Hey, this is Tom and while everyone and their mom are buying Nvidia stock right now, all the Talking Heads on TV are trying to convince you that this is a 600 stock and that's the future Here in this video I Want to show you a stock that has massive AI artificial intelligence exposure. It has massive amounts of growth, lots of potential, great fundamentals, and it's not being hyped at all. In fact, it's flat on the year now before we get through it. I Have to tell you a story.

Back in 1988, my grandpa decided to take me to the beach for the first time. Now mind you that most of the people in my neighborhood didn't have cars and my grandpa was included I mean only the rich guys had cars back in the day in USSR So we took the bus and the ride over there was nice but they're right back. Oh that was a doozy. Imagine a Russian Soviet bus no AC Windows all closed.

everybody is sweaty, smelly, disgusting, vile torture chamber on Wheels and basically everybody was pressed against each other because it's so crowded. everybody was shirtless like oh my goodness I have post trauma of this thing Now The reason I'm talking to you about this horrific bus incident is that trading in video right now is basically that bus ride. You're buying into one of the most crowded, sweaty, smelly trades which everybody is trying to get on and that's not always the right thing to do. For example, if you want to buy a car and you're looking to shop a convertible, buying it in the middle of winter would be the best time if you try to book a holiday.

a summer holiday, buying in Winter would be the best time a ski resort Holiday By in the summer, a sweater by in the summer or towards the end of the season where nobody's buying anymore. Timing the purchase makes a a whole lot of difference on the price you will pay for anything and stocks are included currently. Nvidia is super hyped. It's a terrific company, but it has so much hype, it's so crowded.

your opportunity to get a good deal and make money off it is very, very limited. Now in this video I'll show you something different, a different stock that has lots of potential to be that. Hidden Gem Now to do that I have my trusted friend right here. my little white board.

Now on this little white board I Have listed Seven seven seven elements of evaluating a growth stock. Now the reason I'm showing you this and the reason I'm emphasizing the number seven is because I want you to understand that the purpose of this video is not just to give you that stock and get you to buy it or sell it or ignore it. The reason I'm using this stock is to educate you I Want to show you the process of how to evaluate growth stocks for yourself and today's stock. while it will have value on its own Merit It's going to serve also a secondary purpose which is just as important which is to teach you the process so you can do it yourself.

My goal isn't to keep you hooked on my channel. My goal is to teach you the process, teach you the system so you can do it for yourself. I Don't want to give you the fish I Want to teach you how to go out and get your own fish. Now, as you can see here on this little whiteboard, I've listed: Seven Elements Quality of CEO We don't want Bozos as our CEO Balance equality.

We don't want too much debt. We don't want too much liabilities versus assets growth percentage. We want to look at forward growth percentage not what they did last year margin percentage. what's the gross margin? Next, we have deal quality that we're going to do with the DCF with the discounted cash flow evaluation model.

We're going to make sure we're getting a good deal on the stock. The fact is that it's not enough for the company to be good. We have to make sure we're getting a good deal because you can always overpay. Then we're going to check out the short interest.

How much short activity this company has? Because if there's a lot of shorts, this company is under pressure. We want to ideally get under 10 short interest. And of course, we're going to take a look at potential. basically how much upside we have in this stock.

Now we're going to say goodbye to this little white board because before we get started I want to explain something to you this system. I'm going to show you today that long-term dollar cost average valuation techniques. Now this technique is going to be about growth stocks, but when I make my video about value and in stocks, the system is going to be a little bit different. This system is what we teach on our Patreon community.

We have a 4 000 member Patron Community a Discord server. Lots of content for you to learn the system. We teach you a method, We teach you process, We teach you a system. We don't feed you by alerts and cell alerts.

We have those sometimes. But the main idea is to educate you, go to Patreon.com Forward slash: Tom Nash Join us now I Only charge five bucks per month for my patreon. It's literally the price of a cup of coffee. and I know everybody out there is charging between 15 to 25 to 35 dollars just for the lowest tier the basic tier of the Patreon page.

So ask me why do I charge so little? Well, the reason is because I'm not trying to get rich off of this Patreon. I have plenty I have enough. Believe me I'm comfortable. The reason is I do want it to be a sustainable business, but I'm not trying to squeeze the limit and get every single dollar out of you.

