Tempest AI (TEM) is a "fear" stock with high short interest (34%) and solid revenue growth (20%+), making it a potential short squeeze candidate trading at a deep value valuation.
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I’m Buying These 3 Stocks at Peak Fear and Selling 2 at Max Greed
The creator discusses identifying stocks based on fear and greed signals, highlighting D-Wave Quantum (QBTS) as a "peak fear" stock due to its significant price drop and the broader quantum computing sector's struggles. He contrasts QBTS with IonQ, favoring QBTS for its longer operating runway despite both companies being unprofitable. The creator also mentions Netflix and GameStop as examples of stocks that experienced extreme sentiment shifts.
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Tickers discussed in this post
CSX Corporation (CSX) is trading at a peak greed valuation of 30x earnings, which is too expensive for a transportation company, as the market is pricing in current shipping problems that are unlikely to last.
SoFi Technologies (SOFI) is mentioned as an example of a stock that required patience after a significant crash, ultimately delivering a 300% return after the creator stuck with their research.
Boston Scientific (BSX), despite a 58% plunge over the last year, is a world-class medical device maker that may be a "peak fear" opportunity due to its strong business fundamentals.
Molina Healthcare (MOH) is showing signs of peak greed with a high RSI and an expensive valuation, suggesting investors should be worried about its upside.
GameStop is mentioned as a past example of a stock where investors assumed it could only run by mid-2022.
Netflix is used as an example of a stock that was given up on in 2022 but subsequently delivered an 800% return over three years.
Quantum Computing (QUBT) has fallen more than 50% and is perceived by investors as potentially having a bigger problem than other quantum stocks.
IonQ is a larger, more established quantum computing company but is burning through cash rapidly and will likely need to raise money and dilute shareholders, making QBTS a more attractive option.
Rigetti is mentioned as another quantum computing stock that has struggled recently, but is still up over the last year.