Consider Hims & Hers Health (HIMS) as a long-term investment due to its high 34% short interest, creating a significant "short squeeze" opportunity. The company is viewed as a pharmacy disruptor with a potential 10x return over the next 4-5 years, driven by new product launches and international growth. Another high-conviction opportunity is The Real Brokerage (REAX), a fast-growing digital real estate company considered undervalued with 10x potential. REAX is poised to benefit from an improving housing market, especially if expected interest rate cuts begin in September. In contrast, be cautious with Opendoor (OPEN) at its current price due to its recent massive run-up and riskier business model.

Hims & Hers Health, Inc. (HIMS)

• The speaker is very bullish on HIMS and believes the recent stock price decline is due to low summer trading volumes and a lack of immediate news, not fundamental problems with the company.
• The stock is heavily shorted, with a reported 34% short interest as of August 15th. The speaker views this as a major miscalculation by Wall Street, creating a potential for a "short squeeze" where the stock price could rise rapidly if short-sellers are forced to buy back shares.
• The speaker compares the situation to a potential Tesla-like scenario, where Wall Street was wrong about the company's disruptive potential.
• The company has a history of being "hyper, hyper choppy," with large price swings, making it a risky stock to short.
• Customer satisfaction is highlighted as a major strength, with 4.7 and 4.8 out of 5 star ratings on the Apple App Store and Google Play Store, respectively, across tens of thousands of reviews.

Takeaways

• Bullish Outlook: The speaker sees HIMS as a long-term disruptive force in the pharmacy and prescription market, with the potential to grow into a $100 billion company over the next 4-5 years, representing a potential 10x return from current levels.
• Upcoming Catalysts: Investors should watch for several potential positive developments:
  • The launch of new treatments for testosterone and menopause.
  • Growth from international expansion, aided by the Zava acquisition.
  • A potential rebound in the Erectile Dysfunction (ED) business segment.
  • A future launch of generic semaglutide in Canada in 2026 after Novo Nordisk's patent expires.
• Short Squeeze Potential: The extremely high short interest could lead to significant upward price volatility. If the company reports positive news or if the upcoming catalysts materialize, the stock could experience a rapid price increase.
• Risk Factor: The stock is described as being very volatile. Investors should be prepared for large price swings in both directions.

The Real Brokerage Inc. (REAX)

• The speaker is very bullish on REAX, owns the stock, and considers it a "gem" with 10x return potential.
• REAX is a digital real estate brokerage that is disrupting traditional brokerages by attracting top agents with a more favorable commission structure, enabled by its low-overhead, app-based business model.
• The company has demonstrated strong growth (~50% predicted forward revenue growth) even during a very tough real estate market.
• The speaker believes the company is positioned to grow exponentially as the real estate market improves.
• The stock is considered "crazy cheap," trading at an enterprise value that is less than half of its projected revenue for next year (Price to Forward Revenue < 0.5).

Takeaways

• Bullish Outlook: The primary investment thesis is that REAX is a high-growth company trading at a very low valuation. It has proven its business model in a difficult market and stands to benefit significantly from an improving real estate environment.
• Macro Catalyst: An expected cycle of interest rate cuts from the Federal Reserve, potentially starting in September, is likely to lower mortgage rates. This should unlock the real estate market and increase transaction volumes, which directly benefits REAX's business.
• Valuation Play: While the company has low gross margins (9%), its extremely low valuation means that even a small improvement in margins could have an outsized positive impact on its profitability and stock price.
• Patience Required: The speaker emphasizes that this is a long-term play. Like with HIMS, an investor may need to hold the stock for a while before the market recognizes its potential and the stock price appreciates significantly.

Opendoor Technologies Inc. (OPEN)

• The speaker is cautious about OPEN due to its recent and rapid price appreciation, noting a 10x move from $0.50 to $5.00 in a short time.
• This type of extreme price action is described as "scary" because of the high risk of a significant correction.
• OPEN's business model, which involves buying and reselling homes, is contrasted with REAX. OPEN is more dependent on rising home prices to be profitable, making it a riskier bet in an uncertain real estate market.
• The stock has a 20% short interest, which is high but significantly lower than that of HIMS.

Takeaways

• High Risk: The speaker suggests that OPEN is a much riskier investment than REAX at current levels due to its massive recent run-up and a business model that is more sensitive to the direction of home prices.
• Contrasting Bet: For investors looking for exposure to a real estate rebound, REAX is presented as a potentially safer alternative that profits from transaction volume rather than speculating on home price appreciation.

Other Mentions

• Bitcoin (BTC):
  • Mentioned in the context of a heavily shorted, unnamed Bitcoin-related stock.
  • The speaker expressed a bullish sentiment, finding it "crazy" and risky to short an asset they view as "so explosive."
• CoreMedics:
  • Mentioned briefly as another potential "gem" the speaker likes, but no further details were provided.
• Kaspi.kz (KSPI):
  • Mentioned as another interesting "gem."
  • Takeaway: While interesting, the speaker notes it may be difficult for retail investors to trade due to very low trading volume and a lack of an options market.