Hi Everyone,
My primary stock trading platform is Power ETRADE. It allows me, with the click of a mouse, to sort and review my list of stocks using whatever criteria is most important at the time. Usually, when I first look at my investment list, I sort in columns labeled “Dividend Yield” and “Today’s Net Gain”. This quickly focuses one’s attention on what is going on with the most important holdings. Today I was almost surprised to see one of our call option hedge funds, PLTY, drop a huge 10% in value. PLTR, its reference stock, dropped about 15%.
We have previously discussed this stock after the bought and paid for fake news folks deliberately savaged the price to benefit short sellers by claiming that the new effort to drive government efficiency was going to cut the spending on PLTR’s software. I pointed out to our readers that PLTR is part of the software suite used in government to make things a lot more efficient – and, lacking stupidity, mechanics, government or otherwise, don’t usually discard their vital tools in the middle of a job. Needless to say, PLTR and our PLTY dived and we were given a great opportunity to build our position for lower prices. Since then PLTY has continued to pay us great dividends AND some of you wisely bought in a timely enough fashion to collect the last 3 payments:
- 04/24/25 $4.656 dividend payout
- 03/27/25 $5.326 dividend payout
- 02/27/25 $5.938 dividend payout
Well, in today’s news PLTR’s earnings and forecast from last night were reported and they were exceptional!!!! Instead of the expected drop, as forecast by the fake news, earnings grew 1% (and this is big money). The forecast for growth this year is something like +34% and the biggest lie told by the fake news was exposed – government orders are way up and climbing. But thank goodness, Extreme Investors like us get to make money off of the limited capacity for deep thinking and memory that exists in the stock marketplace. If great news were allowed to drive up prices, all the short sellers out there, would get squeezed into buying back much more expensive shares than what they sold them for.
Since the news was undeniably good, fake news and their short selling sponsors have now changed the narrative. The new hype they are now pushing is that The Price/Earnings ratio is too high, i.e., the stock is way too expensive. In traditional 1980’s style old fashion investing this might have been true, and foolish people still follow primarily that train of thought. But, investments today move much more quickly and they are usually more driven by where a company is going and less by where they are now. TSLA and NVDA are examples of historically high P/E ratios that didn’t matter in the long run to the growth of stock prices because the driving factors were always about the future – and smiling investors watched as those forecasts were achieved and then exceeded!!!
So in the opinion of this writer, PLTR is probably headed for a surge in growth, and thus our PLTY may be on sale right now. According to PRINCIPLES 5 AND 7, THIS IS A TIME WE MAY WANT TO BE BUILDING our PLTY positions. THE NEXT PLTY DIVIDEND DECLARATION IS ON 5/21 FOR PAYMENT ON 5/23. In my personal case, I am targeting $53/sh good till cancelled order to buy more PLTY – based on the last dividend that would create a 114% yield.
Tomorrow, dividend declarations will be published for AIYY, AMZY, MSTY, SMCY, WNTR, LFGY, CHPY, AND ULTY to be paid on Friday night, 5/8.
Until then,
Regards,
Clint