 A Message From Golden Portfolio Right now, you can buy a dollar's worth of gold for about 36 cents. That sounds impossible. Here's how it's real. The major gold miners are throwing off record cash flow — even after gold's recent pullback. The four largest have never had this much free cash on hand. Ever. At today's gold price, they're running margins as high as 75% — the most profitable they have ever been. Which hands them a problem. Go here to see the problem — and why the majors are about to go on a shopping spree for the ages. When a major gold miner makes record profits, it does one of two things: hand the cash back to shareholders, or buy the best junior mining assets to secure future production. And here's the piece the market is missing: The best junior assets are still priced as if gold were stuck at $1,800 an ounce — not north of $4,000, where it trades today. So the majors are staring at their own future production shrinking, sitting on record cash, looking at top-tier junior assets trading at a fraction of what that gold is worth at today's price. They don't have a choice. They buy — or their output keeps shrinking until they're out of business. That's how you buy a dollar of gold for 36 cents: you own the junior before the major is forced to pay up for it. The gap between what these assets are worth and what they trade for has a name. I call it the Golden Anomaly. It only appears early in a gold bull market, and it closes fast — usually the moment the majors start writing cheques. So you can pay full price after the gap closes… Or buy the dollar for 36 cents while the Anomaly still exists. My name is Garrett Goggin, CFA, CMT, and it's why Porter Stansberry recently called me: "THE most knowledgeable gold investor in the world." Go here to see my Golden Anomaly portfolio — and the three names next on the majors' shopping list. Best, Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio
Further Reading from MarketBeat Media
Could Velo3D Be the Next Defense Buyout Target?By Jeffrey Neal Johnson. Posted: 10/7/2026. 
Key Points
- Velo3D shares fell about 18% after an abrupt, unexplained CFO resignation, compressing its market capitalization to near $300 million despite strong operating results.
- The company posted a 52% year-over-year revenue jump, raised fiscal 2026 guidance to $65 million to $75 million, and held about $91.1 million in cash at the end of Q2.
- Velo3D's expanding Livermore facility, 118 patents, and entrenched defense and aerospace contracts make it an attractive de-risked acquisition target for larger industry players.
- Special Report: This Single Fund Owns Every Major AI Stock and Pays Weekly
The abrupt resignation of a CFO rarely inspires market confidence. When the departure lacks a detailed explanation and occurs just weeks before a quarterly earnings report, institutional investors tend to sell first and ask questions later. This scenario recently played out at Velo3D (NASDAQ: VELO), sending the stock down about 18% and reducing its market capitalization to nearly $300 million.
The visceral market reaction paints a picture of a business in severe distress, but the localized panic masks an underlying physical reality. Velo3D recently posted a 52% year-over-year revenue increase and expanded its production footprint. Rather than a volatile growth stock facing operational failure, the data suggest Velo3D is becoming a de-risked acquisition target for defense primes seeking to secure mission-critical supply chains. Flying Blind: Leadership Vacancies Mask Real GrowthWhen James Suva departed Velo3D in late September, the board installed an external consultant on a $32,500-per-month contract rather than promoting an internal finance executive. In the financial sector, bypassing standard succession planning can signal triage and clearing the decks ahead of restructuring, strategic alternatives, or a potential sale. The leadership shake-up compounded lingering negative sentiment from a short-seller attack earlier in 2026 that alleged a deteriorating relationship with key aerospace sector clients. That event caused a 50% decline in market capitalization, leaving Velo3D highly sensitive to any internal turbulence. Although the combined optics of Suva's departure and the short report have weighed on shares, the operational metrics tell a sharply different story. In August, Velo3D reported a 52% year-over-year jump in quarterly revenue. Management raised fiscal 2026 revenue guidance to $65 million to $75 million and projected gross margins above 30% in the second half of the year. The balance sheet held approximately $91.1 million in cash and cash equivalents at the end of the second quarter. Expanding margins, accelerating top-line growth, and a sizable cash buffer directly