2 Breakout Stocks to Buy Immediately VIEW IN BROWSER Tom Yeung here with your Sunday Digest. In 2015, I visited the observatory at One World Trade Center – the newly opened viewing deck on the Western Hemisphere’s tallest building. When I got up to the 100th floor, people on one end of the deck began smiling… murmuring… pulling out their phones and craning their necks. Then others joined in. Slowly at first… and then faster as news spread across the room. Arnold Schwarzenegger had also decided to show up that day. Now, economic theory would have said the crowd’s slow reaction was impossible. In a perfect world, information flows instantaneously. Everyone in the room should have known the moment the first person caught a glimpse. But we all know things don’t work that way. Not everyone knows everything at once. In fact, the person who left the observatory five seconds earlier may never have known The Terminator star had shown up. I tell you this because information on Wall Street flows the same way. Corporate insiders and perfectly timed Polymarket betters always seem to be the first to act. Then comes early birds (industry watchers and Wall Street analysts). Next there’s the early crowd… the mass market… and then finally the latecomers and bag-holders. All this is why market momentum exists. Buying builds up as information spreads. That’s how you end up with breakout stocks, like the ones Senior Analyst Luke Lango identifies. These are companies that have seen some initial interest from people… and are ready to surge as the crowd joins in. He illustrates this with Apple Inc. (AAPL), where a Stage 1 consolidation in 2015-2017 (during peak iPhone fears) gave way to a Stage 2 advancement as service growth drew in early buyers… followed by a Stage 3 breakout once everyone else caught on Investors who held through the initial +83% rise would have seen +300% returns by the end of 2020. 
It’s a pattern that happens repeatedly. And once you have a system that identifies when these breakouts happen… well… that’s when you stop buying stocks that go nowhere and start buying stocks that seem to rise immediately. Today, I’d like to share two stocks that demonstrate the power of Luke’s Breakout System – companies with hidden catalysts that could be entering the early stages of a major move. If you’d like to see exactly how Luke identifies these opportunities, check out Luke’s latest presentation on his Breakout System. In a brand-new video, where he explains how his Nexus Breakout Screener helps pinpoint stocks poised to move higher. So, let’s get started… | Recommended Link | | | | “I recently visited Mar-a-Lago… And now I’m prepared to put my reputation on the line. One investment I just uncovered could be my biggest winner of all… It involves President Trump, Elon Musk, trillions of dollars, China… And a MAJOR upgrade to the artificial intelligence revolution. If you buy just one stock in 2026, I urge you to make it this one.” – Louis Navellier Click here to see the name and ticker symbol of the company at the center of it all. |  | | The Biotech Bet Last November, I showed you Greenwich LifeSciences Inc. (GLSI) here after the company’s key person, CEO Snehal Patel, began buying up stock. The biotech firm had passed several critical clinical trial hurdles and was selling at a deep discount for owning a proven clinical-stage therapy. Shares have since tripled in price. (Note: I have since moved GLSI to a “sell” based on risk vs. price.) Now, Luke’s Nexus Breakout Screener has helped me identify a new biotech pick. And it’s a firm that’s entering the most catalyst-dense period in its operating history: Larimar Therapeutics Inc. (LRMR). The $550 million market-cap company is working on a drug for a rare disease called Friedreich's ataxia (FA), an inherited neurogenerative disorder that (unlike Parkinson’s or ALS) begins affecting younger people between ages 5 and 15. As many as 26,000 people worldwide are thought to have it. Currently, there is only one approved therapy for FA on the market – a drug owned by Biogen Inc. (BIIB) that charges $370,000 yearly per patient. It now generates over $500 million in annual sales, despite not being approved for children under 16. Larimar is hoping to change that. Its drug is seeking approval for people of all ages, and it more directly tackles the root cause of FA than Biogen’s Skyclarys. Early results released last September suggest Larimar’s version is even more effective than the existing market therapy. If approved, there’s a reasonable chance that it eventually becomes a global billion-dollar blockbuster. Most importantly for investors, Larimar is now entering the most catalyst-dense period in its history. In February, the firm’s FA candidate achieved Breakthrough Therapy designation, adding to a list of other accelerated regulatory programs. It also completed a capital raise. This “stacking” strategy means Larimar is guaranteed to report its clinical trial results in June 2026 and kickstart an expedited approval process soon after. As a result, the company is now on a