DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
PLTR Fundamentals at the odds
by Alex King
I don't know if this is one of those times, but right now the PLTR chart and the fundamentals are at odds. The chart says that the stock may put in an A-B-C correction and make a new move higher; the fundamentals say that this company is hitting Peak Everything.
Ignore the social media hype about this thing. It's a hoary old enterprise software company serving big ugly government departments. Somehow, most likely through fabulous marketing, it is persuading said bureaucrats to let it make 28% unlevered pretax FCF margins whilst taking tax dollars to pay consultants to run around writing code. Companies like this usually max out at around 20% TTM UFCF and whilst it is always different this time, a new paradigm and AI and blah, I don't have enough faith that the fundamentals can hold up for long enough to support the stock moving higher fast enough for my tastes. So ... having sold down some chunks of PLTR already for gains in the past, I sold off another chunk on Feb 7.
Numbers, valuation, stock chart and ratings follow.
Get our 🎥 content, click here and subscribe.
Not a paying member? Subscribe for fundamental and technical analyses of 40+ stocks. Hit the button below now!
Enjoying our work? 🌟 Help us grow by sharing our newsletter with your social network. 🚀