In our continuing quest to provide accurate reliable information we think we have found an example of diabetes company that went public only to see its stock price crash and burn. Now we will admit we cannot find ANY company that has crashed and burned as quickly as Livongo has. Remember the company has only been publicly traded since the last week of July and we aren’t yet into October. But that didn’t stop us from looking for we do believe in the old adage that history repeats itself. So let’s take a trip down memory lane all the way back to July 2004.
Back on July 28th, 2004 another diabetes company went public with lots of hype. (By the way are we seeing a trend here with diabetes companies going public in late July with lots of hype.) Anyway this company like Livongo had all the analysts going gaga not Lady Gaga the very talented singer/actress but gaga the way analysts go gaga. So on July 28th, 2004 off it went closing that day at $70.40.
Some 50 days later the stock closed at $82.30 unlike Livongo who went public on July 25th closing at $38.09 yesterday closing at $18.69 not quite 50 trading days. So obviously these two situations aren’t exactly congruent but stay with us promise there will be a connection. Ok let’s get back to this unnamed diabetes company who hit $118.55 on September 23, 2004 – ok here is the fun part take a look at the following closing prices
Closing yesterday at $1.35.
Welcome my friends to the stock history for MannKind a company that stands a much better chance than Livongo of providing investors with a positive return on their investment. See MannKind has a real product Afrezza, which while not outstanding in terms of sales is making progress. The company as this history indicates has been to hell and back and as we have noted given the current share price and outlook isn’t a bad buy.
Unlike Livongo which is sinking once again today and is not a good buy no matter how much lower it goes. That poor dead cat continues to sit by the window waiting to be thrown so it can bounce but right now that poor dead cat continues to wait. Unlike MannKind which has a real future, we aren’t sure what the future will be for Livongo for if things continue as they are if they will have a future at all. Remember if shares continue to decline at the current rate come Thanksgiving that turkey won’t be the only dead animal in the oven.
Frankly Livongo investors should be thankfully the company is falling this far this fast and not taking the long winding roller coaster ride that MannKind has taken their shareholders on. Just our opinion but better to get this over with quickly as it does lesson the pain and allows the healing to begin. These wounded Livongo investors can then begin the grieving process and move onto their next stupid investment, perhaps one of the Dexcom wannabes or any connected pen company not named Companion.