Ouster: A Small Bet Buy the Dip Candidate

2 months ago

Chip Stock Investor

"Just pretend that they have the ability to get there. This is why we call these types of small bets in our portfolio, a prove it stock. You keep the position small. As the company checks off the list of things they need to accomplish, you can maybe add to the position a little bit over time, but overall, it still needs to remain small, a very small part of your portfolio for the average investor. I like Ouster. It's a small position for us, so I'm comfortable with that at this point."

The speaker outlines that despite current challenges such as elevated operating expenses and negative free cash flow, Ouster's recent earnings improvements and revenue acceleration make it a viable buy the dip candidate. However, due to inherent risks and dilution from its ATM program, the position should remain small until clearer profitability emerges.

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