Dear Transformity Ultra Growth Investor,

"May you live in interesting times!" and "May you find what you’re looking for"--of course in Chinese, these are considered curses.

As mentioned, we have entered a literal new paradigm shift in the American markets for tradeable securities. If you define a paradigm shift correctly as a "fundamental change in approach or underlying assumptions" a major paradigm shift in the public trading of securities in the United States is here and not going away any time soon.

The "new assumption" is this significant paradigm shift is much more than GenZoomer/Millennials at their parent's home trading penny stocks. But as mentioned many times before, with 11 million new stock brokerage accounts opened in the last 12 months (median average size account $250--average account size $2500) makes the GenZoomer/Millennial trader the new marginal buyer of not just stocks but every tradable security except bonds.

Now of course, when you get a HUGE 11M+ influx of new marginal buyers into ANY trading market (marginal buyer meaning a price or value insensitive buyer), you get valuation bubbles. This bubble is not just dot com stocks in 98-2000--this bubble is multi-asset and running on super steroids because the oxygen powering these simultaneous bubbles is different. 2021 equities and derivative markets are now really stoked and driven by the digital and human nature convergence of
1) The Digital Attention Economy--"he who gets the most attention gets the most power" see GME
2) Dopamine Economics--the thrill of winning big money from risk-taking is addictive and that rush goes viral when you start posting screenshots of your big wins on social media reaching tens of millions of securities speculators
3) Securities betting vs. Sports Betting dynamics--America is a country of sports betting and sports bettors. But when you make a sports bet the outcome is binary--you either win the bet or lose 100% of your money on that bet. With trailing sell stops, if your bet on a stock or option turns against you, you only lose a small fraction of your at-risk money
4) Pandemic Relief $Checks + working/studying at home = free cash burning a hole in your pocket + entertainment at the same time!

The result of these four major paradigm catalysts in 2021 is we melted into one mind-boggling giant securities bubble:

Retail Trading Tsunami: before the pandemic, retail trades were 13% of daily trading--now 22% on some days.

Penny Stocks Tsunami: in 2019, 8% of stock traded were under $2--today some days <$2 stocks are 22-24% of ALL stocks traded.

Options Trading Tsunami: Daily options trading has more than doubled in the last 12 months.

Crowdsourced "CrowdSqueeze" Short Squeezes: Reddit's WallStreetBets began 2021 with 1.7 million members--now it's 6 MILLION+ users. Add to those numbers a fair amount of "YOLO" (you only live once) and FOMO (fear-of-missing out) mentality traders and ONE single stock tout on WSB can blow up a $multi billion hedge fund. Since October, the Russell 2000 stocks with the highest percentage of short selling are up 80% ish--lowest amount up 15%.

Bitcoin/Crypto Bubbles: When the Bitcoin Bros morphed into my first 10X stock recommendation Microstrategy selling a $1billion convertible note to buy 1/800th of the Bitcoin inventory, that was a massive paradigm shift for bitcoin. I spent enough time with Michael Saylor back in the early 2,000's (my ChangeWave Research company was a MSTR client as well) and I can tell you firsthand he thinks differently than most every other human being on the planet. I once talked him out of his idea to implant a digital device in people's ear that would tell them stuff like "Mortgage rates have dropped to the point you can refinance your mortgage and save $300 a month--say "Yes Let's Do It" and I will handle the work for you."

Of course, as I type this I am listening to my favorite movie soundtracks (Band of Brothers right now) with my AirBuds PRO in my ears and I can ask Siri "Siri--call Rocket Mortgage" or "Open Rocket Mortgage web site" and refinance my mortgage in about 3 minutes so what do I know!

Anyhoo--I still have 10 bitcoins from 2010 locked up in an impregnable encrypted digital wallet that I don't have the password to (20% of existing Bitcoin (worth ~$200B) is either lost or stranded in digital wallets so at least I have company) and yes I am bitter.

IF demand (especially corporate demand from Elon and Saylor and more) continues to exceed demand for the 21 million bitcoins, and the May 2020 "haveing" aka the amount of bitcoin released for mining a block of transactions was cut 50% remains intact, these digital tulip bulbs will continue to go higher in a nearly $1 trillion bubble. I can tell you I personally know a few Bitcoin billionaires who have bought much of downtown San Juan, Puerto Rico for pennies on the dollar after the last hurricane catastrophe and are building a hurricane-proof new downtown, and they ain't selling much BTC. It is also estimated that just 1% or 1000 digital wallets own 55% of ALL BTC or about $550 billion--and they ain't selling much either.

Action to Take: I will buy Bitcoin or Ethereum on its next steep sell-off when the US Treasury says something to rattle the market. But Canada just approved 2 Bitcoin ETFs --and other countries are as well. Rember the tulip bulb mania was spread person-to-person like any mania. In the digital age, one tweet showing how someone made $1M buying $10k of BTC back in the day can go to millions of people via social media aka The Attention Economy.

Net Net: The 2021 "stock market" today is bifurcated into 5 major sub-markets defined by the level of risk, volatility and secular/cyclical nature of earnings growth:

We now have
1) "The New Penny Stock Casino" where a stock like OPTI based on social media can run from .06 to .45 cents in a few weeks

2) The CrowdSqueeze Casino where a stock like GME based on social media can run from $4 to $480 in 48-72 hours--and then back to $40 (still a 10X win) in the next 24-28 hours

3) The SPAC Draft Pick Lottery where a SPAC like CCIV can move from $14-$56 on a rumor that it's merging with "Tesla Killer" Lucid Motors or a SPAC can move 100-200% in a day (and its warrants which WE buy into pre-reveal SPACS are up 450%!) when it reveals a definitive agreement to buy a SEXY BEAST of a company like CAPA HighCape Capital Acquisition did with Quantum-Si which "makes a single-molecule protein-sequencing platform for “proteomics,” the study of how organisms use proteins.

