Good Monday everyone and welcome to the BCB Cyber Series that takes on the Tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.
Today we are back on track in the new month with Tech-Growth Companies. As always, we are digging for the cyber fuel we need. For all these growth stocks we are looking for top-line revenue growth of 20% or more!
Growth of Palantir
Before we dive too deep though, as always BCB Cyber loves the deep dive, we strongly advocate that you don’t act solely on anyone’s opinion, even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!
Jumping right in now, we do these quick deep dives so we can all get the info we need but also do so in a way that keeps us going in our day. To do this the BCB Cyber way we cover 3 quick pieces of important information. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our own BCB Cyber position.
This is TS2B, Tech Stock to Buy, hi-tech growth edition, and this week we are going to take on Palantir, the Denver, Colorado Software Infrastructure company forging new paths ahead when it comes to data integration all the while fulfilling a promise to keep America safe.
We’re gonna be honest, Palantir for us is all about the story right now. We are gonna wade in and keep a watchful eye.
Palantir has incredible promise and a first foot in the door with industry giants defense, aerospace, and health care. Where they go from here will definitely be a story worth following.
1 – STORY
Palantir presents us with an incredible story capable of redefining so much in the world of analytics and data. This company, while oft secretive, presents a unique opportunity in driving how data becomes the core tool and structure redefining our world.
One of the most unique aspects of Palantir is how it represents a new OS for the modern enterprise with the capability to bridge and drive industry in a number of ways.
This comes with a fantastic growth opportunity as we have seen not only a current increase of 52% year over year for revenue but also the overall projections have gone up for the year.
Most well known for its ties to the U.S. government and its promise to help keep America safe, this company continues to grow and develop these opportunities in a variety of capacities.
However, the story that provides its greatest opportunity lies in its ability to reach out across the industry and redefine what it means to do business. Palantir, with the standing global health crisis ongoing, has sought a massive impact on public health regarding the security of scientific platforms.
Palantir is joining the biggest names in data like Google, Microsoft, and Facebook when it comes to taking on global health challenges.
In terms of the disruptive nature of their technological prowess, the numbers speak for themselves. Speed, efficiency, and impact. In one case study highlighted by Palantir, within two weeks they assisted one company in saving $57 million in the case and provided the opportunity for an additional $1billion savings on an annualized basis.
For others, Palantir simply changes the way they do business!
2 – BY THE NUMBERS
BCB Cyber loves to follow five specific metrics: Sales/Revenue Growth (noted above), Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations.
This is where things do get rough for Palantir. While revenue is above our 20% mark, there are concerning signs.
We do see that the market recognizes the opportunities for Palantir and market cap, price to book, and price to sales are all inflated to date.
While Palantir is not yet profitable, we are still early on in its life as a public company and only time will tell. That is why we must be diligent and continue our homework on this amazing tech company.
While Palantir, does represent some risk, it has created for itself a solid base to stand on. Its cash position has been bolstered in 2020 and the debt levels are very manageable.
The most notable concern in the cash flow is that with the offering came a dilution event in value for shareholders but as the stock price has rebounded over double its IPO, things have started looking up.
3 – THE BCB CYBER TAKE
As of this morning, on 12.7.2020, our stake in Palantir sits 1.69% of our portfolio with a cost basis of $20.56. As the stock has gone from an IPO at around $10 and has tracked into the low $30 range, we’ve seen a lot of volatility in this company’s shares and many opportunities for trade. However, as we invest for the long term opportunity, our target is anything under $21. We’ll be building!
Remember, we are just like the masses, struggling to make ends meet and build our future. So, we start building and keep doing our homework. This is just what we need to start us on our journey toward cyberizing our lives.
BCB Cyber believes in the potential for this risky, tech innovator and loves the story. However, this is definitely a stock worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire! Remember we balance our perspective and cyberize our wealth over a longer term of 5 years or more. We will definitely be looking to add to our position, with the right portfolio proportions of between 2 and 3 percent and at the right price.
Remember, as always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper into Establishing the Baseline on BCB Cyber.com!