Aug/Sept Trade Recap & Strategy Outlook:
As Q3 earnings season approaches and September winds down, our disciplined, low-velocity approach has kept us well-positioned.
We initiated only one new position PagerDuty (PD) and that restraint has served us well. Elevated growth names are beginning to lose steam, validating our cautious stance. At the same time, our patience has also meant sitting out on a few opportunities, but the pullback we’re now seeing is exactly the type of setup we’ve been waiting for.
This summer can be defined as the “Summer of Rippy.” U.S. equity markets have powered higher with unrelenting strength: the S&P 500 moved from the mid-5000s in May to 6200–6300 in June, 6500 in August, and 6600 in September. Every ceiling has been tested and broken.
The big question now: where does the market begin to slow?
Investors have spent months talking about seasonality, waiting for a correction that never arrived. With the FOMC meeting this week, both sides of the market are on edge. Bulls argue that rate cuts will fuel further upside through easier money, while Bears see cuts as an admission of economic weakness.
Our stance? We don’t need to be perma-bulls or perma-bears our only job is to position where the money is being made and avoid where it’s being lost.
The watchlist update that follows this note reflects a shift: we’re seeking new risk exposures, but only under the right conditions.
Q3/Q4 Sector Strategy
Overweight Positions:
Technology: AI, robotics, and automation continue to attract flows and strategic investment, providing durable tailwinds.
Crypto: Positioned ahead of anticipated regulatory clarity and institutional adoption.
M&A-linked Midcaps: Companies with attractive takeout profiles in consolidating industries remain a sweet spot for asymmetric upside.
Underweight / Avoid:
Sectors facing cyclical headwinds, declining margins, or structural overvaluation.
Longs:
These are stocks we have been long for some time and the current BT doesn’t represent other entry prices, The BT is updated weekly for new subscribers to jump in and know when to get out.
These stocks tend to have 6 Month-2 years holding period and is suggested for larger capital Allocations in your portfolio.
Please read the Overviews for full research and instructions on how to trade each name individually
Company: ATS Corporation
Quote: $ATS
BT: $29.72
ST: $48
Sharks Opinion:
When we initiated our position in ATS, we did so with measured expectations. This isn’t a flashy ticker that rips overnight it’s an industrial operator, steady and methodical, the type of name that often gets overlooked on the tape. That quiet consistency is exactly what drew us in.
Now, beneath the surface, things are starting to shift. Volume has picked up meaningfully, especially following the recent CEO transition, a classic signal of institutional repositioning. From a technical standpoint, the chart is building a constructive base that sets the stage for a potential breakout if momentum continues to stack.
Our initial entry came on weakness a starter position framed as a long-term bet on secular growth, not a quick swing trade. ATS is tied to themes with staying power, and we see significant runway if the thesis continues to play out.
We continue to rank ATS as our top robotics sector pick, underpinned by:
Real industrial automation exposure linked to AI-driven manufacturing.
Reshoring tailwinds as North American supply chains evolve.
Potential M&A catalysts as capital rotates into next-gen automation leaders.
The market hasn’t rewarded it yet, but that’s the point the foundation is being laid now. As robotics and automation attract broader strategic and institutional attention, ATS is well-positioned to transition from quiet operator to key beneficiary of sector-wide capital flows.
Description: ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. It also offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post-automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services.
TD Securities maintained a Buy rating on ATS Corporation, with a price target of C$49.00.
Raymond James analyst Michael Glen maintained a Buy rating on ATS Corporation today and set a price target of C$48.00.
RBC Capital Maintains Outperform on ATS, Lowers Price Target to C$48
Goldman Sachs Maintains Sell on ATS, Lowers Price Target to $30
JP Morgan Maintains Neutral on ATS, Lowers Price Target to $31
Company: Teradyne, Inc.
Quote: $TER
BT: $118.62
ST: $160+
Sharks Opinion:
Momentum looks constructive, but the key decision now is timing do we trade the near-term swing or hold fire for a pullback to build size into a long-term allocation?
