October Trade Recap & Strategy Outlook:
As we close out October and move deeper into Q4, our measured, low-velocity trading approach has continued to serve us well allowing us to stay flexible while managing risk in a market that’s becoming increasingly selective.
This month, we initiated two new positions, JAMF (JAMF) and Kodiak AI (KDK) both chosen for their unique exposure to secular growth themes. That patience and precision have paid off, as we’re now seeing momentum in elevated growth names begin to cool, confirming our decision to stay disciplined early in the quarter.
However, that caution ends here we’re preparing to shift gears and get aggressive into year’s end, capitalizing on emerging dislocations and Q4 seasonality.
On the profit-taking side, we closed three positions Teradyne (TER), Serve Robotics (SERV), and Pony AI (PONY) each booking 30%+ gains. While we remain bullish on all three names long-term, market froth and elevated volatility made this an ideal window to lock in profits and rebuild cash for the next wave of opportunities. As always, you never go broke taking profits.
Macro Overview
The broader macro backdrop remains defined by two diverging economies the cyclical economy, which continues to struggle under inflation and cost pressures, and the secular economy, powered by high-capex sectors like tech, defense, and infrastructure that remain in full expansion mode.
The U.S. has firmly entered an era of fiscal primacy, where government spending now guides economic direction more than monetary policy. With midterms looming and fiscal dominance shaping the agenda, we expect continued policy support to stabilize growth-sensitive sectors through the election cycle.
Q4 Sector Strategy
Overweight:
Technology: AI, robotics, and automation remain the structural winners, benefiting from strong capital inflows and long-term demand visibility.
Crypto: Positioned ahead of a potential wave of institutional adoption and clearer regulatory frameworks.
M&A-linked Midcaps: Consolidation momentum remains strong these names continue to offer asymmetric upside.
Underweight / Avoid:
Cyclical or overextended sectors facing margin compression, policy risk, or valuation fatigue.
Heading into year-end, we expect rotations, volatility, and opportunity the kind of environment where discipline and timing matter most.
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 (ATS), our expectations were measured and deliberate. This isn’t the type of ticker that makes headlines or rips overnight it’s a disciplined industrial operator, defined by consistency, execution, and long-cycle value creation. In markets obsessed with short- term momentum, it’s precisely that quiet, methodical nature that caught our attention.
We believe ATS remains materially undervalued, supported by several converging factors that are starting to reshape the automation landscape.
1⃣ Valuation Tailwinds from Strategic M&A
The recent SoftBank acquisition of ABB’s robotics division at 2.4× sales and 17.2× EBITDA redefined the market’s pricing floor for automation assets tied to AI-integrated manufacturing.
By comparison, ATS trades at just 12× NTM EBITDA despite its exposure to the same secular trends constrained by transitory factors like an EV cycle unwind, a CEO transition, and elevated leverage (~3.5×).
This transaction reinforces our conviction that the market is underappreciating the intrinsic and strategic value embedded in ATS’s platform.
2⃣ Structural Demand: $350B in U.S. Manufacturing Commitments
ATS’s client base has collectively committed over US$350 billion in U.S. manufacturing investments this year, underscoring a structural and sustained need for automation solutions.
As reshoring accelerates and North American manufacturing capacity expands, ATS stands to benefit directly from this next phase of capex-led reindustrialization.
Why We’re Staying Overweight ATS:
True industrial automation exposure directly linked to AI-driven manufacturing processes.
Reshoring and supply chain localization creating a multi-year automation supercycle.
M&A re-rating potential as strategic buyers and institutional investors increase exposure to robotics and precision automation.
The market hasn’t fully recognized it yet and that’s the opportunity. ATS is building its foundation quietly, with the kind of operational leverage and balance sheet optionality that compounds over time. As AI, robotics, and industrial automation move from narrative to necessity, ATS is positioned to evolve from an overlooked operator into a core holding for capital rotating into real, AI- linked manufacturing exposure.
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: 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: Jamf Holding Corp
Quote: $JAMF
BT: $11.58
ST: $18-$20
Sharks Opinion:
Jamf is a name we know well, having traded it during its IPO back in 2020 when shares debuted at $26 and quickly ran near $40. Since then, the stock has been largely off our radar, drifting lower and now sitting around $11, more than 70% below its early highs.
