Lemonade - LMND - Share Chat

Stock Discussions
42

Holding tight for now. But Sheesh.

3 Likes
43

Bull Case For Lemonade

I think it is perfect time to take a position in Lemonade.

The PS ratio of LMND is 7-8 if it is calculated using Inforce Premium. Obviously, this is against the accounting principles and gross premium is used for calculation of the PS ratio which comes at 24. But one needs to understand that Lemonade cannot grow without reinsurance and reinsurance percentage will go down as Lemonade grow. Lemonade needs reinsurance to grow.

PS ratio of 7-8 might look higher if compared against big insurance companies which usually have a PS ratio of 1-2 but LMND is growing crazily as compared to big insurance companies which are stagnant.

1 Like
44

Market is resoundingly bearish here. Any thoughts on how much further this could fall?

1 Like
45

I’ve been catching this falling knife and playing hokey kokey off and on since IPO.

The market hated their car insurance acquisition last year but see long term value over 3-5 years.

It’s being hammered like all growth stocks

2 Likes
46

Who wants a serving of sweet sweet Hopium?

47

the company is still overvalued in my opinion. Over 14x revenues and no profitability in sight.

All the insure-tech IPOs have seen huge decline in their share price

1 Like
48

As Apple is much bigger than Nokia ever was. As Netflix is much bigger than Blockbuster… etc

$lmnd has a chance to show us what a modern newly built insurance company should be.
Meanwhile trading at $1b pile of cash it has + 0.5 ARR ($419 IFP) multiple =$1.2b :laughing::man_facepalming:

imho.

capital at risk :four_leaf_clover:

49

:thinking: sometimes accounting is misleading
let’s look at the business

according to Q1’2022, $lmnd sells $419m insurance premiums annualized (aka IFP)

I think it is not bad for a company with $1b in cash, and $1.2b market cap, and 66% YoY sales growth

capital at risk :four_leaf_clover::laughing:

50

Since my post in January 2022 the share price declined by an additional 48%

But yes Accounting can be misleading :joy:

51

Today is one of those days when you think, should I have kept that stock? Then you realise you sold for more than 50% of the post bump price.

After the closing bell on Wednesday, Lemonade reported a third-quarter loss of 88 cents a share amid a 55% jump in revenue to $114.5 million.

1 Like