We recently published a list of Jim Cramer’s Latest Calls: 10 Stocks to Buy or Sell. In this article, we are going to take a look at where Lemonade, Inc. (NYSE:LMND) stands against other stocks to buy and sell highlighted in Jim Cramer’s latest calls.
Jim Cramer in a latest program on CNBC reminded viewers about the Trump playbook in the story market and said that he never believed the President would start a new trade war with China. Cramer explained that Trump’s rhetoric has been “hot” but the reality is “cool” and his much-feared tariffs against Canada and Mexico might also not realize as the new administration said it will “study” the matter.
“The president loves the stock market; he always loves to send signals that all hell is going to break loose, and when it doesn’t, well, guess what? The market flies. This rally is built on the back of tariffs, more specifically small-than-expected tariffs that could grow bigger if countries don’t play ball. It’s built on the backs of new projects like Stargate, a new AI infrastructure initiative.”
Cramer then explained in detail why he believes Biden and his government were against top companies and how it affected the market and economy. Cramer said Trump is better for stock portfolios.
“He knows business people in Silicon Valley; he knows how things work. You may like him, you may hate him, but the bottom line is, if you’re a tech titan, Trump will take your call. In fact, he’ll call you. Biden, I don’t know if he knew who they even were, and he certainly didn’t bother to call them. In the end, I think he preferred to sue them. If you own stocks, which is why you watch me, Trump’s method is a heck of a lot better for your portfolio.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Lemonade, Inc. (NYSE:LMND)
Number of Hedge Fund Investors: 16
Jim Cramer was recently asked about insurance company Lemonade, Inc. (NYSE:LMND). He said the company is losing too much money.
“Okay, Lemonade, Inc. (NYSE:LMND) stock is one of those stocks that I’m talking about this show. It’s up too much, you got to let it come down. It’s not a joke stock, but it’s losing a fortune. Companies that are losing fortunes go over your portfolio if you own them (sell, sell, sell, house of pain sounds).”
Here is what Artisan Small Cap Fund has to say about Lemonade, Inc. in their Q4 2020 investor letter:
“We also exited our investment in Lemonade. Lemonade is a digital-first insurance provider, offering both domestic and international homeowners and renters insurance. The company is disrupting its industry, having digitized the entire insurance experience—from client onboarding to claims—in order to build generational relationships with first-time insurance buyers. Using its app, the median time to receive a bindable renters insurance quote from Lemonade is less than two minutes, and the time for a homeowner’s quote is under three minutes. All claims are also filed through the Lemonade app, where a claims-specific bot can pay out applicable claims in as little as three seconds. The company’s longterm strategy is built upon acquiring customers cheaply today as they begin their adult life with the anticipation of growing future premiums as customer demands for insurance products naturally increase as they accumulate typically insured possessions—home and car purchases, travel, pets and providing coverage for beneficiaries in the event of an unforeseen death. We believe the addressable market is massive, particularly given the industry has largely resisted change, giving Lemonade a long runway to take share from weaker legacy competitors. That said, with shares appreciating above our PMV estimate, we exited our campaign.”
Overall, LMND ranks 9th on our list of stocks to buy and sell highlighted in Jim Cramer’s latest calls. While we acknowledge the potential of LMND, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LMND but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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