This $16 Stock Has CRAZY Potential

Key Concepts

• HIMS & Hers (HIMY): A telehealth platform offering a vertically integrated healthcare experience (doctor visit, prescription, pharmacy, delivery).
• GLP-1s (Semaglutide): A class of drugs (like Ozempic and Wegovy) used for weight loss, currently facing regulatory scrutiny regarding compounded versions.
• Vivo Power International (VVPR): A company pivoting to become an AI infrastructure landlord, focusing on securing electricity and land for data centers.
• Power-to-X: A concept where excess renewable energy is used to create other forms of energy or products; in Vivo Power’s case, “X” represents AI compute infrastructure.
• Hyperscalers: Companies that operate large-scale data centers and cloud computing services (e.g., Google, Microsoft, Amazon).
• Forward PS Ratio (Price-to-Sales Ratio): A valuation metric comparing a company’s stock price to its revenue.

HIMS & Hers: A Deep Dive (HIMY)

The speaker strongly advocates for HIMS & Hers (HIMY) as a compelling buy in February 2026, despite significant recent stock decline. This recommendation stems from a belief that the market is overreacting to regulatory challenges surrounding the company’s compounded semaglutide offerings, while overlooking the strength of the core business.

Historical Performance & Current Situation:

• The speaker previously recommended HIMS in November 2024 at $22/share, witnessing a nearly 3x increase to ~$65/share within six months.
• The stock has since fallen approximately 20% from that peak, and is down 77% from all-time highs, fueled by negative sentiment.
• Current trading valuation is at 1.6x forward sales, significantly below the company’s average of 4x.

Business Model & Competitive Advantage:

• HIMS & Hers operates as a vertically integrated telehealth platform, controlling the entire process from online doctor consultation to prescription fulfillment and delivery.
• This integration allows for strong margins, differentiating it from competitors who merely connect patients with external providers.
• The model is likened to a meal delivery service that manages the entire food chain, ensuring quality control and cost efficiency.
• Currently boasts 2.5 million monthly subscribers, a figure expected to grow following a recent Super Bowl advertisement reaching 130 million viewers.

The Semaglutide Controversy:

• HIMS had been successfully selling compounded semaglutide (the active ingredient in Ozempic and Wegovy) at significantly lower prices ($199-$299/month) compared to branded versions ($1,000/month).
• This was legally permissible while semaglutide was on the FDA’s drug shortage list, allowing compounding pharmacies to produce their own versions.
• The FDA has since removed semaglutide from the shortage list, and Novo Nordisk filed a patent infringement lawsuit on February 9th seeking to ban HIMS from selling compounded versions.
• The speaker argues this lawsuit is an overreaction, and doesn’t destroy the company.

Financial Performance & Growth:

• Q3 2025 revenue reached nearly $600 million, a 49% year-over-year increase.
• Subscriber growth is at 21% year-over-year.
• Net income was $16 million, with adjusted EBITDA at $78 million (up 53% year-over-year) and free cash flow at $79 million in a single quarter.
• Full-year 2025 revenue guidance is $2.3 - $2.4 billion with over $200 million in adjusted EBITDA.
• The company targets $6.5 billion in revenue and $1.3 billion in EBITDA by 2030.
• Monthly revenue per subscriber is $80, up 19% year-over-year, driven by existing users adding more services.

Key Arguments for Investment:

• Mispricing: The market is incorrectly valuing HIMS as a weight loss company, despite weight loss representing only ~30% of revenue.
• Legal Pathways: Previous court cases involving similar challenges to compounding pharmacies have resulted in dismissals, suggesting potential for HIMS to navigate the legal landscape successfully.
• Diversified Revenue: Even if the compounded semaglutide business is significantly impacted, ~70% of revenue comes from other services (skincare, hair loss, mental health, etc.). The Hers brand alone is projected to exceed $1 billion in revenue in 2026.
• Brand Moat: HIMS has built a strong brand and loyal customer base, with over 90% of revenue coming from recurring subscriptions.
• Super Bowl Impact: The recent Super Bowl ad is expected to drive new member acquisition.
• International Expansion: Acquisition of Zava expands reach into European markets.

Vivo Power International: AI Infrastructure Play (VVPR)

The speaker introduces Vivo Power International (VVPR) as a potentially lucrative investment opportunity, positioning the company as a crucial enabler of the AI revolution.

The Problem: AI’s Energy Demand:

• AI models, particularly large language models like GPT-4, require enormous amounts of electricity to train and operate.
• A single GPT-4 training run consumes the equivalent of 40,000 US households’ annual electricity usage.
• The existing US power grid is aging and insufficient to meet the rapidly growing demand from AI data centers.
• Grid connection lead times and permitting delays are significant bottlenecks.

Vivo Power’s Solution: AI Infrastructure Landlord:

• Vivo Power is pivoting from solar and electric vehicles to focus on securing electricity and land for AI data centers.
• The company aims to become a “landlord” for hyperscalers, providing the essential infrastructure they need to expand their AI capabilities.
• They are targeting sovereign nations with a need for AI compute but lacking the necessary infrastructure.

Key Deals & Assets:

• Norway: Exclusive agreement to acquire a 40+ megawatt data center powered by renewable hydro power at a cost of <3.5 cents/kWh, with potential for expansion to 80 megawatts.
• UAE: Agreement for an initial 25 megawatt data center facility with development rights for scaling.
• Finland: Acquisition of OGDC, providing economic interest in 291 megawatts of powered land expected to be grid-connected within 12 months.

Management & Advisory Team:

• CEO Kevin Chin has a track record of successful IPOs and business turnarounds.
• The company has assembled an advisory team with connections to major players in the AI and data center industries (e.g., Mubadala, Google, Microsoft, Amazon).

Risks & Considerations:

• VVPR is a small-cap company with a history of volatility.
• The strategic pivot carries inherent risks.
• The stock is speculative and requires thorough due diligence.

Conclusion

The speaker presents a compelling case for both HIMS & Hers and Vivo Power International, highlighting their respective growth potential and unique positions within their industries. HIMS is positioned as a deeply undervalued company facing temporary headwinds, while Vivo Power is presented as a high-risk, high-reward play on the burgeoning AI infrastructure market. The core message emphasizes the importance of focusing on the underlying business fundamentals rather than succumbing to short-term market sentiment. As always, the speaker stresses the importance of individual due diligence before making any investment decisions.