Hey, this is Tom and a year and a half ago I made a video talking about this stock, hymns, and hers Health Inc September 2021 I made that video and I told you that I think this stock is an opportunity. This is the video I posted. This is the data posted. It says one year ago but it's lying to you.

If you do show more, it's going to show. it's a little bit longer than that. It's September 7th 2021 So this video was posted more than a year ago, more like a year and a half ago. September 7th 2021 69 000 views which is a funny number and absolutely love the fact that it stopped at 69 000 views.

Now I have to be fair with you I did not make a 172 on the stock and I don't want to lie to you and say that I have done it because I have not I've entered the position when I made this video at eight dollars and 21 cents I've personally done 45 on the stock for the past year and a half so I'm up 45 but the stock did do 172 over the past year. The reason I've used that number and not 45 in the thumbnail is for the algorithm and the clickbait game. We all have to play this so that the algorithm actually shows our videos. So if you feel offended by that, you know, don't hate the game, hate the player.

You know what they say or vice versa I butchered that. You know what I mean right? I have to play the game. but nevertheless, You will learn some important lessons on this video. Which is how do they know the stock is going to make a ton of money? which it did for me and for many others.

Some actually did the 170 including one guy in my community who was on our last Zoom call and he spoke about how he did 160 of the stock. Now how do they know? First of all, a few caveats. Let's be fair here and let's be honest: this isn't a place for me to you know toot my own horn. So to speak week and claim here that I know every time that this is going to happen.

No, this is not the case. Do I hit it 100 of the time? No. Do I hit it eighty percent of the time? No. but to hit it 60 to 70 percent of the time.

most likely. Yes on the most important trades that I do and most important Investments that I do some of the world's best investors, they're around that 60 70 80 percent. Nobody gets it right 100 nobody gets it right Ninety percent. We all make mistakes.

In fact, I would argue here that all you need is just to be right on most of your investments. In most of your trades, 65 percent would be a terrific percentage. Now a lot of people in the comments would want to point out every single stock I got wrong. Go right ahead, have fun.

but today we're gonna use the stock that I got right so we can learn the process from it and we can apply it and make some actual money. So if you want to just hate and waste energy on being negative, go right ahead. but I prefer to actually show you positive ways to increase your wealth and make money you using my system which is now proven because it did make me 45 on this stock and in fact it had a little little sweet taste to it especially in this horrible Market It was fun to do 45 um in about a year and a half. So let's let's talk about the video.

So I purchased this stock at eight dollars and 21 cents at September 2021 when I made this video. So as you can see here on the screen I bought it right after it fell off the cliff. Let's let's run the video a little bit and then stop to show you what the system I was using here because in this video I really didn't get into the system I want to explain to you how I saw this is a Hidden Gem looks like a dove of a cliff a classic spec result but in this case this seems to be more interesting than I Initially assumed this stock actually was shown to me by one of our subscribers and the more I look into it there's 45 drop over the last six months, Seems like an opportunity. Okay, so this is what happened here, right? Check this out.

This is what happened here. So this stock let me scroll forward a little bit so we can see the actual uh, a annual chart. So when this stock Spike right here I ignored it because this was a crowded trade, this was a crowd investment. It was hyped.

Everybody was basically piling in into the stock. They took this mother lover to 25 and it was absolute Insanity So I knew to stay away from this. As it was dropping, it was dropping. It was dropping.

It dropped to around 8.20 which is right about here right about here where it dropped to eight dollars and 21 cents Right here. So when I saw this and I was basically saying to myself, well if this thing dropped to around 8.20 cents from this 25 dollar level, let's see why. Maybe there's a good reason. Maybe there isn't, You know, maybe there isn't a good reason.

In that case, there's Arbitrage to be made here. And that was the first assumption that I basically followed. Is crowd of trade gone bust, A lot of people ran away from it, and now potentially an opportunity. Potentially we have to examine the the hardcore fundamentals here, but this was the first step for me.

