CANO - a lot of chatter on acquisition - need input
Came across a twitter feed today from Walter that caught my eye on cano, this one may have been discussed earlier today but I unplugged pretty quick this morning as I had to get some work done. Looks like there might be a potential acquisition in the works based on this post and ticker was up 32.17% today and 7.43% AH. Not sure if there’s anything here but intrigued by some of the data below. Would love to get the communities thoughts on it. Last October it was trading around 2x and there’s still some contracts on the chain some specifically for 1/23 that went ITM today. I struggle to play something like this with the market ultimately headed where we all know and I think the catalyst would have to take place to push this thing higher but looks like there might be some opportunity. Doing my late night digging through the data now that the family is in bed
Also a decent amount of SI but I’m sure some of that was covered with todays volume at 23 million.
Float is at 210M total shares and 157M float, insiders have 18% which is a decent amount from my limited perspective.
Only monthlies so far on the option side but like I said at the beginning this thing was at $16+ a year ago so some of that is probably leftover which I know can always help push. Overall I don’t see a gamma or short squeeze but with a catalyst out there I may grab some cheap 1/23 lotto’s to hold with a very small investment but could pay decently. The company has had 8X revenue growth since 2018 which I feel is pretty strong but quarter over quarter this year is pretty limited. The balance sheet looks pretty weak and they’re burning a pile of cash as well from my quick glance. Current revenue around 2B and current market cap is about 4B which looks a little strong for most healthcare.
The rumor mill looks pretty strong out there and one potential suitor Humana and CVS both have plenty of cash on hand. Below are some articles as well, looks like this acquisition space is extremely active right now too.
This company got a supposed 10x of current sales, they do have a healthier balance sheet though.
I might be completely batshit crazy on this one but the deeper I dig the stronger I feel that I’m going to take a position on this of 1/23’s, will start slow but I feel like this thing could have a decent pop coming before EOY.
