The Newsmax Stock EXPLOSION *and* SCARY Economic Data JUST OUT.

Well, holy smokes, we got a lot of

things going on this morning, including

data that came out this morning. I'll

give you a breakdown on the data dump,

but first we got to talk about Newsmax

because holy smokes, this morning I sent

an alert to course members that Newsmax

was going to be the meme stock of the

day. And remember what happens when you

get into meme stocks, you better have

your trailing stop because boy, those

things when they go down, they go down.

But boy oh boy, shout out to the people,

the brilliant minds over at Newsmax

because they know how to play this. Why

would Newsmax IPO at $10 and end up at

$158 at the time of this recording? I'll

make this really simple for

you.

5.8% of this company is available to

trade. That's it. So imagine you were in

a desert and people were starving.

and there was a piece of pizza or a sl,

you know, like a whole pie of pizza that

was available to eat, but only one slice

was put out. Well, there'd be a frenzy

for that one slice. And that's basically

what you've got here. The value of that

rest of the pizza just got so much more

valuable because of the freak out people

have over that tiny sliver. There's

they're too few shares to actually

absorb how much demand there is. And

keep in mind, Newsmax is going to be

pumping their stock like crazy to all of

their subscribers. Obviously, this makes

sense. They're a news company. And they

have the This is not supposed to be a

derogatory phrase. It's just the easiest

way to put it. They've got the MAGA

alignment, right? I don't know why some

people think saying MAGA is like an

insult. Make America great again. It's

it's it's, you know, a movement. So, uh,

the MAGA alignment is actually really,

really good for them because, you know,

their revenues are probably blowing up

under the association with Trump right

now. Now, we just got an annual report

from them. So, I can go through some of

the numbers with you. I'll give you just

a quick look at these numbers because I

do want to get into some of the economic

data that came out this morning. When it

comes to the financials of this company,

their online digital subscriptions are

shrinking by about 5.4% 4% leading to

some losses in that segment, but their

broadcasting or TV section likely

because of their exposure again to the

MAGA alignment is up

41%. Massive growth in 2024 versus 2023

from broadcasting. So, straight up TV.

Uh, and this makes a lot of sense. Uh,

41% growth. This is what people love to

see in an IPO. So, they're probably

IPOing, you know, on the back of peak

election time frame. Here you've got

advertising revenue up about 1.2%,

affiliate fees up

a,000%, subscription fees, um I mean

you've got some real movement here in

revenues, which is very impressive. Uh

now when we get to their total

financials, their balance sheet is okay.

They've it's not great. They've got

enough cash to cover uh enough cash and

investments and receivables to cover

most of their current liabilities. And

some of these will probably be paid off

in stock, uh, such as their derivatives

or warrant liabilities, deferred

revenues. We're not so worried about

those anyway. So, the balance sheet for

the next year is okay. It's not like

they're on the edge of bankruptcy or

something. Uh, however, the company does

lose money. You can see that despite

that explosion and sort of the broadcast

revenue, their total revenue is at $171

million are leaving them with a g gross

profit of 84. But once they advertise,

pay their employees, their rents,

professional fees, 3 million of

depreciation, other corporate matters,

some of this could be related to the

IPO. We'll look at that in just a

moment. Uh they have a net loss of about

$72 million, and they've lost money in

24, 23, 22. So, this is not a company

that has uh that has ever been

profitable. Uh however, they might be

able to pull off uh some uh you know,

some money raising with the movement in

their share price, pump up their balance

sheet, and maybe reinvest into their own

business a bit, which will be very

interesting. Uh as as far as this uh it

looks like they have a settlement of

about $40 million payable over time uh

due to some legal matters uh including

lawsuits filed by Smartmatic and other

affiliates of Dominion Voting Systems

where Dominion was seeking 1.6 billion

in damages. Uh and so some of those

expenses could be one-time expenses.

does look like they'll still, even if

you uncount those, still be close to a

loss at the company, but a lot of

enthusiasm for Newsmax, again, heavily

related to a lack of shares outstanding.

Uh, with that said, the data this

morning on the economy was not the best,

and I wish it was an April Fool's joke,

but the data this morning was a little

heavy. The Jolts data and construction

data, as expected, wasn't that

impactful. uh you know you can go to the

Meet Kevin uh website. So just go to

meet Kevin.com. You could be part of the

membership where we broke down pay

attention to these and not these uh and

that way you have tradable information

that you could play with in terms of hey

like here's here's something to watch

for. And what we warned was that

construction jolts probably wouldn't

matter. They didn't mostly because jolts

think about it. It's from February. It's

kind of dated data. It's not that useful

right now. And not only is it somewhat

dated, uh, but the Joltz report, usually

what we find with these jobs related

reports from the government, is they'll

tell us good numbers and then they get

revised down in the future. So it seems

like there's a lack for liability there.

