Latest / Felix Nikolas Prehn's Podcast / Felix Prehn - Banker Confronts: Motley Fool’s 450X Stock (The Next Nvidia) + Stock Market News 13 August 2025

Transcript

Felix Prehn - Banker Confronts: Motley Fool’s 450X Stock (The Next Nvidia) + Stock Market News 13 August 2025 · Felix Nikolas Prehn's Podcast

• 0:00
  Speaker 1: Motley Fool just identified one stock with huge potential thanks to a deal with Apple.
• 0:06
  Speaker 1: This isn't some teeny tiny stock.
• 0:09
  Speaker 1: This one even pays a dividend, and the stock name is I'm not going to hold you hostage Cognex Corporation, ticker symbol CGNX.
• 0:18
  Speaker 1: Founded in 1981 and headquartered in Natick, massachusetts Try spelling that and it's a leader in machine vision systems.
• 0:28
  Speaker 1: Think of these as the eyes for robots and machines, helping them inspect, guide, read barcodes in factories and warehouses and so on, and I'll give you the key reasons to potentially be bullish on this stock.
• 0:42
  Speaker 1: Obviously, there are risks and you've got to go and do your own research and come to your own conclusions, but there is so much to this.
• 0:50
  Speaker 1: I've even made a workbook for you, which is this one here, all 20 odd pages, which not only walk you through the ball case where I give you all the data, but also show you how you can track and what you should probably do for every single stock that you are owning and buying.
• 1:06
  Speaker 1: You need to keep a record.
• 1:09
  Speaker 1: So download this document.
• 1:10
  Speaker 1: It's at felixfransenorg slash potential.
• 1:13
  Speaker 1: It's the first link down below.
• 1:14
  Speaker 1: It's completely free, of course, and for those of you who are really serious about your portfolio and your financial freedom path.
• 1:22
  Speaker 1: I'm going to do one better for you.
• 1:24
  Speaker 1: I'm actually holding a free live training for you on Saturday at 10 am, new York time, where I will shake you up and then I'll make you into a better, rules-based investors.
• 1:35
  Speaker 1: I'll teach you and go through what and how Wall Street invests.
• 1:40
  Speaker 1: There's a link for that, too felixfriendsorg slash training, so make sure you click on the one that really matters to you.
• 1:46
  Speaker 1: Now, what are the key reasons to actually be bullish on CGNX?
• 1:51
  Speaker 1: Well, look, these guys play a critical role in Apple's supply chain, and I'm going to just show you here briefly that this is literally all in the document that I have prepared for you as well.
• 2:06
  Speaker 1: So if you're more of a reader, here we go.
• 2:08
  Speaker 1: We've got the overview financials ball case investment thesis, financial analysis, deeper risk valuation, action plan we need to monitor, and then also resources.
• 2:18
  Speaker 1: So this is pretty in-depth, right.
• 2:20
  Speaker 1: So they are a confirmed supplier to Apple.
• 2:25
  Speaker 1: They provide machine vision systems for iPhone manufacturing not for the iPhone and it ensures precision in assembly lines.
• 2:34
  Speaker 1: And historically, apple has accounted for about 20% of Cognex, a key player in Apple's ecosystem with potential to benefit from Apple's big shift into robotics.
• 2:52
  Speaker 1: Yes, that is where Apple sees the next growth potential.
• 2:57
  Speaker 1: It is robotics.
• 2:58
  Speaker 1: It is called Project J595.
• 3:02
  Speaker 1: Did I put that in here somewhere?
• 3:05
  Speaker 1: Probably J595.
• 3:09
  Speaker 1: Did I put that in here Somewhere?
• 3:09
  Speaker 1: Probably J595.
• 3:10
  Speaker 1: Yeah, apple developing here are some of our ball case thesis for this right.
• 3:14
  Speaker 1: So Apple is developing a tabletop robot, imaginatively called J595.
• 3:23
  Speaker 1: And it has AI and vision capabilities and that is set for a possible 2026 or 2027 launch.
• 3:31
  Speaker 1: It'll cost about $1,000 a piece.
• 3:33
  Speaker 1: Now we don't have a direct confirmation that CGNX, cognex is working on this J595, but the expertise in robotic vision systems, which is used for real-time guidance and inspection and so on, makes them a very, very likely supplier and, if confirmed, this could drive massive growth for Cognex as robotics scale.
• 3:57
  Speaker 1: Now this isn't the only partnership that these guys have.
• 4:04
  Speaker 1: This isn't a sort of one-time bet on Apple.
