To The Moon

$Clover Health Corp(CLOV)$  

Before we start, let me share abit bout this company.

Clover Health Investments, Corp. is an American health care company founded in 2014. The company provides Medicare Advantage insurance plans and operates as a direct contracting entity with the U.S. government. 

The Nasdaq is warning Clover Health, again, that it could get delisted from the exchange after its stock price fell below $1 per share for 30 consecutive days.

If it sounds like deja vu, it is. The insurtech was similarly warned this time last year, before the company reported it achieved compliance in July when its stock price finished above $1 per share for 10 straight days.

Clover Health had scheduled a shareholder's meeting announcing the company's intent to initiate a reverse stock split, but Clover regained compliance organically, so no vote took place.

The company once again has 180 days, or until Sept. 30, to regain Nasdaq compliance. Clover said it will "consider all available options to regain compliance," including reverse splitting its stock.

If Clover cannot meet the Sept. 30 deadline, the company may be able to transfer to the Nasdaq Capital Market.

Its stock price, down more than 11% over the last year, is currently selling around $0.75 per share. The company's most recent stock peak was $1.56 per share in August, tailing off dramatically since its historical highs in 2021 of around $16 per share.

CEO Andrew Toy has been bullish in recent weeks over the insurtech's future. Notably, he is optimistic the recent Medicare Advantage rate cut will be a positive for Clover, despite most other health plans voicing their outrage over the regulatory change from the Centers for Medicare & Medicaid Services.

Clover recently exited the ACO Reach program and announced a new partnership with Quartet Health to treat members suffering from serious mental illness. In its most recent earnings report, Clover posted an adjusted EBITDA loss of $19.1 million in the fourth quarter and a medical cost ratio of 81.2%.

So here comes the main topic and the question that everyone wants to know.

The question is, is this a good investment? 

The answer is no. 

In fact it is about to delist and a matter of time before it delist. It have already fall below a dollar for a long time.

Q. So why did it suddenly surge?

A. The surge in prices are due to insider buying from the company's co-founder. 

After the market close on Thursday, Clover Health filed a Form 4 with the SEC showing that co-founder and executive chair Vivek Garipalli purchased 877,567 shares of Clover Health stock at an average price of $1.14 per share.

The shares were bought on June 17 in multiple transactions at prices ranging from $1.08 to $1.17.

Q. So what is it that i would like point out from this?

A. The buyback only happened to keep the stock above a dollar to prevent it from delisting.

There is no true value or upside potential in this company.

I'm not saying that you can't profit from investing in this company. What i'm saying is, it is a big risk. You can buy the low and wait for the rocket when the hype comes. Especially from the reddit army. What you should know is, this is a meme stock. All high prices from this stock comes from hype. While the current surge is due to a buyback.

It is still going strong for awhile, because people will think that if the co-founder buys back the shares, it means the company is trustable and have potential because the co-founder buys it.

The truth is, it is only for the purpose to prevent delisting.

Don't be fooled!

Keep your eyes on the stock.

Buy the low, wait for the rocket.

Wait for the hype to die. When the stocks cooldown, Short the high, lay back and watch it crash!

And buy back again and make that bank!

With such weak volume, the stock prices will only be manipulated. 

Let the volume flow in, let the demand move the prices up, and when it cooldown. Short it without mercy. 

This is why the stock always end up below a dollar. Doing a stock split can't save it forever.

If you are going to invest it in for longterm due to all the rubbish investment gurus advice, then you are in for a RUGPULL.

These gurus already buy the low. When they pump it up. 

They stand all to gain and you all retail investors who followed will die if you are the last few buying the high.

When it crashes, your investment will be gone.

I share because I want the tiger community to make the bank together. We advice, share and take care of each other. Don't let the media influence us to make bad decisions. I know many people hop on hype and good news on media, but do you realise that the insiders already bought it before they release the news? Or when you saw that good piece of news, everyone is already camping to buy in. When the market opens, the price flies high. You buy the high and you think you are making a good investment but you are not.

Always do your own research and homework before any investments and do your technical analysis before any trade.

I wish the community success in making their wealth grow. 

Lets grow together! 

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