🗞 Forget Palantir, This Stock is Next

WHILE YOU POUR THE JOE… ☕️
I Don’t Like Home Runs

When I ran my investment up to 4x 🔥 during the COVID cheap money craze, I thought I had figured it out.

I thought all those years of delayed gratification were being repaid all at once in a lucky stock I found called CleanSpark.

For about a week, I was sitting on a crazy account balance and wondering whether I still needed my job (I was 22, can you blame me?)

What happened next is probably what you expect, but while most people would stop at the ensuing failure to replicate a home run, I actually learned a valuable lesson.

This is day #3 in our Free 5-Day Email Experience, get yours here ⬇️ 

Speaking of home runs, let’s get on with today’s email 📧…

MORAL COMPASS
Might As Well Be Me

Some of you may be stepping away from any trades and the market altogether during these unfortunate times of potential war. 💥 

That is commendable and I take my hat off to you, as you have a much straighter moral compass than I do.

Unfortunately, our investors depend on us to keep cranking the numbers and making money no matter what happens in the world, and if you’re stuck in that same camp, then I got something good for you. 👀 

We all know this meme, and we all know Palantir stock, the one that has made a bunch of value investors throw away their copy of “The Intelligent Investor”.

What most don’t know is that there is another (much smaller) company that shares the same attributes that Palantir does, yet is not getting any attention.

Enter BigBear.ai

This is a company with less than $2 billion in market cap, therefore usually outside the scope of most institutions and also outside of the universe we tend to look at.

However, I read a post the other day on the importance of Machine Learning in military applications, and decided to do some digging.

Apparently other people did too:

What you see there is a pretty quiet period in terms of volume for $BBAI stock, until June 2025 that is.

We have broken past the average volume levels for the past five years, and it’s no coincidence this is happening as a potential war breaks out in the Middle East.

Not just any war though, a nuclear and ballistic missile one, just the type to allow companies like Palantir and BigBear test out their new machine learning built toys.

Just look at this, you mean to tell me that Palantir is much more successful than BigBear because of merit? 🤷‍♂️ 

Hell no.

It’s a popularity contest that Palantir has won in Reddit forums and other media sources, but I have reason to believe BigBear is about to jump on that bandwagon as well here.

Follow the Money

Over the past quarter, as if knowing that conflicts were about to break out, BigBear mysteriously quadrupled its R&D budget and saw a 30% boost in its backlog orders at the same time…

That’s awfully close to the timing of the big volume breakout, which to me sounds like an accumulation happening behind the scenes.

Oh, and then there’s the upward guidance from management, effectively pushing revenue projections higher by double-digit percentage points. 📈 

Look, I’m all for ending the conflict as soon as possible, but the way things are going I do think other countries are about to get involved (UK is due to react to Iran bombing US bases in Qatar and Kuwait).

This means the boost in backlogs and R&D from BigBear likely won’t go to waste here.

Now here’s why I believe this company has what it takes to win in terms of a massive rally coming on, apart from its technology being quite similar to Palantir’s:

Roughly 60% of BigBear.ai’s assets are held in Goodwill and Intangibles, which is English for their proprietary algorithmic technology for military applications.

What’s more, this is also roughly 13% of the company’s entire market cap, meaning we are only trading at 7.6x of the entire thing that drives this business forward.

In a normal world, this multiple looks more like 16-20x, all you need is for the Pentagon to give BigBear a shot at being famous and you got a valuation that looks closer to the norm.

Hence, your 100 %+ return is in the making. 💵 

Let’s see where this takes us,

G. 🫰 

GO AND MAKE IT HAPPEN
Master the New World

AI is not coming for your job, but someone who knows AI and how to work it likely will.

This new world is going to have less barriers of entry than ever before, so you need to get with the program whether you like it or not.

That’s where today’s book recommendation 📖 comes into play.

To your success,

G. 🥃