer spending in the US alone.” With any undertaking of this size and complexity, security becomes a prime concern. “A blonde in a ponytail. Teenaged brunette wearing eyeliner. Latina with glitter on her cheeks. All stared unknowingly into a hidden camera recording their facial information as they watched rehearsal videos of a beloved blue-eyed pop star at a concert, their images beamed 3,000 miles away to a Nashville command post to be cross-referenced against a database of known stalkers.” - MTV That new technology, such as facial recognition A.I., should be pressed into service at a rock concert should not surprise us. Technology has gotten so sophisticated, and surveillance is such a part of our daily lives (traffic cams anyone?)... That it was only a matter of time before computers would be “trained” to recognize faces and to act as a kind of cyber-police. (Facial recognition tech was used to identify people involved in the January 6, 2021, riots at the US Capitol building.) No matter how you feel personally about all of this, there’s no denying security is big business. According to Research And Markets, “The market for global security screening was estimated to be worth $10.35 billion in 2021 and is projected to grow at a CAGR of 10.65% to USD $19.18 billion by 2027.” Evolv Technologies Holdings, Inc. (EVLV), was founded in 2013 and is headquartered in Waltham, Massachusetts. The company provides artificial intelligence (AI)-based weapons detection for security screening. Yahoo Finance reports that, “Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives.” The company’s customers include casinos, houses of worship, businesses, schools, sports venues and other arenas. According to the company, its products are unique because… “Evolv Express accelerates physical security screening while maintaining the highest degree of weapons detection accuracy. It eliminates the friction that visitors, fans, patrons, employees and students typically experience moving through security by screening them in a touchless manner. This helps reduce the security risk of crowded security lines. It also drastically reduces human errors by security guards.” The company last reported its financial results on May 10 (Q1 2023) and it had a record quarter. Subscriptions were up 206% year-over-year while revenue was up 113%. This well-managed firm has beaten EPS estimates in three of its past four quarters, and it met expectations once. And it has raised its earnings guidance for Q2. The number of giant hedge funds accumulating positions in EVLV has grown from 135 a year ago to 177 today, an increase of 31%. At the right of the chart below, you can see how the company has been growing its revenue by double and triple digits for a solid year now. At 9%, the company has little debt. Evolv is a member of the Protection Safety Equipment sector which has been gaining strength for almost three months. You can see the sector's rank on this screen capture of the Sector Relative Strength Matrix , one of the custom indicators offered with Sector Prophets Pro , our sector research and data platform.   [This]( is the real deal. Because when [this event]( happens tomorrow on July 25… It could send [this tiny stock]( trading for under $2 sky high.   Right now Demand (bulls) is firmly in control of this industry group. When we look at the sector’s bullish percent index (BPI) chart, we see that it is in a column of X’s. This tells us the sector is strong over the short term. (The most recent column is highlighted in yellow at the right of the chart.) What’s more, this current X-column is higher than the previous one. That means the chart is on a Buy signal. This tells us the sector is strong over the medium to long term as well. The Protection Safety Equipment group is also outperforming the wider stock market on a relative basis. You can see that by looking at the sector’s Relative strength (RS) chart, which compares the performance of the sector against the performance of the Equally Weighted S&P 500 index. The chart is in a column of X’s – strong – and only has two more boxes to fill in that X-column before the chart goes on a Buy signal of its own. Here’s a one-year price chart of EVLV. The green arrows at the bottom show the heavy trading volume that came in as the stock began its recent breakout. It went from $3.01 on April 20th to $6.98 on July 17. That’s a gain of 131%. It then pulled back about 13% and now trades near $6.07. It looks like it might pull back some more, possibly to the blue 50-day moving average line. So unless you’re on the aggressive side as a trader, you could wait a bit before committing, and get a better entry price. The lines at the upper right of the chart are Fibonacci extensions. They show price levels the stock should “want” to get to should it continue higher. The blue 100% Fibonacci level is at $10.09, or a gain of 66% from the current price. The yellow line at the very top of the chart is the 161.8% Fibo level. It represents a gain of 108.7%. One reason I like our chances with EVLV is that the stock trades for under $10. Many hedge funds are prohibited by their mandates from buying stock below that price. If EVLV can in fact reach that $10 Fibo level, it’ll clear the way for other funds to come in and buy, which should propel the stock higher. While I wish technology could give us “breakout stock prediction software” the way it’s given us “face recognition software,” I’m afraid that’s not the case. We’ll have to be content with picking strong stocks in strong sectors and setting the odds in our favor. Stay cool in the heat. Thank you for reading, and I’ll see you next week. Bill Spencer Editor-in-Chief, True Market Insiders   [True Trader’s Sunday School #11 - This Is the Best Year of the Strongest Cycle]( [This Home Builder is Strong, Strong, Strong]( [An Artificial Intelligence Primer](   Below is a sponsored ad from our friends at Behind the Markets. Please note the results are from some of their best performing. Some opinions may differ from what you read in True Market Insiders. To opt out from receiving special offers [click here](. - Chris Rowe, Founder AI Creates New Cancer Drug - In Just 30 Days! On December 22, 2022, AI discovered a new treatment for multiple myeloma... in just 4 months... On March 19, 2023, AI discovered a new drug for liver cancer... in only 30 days... There's one small-cap at the center of it all. Bill Gates owns 7 million shares... Billionaire hedge-fund manager Steve Cohen owns 1.4 million shares... 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