Why It Works as a Trade
Technical strength: Buyers defended the $80 base, and the rebound has been orderly.
Catalyst stack: Earnings upside plus Amazon robotics exposure gives traders fuel.
Momentum tailwind: Headlines around robotics adoption keep feeding flows into the name.
Why It Works as an Investment
Dual Identity: More than chip-testing hardware, Teradyne’s robotics arm is a sticky, software-driven growth story.
Moat Protection: Engineering complexity, capital intensity, and embedded expertise insulate it from rivals.
Growth Shift: Today’s numbers lean on semis, but robotics is the next leg touching auto, aerospace, and AI-driven manufacturing.
The Bigger Picture
Teradyne sits at the intersection of hardware and software, backed by a global distribution network and a sticky customer base with little incentive to switch. That dual positioning gives it the rare quality of being both a short-term momentum trade and a long-term compounder with structural tailwinds.
Our View
We see room for TER to keep running, but the smart play may be twofold:
Trade the momentum now while robotics headlines are hot.
Keep dry powder for a pullback that offers a better long-term entry.
If history repeats, ongoing semiconductor demand combined with robotics acceleration could push Teradyne into another phase of sustained upside beyond just the next swing.
Description: Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. It operates through Semiconductor Test, Robotics, and Other segments.
Stifel Maintains Hold on Teradyne, Raises Price Target to $100
UBS Maintains Buy on Teradyne, Raises Price Target to $130
Morgan Stanley Upgrades Teradyne to Equal-Weight, Raises Price Target to $100
UBS Maintains Buy on Teradyne, Raises Price Target to $120
JP Morgan Downgrades Teradyne to Neutral, Raises Price Target to $102
Company: PagerDuty, Inc.
Quote: $PD
BT: $15.89
ST: $24-$30
Sharks Opinion:
PagerDuty is a name we know well, having traded it multiple times in the past. The story hasn’t changed much at the core: this is a small enterprise software business with slow growth and thin cash flow margins. From a fundamental perspective, it looks more like a product suite waiting to be absorbed by a larger consolidator than a standalone long-term growth story.
And that’s exactly why it’s interesting right now.
Market Context & Hedge Fund Positioning
Despite reporting a solid quarter last night, the stock fell clear evidence that the market isn’t buying into PagerDuty’s standalone growth prospects. Instead, the real story seems to be accumulation in anticipation of a sale. Hedge funds have been quietly positioning here, with ARK Invest, Renaissance Technologies, and State Street all showing allocations last quarter. These aren’t random names these are prominent players that tend to get ahead of M&A-driven trades.
Sale Rumors & Corporate Actions
The company itself essentially opened the door to speculation a month ago when management admitted they were exploring strategic alternatives, including a potential sale. On top of that, PagerDuty announced a $200 million share repurchase program during its earnings call a move that often precedes or accompanies M&A discussions as a way to support valuation and shareholder returns.
Why It Makes Sense
Nothing management has done in recent years suggests PagerDuty can scale into a dominant independent vendor. The company’s product suite, while useful, looks far better in the hands of a larger enterprise software player with deeper sales channels. In other words, PagerDuty fits the profile of a tuck-in acquisition, not a standalone compounding machine.
Description: PagerDuty, Inc. engages in the operation of a digital operations management platform in the United States and internationally. The company's digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and incidents.
Baird Maintains Neutral on PagerDuty, Lowers Price Target to $16
RBC Capital Maintains Outperform on PagerDuty, Lowers Price Target to $18
PagerDuty price target lowered to $18 from $20 at RBC Capital
Canaccord Genuity Maintains Buy on PagerDuty, Lowers Price Target to $19
Company: Serve Robotics Inc.
Quote: $SERV
BT: $11.01
ST: $18-$30 (the speculation for what it could be is its greatest advantage)
Sharks Opinion:
The stock has begun to stir from dormancy, consolidating just as robotics takes center stage in 2025. With investor appetite rotating from speculative AI hype toward real-world automation, Serve is creeping higher on our trade radar.
