Consider Hims & Hers Health (HIMS), a digital health platform viewed as undervalued as the market overlooks its expansion beyond weight loss into new treatments for testosterone and menopause. Oddity Tech (ODD) is an AI-driven beauty company with exceptional margins, and a key catalyst is the expected launch of its third major brand by year-end. As a fast-growing challenger to Nike, On Holding (ONON) presents an opportunity with its strong brand loyalty and an attractive valuation for its projected 36% revenue growth. For international exposure, Kaspi.kz (KSPI) is a dominant Kazakhstani "super app" trading at a very low valuation as it expands into Turkey. Finally, The Real Brokerage (REAX) is a high-growth, asset-light real estate brokerage gaining market share, offering a compelling way to invest in a potential housing market recovery.

On Holding AG (ONON)

• Business: A founder-led, Swiss-based company that makes high-performance, expensive running shoes. It is considered a trendy brand with a dedicated following.
• Market Position: The speaker positions On as a challenger to Nike, noting that its popular stores may be contributing to Nike's recent troubles. The company is also attempting to expand into apparel, though the success of this is uncertain.
• Valuation: The stock is noted as having gotten cheaper and is now trading at an attractive valuation based on the speaker's metrics.
  • EV over GP over RG: 0.18 (The speaker finds this "too cheap").
  • Forward Revenue Growth: Predicted at 36%.
  • Gross Margin: 61% (excellent for a manufacturing company).
  • EBITDA Margin: 12% (profitable).
  • Rule of 40: 48 (a measure combining growth and profitability, where over 40 is considered very good).

Takeaways

• On Holding is presented as a high-growth, profitable company in the premium athletic apparel space that is currently trading at a compelling valuation.
• The core investment question is whether an investor is comfortable betting on a challenger brand in a market dominated by giants like Nike.
• The company's strong brand loyalty and high margins are key strengths.

Oddity Tech Ltd. (ODD)

• Business: A direct-to-consumer cosmetics company that uses AI to create customized products, such as its Il Maquillage foundation. The speaker owns this stock.
• Strategy: The company operates a platform called Oddity Labs with the goal of building four separate billion-dollar brands. It currently has two fast-growing brands, Il Maquillage and Spoiled Child (an anti-aging/skincare line).
• Sales Model: Oddity sells exclusively online and is highly effective at using social media to market its "shiny," social-media-friendly products, which the speaker compares to Celsius. This connects them well with younger generations.
• Catalyst: A third brand, described as a "medical-grade skincare business," is expected to be announced by the end of the year.
• Valuation: The speaker highlights that it is cheaper than its competitor, Elf, and has very strong financial metrics.
  • EV over GP over RG: 0.23.
  • Forward Revenue Growth: Predicted at 26%.
  • Gross Margin: 72% (very high for a physical product).
  • EBITDA Margin: 29% (very high).
  • Rule of 40: 55.

Takeaways

• Oddity is a modern, direct-to-consumer beauty company with a unique AI-driven approach and a proven ability to build brands through social media.
• The business has a recurring revenue component as customers return to buy its customized products.
• The stock is considered cheap relative to its high growth, exceptional margins, and strong profitability. The upcoming launch of a third brand could be a significant growth driver.

Hims & Hers Health, Inc. (HIMS)

• Business: The speaker, a long-term investor, describes HIMS not as a GLP-1 weight loss company, but as a comprehensive digital health platform. It combines an "e-doctor" network with a "customized e-pharmacy."
• Model: HIMS operates on a direct-to-consumer, cash-pay basis, completely avoiding the complexity of insurance. The goal is to provide common health solutions for less than the average American's annual co-pays.
• Growth Areas: The company is moving beyond its initial offerings and GLP-1s. It recently launched testosterone treatments and is planning to launch a menopause line soon.
• Stock Volatility: The stock is described as a "trader favorite" and can be very volatile. A recent 9% drop on news of a COO departure was dismissed by the speaker as "nothing news," emphasizing that the company's revenue trend is consistently upward.
• Valuation: The stock is considered "still very cheap" despite its recent run-up.
  • EV over GP over RG: 0.16.
  • Forward Revenue Growth: Predicted at 47%.
  • Gross Margin: 76%.
  • EBITDA Margin: 8%.
  • Rule of 40: 55.

Takeaways

• The investment thesis is that the market misunderstands HIMS as a simple weight-loss drug seller, while it is actually a disruptive digital health platform with multiple avenues for growth.
• Its insurance-free model allows for speed, lower costs, and a better user experience.
• Expansion into large new markets like testosterone and menopause treatment provides clear future growth catalysts. The valuation is seen as highly attractive for its growth profile.

