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Should You Hold Transact Technologies (TACT)?

Laughing Water Capital, an investment management company, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, investment in the fund returned 8.4% after all fees and expenses compared to 10.6% and 5.2% returns for the SP500TR and R2000 during the quarter, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Laughing Water Capital featured stocks like TransAct Technologies Incorporated (NASDAQ:TACT) in the first quarter 2024 investor letter. Headquartered in Hamden, Connecticut, TransAct Technologies Incorporated (NASDAQ:TACT) designs and develops transaction-based and specialty printers and terminals. On May 2, 2024, TransAct Technologies Incorporated (NASDAQ:TACT) stock closed at $5.18 per share. One-month return of TransAct Technologies Incorporated (NASDAQ:TACT) was 5.50%, and its shares lost 7.50% of their value over the last 52 weeks. TransAct Technologies Incorporated (NASDAQ:TACT) has a market capitalization of $51.774 million.

Laughing Water Capital stated the following regarding TransAct Technologies Incorporated (NASDAQ:TACT) in its first quarter 2024 investor letter:

“TransAct Technologies Incorporated (NASDAQ:TACT) – Transact, a small position, is one half of a duopoly that makes printers for slot machines, and has also been building back of house restaurant software attached to printers. The company has been running a strategic review which I think could surface value of somewhere between $10-$14 per share, but unfortunately this process is at risk due to problems with one of the company’s largest shareholders.

In brief, B. Riley is a hybrid brokerage/bank/investment platform, and they are currently being investigated by the SEC for actions that may be attached to securities fraud.iv As such, B. Riley has been selling the stocks they own, and the presumption from the market is that they will continue to be a seller. In the case of Transact, which is an illiquid stock, I believe this is acting as a major overhang on shares. Public share price unfortunately acts as an anchor when trying to sell a company, so not only do we have a noneconomic seller of TACT shares, but the sale process of the company may be knocked off track as well.

This is the third company we presently own where a top holder is dealing with a non-economic circumstance that has forced them to sell shares, or created the impression that they will shortly be selling shares. This is statistically highly unusual, and we have little choice but to wait for these overhangs to clear either by the sellers exiting their positions, or otherwise making their intentions known.”

A specialized printing machine producing a unique product in a sterile laboratory environment.

TransAct Technologies Incorporated (NASDAQ:TACT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held TransAct Technologies Incorporated (NASDAQ:TACT) at the end of the fourth quarter which was 7 in the previous quarter.

We previously discussed TransAct Technologies Incorporated (NASDAQ:TACT) in another article, where we shared the list of best affordable tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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