So Chicken Genius just put out this video and he's talking about his two positions regardless of what the market does. He just talks about selling everything. The video is literally titled market Crash Soon and he's saying that he's only leaving Palantir and Ethereum in his portfolio. Let's watch it and then let's react to it right after the clip.

I have two main positions if and Palantir I Saw Ethereum Why liquidity down I Will buy that when I See the trend changing for Palantir, it looks like he's making a durable bottom for a long time versus the markets. Since my goal for Palantir is a huge run like Tesla stock back in 2020 and the fundamentals look great. So our whole regardless. So obviously his analysis is more on the technical side.

Let's talk a little bit about the fundamentals. Why I Think he's doing what he's doing. He talked about the reliable bottom which is kind of the name of a bar at the bad part of town. But let's talk about the fundamentals.

Why I Think he's staying with Palantir despite literally saying everything is going to burn and selling all his portfolio. So this is volunteer. Let's go to the advanced look. Over the past three months, it's been flat.

but I think what's more interesting if you go to the five-year view. you got a plenty right here. which is when they DPO the direct public offering. At nine and a half dollars, they're currently at 7.75 So number one, you're getting Palantir below the DPO price.

So now you're getting a better deal than the people who bought it when it initially went public. So that's number one. That is a benefit to me. Number Two, which I want you to check out is these numbers right here while the retail investors were selling.

This is what went on with the institutional investors. As you can see right here we're in stock MVP Right here. So from Q3 2020 where we had 176 million shares held by institutional investors, we're now at Q4 2022 which is the latest numbers which we have here where it's 677. so we 5X the amount of institutional shares being held 5x obviously and it also has to account with dilution.

You know the number of shares expanding Etc et cetera. But in general you can see the trend. The trend is your friend and in this case, the trend is showing you that Institutional Investment Investment Institutional Investments are going up. and at the very least, you know that institutional investors are not bailing on the stock like some other retail investors are now.

I Do want to show you another thing right here, which is this evaluation tool we have on stock MVP called the SEF Now the step basically allows you to plug in some assumptions and see how much this stock actually is worth. So right here we have a conservative and an optimistic view. I'm going to make it bigger a little bit so you guys can see it better. So on the conservative side we're going to stay with the current Revenue growth rate of 23.5 Optimistically let's give it a 30 growth rate which I think can be a lot higher.

but let's give it a 30 net profit income five percent optimistic. Let's do 10 free cash flow margin Let's keep the a conservative current 9.6 level and do optimistic 15 nothing Boombastic P at sale let's do 15 versus 30 a price to FCF Let's keep it at you know between 90 and 100 where they are right now and let's give it a 12 discount rate which is a bit more conservative we're calculating and then we're getting this number right here. So this is what we get based on the set valuation tool. with fairly conservative valuation.

You can see that the bottom side of this stock is about five percent right? I Don't know if this is Gospel or not I Don't know if it is, but based on this model, based on these numbers which you can see in the screen right now, these numbers. Based on these numbers, Palantir has a bottom about five ten percent. How low can it Probably cannot go lower A lot lower than this? Based on these numbers? of course. short-term medium term it can.

but long term. This indicates that bottom that he was talking about. But if you look at the upside, the upside is absolutely insane with these conservative assumptions. And they are conservative.

for Palantir, we're looking for five years between 63 and 131 on the stock for the next five years. So to me, as an investor who likes to look at long term, it seems that the risk, the downside, risk on the stock doesn't stack up to the upside opportunities. And for me, that's why it makes sense. But when he's talking about a reliable bottom, he's talking from an technical analysis perspective.

I'm talking about it from a perspective of a guy who likes to look at fundamentals. Now if you take a look at numbers here, look: Revenue growth of this company December 2020 Not that long ago. we had it one billion dollars of Revenue right now at 1.9 billion. So we doubled revenues In what two years, a cost of Revenue went from 350 to 400 million.

So basically 10 increase in cost of Revenue While we doubled the revenue, How about operating expenses? Operating expenses went from 1.9 to 1.6 billion. So while this company doubled the revenue over the past two years, they've shrunk their operating expenses and or the cost of Revenue went up by 10. And you can look at this thing right here. We have it also on stock of VP called the MVP cards.

these are mine. You can see that the revenue growth is at mid-20s The Sgna is pretty much flat. Six percent growth is nothing. Operating expenses are pretty much flat.

You can see that they have a ton of liabilities, but also way more assets. So 800 million liabilities is a lot. But when you have 3.5 billion dollars of assets, that's very impressive. Especially when you're sitting on 2.6 billion dollars of cash, which is 10 times more than you did.

So look, they paid four million dollars in interest expenses on this year over 1.9 billion of Revenue I Mean this company still has a long ways to go. but I understand why Chicken Genius is doing what it is I Think the setup is interesting. If you guys by the way, want to check out stock MVP use the code last 50 Las sd50 to get it 50 off. in about two weeks.

the price goes up to around thirty dollars. It's not for us, it's because we're launching an app and the App Store is going to basically cause the price to spike in about two weeks. So if you want to try it out, you can try it out right now for a week for free. And then you know, use the code last 50 to get it 50 off.

Thank you so much! I'll see you next video.