Lemonade inc Fib VisualizedBulls are slightly considering to enter the market after recent drop of 50%.
Sure current price is going to attract a new wave of participants.
I'm sure the pullback growth will stop at one of the downward inclined fibs.
Hold Shift and measure % growth of the expected pullback on the actual interactive idea.
Targets must coincide with intersections.
LMND trade ideas
Lemonade Inc UPDATEDI resume feeling Long-term bullish despite of another drop.
This is a company that offers homeowners and renters insurance at low premiums with instant claim handling. As the first P2P insurance, they also integrated AI into the system of the coverage and consumer interaction, making it more technologically advanced in comparison to the other companies in the same field in the long run. Therefore downtrend is not here to stay forever obviously. The lower it goes the faster the relative support zone is created.
LMND Bottomed Out?I think LMND is in a large inverse fibonacci pattern, with the lowest possible being this 618 extension. Any extension lower would put the stock into the negative, so by default, I believe the 618 is the lowest. I believe some consolidation was needed after hitting this extension because the price needed time to get around the MA on the larger time frames/MA's to flatten on the smaller time frames.. hence, the wedge we see. This week, a day candle finally cleared this wedge, and I believe we started a much smaller regular fibonacci (not inverse), that had a 786 retrace. I'm looking for a 227 extension touch of this fibonacci, and ideally, a 618 around $23. I believe the bottom of this stock (for the foreseeable future anyway), has been touched, and that the price is now in consolidation mode while working it's way up. Also, the large overall trend line from the ATH price has been cleared, and I think that is a good sign.
*Not trading advice, just personal analysis. Trade at your own risk.
Drink it down!Lemonade
Short Term
We look to Sell at 22.81 (stop at 25.17)
Preferred trade is to sell into rallies. Trades with a bearish descending triangle formation. Previous resistance located at 23.00. The medium term bias remains bullish. There is scope for mild upward pressure at the open but we look for selling interest to resist gains.
Our profit targets will be 16.20 and 15.01
Resistance: 23.00 / 30.00 / 60.00
Support: 16.20 / 10.00 / 5.00
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LMND finally ready to make some $$?A divergence is growing between smaller, high growth stocks and larger, market-moving stocks (e.g. AAPL, TSLA). Funds already largely cycled out of many smaller stocks and now the withdrawals are coming from large caps. This is the cyclical nature. This also means that there are plenty of small caps which are quite attractive at their current levels.
A quick recap on why LMND is down ~90% from it's ATH last year:
LMND had a stupidly-low gross loss premium when they IPO'd, coupled with even more ridiculous growth numbers. But, management made an oopsie by being too aggressive and not putting enough money away for claims and, given the size of the company, when the Texas freeze happened it had an outsized impact on them, running the gross loss ratio up to 120%. The ratio currently sits ~90% but needs to be b/w 70-75% for LMND to excel. It's improving, just really, really slowly.
LMND acquired MILE in an all-stock transaction, this brings a major up-sell opportunity to LMND as well as a larger market. This will undoubtedly jump start their foray into car insurance, but it comes with a big caveat: MILE, like LMKD, is also losing money hand over fist. At the end of 2021, LMND and MILE were losing a combined ~350MM/yr with a combined ~1.3B in cash (after liabilities). So they are OK in the near term, but this brings me to the final point:
LMND anticipates closing the MILE acquisition this quarter. If your maths are good like mine, that means in the next 5 weeks. Investors didn't love the acquisition, but now that its happened, there is a chance they can use that magical executive jargon and synergize , reducing redundant costs while expanding cross-sell opportunities.
LMND's growth is slowing, but it is still > 40% YoY
Ok, ok, you still think LMND is a dog with fleas. That's fine. But let's also look at the macro. The whole market has been set on fire the last few months and left to burn. But LMND has found (what appears to be) a floor in the $16-17 range, wicking down several times between March and May and getting good support to retain the $20 level even when the rest of the market has been consistently selling off.
My (very personal) take is that the shorts that moved LMND from 180 -> 20 have mostly exited the first time that LMND hit $17. The movement since then has been largely market makers who are pinning the price since overall volatility is so high (covered calls at the money are returning 5% PER WEEK for market makers).
Just today, LMND wicked the 16 month trend line, showing a build up of demand that could shoot through with a larger market movement upwards. Taking a look at the QQQ more broadly, I show that it held onto a 2 year trend line. I also think that, at least for what information is available today, stocks are over sold. While I think there is more downside to come, after seven down weeks the market will revert to its short-term mean until it gets that additional bad news.
As a purely personal opinion, LMND is ready to be bought. I have long-term conviction here in their product and in where they are heading. Even if their revenue growth continues to slow, in 2 years they'll be at ~$350MM revenue annually and the larger they get the better diversification they'll have to protect against asymmetric risk events such as the Texas Freeze. Back of the envelope math, that 350MM at a simple 5x multiple puts LMND at 1.75B, or 30% higher than where they are today. Again, IMHO, this is conservative and doesn't take into account market and up-sell growth ops from MILE.