LifeMD, Inc. (LFMD)

• Business: Positioned as a "mini HIMS," LifeMD is a smaller digital health company. It recently launched its own remote pharmacy to become more vertically integrated, similar to HIMS.
• Key Difference from HIMS: Unlike HIMS, LifeMD attempts to work with patient insurance to cover medication costs. This strategy has had limited success with GLP-1s, as many insurers refuse to cover weight loss treatments.
• Offerings: A key product is a $19/month subscription for unlimited virtual doctor access, which the speaker finds "extremely compelling." It also owns a HIMS copycat brand called RexMD.
• Financials: The company's overall growth rate is weighed down by a flat-growth business called WorkSimply, which accounts for 30% of the company and is currently for sale. Without it, LifeMD's growth would be more in line with HIMS.
• Strategy: Like HIMS, LifeMD is expanding into women's health and plans to launch a menopause treatment line.

Takeaways

• LifeMD is an under-the-radar, smaller alternative to HIMS in the digital health space.
• Its growth story is complicated by the WorkSimply division; a potential sale of this unit could unlock a higher perceived growth rate for the core business.
• The company's reliance on insurance reimbursement is a key strategic difference and potential risk compared to HIMS's direct-pay model.

Kaspi.kz (KSPI)

• Business: Kaspi is the dominant "super app" of Kazakhstan, with a near-monopoly in e-commerce, payments, credit, and even government services (like car registration).
• Expansion: The company is using its large cash flow to expand into Turkey, a market four times larger than Kazakhstan. It has acquired a top e-commerce site and a bank there to replicate its super app model.
• Stock Performance: The stock is down 24% over the past year because the market is skeptical of large acquisitions. The company also cut its previous 8% dividend to fund this growth, which the speaker prefers.
• Valuation: The speaker was initially attracted to the stock because it is extremely cheap and highly profitable.
  • EV over GP over RG: 0.15.
  • Revenue Growth: 22%.
  • Gross Margin: 79%.
  • EBITDA Margin: 67% (The speaker emphasizes this is "not a typo").
  • Rule of 40: 89.

Takeaways

• Kaspi is a "cash machine" with a dominant market position that is trading at a very low valuation.
• The investment thesis is a bet on the company's ability to successfully expand its proven model into the much larger Turkish market.
• The stock is currently out of favor due to its expansion strategy, which could present a buying opportunity for investors who believe in the long-term growth plan.

The Real Brokerage Inc. (REAX)

• Business: An app-based, asset-light real estate brokerage. Its model is designed to attract top-performing agents away from traditional firms like Keller Williams and Century 21 with a more favorable fee structure.
• Market Position: The speaker notes that REAX is "relatively undiscovered." It has managed to grow rapidly during a major downturn in real estate transaction volume, which proves it is successfully gaining market share.
• Investment Thesis: This is a play on a potential recovery in the real estate market as interest rates come down. The speaker prefers its capital-light model over capital-intensive models like Open Door.
• Valuation: The stock is considered very cheap, which compensates for the low margins typical of the real estate industry.
  • EV over GP over RG: 0.11.
  • Forward Revenue Growth: Predicted at 50%.
  • EBITDA Margin: 3%.
  • Rule of 40: 53.

Takeaways

• REAX is a high-growth, disruptive player in the real estate brokerage industry that is gaining significant market share.
• Its asset-light model makes it a potentially safer way to invest in a real estate recovery compared to companies that buy and sell homes directly.
• The valuation is very low, reflecting the low-margin nature of the business, but its high growth rate makes it compelling.

Delcath Systems, Inc. (DCTH)

• Business: A biotech company with a unique, FDA-approved treatment for uveal melanoma, a rare cancer that metastasizes to the liver. The speaker owns this stock.
• Product: Its system isolates the liver to deliver a targeted, high-dose chemotherapy treatment. It is the only option for the 55% of patients who cannot use the main competing drug, ChemTrack.
• Market: The patient pool is very small (800-1,000 people), so the treatment is extremely expensive at $768,000.
• Risks: The speaker highlights two major risks:
  1. Slow Adoption: Oncologists are often hesitant to use new, expensive treatments as a first line of defense.
  2. Reimbursement Risk: The entire business model depends on reimbursement from Medicare/CMS. A change in government policy or billing codes could destroy the company's revenue stream. This is the primary reason the stock is so cheap.
• Valuation: The stock is described as extraordinarily cheap, potentially one of the top five cheapest in the speaker's spreadsheet.
  • EV over GP over RG: 0.04.
  • Forward Revenue Growth: Predicted at 120%.
  • EBITDA Margin: 40%.
  • Rule of 40: 160.

Takeaways

• Delcath is a very high-risk, potentially high-reward investment in the biotech sector.
• It has a monopoly product for a specific niche in cancer treatment, but its success is heavily dependent on navigating the complex and uncertain world of medical reimbursement.
• The extremely low valuation reflects the significant risks involved, but the upside could be substantial if the company executes and its delivery system finds applications for more common cancers in the future.