relatively clear track towards a potential approval decision by H1 2027 – long before it can run out of cash. Of course, the opportunity comes with risk. Like many small biotech firms, Larimar’s future hinges on the success of a single drug candidate; investors remain cautious after earlier safety concerns and the relatively small size of its clinical trials. The current trial is also small, given the rarity of FA. In other words, this remains a high-risk, high-reward setup where shares could surge 3X if upcoming data is positive, as I expect, or fall sharply if last September’s results were somehow incorrect. However, the risks are not enough of a concern for Larimar’s largest financial backers either, who collectively bought almost $26 million of the Philadelphia-area company’s stock in the past week during its late February secondary offering. Given the company’s adequate cash and unusually clear June 2026 catalyst, it’s no wonder LRMR scores a stunning 4 out of 5 in Luke’s Nexus Breakout Screener. Expect an inflection point in the next three months, and a roughly 80% chance of good news (vs. market-priced 30% chance). Shares are likely worth closer to $15 than its current $5 price. The AI-Resistant Play Last week in Fry’s Investment Report (subscription required), I warned that streaming firm Netflix Inc. (NFLX) is surprisingly exposed to the same AI “SaaSpocalypse” that has crushed many software-as-a-service (SaaS) firms. And that brings me to today’s second recommendation from Luke’s Nexus Breakout Screener: Gray Media Inc (GTN). The 80-year-old firm is America’s third-largest TV station operator, with 180 stations across 113 markets. It is the largest group owner and operator of NBC-affiliated stations and scores a perfect 5 out of 5 points in Luke’s Nexus Breakout Screener this week. So, how does a company in a “dying” cord-cutting market have such a perfect breakout score under its belt? Let me explain by turning back to Netflix. In short, Netflix’s moat comes from making engaging, high-quality video content that users happily pay $17.99 a month to access. These are beautifully crafted shows like The Crown and Stranger Things… with the occasional flop thrown in. But what happens when AI-generated video becomes good enough to compete? That will quickly destroy Netflix’s moat. Suddenly, the streaming giant will be forced to contend with talented individuals using AI to write movie screenplays, design live-action characters, draft detailed storyboards, and eventually create feature-length films… right in their bedroom. “But AI video is slop,” some might counter. “And what about all the errors we see in today’s models?” Well, that’s exactly what everyone said about AI-generated software too, before GPT-5 and Claude 4.6 became able to write working code. I expect Netflix to eventually face the same existential crises that have pummeled software firms. Now, here’s the thing: Netflix’s bosses aren’t stupid. They know that digital content creation (besides sports and perhaps live news) will soon face AI competition. In fact, Netflix is aggressively integrating generative AI in its own content and pursuing multimillion-dollar sports deals. They also realize their path to survival will hinge on distribution. No matter how beautiful an AI-generated movie becomes, no one will see it until it’s uploaded to a visible space like YouTube, Netflix, or cable TV. That’s why I believe Netflix’s bosses were so keen on overpaying for Warner Bros. Discovery Inc. (WBD). Not only would they receive film and TV studios (plus valuable intellectual property), but the deal would have also included cable and TV channels like CNN, Discovery, TNT Sports, and Cartoon Network, as well as a movie distribution network. It’s also probably why shares of Gray Media have risen 25% in the past month. Gray operates one of the few AI-resistant corners of the media world, and early-bird investors are beginning to notice. Luke’s Breakout Screener system certainly did. So, even if Netflix doesn’t end up trying to own TV stations outright (which it still might), there are plenty of other investors who will soon realize what the streaming company’s bosses already know. The Catalyst-Driven Investor The real takeaway of this week’s update isn’t just these two tickers. It’s the process of finding them. We know that news spreads… slowly at first… and then faster until the whole room is craning its neck. That’s true for spotting Arnold Schwarzenegger, and it’s also true for finding the next big investment. Those who can see the trend early will be the ones to benefit. That’s why I want to once again urge you to watch Luke’s latest free presentation on trading “breakout” stocks. He lays out the Stage 2 framework behind these ideas, and explains how you can use his Nexus Breakout Screener to get volatility to work with you in identifying perfect moments to jump in. Check it out here. And I’ll see you back at the Digest next Sunday. Until next week, Thomas Yeung
Market Analyst, InvestorPlace | 
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