Kim Bolton’s Top Picks for Oct. 6, 2026

Kim Bolton, President and Portfolio Manager, Black Swan Dexteritas

Focus: Technology Stocks

Top Picks: Tower Semiconductor, Palantir, Constellation Energy

MARKET OUTLOOK:

September lived up to its reputation as the weakest month of the year for stocks. Your BSD team managed to navigate this weakness by taking profit on our short equity index hedge and putting cash to work in our artificial intelligence (AI) infrastructure stocks. The Nasdaq composite has set new all-time highs which provides some tailwinds going into the mid-October earnings season. Robust earnings and guidance have been one of the primary drivers for this year’s AI infrastructure stock rally.

The broad market indices have managed positive 2026 returns year-todate, but your BSD team still believes now is the time for risk management to be vigilant, for several reasons:

• Geopolitical tensions
• Inflation fears
• Rising interest rates
• Weak stock market depth and breadth
• U.S. midterm election outcomes
• High earnings bar for individual stocks

While the market searches for the next fundamental catalyst, technical signal, and changes in capital flows, your BSD team will continue to trim those securities that are achieving their respective intrinsic values, and buy those technology growth stocks that exhibit longer, more lucrative investment runways. The hedging overlay continues to be an important tool to protect your capital in bearish markets, and an important tool to be ‘dialed down’ in bullish markets.

Your BSD Team is proud to be your investment ‘eyes and ears’ in the technology arena.

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TOP PICKS:

Tower Semiconductor (TSEM NASDAQ)

• Tower Semiconductor Ltd. is an Israeli independent foundry that manufactures specialty analog integrated circuits for sectors including mobile, automotive, industrial, medical, and aerospace.
• Reported record Q2 2026 revenue and profitability results while issuing record Q3 guidance
• Added to the PHLX Semiconductor Sector Index
• Third quarter (Q3) 2026 guidance: Revenue projected at US$520 million (around five per cent)
• Next earnings release date: Estimated Nov. 9, 2026

Financial Ratios:

• Working capital / Current ratio: 4.91
• Price-to-Earnings (P/E) Ratio: approximately 92.5 to 95.2 times
• Debt-to-Equity (D/E): 0.04 (minimal debt leverage)
• Return on Equity (ROE): 9.5 per cent
• Analysis: Tower Semiconductor demonstrates a very solid liquidity profile and negligible debt risks alongside robust operational growth. However, the stock currently trades at a premium valuation with a high trailing P/E ratio.
• 30 Days performance: 9.57 per cent
• 100 Days performance: -5.76 per cent
• Buy one-third of a position here at approximately US$240.86 add at approximately US$228.82 and approximately US$216.77

Palantir (PLTR NASDAQ)

• Palantir Technologies Inc. is an American software company specializing in big data analytics and artificial intelligence, providing data integration and operational decision-making platforms to government, defense, and commercial clients.
• For second quarter (Q2) 2026, Palantir reported revenue of US$1.935 billion (up 93 per cent year-over-year), driven by U.S. commercial revenue growth of 149 per cent year-over-year (YoY) to US$764 million. GAAP net income reached US$1.062 billion, with an adjusted EPS of US$0.41, beating the consensus estimate of US$0.33. Adjusted free cash flow for the quarter was US$1.22 billion. Analysts highlighted the company as meeting the required criteria to potentially become a Dow 30 stock
• The company’s next earnings release is expected on Nov. 2, 2026.

Financial Ratios:

• Working Capital Ratio (Current Ratio): 7.23
• Price-to-Earnings (P/E) Ratio: 140.98
• Debt-to-Equity (D/E) Ratio: 0.02
• Return on Equity (ROE): 38.10 per cent
• Analysis: Palantir demonstrates strong financial stability with excellent liquidity (Current/Quick ratios over seven) and minimal debt obligations (D/E of 0.02). The high return of equity (ROE) indicates efficient capital utilization, though its high P/E ratio reflects significant growth expectations priced into the stock.
• 30 Days performance: 10.83 per cent
• 100 Days performance: 63.14 per cent
• Buy one-third of a position here at approximately US$188.75 add at approximately US$179.31 and approximately US$169.88

Constellation Energy (CEG NASDAQ)

• Constellation Energy Corporation is an American energy company headquartered in Baltimore, Maryland, and the largest producer of clean, carbon-free energy in the United States. It operates a diverse power generation fleet—including nuclear, hydro, wind, solar, and natural gas facilities—and provides electricity, natural gas, and energy management services to residential, commercial, and industrial customers.
• Reported Q2 2026 financial results on August 6, 2026 with revenue and EPS easily beating consensus. Signed a 20-year power purchase agreement with Amazon to add 190 megawatts of nuclear capacity at Calvert Cliffs
• Next Earnings Release Date: Estimated for Nov. 6, 2026

Financial Ratios:

• Working Capital Ratio: N/A (Strong liquidity supported by approximately US$3.7B cash reserves)
• Price-to-Earnings (P/E) Ratio: 25.62
• Debt-to-Equity (D/E): 76.4 per cent
• Return on Equity (ROE TTM): approximately22.9 per cent
• Analysis: Constellation Energy demonstrates strong profitability and solid liquidity, supported by highly predictable contracted nuclear cash flows and expanding growth catalysts from data center power agreements, though it trades at a premium valuation relative to industry averages.
• 30 Days performance: -13.90 per cent
• 100 Days performance: -0.71 per cent
• Buy one-third of a position here at approximately US$257.49 add at approximately US$244.62 and approximately US$231.74

PAST PICKS: OCT. 8, 2025

Vertiv (VRT NYSE)

Then: US$167.38

Now: US$251.78

Return: 50%

Total Return: 51%

Oklo (OKLO NYSE)

Then: US$134.77

Now: US$38.68

Return: -71%

Total Return: -71%

Arista Networks (ANET NYSE)

Then: US$157.36

Now: US$209.13

Return: 33%

Total Return: 33%

Total Return Average: 4%