Yep FREE is better
File this under the category of we just can’t make this stuff up. It seems that stock guru Jim Cramer believes that Livongo doesn’t have any competition. According to a post on The Street web site;
“According to Jim Cramer’s most recent Real Money column, Livongo has “come of age during the pandemic. We have had them on several times and they just pre-announced better than expected earnings last week. Why? I consider Livongo a sophisticated, personal life coach for those with diabetes and with hypertension. I am sure they can add more to the platform and it is, indeed, a platform. They call their wonder platform Applied Health Signals, but I consider it a service that manages lifetime illnesses for patients, especially illnesses that we now regard as preconditions to COVID complications.”
Well now check this out from our friends at UnitedHealthcare;
“UnitedHealth Group launches a new pilot for digital health therapy for Type 2 Diabetes to nearly a quarter-million members at no additional cost to more than 230,000 employer-sponsored, fully insured UnitedHealthcare members in 27 states and Washington, D.C.
The therapy, known as Level2, helps participants gain real-time insights about their condition and, for some, successfully reduces spikes in blood sugar levels or achieves Type 2 Diabetes remission.
The pilot offers a combination of real-time glucose monitoring, lifestyle changes, and one-on-one coaching to help people stabilize blood sugar levels and flag potential COVID-19 infections”
It should be noted that the real time glucose monitoring system used by United is none other than the Dexcom G6. But wait there’s more as check this out;
“More than 230,000 UnitedHealthcare employer-sponsored, fully insured health plan participants in 27 states and Washington D.C. are now eligible for Level2 at no additional cost. Participants enrolled in some employer-sponsored health plans may earn financial incentives, including cash or gift cards, by taking actions such as consistently wearing a CGM; completing post-meal walks; interacting with an assigned coach, and following personalized recommendations. Available incentives may vary by state and health plan type/design; eligible incentives offered through Level2 may be in addition to other well-being rewards available through the participants’ health benefits.”
Now everyone should know by now that we have long been strong advocates of the use of incentives. As we have said consistently patients with diabetes need more than a pat on the back and need to have real tangible skin in the game.
As we have also said what Livongo offers is hardly unique and very easy to replicate. Add in the fact the United programs uses better technology than Livongo; CGM vs. BGM and all of sudden all the whiz bang way cool AI+AI offered by Livongo isn’t so way cool whiz bang. And just in case Cramer has forgotten this is what competition looks like.
Folks we don’t want to say we told you so, but we did. We knew it was just a matter of time before Livongo faced serious competition just as we knew this competition would go all in and offer their platform for FREE. Listen we don’t care what Livongo claims or how much hype they pile on FREE is better than any monthly per member fee.
After hitting new highs two things have happened with Livongo, shares have sold off while short interest is increasing. With a market cap of over $9 billion making an acquisition unlikely and now serious competition here and more coming our belief that this could be one of the greatest shorts of all time is just reinforced.
“Traders who can tolerate some risk could go long LVGO in the $110-$100 area if available. Risk a close below $90 for now. The $150 area is our only price target at the moment ($200 and $300 are possible targets if LVGO makes a ten-fold rally from its base),” he noted.
So let’s see who’s right here – BOOYAH!