Ehealth , a competitor, made a great run in 2018 without any covid-19 around, and the sector (ex-benefytt) quotes at 7x the multiple EV /sales.
Benefytt quotes at 2x, and we are in 2020 with corona spreading out, meaning that wecan see a similar run by the end of the year that can start anytime soon. They suffered in 2019 because of 3 acquisitions they made to eat competition, but they are DEEPLY undervalued in my opinion.
Forget about technicals now (even if there is a positive divergence in the ): we are around a local minimum, and the stock is not affected by general market condition. If it is, with virus going everywhere, it will be in a positive way.
The fall of few days ago was caused by general panic, nothing to do with the company itself. As for the dividends idea, market sometimes takes a while to figure out things, especially in these two weeks where everything happened so fast. It needs to reassess, and when it will, BFYT could go to 60 at least. I have been conservative on mutliple comparison, actually in thebest scenario in could do 4x, but we will keep this target as secondary one. Let's go to 60 first, then we I'll see how to adjust.
Here is what I will do:
Buy C 40 Jan 2021 @ 300usd
If T1 is reached : 6.7x (2,000 usd vs 300usd paid for each option)
If T2 is reached it wil be more than 10x with a single, but clever trade.