The company said in announcing the deal that its product “is on track to launch commercially in 2022 for research use [and] has the potential to significantly disrupt an existing addressable $21 billion market of pharmaceutical, academic research and drug discovery. The platform also may enable new diagnostic applications in healthcare.”

4) The Market for Secular Growth Digital Transformity and ESG Stocks

5) The Market for Cyclical Pandemic Recovery Stocks (which our Ultra Income Portfolio covers nicely) when we get to July and the world goes on a Travelgeddon experience as in "I'm vaccinated--now I am taking a friggin vacation or visiting family or just taking a road trip ANYWHERE that takes me out of my friggin home!!"

Note: Since Dec 1, our SuperSPAC Pro Trader portfolio of 10 pre-reveal SPACS and our set of 3 different option trade strategies has AVERAGED 146% per TRADE since Dec 2 2020 launch. We just loaded 10 more "pre-reveal" SPAC warrants from the warrant master Steven Adams and we have a number of lucrative options trades coming up in the next 30 days as well.

If you want to win the SPAC Draft Pick Lottery along with our SuperSPAC Pro Trader traders, come in an join us with the newsletter OR our join Discord trading room which is just amazing in value and education.

We have room for 50 more SuperSPAC Pro Traders --at 146% profit per completed trade, our traders are making a killing in the SPACs--come to join us! Click here to join--SuperSPAC Pro Trader.

OPTI Update--Buy Under .35 Cents $1.25 Target 2022

We got the OPTI Q3 2020 report a day later than forecast, but all-in-all they answered a few key questions and they next need to answer a few of my questions (which we are trying to schedule for early next week.)

The major uptick in Fall Covid-19 cases slowed the delivery and wholesale distribution of their $2B PPE orders, and their customers have extended delivery times accordingly. They added an additional 18k of warehouse space to expand their distribution capacity which opens March 1. They reinforced their plan to use the @$100 million in wholesale profit (based on their inventory numbers, they are truly the middleman--they end-buyers LOCs (letters of credit) pay the manufactures directly and OPTI get 10% of those payments for distribution services) to repurchase enough of their stock to get the stock to a $2 bid which qualifies for Nasdaq uplisting.

My questions for the CEO are as follows:

1) With $20M of PPE "on the ground" in their warehouses, that leaves $1.98 billion to go--what is the new time schedule for completion of delivery of this giant order --in months or years?

2) You said you expected $100M in gross profit from the transaction or a 5% gross wholesale margin. In Q4 you had $11M of sales and $7M of net profit...how much of that profit was wholesale PPE gross margin (if any)?

3) How much PPE storage capacity in $ will you have with the new facility? How long does it take to bring in and ship $20M of PPE?
From their OTC Filing: "INVENTORY Inventory is recorded at lower of cost or market; cost is computed on a first-in-first-out basis. At December 31, 2020, and June 30, 2020, we had an inventory of $2,821,540 and $80,600 respectively, consisting of UVC units and Optimized Fuel Maximizer units. Due to the increase in the personal protection equipment (PPE) market and business growth, the Company has added an additional 17,298 square foot warehouse storage and distribution facility that is within close proximity of the current two locations. The company takes possession of the new facility on March 1, 2021. On-the-ground inventory at the Company’s Scott Street distribution center has now increased to an excess of $20M. The Company has added increased security including surveillance monitoring and alarm security to ensure 24/7 protection. The Company is continuing to fulfill the obligations of the $2B+ PPE medical supply contract currently with an extended completion date due to the recent increase in global COVID-19 cases which posed significant production pressure to manufacturers limiting the availability of on the ground product. Upon full completion of the contract, the Company intends to use the profits to launch a stock buyback program and continue the goal of uplifting to the NASDAQ Exchange."
Market Conditions: The QQQ Is Getting Shaky Here--LOOKING for a Buyable Dip

The Triple Short QQQ ETF SQQQ is looking like a breakout. IF this holds, we will add some SQQQ Call Options as a short-term hedge.

ENBL--Let's Close Out our 335% PROFIT with Buyout Offer from Energy Transfer

Congrats to ALL who stepped into ENBL with us in the March 2020 Meltdown--did you ever imagine making 3.5X your money in an MLP?

If you hold, you will wind up with Energy Transfer shares which we already own...so TAKE the massive profits and look at our Ultra Income portfolio for new high yield plays!

We updated Buy Unders this afternoon. Our trackers are now pinned to the TOP of our Ultra Growth and Ultra Income Portfolios on our website:

https://transformityresearch.com/ultra-income-portfolio

https://transformityresearch.com/ultra-growth-portfolio

PS: Our Post Pandemic Massive Global Industrial Paradigm Shifts include

1) The Green Hydrogen Economy
2) The EV Everything Ecosystem from rare earth to EV manufacturers
3) The Genomics + mRNA Revolution Economy
4) The Green New Deal Infrastructure World: Solar/Wind/Battery Storage Economy
5) The New Space Travel & Exploration Economy
6) The Digitized EVERYTHING Analog World Disruptors
7) The Digital Enterprise: SaaS Platformity Dominators and Rising Vertical Stars
8) The AI/Machine Learning+Robotics+ Edge Computing Economy
9) The 5G and IoT Ubiquitous Digitized Economy
10) Powerful Regulatory Transformations starting with Deregulated Cannabis/Psychedelics
11) The New Home Office Living + DTC Ecommerce Economy
12) Powerful New Biden Fiscal Transformations
13) The Golden Age of Biotechnology


Next up--an amazing biotech breakthrough with 600% upside potential!

OK--it's Gin & Tonic (4 carbs!) time!

Toby