Okay, so if you're concerned about the latest palantir news about more insiders telling stay with me, i got you covered on this channel. I want to give you real financial analysis without any agenda. I'm not gon na hype, i'm not gon na hate. I'm just gon na give you the new one's truth without trying to sell you anything, no courses, no products, no services, just the real financial news.

Without anything beyond that, the only thing i ask of you: don't click, nothing, don't smash, nothing don't buy. Nothing. Just give me your attention for the next five minutes. I'm gon na explain to you exactly what's going on with palantir and why you should not be worried about the recent news now.

As you know, in my videos, i don't like to hold you hostage. So the bottom line comes first, i'm not gon na drag you through the entire video. Just for you to find out what the conclusion is. So essentially, it is a tax driven play by alex carp.

He has no choice. He had to sell a few shares, but trust me, people are not understanding how much shares are being sold versus how much still is being held by him. It is really amusing to see people who claim to be financial experts and value investors completely missed this point and in this video i'm gon na set the record straight. If that was the only thing you needed, don't worry, palantir is still going strong.

This is meaningless, but if you want to see the technicalities and since i'm actually in llm in international attacks, so i've been doing this for years, i'm going to break apart exactly what's going on here. In fact, i'm gon na blow your mind, i'm gon na show you why alex carp is not even aware of these sales at all. It's completely automatic, i'm gon na show you in just a second stay with me. My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you there's one thing you need to know about me: i don't take from anybody, so yesterday's numbers came out and everybody was freaking out.

The palantir haters came out out of their holes, but don't worry in this video i'm about to put them right back wherever they crawl from i'm going to show you everything. So basically what happened yesterday, we got noticed that alex carp made another sale. So basically, we all got an email notifying us that alex carp sold 1.8 million shares and by the way, let's just use 2 million. Just for the sake of simplicity, the price was 20.7, but let's use 20 just for simplicity and the cost basis was 10 cents, which makes it extremely simple.

Now all the volunteer haters are about to get shellacked in this video check this out. So essentially, he just made 40 million dollars yesterday, because his cost base is 10 cents. He sold it at 20, so the dude just made 40 million dollars. Why is he selling what the hell alex right? You know this company is about to go ballistic.

Why are you selling at 20? Do you not believe in your own company? That looks bad, not exactly. Let me show you yesterday, this form was all over the internet. People were looking at it saying well look at how much he's selling he's only keeping six million shares of valentines 6.4 million. How can it be alex? What are you doing so? First of all, i don't blame people for not knowing how to read cap tables.

I mean they can be really complicated in companies like this, but alex carp does not only own 6.4 million shares of valentine. If you look at the actual numbers and by the way this is from schedule 14a, you can see that he has class b shares of 74 million. Now the only difference between class b and class, a some voting rights, but essentially financially those are identical. So he almost about 81 million shares of volunteer, so not six 81 million.

Okay, let's put this in proportion. First now we just saw that alex carp owns 81 million shares of valentine's straight up no option now. Here's the thing those shares are worth 1.6 billion dollars, but on paper and we can do paper, but it can be a little bit tricky. I mean he doesn't really have 1.6 billion dollars, it's all up in the air right now, but here's the thing.

Last year, in 2020, the dude made 1.1 million dollars in actual salary now with other expenses security, whatever he made about three million, but that was pretty much his own kind of net income for last year. Now that's a huge difference within 3 million and the 1.6 billion, which is kind of imaginary. At this point now here's the thing in august 2020, just before they went and directly listed the company, the company granted him this. Let me show you the numbers, because this is fascinating: they gave him 141 million shares of the company, but in options and with quarterly vesting, essentially every quarter a little bit of it gets vested, which means essentially, it gets activated now.

In addition, he got 39 million of rsu's restricted stock units. Essentially these are stock. I mean for all these purposes, so the tax bill on this was pretty massive. Now the 39 million, i think, was taxable right away, but that's not the point.

Let's focus on the 141 million in options. Now those options created a quarterly investing schedule. Every quarter a little bit of it actually gets vested every time. Now what happens when the new quarter comes in and the new options are vested the new batch and i'm not going to go into the technicalities, but if you can ascertain the price of the stock upon the vesting of the option? That means that the difference between your cost basis and the actual market price of the share is a taxable event in this case.

It's ten cents versus twenty dollars, so he has to pay tax a taxable event on twenty dollars per share for every vesting event, which is insane. Let me show you the numbers, but before i do, i hope you don't mind me actually clarifying this again. Those 141 million options has nothing to do nothing whatsoever with the 81 million shares he has been diamond handing since day, one nothing and actually, since he got granted this back in august 2020, he sold about 33 million shares worth about 447 million dollars a lot of Money, however, mind the numbers he only sold about twenty percent of the grant. Eighty percent of that options grant is still being handed by alex carr.

The only thing he sold was twenty percent. Why did he sell these twenty percent? Why did he sell for specifically four hundred and fifty million dollars? Let me show you because the numbers are going to blow you away in just a second. Now, let's go back to the vesting specifically this latest vesting, which we all got updated about, so he had 1.8 million shares vested. That means he has a taxable event on income of 40 million dollars, specifically just in this quarter, by getting no dollars in his pocket.

Nothing he didn't get an extra dollar, but he has a tax bill based on 40 million of actual income which he didn't receive. That creates an issue so whatever his tax bracket is and we're going to talk about it in a second, it's a lot of money, but we're just talking about one quarter and only 2 million out of 141 million. That's a lot not even talking about the 40 million in rsu's, which are also taxable it's a lot of tax liability that he has to pay. Now, let's multiply this by 70, because this 2 million are only part of the 141.

So we're talking about 70 times more that one billion dollars in tax liability, not one billion, that he has to pay, but the taxable event is one billion dollars of income. Now, since he lives in colorado, the effective tax rate would be about 41, giving it about or exactly 450 million dollars. That's the tax liability on this one billion options grant now. If that number sounds familiar, that's because that's exactly identical to the 447 million that he sold so far.

Now you see exactly what's going on, but wait. It gets better because trust me, based on what i know and i've seen a lot of these in my career. These are pre-scheduled now rule105b actually allows you to pre-schedule these sales in order to avoid any claims of insider selling. That's how you avoid getting accused of any insider trading, good or bad, so essentially, if he pre-scheduled these exactly according to the tax bill and he generated just enough income to pay the tax bill and he's still diamond handing the rest of that 141 million grant and Plus he has 81 million shares.

That tells you everything you need to know. He probably didn't even know that these shares were sold. It's automatic now, i'm not his attorney, i'm not his tax attorney. I don't know exactly what's going on.

This is just my opinion. I'm just hypothetizing based on what i know, so this might be inaccurate, might be wrong, might be the ramblings of a madman. You got ta, do your research and find it for yourself, allegedly blah blah blah, and that's boys and girls, how you handle fud and panic. Using numbers, facts and legislation with zero opinion, just the numbers prove that all these panic and haters and fudsters have no idea what they're talking about or maybe even worse, they know, and they still do it, which is actually even worse.

I don't know in any case huge shout out to our palantirs, the patriots and the channel members shout out to felix and friends. One of my favorite channels go subscribe to him. He has 20 thousand subscribers. Let's get him up.

There he's a huge fan of your fan and a close friend of mine shout out to you felix great videos, we'll see you guys in the next video.