TEM - Nov 24 Extended Mispriced AssetsStrategy - Extended Mispriced Assets 🌊
Idea
TEM, a precision medical AI company recently listed on June 14, 2024, and featured on The Wall Street Journal, has demonstrated consistent growth over the past three quarters with improving EPS.
Despite these strong fundamentals and a clear thematic focus on AI, TEM has been downtrending along with the broader market following the Trump rally. On November 21, it experienced a sharp bearish move, which appears to be tied to the broader market’s negative reaction to Nvidia's strong earnings.
Given its robust business fundamentals and alignment with the AI growth narrative, I believe TEM is currently mispriced, presenting an opportunity to arbitrage this value as it normalises.
Technical positioning
- Confluence in RUT & SPX bull direction
- Recent price consolidation below H1 100SMA
- Trade is aligned to existing trend
- Risk reward is 2.9R at the 12 Nov