This $4.89 Stock Has Explosive Potential

Folks, I believe this $5 stock has massive potential. This company has fundamentals that are improving faster than its stock price. It's gone from a cash-burning meme stock to a profitable AI healthcare company. It's improving margins, improving cash flow, and has a rapidly growing customer base. It is on its cleanest breakout in years, and it is still down around 70% from its 2021 highs, despite having very little dilution relatively in that time period. This company has completely turned its entire business around. I'll present my case, and I'll let you be the judge. Then at the end of the video, we've got a sponsored segment on Fort Technology, ticker symbol FRTT on the NASDAQ. This one is a bit different from the usual names. It's a 20-year-old pest control brand business that sells almost entirely through Amazon across the UK and Europe, doing more than $10 million in annual revenue, and it just stepped onto the NASDAQ this week. I'll break down the company and why you may want to put it on your radar. As always, if you're the one taking the ultimate risk, you've got to be the one doing the ultimate frisk. Always do your own due diligence on all ideas presented. Okay, let's start with the market. Markets are certainly getting a lot more anxious these days. After nine weeks of straight upward trending, well, now you're starting to see more and more red days, more and more massive swings back and forth. The way that I'm looking at this and what we talked about yesterday is that we have three very clear headwinds and really walls of worry the market has to climb. The first is the Federal Reserve and its inflation battle. The second is the chip and post IPO rotation. And the third is midterms. Each of these are enough to cause temporary large dips, aka buying opportunities. And I believe each of these is going to play out by the end of the year. In fact, I highly recommend that you watch yesterday's video, because we go into the exact dates for each of these headwinds. And you want to be prepared for when they strike. Otherwise, you're going to be like, what the hell is happening? And then at the end of the video, we actually go into the 10 reasons why, after all is said and done, we're actually heading for a very beautiful overall melt-up, a volatile but very beautiful melt-up. We go into 10 step-by-step reasons. I think this video is so important for everybody to watch. But anyways, the TLDR here is that you want to buy good assets at good prices, and you want to do that rain or shine. In a world where the central bank and the federal government are pouring massive amounts of liquidity on every little risk that appears, well, the only way to make sure that you're not left behind is by holding the right assets. Bears these days are arguing that there is no such thing as a good asset to buy. Everything is one big bubble. You must hold cash. This is the same thing as fear-mongering over a drought when a massive tsunami is about to come. Not only is that pointless, but you also need to stop and protect yourself from the damn tsunami. Build yourself a freaking boat. What is a boat? Well, it's buying good assets at good prices. That's how you protect yourself from the massive tsunami of liquidity that central bankers and the federal government and specifically the Trump administration have planned. Okay, so after a massive crazy run-up in many of our favorite semiconductor names, I'm hunting very aggressively for names that have been left behind by the bull market so far. What are some that I'm looking at? Well, for starters, I want to start with Lululemon here. LULU, ticker symbol L-U-L-U. This one has been getting a lot of headlines recently because it's a big Michael Burry position and it's one that he keeps adding to again and again. It's a massive position of his. Mr. Bearish Superman has publicly come out again and again, warning that we're in a massive stock market bubble that is very close to absolute collapse. But interestingly enough, If you're somebody thinking of buying gold or building out an underground shelter, well, apparently all you need to do is stack up on some yoga pants. What do I think about LULU? Well, for a consumer discretionary stock, it's not exactly super cheap. The average forward PE ratio in the space is about 10.5 and Lululemon is at about 10.9. Maybe analysts have undershot this one and the actual true forward PE should be much lower. But this entire space has really been struggling in the last couple of years because, number one, tariff uncertainty has really, really hurt their supply chains. And that is now getting walked back. And then there's also a situation where a lot of consumer groups just aren't spending a lot of money and Lululemon was trying to chase cheaper and cheaper end consumers, which is great. But the problem is that the lower end consumers don't have as much money to spend. Now, if you look at their strategy, they're starting to completely flip everything and they're trying to chase that high margin consumer again. And really, if you look at their numbers, they still have industry leading margins, strong cash flow. They're growing very, very beautifully overseas. And really at current pricing, I would say it's a very good value. Next, ServiceNow. So now has not been able to sustain its recovery as of late, but that's okay. This