Precise Market Timer Calls 2025 the Bull's Final Run, Picks 3 Stocks

Charles Lemonides, founder of ValueWorks and manager of over $300 million in assets, believes 2025 marks the "first year of the last leg of the bull run." He warns that this final stage could end in an overheated, speculative market peak, similar to the period from 1996 to March 2000. He expects the next three to five years to be a bubbly period.

Lemonides' fund posted a 5.5% gain in 2024, underperforming the broader market. However, between 2021 and 2023, the fund achieved double-digit returns, even as the S&P 500 fell over 20% in 2022. He explains that in a normal market, low-valuation stocks trade at 11x earnings, while high-valuation stocks are at 16x. During market manias, expensive stocks can reach 33x earnings, while undervalued stocks may drop to just 7x. His strategy focuses on finding 25 stocks with price-to-earnings ratios between 7x and 10x, which he believes could be revalued to 30x.

Three Stock Picks

1. Rivian (RIVN)

Lemonides highlights Rivian as a compelling alternative to Tesla. Trading at $12–$13 per share with a market cap of $12–13 billion, Rivian is the second-largest independent EV manufacturer in the U.S. According to Kelley Blue Book, Rivian ranked second in U.S. EV sales in 2024, trailing only Tesla.

He believes Rivian offers a far superior risk-reward profile than Tesla, which has a market cap exceeding $1.1 trillion. If you're an established automaker with a solid balance sheet, invested in factories and equipment, and generating consistent sales, your market cap shouldn't be below $12 billion. But could Tesla's valuation get cut in half to $500 billion? Absolutely.

2. Hyster-Yale (HY)

Hyster-Yale, a forklift and aftermarket parts manufacturer, surged 145% in 2023 but fell 18% in 2024, with a modest 6% gain YTD. The company generates $5 billion in annual revenue and is set to benefit from electrification, supply chain expansion, and technological advancements—factors that could lead to a market revaluation.

Lemonides emphasizes that all three stocks share a key characteristic:"The assets they own are worth more than their current share prices. They are high-quality holdings with potential value appreciation, capable of transitioning from overlooked names to high-momentum favorites."

3. Cadeler (CADLR)

Cadeler, a $1.6 billion company, operates a fleet of vessels specializing in offshore wind turbine installation. With the continued expansion of offshore wind energy, Cadeler is well-positioned to benefit from this long-term growth trend.