J.D. DURKIN: Good morning, subscribers. Chris Versace and I are now back to tackle some of your latest questions. Chris, thank you for being here. Nice to have you.

CHRIS VERSACE: Oh, happy to be with you, J.D. . You know I love tackling these questions.

J.D. DURKIN: All right, we'll tackle them together. Well, you'll do the hard work. I'll just read them. All right, first up, some high profile analysts and traders have called ChargePoint a stock to avoid. Dun dun! Tell us why it caught your attention in the first place and why you remain a ChargePoint believer.

CHRIS VERSACE: I find that rather fascinating. I know that a lot of people have different investment perspectives, preferences, if you will. Here with AAP, when we use thematics, we use fundamentals. We also use technicals, but we also try to lean into a combination of pain point investing, but also areas where stimulus spending is poised to drive activity in that particular area. We've seen this with infrastructure spending. We've seen pain point spending really start to play out with cybersecurity as the threat vectors continue to grow in that area, driving spending as companies need to protect themselves.

And with ChargePoint, we continue to see a 1-2, if you will, of EV sales continuing, driving demand for EV charging stations, and we're also slowly starting to see the flow of funding to build out the national EV charging network. So while some people kind of have their own perspective, what we've done has actually served us rather well, I think. Notably, we could talk about United Rentals, Vulcan Materials. We can talk about Deere and other positions that have performed extremely well against these backdrops. And I think long-term, that will prove out for ChargePoint as well.

So we can understand the near-term noise. We can understand the shares trading off, given concerns about the recent run up in Treasury yields. But again, when we step back and look at the framework, the drivers remain in place. And we're going to continue to be patient with the shares of ChargePoint.

J.D. DURKIN: Chris, what are your latest thoughts on ChargePoint's path to profitability?

CHRIS VERSACE: This is a great question. And I would kind of flip it around a little bit first, J.D. . Because when we look at some of the other EV charging station companies, they've had to go out and raise capital. And if you look at their balance sheets versus their runway, they might have to do so again.

When we chose ChargePoint, we did so really for two particular reasons. One was it had the largest EV charging footprint around. And second, its balance sheet gave it a very, very long runway.

And we wrote in a note to members last week that even on a conservative basis, ChargePoint has at least six, if not seven quarters ahead of itself before it has to do any type of capital raise. And if we think of the landscape for that, that likely means that's going to be well after at least one, if not more than one Fed rate cut. So the borrowing costs should be far better than they might be today.

So those are some of the other thoughts on ChargePoint. But in terms of its break even point, that's still going to be a 2025 event so far tracking. And management recently reiterated that at a conference presentation.

J.D. DURKIN: Chris, what are your thoughts on the net asset value over at Trinity Capital?

CHRIS VERSACE: Now, that's kind of an interesting question, because for most companies, we tend to talk about EPS, EPS growth. But because of the portfolio nature at Trinity Capital, we tend to focus in on net asset value.

Now, there's some reasons why it could be moving higher, moving lower. It could be everything from the growth in the portfolio to a company perhaps buying their shares back. But the key for us is that as long as the current share price is below the net asset value, that's really where we want to be buying the shares. I say that because if you think about it, intrinsically, it simply means that we're buying the shares at a discount to what they are worth.

J.D. DURKIN: And the recent back and forth between the TSA and Clear Secure on requiring additional ID checks for some passengers, is this whole thing a concern, you think, for the ultimate long-term thesis? Are these headlines concerning, you think?

CHRIS VERSACE: So I'm going to tell you it's a bump in the road. And I can say this because I had actually had firsthand experience with this last week when I had to travel. I was flagged for an incremental round of ID checks. What did I do? I simply pulled out my driver's license, showed it to the Clear person, showed it to the TSA person, and I was still through in a very, very quick order.

So I think it's a bump in the road. I actually think that the more important thing to focus in on is going to be the TSA PreCheck offering that Clear will be bringing to market in the second half of the year. That, I think, will speed things even more so than they are today. That, to me, is the thing to watch.

J.D. DURKIN: I think everyone at the airport should just know who you are, sight unseen. That's it. You shouldn't have to show ID. I certainly know who you are.


J.D. DURKIN: All right, let's conclude here. Yeah.

CHRIS VERSACE: I was going to say, J.D. , if that's the case, some people may not even get in the airport.

J.D. DURKIN: Fair enough. All right, let's conclude here on a question on the one and only Warren Buffet. Chris, check this out. We have a member wondering if the recent stock sales from Buffett are a reason to get more cautious about markets in the months ahead. What say you?

CHRIS VERSACE: Oh, that's an interesting question. I would be very careful extrapolating a broad-based market thought based on what any one particular was doing with individual stock sales. That could be a little dicey, because, remember, we don't necessarily buy the market. We buy individual stocks that are poised to outperform over the medium and longer term.

But look. Warren Buffett is a very savvy investor. So of course, we have to factor what he says into our thinking. We may come to the same conclusion. We may not. In this case, with the market oversold, odds are we can get a little bit of a bounce here. I can't really say that I'd be doing a lot of selling just yet.

J.D. DURKIN: Chris, thank you as always.

CHRIS VERSACE: Thank you, J.D. .

J.D. DURKIN: Folks, that's going to do it for another round of member-submitted questions. Thank you for taking the time to watch. We'll see you again soon.