• 4:06
  Speaker 1: They also have partnerships with and excuse me, I'm going to get some water so I don't cough all over you, excuse me they have partnerships and contracts with amazon for warehouse automation, american eagle outfitters for well 90 of their vision solutions in those three distribution centers, schneider electric for factory automation, and they also serve over 90 of major ev battery manufacturers in Asia, tapping into that whole electric vehicle boom.
• 4:42
  Speaker 1: So these partnerships diversify revenue.
• 4:44
  Speaker 1: They boost growth potential, which, of course, is a good thing and they're essentially riding this automation megatrend.
• 4:52
  Speaker 1: So the global push for automation in e-commerce and everything else logistics, evs, semiconductors is a big tailwind for these guys.
• 5:01
  Speaker 1: Their tech improves efficiency and quality control and the robotics market is projected to grow monstrously, with companies like Tesla, meta, nvidia also heavily investing in the space.
• 5:13
  Speaker 1: So there is a massive opportunity here and these guys are kind of like a well shovel I was going to say eyes to the robots.
• 5:19
  Speaker 1: Essentially, they also have very good financials.
• 5:22
  Speaker 1: So they have a high gross margin about 70%, which is extraordinary.
• 5:28
  Speaker 1: No debt, significant cash reserves about $800 million here right now and this financial strength reduces the risk during, you know, whatever downturns that help some fund innovation or make acquisitions or whatever.
• 5:42
  Speaker 1: So it's kind of like I normally think Motley Fool is a bunch of Motley Fools, but when I saw this, I was actually this is actually interesting.
• 5:49
  Speaker 1: And then I also looked at the timing.
• 5:50
  Speaker 1: We get to the second.
• 5:51
  Speaker 1: I thought, hmm, it's actually a robotics play.
• 5:54
  Speaker 1: That isn't insane.
• 5:55
  Speaker 1: So the recent performance is well in Julyuly 2025 and let me just see here, we got that, got in here.
• 6:03
  Speaker 1: They reported earnings, um stock went up 20 and you might now be thinking but felix, you're too late.
• 6:10
  Speaker 1: Why are you showing me this so late?
• 6:12
  Speaker 1: No, it's actually the opposite.
• 6:14
  Speaker 1: You want to be a little bit late.
• 6:15
  Speaker 1: You always want to be a little bit late.
• 6:17
  Speaker 1: It's better to be a little late to your party than early right.
• 6:19
  Speaker 1: Otherwise it's just really boring.
• 6:21
  Speaker 1: So this is the little jump we got up here and I'll explain to you in a second why I think that's a good thing.
• 6:26
  Speaker 1: Analysts rate it as a moderate buy.
• 6:29
  Speaker 1: Price targets about 50 to 52, which would imply about a 20% upside.
• 6:33
  Speaker 1: Not quite there, you know.
• 6:34
  Speaker 1: 47,000% or something that Motley mentioned somewhere.
• 6:37
  Speaker 1: 47,000% or something that Motley mentioned somewhere.
• 6:39
  Speaker 1: But their leadership in just generally AI-powered vision systems.
• 6:43
  Speaker 1: It does support long-term growth.
• 6:45
  Speaker 1: They work with the biggest guys out there.
• 6:47
  Speaker 1: You know, if you work with those guys of that size, you're going to be doing something that's actually really really good.
• 6:53
  Speaker 1: Now, before we look at the entry point, there is some risk here.
• 6:56
  Speaker 1: There is something cyclical to stocks like this.
• 6:59
  Speaker 1: Cognex revenue can dip during economic slowsdowns, when companies cut spending, and you can see that on the stock chart here, because the stock has been rather cyclical right 2021 high, you know, sort of post-COVID and so on.
• 7:15
  Speaker 1: We're still down 54% Now.
• 7:18
  Speaker 1: The link to Apple's robotics system product is also unconfirmed, so don't bank on it fully.
• 7:23
  Speaker 1: And it does trade at a higher valuation than its peers.
• 7:27
  Speaker 1: But then it's also well.
• 7:29
  Speaker 1: I'm not a fan of cheap stocks, because cheap stocks are usually cheap for a reason.
• 7:32
  Speaker 1: So what's the advantage here?
• 7:35
  Speaker 1: Well, I think for ordinary you know, I'm ordinary retail investors it gives us exposure to the future of automation and robotics with strong ties to Apple, amazon and the EV giants financial resilience, market leadership.
• 7:49
  Speaker 1: So it's a solid kind of long-term hold with some significant upside potential.
• 7:54
  Speaker 1: And we don't see those often right.
• 7:56
  Speaker 1: Usually it's all potential and crazy risk or all really really boring and long-term.
• 8:05
  Speaker 1: Now let's have a look at the actual stock chart here, because the stock chart isn't just telling you what the stock price is.
• 8:10
  Speaker 1: It tells you where Wall Street's money is going right.
