Front-Running the Next Gen AI Clouds

Hi there,

If you read last week’s update, you know we were sitting patiently at an $840.54 total portfolio value.

This week, the tape handed us an absolute masterclass in capital rotation. Not only did we officially shatter our $1,000 target milestone, but our total account equity has rocketed to $1,143.05, up an incredible +35.9% in less than a week.

On top of that, I missed a massive move and felt regret, but I didn’t chase it.

I saw an extreme valuation disconnect in the micro-cap AI data center space, completely reorganized our board, and deployed every single dollar of our liquid cash into a high-asymmetric setup before the opening bell.

Let’s look at the updated layout.

P.S. This table reads best if you rotate your phone to landscape mode.

Last week, I held 14 shares of Optical Cable Corp ($OCC) with an average cost basis of $10.57. Early this week, the stock ripped past $13.00.

A lot of retail traders get emotionally attached to their holdings, but I look strictly at the math. At a $120M+ market cap, $OCC was relying heavily on a $10.4M backlogged order book to sustain its rally. It was trading at more than 11 times its backlog while carrying heavy legacy manufacturing overhead. Recognizing that it was slamming directly into its 52-week structural ceiling, I executed a clean exit, liquidated the position for a profit of $32, and brought our total liquid cash pile up to $181.75.

When my weekly cash injection of $150 came in, I had $331.75 cash ready to deploy.

Remember that 1-share tracking position I planted in Blaize Holdings ($BZAI) last week at $1.45?

I deployed a portion of our float to scale our position aggressively from 1 share to 178 shares at a beautiful $1.49 average cost because I think the business is extremely undervalued at current levels and if the revenue guidance is achieved, this will go up 2-3x.

With our remaining $181.75 in liquid cash, I went hunting for raw, undiscovered value in the AI GPU hosting ecosystem. What I found was a complete market mispricing: Alpha Compute Corp ($ALP).

$ALP is a sub-dollar penny stock ($0.49 at the time of writing) that was recently reorganized from a dead biotech shell (Portage Biotech). Because quantitative algorithmic screens still view it as a ghost ticker, the market is completely blind to its new operational reality but people are catching up to it.

Here is the exact fundamental math that made this an undeniable buy:

I fired our entire remaining cash balance directly into the tape, securing 370 shares at an average price of $0.49. By front-running the regular session crowd, our position instantly flashed green, climbing +7.92% to sit at a +$12.50 unrealized profit within minutes of execution. I’m holding this for the foreseeable future.

When news broke that a massive SpaceX IPO was coming in June, I went looking for a short-term sentiment proxy to ride the hype.

I targeted Momentus Inc ($MNTS), a space infrastructure firm that builds "last-mile" satellite delivery shuttles launched via SpaceX rockets. Knowing it was a high-volatility micro-cap at $70m market cap, I planted a tiny tracking slice of 0.03 shares at $7.69 to anchor it to my screen.

By Monday morning, the algorithmic momentum took over and went completely vertical, leaving me in the dust as it blasted past $20.79.

As you can see in the screenshot below, that tracker is currently sitting on an insane +163.9% total return but since I didn’t buy enough size, it means nothing now. I doubted myself, and paid the price.

It’s easy to look back and say I should have chased it, but passing on a runaway train at its absolute peak was a defensive choice to preserve capital. Instead of gambling on an over-extended top, I kept my discipline intact to hunt for better, un-tracked valuation gaps elsewhere in the market.

Our core board is now a perfectly balanced, high-velocity machine built to capture the entire AI infrastructure lifecycle:

We aren't holding cash, and we aren't playing defense. Every dollar is working. See you at the opening bell next week.

Ian Mutuli
Founder, Ticker Log