Nanalyze

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/fQE74_JnzP0.

Cathie Wood's has a strong appetite for risk, and she's not afraid to hold micro caps. We analyze four ARK Invest stocks - the largest of their ten smallest - to see what we might have missed with our $1 billion market cap cutoff. Turns out not much as we've covered three of the four. Micro caps as an asset class aren't very compelling as they have a low Sharpe Ratio - that is, you're not sufficiently compensated for the risks you're taking. This presentation looks at four of ARK's smallest stocks with the other six to be covered in a coming video.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/c_cMdOTMbD4.

A valuation ratio needs to be simple and intuitive. The most popular valuation ratio, price to earnings ratio or PE ratio, doesn't work so well when a stock doesn't have positive earnings. Price to book ratio or PB ratio isn't particularly useful, while price to cash flow works if you have positive cash flows. For disruptive growth stocks that aren't yet possible, price to sales ratio or PS ratio works best. Sales or revenues are a proxy for market share captured, and the PS ratio helps determine how much you're paying for the growth. We've taken the PS ratio a step further and evolved it into our simple valuation ratio which is calculated using market cap / annualized revenues. We provide some examples of our simple valuation ratio applied to high-growth stocks and discuss some new rules we've put in place to make sure we're not overpaying for growth.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/oMEgJGdQeBY.

The SaaS Rule of 40 is used by investors of all types to gauge the health of a SaaS company. Just spouting off the basic formula - growth rate plus free cash flow margin - isn't sufficient. Most people could care less what a free cash flow margin is so we explain everything quite simply. Using a few examples, we show you how to arrive at free cash flow, how to calculate free cash flow margin, and how to put the whole thing together. Just hitting the Rule of 40 isn't enough, you need to consistently maintain it. Very few companies can do this, and we look at some research from leading consulting firms which shows how difficult this feat is and how companies that exceed the Rule of 40 are ascribed higher valuations by the market. And yes, we provide some names of stocks to watch that hit the Rule of 40 and then some. This is the SaaS rule of 40 explained simply - just how it should be.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/ctlhFz6-KmQ.

What is a SPAC? It's a quick way to lose money which benefits everyone except retail investors who are left holding the bag. We first expressed concerns about SPACs three years ago and they were well placed. Some SPACs are already going bankrupt, others are being acquired for far less than the debut price, and 75% of the 99 we covered have lost half their value or more. That's because no institutional gatekeepers are in place to ascribe proper valuations to these companies, many of which are just teams with dreams. Are SPACs worth it? In the vast majority of cases, absolutely not. SPACs are inherently risky and typically offered at a price that well exceeds what the companies should be valued at. In that situation, everyone wins except Joe Retail Investor. We look at the 6% of SPACs we cover that sits above their debut price and talk about why the whole situation is one big mess that should be avoided.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/9MSgdMHOJIc.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/X22KPQkU-VA.

SPY stock is a misnomer because it should be SPY ETF. That's the first misperception many investors have who think SPY stock is something they should trade options on so they can wen lambo their way to success with all the other lemmings out there being fleeced by Pied Pipers. Our SPY analysis looks at what exposure you're actually getting from investing in SPY stock - a collection of the 500 largest stocks traded on exchanges in the United States. Given the SPY ETF has assets under management of over $400 billion, it's no surprise they're able to have a bargain basement expense ratio - less than a tenth of a percent. Our SPY stock analysis looks at how this ETF has shown a remarkable 10% annualized performance over the last 30 years. In addition to capital appreciation, SPY also pays a small dividend, the yield of which increases during bear markets. We take a look at past bear markets - including the current one - and provide some advice on how SPY investors might consider some international diversification.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/13kRbp4WgvI.

TTOO stock - or T2 Biosystem stock - is enjoying immense popularity for reasons we can't discern. Whatever technology platform they might have is completely irrelevant when they can barely eek by a positive gross margin. Should this $15 million market cap company default on the $50 million in notes payable on their balance sheet, the lender can then take full control of nearly all their assets including intellectual property. Since raising more debt isn't an option, it's they may choose to sell stock. The problem is, they just gave away over 90% of the company in offerings while diluting existing shareholders into oblivion. Even after those dilutive raises, they still don't even have enough cash to get through the next few quarters. Sounds absolutely horrible, which is exactly why the meme stock types are being attracted to it. They seem to love companies that ride on the edge of insolvency. If we had to assign a price target to $TTOO stock it would be zero. In case you need further proof that T2 Biosystems might be one of the most poorly run companies ever, just look at how much management is getting paid. Do they really deserve to be making millions while TTOO shareholders are slowly ground to a pulp?

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/pIGKVNGyYfo.

How to calculate market size is an art more than a science as you'll get a dozen different answers from a dozen different sources, many of which shouldn't be taken seriously. Investors want to know the total addressable market or TAM because it indicates how much opportunity for growth there is. Unfortunately, many companies use TAM incorrectly when they should be looking at SAM and SOM - serviceable addressable market and serviceable obtainable market - which more accurately reflect the opportunity a company can capture given constraints like product functionality or geography. Be careful about defining market share as a percentage of TAM. Instead, market shares are the percentage of TAM captured for any given company. We give some examples of how market size estimates vary so widely and look at how breaking a market opportunity down into components makes it easier to understand.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/RU2gWBel18Q.

How to read a 10-K quickly requires a lot of experience, but they're so accessible that anyone can do it. Our tutorial on how to read a 10-K annual report used an interesting life sciences company called Novocure as an example. Using nothing but the latest 10-K report, we show you how to quickly and efficiently analyze the information to find out what the company does. We quickly hone in on estimates of the total addressable market and conclude that Novocure stock isn't one we're interested in. For investors with more risk tolerance, NVCR stock offers future promise when other indications allow them to expand the TAM about 14X. If you've been wondering how to read an annual report, or how to find a US 10-K annual report filing, then this tutorial will help you get started.

Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/TxkgwgZrzwo.

When to sell stocks is a more important decision than when to buy them because it's when you lock in profits or losses. Most newbies run into problems because they buy stocks based on what other people think. Most of these supposed "stock tips" are useless because they say nothing about the most important decision an investor needs to make - when to sell stocks? For long-term investments, these decisions become even more difficult as no investor likes to leave money on the table. That's why buying stocks you're willing to hold forever is the best way to sleep well at night. IF you buy the highest quality companies with business that have proven to be resilient over time, there will be few reasons to ever sell aside from rebalancing. There are three reasons we would sell any tech stock and one reason only that would drive us to sell a dividend growth stock.