Last month, however, Jamf re-emerged as a potential trade after reports surfaced that the Minneapolis-based Apple device management company is exploring a sale.
Following a round of layoffs, Jamf has been working with Citigroup to field acquisition offers, which suggests that strategic discussions are real and ongoing rather than speculative noise.
One of the biggest factors in play is Vista Equity Partners, which owns roughly 34% of Jamf. With that level of control and Vista’s history of engineering value-maximizing exits, it’s reasonable to assume they could push toward a near-term resolution if the right bid comes to the table. For us, this looks similar to our recent trade in PagerDuty an event-driven swing setup where the core thesis hinges less on fundamentals and more on corporate activity.
At current levels, the downside appears relatively contained given how far the stock has already fallen, while the upside could be meaningful if a takeover premium materializes.
In short, Jamf is back on watch. We see this as a swing trade with a wait-and-see approach, positioning for potential M&A while staying nimble in case headlines cool off. It’s not a set-and-forget investment, but rather a tactical trade in a name we’ve successfully navigated before.
Description: Jamf Holding Corp. provides management and security solutions for Apple platforms in the Americas, Europe, the Middle East, India, Africa, and the Asia Pacific. The company provides Jamf Pro, an Apple ecosystem management software solution for IT environments; Jamf Now, a pay-as-you-go Apple device management and security software solution for small-to-medium-sized businesses; Jamf School, which enables IT administrators to set up devices with a focus on learning and meeting security needs for deployment and device and application updates; and Jamf Connect, which provides identity and access management for Mac and mobile devices.
Needham Reiterates Buy on Jamf Holding, Maintains $20 Price Target
Morgan Stanley Maintains Equal-Weight on Jamf Holding, Lowers Price Targetto $10
Canaccord Genuity Maintains Buy on Jamf Holding, Lowers Price Target to $15
JMP Securities Maintains Market Outperform on Jamf Holding, Lowers Price Target to $18
Company: Kodiak AI, Inc.
Quote: $KDK
BT: $7.31
ST: $12-$14
Sharks Opinion:
When lined up against its peers, Kodiak Robotics (KDK) screens as one of the most undervalued names in the autonomous driving space. For context, Alphabet’s Waymo carries an estimated $45 billion valuation, and Aurora Innovation (AUR) has maintained a six-month average market cap near $11.7 billion. In contrast, Kodiak trades at a fraction of that, despite already generating revenue, securing government contracts, and hitting major operational milestones.
Kodiak is now approved to operate in 24 states, with both military and commercial partnerships in place and thousands of autonomous trucks slated for deployment by 2027. It’s not a speculative concept it’s a company already executing.
That said, the stock’s Nasdaq debut was turbulent. Following early enthusiasm, shares dropped 22% on Sept. 26, sliding further into month-end as SPAC-related dilution fears weighed on sentiment. By Oct. 1, KDK hit a low of $5.96, signaling trader fatigue.
Then came the reversal. On Oct. 2, news broke that Soros Fund Management had taken a 5.7% stake, sparking a 14.6% rebound. The next day, Cathie Wood’s ARK Invest disclosed its own position, driving an additional 8.8% gain to close at $7.43.
That back-to-back institutional endorsement flipped the narrative from uncertainty to renewed conviction — and that’s exactly what drew our attention. It’s a classic setup: a deep post-SPAC pullback followed by smart money accumulation, creating an asymmetric opportunity.
We’re approaching this trade with measured conviction a $12 short-term swing target (aligning with its initial listing price) and a $20+ long-term target as adoption scales and institutional ownership deepens.
For now, it’s a swing setup with long-term potential volatile, yes, but in a space where volatility can be opportunity.
Description: Kodiak Robotics, Inc. builds and operates self-driving trucks. The company delivers freight for its customers between Dallas-Fort Worth and Houston. It offers solutions in the areas of updating automated drivers, a network of transfer points facilitates, and fleet management tools. The company was incorporated in 2018 and is based in Mountain View, California, with an operations center in Lancaster, Texas.
