This Energy Stock Could Be Ready to Move Higher

Good morning. It’s September 25th, and today we’ll cover the DOJ’s actions against Visa, SAP, and Carahsoft Technology; Relay Payments dominance of the U.S. diesel payments market; and an energy stock that could be poised to move higher.

Previous Close 📈

Stocks closed at record highs on Tuesday, with the S&P 500 gaining 0.25% and the Dow adding 0.20%, while the Nasdaq rose 0.56%. Despite fears of a slowing economy following last week’s Fed rate cut, all three are on track for a positive September.

Futures

Futures are slipping today. S&P 500 futures are down 0.2%, Nasdaq-100 futures have fallen 0.3%, and Dow futures are down 0.1%. Investors remain cautious as they await key economic reports, including new home sales and weekly jobless claims, while navigating concerns over the broader economic outlook amid Fed rate cuts.

Crisis Opportunity

This Energy Stock Could Be Ready to Move Higher

With billions of dollars flowing into efforts to cap abandoned wells leaking methane, one energy stock is uniquely positioned to capitalize on this growing market.

The company is already on the ground, profiting from government-backed initiatives to fix this critical issue.

As demand for its services increases, the stock could see significant upward momentum.

This is a rare chance to invest in a solution that addresses both environmental concerns and energy needs.

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What to Watch

Cintas Corporation (NASDAQ: CTAS) and Huize Holding Limited (NASDAQ: HUIZ) will report their quarterly earnings before the market opens. After the closing bell, Micron Technology (NASDAQ: MU), Jefferies Financial Group (NYSE: JEF), and Investcorp Credit Management BDC (NASDAQ: ICMB) will also announce their earnings.

On the economic front, New Home Sales for August will be released at 10:00 a.m. Eastern. Additionally, Federal Reserve Governor Adriana Kugler will speak at 4:00 p.m. Eastern, providing further insights into monetary policy.

Payments

Visa Faces DOJ Antitrust Lawsuit Over Debit Network Monopoly

The U.S. Department of Justice (DOJ) filed an antitrust lawsuit against Visa on Tuesday, accusing the company of using its dominant position in the debit card processing market to stifle competition.

Visa controls over 60% of the U.S. debit card transactions, and the DOJ claims the company leveraged this dominance by imposing restrictive contracts on merchants, forcing them to use its network or face higher fees.

According to the DOJ, Visa’s actions led to billions in additional fees for American consumers and businesses, while slowing innovation in the payments sector. Visa allegedly maintained its monopoly in both the broader debit network services market and a more specialized card-not-present market, which includes online and fintech transactions.

U.S. Attorney General Merrick Garland argued that Visa's practices discouraged rivals, including fintech firms like CashApp, from competing in the market. Visa’s general counsel, Julie Rottenberg, countered that the lawsuit ignored Visa’s many competitors in the fast-growing debit space.

The DOJ is seeking to block Visa from using the disputed contracts, bundling credit services with debit network services, and imposing pricing incentives. Visa’s stock fell over 5% following the news.

Payments

Relay Payments Secures Major Diesel Market Share Following Love’s Partnership

Relay Payments has secured a significant position in the U.S. diesel payment market, now covering 75% of sales after a deal with Love’s Travel Stops.

The partnership allows Relay’s customers to use its payment system for secure transactions on fuel, scales, and other services at Love’s locations. CEO Ryan Droege reports a 300% increase in fuel payment processing year-over-year, despite the decline in diesel prices.

Relay’s payment system, launched in 2019, initially targeted warehouse payments but has since expanded into fuel and lumper payments. Droege emphasized that the company's total payment volume (TPV) has grown to $2 billion annually, doubling from the previous year.

In addition to Love’s, Relay Payments is accepted at other major retailers like Pilot and Maverik, though TravelCenters of America is not yet part of its network. Droege noted that many fleets now exclusively use Relay for the convenience of a single platform, and the company continues to focus on fraud prevention through its phone app-based payment system.

