Forum Topics Hims and Hers
edgescape
Added a month ago

Don't really understand Hims and Hers as much as I don't understand Hansen's Powercloud

But this stock has had a stellar run. I took this more as a momentum trade given this has a huge following on social media platforms like X and Moomoo

Not sure if others are aware of Hims and Hers here. But basically they offer popular compounded drugs at a lower cost.

Moreover, HIMS are more known for offering Compounded GLPs at lower price than the approved Wegovy and Ozempic weight loss drugs. Which appeals to the cost concious.

Sometimes going overseas is worth the work as opposed to leaving your blinkers on and looking at what is on the ASX (or the faves here at Strawman)

Or is it? Everyone loves a bear case so keep reading....

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Although I've made more than 100% (from $19!) and starting to match my AMZN holding, I'm divided whether to let go given the company is generating cash yet had a very mixed reception to its advertisement at the NFL Superbowl.

For instance, the instos shorting the stock and Big Pharma such as Novo Norodisk point out that much of their tailor-made treatments aren't FDA approved and don't have the need for putting safety labelling. However I need to do more research on this but unfortunately not many broker reports out there.

One article about it here Hims & Hers sees 650% spike in traffic following Super Bowl ad as clash over compounded GLP-1s heats up

Agree that this looks more like a "Gamestop" trade then anything else. Wondering if anyone else here is holding this silly thing.

Crazy run given this is not AI, GOLD or other tech company.

Danger Will Robinson!

But I'll give it another few months and harvest the capital gain discount. Or until FDA /Big pharma find a way to close the loophole being exploited by HIMS.

If it reaches $78 dollars, I'll sell up and put that money into another overvalued stock called Wesfarmers

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RhinoInvestor
Added a month ago

Speculative, but I think the compounded GLP-1s have still got a way to run given the supply shortages on the real stuff even for the people who really need it. I think your run up is being funded by the same types who are plumping their lips, Botoxing their foreheads and increasing their chest measurements. If they have some sooty of online prescribing contact centre (referred to as telehealth) then its an even better business model.

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edgescape
Added a month ago

@RhinoInvestor

True I agree. But at around $20 that time, the massive future cashflow, financials and tailwinds of other products outside of weight loss and hair as well as their market position in telehealth were too good to ignore. That is on top of being in the US.

And I bought this just as the CEO was selling... Try not to get your personal bias' to prevent your decision making when the market fundamentals are too good to ignore despite the customer profile or business.

Just hit $60 usd. I'll need to do further research on why this ran up hard after the Superbowl advert despite the negative press that followed. Definitely have my work cut out now to find a sell thesis.

Yet I'm sure everyone agrees this does prove you don't need to buy a penny sub $1 stock on the ASX to get a bagger or two.


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Chagsy
Added a month ago

Great pick @edgescape

i had never heard of it. The risk of legislation that destroys their compounding vertical is probably high; given they are listed in the US. There is a long history of US citizens buying prescription drugs from Canada, India or any other jurisdiction that allows parallel prescribing (NZ for example). They are beyond the reach of the US legal system. Not so HIMS.

it might not happen but ….

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Aaronfzr
Added a month ago

There was a similar industry in compounding GLP1s here in Australia, until they got raided and shut down for incredibly loose/cowboy practices.

At the time I was so surprised - there's so much potential profit here, why are these compounders working out of backyard operations and not a proper lab? Well, it seems HIMS had the same thought! Sure is a clever loophole they've scaled into

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edgescape
Added 4 weeks ago

Although I don't pay much attention to Motley Fool, they wrote a pretty good summary of Hims and Hers and the impact on Novo Nordisk

Basically the news is web traffic to the Hims Hers web site increased 5-fold since the superbowl ad

Hence the hockey stick move on the share price.

Unfortunately I have not found any broker report yet in Factiva although Morgan Stanley covers the stock.

Unlike the backyard operators here, it appears HIMS is attempting to take a more polished approach in compounding drugs when you look at some of their products and presentations.

It's unfortunate this rally happened so soon as I've only held for less than a year. I'd rather wait for the fundamentals to catch up rather than the other way round so may be forced to sell

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edgescape
Added 4 weeks ago

Looks like Morgan Stanley covers Hims and Hers in great detail. 20 page report on their research section.

The term "torrid run" seems appropriate. HIMS is now trading at a PE of 90x - I remember buying at around 30x.

Would make any holder get nervous.03128fb5b03339df7221fe428235e8bfd868c4.png

Such a good thing being a client of Morgan Stanley. I still remember buying Altium for the first time on research from Morgan Stanley and was worth every penny.

Lots of reading tonight...

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