Dear Reader,

Good morning!

We had more questions during and after our webinar Tuesday than I could answer in one go. I saved the tough ones for today.

Let’s get right to it.

In some ways this was our most-important webinar.

Here’s a replay for you.

A lot of people seem to understand intuitively the power of AI in medicine and healthcare.

And our readers are especially bright and curious, so we got some really unique, insightful questions I want to share with you and answer today.

Ronald asks: How certain are you that the legislative mandate will be passed by law into Congress?

And Sheila asks where it stands in the Senate.

So to answer your questions, Ronald and Sheila, this seems to be a bipartisan issue.

Remember, this really has roots in Covid, when Trump’s first administration launched “Operation Warp Speed” to push drug development.

They realized they could do a lot with things that were already out there if they just pushed it all together and marched and focused.

So there’s been a lot of talk on both sides of the aisle about what this really means over the last couple years. 

The left wants it for animal lovers - there’s been talk about not killing innocent animals for a while. And many people on the right are animal lovers like that, too.

Nobody wants to be the party that supports killing animals when you don’t have to.

So there’s really no moral high ground to play against this bill.

People understand it’s good for business, you’re going to unlock a lot of drug development at lower costs and that this is the future. Everybody knows it.

An anonymous viewer asks, “recently, an intricate prostate operation was performed in South Africa by AI instruments controlled by a surgeon in Florida. How is this possible?”

I’ll tell you something - the robotics that I see coming will blow your mind…

I’ve done a ton of research on robotics that I’ll be sharing with you in the coming weeks, and the technologies are unreal.

Wait till you see what’s coming. It’s going to be crazy.

Right now, AI lives on our screens - our computers, phones.

All these data centers are being built and we’re about to see AI jump from the computer into the real world.

We’re talking way futuristic, Ray Kurzweil stuff here.

This is happening, and surgery is going to be nothing compared to what’s coming.

Richard asks, “what if Trump doesn’t vote on this?”

Richard, this is Trump’s baby. It’s legislation being pushed by his administration. He’s not going to kill it.

Kevin writes in, “I’m loving this webinar. I’m up over 60% this week on biotech.” 

That’s great, Kevin.

I added this one because I wanted to give Charles who hosts these webinars with me a little shoutout.

See Charles? People like us. 

He can be a little grumpy, but we have fun doing these. 

And Kevin, we love that you’re up 60% this week in biotech - that’s great.

Biotech Insider is a kick-butt service.

We’ve been running it since March of 2018 and have averaged 48% on all closed trades - winners and losers.

Now, it hasn’t been a lot of fun since the election - that’s the truth.

It’s been tough. But look, long-term, we know these things move in cycles.

We’ve been in a biotech “winter.”

But right now, big money is starting to come back into biotech at the same time we’re seeing a ton of bargains in the sector. 

This is a very good time to enter biotech.

The “smart money” understands what the Trump administration wants to do, and is bracing for a revolution in biotech.

This tells me the great bargains we see right now in this sector won’t be bargains for long.

Big money wants back in. 

We love bargains. We love stocks when they are cheap.

And a lot of biotech companies right now are historic bargains.

We got a question from Chris about this: “Many biotechs have a market cap less than the enterprise value. Could you please explain the significance of that aspect?”

Chris, basically, what’s driven the biotech market down is when Trump came to office and RFK Jr. just started stripping funding from the NIH and all these institutions.

Things started to change, which slowed things down at the FDA.

So Big Money said, “nah - we’ll leave biotech for a while. We’ll chase opportunities in other areas and wait for the dust to settle before getting back into biotech.” 

For the past six months, biotech has been in the doldrums after money left the sector.

But now, reasonable investors see these stock prices are so cheap - just ridiculous, laughably cheap really.

They’re so cheap, now people want IN.

You have a lot of companies - something like 1,400 - with stocks trading for less than a company’s cash. 

When you invest in stocks like this it’s like you’re buying the cash and getting the science, all the intellectual property, for free.

Biotech is funny that way.

It gets to the point sometimes where it’s absurdly and comically cheap, and that’s where we are right now.

Patrick writes in, “what’s the most important stock related to AI?”

Patrick, it’s early innings for the AI game - that’s for sure.

So far, it’s been Nvidia. Very much like Cisco was the early winner of the dot-com boom. 

Remember Cisco? It was huge.

They sold all the routers and equipment to get everybody online. Unstoppable then.

As a side-note, Cisco has just now gotten back to where it was before the dot-com crash.

So what we see is that companies that sell hardware to other businesses tend to do well early on, and not as well as software companies later on.

You’re starting to see a few changes here in this AI “Cambrian explosion.” Conflict and competition.

We’re starting to see other companies start to develop chips that are catching up to Nvidia’s. 

But ultimately, it looks like software will dominate, as it always does.

So my guess is we’ll have sector winners. 

Think Palantir in defense…

The companies I talked about during our webinar will lead AI in biotech/drug development.

We’ll see sector-specific AI leaders do very well.

We’re already seeing that shift take place.

And as you know, we’ve been in the biotech game a long time.

These are the “Nvidia” and “Palantir” of AI in healthcare.

"The Buck Stops Here"