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RECAP OF LAST WEEK AND RESULTS:
ARKX: This ETF has announced it will hold companies that are innovating for space exploration. The underlying stocks that could be included have continued to go up in value after we released the newsletter.
Palantir: We called this stock to move upwards in value and the option play we suggested would have made you $150 per contract opened. They moved from $25 to $32.5 a share.
Pinterest: We called this stock to move up to $173. We were correct on the movement as it surpassed $175 this week. The option play we suggested would have made you $163 per contract opened. We expect PINS to continue to rise before earnings.
IN THIS ISSUE
After we notified our subscribers and community, this was FDA approved and expected to double in value from $15.00 a share to $30.00 on Monday.
Artificial intelligence is worth more than its current valuation. Demo-day will cause a large price movement up to $40 per share! Elon Musk and Peter Thiel co-founded Paypal together, maybe a future partnership?
Up in anticipation of earnings week.
Can the revenue keep up with the stock value?
Aurinia Pharmaceuticals: AUPH
Aurinia Pharmaceuticals is a company that aims to cure diseases that have little to no drugs available. Four years ago they decided to try to tackle Lupus Nephritis. On Friday Aurinia announced that “Voclosporin” was approved by the FDA with an extended license to have ownership of the rights to the drug until 2037. This is very exciting for the estimated 1.5 million who suffer from this disease which impacts the kidneys. The patients will have to take two tablets every day instead of the standard practice which is to give the medication through IV. They have shown a much higher success rate with their drug over any of the competitors. Also for investors, this is equally interesting because the stock could double or triple on Monday 1/25. This was announced after the market was closed and trading has been halted further until they release more details.
Current Price: $15
One Week Price: $35
One Month Price: $40
One Year Price: $60
Analysts from Bloom Burton Estimates thought this could go to $63 per share on the announcement of the approval with the extended license of the patent to 2037. The table shown below outlines this with the blue line under the price.
If you are interested, we look to buy this company for a potential buyout opportunity that could come shortly after this FDA announcement. Aurinia could be bought out for a higher share price due to the long term cash that this drug can create. The sales of this drug could be 1.5 Billion to 3 Billion a year.
Palantir - “The software connects to commercial, proprietary, and public data sets and discovers trends, relationships, and anomalies, including predictive analytics.” This stock is a high-risk high reward for us. We have a decent amount of uncertainty in the market this coming week so I would keep an eye on Palantir. A small drop in the stock price might be a good opportunity to buy for a long term hold.
Palantir will cover examples of its commercial and government work. This will give some more insight into their future. Some speculation on our part is that many companies ahead in AI will partner with Palantir. Tesla could be a compatible partner depending on what the capabilities of their software have. An interesting fact is that the CEO of Tesla and the CEO of Palantir co-founded Paypal together.
Check out this video insight on why Palantir could have unrecognized market potential.
Current Price: $32.50
One Week Target: $40
One Month Target: $42
One Year Target: $80
This stock IPO’d in September 2020 but the company has been around since 2003. As we see more success in their data analytics, we will see the value of their stock shoot up. Another factor is that Reddit users have started to hype this stock. You can see from GME (GameStop) which rose from $4 to $72, that they do have a role in the market. This could be a bonus to an additional increase in the stock. Since it is highly shorted (which means people are betting against the stock going down) Reddit users have planned to buy it which will force the betters to cover their positions, which then increases the stock’s underlying price.
If you are interested, we would buy this company this Monday 1/25 before the demo day catalyst. Shortly after, they will announce their Q4 earnings which could have the potential to increase the price even more.
Apple moved up almost 10% this past week in anticipation of this week's earnings. “ Even a pandemic can't stop Apple Inc. from hitting new records. The smartphone giant is likely to post its first-ever quarter with revenue above $100 billion Wednesday.” Apple will report Wednesday after hours and we do believe they will produce excellent numbers.
Current Price: $140.37
One Week Target: $148-152
One Month Target: $155
One Year Target: $190
Apple is pretty cut and dry. This is a proven company that knows how to produce a product that people love and continue to purchase. The fact that we are in a global pandemic and Apple is expected to produce these kinds of numbers should speak volumes to the power of this company.
We are bullish on Apple.
Tesla also reports on Wednesday after hours. We are not as bullish on Tesla. This earnings report will really be a test to see if the sales/revenue can keep up with the stock value. Tesla has had an incredible run this year, up 650%. The price of Tesla did not move up as much this past week either which is a sign that people are waiting to see the earnings report on Wednesday.
Current Price: $846.55
One Week Target: $850
One Month Target: $875
One Year Target: $950
One metric we would like to look at is Tesla’s deliveries. Tesla said Saturday, that “it delivered 180,570 electric vehicles in the fourth quarter, beating its previous record as well as Wall Street expectations.” Their previous best quarter was only around 140,000. I personally own Tesla shares and will be holding onto them for a while. If you have a high tolerance and don’t mind a more risky play, Tesla could continue the run-up. However, at some point, the value of the stock and the actual results of the company will have to balance out.
We are sitting neutral on Tesla.
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Until next week,
and the Optifinancial Team
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