Buying Humanoid Exposure Without the Humanoid Premium. Here's my first buy.
Finding value in an inflated market
If you haven’t had time to read it yet, this article builds upon 50+ hours of research in a deep dive I sent out Friday on the Humanoid Actuation supply chain:
As I mentioned in the article, Asia is already 1yr+ ahead of us with the humanoid trade and has already repriced the most obvious picks and shovels plays. As the U.S. and the West catches up to the humanoid theme these same names could do well off hype and momentum, but at the cost of paying up even more future returns with worse risk-adjusted returns. And with the market on edge following Friday’s selloff, I don’t want to keep adding high beta names to my portfolio.
Remember, how much you pay for future revenue matters. I’m not saying we’re in the midst of a crash, the market has only given back a few weeks of gains, but that it’s important to assess the quality of fundamentals particularly when liquidity starts pulling from the market.
As I’ve set out to find value in this space, I have focused on earnings quality, cash/debt levels and evaluating how much of a humanoid premium is already embedded in the price.
Here’s what I’ve found.
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