The Core Thesis
Last-mile delivery is broken:
Labor costs are rising.
Fulfillment expectations are tightening.
Automation is no longer optional
it’s necessary.
Serve’s robots, purpose-built for urban delivery, could be part of the solution.
Why It’s Compelling
High-profile backers add credibility.
Commercial partnerships show early traction.
Deployed tech is already collecting valuable data.
The Risk Factor
The challenge isn’t whether autonomous delivery will happen—it’s whether Serve can scale before its cash runway runs out. In early-stage robotics, capital efficiency matters as much as innovation, and Serve’s burn rate is the elephant in the room.
The Setup
If robotics continues to rally and attention expands beyond humanoids and industrial arms, Serve could attract flows as a niche automation play. The name carries high risk, high upside, but for investors willing to take calculated shots in the robotics theme, it’s a setup worth monitoring closely.
Description: Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces for food delivery activity in the United States. It builds self-driving delivery robots. Serve Robotics Inc. was founded in 2017 and is headquartered in Redwood City, California.
Wedbush Initiates Coverage On Serve Robotics with Outperform Rating, Announces Price Target of $15
Cantor Fitzgerald Initiates Coverage On Serve Robotics with Overweight Rating, Announces Price Target of $17
Northland Capital Markets Maintains Outperform on Serve Robotics, Raises Price Target to $23
Ladenburg Thalmann Initiates Coverage On Serve Robotics with Buy Rating, Announces Price Target of $16
Company: Pony AI
Quote: $PONY
BT: $18.14
ST: $28 (short term)
Sharks Opinion:
Pony.ai is beginning to gallop higher once again, and our plan remains tactical: if our sell target is reached, we’ll look to exit, then re-enter on a dip. This isn’t a “set-and-forget” name it’s one that demands active management.
The Bullish Case
Momentum picked up sharply on the back of rumors that Travis Kalanick, Uber’s co-founder, may be in talks to acquire Pony’s U.S. assets. That speculation alone was enough to ignite a rally, as investors priced in the potential for:
A strategic windfall from asset sales
A potential exit route from Pony’s ongoing U.S. regulatory overhang
Renewed credibility through association with a high-profile operator
The Bearish Counterweight
Enter Grizzly Research, a short-seller with a track record of moving markets. Their report tore into Pony’s financials, partnerships, and long-term viability, injecting a heavy dose of doubt into the story. The result was volatility: sharp moves both ways, with sentiment flipping on each headline.
Where Things Stand
Pony has become a classic battleground stock, a tug-of-war between bulls banking on a Kalanick-driven catalyst and bears convinced the fundamentals won’t hold.
The truth likely lies in the middle—but with limited verifiable information, the visibility is murky.
That makes Pony less of a conviction hold and more of a fluid trade, requiring close monitoring and quick decision-making.
Our View
We remain long for now, but with full recognition that the risk profile is elevated. Any confirmation of the rumored asset sale could turbocharge the bullish thesis, while further fallout from the short report could flip sentiment decisively bearish. For Sharks, the play here is flexibility—ride the momentum, but keep capital nimble.
Description: Pony AI Inc., through its subsidiaries, engages in the autonomous mobility in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. It also offers robotaxi services, including a suite of AV engineering solutions comprising AV software deployment and maintenance, vehicle integration and engineering, and road testing; and fare-charging robotaxi services. In addition, the company offers personally-owned vehicle intelligent solutions, including intelligent driving software solutions, proprietary vehicle domain controller products, and data analytics tools; vehicle integration services, software development, and licensing services; and vehicle-to-everything (V2X) products and services to enhance road safety. The company was incorporated in 2016 and is based in Guangzhou, the People’s Republic of China.
Deutsche Bank Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $20
B of A Securities Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $18
Goldman Sachs Initiates Coverage On Pony AI with Buy Rating, Announces Price Target of $19.6