Technology

SAP and Carahsoft Under DOJ Scrutiny for Alleged Decade-Long Overcharging Scheme

The U.S. Department of Justice is investigating SAP SE and IT solutions provider Carahsoft Technology for allegedly conspiring to overcharge government agencies, including the U.S. military, over the past decade, according to a report.

The investigation, which has been ongoing since at least 2022, focuses on whether the companies engaged in illegal price-fixing on sales to federal entities.

Federal agents searched Carahsoft’s Washington-area offices, although the company claims the investigation relates to a former business partner. SAP, Carahsoft, and the DOJ have yet to comment on the matter.

This is not SAP’s first encounter with the DOJ. Earlier this year, the German software giant agreed to a $222 million settlement over bribery allegations in seven countries. The current investigation could further complicate SAP’s legal challenges.

Technology

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Eightco Holdings [OCTO] - Last Close: $2.49

Eightco Holdings’ stock is surging by 66% in premarket trading.

The company announced a revenue forecast of $100 million and released its 2025 strategic plan.

It highlighted significant achievements in 2024, including the elimination of $5.4 million in convertible notes, an increase in shareholder equity by $23 million, and a improvement in gross profit margin to 22% from 12%.

Eightco also reduced SG&A expenses by 23%, helping regain NASDAQ compliance. Moving forward, the company aims to focus on its subsidiary Forever 8 Fund LLC, which provides inventory solutions for e-commerce sellers.

With plans to seek additional non-dilutive senior debt financing, Eightco expects to achieve $100 million in revenue for 2025, with positive EBITDA at the public company level.

Motorsport Games [MSGM] - Last Close: $1.10

Motorsport Games is rallying 26% so far in premarket trade after the company announced the release of the September update for "Le Mans Ultimate."

This update brings new features, including a co-op game mode, which allows players to race with friends and complete endurance races together, and a save feature that lets players pause their race and resume it later.

Additionally, the update includes the "2024 Pack 2" DLC featuring two new Hypercars—the A424 LMDh and the Isotta Fraschini Tipo 6 LMH—as well as the Circuit of the Americas track.

This update also adds all 2024 LMP2 and Hypercar liveries for players. The company announced that early access pricing will expire on October 1, 2024, with the base game price increasing after that date.

Affimed N.V. [AFMD] - Last Close: $3.39

Affimed shares are up 13% in premarket trading, fueled by promising developments in its clinical trials for non-small cell lung cancer (NSCLC), Hodgkin lymphoma (HL), and acute myeloid leukemia (AML).

The company has reported significant achievements, including durable responses exceeding seven months in NSCLC, a 50% complete response rate (CRR) in HL, and a 50% complete response or complete response with incomplete blood count recovery (CR/CRi) in relapsed/refractory AML.

Affimed's new CEO, Shawn Leland, emphasized the company’s focus on advancing its innate cell engager programs and securing necessary funding.

Energy

Discover the Untapped Opportunity in the $435 Billion Energy Crisis

Millions of abandoned wells are leaking harmful methane into the environment, and the federal government is spending billions to address this growing issue.

A key player is already on the ground, turning this challenge into a profitable venture.

With the increasing pressure to fix these environmental hazards, this company is positioned to benefit from a massive influx of government funding.

This could be your chance to get in early on a unique opportunity in the energy sector.

Don’t miss out on this critical moment for potential growth.

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Everything Else

• UniCredit's move on Commerzbank has raised concerns over Germany's financial pride.

• The Chinese Yuan hits a 16-month high, boosted by central bank stimulus efforts.

• China saw a 12.7% drop in foreign smartphone sales in August but the total market grew.

• South Africa is in advanced talks to purchase Embraer C-390 military aircraft.

• Zuckerberg's wealth is soaring as he joins Musk and Bezos in the $200-billion club.

• Berkshire Hathaway continues to pare down its Bank of America stake.

• Ex-Alameda CEO Caroline Ellison was sentenced to two years and forfeited billions in FTX fraud case.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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