is a great buy just because markets are pooping themselves right now. Doesn't mean that this company isn't going to realize its overall potential. ServiceNow is expected to generate roughly $15.7 billion in subscription revenue this year. And despite already being one of the largest software companies in the world, it's still growing around 20% annually, which is crazy for a company this size. Most software companies would kill for that kind of growth rate at this scale. But what's impressive is their backlog. You see their current remaining performance obligations, which essentially is contracted revenue that hasn't been recognized yet, sits at roughly $12.6 billion and is growing more than 22% year over year. Total remaining performance obligations are approaching $28 billion. In other words, the company already has an enormous amount of future revenue effectively sitting in the queue. So for a lot of people that are worried about this company's future earnings, I don't think you should be worried because they've barely even gotten through all this massive backlog. Now, if you look at AI, the market's fear is that AI destroys enterprise software. We've been talking about this for a while, but ServiceNow's actual numbers show the opposite. Its flagship AI product, Now Assist, surpassed $600 million in annual contract value in 2025, exceeded $750 million by early 2026, and management believes it can surpass $1.5 billion by the end of this year. That's not a company being disrupted by AI. It's a company actually utilizing AI to make a lot more money long term. Agenic AI is actually blowing up the market potential. Before ServiceNow could only charge per user, now you could charge per task. ServiceNow is also a free cash flow machine. Margins north of 30% and in recent quarters, free cash flow margins have exceeded 40%, which I would say very humbly is juicy McJuicy. Management recently laid out a path toward more than $30 billion in annual subscription revenue by 2030. If they get anywhere close to that target, this stock will be re-rated much, much higher. I view ServiceNow as one of those obvious gimme's and one of the more attractive risk versus reward setups in the large cap blue chip area of the market today. Okay, next, before we move on to the main entree, I want to take a moment to invite you to Charlie's Playbook. As a member of my playbook, you're going to get all of my new conviction ideas hit in your inbox. First, you'll get 100 plus research reports and price forecasts a year. You'll get our famous ZipTrader 25 and Moonshot 20 list and all updates. You'll get daily morning briefings on the setups I see. You'll get my video and strategy lesson library and much, much more. And all of this gets delivered to your email inbox and is also available within our portal. For example, at 1.55 a.m. Eastern last night, before I went to sleep, I sent out this report on a specific healthcare stock with big catalysts ahead. That stock is the main entree for today's video. It was trading at about $4.29 at the time. Now it's closer to five. We're in a crazy bull market. Point is that being a member means you're going to get all of our conviction ideas first. You don't have to wait until I'm able to film and post a video on it. Anyways, if this sounds like a useful service for you, I'll put the link to that down below. So main entree, Clover Health CLOV. So for context here, back in 2021, this was one of the hottest names in the market. It rallied like crazy. It dumped and it did nothing for years. Right now, CLOV is having one of its most beautiful and consistent and clean breakouts that it's ever had. While at the same time, it's still down around 70% from its June 2021 highs. And if you look at the dilution, well, the shares outstanding haven't really increased that much relative to how much this is down. In fact, it closed 2021 at 413 million shares outstanding. And as of the last report, we're at about 533 million shares outstanding. So some dilution, but nothing crazy. A lot of the other companies in the space will go up like 10X in terms of dilution, if not more, and do a bunch of reverse splits. And then maybe one day they become profitable. But this one, very different story. And I think there's a nice opportunity here. So what is going on? Well, let's start with what CLOV actually does. So when most people hear about Clover Health, they assume it's just another health insurance company. Technically, that's true. Clover sells Medicare Advantage plans, which are private healthcare plans for seniors. But that's not really the interesting part of the story. What makes Clover different is that management has spent years building software and AI tools designed to help doctors make better decisions. The centerpiece of that is something called Clover Assistant. Think of it as kind of like a co-pilot for physicians. The platform gathers patient information from across the healthcare system and provides doctors with recommendations during appointments. The goal is simple, catch health issues earlier, improve treatment decisions, and ultimately keep patients healthier. Why does this matter? Well, because healthier patients tend to cost less money. And if Clover can consistently lower healthcare costs while maintaining quality care, they can create significant competitive advantage. In theory, everyone wins. Patients