That's why I don't sell thousand dollar courses. That's why I Don't price my patreon I Want to be able to be affordable so that everybody can get me I Want to be the way to democratize this information for you I don't want this to be just for rich people I want everybody to be able to afford it And on top of that, I give a 30-day money-back guarantee to anyone who joins my Patreon even if you tell me a day 29 hey Tom I just joined your patreon just to screw with you, Get all this information off of you and I'm quitting just to take advantage of your refund policy and abuse it. Even you that person. You'll get a refund because I don't mind giving a refund even to people who abuse the system because I believe that 90 of you are legit and honest and that's part of the cost of doing business.

Now we're going to get this out of the way. and let's start with our company here. So look: I'm old school I'm going to use a whiteboard and I'm going to use this little trusty notebook I Know all everybody is now on the iPad I know I know this is where I'm at now this company I'm going to talk to you about today. Reminds me a lot of Palantir in a good way.

Hold on. And we are currently in a cycle where AI is very, very hyped. but there's a reason for that. The reason isn't because this is some sort of an Nft or some sort of a cryptocurrency craze is because AI technology will be the driver for the next 10 to 15 years of the US economy in fact of the global economy and people understand that now you can of course sit this one out and say I'm not playing the AI game at all and that's going to be fine.

You're going to save yourself a world of pain that you won't have to deal with because you're not going to buy that's basically being free riding on the AI hype. I Get it. But the idea here is to take a little bit of risk. What I preach in my patreon in the community in my Discord Community is we want to be safe.

We want to be conservative, but we want to take a little bit of risk so we can taste some of this run as well some of this trend as well. So the idea is not to Hype into Nvidia The idea is not to sit on the sideline and ignore this and say well, this is a bubble The idea is to find an AI based company which has potential, has fundamentals and it's not being fairly priced by the market and I believe that's exactly what I'm going to do in this video. Now let's talk about this company here. They have a terrific CEO check.

They have a great balance sheet. check. They have absolutely insane growth numbers current and forward. They have a 74 gross margin check.

Their valuation is reasonable. They're not the cheapest company, but it's a reasonable valuation for a very, very leading AI based company. Their short exposure is very low under five percent and their potential is absolutely insane. I Believe that this company has the potential to be a top 20 S P 500 company within the next 10 years You have to remember.

Look at the: S P 500 in 2003. Look at it Now All of the companies. You're going to find that list in 2003, not on there a whole bunch of new companies. This one might be there in 10 to 15 years on the top.

Now let's move on. let's talk about this company. The name is Crowdstrike. The ticker is crwd Crowdstrike now I Want to tell you about Crowdstrike, which is a company I've talked about on my paging Community A while ago two years ago I said I Like the stock at 180, it jumped all the way to 280.

People made a lot of money. People also stayed in it long term I Don't know if you stayed if you got out. It doesn't matter because now it's back. I Talked about it when it was 180.

Now it's 154 dollars, it's even lower, It's even better, and it's gotten fundamentally more sound and more attractive in those two years. And now it's actually even cheaper. So let me tell you about the company. So number One, let's talk about the CEO.

Now the name of the CEO is George Quartz now George Quartz is a guy who worked for Pricewaterhousecoopers Now of course it's a competitor of Deloitte where I used to work. but he did work for a big four company in their cyber security Division and he founded the company by the name of Found Stone Now found Stone actually was a terrific company that got a lot of traction and eventually he sold his company to McAfee the Anti-virus Company. So I'm sorry to call them that. That's just how I remember it.

So McAfee bought found some from him for 70 million dollars and made him the CTO the chief technology officer of McAfee. So the guy is legit. He founded Crowdstrike 10 years ago. He's still the CEO I Love seeing successful, established, proven founder CEOs Still doing the job so that's number one.

The CEO is by no definition is a Bozo. He's a superstar. So Crowdstrike has been using artificial artificial delish. Crosstalk has been using artificial intelligence for over a decade.

In fact, they're one of the Pioneers in that sense. They remind me a lot of talent here. A pilot here has been doing AI work for 15 years. It's just now it's gotten trendy.

Same thing with Crowdstrike Crowdstrike. actually pioneered a whole new system of managing endpoint cyber security. instead of anti-viruses they're doing it with AI and they became one of the leaders in the category along with Expel and the Red Canary their top three competitor in this category. They're terrific company.

If you look at their fundamentals, they're absolutely Off The Wall Their institutional shareholding is above 70, which means that institutional investors are buying heavily into this company. Their short interest, which is one of the elements I talked about is three percent, which is extremely low. There's no pressure from short-term this company. Now their revenue growth, which is another ticket we have to check here.

Revenue Growth is phenomenal. They grow revenues by 55 last year and they grew revenues by 360 percent over the past three years. Currently sitting at 2.2 billion dollars. Reminds you of Palantir, right? Very similar numbers to Palantir, although the growth here is actually much faster than Palantir at 55 growth.