Okay, so all the you know, quick money ran away. Now let's see if there's an opportunity here. How good is this company at this particular price? That's the question you got to ask. How good is this company at this particular price? That's the number one question you ask yourself.

and before I do my own analysis I Always like to. So let's go forward here. obviously I was using here um another website I didn't have stock MVP back in the day now I'm using stock MVP for current stock analysis If you want to sign up for talking VP the link is going to be below I'm giving you a 50 off to use token VP for Life The code is going to be below and you can try it out for a week for free. So the link is below but here the video was made way before I had stuck.

MVP So we're using a different website. Yeah and you know it's not a problem. I Don't hate in other websites so let's take a look. Six: 1.7 billion dollars.

Okay, so I'm talking about market cap here. Now you want to pay attention here to a few things: a market cap and short interest I Don't know if I spoke here, but just hold on a second. Let me see. Um, this is a little Hefty for a company that's making only 150 million trillion 12 months was about to show you.

but I think it makes a lot of sense. So I do want to show you this article. Okay, before we go through the article I Wanna look at something here? Hold on? Perhaps here. Cliff doesn't happen.

So I remember looking at me? Okay, yeah, yeah. so the first thing I took a look here I think is the short interest I Want to show you how I looked at the short interest. It shows six and a half percent short interest. and this is the point that I was interested in looking at this stuff.

Not as bad as it seems is this little thing right here. So the short interest in this company is only 6.4 percent. Which means that at eight dollars and 21 cents, most of the market in fact, 93 of the market is not shorting this. Okay, so I said to myself, well look, this stock fell off a cliff and yet the short interest is within the boundaries of normal.

It isn't 12, 13, 15, 20 Like it. It isn't highly shorted stock, and if it isn't a highly shorted stock, maybe maybe it's actually a good deal because you never want to get into a highly super shorted stock because there's just too much downwards pressure like a 20 30 shorter stock. So that was the first point that I was like okay, interesting six and a half percent short interest. It's not obscene I'm interested.

And the second thing I took a look at here is this article right here: I Found a very interesting article still to this day I Really like this article I Want to show you what he did here which is really interesting. so um he's I think the part I'm looking for here and yeah that's the one. So this is the section I want you guys to see but I got curious It's very nice because you can't just be about balance sheets and and fundamentals and ratios and and multiples. you have to understand the business.

So this is a hymns and hers. They do some sort of a quasi Telehealth by the B2c business to customer and the they have a very loyal customer base. A lot of hair growth products male and female stuff. I Don't want to talk about here in this video but the the Telehealth of things people don't want to go to the pharmacy for.

This is really an interesting business but this is the point where I got interested because I was reading about the business here and here's what I found I See by the way shout out to Henry a really good article. So hymns and hers are actually hymns and Harry's Health Inc uh New York Stock Exchange Hims is a young company. It was founded in November 2017 so just three years ago and it took only three years for the company to make an annual revenue of 150 million. Now this is the point where I got interested I said well these guys have reached this was the point of me making that video.

This was a three-year-old company right? A four-year-old company right? I was like okay in four years in three years they got to 150 million in sales. That's not easy. that first of all shows me execution. So this company is is a is is 150 million sales within three years.

Super super excited Super Interested That shows me management knows what they're doing. If you had any sort of business experience or business consultancy experience, you'd know that getting to 150 million of Revenue within three years it's not easy. Yeah so guys I worked for 10 years as a senior manager for Deloitte and in my capacity as a team manager senior manager at Deloitte I manage teams which have among other things we have done full-ons full scope due diligence projects on acquisition targets and we we basically took apart a lot of companies and dug through the financials through the management. all that stuff.

pretty much what I'm doing here on YouTube with you guys but for people who paid me a lot more money, you guys can watch this for free. but I can tell you with 100 certainty I haven't seen a lot of companies in my in my time in Deloitte and and I've seen I've worked on some of the world's biggest deals I can't just talk about it because some of this I have Ndas for but uh it's very rare for me to to say that I've seen in my in my 10 years at the company that reached 150 million dollars in sales within three years. So as somebody who works in business, consultancy, or worked, this was really interesting to me because I know what it means. It's really impressive.

