Here we go yet again

Here we go yet again

We’ve said it before but given recent events we must say it again – Insanity is doing the exact same behavior and expecting a different result. We were reminded of this when we read a press release from LabStyle Innovations (NASDAQ: DIRO) which had the following headline;

“LabStyle Innovations Announces Uplisting to NASDAQ and Capital Raise of $8.5 Million”

Now just in case anyone has forgotten LabStyle makes the MyDario which just in case anyone has forgotten is a glucose meter which .. wait for it … sends readings to …wait for it .. the cloud and comes with a way cool whiz bang …. wait for it …app.  Now never mind that the MyDario is just one of many glucose meters which are clouded enabled that come with a way cool whiz bang app, what’s amazing is they have the ability to raise $8.5 million. Well this really isn’t that amazing as this is after all the wacky world of diabetes and as has been said so often it’s easier to steal millions with a good PowerPoint presentation than it is with a gun.

Yet this news got us thinking – hey it happens sometimes – have we learned nothing from the past. Years ago Diabetic Investor, way back in the day when we didn’t have gray hairs and our children still listened to us – we warned that the glucose monitoring was becoming a commodity market. That if companies in the market did not innovate or differentiate their products they risked becoming a commodity. Since we’re too lazy to look in the archives, hey it’s Saturday, back then there were some 40+ glucose monitors on the market, all of which did the same thing the same way.

Needless to say, like our children, these companies did not listen to us and what happened – yep BGM became a commodity market. Well my friends here we go again only this time it’s way cool whiz bang monitors which send readings to the cloud where…do we really need to go on here.

Not convinced, perhaps you work at Sanofi (NYSE: SNY) and are diabetes challenged or maybe you support Donald Trump for President and ae in serious need of therapy, but take a look

Livongo

TelCare

OneDrop

iHealth

OneTouch

Accu-Chek

Trividia (formerly Nipro Diagnostics)

Bayer

Abbott

All of these companies and yes we know there are more but like we said it’s a Saturday and we just don’t feel like doing the research – have a cloud enabled whiz bang well you know. And just as back in the day when everyone claimed that their systems were really different we’re hearing the exact same thing from all this new whiz bang .. whatever. What’s even worse today is that all of these companies are targeting exactly the same customers, insulin using patients.

Listen we knew that the IDM world (and if you don’t know what IDM stands for by now you are qualified to run either Sanofi diabetes division or Abbott’s) would become a commodity market we just are surprised how fast this has happened. And let’s not forget all the meters that aren’t cloud enabled, yes such meters still exist, but have become cloud enabled thanks to companies like Glooko. So not only are these newer whiz bang monitors, and we’ve got to come up with a better phrase than whiz bang …. but we digress, competing against other whiz bang monitors they also must compete against older meters which have been converted to whiz bang. And seriously folks help us out here and let’s come up with something else besides whiz bang.

Let’s be clear here we are in no way blaming LabStyle for taking investors’ money, heck if these people ae stupid enough to invest they frankly deserve to be fleeced like sheep. Hey we’ve been doing this a long time and yes there was a time when we felt sorry for anyone who invested in non-invasive companies but this became such a common occurrence it dawned on us that there are lots of stupid people in this world and better just to accept this fact. Well the same thing is happening in the IDM space which really should stand for Idiots Destine to Misbehave.

Now we would say that we are surprised but we are not, after all Donald Trump a blowhard narcissist is about to get become the Republican nomine for President. That he could actually become President of the United States of America, think about that for a moment and let that sink in. And then think this is not a joke this actually happening right this very moment and no you are not just having a nightmare. But again we digress.

As everyone knows Momma Kliff is very wise and although not an expert in the wacky world her insights are priceless but even Momma Kliff would be astonished with what’s going on in the IDM world. Now one just might think that these companies would run out of sheep that can be fleeced. That eventually these extraordinarily stupid people would do just a little research. But g-d bless investment bankers as they continue to bring pigs to the slaughter house. That in order to bring home the bacon and earn their fat fees the fastest way is to raise capital for an IDM company.

Heck the ultimate company would be a non-invasive IDM system; given the current environment this would be what they are now calling a unicorn.  You know a completely worthless company which has valuation of $1 billion or more.

To help us understand all this craziness Diabetic Investor brought to together a panel of distinguished experts, Stanley, Honey, Storm and Chase. As a group they like us could not fathom what the heck was going but then again this a group that is content to work for a good treat or candy (and no it does not have to be sugar free).

So rather obese over these continuing examples of stupidity let’s enjoy the weekend. Or as Momma Kliff used to say better not to question why people do very stupid things just be thankfully G-d invented alcohol.