Lemon- Needs Aid!

[EugeneM]

So management is incompetent.

After all, everything above the IPO price of $29 went to investors, not the company. Sounds like they could have priced their shares 2x what they did. They left $1.5 billion on the table.

Best IPO of the year but incompetent lol... love this bahaha

The surge in stock price was driven by retail investors dumping into it for whatever reason. You don't include that in a valuation...

Personally I am so happy for LMND - Softbank needed a win bad. They made some really bad investments lost so many billions its sad.

 

[Tahoe Ray]

Best IPO of the year but incompetent lol... love this bahaha

I understand all of what you said but you know that I'm right.

The whole insurance "disrupter" category is mainly BS and yet VCs throw money at these companies like they're reinvented the wheel.

 

[EugeneM]

I think they dumped into it because it looks a lot safer than 99% of other stocks. Just my 2 cents. Check this clip out from Lemonades CEO of my linkedin. Message from CEO to their first customer



I would totally go have drinks with them if I was their first customer

 

[Markthebroker]

So management is incompetent.

After all, everything above the IPO price of $29 went to investors, not the company. Sounds like they could have priced their shares 2x what they did. They left $1.5 billion on the table.

Unless of course the managers own stock, and are compensated based on stock performance, which they likely are.

 

[tikibarrister]

Unless of course the managers own stock, and are compensated based on stock performance, which they likely are.

Doesn't matter.

Price it at $29, company gets $1.6 bn, investors get $1.6 bn + future appreciation

Price it at $58, company gets $3.2bn, investors get future appreciation

Either way, CEO's stock holdings are valued the same.

 

[Tahoe Ray]

Doesn't matter.

Price it at $29, company gets $1.6 bn, investors get $1.6 bn + future appreciation

Price it at $58, company gets $3.2bn, investors get future appreciation

Either way, CEO's stock holdings are valued the same.

Yes. But the investment banks drive the valuation...not inept management from Lemonade.

The owners get rich either way since they are also huge investors (shareholders).

IPOs are constantly underpriced (although this one is extreme). Management laughs all the way to the bank either way.

 

[Tahoe Ray]

I think they dumped into it because it looks a lot safer than 99% of other stocks.

$TSLA 2000? No?

 

[EugeneM]

$TSLA 2000? No?

One of their biggest holders says PT 5k within 5 years. I believe it...