This morning I got an email that said, “Great call ACCD!” It was from an old college friend named Pete. In 1991 we spent our junior year together in Leuven, Belgium studying beer, girls, and the meaning of life.
We rode bikes to the Trappist monastery. A brown-robed monk sworn to silence opened a great medieval door and ushered you to a stable-like bar with about six chairs and great casks of beer on the wall. This is where you can indulge in the world-famous Trappist Tripel brewed and poured by a Trappist Monk.
One of the great things about studying at Leuven is that, aside from being an Alumnus of Erasmus and the great architecture, and unlike U.S. universities, each major has an associated bar. This means if you are waxing poetic on a merry spring day, you could stop by the literature bar and drink with young coeds who would recite some lovely piece in medieval French.
Or perhaps history is your thing and you want to belly up to a good pint and talk with a professor about the Battle of Cannae – there is a history bar down the street. But of course, the best bar to ignore your homework and while away the night was in the stone basement of the Philosophy house.
There, instead of discussing the uniformed nonsense regarding the nature of humans and our place in the world, as happens in dorms across the globe, you can have slightly informed discussions of existentialism.
It was a wonderful time. The Soviet Union has just collapsed. Housing was cheap and aside from a slight downturn in 1992-93, the advent of the internet would create a job and wealth boom unseen since the Spanish discovered gold in the new world.
But I digress, Pete and I reconnected about a year and a half ago. I told him to invest in Bitcoin and MicroStrategy (MSTR) on the theory that the Bitcoin halfing would quadruple the price of the first and make the latter a 10-bagger. And so it came to pass.
More recently I told him (and Outsider Club readers) to buy ACCD. Here is the chart:
The stock jumped 105% today on the news of a buyout.
From the press release:
“Transcarent, the One Place for Health and Care, and Accolade (NASDAQ:ACCD), a leader in health advocacy, expert medical opinions, and primary care, announced that they have entered into a definitive agreement under which Transcarent will acquire Accolade for $7.03 per share in cash, which represents a total equity value of approximately $621M.”
The reason I liked Accolade was that it was an AI company in the beaten-down healthcare sector. AI makes a lot of sense in healthcare for a number of reasons including diagnostics and customer service.
Here is what Rajeev Singh, ACCD’s CEO had to say:
“Joining forces with Transcarent allows us to expand our mission of empowering people to make the best decisions for their health and wellbeing. The two companies share a focus on embracing AI and advanced technology to change the way consumers experience the healthcare system.”
There are other medical AI companies that could be bought out. About a month ago I told you about Spectral AI (MDAI) a company that was using AI to scan images of patients who may or may not need an amputation due to diabetes or substantial burns.
The current method of knowing if the limb can be saved is to take the advice of the attending doctor. No one wants to spend months or years with painful suffering only to lose the limb anyway. You can read more about it here: https://www.spectral-ai.com/
The stock has had some issues. They got a failure to comply with the listing requirement from the Nasdaq. They did finally meet the requirements and the stock went from $1 to $3.25 before selling off with the rest of the speculative stocks over the past two weeks.
I have no affiliation with the company except that I own a small amount of shares. But since I told Pete I figured I’d tell you. This looks like a good buy point as it hits the trend line.
If you are looking for a speculative AI stock that is actually creating value, look no further than Spectral AI (MDAI). It’s a buy under $2.25 and a buyout contender.
All the best,
Christian DeHaemer
Outsider Club
Called it:
https://www.outsiderclub.com/dow-theory-confirmed/
Boomer Stock:
https://www.outsiderclub.com/the-best-boomer-stock-to-buy/
Buy the Dip? :
https://www.outsiderclub.com/nuclear-is-back-baby/
