The most popular DDs on Wallstreetbets so far this week
Most commented: CLOV degenerates be careful u/8balls____
Sigh... be careful CLOV degenerates. This high short interest stuff has already been debunked it looks like. The high short interest shown was a mistake by Factset and the short% of float is way way lower. Short interest is actually only about 35% of float, which is moderately high but not anywhere remotely close to the 145% being spread around.
Institutional shares like Vanguard that are counted in the post are freely tradable and are never deducted from a float calculation.
Clover’s publicly traded equity are Class A shares. Clover’s CEO only holds Class B shares. The screenshot shows that FactSet accidentally thought CEO Garipalli’s 83 million Class B shares were Class A shares. They were not, but because of the mistake FactSet subtracted them from the calculation of Class A float, which led to the mistakenly low number. In other words, the screenshot of the “evidence” actually debunks this thesis… to see full post
“i bought exactly 2 shares because thats what i had laying around on my account. if it can give me some pocket money i'll be happy”
“The amount of traffic CLOV is getting means I will be buying 75% in shares, 25% in like jan 2022 $15s. This is too early to be doing FDs, for everyone new.”
“Errors were noted before after hours ended yet still up 2%. This whole situation is so fishy. Might chuck something at it out of fomo incase it has a bit of a run.”
Most Positive Sentiment: BlackBerry DD 🚀 u/R4IVER
Time to put some news on the table about one of the most undervalued stocks. It still blows my mind why wall street hates this company. We know the boomers are retarded, but you literally cannot be that much retarded to undervalue this goddam stock. But enough with chit chat. I am talking about our favourite fruit #BB.
Just to put it into perspective… Blackberry has a market capitalisation of 5.12B and a total valuation of around 6B. Total turnover was around 890 million. Just for comparison cloudflare inc. has a total market cap. Of 23B with a total valuation of 21B while having a total turnover of approx. 430 million. I know this isn’t the best comparison, I just thought it would be interesting. https://de.wallmine.com/nyse/bb https://de.wallmine.com/nyse/net
This company has transformed itself from a lost hero that made phones to one of the best, if not the best company making security software, yes. Security software, not only cyber security software.
Currently BB makes several interesting products. QNX QNX Hypervisor Spark IVY AtHoc And they even make a new phone (manufactured by OnwardMobility) Information about the phone currently is kinda scarce but still interesting https://en.letsgodigital.org/smartphones/blackberry-5g-smartphone-2021/
As you can see there is plenty of interesting stuff going on…
There are plenty of DDs posted on WSB for BlackBerry already and I would only tell the same news again so here is the link for the best one if you want to know more about their products. Thanks to u/_MoveSwiftly for that great post. https://old.reddit.com/r/wallstreetbets/comments/l4ehan/blackberry_dd/
So what has changed since the DD I posted above?
BlackBerry released their earnings, which led to a big dip, that keeps dipping. Reasons for the dip? Honestly I don’t get it. There are literally only positive news for the future. But the boomers don’t care, they are probably still salty their favourite phone company from the good old days is gone and they don’t like the new touch tech.
Now the good… And there is plenty good. New partnership with IBM Canada to bring Spark ® to organizations across Canada https://www.blackberry.com/us/en/company/newsroom/press-releases/2021/blackberry-and-ibm-canada-establish-a-new-partnership Canada relies on blackberry for event management and secure communication https://www.blackberry.com/us/en/company/newsroom/press-releases/2021/the-government-of-canada-selects-blackberry-for-secure-productivity-and-secure-communications Volvo (not the car, but the heavy machines company) use QNX for dynamic software platform https://www.blackberry.com/us/en/company/newsroom/press-releases/2021/volvo-group-selects-blackberry-qnx-for-its-dynamic-software-platform SCANIA (trucks and busses) also use QNX https://www.blackberry.com/us/en/company/newsroom/press-releases/2021/scania-chooses-blackberry-qnx-for-its-next-generation-of-vehicles Blackberry created blackberry alert ® And there is more and more and more. Check for yourself https://www.blackberry.com/us/en/company/newsroom/press-releases I don’t know when there was a stock slept on for such long time.
Most Bearish Sentiment: My fellow PLTR apes should know the risks u/benihana123
I love PLTR stock, I bought at DPO and sold half at 40 (where the valuation was just getting too dumb for a stock with 30-40% growth - I am planning to buy again when it declines more).
The company is great and I can tell you first hand that they only hire the brightest to work there.
But I want to teach you apes (the ones who want to hold this for 4-5 years) about valuation. Let’s do a an experiment, I assume that PLTR blows their prediction of 30% growth in the next 4 years and grows by 40% (that will be very hard to accomplish so this is a very bullish 33% average beat).
We have a revenue of 1.1 billion for 2020, have that grow for 4 years by 40% (1.1*1.404 =4.2). That results into a revenue of 4.2 billion. When I use a PS multiple I assume they improve their margins and are not considered a consulting business- that would be disastrous for the stock - therefore, I am still very bullish. Splunk - which is a worse competitor has had an average 5 year PS of 10. If we apply a price to sales of 10 we are trading today at a 2024 PS ratio of 10! If we take an extra bullish view (we can apply a PS of 15 - which quite curiously appears in a lot of VC late stage funding valuations); with a 15 PS we have a 63 billion valuation which implies a 50% growth from here in 4 years. Which is insane especially since I took into consideration extra growth.
I know most of you 🦍 like to gamble but if you plan to hold this for 10 years this is a great pick, but don’t be surprised if in 4 years you’re up only 50%. Moreover, for those of you who like to gamble please learn to find run ups to catalysts and improve your chances of succeeding (if you want me to delve deeper into that leave a comment - there are surprising methods to the madness). ✌️