I just discussed your latest TEM deep dive with an investor who was long on PLTR since recommending it at $15 (based on a WhatsApp conversation I had with him dated 8/15/23).
He sees strong parallels between TEM and PLTR, believing analysts are currently mispricing TEM just as they initially misjudged PLTR. In his view, applying a 15% earnings growth rate to TEM significantly understates its long-term potential.
He emphasized that with the AI wave expected to reshape the healthcare sector, TEM is uniquely positioned. Unlike many newer entrants, TEM already has the necessary data infrastructure and technology in place, having provided healthcare recommendations long before formally pivoting to AI. This gives TEM a critical first-mover advantage in healthcare AI.
He believes TEM is poised for explosive growth similar to what PLTR experienced — and views the recent pullback, driven by tariff concerns, as a buying opportunity.
I see the parallels between the two companies, but I don't think it's wise to base my investment thesis on the idea that "it could be like Palantir a few years ago." As I mentioned, if I were running a diversified portfolio, I would absolutely include TEM. However, since I'm a highly concentrated investor, I'm only willing to invest in companies I believe are clearly undervalued (and if you look at my assumptions, you'll notice I applied a much higher earnings growth rate than 15%).
Yes, I missed out on PLTR for similar reasons, but this discipline has also helped me avoid many potential "growth traps." In any case, I think it's unlikely we'll see another stock behave like PLTR did anytime soon (in terms of continuing to rise indefinitely, regardless of valuation).
Thank you Manuel for your very thorough review.
I just discussed your latest TEM deep dive with an investor who was long on PLTR since recommending it at $15 (based on a WhatsApp conversation I had with him dated 8/15/23).
He sees strong parallels between TEM and PLTR, believing analysts are currently mispricing TEM just as they initially misjudged PLTR. In his view, applying a 15% earnings growth rate to TEM significantly understates its long-term potential.
He emphasized that with the AI wave expected to reshape the healthcare sector, TEM is uniquely positioned. Unlike many newer entrants, TEM already has the necessary data infrastructure and technology in place, having provided healthcare recommendations long before formally pivoting to AI. This gives TEM a critical first-mover advantage in healthcare AI.
He believes TEM is poised for explosive growth similar to what PLTR experienced — and views the recent pullback, driven by tariff concerns, as a buying opportunity.
Any thoughts on this parallel?
Thanks for your comment Meir!
I see the parallels between the two companies, but I don't think it's wise to base my investment thesis on the idea that "it could be like Palantir a few years ago." As I mentioned, if I were running a diversified portfolio, I would absolutely include TEM. However, since I'm a highly concentrated investor, I'm only willing to invest in companies I believe are clearly undervalued (and if you look at my assumptions, you'll notice I applied a much higher earnings growth rate than 15%).
Yes, I missed out on PLTR for similar reasons, but this discipline has also helped me avoid many potential "growth traps." In any case, I think it's unlikely we'll see another stock behave like PLTR did anytime soon (in terms of continuing to rise indefinitely, regardless of valuation).
Great thesis on a very interesting company, thanks much!
Thanks a lot for your feedback Robert!