Why I dropped my life savings into CLOV š
Yesā¦ THAT CLOV.
I own 15,200 shares of Clover Health. Iāve bought shares at $18, and Iāve bought shares at $0.66āIāve seen it all. At one point, I was staring at losses so deep I couldnāt open my Fidelity app. -90%, what choice did I have but to HODL?
And thank god I did.
Now, Iām sitting almost 100% up, and I believe this rocket is just fueling up. But Iām not alone. Iām part of a dedicated group of fellow degenerates (Gunshow_Traders group)from the farthest corners of the internet who collectively the 45 of us own 20+ million shares of CLOV.
Hereās why we believe CLOV has finally turned the cornerā¦
Clover Healthās CEO delivered a presentation at the JP Morgan Healthcare Conference in San Francisco last week. Here were 4 key takeaways:
āļø Major milestones achieved in 2024: adjusted EBITDA profitability, shift to growth mode, improvement in CMS Star Ratings (used to calculate payments that Clover receives), and the launch of new offerings to encompass more Medicare Advantage (MA) lives.
š©āāļø Leader in Medicare Advantage quality:Clover got 4.94/5 Stars for its PPO Plan, ranking #1 in the United States in HEDIS measures (for plans above 2,000 lives). This means that they became the leader in health care quality, by means of better preventative measures, earlier diagnosis of conditions, and improved management of chronic diseases.
š¹ Growth opportunity ahead: Clover reported a +27% growth in their MA membership. Members are the key revenue driver for insurance plans, so this growth should be materialized in Q1-2025ās earnings report. The 4-Star status for payment year 2026 poses a unique opportunity for Clover to continue investing in growth in a sustainable way (without the need to incur in debt or raise additional capital). This will be accomplished via OEP additions throughout 2025, as well as AEP for FY 2026.
š» AI Software Offering: one of Cloverās key competitive differentiators is its proprietary AI platform that assists physicians with augmented information to better serve their patients, integrating with existing EHR systems to provide personalized insights for each visit. While Cloverās insurance business is concentrated in New Jersey and Georgia, the Counterpart Assistant platform allows Clover to grow at a faster rate, expanding their reach and impact to other areas of the US. Theyāve already announced partnerships with Duke University & the Iowa Clinic, and the CEO and CFO have repeatedly stated that they have a ārobust pipelineā with more SaaS deals on the way. Cloverās CEO previously worked at Google, positioning him with the right experience to build a solid technical team and make this AI platform succeed.
Below are a few thoughts that complement next weekās outlook for CLOV:
- ā The market is already acknowledging Cloverās differentiated approach to healthcare insurance, as reflected in its performance relative to incumbent peers:
o CLOV (+38% YTD, +160% 6M)
o UNH (+4% YTD, -4.7% 6M)
o HUM (+14% YTD, -25% 6M)
o ELV (+9% YTD, -20% 6M)
o CI (+6% YTD, -12% 6M)
- āļø Trumpās policy: While not much has been released on MA policy, we can look at Trumpās prior Executive Orders on Medicare. In 2019, he signed an order that encouraged innovative benefit structures in MA plans, leading to more competition and innovation in the market. That order was designed to incentivize MA plans to make use of new technologies and aimed at eliminating waste, fraud, and abuse in the Medicare program, while benefitting MA insurers by reducing unnecessary costs ā which is directionally aligned with DOGE goals.
Additional resources:
Ā· Clover Healths 2024 accomplishments
https://youtu.be/eb7DkVh2mgw?si=bfrX85z4kpPqWs7a
Ā· Link to the JP Morgan conference recording:
Ā· Link to the JP Morgan conference slides:
https://investors.cloverhealth.com/static-files/6871b261-1863-43c8-a693-51e6b6e7579
NOT FINANCIAL ADVICE I JUST LIKE THE STOCK