Investment Q&A

Q: SaaS and Software Companies at Risk

The software sector has taken it on the chin in the last few weeks based on the "AI will eat software" theme.

In my opinion, you buy software companies that own things AI cannot generate or scrape.

Therefore, the survivor software companies should have two broad “moats” in the new AI age:

1. Data that is unique and private. If an AI can't get the data elsewhere, the value of this data increases.

2. Regulation. Hospitals won't switch to a chatbot that isn't FDA-approved. Same for governments.

Therefore, I wondering which companies will likely face challenges while others will thrive in this new world. I offered a few below, but please feel free to jump in or revise:

Thrive - For example: CSU, TRI, CRWD, PLTR, SNPS/CDNS, SHOP (not sure) etc.

Challenged - For example: CRM, Adobe, SAP, SNOW, NOW (not sure), etc.

Thanks 5i and Cheers.

PK

Q: From Michael Burry.

Palantir’s accounts receivable (AR) is first up. The traditional metric for AR is Days Sales Outstanding (DSO), with higher DSO implying customers are taking their time to pay for Palantir’s services for one reason or another.

In 9 of the last 12 quarters, AR grew faster than revenue – a persistent pattern generally attached to nefarious tricks such as channel stuffing, aggressive revenue recognition, or extended payment terms used as sales concessions. For real subscription businesses, AR growth should track revenue growth closely. When AR is volatile or outgrows revenue, it means the company is booking sales faster than it is collecting cash.

Reason to sell or not, how big a deal is it?

Thank you.

Q: What are ai cos. are there to many to name them. which one are your favorites?
Thank you so mutch.

Q: What you would say today to an investor who own shares of this enterprise : sell or hold? and why?

Thank tou very much in advance.

Q: I would like to add to an existing position in one of CSU, TSLA or PLTR for a long term hold. Which would you suggest and why.

Thanks

Q: What handful of small to mid cap companies do you see as having home run/Palantir type potential? I don’t care what exchange the companies are listed on. I’m willing to be patient and realize your picks are purely speculation.
Thanks

Q: Hello Team 5i & Everyone,

Is Palantir's tech officially (or unofficially) being used by ICE and other agencies to make the new data base of all the US citizens who oppose the current US administration? (Ie: the protestors, individual states voting records that show which candidates individuals voted for in the past, etc).
With all the people recording everything with their cell phones in Minneapolis, you can see and hear that ICE Agents have started taking photos of protestors and telling them as much about the data base. Gemini summarized that the Palantir’s ImmigrationOS is designed to track “migrant” movements and streamline deportations, which, anyone with critical thinking skills can easily understand how that can also be used to track anyone & everyone.

I don’t mean to put you in an awkward spot, I’d just like to know what you’ve heard please.

Thank you,

Sandra

Q: what would your top 10 defense stocks be?

Q: I have just started an RESP for my grandson and will be contributing the max $2500 per year. What would you recommend as my first stock purchases.
Thank you

Q: Hello Team 5i & Everyone,

With regard to the A.I. theme: If you had to pick 9 American stocks to watch that have been already running since 2023 because of A.I., which stocks would they be?

Nividia & Microsoft seem obvious. Maybe VST, AVGO… Gemini provided a list, but I’d like to know what you think please.

I find that the MAGS etf is a simple way to track the big tech stocks, but I’m not sure if the SMH etf would be too specific to track the A.I. stocks/theme?

Thank you for your help!

Sandra

Q: I remember many years ago, when I had just started looking after my own investments. I made many mistakes and even ended up with a few "smoking holes in the ground". I have now been a long term subscriber to 5i and have enjoyed much success as a result of the teams sage advice. Than you for helping me separate the Wheat from the chaff.

As a retired high school teacher I remember way back, prior to alphabet (google's) IPO, seeing their logo on every computer in the classroom when students booted them up, and thinking, " I wonder if they would ever IPO?" Well, of course they did, and upon seeing that I would need to pay a 17% premium as a retail investor (no matter how quickly you acted the morning of the IPO) I passed on the stock until years later. I am a happy shareholder currently.

My question is, are there any pre IPO companies that you are currently excited about, and if so, how can a retail investor have the best chance of getting in on an IPO other than waiting until it trades publicly? Anthropic? others?

Thank you

Q: Knowing someone who works for Palantir I bought in at about 12$ in 2020. I am now seriously contemplating selling those shares for only one reason. The P/E is off the charts. I understand that there is a cult following around Alex Karp and Peter Thiel. However, does it make sense to own a company whose earnings per share are so far away from the cost of a share and where this difference only seems to increase over time.

Q: Michael Burry ( of The Big Short fame) has recently attracted much attention over his analysis and commentary on some the major AI companies. I was wondering whether you had conducted any review of his rationale and reasoning around his positioning

Angus

Q: Thank you for the excellent market update comparing the AI boom to history. What are the top 'capex-light' companies that you feel may participate in the AI boom?

Q: Hello team,
Based on a bit of research I have done, I would like to buy these companies in the following order: ASML, SMCI, ANET, AMD, AVGO, SITM, ARM, PWR, PLTR

I am buying them to further focus my portfolio on AI for the next 5-10 years. I already have the hyeprscalers and the usual AI suspects but, somehow, I missed on the companies listed above.

Please deduct as many credits as needed for the following questions:
What do you think of this list?
Would change the order based on their resent declines/Valuation?
Would you drop any of the above based on their excessive valuation which may not meet the expected growth in next 5-10 years?
Would you wait a bit more before you buy or just proceed today?
Is there a better company that can substitute any of the above based on moat in AI? Any other company that you think I should also consider?

Thank you as always for your invaluable help and insight. (Without you I would have quit investing a long time ago!)

Q: Hi Team,
If you had to pick only one CDR with the highest potential stock price appreciation what would it be. Regardless of risk and sector.
Thanks

Q: I was looking at my account today and I own both PLTR actual UDS shares and PLTR CDR. The CDR seems to be way lower in a disconect in value to the actual shares. last night I was 50% positive on the CDR and today I am 54% negative and the actual stock is still in the 174 range which shouldn't account for a 104% move total. Did something happen I am not aware of with the CDR or is this a brokerage glitch in pricing? The account is RBC Di. Any insight would be great.

Q: May I have your current thoughts on BBAI? Is the stock still 15x sales? Is PLTR a competitor? Thank you for your assistance.
Jim

Q: Please what do you think of the big bet against again Palentir and Nividia by the so called "Bigshot "Michael Burry? Possible effects and consequences?

Thank you very much in advance?

Q: What did you think of the latest quarter and do you think it’s on the path to a trillion dollar Market Cap in 10 years?
Thanks