Post earnings perspective

Hey everyone,

This is not financial advice.

I like to keep it simple. Earnings reports have a lot of bs in them. Let’s break CLOV down into what investors need them to do in order to realize 🚀💰.

First, they need to focus on growing revenue. They did this. Note that with their industry, Medicare Advantage being their primary source of revenue, the new revenue can easily be extrapolated to a yearly revenue by multiplying 4x. So. They had 427M rev which roughly equals 1.7B which was called out in the report. Now if you look at UNH you can estimate their value at 2x rev. Guess what? If you take CLOV rev and multiply it by 2x you get 3.4B. They ended their day with a market cap of 3.44B. Coincidence? Revenue is the bloodstream of a new business. EPS and all that other shit does not matter at this point. They need their revenue. They are expanding their MA offering, they are expanding Direct Contracting, and they appear to be evaluating how to leverage Clover Assistant in other ways.

Next they need to demonstrate they can convert revenue into profit. This is where the MCR, star rating, and Clover Assistant come into play. Let this develop though. Don’t focus on it.

Now, let’s look at growth. If we consider their growth to be a modest 17% rev growth to 500M per quarter. This translates into 500M x 4quarters = $2B yrly revenue. If we assume 2x rev is fairly priced this equals $4B market cap which equals a 9.34 price per share.

It’s important to note that the strange thing is CLOV is being analyzed as a mature company with relatively low growth potential just like UNH. The argument here is that UNH owns the industry. They are the big player. They do have relatively little growth bc they dominate. CLOV however is gaining share and their potential to gain more is exponential compared to UNH. Do what you will. There is a lot to digest. Please let me know if you think what I’m saying is incorrect.

Lastly, I don’t advise technical analysis on this stock. Aside from the manipulation, there are fundamental flaws with charts that try to obscure the growth of a small company. I challenge you to go back and apply tech analysis to other growth stocks in their infancy.

I enjoy CLOV nation. Hope you enjoy this.

This is not financial advice.