What’s going on shit hawks,
TL;DR inflation has little impact on these two companies who are essentially debt free. Bull horns on both CLOV and WISH.
I’m surprised no one is talking about this.
Figured, I’d discuss it and go over something important to know about CLOV and WISH. Super bullish by the way and here’s why:
People seem to not be chattering up about the federal reserve inflation meeting this Wednesday and Thursday. Personal opinion, whether it’s good or bad, it’ll still effect the market.
Every fucking time there’s something about inflation in the news, Ex: “Inflation meeting this week” or “analyst or expecting inflation to have a big impact on markets” etc. it fucking sends the market to drill to the core like the Russians did.
But here’s the thing, why does inflation affect the market? It effects companies with large debt to equity ratios. Reason being is pretty simple, inflation goes up, interest rates go up, debt/loan interest goes up, larger payments cut into margins. Also, other factors like demand, economy, etc.
Now, why did the title mention CLOV or WISH? Well the reason why is because both these companies are pretty much debt free.
CLOV total debt: 55.94M
WISH total debt: 48.00M
With the size and revenue these companies generate, you can essentially consider them debt free.
Apart from these being considered “meme” stocks, large short interest, undervalued, and the works, which has been discussed a bunch on here by myself and others, I believe whether the inflation meeting is good or bad news, it’ll have little to no impact on these two companies fundamentally as they essentially have no debt.
CLOV – debt-equity-ratio: 0.10
WISH – debt-equity-ratio: 0.04
The ideal Debt/Equity ratio for a business is to be under 2.00.
As you can see for CLOV and WISH, they have extremely low Debt/Equity ratio.
One company provides health insurance and the other is an e-commerce company focus on retailing products at the best competitive price possible.
I’m bullish af on CLOV and WISH and believe that with the inflation concern that will hit the market, it’s good for everyone to know the position CLOV and WISH are in financially.
Jump To The Original Source