challenge the distressed valuation currently assigned to Velo3D. The market is discounting the company based on leadership uncertainty and historical cash-burn rates while overlooking the tangible asset expansion taking place on the factory floor. Trading at a price-to-book multiple of approximately 6.03, the equity reflects significant speculative anxiety despite the underlying balance-sheet strength. No Eject Button: The Sticky Nature of Additive IPA hardware manufacturer's intrinsic value lies in its intellectual property and physical infrastructure. Top aerospace and defense contractors rely on proprietary systems to manufacture complex, heat-resistant geometries that traditional casting and forging methods cannot produce. Once a contractor qualifies a specific manufacturing platform for a part, replacing that technology becomes a regulatory and logistical nightmare. Velo3D recently brought its 289,000-square-foot Forge 1 facility in Livermore, California, online, effectively tripling its production capacity. This aggressive capital expenditure creates a substantial physical asset base that could serve as a valuation backstop for any prospective acquirer evaluating a buyout. Demand from the defense sector remains highly resilient and continues to broaden. In early October, Velo3D announced that Mears Machine Corporation deployed a sixth Sapphire XC system dedicated exclusively to copper-nickel alloys. Copper-nickel resists seawater corrosion and maintains its thermal properties across extreme temperature ranges, making it a foundational material for shipbuilding, seawater cooling, and offshore heat exchangers. Mears Machine Corporation's deployment expands the domestic defense manufacturing base and validates the continued reliance on Velo3D's technology stack. Traditional foundries can struggle to cast these alloys efficiently, giving Velo3D a distinct manufacturing advantage. Previous partnerships underscore this structural entrenchment. A $32.6 million Department of Defense contract and a prior $8 million intellectual property licensing agreement with SpaceX (NASDAQ: SPCX) demonstrate that government and commercial space operators view Velo3D's technology as essential. With 118 active global patents, the proprietary processes embedded in these supply chains represent a deep economic moat. Hostile Takeover or Rescue Flight for Velo3D?At current valuations, the strategic math for a prospective acquirer becomes highly compelling. Velo3D's enterprise value is between $300 million and $470 million, depending on recent debt-to-equity conversions and capital-structure adjustments. For an aerospace contractor that generates tens of billions of dollars in annual revenue, allowing a critical supplier like Velo3D to enter a disorganized liquidation would create an unacceptable operational risk. The capital required to buy Velo3D outright would be a fraction of the cost of prolonged disruption to engine production lines or naval shipbuilding schedules. By acquiring Velo3D, a defense giant could secure its supply chain, internalize manufacturing margins, and absorb an extensive patent portfolio for pennies on the dollar. Vertical integration is standard in aerospace, and buying a distressed supplier is often cheaper than funding internal research and development from scratch. Institutional investors recognize this dynamic. The bullish thesis no longer relies entirely on Velo3D achieving long-term standalone profitability as a public company. Instead, the opportunity centers on a distressed-asset acquisition. The immediate financial incentive for a captive customer to step in and absorb the operations creates a distinct pricing floor. Short interest levels reflect heavy speculative downside positioning, but these bearish bets overlook the strategic value of Velo3D's installed user base. Final Approach: Calculating the Next Move for Velo3DInvestors evaluating the industrial sector may find the current dislocation intriguing. While leadership volatility creates short-term turbulence, the underlying technology's structural importance could dictate the long-term outcome. As Velo3D's enterprise value compresses toward the value of its installed base and patent portfolio, the likelihood of a strategic buyout increases. This dynamic could create an opportunity for sudden, lucrative premiums over current distressed market prices. Those analyzing defense supply chains may want to consider the broader implications of Velo3D's manufacturing footprint before the wider market recognizes its underlying value. Cautious investors may prefer to wait for stabilization in the executive suite, but Velo3D's infrastructure assets remain a focal point for industry consolidation. . |
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