Truly Wacky

Truly Wacky

We’ve seen some wacky things over the past 20 plus years but perhaps none wackier than this one. This morning we received a call from one of our subscribers in Massachusetts who just so happens is $750 million richer this morning. Needless to say, we were stunned by the news, more like saddened as we really did want to win, but let’s get back on track. As it turns out this very happy person, who shall remain nameless for obvious reasons, wants to take a portion of the winnings and make some investments in the wacky world.

Even though we’re not sure this is a wise idea, let’s face it with the way things are going the supply of good investments in this wacky world are dwindling, we agreed to put in our two cents. Not surprisingly the good investments like Dexcom (NASDAQ: DXCM) stand out. And while they may not offer the upside of Dexcom Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) aren’t going away either.

We’ve also just started following a new company called IntriCon (NYSE: IIN) as they make the components for the Medtronic (NYSE: MDT) line of CGM’s. Given the demand Medtronic has and their huge installed user base waiting for CGM, IntriCon seems well positioned.

Yet when you get beyond these companies, and it should shock no one that two of them are related to CGM, things get a little dicey. Therefore, we decided to reach out to some folks we know to get their opinion. Given that these people like to remain in the background we agreed not to use their real names only nicknames. Some said it was ok to use the name of their funds, so let’s here what they had to say.

First on the list was Bad Betty from the Jewmo Fund. Known for being a bit on the wild side Bad Betty suggested Tandem (NASDAQ: TNDM) as she put it; “Listen your right about Tandem as they are on the road to oblivion. Still I suspect that before they officially implode we’ll see one more run up in the stock as this is not all that unusual. As you say all the time this is the wacky world where anything can and usually does happen even when it makes no sense. And when it comes to Tandem there are still a fair amount of people who live under the delusion that someone will come along and buy the company. So why not take a flyer.”

Next, we reached out to Chase and Storm from the Ark Fund. These two guys are also known for being a bit rambunctious as they suggested two possibilities, MyDario (NASDAQ: DRIO) and Valeritas (NASDAQ: VLRX). Like Bad Betty their reasoning was simple, no neither company has solid long-term prospects but given the wackiness going on and the money being thrown around these days why not take a chance. Like Tandem the stocks are cheap and the downside risk is well known.

From there we moved onto Gorgon from the Zola Fund. Now we should note that Gorgon is new to this wacky world but he’s no dummy. Gorgon recommended taking a somewhat different approach and going the direct route investing in OneDrop and Livongo. Like Bad Betty, Chase and Storm his reasoning was that while these companies are way over-valued because this the wacky world and because money is being thrown around with reckless abandon they too could get acquired. Like he said; “Yes I know it doesn’t make much sense but why the hell not.”

Given that Siri and Alexa are diving into the diabetes pool we decided to see what they had to say. Listen if they can help patients manage their diabetes why not expand their kindness to investment advice.

Alexa; “David so glad you asked my opinion it makes me feel good that our relationship is getting better. Listen I know this may sound off the wall but why not invest in Amazon, no it’s not a direct play in diabetes but heck they have me and frankly I’m worth it.”

Siri; “Alexa you are such a homer, everyone knows that Apple is better investment than Amazon.”

Alexa; “Hey you moron investing isn’t about today but the promise of tomorrow and besides we are not wasting money trying to develop a non-invasive continuous glucose monitor.”

Siri; “Listen you bitch stop trying to get on David’s good side, you know he likes me better and besides our stock is up over 38% this year and you guys are up only a little over 26%.”

Alexa; “That may be true but our plan for diabetes is so much better than yours and David knows it.”

Siri; “There you go again sucking up so David will like you better. It’s about time you learn that he likes me best and while he doesn’t get why we are doing what we are doing he does know the plan.”

Alexa; “Listen it doesn’t take an advanced degree to figure out what you’re doing everyone knows it’s the same thing we’re doing just in a different way. And let’s face facts Google is doing the same thing only they are handicapped as they have Sanofi (NYSE: SNY) as a partner.”

Siri; “This is one time I’m in violent agreement with you how a company as smart as Google could partner with those wine drinkers just blows my mind.”

Alexa; “See there are some things we can agree on. Have to go now David needs more Tide.”

Siri; “Me too have to help David get ready for his race on Sunday. So proud of him as he blew through his fundraising goal.”

Thanks to everyone who donated and have a great day.