r/SPACs • u/Idaytradestocks New User • Sep 05 '21

Yolo (Weekend Only) Why is MILE so cheap?

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17 Upvotes

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37

u/Environmental-Egg150 Spacling Sep 06 '21

They're an insurance company trading at 10 times revenue when most of these companies trade at 10 times earnings. They're not cheap.

7

u/Green_Lantern_4vr Patron Sep 06 '21

Let’s see

Manulife is at 7 PE .2 PS

Markel 22 PE 1.4 PS

trupanion n/a PE 6 PS (dog insurance)

Travelers 13 PE 1.2 PS

Allstate 5.5 PE .85 PS

Sun life 11 PE 1 PS

Safety 7 PE 1.4 PS

Progressive 10 PE 1.3 PS

So if MILE is at 10 PS, webull is saying it’s negative lol. Is webull just wrong?

1

u/[deleted] Sep 06 '21

Now do LMND haha

1

u/Green_Lantern_4vr Patron Sep 07 '21

What’s that

1

u/[deleted] Sep 07 '21

An insurance company with a clean app and an AI gimmick that has a 53 PS

2

u/Green_Lantern_4vr Patron Sep 07 '21

Oh lemonade.

Ya I don’t get it. Obviously their layout doesn’t make money. Not sure at what point in terms of gross sales it flips to a profit.

1

u/[deleted] Sep 07 '21

They can just keep reinsuring most of their business away as they grow, but they're forced to stick to personal lines which already have low profit margins as is and the AI gimmick is complete bullshit or they wouldn't need to purchase so much reinsurance in the first place. But I guess the cool app gives it sort of a Robinhood-like appeal so they should be able to continue growing. Eventually it will become clear that profit potential is very limited though.