Finally, as mentioned before, option premiums are absurd on LMND right now. Covered calls that are 10% OOTM are returning 2% per week and a great way to offset some portion of the potential downside. The hardest thing to do is to buy when everyone is scared.
LMNDEarnings coming up. Seems to be consolidating. Some good questions posted on Robinhood for earnings call; and interested in the way in which they address the questions
I do like the company. I like what they stand for, where a portion of your payments is donated. I like their idea of using AI and ML to address insurance.
How do they make money? Why is there no insider buying? It is at all time lows, even below the IPO.
I will wait to the Earnings call to play this stock.
Not financial advice. do your own dd and use your own intuition.
$lmnd reporting good earnings?A recent wedge i've noticed in lemonade stock could show that lemonade will have a rise in price around the end of February. This will likely be due to better than expected earnings but in the absolute best case scenario would be due to a tesla partnership which was sort of danced around in the last earnings call.
Lemonade Forecast!LMND is oversold - Retest of 50 day EMA - 21 week EMA is expected. This will correspond to the wave 4 target, which also happens to be the top of the channel trendline. We are in a zig-zag corrective structure which means a fifth wave to the downside is expected post retest. We are, nevertheless, in a downtrend channel!
LMND Lemonade Investment Idea Main PostLMND is at a very attractive price, it is a great idea to put it in the long term investment basket. Below we are going to discuss Fundamental analysis as technical prices can be shown on the chart.
LMND management and board:
1- Founder and CEO: Daniel Schreiber
From His Linkedin page we can see that he served in the following companies and positions before being the CEO of Lemonade:
A- Alchemedia, Inc as Co-Founder and CEO: this company been acquired by GroupM which is a Global media investment management company for WPP’s media agencies including Mindshare, MediaCom, Wavemaker, Essence. We do not have a lot of information on Alchemedia except it is a media planning & buying agency in South Korea.
The only strange indication is that this man does not sit in one country. From Korea to USA to Tel Aviv. Anyway lets continue.
B- M-SYSTEMS as a Vice President, Marketing & Business Development: This is a technology company that create and invent hardwares. Also not much dedetails about the company except their website is in Greek language. This is another indication about the person being a traveller.
C- SanDisk as Senior Vice President and General Manager of Mobile Network Operators: Now we are talking about holding a high position in a company with international brand name. He worked from 2007 to 2011 in multiple positions and responsibilities, being 4 years in such company mean that he is doing good work, there are multiple long job descriptions for positions he held in the SanDisk but I am not going to go through them all.
D- President and Board member of Powermat: Powermat Technologies Ltd. is a developer of wireless power solutions for consumers, OEM and public places. The company licenses IP, sells charging spots to public venues and the software to support their maintenance, management and consumer interaction.
E- Founder and CEO of Lemonade: Discussed.
The second guy of Lemonade is Shai Wininger, is guy is a legit person, lets go through his profile:
A- Co-Founder CPO, CTO of Mobideo Aerospace: Industrial grade analytics and control platform, connecting workforce data, machines and people.
B- Non Executive Co-Founder, Board Member of Santa Inc
Santa is the next generation of retail, a new kind of shopping experience that magically brings a personalized store to each customer’s door within minutes. The Santa app notifies users when nearby and facilitates the discovery of premium products curated from top national and global brands as well as local artisans and small businesses—spanning from fashion and home decor to toys and electronics. Customers can experience Santa’s assortment in their home with no commitment before the purchase is completed in the app. Santa is now serving residents of Frisco and Plano. To discover or download Santa, visit GetSanta.com
C- Founder of Fiverr since 2010. I do not think this company need any introduction.
This guy is a machine but I am not sure whether he going to settle in this company LMND or will also move from his position and open the next company as insurance companies really need care and continuing reputation caring.
And the third wing of Lemonade is Ty Sagalow, his profile include
Board of Advisors- Metabiota, Senior Advisor of BlockRe, CEO of Innovation Insurance Group, LLC,
He even wrote a book about founding Lemonade called The Making of Lemonade.
I will continue with Business description and insurance industry below.
Lemonade "I am shocked"Monthly in Red, Weekly in Blue and short term in Pink
I have seen so many charts but not like this, It has broken all the lows and made a new monthly Low to 40. I really want to be helpful for people who are stuck but this is just another opinion, sometimes you have to see as it is.
Where are we on this? Previously all time low was broken a couple of month before so I had to adjust to fib extension instead of retracement. Now don't take me to 100% extension because that's taking me to negative and 78% is to 14. Very bad.
What else we have? The good part, we are currently at 45 which is higher than previous low 44.11 in 2020 but will it close this month above it or below it. Very important.
Recovery structure in short term does not look promising but possibility for a fake bounce to fail. Know your levels when to get out and get in. Stop loss can be 44 or 40 depends upon the risk you can take.
In short good sign can be: Monthly candle should not make lower low and a doji is better to form a good base
and the bad sign can be: everything you see in the chart continues same way.