For those who have been following us, we made a 29x return during the short squeeze several years ago. Since then, we exited and decided to not look at it ever again until recently. Why? It’s up 100% in one month and their former CEO just invested $1 million to acquire more stocks. Also, he made a very promising comment to his employees so it made us re-examine $CLOV once more.
Here is the current development
- Vivek just bought $1 million shares totaling 531,700 shares. He now has 1,409,267 shares.
- Profitable now for the first time. GAAP net income of $7.4 million compared to a net loss of $28.8 million.
- Clover AI Assistant is one of the best (if not the best in Medicare Advantage market) and now available for all Medicare Advantage market and generate new revenue streams for $CLOV
- AI Assistant has accelerated their path to profitability and this alone makes $CLOV an attractive target in M&A
- $CLOV getting recognition for their AI capability
Not just these but more institutional buyers are investing in them.
- Citadel ownership went up by 48x
- Jane Street doubled their holdings
- And still digging through the filings to get more
So what are we doing? We just made a big bet that $CLOV will continue to march higher and someone is going to try to acquire them and/or investors are going to see the higher P/E potential of their AI Assistant and going to value $CLOV at much higher multiples.
Again, do your own DD before making any investment decisions. Happy Trading! And we will be back soon.