As far as the balance sheet quality look, they're sitting at 2.5 billion dollars of cash versus 800 million of debt. The ratio of cash to that is phenomenal. Their asset solubility is 5 to 3.5 Terrific numbers You can see the guy who's managing this company work for PWC Because the balance sheet is clean, this company is absolutely insane. Also, you should know that over the past 90 days and there was nine times more Insider buying than Insider selling for this company stock.

So insiders for the past three months are buying like crazy 10 times more. Sorry, nine times more than sales. Now, as far as the quality of the deal here, this is a company that's trading at 15 times. price to sales that ain't cheap.

It's literally the same price to sales of Palantir. It's not a cheap stock, but on the year it's down four percent. Over the past 12 months, the stock is down four percent. It had a nice run recently.

it's up 30 for the past few months, but it's still minus four percent for the past 12 months. And that's an attractive thing, especially at 154 when you know that this isn't much, much more improved position in a lower interest environment When we'll talk about that in a second. Now, if you compare their price to sales at 15 to Palantir, they're in the same level. but if you look at Tesla that's trading at price to sales of eight.

this is a very expensive company. If you look at Nvidia, it's trading at 23 price to sales. so it's not as expensive. so it's priced somewhere between Tesla and Nvidia which means it's not cheap, but it's definitely not over priced to the point where it becomes unattractive.

Now, the other thing you have to understand here: this company is still not profitable. They're still losing about 200 million dollars per year, which means at the current cash level, they have about 12 years of Runway without deluding you without taking on more debt, which is a good thing. They have plenty of time, especially when the expectation is that they will be profitable in 2024.. Now look, it's up 30 of the past six months true.

But on the year it's down. And don't forget that during the pandemic highs, this stock was at 280. Will it come back to 280? I Don't know. Probably not this year.

Probably not next year. But here's what I Want to show you I Ran at BCF on this company now I ran this DCF using stock MVP which is the company I've built along with my business partner P We built stock MVP just for these purposes to evaluate stocks like this within five minutes. Stock: Dash Mvp.com You have a seven day free trial to check it out. Enjoy it, learn it, see if you like it, and even if you get it, and for some reason you're not happy with it, let me know.

I'll get you a refund if you've tried it for eight or nine days. Don't worry about it. Stock Mvp.com We have a DCF discount cash evaluation calculator built in in there with lots of other tools just to evaluate the company. Now, the assumptions I use for this DCF are very simple: 35 ebitda margin at 30 growth rate which is substantially lower in fact half of the current growth rate and a 10 discount rate This is a 230 dollar stock based on this this year.

Now it's going to take a few years to grow into this, but at 154 I know comfortably that this has plenty of room to run from 154 to 230. Not gonna say it's going to be there tomorrow or in the year. Maybe it's going to take a year, or two. Maybe three.

I Don't know, but this thing has massive potential. Even if it does have that, you can still make money here. So the idea here is to show you that this company has potential. It has growth.

It has great management, no short exposure, terrific balance sheet, great margins. Everything about this company checks out. Now it's not yet profitable and it's not the cheapest. But compared to the other AI plays, it's absolutely undervalued.

especially since they're the leader in endpoint security using Ai and they were one of the pioneers of AI based endpoint security. They're definitely legitimate. now. A few things before I Let you go.

Number one: You want to learn the system. This is just one part of it. We can talk about evaluating value stocks, dividend stocks ETFs everything. Join the paper.

It's five dollars per month. It's the price of a cup of coffee. Try it out for a month. Don't like it.

I'll refund you. The link is below Patreon.com Forward slash com Nash Number two: Want to be able to do this for yourself within five minutes? It's simple: you don't need any Finance Background: just go get stock MVP Stock Dash Mvp.com Get on it. Plug in your DCF It's absolutely automated. You can run a DCF on any company within 30 seconds and then change the numbers within another 30 seconds and look at the sensitivity analysis of every different assumption you change.

Guess the committee for a whole week. Try it out, see if you like it. If you don't we'll refund You don't worry about it now. As always, a huge thanks for you for staying with me I Really appreciate it.

Over the past 10 days we had massive influx of Patreon members. The fact is that you have put your money on the table, you've put your trust in me and that means a lot to me. I Promise to do my best for you and take it super seriously. This is an extremely important and humbling experience for me.

I Just want to say thank you for the bottom of my heart for everybody who joined. Thank you so much I'll see in the next video.