Another way to describe the impressive start would be through the cumulative number of Telehealth consultations. Well, Hymns and hers had performed over 3.4 million Telehealth consultations since its launch. This 3.4 million can be compared with Teledoc that did 2.6 million visits. So I was like okay, so these guys have done a million consultations a year more than Teledoc at this point.

a way smaller operation, way smaller company, etc etc. So I was like okay, so these guys are working, they're actually working, they're they're doing millions of of of consultations per year. They're running 150 million revenues I was like and then I looked at this uh right here I'm gonna talk about in a second I think just look at the margins 20. So he's basically saying well, that looks like a lot right to get to 2.6 million.

Now the gross profit margin which is also very interesting I'm about to share right now Went from 29 to 54 to 74. Okay, so this is the third point where I got excited I was like okay. so the gross profit basically Revenue Minus cost of goods uh, went from 29 to 54 to 74 So Within three years they improved their margins from 29 to 74. Again, this screams to me as a business consultant that management knows what they're doing.

and I couldn't agree more with the with what this article is saying. Hey, let's fast forward a little bit here. Um, okay so this is not as interesting. So this is again me going through the margins.

We already talked about the margin. Um, they were not a profitable company at this point and I'll talk about in a second that it's not like this is the perfect company. It's like you know, it's like dating whenever you look at a Tinder profile right? you younger kids who are in thinner I've never been in Tinder in my life I've been married for too long, but you know there's no perfect profile right? There's always going to be issues that you're gonna like issues you know, like. So this was not a profitable company.

but the the gross profit margin was terrific and the revenue growth was terrific and the margin was improving. so I was okay with it and I'll show you in a second why. The runway was absolutely terrific as well. I'll show in a second.

Uh so yeah. so this was the revenue growth 74 So let again I'm not I'm not gonna play the whole video. But basically I see here that Revenue growth is 74. Margin growth is going from 29 to 75 so margins are getting better, Revenue is growing 74, even the forward Revenue growth minus the pandemic already this was the forward post pandemic.

is it 60? So this was really interesting to me. I was like this is a really good company and I do want to show you I think a look at the financials here somewhere and again this is this the third part I was like okay so this stock is down 45 when I took a look at it, it was down 45 in the peak Now I did make a mistake here and I want to point out I did make a mistake here because and let's be honest here: I should have waited a little bit longer because I saw that it dropped off from 25 to 8 and I thought this is a good time to get in. It ended up dropping all the way to three and a half dollars which means I entered too soon I should have waited a little bit longer but I don't have a crystal ball and I couldn't have known that this would keep on dropping like that. so I missed the entry point I got in a little bit too early but then there was an option for me I could have run scared when I got in at eight dollars and 20 cents and this thing dropped to three and a half dollars I could have ran for the hills I could have liquidated my position say oh my God I'm so stupid I'm so dumb.

What have I done and I could just liquidate it and ran away and a lot of people have done that. A lot of people have done that. but because I had Security in my analysis because I had conviction because I knew the numbers I'm looking at are solid I knew it's only a matter of time until this stock will recover because at some point the financials the fundamentals will catch up with the price. So I was patient and I weighed it and at some point it caught up and it got back to it 0.2 dollars and I could have got out there and broken even.

But I knew it's going to keep on going up because the company is doing well and eventually it kept on going up. It kept on going up all the way to what 12 now 13? I don't even remember that I'm still staying in This stock is for me, a very interesting long-term play. Despite not having the usual mode technological advantages, they don't really have anything to kind of set up a mode for themselves except great management, great execution, and for me I Love betting on great managers and great executors. so let's keep on watching the video.

So looking at the financials right here you can see the growth. I mean it's pretty easy. Look, this is Quality Management management. Took this company from 2018 from 26 to 82 to 148 to 195..

So as I've been making the video, it was already at 195. TTM means trading 12 months so it added up the last four quarters 200 million. So from 26 200 million in what two and a half years, three years as I've been making this video, management knows what it's doing. It's screaming to me.

