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Clover Health Investments (NASDAQ: CLOV) is an insurance plan, sold online, that was made public through Social Capital Hedosophia II last June. Clover shares have since had a speculative favorite and, more recently, a short-term promotion goal.
CLOV shares open their doors on April 27 at $9. 22 consistent with the stock. That’s 13% less than your initial industry from $10. 50 after the end of 2020 to $16. 60.
More recently, CLOV’s inventory discovered love in r/WallStreetBets, the sub-reddit that made GameStop (NYSE: GME) notice when it was on the verge of collapse. The discussion forum promotes the slogan “as 4chan discovered a Bloomberg terminal” would have been the fourth top name discussed on April 19.
I am 66 years old, so I am eligible to purchase Medicare Advantage plans sold through Clover Health. Lately they are operating in 8 states, adding my state of residence, Georgia, and at first glance, the plans seem attractive. Walmart Health Centers (NYSE: WMT).
But according to the small distributors of Hindenburg Research, not everything is what it seems. They discovered what they call conflicts of interest, an active investigation through the Department of Justice (DoJ) into business practices, and so-called “coding” attempts. to defraud Medicare with false diagnoses. Two days after the publication of the Hindenburg report, the Securities and Exchange Commission (SEC) opened an investigation into Clover.
Unsurprisingly, short-term interest also rose to around 12. 5% at the end of March and on 16 April would have risen to 37%. Hindenburg, who took a position on the actions, followed the action and said the compression reports were exaggerated. The figures have been corrected since then.
That’s what speculators encouraged through r/WallStreetBets with Gamestop. This is what happened a decade before Bill Ackman in relation to Herbalife (NYSE: HLF). it can still be if enough buyers oppose you.
Meanwhile, new accountants have joined the SEC to bolster SPAC’s boom. They need guarantees to be treated as liabilities than as shares. They need SPAC sponsors to be as transparent as the agents organized by THEOs.
When a company is made public through a broker, the broker and control are careful not to make ambitious predictions. It’s not as simple as going through CNBC and promoting an investment, as Chamath Palihapitiya of Social Capital did. Be like this right now.
Clover sought his credibility by appointing Demetrios Kouzoukas, former deputy director of the Trump Administration’s Center for Medicare and Medicaid Services, a member of its board of administrators and audit committee, and was also General Counsel in UNH’s Medicare Division.
Maybe the Kouzoukas can calm the waters. Maybe the Walmart connection will allow Clover to make money, but without further information, I can’t make a basic call one way or another.
However, don’t hesitate to speculate on the impulse and who it belongs to what. Just keep in mind that this is what you’re doing and that you can lose your bet.
At the time of publication, Dana Blankenhorn did not own shares or participate in any of the companies mentioned in this article.
Can Clover Health’s message show that it’s more than a speculative fodder?First he gave the impression on InvestorPlace.