We have had great success in finding and identifying companies that have made 100x gains. If you want to see our list, you can check it out here. We believe that we have found that next stock in Clover Health. We expect this stock to be a 100x from its current price of $14 in the next 3-5 years.
Clover was recently taken public via SPAC by Chamath.*
Why Clover Health is a Disruptor?
Clover Health is disrupting insurance in the health care industry specifically the medicare advantage plans. Why is it important that they are disrupting medicare? We have the ageing baby boomer population that is starting to use these plans on a mass scale. There are 10,000 newly eligible Medicare beneficiaries per day. 38 million Americans are on traditional Medicare, plus another 24 who have already transitioned to Medicare Advantage plans.
Did you know that the Federal Government has spent roughly $36 billion in moving health records from paper to electronic? We have spent $36 billion of our own tax payer money, and we still do not even have a centralized database. It is insane. Clov would change this so that a medicare advantage plus patient could have all of their records on one database.
Doctors have access to a clover assistant, what is this clover assistant?
The clover assistant takes million of healthcare data points including claims, medical charts, diagnosis, and tons of other things and uses machine learning (artificial intelligence) to synthesize the data to a specific member. This allows doctors to have a personalized insights into each patient with an actionable plan that offers suggestions for medications, dosages, and tests or referrals among other things.
Clover Health Chief Technology Officer Andrew Toy worked as a product director at google. He brought a team with him from google that allows them to focus on the product and user experience.
Have they been successful?
I have a good friend named Bitcoin Bill, who would say, “Matt Allen, show me the numbers.”
Clover Health reported a $13 million profit in the third quarter, while average membership during the first nine months of 2020 rose 39% year over year to just 56,500 members.
The most important number to look at is the % gain in users. When I value tech companies, I look at their quarter to quarter growth in users. We would like to see a 40% growth each quarter.
Over the past two years, Clover Health has doubled membership without increasing operating expenses which is a huge deal for a tech startup.
What are the risks?
The most important thing to remember is that Clover Health is a small company in one of the largest most regulated areas to have a business. However, they have the backing of big names in the tech industry, and I look for them to make a big run at companies like United Health.
This is not investment advice. Please buy and sell stocks at your own discretion.
Stay Hungry, Stay Long,