Great management tarnishing look. They went from 26.7 to 82.6 to 150 million, 200 million trailing 12 months so you can see the cash and cash equivalents. I'll show you so the So this is the now: I'm doing the thing that's called the balance sheet strength analysis. I'm trying to figure out how much this company is strong enough to withstand some crap.

So look at what I'm doing here: I'm looking at how much cash they have, how much assets they have, how much debt they have. Ratios are insane I'll show the problem though. So the ratios are insane. We're talking about 317 pretty much in accessible cash.

A Total Assets Three, three, Six so 330 million in assets over current liabilities, and total liabilities of 54.. So six times more assets than liabilities, six times asset solubilities, super strong balance sheet, and then extremely impressive. No debt whatsoever. Know that with 300 and change of cash, so 300 plus million of cash, no debt, and six times more assets and abilities, management knows what it's doing.

Simple over if I scroll all the way down, you see the total debt is zero so no debt. This company is really well. pause on this. Okay now I want to show you something else I've actually looked that I wasn't even satisfied back at this point I kept on digging and I was like okay, so this company has gone from 35 to 60 million dollars of revenue for a quarter, right? The quarterly earnings have gone from 35 to 60.

And now look at the selling General administrative expenses They went down from 14 to 36. So I'm looking at this and I'm saying well these guys are just keep their SG A isn't skyrocketing. Some companies they need such an amount of a client acquisition costs that SG A basically doesn't allow them to be profitable. So I was like the margin is great.

they're scaling up so just a question of time it'll be profitable. Look at cost of Revenue here. So this company sold double the product, double the product from 35 to 60. and its cost of Revenue only went up by what three percent? sorry 30 percent? I mean come on.

thirty percent growth with a with a hundred percent thirty percent growth of costs with 100 cost of growth of sales sorry I Don't know what's going on in my speech today, but you see where I'm going with this. I Was super excited to see this. Uh, and basically, is there anything else you want to take a look at the difference between the growth and the cost of Revenue because yeah, I was just talking about that. Absolutely insane.

Um, yeah. so I think that's that's just the gist of it. I Don't want to hold you guys too long, but just to recap, look some things I'll see because I worked in this industry and I've analyzed companies for a living. Something Some things normal people won't see, but anybody could have seen what I showed you here.

You don't need to be a former senior manager Deloitte to see what I just showed you on the screen which is this company: Price was down significantly. It dropped off from 25 to 8. no heavy shorting on the stock at six percent sure. Interest right margin growth from 29 to 80 Gross margin Revenue Growth 75 Revenue Growth consistently from 28 to 200 trading 12 months revenues.

Uh, for this company. So 10x revenues in three years, right? Cost of Revenue has gone up 30 in the last quarter Revenue went up. That's double itself. Know that 300 million of cash, six times more assets and liabilities and they're in a great business.

They're in telemedicine and just so you know, Healthcare is a very good business to be in and in in recessionary times and I expected. We're going to go to recessionary times because of inflation so I talked about it multiple times. So also a great industry to be in healthcare Etc et cetera Etc Just everything screaming about this: Get in I got in the stock, kept on dropping I made a mistake, got into early stock kept on dropping but because I had conviction because I knew what I was doing and I wasn't just gambling on the step, betting on basically trying to follow my way into the stock I knew what I was doing I stayed in I stayed the course I let it climb up and I let it keep climbing up and I'm still in it because I know the stock will make me money. Simple as that.

It's not complicated, it's not rocket science. If you want to learn how to analyze stocks and and actually do this thing for yourself, subscribe to the channel. I'm gonna post way more videos talking about these things because I think these things are way better than just saying oh, buy this stock or sell the stock instead of giving you fish I'm gonna teach you guys how to fish because I think that's the way to do it. Subscribe to the channel.

Make sure you stay tuned for more videos like this because it's going to be a lot more of this. and if you like this video, hit the like button, you know, share it with a friend I Really appreciate if you stayed all the way through the video comment below. Let me know. stayed all the way through I Want to see who lasted for 20 something minutes on this video Thank you so much I Love you all! Don't forget to check out stock MVP The link is going to be below.

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