I was born on 6 August 1956 in San Francisco, California to Janet and (the late) Richard Hovis.
I grew up in Santa Monica, California where I attended elementary, junior high school, and high school (graduating in 1974), in addition to involvement in sports and recreation (Little League +, the Boy’s Club ++). Further, it was in elementary school – St. Augustine’s By-the -Sea Parish School that I found, and made the choice to truly journey with God.
I attended Arizona State University from 1974 to 1977 – seeking to become an architect, however, I was not accepted, and, as such, I graduated with a Liberal Arts degree.
Upon graduation from Arizona State University, I attended Cal Poly San Luis Obispo and studied City and Regional Planning at the Master’s level. I successfully completed one (1) year in a two (2) year program – I did not complete the Master’s degree in City and Regional Planning – due to personal reasons.
I returned to Santa Monica where I started (October 1979) my career as graphic designer with Exxon Company, USA. I spent five years with Exxon Company, USA.
While working with Exxon Company, USA I was accepted into architectural school – Sci-Arc in Southern California, however, I did not attend preferring to stay with Exxon..
In 1982 I married Laura Flosi and in April 1983 we had our one and only child – Lauren Alain Hovis – a gift from God.
We moved to Phoenix, Arizona in 1984 from Los Angeles, where I went to work as a graphic designer with Kitchell CEM (from 1985 -1987).
From 1987 – 1995 I was an independent contractor, and a registered representative in mortgage finance, financial management, graphic design, and drafting.
Further, I attended the University of Phoenix and successfully obtained a Master’s in Business Administration (MBA) in 1982.
I was also a member of the Scottsdale Jaycees, where I became very involved in community events and projects.
In 1994, I accepted a cartography position with the Defense Mapping Agency in Reston, Virginia. As such, I relocated from Phoenix to Reston.
In 1998, I was accepted and worked as a Visual Information Officer with the Central Intelligence Agency. In 2002, I worked as a Support Officer until my retirement (due to a need for shoulder surgery) in September 2018.
Away from my Federal Government service, I have been involved in various organizations and activities in Northern Virginia.
In November of 2011, I married Rebecca Ouellette in Santa Monica, California. I reside in San Tan Valley, AZ with my two hamster - Jess and Timothy, our fish, our lizard - RJ Lizard., and our cats - Pearl and Grey.
As to hobbies, I enjoy playing sports, attending sporting events, mentoring individuals from financial management to hamsters, building models, photography, travel, multimedia design, managing partner for RJ Hamster, and jazz – smooth jazz to a samba or a bossa nova.
Love and God Bless,
Peter – aka RJ Hamster Jo hi
Adam Schiff blasts Trump after report of $1.7B fund tied to IRS lawsuit deal and Jan. 6 allies, calling it “the most corrupt regime” claim. More Info ➔Top 3 Telecom Stocks to Watch – Ad
Connectivity powers the digital world. From 5G networks to global data infrastructure, telecom companies are at the center of it all. Discover 3 telecom stocks gaining attention.
Pfizer Inc. shares are dipping on Tuesday. The company announced settlement agreements extending the effective U.S. patent life of Vyndamax. More Info ➔
Information, charts, or examples contained in this email are for illustration and educational purposes only and not for individualized investment management. This message contains commercial elements, such as advertising and partner offers for which we may receive affiliate compensation. We only send these offers to those who have opted into our newsletter.
If you wish to no longer receive these offers, click on the unsubscribe link at the bottom of this email. Past performance is not indicative of future results. For these reasons, we strongly suggest trading in a DEMO/Simulated account.
The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices, or procedures of any company or entity mentioned or recommended in this email and have not determined if the statements and opinions of the advertiser are accurate, correct, or truthful.
If you use, act upon, or make decisions in reliance on information contained in this email or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates, and agents without fault.
2967 Dundas St. W. #990, Toronto, ON M6P 1Z2 | Phone Number: 917.672.7040
Its products range from transceivers and lasers to amplifiers and short-distance cables, all critical to telecommunications and digitization globally. The driving force in 2026 is datacenters and AI, but the technology spans use cases, as it enables faster, higher-bandwidth communications across the technology world, from chips and components to datacenters and hyperscale networking.
The problem, as the market approaches mid-year, is the stock’s price action and valuation. They set the market up for a correction that could shave a high-double-digit amount off the stock price. Trading at 215X the current-year earnings consensus, the market is pricing in significant growth and flawless execution, setting the stage for missteps and delays to be reflected in the stock price.
The stock price action is fundamentally bullish, with rising volume and converging MACD, but the May activity reflects a topping market, with the potential to trend sideways in consolidation, if not to pull back in a correction. Rising volume and MACD convergence suggest new highs will be reached; it’s only a matter of timing, but the potential for correction is significant, with support targets at $140 and $96, approximately 37.5% and 54% below the May peaks.