What was a lot more impactful, I think,

especially on future pricing here, is

that ISM report that we got this

morning, which wasn't great. The ISM

report this morning in March indicated

that manufacturing slipped further into

contraction after expanding only only

marginally in February. Demand output

weakened. Uh new orders fell further

into construction. New export orders uh

dropping into con contraction. The

backlog of orders contracting at a

faster rate. Customer inventories

remaining too low. In other words,

people aren't willing to actually fill

up their inventories because they're

uncertain about the future. uh people

companies are revisiting uh production

plans. The employment index moved deeper

into contraction. Companies continue to

release workers via attrition as opposed

to layoffs still at this point. This is

why we say when we get to layoffs, it

could hit hard and fast. People call it

the gray swan that we know is there, but

nobody's really paying attention to

right now. Demand and production

retreated as destaffing continued and

panelist companies responded to demand

confusion. 46% of manufacturing GDP in

March contracted. That's way up from the

20 4% we saw previously. Here are some

comments from other industries. In

March, markets saw a slowdown with fear

and inventory stocking to hold through a

potential crisis. questionable medium to

long-term demand due to government

policy, including retaliate retaliatory

actions by other countries. Starting to

see slower than normal sands in Canada,

concerns over Canadian boycotting,

business conditions deteriorating at a

fast pace. Expect this short-lived

demand from, you know, the pull forward

of tariffs to be

short-lived. No evidence of growing

demand. Worldwide economic instability

has begun to impact our oil and gas

business.

uncertainty about whether or not demand

destruction is going to occur as they

raise prices and all these things really

negative these reports in fact about uh

one person hired for well comments

around one person being hired versus 1.3

for staff reduction comments so um

hiring freezes and attrition really

affecting this economy not in the layoff

process yet and uh in and really overall

this ISM report. It was a miss across

the board. All of the numbers basically

missed. Uh it's a little boring to read

the numbers, but you had misses on each

of them. Uh and that is in addition to

the S&P Global report that we got this

morning, which also wasn't that

fantastic. It read very very similarly.

Uh it actually on its headline beat a

little bit. So there was some enthusiasm

around oh okay it beat a little bit. But

when you actually looked at the report,

it wasn't that great. Hiring stalls as

orders rise only modestly. Sector growth

stalled, having grown strongly in

February, partly because of tariffs.

Employment numbers unchanged after 4

months of gains, largely due to the

impact of tariffs. Highest level of

input price inflation in 2 and 1/2

years. Drop in production, first time

since December. Modest fall was a stark

contrast to the fastest rise in

production we saw during February.

Mostly again that pull forward.

Everybody's trying to get ahead of those

tariffs. You can see it here. Cracks are

now starting to appear. Production fell

for the first time in 3 months in March.

And order books are becoming

increasingly depleted. This idea that

order books are becoming depleted is is

problematic because this means some of

the data that we've recently gotten is

is exciting, but it might not last,

causing firms to quote stop raising

payroll counts for the first time since

October. Supply chains are also

suffering from a degree not seen since

October 22 as delivery delays become

more widespread as everybody's trying to

run ahead of terrorists. Sluggish demand

growth and elevated costs weighed on

hiring. Levels of work outstanding

declined in March at the fastest rate

since December. That's not good either

because it's a sign that like the amount

of future ordering that's available is

is going away and that leads to laying

off. uh against the backdrop of falling

output and slower order book growth,

manufacturers signaled a mod modest cut

in manufacturing activity. So you know

overall both of these reports relatively

negative in the face of a market that's

very hopeful we can avoid a recession

and it's very hopeful that we have a buy

the dip opportunity here and we can

rebound. So far we're not seeing any

kind of major stress on the um 10 uh you

know the 210 curve. uh you'd expect to

see some more drama here although the

bond market is rallying today. So a lot

of people who are investing into tickers

like TLT or TMF very very happy today.

Uh as some of this data is recessionary

and even bargain this morning from the

Federal Reserve as he was speaking at

the council on foreign relations talks

about this idea that the bond market is

pricing in more of a recession risk than

the stock market which on one hand

creates opportunities. If you don't

think there's going to be a recession,

well, great. Then, you know, the bond

market is is overblowing it and and uh

the stock market isn't really pricing it

in yet, which creates some

opportunities. If you do think that

there is a recession coming, then the

stock market's still relatively elevated

relative to the bond market. Anyway, uh

if you're interested in diversifying to

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check go to houseack.com. You get a 5%

yield plus 100% of the upside in the

stock. You know, if we IPO one day and

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and uh and and you get downside

protection as well. So, go check that

out over at

househack.com. And uh let's let's see

how markets move. But so far, it seems

like markets are very happy. You've got

uh the NASDAQ fully recovering after

some of this rough data that we got this

morning, which is not a surprise because

there's been so much selling off on this

tariff news. A lot of people think just

like we saw at the end of the day

yesterday, markets are due for a rally

once we actually get the news. So, it's

sort of like sell the rumor, buy the

news is somewhat what markets are moving

like. So, we'll see what happens. But

anyway, happy April Fool's Day. This is

all the uh uh data for this morning. I

hope hopefully it's useful for you. And

if you like it, make sure to subscribe

to the channel and see you again in the

next one. Thanks so much. Goodbye and

good luck. Why not advertise these

things that you told us here? I feel

like nobody else knows about this. We'll

we'll try a little advertising and see

how it goes. Congratulations, man. You

have done so much. People love you.

People look up to you. Kevin Pra there,

financial analyst and YouTuber. Meet

Kevin. Always great to get your take.