Now Where Were We? Palantir And More
Deep Value, Long-Term Horizon, Growth At A Reasonable Price, Special Situations
Seeking Alpha Analyst Since 2008
Geopolitical analyst, speaker, writer. Former professor, retired Brigadier General, Special Ops and Intelligence. I invest for myself and the world's best clients. You are welcome to join us.
Published or reviewed Wall Street Journal, Strategic Review, American Thinker, Forbes, others. I write for my own pleasure and your feedback on SA, my SA blog and on SA Marketplace site, The Investor's Edge. Author of the investment book "Bringing Home the Gold." I also write geopolitical commentary at "On Point -- National and Global Issues and Intrigues." You can see these essays gratis at https://josephlshaefer.substack.com/.
- Edited from a post just sent to Investor's Edge members.
- It isn't just Palantir's successful Demo Day that is pushing the stock higher.
- That is why I am now willing to place a GTC trailing stop on some shares.
- There is more on this subject and others. Read on!
Jan. 27, 2021 3:07 PM ET
- PALANTIR, CONTINUED...
While I am delighted to see all of you who took my suggestion about PLTR to heart, and while I still believe this is a truly great company a la Microsoft or other companies that have found their niche and then occupied it wall to wall, it is time to place protective trailing stops on a good chunk of our position.
My concern in my previous article is being realized. The day traders playing with matches have researched all stocks that have a 7% or 10% short interest and believe, as a result of their "success" with GameStop, they can force the shorts to cover their positions by getting every amateur day trader to buy shares. Worse, their buying is not simply cool-headed analysis that the shorts can be forced to capitulate. This has become a messianic quest, with the full fervor of a religious war, to show those fat cats on Wall Street that we young pups can take them on and beat them. It has become about competition, not profit. As I said before, this will not end well.
Because of this, I have elected to place tight trailing stops for most clients on at least some part of their positions. For the Growth & Value Portfolio, I am hereby placing an order to SELL 250 PLTR at a trailing stop of $2.
News flash: Schwab and TD just restricted trading in GME and AMC. This could take some of the wind out of the sails of other "let's show the shorts on Wall Street who is tougher" gang buying of other firms with high short interest -- like our Netgear NTGR, also up nicely today.
Of course, just like with PLTR, Netgear is a going concern with some excellent news that affected the stock this week. BlackRock filed a 13G two days ago showing it has been purchasing and now owns 16% of NTGR. I have moved our stop up to $43. I doubt BlackRock is ready to pull the trigger to take NTGR private just yet, though its likely-now board representation will allow them to see company-confidential information that mat sway them to do so down the road.
I am again stopping now so you can see my suggestions for your due diligence on the above. I really wanted, last night and just now, to talk more about the Hotels, Resorts and Cruise Lines industry! But let me get this to you now and maybe do the latter for a broader swath of the SA community on the public side. There is no urgency in this area, but I believe it is time to start building positions -- hence my addition of a new buy a good bit lower on CCL! (See portfolio.)
PLTR is currently at $42.10, making our stop a sale at $40.10.
Disclosure: I am/we are long PLTR NTGR.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Unless you are a client of Stanford Wealth Management, I do not know your personal financial situation. Therefore, I offer my opinions above for your due diligence and not as advice to buy or sell specific securities.
Analyst's Disclosure: I am/we are long PLTR NTGR.
Unless you are a client of Stanford Wealth Management, I do not know your personal financial situation. Therefore, I offer my opinions above for your due diligence and not as advice to buy or sell specific securities.
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