Last night, gorilla advisor, brother Ihor Dusaniwsky declared 3 stonks to have a reached a maximum 100 of 100 squeeze score. Them being GMC, AMC, and CLOV. The goal has always remained the same – getting a glorious ride down to Tendietown. The question becomes: what vehicle will take you there?
Two of the stonks mentioned above are quite familiar, if not exhausted on WSB. Yes, yes, we all love GME & AMC but the newcomer of the group is the most tantalizing at this time. That's Mr. Clover Health. Currently, CLOV has the highest percentage of free float on loan (52%) of all three of Ihor's top picks It is the most shorted large cap stock on the market. It also has the lowest share price due to not squeezing like we've seen with GME and AMC.
Now that my $50 per month (fuck you Ortex) has deduced that CLOV it's ripe for the picking, let's discuss why this big green banana hammock is much different than our previously mentioned WSB conquests. I'll roll through a few potential catalyst for Clover that could send the stock skyward resulting in an epic "Get Shorty" moment.
- For one, GME and AMC were both burning through cash and on the rainbow road to gay bear bankruptcy when the suits decided to short them into oblivion. Clover Health is a bit of a different story. They had sales of $670M in 2020 and are guiding for $800-900M in 2021. They are sitting on close to $1B in cash. The primary difference is that they are a technology/growth company rather than a legacy company needing to restructure and take on debt to stay alive. That means no dilution. A rare case for such a heavily shorted stock.
- Russell 3000 At the close of June 25th Clover Health will be added to the Russell 3000. This means every ETF that tracks the fund will have to add shares of CLOV to their portfolio. This is enough of a catalyst to move any stonk. But it could create back breaking movement for the bears. June Russell 3000 Additions
- Markets CLOV operates in very few states right now. They have ridiculously small percentage of the Medicare spending pool which was estimated over $800B in 2020. They are scaling rapidly and onboarding in new states every quarter. They also inked a deal with America's largest employer – Wal Mart. Bloomberg – WalMart Partners With Medicare Startup Clover
- CLOV wants to implement machine learning to reduce Medicare costs per patient. Many people don't know this but it was backed by the best machine learning company in the world, Google. Alphabet Backed Medicare Startup Clover Health Raises $500M. They do this using the Clover assistant, which has a growing penetration rate among physicians aims to save the government lots of doll hairs. This will open more doors for CLOV.
- Medicare Expansion Sleepy Joe Biden and would love to lower the Medicare age to 60. Why? I don't fucking know. Because more free healthcare is cool now I guess. JoeBiden.com Health Insurance Plan This kind of policy would increase the total addressable market share immediately for a company like CLOV.
- Management Team/Stock Lockup: The CEO, executives and investors have most of their interest in the company tied to the stock. The CEO does not receive a salary and insiders cannot sell until CLOV reaches an average share price of $30 for a 90 day period. We're not going to have a mass insider selloff ala' Palantir. Lee Shapiro who sits on the board was a former CFO of Livongo/Teledoc while Chelsea Clinton is also a board member. If we know anything about the Clinton's, it's that they get their money and have plenty of government influence.
So in a nutshell, you've got too many positive catalysts for all the suits on Wall Street to be betting against this future disruptor. Way too many, in my smooth brained opinion. They got caught with their pants down this week but the short position remains higher than ever. I think it's an undervalued stock with tremendous growth potential.
It's late now and I ate too many crayons today so I'm going to bed. I' am not a financial advisor but I do own own 14,000 shares of CLOV. Other more intelligible DD's can be found here, here, and here:
TL:DR CLOV is unequivocally the best in breed short candidate on the market today as it has a number of growth catalysts ahead. Unlike other options, it does not need more cash or a business restructuring to be successful. This thing is a kettle pot ready to explode. Consider boarding this train before it leaves the station.
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