receive better care, doctors get better information, and Clover gets lower medical costs. The problem is that for years, this was mostly just a theory. We talked about this back in the day, and the issue was always that it just hadn't convinced markets that they were gonna be able to pull it off. Well, now they're starting to convince markets because it's no longer just a theory. Back in May, Clover reported its first quarter of 2026, and for the first time ever, the company posted a genuine profit under GAAP accounting standards. Now, why is that important? Well, because for years, investors were debating if Clover would ever become profitable. Now they're discussing how profitable Clover's actually going to become. It's a completely different conversation, and that's exactly why the stock is starting to get re-rated massively. And I think it's gonna be re-rated all the way back to where it was in June of 2021 because the company is no longer a speculative meme stock. It's a company that's actually, actually executing. Revenue jumped 62% year over year. Membership grew 51%. The company generated roughly $27 million in profit. And most importantly, Clover ended the quarter with over $400 million in cash and zero debt. That's a dramatically different picture than the one investors were looking at just a few years ago. And this is why I believe Clover is sitting at a very nice and beautiful and dare I say, juicy inflection point. Next, I wanna talk about counterpart health, which is a hidden opportunity within the Clover system. So remember the Clover assistant we were just talking about a little bit ago. Well, Clover is now taking that technology and selling it to other healthcare organizations. And this matters for one very simple reason. Software is a much better business than health insurance. Insurance is notoriously difficult. The margins are thin. Costs are unpredictable. Competition is insane. There's vigilantes that are going after health insurance CEOs. Very rough business. Software though, very different. Once you built the product, selling additional copies costs very little. And then all of a sudden you start getting massive margin. Right now, Clover has very little margins because it's still largely health insurance based. However, I think that as the revenue starts coming more and more from this software, the overall margins are gonna look more and more juicy. And that's going to continue to re-rate the stock all the way back up to where we were at in 2021 and beyond. And there are some encouraging signs. The platform has produced strong outcomes for physicians. The company has partnered with major organizations, including Google and Duke. And Clover's healthcare quality ratings have improved substantially. So here's the key point here. The market is giving Clover basically no credit or counterpart for Clover Assistant for anything in regards to the software. But the software is one of the base cases for really growing this company over the coming years. You have a solid insurance company that's executing well, but you now have this software that can create a lot of extra margin and revenue for this company. Now, five reasons I believe Clover will continue heading higher. Number one, the profitability story has arrived. Again, for years, investors were waiting for proof. Now they have it. The company has demonstrated it can generate real profits and management expects its first profitable full year. Reason number two, membership growth rates remain exceptional. Growing revenue is great, but growing customers is even better. Membership growth north of 50% suggests Clover's winning market share and attracting new customers despite operating in a very competitive industry. Reason number three, management may be conservatively guiding. One thing that stood out during the last earnings report was how cautious management appeared. If Clover starts raising forecasts throughout the year, investors I think are going to start taking notice. Reason number four, counterpart health is still early innings. The software opportunity remains largely unpriced by the market. The first quarter where counterpart starts generating meaningful revenue could dramatically change how investors view the company. Reason number five, the market is beginning to re-evaluate the story completely, and I think that we're just at the beginning of that. Clover was viewed as this struggling insurer, this small cap that just went public via SPAC and blah, blah, blah, never going to work. All of a sudden, now you're getting a re-rating story. Today, investors are increasingly talking about AI, healthcare technology, profitability and growth. That shift in perception I think is going to continue and I think it's going to be very powerful. Now let's talk about the risks. So as of right now, software is still a small part of the business. The margins are still thin. I think they're going to improve substantially over the years because the company's overall operations are going to be more profitable, but also because that software segment can grow out a lot and software is high margin. But right now it's still early innings for that. So these are things to think about. And also I will say Clove has had a failed breakout attempt before. We've had these rally cycles and everything was looking great and Clove failed. That happened a couple of years