Applied Optoelectronics Misses in Q1: Guides Weak
Applied Optoelectronics had a solid earnings report for Q1 and provided strong guidance, but both fell short of the analysts’ high bar, prompting them to reset their forward outlook and creating headwinds for market sentiment. As it stands, the company’s $151 million in revenue was up more than 50% year-over-year, driven by broad-based strength. Data centers and AI underpinned the business, with demand for next-gen 800G products on the verge of ramping up.
Earnings per share were a miss. The company’s growth investments, which include new products and capacity expansion, cut into the earnings results—but failed to darken the outlook. If anything, demand dynamics suggest the investments will pay for themselves quickly as the capacity comes online. Guidance was likewise bullish, but fell short of expectations, with revenue below consensus at the midpoint of the range.
Capitalization is an important factor, and perhaps the more pressing issue, capping shares in May. The company’s expansion is capital-intensive, requiring massive capital raises and shareholder dilution. Highlights at the end of Q1 include a greater-than-50% increase in share count compared to the prior year, and a high likelihood of additional capital raising. The good news is that the balance sheet remains healthy, with low long-term debt and total liabilities below 50% of equity. The cash balance will decline, but it will be converted into equity-boosting property, revenue, and earnings over time.
Sell-Side Forces Set Stage for AAOI Market Volatility
They peg the stock at Hold and expect it to decline by 50% at the consensus, and the short-sellers will be happy to see it get there. They’ve sold into the rally, sustaining a mid-teens interest as of late April, and may have increased activity due to the tepid Q1 release and its impact on the outlook.
The primary catalyst for AAOI stock this year will be the monetization of its massive backlog. Hyperscaler demand for 800G and other next-gen products is surging, with Oracle (NASDAQ: ORCL)alone accounting for $324 million in demand, and it only needs to be delivered. The biggest risks are executing on its aggressive expansion plans, including building multiple facilities and customer concentration.
Customers are centered in the major hyperscalers, primarily Oracle, Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT), and are easily disrupted. There is not only a risk of execution delays impacting the pace of revenue recognition, but also for technological disruption from competitors. Aeluma (NASDAQ: ALMU) is one of several companies focusing on photonics with the power to disrupt, and the incentive for it to do so is substantial. The successful integration of commercially viable, scalable copackaged optics could make many AAOI products obsolete.
Timing an investment in AAOI will require consideration of its upcoming earnings releases. News revealing strategy execution will help invigorate market sentiment, but the market will need proof that execution is driving improved revenue and earnings metrics. That may not come until August, with the Q2 release, or even later. READ THIS STORY ONLINE
An investment account dating back to 1888 has quietly delivered average annual returns of 29% over the last 25 years – and BlackRock, JP Morgan, and Bank of America have all used it.
Most ordinary investors have never heard of it. It is not a stock, not crypto, and not a typical retirement product. A free presentation explains exactly what it is and how regular investors may access it with just a few hundred dollars.WATCH THE FREE PRESENTATION TO LEARN HOW THIS ACCOUNT WORKS
Three big-name stocks recently added more juice to their dividends. These stocks sit on different ends of the dividend yield to dividend growth spectrum. Yields stretch as high as 4%, and growth rates are as high as 15%. This includes a large energy company with a solid yield that just boosted its dividend by more than 30%.
For over a year, shares of food and beverage giant PepsiCo (NASDAQ: PEP) have been largely range-bound. Overall, the stock has provided a total return of just 3% since the start of 2025
Notably, Pepsi’s food business, primarily composed of snacks, has been a laggard. In its latest quarter, Pepsi’s Frito-Lay North American segment saw sales rise by 2% year-over-year (YOY). Meanwhile, Beverages North America rose significantly faster, at 9% YOY. Despite this low figure, the segment is improving, posting its fastest growth in two years. Pepsi is undertaking changes to shift its food business, focusing on its best-performing brands.
Pepsi also recently increased its already strong dividend. Its quarterly payout will move up by 4% to $1.48 per share. The firm plans to make its next payment on June 30 to shareholders of record as of the June 5 close. Overall, Pepsi’s indicated dividend yield now stands at about 4%. Notably, with this latest increase, Pepsi has now raised its annual dividend for 54 years in a row. The company has also grown its dividend by a compound annual growth rate of just under 7% over the past five years. This is a solidly middle-of-the-road dividend growth rate.
KLA: Giant Industry Giant With Strong Sales and Dividend Growth
KLA (NASDAQ: KLAC) is one of the world’s most prominent names in the semiconductor manufacturing equipment industry. With multiple parts of the artificial intelligence (AI) semiconductor space experiencing shortages, KLA’s share price has absolutely taken off. Since the beginning of 2025, KLA has provided a total return of over 180%. Its 2026 return is also very strong, around 45%.
KLA has been growing at a strong pace, seeing its most recent quarterly sales rise by over 13% YOY. Investors and analysts expect KLA’s sales to continue growing considerably. Next quarter, analysts estimate that sales will grow by approximately 13% YOY, with that growth accelerating to 30% in calendar Q1 2027. In order for chip makers to increase their production capacity and meet customer demand, they need more of KLA’s equipment; the rationale for sales acceleration.
