“Red Chip” Stocks: Where the Real Money Is Made

Andy Snyder|November 1, 2021

Editor’s Note: Our big news on Thursday was a BIG hit. Folks are falling over themselves to watch Alpesh’s huge interview with Buck Sexton. With just 450 slots available in Alpesh’s service today – plus a chance at a dream “royalty” vacation – it’s no surprise folks are going nuts. Click here to see what they’re so excited about.

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You know… this Elon Musk fella is really becoming quite an American hero.

Hear me out on this one.

First, he tells California adios.

It can keep its high tax rates. Musk is picking up shop and moving with the herd to tax-friendly Texas.

Ha.

Next, no surprise, the carmaker Musk started hit a trillion-dollar valuation… setting a record for the company with the lowest sales figures to ever hit that behemoth mark.

Just days after that accomplishment, Musk told members of Congress to shove it regarding their asinine tax hike on unrealized wealth… saying they’ll destroy humanity if they pass it.

“My plan,” he said last week, “is to use the money to get humanity to Mars and preserve the light of consciousness.”

He’s certainly doing a better job of it than NASA is these days.

He followed up with the truth…

And when he’s not tossing jabs at Congress, he’s daring the SEC to mess with him.

The agency nailed him for $20 million earlier this year.

Thanks to its backward regulations and irregular rulemaking, he’s made it all back… and then some.

That’s why we like the fella. He’s proving a point that we’re eager to shout from the electronic mountaintops.

Rigging the System

We’ve written about it before. Musk’s Tesla is not a car company.

Oh sure, it makes cars… in the same way the U.S. government makes laws. The cars get all the attention and headlines… but they aren’t where the real business gets done.

The real stuff happens in the shadowy margins… those oh-so-dark spaces where there’s room to roam without the eyes of the commoners peeping in.

Take a headline from last week, for instance. It hammers home a valuable idea we’ve been trying to tell you about Musk and Tesla.

Here’s the headline, straight outta Bloomberg…

We’ve all heard about the silly and arbitrary emissions caps put on carmakers. They make for great headlines and give the politicians something to stand on.

But it turns out they don’t mean squat… Most manufacturers are simply paying their way out of these mandates.

And Tesla is eagerly taking their money.

You see, for each new car it makes, it gets a credit for adding another car that doesn’t guzzle gas to the nation’s potholed streets. Those credits are worth more than the cars Tesla makes. They’ve added $1.15 billion to the company’s coffers so far this year.

It’s cash that goes straight to the bottom line.

In the latest case, Tesla is teaming up with dirty European automakers to help them meet their emissions mandates. Honda joined their quiet little pact last year.

Of course, the Land Rovers coming off the line won’t be any cleaner because of the deal. And Tesla will still do what it does. But it will get the government off Land Rover’s back.

The company, which is owned by Tata Motors, paid $48 million in fines last year for missing its cleanliness marks.

This year, it’s getting a better deal from Tesla.

Introducing “Red Chip” Stocks

To us, this proves something we’ve been saying louder and louder of late. A company can virtue signal all it wants. It can tout its “greenness.” It can boast of all the good it’s doing in the world. But the real money is being made by the Musks of the world… the folks who are playing the other side of the coin.

Look… government regulations and nearsightedness are the reasons ships are stacked up off our coasts… They’re the reason energy prices are soaring… And they’re the reason the market is begging for an alternative to the dollar.

Musk isn’t doing anything wrong.

He’s simply taking advantage of what the government created and offering an alternative.

He’s making the world cleaner. He’s taking science to new heights. And he’s getting filthy rich in the process.

Some folks want the government to get the job done. But Musk would rather do it himself.

The way we see it, the market will soon divide into two camps. On one side will be companies like Tesla that take advantage of government ineptitude and do good in spite of it.

Tesla’s shares have gone from $60 to more than $1,000 in less than 24 months.

On the other side will be companies that signal their virtues and wait for Congress to pass its latest law.

They’ll keep the bankruptcy courts busy.

Perhaps, bowing to all things political these days, we’ll dub one set the “red chips” and the other set the “blue chips.” After all, in this upside-down market, the definition of “blue chip” isn’t what it used to be.

Dare we say it… our money is on red.

Note: Don’t forget about your chance to enter the huge vacation sweepstakes we just announced. It’s all part of the big interview we arranged between Buck Sexton and Alpesh Patel… who we call “the queen’s Dealmaker.” To see what has readers so excited… and to learn how Alpesh’s stock picking system has beaten the market by 580%… click here.