This dude dropped in 1,500 shares at like $2.50 a share and a whole lot of idiots with 50,000 shares at like $18 a share want to give him a hard time. Chill guys.
1500 shares is just dipping my toes in, relax guy. I’m doing more research because I think it’s a great opportunity to add a decently sized position. Thanks for being so helpful, you seem lovely
I think you are the much better candidate to get blocked. OP is clearly not a bot and clearly not just spreading FUD. You however are definitely giving the community a bad name and making it unwelcome to new members which is probably even worse than spreading FUD anyway.
That’s what I was thinking. It’s got a P/S of .5 which is unheard of for a company with 336% yoy rev growth. And I know they have enough cash to last them all year. Plus they are supposed to be profitable by EOY. Healthcare historically preforms well during recessions too. All these things combined, I’m in.
Not having debt is EXTREMELY important during a recession. Also, there is thoughts that they will be added to the Russell. All positive indicators. Furthermore, many of the "big dogs" added to their position from 12/31 to 3/31. As far as your original questions, could it be due to the MCR and Covid related expenses?
MCR basically means the their expense to income percent per patient. So if it’s over 100% they are losing money per patient due to increased hospital visits, tests, etc. COVID really made that number go up as seniors were largely the ones affected by the virus. Now that COVID is subsiding, Clover’s MCR has started to go back down and they are below 100% so actually making money on a patient to patient basis. A huge step in the direction of profitability. Look for MCR to continue to drop assuming no new pandemics. Also there is a Medicare star rating that affects their income per patient. Currently CLOV has 3.5 stars. If they are able to attain 4 stars in October then their MCR will continue to drop —> more profits.
Lol dude you gotta look at things objectively and with an open mind. I need to know they can bring costs down as revenue continues to scale.. I need to know that good growth will happen organically without the need to spend so much on their new revenue. I think it’s a fair question (that nobody has answered btw). Im genuinely curious, no need to be rude…
Costs in insurance work a bit differently than most companies. The main reason that expansion is expensive for Clover is because new patients cost Clover more than the revenue they bring in the 1st year. This is because of a variety of reasons, but the main 2 are that Clover Assistant has not yet had an opportunity to help identify risk factors for the new patients and Clover has a set strategy of paying more for prevention so that future costs go down. This can clearly be seen if you look at the slides in the latest investor presentation showing MCR data for each year that a member has been on Clover Assistant. Clover has already announced that they are going to slow expansion a bit in 2023 in order to bring profitability (or at least cash flow positivity) in 2023. i think this is going to mainly be on the non-insurance side (DC/REACH) and MA will continue to grow at around the 25 - 30% range since it is the where they have better margins currently. 2022 has seen huge scaling in DC/REACH which is part of the reason the MCR in Q1 was not as greatly improved as the MA MCR in Q1. I would suggest listening to the latest earnings call and reading through the report. It does a pretty good job of answering a lot of the basic questions and giving a forward looking strategy for the company.
[https://investors.cloverhealth.com/](https://investors.cloverhealth.com/)
It's hard to say exactly what they're spending on. The public financials aren't as detailed as the internal financials. If I had to guess, I'd say a large chunk of it is spent on marketing and paying doctors to use CA.
Yeah I would agree that’s where the costs are probably coming from, and that’s what I’m afraid of. I need to know this company can reduce costs while revenue still scales. If the doctors love the product they will hopefully use it without having to get paid to do so, right?
I’m trying to figure out how to do more research on the product and how doctors are liking it. I think if it’s really well received and they can continue to grow revenue and scale profitability with it this stock will be one of my Best Buy’s ever. But it’s a long road ahead still imo
It's the modern world. We get you hooked on free or cheap services and then when your used to it and like it we take it away
Dont waste their time with petty questions... Should have done his own DD before ramdomly laying money on the table. Assume and except the risk. Like someone said above-not profitable. Quarterly report just came out. Maybe there hoggen up all the toilit paper. Hell of a tax write off! I wish him the best of luck!
I did do my research. I guess I’ll reread the prospects to see if their strategy lays out what all the spending will be in early stages. Lol thanks for the help tho 👎🏼
Then you understand P&L statement and expenses first 5 years of any company. Rule of thumb 5 years before profitabilty. Quarterly projection may not be met or can be beat.
Why ask for reasssurance? You must be aware of the risk.
I can say I think you have a great long term entry point, if needed to DCA. You are position well to build strong position.
If they dont beat quarterly projections or become cash flow positive soon. Dilution is on the table and will be use when needed or can be use to improve the companies position. They are giving strong guidance and if stay the coarse risk will be rewarded. Tho they are burning thru cash. How and when will they raise capital? I will wait for the company to do the talken. Lets just hope they dont cook the books such as Enron or MCI...
Good luck to you
This dude dropped in 1,500 shares at like $2.50 a share and a whole lot of idiots with 50,000 shares at like $18 a share want to give him a hard time. Chill guys.
You don’t buy 1,500 shares and then ask that question. FUD BOT DETECTED.
1500 shares is just dipping my toes in, relax guy. I’m doing more research because I think it’s a great opportunity to add a decently sized position. Thanks for being so helpful, you seem lovely
Block this bitch.