ago. This time around, I think it's different because well, all of a sudden you have these fundamentals that are improving much faster than the stock prices. I think you could make the argument that buying today at current prices is more justified than buying at one fifth the price in 2022. But over the years, this company has built up a really beautiful business. So anyways, at the end of the day, it's a high risk small cap stock, of course, but I think it's one of the more compelling turnaround stories. Okay, now it's time for our sponsored segment. And now it's time for our sponsored segment on Fort Technology. Take your symbol FRTT. Now Fort Technology is a publicly traded e-commerce business operating in one of the steadier niches out there, Pest Control. It owns a portfolio of established pest control brands and sells them to amateur and professional customers across the United Kingdom and Europe, with the vast majority of that selling happening through Amazon. In its 2025 fiscal year, it did about $10.8 million in revenue, up roughly 10% year over year. And as of this week, it is dual listed trading on the NASDAQ under FRTT and on the TSX Venture Exchange under FORT. Think of it as a brand house for a category people buy out of necessity, built on top of Amazon's distribution. Now let's talk about the market gap, and we got to go deeper on the category because that is where the opportunity sits. So FORT plays across the major pest control segments, rodent control, insect control, damp and remedial repair, and bird prevention. And it sells them across the United Kingdom, Germany, France, Italy, and other European markets. The common thread is distribution. Roughly 93 to 98% of revenue comes through Amazon using both FBA and FBM fulfillment. The pest control category online is fragmented. A lot of small single product sellers and generic listings and not many branded portfolios built specifically for the way people actually shop on Amazon today. FORT's pitch is that it owns a stable of recognizable brands in a category people buy out of necessity, not discretion. When you have a rodent or a moth problem, you're not deliberating, you are buying. That is the gap they are going after. Branded, repeatable, needs-based, demand in a category most people would rather not think about. Well, what is their business model? Well, FORT operates as a principle, not a marketplace. That means the company takes inventory risk and sets its own pricing across its brands and channels. It is buying product, holding it, and selling it, not just collecting a listing fee. On sourcing, it runs a white label model with no exclusivity agreements. Third-party manufacturers in China, the United Kingdom, and Italy In fiscal 2025, about 47% of products were sourced from China and 53% from the UK. That is a notable shift from an all-UK base back in 2023. And the company frames that diversification as a way to balance costs, lead times, and regulatory complexity. Final assembly, packing, and outbound logistics run through two leased warehouses in the UK, one around 4,600 square feet, the other around 10,500 with a UK-based operations team. On the numbers, fiscal 2025 revenue came in at $10.8 million, up about 10% year over year. In terms of the portfolio, the portfolio is five brands. Rose Shield is the flagship and the largest brand by revenue. Rodent Control sold to both amateur and professional users with a peak season from October through January. Rose Shield was the single biggest growth driver in fiscal 2025, adding just over a million dollars in revenue. Entopest is the insect control brand. That is your warm season demand, March through September, and it contributed about a quarter of a million dollars of growth last year. Rempro covers damp, mold, and remedial repair with demand strongest in late autumn and winter. BirdGo handles humane bird prevention, spikes, netting, and deterrent kits, peaking around the spring and early summer nesting season. And the newer piece, FortPest ID, an AI mobile app launched in 2025 that identifies common household pests from a single photo and points the user toward a product or treatment path. It extends the brand from physical products into software and is available globally, and the company notes the usage data feeds back into the product development. Underneath all of that, Fort holds eight registered trademarks across the UK and EU, protecting not just those physical brands, but additional marks including ProPest, Toporama, Dr. Grogle, and Sea Heaven. Now let's talk about risks. This is a super small cap. Super small caps have liquidity issues, violent moves, and also are always prone to high dilution risk. So anyways, if you bring it all together, FortTechnology is a 20-year-old pest control brand business now dual listed on the NASDAQ and the TSX Venture Exchange doing about $10.8 million in fiscal 2025 revenue with 10% growth built on a portfolio of branded products sold mostly through Amazon across the UK and Europe with a new AI app and a planned US expansion on top. The company offers an established needs-based category with recognizable brands and a clear distribution engine. I'll put the link to the company's investor relations page down below and SEC filings as well. Make sure to do your own due diligence and come to your own conclusion. Have a great rest of your day. We'll see you next time.