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Jul 12, 2022
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$LMND reminds me of Amazon $AMZN in their early days. Keeping Shorty Shadow aside Lemonade is disrupting a Trillion-Dollar Market. Global Insurance is huge over one trillion for just AUTO INSURANCE. The problem or market has been solved by the same old legacy insurance providers like GEICO, State Farm, All-State, Liberty Mutual, and on. These legacy providers have milked a market with little change for centuries which provides Lemonade $LMND the opportunity to disrupt at lightening speed with a digital platform AI, Machine Learnings that allows them to acquire new customers at 1/10th the cost of legacy providers. This same digital platform also allows $LMND to manage losses more efficiently thus delivering greater customer satisfaction.
Let's face it the dumb commercials on TV do nothing. This is what happens when you have no real difference in your offering. You run dumb TV commercials like that gecko of GEICO but what insurance customers really want is great service, great pricing (we all hate to pay for insurance PERIOD), and great claim management. Lemonade $LMND delivers on this entire package plus the share price has been suppressed thanks to powerful short-sellers, Hedge Funds like those that muscle Game Stop $GME (Steve Cohen, Point72 or Ken Griffith Citadel or Melvin Capital). Shorty will be squeezed like a LEMON.
Further Mr. Market has not factored in the power of bundle insurance solutions. Metromile $MILE is about to be absorbed at a very efficient price and this will allow $LMND to deliver a bundled insurance offering that will rival any insurance company. Read https://www.lemonade.com/?targetid=kwd-73049334130340%3Aloc-4101&location=91644&matchtype=e&adposition=&msclkid=f826ff062f9f144a68859dca7367bfe5