Palantir Is Next-Gen Data Growth Story, Not A Defense Contractor

Palantir Technologies Inc. (NASDAQ: PLTR) is being mislabeled as a fancy defense contractor by the Bears, instead, it is a growth story for the next bull run that is starting to gain critical mass in selling software solutions for the data-driven world, after more than a decade of development. We are Bullish on the name; own it in our portfolio and the stock was part of the recent weekly list of top ideas. The long-term thesis boils down to few key points, the company is a leader and one of…

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Stocks On My Screen For Week Starting October 5th, 2020

Every week, our model comes up with 40 stocks, 20 positive and 20 negatives, to watch for next week’s trading. The model is based on a mix of fundamental and quantitative factors, built on our proprietary database of detailed earnings model on more than 1250 U.S. listed companies. The historical data for these earnings models is sourced from SEC filings. Performance of last week’s model portfolio for the week was, Net: 0.4% Longs: 4.7% Shorts:  -4.3% Assuming 5% is dedicated to each position, resulting in 0% net exposure and no…

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Li Auto IPO: NIO, Tesla And Nikola Need Not Worry, For Now.

There is a new player in the electric vehicle space – Li Auto Inc.; new only in respect to the publicly listed U.S. stocks. Li Auto Inc. is planning to come out with an IPO soon. Since we have followed the space for a while and love reading SEC filings, here are some of our preliminary thoughts about the company and the upcoming IPO. It’s a hybrid is one of the first things you will hear from Bears on the space while talking about Li Auto and its first model…

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360 Finance, Not Just Because Ant Financial Is Going Public

We are usually reluctant to participate in IPOs and upcoming Ant Financial issue, 33% owned by Alibaba (Nasdaq: BABA), will be no different. The issue did nudge us to take a closer look at the online lending space in China again, including 360 Finance, Inc. (Nasdaq: QFIN), which is one of the three major next-generation online lending platforms in the country. We are impressed with what we saw. Even though investors continue to ignore 360 Finance, the business has transitioned towards more data & technology-centric, away from credit risk management.…

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Hyliion Doesn’t Have To Be Tesla Or Nikola To Succeed

If you believe the product is as important as personality, Hyliion Holdings Corp. (NYSE: SHLL) is one name that should be high on your list of frontier technology stocks, including Tesla (Nasdaq: TSLA) and Nikola (Nasdaq: NKLA). Hyliion is working to provide what may be a perfect transition for Class 8 trucks to move from fossil fuels to zero-emission technologies, be it electric or hydrogen fuel cells, making good current of current infrastructure, including driver readiness, service capabilities of truck companies, electrical grids, etc. For investors, options to invest in…

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Albertsons IPO Looks Good

Albertsons Companies Inc. (NYSE: ACI), one of the largest grocer, is going public this week, offering 66 million secondary shares at an expected price of $18-$20, valuing the company around $9 billion and an enterprise value of $19.0 billion. We believe this is a good price for what is shaping up to be a great company. You have the right to be cautious Now taking a look at a grocery store business when things that are working in the stock market are – bankrupt car rentals, airlines near bankruptcy, SPAC’s…

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ZoomInfo Is Worth Zooming In

ZoomInfo (NYSE: ZI) went public earlier this month and the stock has more than doubled since then, like many other recent IPOs. The market excitement for IPOs has not completely distinguished between long-term promise offered by the businesses, valuation, management quality, or the industry dynamics. That’s why making a simple Long or Short argument isn’t easy with the stocks hitting new highs but digging deeper into quality businesses is warranted, especially ahead of the market cooling off. ZoomInfo looks like one such quality execution story with favorable macro tailwinds. Good…

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Lemonade Inc. IPO Will Be Hot, So Be Patient

We were looking through recent IPOs, some of those covered in our previous note, but a more exciting one is the one coming soon – Lemonade Inc. (NYSE: LMND). Even though the company offers renters and homeowner insurance, if you are expecting insurance like business valuation, you will be in for a surprise. Case in point insurance comparison sites SelectQuote (Nasdaq: SLQT) and EverQuote (Nasdaq: EVER) Other than profitability almost everything that excites growth-oriented investors is going for this ‘insurtech’ play, companies combining insurance and technology. Extremely high sales growth,…

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Favorite Long And Short Ideas From Recent IPO Season

There has been a barrage of IPOs over the last few months. Having added some of those names to our database of proprietary earnings model, we thought of sharing our initial thoughts on our favorite names for potential Long and Short. Vroom (Nasdaq: VRM), the online car-buying platform that is being compared to Carvana (Nasdaq: CVNA) has been received well, but the hype around the name is a bit over-exaggerated right now. We have written a detailed note on the company. We believe Vroom has executed well, driving growth in the…

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How High Can Vroom Stock Go, If Compared To Carvana

Vroom Inc (Nasdaq: VRM) will start to trade today and given how eagerly some of institutional investors were waiting for the IPO, it won’t be surprising to see the company coming out flying as the trading opens. Yes, everything next generation is driving excitement on the Street, case in point Nikola Corp (NKLA), and Vroom will be no exception. Most Sell-side researchers going to point out similarities between Vroom and Carvana Inc (NYSE: CVNA), another high flyer e-commerce car retailing play that had a phenomenal run over last 2-3 years,…

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