Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Equity Bottom-Up

<ul>
<li>This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.</li>
<li>The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.</li>
<li>Today we are flagging Plug Power, Nvidia, Palantir, and Roblox</li>
</ul>


This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
The key judgement is whether a slowdown is temporary or the beginning of a trend.  These shorts tend to have high valuations and betas.  Multiple compression accelerates the stock’s decline.
Today we are flagging Plug Power, Nvidia, Palantir, and Roblox


Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Palantir Technologies  / Equity Bottom-Up

<ul><li>Palantir delivered a mixed set of results in the last quarter.</li><li>Its $478 million in revenue surpassed Wall Street expectations but the company missed out on the earnings expectations of analysts.</li><li>U.S. commercial business expanded for the ninth consecutive quarter, up 53% yearly.</li></ul>

Palantir delivered a mixed set of results in the last quarter.Its $478 million in revenue surpassed Wall Street expectations but the company missed out on the earnings expectations of analysts.U.S. commercial business expanded for the ninth consecutive quarter, up 53% yearly.

<ul>
<li>Palantir Technologies is seeing progress in its revenue growth in the commercial market in the United States and has scaled its revenues significantly from $39 million in Q2 2021 to $86 million this quarter.</li>
<li>The company surpassed the revenue expectations of Wall Street and this was driven by their U.S. commercial business which increased by 120%.</li>
<li>For the past four quarters, their core U.S. commercial business, excluding strategic investments, has grown by 10% or more quarter-over-quarter, most recently hitting $67.4 million, representing a 14% sequential increase.</li>
</ul>


Palantir Technologies is seeing progress in its revenue growth in the commercial market in the United States and has scaled its revenues significantly from $39 million in Q2 2021 to $86 million this quarter.
The company surpassed the revenue expectations of Wall Street and this was driven by their U.S. commercial business which increased by 120%.
For the past four quarters, their core U.S. commercial business, excluding strategic investments, has grown by 10% or more quarter-over-quarter, most recently hitting $67.4 million, representing a 14% sequential increase.


Palantir Technologies: Partnership With Google Cloud & Other Drivers

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>SenseTime Group (STG) raised US$741m in its Hong Kong IPO in Dec 21. The IPO barely made it through and was priced at the bottom of its IPO price range.</li>
<li>STG is a leading AI software company. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>


SenseTime Group (STG) raised US$741m in its Hong Kong IPO in Dec 21. The IPO barely made it through and was priced at the bottom of its IPO price range.
STG is a leading AI software company. STG was the largest AI software company in Asia in terms of 2020 revenue, as per Frost &amp; Sullivan (F&amp;S).
In this note, we will talk about the lock-up dynamics and updates since our last note.


SenseTime Lock-Up -Investment Blacklist Will Further Pressurize the Upcoming US$18bn Lock-Up Release

Equity Capital Markets

Palantir Technologies  / Equity Capital Markets

<ul><li>Palantir Technologies was one of the most highly appreciated tech stocks when the markets were in a bull run but has taken an equally bad beating in the recent correction.</li><li>The good news for Palantir shareholders is that its revenue momentum has continues and the last quarter has seen a growth in revenue and commercial revenue by 31% and 54%, respectively.</li><li>Given the current market uncertainty, we give Palantir a ‘Hold’ rating with a revision in target price.</li></ul>

Palantir Technologies was one of the most highly appreciated tech stocks when the markets were in a bull run but has taken an equally bad beating in the recent correction.The good news for Palantir shareholders is that its revenue momentum has continues and the last quarter has seen a growth in revenue and commercial revenue by 31% and 54%, respectively.Given the current market uncertainty, we give Palantir a ‘Hold’ rating with a revision in target price.

Palantir Technologies Inc.: The Stellantis Deal

United States

Palantir Technologies Inc. develops software to analyze information. The Company offers solutions support many kinds of data including structured, unstructured, relational, temporal, and geospatial. Palantir Technologies serves customers worldwide.

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Palantir Technologies (PLTR US)

Breaking Growth Short Candidates: Plug Power, Nvidia, Palantir, Roblox

Breaking Growth stocks combine declining fundamentals with a multiple compression. This week we flag: Plug Power, Nvidia, Palantir, Roblox

Eric Fernandez, CFA

Palantir Inc: Major Drivers

Palantir delivered a mixed set of results in the last quarter. Its $478 million in revenue surpassed Wall Street expectations but the company...

Baptista Research

Palantir Technologies: Partnership With Google Cloud & Other Drivers

Palantir Technologies is seeing progress in its revenue growth in the commercial market in the United States and has scaled its revenues...

Baptista Research

SenseTime Lock-Up -Investment Blacklist Will Further Pressurize the Upcoming US$18bn Lock-Up Release

SenseTime Group (STG) raised US$741m in its Hong Kong IPO in Dec 21. The lockup on the pre-IPO and cornerstone investors will expire later this month.

Sumeet Singh

Palantir Technologies Inc.: The Stellantis Deal

Palantir Technologies was one of the most highly appreciated tech stocks when the markets were in a bull run but has taken an equally bad beating...

Baptista Research

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