“What’s the best stock tip you ever got?”

Our VP of Research, Aaron Gentzler, asked me this question yesterday.

I knew my answer immediately.

It was Rocket Lab (RKLB) two years ago.

The tip came from a good friend of mine.

He works in an industry that gives him visibility into many of the large corporations in his territory.

And you know what?

He recently told me about another stock that’s setting up in a similar fashion.

And the best part… It’s 50% off its highs.

Rocket Lab – Why It Was The Best Tip Ever

Jamie is the name of the friend who urged me to buy Rocket Lab in 2024.

The stock was bouncing between $5 and $7 at the time.

Jamie works in industrial sales overseeing a large territory in the US.

He spends his days sourcing inventory (screws, bolts, nuts, tools, etc.) for companies across the U.S.

Note: These purchases are typically small enough that NDAs aren't commonplace.

At the time, we were grabbing lunch when he said something that stopped me cold:

“I don’t have time for any other customers right now. Rocket Lab is taking everything.”

He explained they were expanding fast. Buying out his entire inventory. Scaling from 50 to 500 employees at a single facility.

This wasn’t some vague prediction or news article.

This was real, measurable, boots-on-the-ground demand.

Jamie had already bought shares of Rocket Lab (RKLB), knowing exactly what he was seeing.

At Rocket Lab’s current stock price of $72, the stock has more than 10x’d since.

Not bad for a blue-collar salesman with minimal investing experience.

And he was nice enough to share his insights.

Wall Street legend Peter Lynch calls this the “amateur’s edge.”

While professionals spend all day staring at spreadsheets, earnings reports, and Bloomberg terminals…

Amateur investors notice what's actually happening around them.

For example:

• Your teenager won't stop talking about a new app.

• Every restaurant is suddenly using the same payment system.

• Costco is packed every weekend.

• Everyone at work starts using ChatGPT.

These observations can lead you to great companies long before Wall Street fully appreciates them.

And now… Jamie’s “amateur edge” is pointing him to a new stock.

Introducing – Forgent Power Solutions (FPS)

According to Jamie, he's seeing the exact same pattern he saw with Rocket Lab two years ago.

One customer is suddenly dominating his business.

Forgent Power Solutions manufactures electrical infrastructure used throughout the power grid.

As utilities, hyperscalers, and data center developers race to build new capacity, demand for the company's products has surged.

In fact, the biggest challenge is building enough capacity to fulfill all of the orders.

In its most recent quarter, bookings surged 308% year over year, revenue more than doubled, and backlog climbed to a record $1.98 billion.

For every $1 of revenue the company recognized, it booked more than $2 of new orders.

Management believes demand will remain strong for years, driven by AI data centers, grid modernization, and broader electrification trends.

To meet this demand, the company is spending aggressively – which explains why Jamie suddenly found one customer consuming so much of his inventory.

Of course, whether Jamie ends up being right again remains to be seen.

FPS certainly isn't cheap – even after the stock’s 50% pullback.

Plus, the company has taken on debt and other obligations to fund its expansion, which means there's less room for error if demand slows unexpectedly.

But after Jamie identified Rocket Lab when it was a $5 stock, I've learned not to ignore what people on the front lines are seeing.

I’ll be buying Forgent Power Solutions (FPS) in my long-term portfolio – likely before the company reports earnings on September 2nd.

Follow along with me if the setup is right for you.

No guarantees it will be the next Rocket Lab.

But the demand is there, the AI buildout isn’t stopping, and my boots-on-the-ground intel is saying “Buy.”

That’s a stock tip worth paying attention to.