The Final Phase of This Bull Market Will Be Massive | Charles Lemonides

Lemonides sees Lyft and Instacart as potential value opportunities relative to Uber and DoorDash, respectively, at roughly one-quarter of their competitors’ valuations; he cites their growth and company-specific strengths, while arguing that driver, shopper, and grocery costs limit winner-take-all scale advantages. He also expects Lyft and Instacart shares could double or triple over two to five years, though he does not know when investor fatigue will end and says the gains may not arrive by December.

Lemonides says the bull market could last another two to five years, noting that bull markets often deliver their strongest returns in their final years. He characterizes current industrial and emerging-market outperformance as still narrowly AI-linked, and expects data-center growth to remain strong while the final phase could last six months to three years and favor exciting companies over low-multiple names.

Lemonides sees offshore activity as a multi-year opportunity: he expects increased offshore production to continue for another five to ten years and says tight supply and demand could support substantial cash flows for Tidewater, whose fleet would cost about twice its current price to rebuild. His approach is to build exposure as offshore assets fall to roughly 20%–30% of replacement cost, rather than trying to call the bottom, and to be willing to wait for a turn.

Lemonides says his firm reduced energy holdings after pandemic-era gains but sees a favorable story in the remaining names following their retreat, given high energy prices. He also identifies domestic independent E&Ps as attractive, citing CORD at an $8 billion valuation and roughly three to four times expected cash flow, and Unit’s expected $75 million in cash flow over the next year alongside $100 million in net cash.