I had written earlier that my 2021 Stock of The Year would come from our 5 long term holding stocks: TSLA, PLTR, GBTC, JMIA, MSTR. Up until the past two days it was a toss-up between the first two on the list, but toss-up it is no more: Nuclear weapons agency breached amid massive cyber onslaught Massive cyberattack grows beyond US, heightening fears Banks on Alert After Sweep Finds No Evidence of Major Hack Cyberhack looks like act of war Cyber security and cyberterrorism have in a matter of hours (although it may have been going on for years) become "the next big thing." Our 2021 Stock of The Year is PLTR, an up and coming challenger to dinosaur-laden government software contractors of the past 50 years. Their window of opportunity has just opened and with it, a window of investment opportunity. It may not be another Tesla, but a year ago we didn't know Tesla was going to be another Tesla. It has enough of the same earmarks for us to go with it for 2021. It is in the right place at the right time, let's join them. PLTR Overview (From S-1) "Our welfare and security depend on effective software. "In times of stability, the right software helps our most critical institutions serve their markets and the public. In times of crisis, effective software can be essential to an organization’s survival. "Our software platforms are used by the United States and its allies around the world. Many of the world’s most vital institutions, from defense and intelligence agencies to companies in the healthcare, energy, and manufacturing sectors, rely on the software platforms that we have built. "The challenges that we face, and the crises that we have and will continue to confront, expose the systemic weaknesses of the institutions on which we depend. Our industrial infrastructure and manufacturing supply chains were conceived of and constructed in a different century. Government agencies have faltered in fulfilling their mandates and serving the public. Some institutions will struggle to survive. Others will collapse. "Our customers come to us because their technological infrastructure has failed them. The enterprise software industry’s focus on custom software tools and applications is misplaced. Those approaches often only work briefly, if at all. The problems and needs of an organization often change before the software can even be deployed. "Our partners require something more. They need generalizable platforms for modeling the world and making decisions. And that is what we have built. "Our government work is central to defense and intelligence operations in the United States and its allies abroad. On the commercial front, we work with some of the world’s most durable and important companies across industries, including in the energy, transportation, financial services, and healthcare sectors. And our market opportunity is significant. We estimate our total addressable market to be approximately $119 billion across the commercial and government sectors." COVID Covid is yet another example of how Palantir has a huge addressable market with its big data analytics software services. A little over a year ago Covid was nothing, harmlessly floating in a petrie dish in China. Today, it is a major source of new business: Palantir's New "Driving Thrust": Predicting Coronavirus Outbreaks Palantir Providing Coronavirus Monitoring To The CDC Palantir Closes Up 21% On Report of $44 million FDA Contract PLTR: The Next Five Years As with the Tesla write-up a year ago, I do not need to reinvent the wheel in describing what PLTR does as there are a plethora of YouTube creators who have done it for me (not literally for me, I do not know them). Here is one of the better ones (16 minutes): Palantir Stock Predictions & Long Term Price Targets Technicals Since its IPO on Sep 30th there just haven't been enough price bars to do much pattern recognition analysis, save one, Fibonacci extensions. If you have been paying attention, they have been spot on with TSLA this year. Since there is a spike up followed by a retracement, there is enough of a pattern to glean some upside targets. I still prefer to have more data points, but for now we will make do with what the post-IPO trading has given us: Longer-Term PLTR Options With TSLA last December we bought one-year, out-of-the money $84 (split-adjusted) calls at a price of $7.22 (split-adjusted), and which have subsequently run to an intrinsic value of $615 (+8,418%). Granted that we have been trading other short-term term TSLA calls all along, to mostly success with a few speed bumps thrown in, but in the end we would have probably been better off just buying and holding that one call (or 10, as at least one subscriber did). I don't expect lightening to strike twice this coming year, but just in case it does our initial long term PLTR option is only going out 8 months, allowing us to rollover into another 5-6 month call around mid-year. We will continue to trade PLTR options short-term (PRO Service) and Intermediate Term (Premium Service). As in the case of TSLA, holding shares of PLTR is just as valid a way to participate in the expected rise in share price over the coming year. 2021 Stock Of The Year: PLTR Long Term Option: Aug 20, 2021 $40C (4.25-4.40)
