| Market Cap: 2.06B
Beta: 3.19
P/E Ratio: n/a
Overall Risk: High In very rare cases there are free lunches, but I highly doubt BigBear.ai will be one of them. Any investment carries significant risk—something our automated systems confirm by giving BBAI a high-risk status and a score just above “Hold.” However, looking at the chart makes you wonder whether the stock will push higher within the rising trend and aim for the all-time high, which was $9.78 back in February.
What makes me believe there’s a fair chance for BigBear.ai to do well over the next few days and weeks is the low RSI on the long-term chart and a fairly favorable RSI on the short-term chart. Volume is low but showing signs of increasing; if it does, I believe the stock is more likely to rise than fall. The joker in the deck is the forthcoming quarterly results, which will be released Monday, Aug. 11. The minimum expected swing is ±10%. With very little solid support below, hopes and cheers can quickly turn to despair if the market doesn’t like the numbers or the guidance that follows.
It’s hard to reach a firm conclusion, but BigBear.ai focuses on decision support in segments like cybersecurity and the military, and with an arms race and billions being pushed toward war readiness, the company seems to be in the right line of work. This doesn’t reduce the short-term risk, but it argues for less risk in the longer run.
I don’t hold any BBAI shares at the moment, but the stock looks interesting at current levels. I expect large moves and see a higher chance of an upturn than a downturn.
I don’t often pen the newsletter, but doing so today, BigBear.ai was one of the most interesting stocks I could find and present in today’s issue. You should always do your due diligence, and this is not advice to buy BigBear—I leave that decision up to you!
And while you’re still reading—and there should be some 30,000–40,000 of you—here’s an actual piece of advice. Many of you don’t think twice about entering risky investments, and many of you lose money. Yet you find it hard to pay for information or services that could improve your odds...
Many of you will go out and buy a Starbuck coffee for $6 today, without thinking twice...
Many of you will paymore than $10 in comission today just to trade...
I am not arguing for a subscription at our services, but trying to encourage you to see things in a bigger picture. It is all about the choices you make.
If you want to increase your chances of success, be less impulsive and do your trades based on reasons. Sometimes reasons are wrong, but in the long run your reasoning gets better. And if your not willing to pay for tools to help you, then at least go to the liberary and borrow some good books. Up your skills and knowlegde! All we want, and I personally want, and always wanted is for you to succeed in your trading. It is even stated in our vision.
Lastly, since the short-term risk in BigBear.ai is high, and this ist todays topic, you should limit your exposure accordingly if you enter the stock. It should sit in the part of your portfolio that says: “Could be; hope it will be; but it won’t be the end of me if I’m wrong.”
Have a great day, and happy trading!
Jim | 
