I first nibbled 10 shares of Palantir Technology Inc. (NYSE:PLTR) at $22.65 in Dec 2021 using free money collected from selling put options.
I am also holding 2 put option contracts committing to buy 200 shares of Palantir at $20 by 19 Aug 2022. I will most likely be rolling them down to next year.
Yesterday I placed an order to buy 90 shares of Palantir at $10.88 and it was filled this morning at 4am.
I now hold 100 shares of Palantir and can sell call options to collect premium soon!
Palantir has drawn flak from its secrecy data analytics business dealing with privacy and data from government and intelligent agencies. Despite enjoying growth in revenue and business, Palantir is not yet profitable and is burning cash due to facing rising costs and overheads. This is like catching a falling knife.
However, I believe in the growth prospects of the artificial intelligence and data mining software tools provided by Palantir which are trusted by the U.S government and becoming increasingly valuable in the commercial world. The recurring income streams from government contracts with U.S Special Operations Command, National Nuclear Safety Administration, U.S Space Force Command, etc. have provided stability to its bottom line. Its commercial growth accelerated last year and is at a faster pace than its conservative government business. This is a make or break business prospect in the long-term and I have confidence in the reward-to-risk ratio and decided to allocate at most 1% of my net worth in this company.
Palantir is a unique business with a strong economic moat offering unique data analytics solutions with sustainable competition edge. Its Gotham software allows U.S military and law enforcement agencies to maintain peace and order for not just U.S but also the world. Its data mining capabilities allowed the hiding location of terrorist Osama Bin Laden to be identified decades ago. Early this year, Palantir collaborated with Hyundai Heavy Industries Group to use data analytics to improve and streamline shipbuilding, offshore engineering, energy and industrial engineering processes. What's more to come? The latest rumours in the commercial space involve potential collaboration between Google and Palantir on their cloud platform and Foundry solutions respectively.
Thanks for reading. As always, stay safe and remain strong.
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