Alright, so I watched this video on Michael Burry’s portfolio, and the guy seemed excited about Michael Burry’s new position in Oscar Health stock (OSCR).
The company is growing very fast, and the fact that their market cap is $3 billion while they have a billion dollars on hand seems really positive to me.
I’m trying to find issues with the company, and so far, the biggest issue I see is that they have lost money over the last two quarters.
However, I dug deeper and looked into their free cash flow. Last year, their free cash flow was almost $1 billion. That gives them a P/FCF ratio of around 3. And since they have over a billion dollars in cash, the enterprise value-to-FCF ratio would be closer to 2. If they can sustain this, it seems like a no-brainer.
Am I missing something? Or is this an amazing investment? Has anyone looked into the company?
P.S. Here’s the video link. The guy analyzes OSCR at 6:15 if anyone’s interested:
https://www.youtube.com/watch?v=n_Ak-RA8LD0