• 8:14
  Speaker 1: So there are two things I want to walk you through.
• 8:16
  Speaker 1: The first is you see that yellow 50-day moving average line here.
• 8:22
  Speaker 1: That's 50-day moving average line.
• 8:23
  Speaker 1: So Wall Street did spot that.
• 8:24
  Speaker 1: Wall Street also really bought heavily on the earnings.
• 8:43
  Speaker 1: But actually, like stocks that have gapped up, it gives us a big confirmation and then we consolidate up here, as we do now.
• 8:50
  Speaker 1: As I'm recording this, there seems to be a little gap up here pre-market, which is again positive.
• 8:55
  Speaker 1: And what does that do?
• 8:56
  Speaker 1: Well, stocks face resistance.
• 9:00
  Speaker 1: What is resistance?
• 9:02
  Speaker 1: When a stock goes sideways like it has from August last year to the beginning of this year, that sideways zone, those people are going to be in a lot of trouble, officially known as bag holders.
• 9:15
  Speaker 1: Why?
• 9:16
  Speaker 1: Because they were underwater throughout this whole period.
• 9:18
  Speaker 1: Down here.
• 9:19
  Speaker 1: Those people tend to sell when we reclaim that share price, as we just did.
• 9:25
  Speaker 1: But what we've now done is we've actually exceeded all those bag holders, which means the selling is pretty much done.
• 9:35
  Speaker 1: So it's actually a very, very good setup.
• 9:37
  Speaker 1: I'm not saying go and buy it, I'm not saying put all your money in it.
• 9:40
  Speaker 1: I'm saying quite the opposite.
• 9:41
  Speaker 1: I'm just saying this is how we spot good opportunities.
• 9:43
  Speaker 1: Then the second thing I would look at in trade vision down here, we have an indicator called MRSI and it's quite hard to find.
• 9:50
  Speaker 1: Tradingview doesn't have it.
• 9:52
  Speaker 1: I don't know why, but they don't.
• 9:55
  Speaker 1: It's basically telling you how does the stock compare to its peers, to its sector.
• 10:15
  Speaker 1: So that's what we do.
• 10:16
  Speaker 1: We compare it to everybody else in measuring and control equipment.
• 10:19
  Speaker 1: Actually, I know, and what can you see is well, it's gone up tremendously.
• 10:24
  Speaker 1: I mean it goes up tremendously.
• 10:25
  Speaker 1: It's telling you this is a winner in the sector.
• 10:28
  Speaker 1: We like to own winners in the sectors.
• 10:31
  Speaker 1: We do not like to own the losers in the sectors.
• 10:34
  Speaker 1: It's a very, very useful indicator I look at for every single thing I ever buy.
• 10:37
  Speaker 1: It's called MRSI.
• 10:39
  Speaker 1: I don't know where else you can find it.
• 10:40
  Speaker 1: To be honest with you, I've looked pretty extensively.
• 10:46
  Speaker 1: That's one of the things you wanted to build into Trade Vision.
• 10:47
  Speaker 1: So there's a free trial to Trade Vision down below if you want to check that out for all the things you're thinking about buying right now.
• 10:51
  Speaker 1: So me, I'm liking it.
• 10:54
  Speaker 1: I'm liking it.
• 10:55
  Speaker 1: And even if we just reclaim a little here I mean the analysts say 50, that's 16% up, but say we go back to August 2023, that's 37% up what if we went all the way back up to where we are?
• 11:08
  Speaker 1: Well, we could double our money.
• 11:13
  Speaker 1: Like any new business goes through this right, everyone gets excited about it and they're like, oh, but it's going to take longer than we thought.
• 11:18
  Speaker 1: But what actually happens is that when it does come, it is usually far bigger than expected.
• 11:28
  Speaker 1: So that's sort of a law of innovation People get really excited about it and then they get really disappointed because it takes longer than expected.
• 11:33
  Speaker 1: But then, when it does eventually come, the outcome is much, much larger, which is why it's quite often a good thing to be a little bit late in an innovation, as an investor at the very least.
• 11:44
  Speaker 1: So I thought this was one that was really helpful.
• 11:46
  Speaker 1: I thought this one was quite insightful as a good list of learning experience in many ways, and let me know what you make of it down below.
• 11:53
  Speaker 1: Let me know if you enjoyed this little video.
• 11:55
  Speaker 1: Cognix, cgnx, the ticker, get yourself the workbook and if you want to take your investment more seriously, then come and learn with me on Saturday.
• 12:05
  Speaker 1: That's a free, about a good hour and a half session.
• 12:09
  Speaker 1: Felixrentsorg slash training and I promise to shake you up, and that's really the goal there.
• 12:15
  Speaker 1: So see you on Saturday and I wish you all the best.