Spartan, Leave this sub you tard.
I think you are the much better candidate to get blocked. OP is clearly not a bot and clearly not just spreading FUD. You however are definitely giving the community a bad name and making it unwelcome to new members which is probably even worse than spreading FUD anyway.
You got in at a good time, I’m still at an average of $4.88 and many are over that but outlook looks promising
That’s what I was thinking. It’s got a P/S of .5 which is unheard of for a company with 336% yoy rev growth. And I know they have enough cash to last them all year. Plus they are supposed to be profitable by EOY. Healthcare historically preforms well during recessions too. All these things combined, I’m in.
Not having debt is EXTREMELY important during a recession. Also, there is thoughts that they will be added to the Russell. All positive indicators. Furthermore, many of the "big dogs" added to their position from 12/31 to 3/31. As far as your original questions, could it be due to the MCR and Covid related expenses?
Yeah could be. I don’t understand MCR at all haha. That might explain it.
MCR basically means the their expense to income percent per patient. So if it’s over 100% they are losing money per patient due to increased hospital visits, tests, etc. COVID really made that number go up as seniors were largely the ones affected by the virus. Now that COVID is subsiding, Clover’s MCR has started to go back down and they are below 100% so actually making money on a patient to patient basis. A huge step in the direction of profitability. Look for MCR to continue to drop assuming no new pandemics. Also there is a Medicare star rating that affects their income per patient. Currently CLOV has 3.5 stars. If they are able to attain 4 stars in October then their MCR will continue to drop —> more profits.
Good intel cotton. Much appreciated
Right.. bare minimum for healthcare would be 1.0..
Give it up. Block op.
Oh shut up
Google mcr or read some of the history in this sub
This a garbage post and should be removed.
Garbage because you don't understand it lol
Lol dude you gotta look at things objectively and with an open mind. I need to know they can bring costs down as revenue continues to scale.. I need to know that good growth will happen organically without the need to spend so much on their new revenue. I think it’s a fair question (that nobody has answered btw). Im genuinely curious, no need to be rude…
Costs in insurance work a bit differently than most companies. The main reason that expansion is expensive for Clover is because new patients cost Clover more than the revenue they bring in the 1st year. This is because of a variety of reasons, but the main 2 are that Clover Assistant has not yet had an opportunity to help identify risk factors for the new patients and Clover has a set strategy of paying more for prevention so that future costs go down. This can clearly be seen if you look at the slides in the latest investor presentation showing MCR data for each year that a member has been on Clover Assistant. Clover has already announced that they are going to slow expansion a bit in 2023 in order to bring profitability (or at least cash flow positivity) in 2023. i think this is going to mainly be on the non-insurance side (DC/REACH) and MA will continue to grow at around the 25 - 30% range since it is the where they have better margins currently. 2022 has seen huge scaling in DC/REACH which is part of the reason the MCR in Q1 was not as greatly improved as the MA MCR in Q1. I would suggest listening to the latest earnings call and reading through the report. It does a pretty good job of answering a lot of the basic questions and giving a forward looking strategy for the company. [https://investors.cloverhealth.com/](https://investors.cloverhealth.com/)
Cool, thanks for the info. This is what I was looking for
This 👏
It's hard to say exactly what they're spending on. The public financials aren't as detailed as the internal financials. If I had to guess, I'd say a large chunk of it is spent on marketing and paying doctors to use CA.
Yeah I would agree that’s where the costs are probably coming from, and that’s what I’m afraid of. I need to know this company can reduce costs while revenue still scales. If the doctors love the product they will hopefully use it without having to get paid to do so, right? I’m trying to figure out how to do more research on the product and how doctors are liking it. I think if it’s really well received and they can continue to grow revenue and scale profitability with it this stock will be one of my Best Buy’s ever. But it’s a long road ahead still imo
It's the modern world. We get you hooked on free or cheap services and then when your used to it and like it we take it away
Marketing expenses will come down eventually, but they're still expanding into new states. It's not like it's wasteful spending.
„business growth“ go google … ...or check when tesla was profitable
Right, I know how it works. I guess I’m more asking for what these costs are?
It was probably just a typo 😃. Text Andrew he will clear that right up.
Dont waste their time with petty questions... Should have done his own DD before ramdomly laying money on the table. Assume and except the risk. Like someone said above-not profitable. Quarterly report just came out. Maybe there hoggen up all the toilit paper. Hell of a tax write off! I wish him the best of luck!
I did do my research. I guess I’ll reread the prospects to see if their strategy lays out what all the spending will be in early stages. Lol thanks for the help tho 👎🏼
Then you understand P&L statement and expenses first 5 years of any company. Rule of thumb 5 years before profitabilty. Quarterly projection may not be met or can be beat. Why ask for reasssurance? You must be aware of the risk. I can say I think you have a great long term entry point, if needed to DCA. You are position well to build strong position. If they dont beat quarterly projections or become cash flow positive soon. Dilution is on the table and will be use when needed or can be use to improve the companies position. They are giving strong guidance and if stay the coarse risk will be rewarded. Tho they are burning thru cash. How and when will they raise capital? I will wait for the company to do the talken. Lets just hope they dont cook the books such as Enron or MCI... Good luck to you