No third option
We have to admit that we are more than dumbfounded at the incredible rise that Livongo is experiencing. Perhaps we should rephrase that as we witnessed something similar with Tandem but with Tandem there was a reasonable explanation as to why their shares went from the outhouse to the penthouse. With Livongo however there is no reasonable explanation. Therefore we have concluded this is setting up as perhaps the greatest short...
The other side
Before we take our walk through the wacky world today it’s worth mentioning that this mornings unemployment numbers came and another 2.9 million jobs lost bringing the total up to 36.5 jobs lost thanks to COVID. We continue to mention the numbers not as reminder of how bad things are economically rather the long road we have ahead of us. Each day that passes with each piece of economic news...
What this really means
Yesterday Dexcom priced their “upsized” convertible note offering to a little over a billion bucks. Originally the company was seeking a puny $850 million. Also yesterday Insulet priced their $500 million stock offering and for good measure this morning Tandem priced their $250 million of convertible senior notes. Between these offerings the Three Amigos will have collectively raised over $1.7 BILLION hence the happy dance by all the various underwriters. Going...
Why it happens
Vernon Law a professional baseball player once said; “Experience is a hard teacher because she gives the test first, the lesson afterward.” We thought about this quote when we read the earnings released today from DarioHealth. Just in case anyone isn’t familiar with the company and not sure how anyone couldn’t be as they issue press releases almost every day. Dario makes the My Dario BGM yet in an attempt to...
Unmitigated gall
To be honest we’re not sure why we continue to write about these morons at Nemaura Medical. Maybe it’s because they threatened to sick their lawyers on us, and we just can’t resist the chance to expose them for what they really are. Momma Kliff did not raise her son’s to be afraid especially when we have the facts on our side. As she said many times people with nothing...
Monday Musings
With first quarter results now in the books attention turns to how companies will handle the slow reopening of the economy. While many experts remain cautious worried that the progress that has been made can reverse itself with people going back to work the fact is many states are proceeding with reopening plans. As we have noted major changes are being made to protect the health and safety of workers...
TGIF
Before we begin today it’s time for a rant. Isn’t it time to end the use of any graphic or picture that shows an old-fashioned finger stick glucose meter or a finger with a blood drop? Seriously here we are in 2020 with CGM becoming the standard for glucose measurement and we are stilling seeing these type of graphics. Why is it that everyone person who does not have diabetes...
A Prudent Approach
Take a close look at this from the Insulet earnings announcement; “It is difficult to accurately predict the progression of COVID-19 and the extent of the resulting disruption. However, given the benefit of Insulet’s recurring revenue model, results through April, and available macro information, the Company is issuing guidance. The Company assumed that the most significant impact on new global OmniPod starts is in the second quarter. The Company has also...
The Danger Zone
Years ago before Animas was bought by JNJ the company seemed to be doing well but behind the scenes was a much different story. In a somewhat famous moment for Diabetic Investor while attending the J P Morgan conference we overheard the then CEO state she was looking to sell the company. A comment we reported, she denied and then the company was sold. After JNJ paid over $500 million for...
Now that’s entertainment
As we noted this morning the results from Livongo would likely step away from the pattern we’ve seen from everyone else and provide so much needed relief from the redundancy. Also as expected the company is taking full advantage of the mistaken belief that this crisis and its aftermath will benefit the company and not adversely impact future results. Check out this from the earnings release; “Livongo is well positioned to...