LMND 2Q23: Still an excellent short idea
Yesterday, Lemonade published their 2Q23 earnings. Markets did not like this release at all. Today, the stock finished down more than 21.6% to $17.31. On Nov 21, 2022, I published a report on Lemonade as a short idea: I explained why I have doubts that their strategy will eventually yield sufficient profitability, why I have doubts about management’s ability to succeed with their mission and (even if they do) why I think their financial planning sets them up for falling market capitalization and likely substantial dilution. Looking two to three years ahead, I saw the stock heading sub $10 if they don’t get bought out first. This implied 50% downside as the stock was trading at ~$20. To fully appreciate this 2Q23 earnings coverage, I encourage you to read that report first…
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2 months ago · 1 like · Fallacy Alarm