KLA is also boosting its dividend at an impressive clip, with a five-year annualized dividend growth rate of just over 15%. The company just announced a 21% dividend increase, moving its quarterly payout to $2.30. The company plans to pay its next dividend on June 2 to shareholders of record as of the May 18 close. Despite its dividend growth, KLA’s indicated dividend yield is low, near 0.5%.
Devon Issues Huge Dividend Increase and Buyback After Coterra Acquisition
Last up is Devon Energy (NYSE: DVN), one of the United States’ largest independent oil and gas producers. Shares have performed well, providing a total return of 50% over the last 12 months. As with the rest of the oil industry, the conflict in Iran has aided Devon, sending oil prices up significantly.
Investors have also viewed Devon’s acquisition of Coterra Energy (NYSE: CTRA) positively. The combination of these two shale operators will drastically increase Devon’s production capacity. Devon’s daily production in 2025 was about 840,000, which would have been 1.6 million with the inclusion of Coterra.
Additionally, Devon expects to generate $1 billion in annual pre-tax synergies from the merger by the end of 2027, creating value in the combined organization. Coterra also committed to significant capital returns when announcing the deal.
Making good on its promise, Devon massively increased its dividend by 33% to 32 cents per share. The company plans to make its next payment on June 30 to shareholders of record as of the June 15 close. This gives Devon a solid indicated dividend yield near 2.6%. The company’s 5-year annualized dividend growth rate is just 7%, but growth has clearly accelerated.
Devon also announced a very large buyback program of $8 billion. This is equal to 14% of Devon’s approximately $57 billion market capitalization.
Analysts Eye Solid Gains in Devon Energy
Among this group, Wall Street analysts are displaying the most optimism in Devon going forward. The MarketBeat consensus price target near $56 implies just under 15% upside in shares. Targets also moved up meaningfully after Devon’s earnings report, and Raymond James upgraded Devon to a Strong Buy. The average of targets updated after earnings is approximately $64, implying more than 25% upside. READ THIS STORY ONLINE
When a mega-IPO like SpaceX hits the market, the 60 days before the listing matter more than the day itself. Pension funds, ETFs, and sovereign wealth funds all need to buy in – and to do that, they sell first. That selling often comes from positions sitting in your retirement account.
Physical gold held in a self-directed IRA can’t be rebalanced out from under you – because it never sits on a fund manager’s books. The free 2026 Gold Guide from Reagan Gold Group walks you through how to make the move tax-free and penalty-free in days.DOWNLOAD THE FREE 2026 GOLD GUIDE AND PROTECT YOUR RETIREMENT SAVINGS
Everspin Technologies (NASDAQ: MRAM) could be the next big AI winner because AI is driving applications at the edge, and the edge is where Everspin Technologies is best-suited. In fact, its products are not just best-suited for the edge; they are the best in their class for edge applications, and demand is accelerating.
What Everspin Technologies does is produce magneto-resistive random access memory (MRAM), a technology that combines the speed of SRAM with the durability of flash, among other benefits.
MRAM is different from traditional memory because it is based on electron spin rather than charge. This enables low-energy memory storage, resistance to power loss, radiation, heat, and nearly unlimited write endurance. The applications are virtually unlimited, but some negative factors are affecting the outlook. Among them are higher costs compared to traditional memory and a more complex manufacturing process. They also provide lower memory density and require more power for the initial write, so demand tends to be focused on more specialized applications, including consumer wearables, microcontrollers, and aerospace/defense industries.
Everspin had a solid quarter, with Q1 results highlighting its growth trajectory. The microcap company reported $14.87 million in net revenue, up 13.5% year-over-year (YOY), driven by demand in industrial automation, transportation, and data centers. The top line was nearly 200 basis points (bps) better than expected, compounded by a widening margin and hot guidance. The company’s margins expanded at the gross and operating levels, resulting in a narrower GAAP loss and improved adjusted profitability. The adjusted earnings grew by quadruple digits YOY, and were 2,200 bps ahead of MarketBeat’s reported consensus.
Everspin’s guidance is one of the reasons the stock price action surged following the release. The company expects Q2 results to accelerate sequentially and outpace the analysts’ consensus forecast while leaving the door open to outperformance. As it stands, the company is expecting revenue in the range of $16 million, but has not included the impact of new deals. In this light, the company can be expected to outperform its own guidance on an as-reported basis, and the outperformance may be substantial.
New deals include a $40 million subcontractor award to support U.S. Defense Industrial Base customers. The award will be paid out over two and a half years, affirming the company’s emerging presence as a mission-critical component for defense and government applications. The likely scenario is that additional contracts will be awarded over time as the company expands its manufacturing capacity. The recent deal with Microchip not only enhances its capacity and derisks the long-term outlook but also strengthens its domestic manufacturing footprint and value to defense and government industries.
Institutions Buy In: Don’t Chase Prices
Institutional data reflect a market in accumulation, but investors should be wary of chasing this stock price higher. While institutions are accumulating at a robust pace, they own less than 50% of the stock, and the market has outpaced analyst sentiment. Analyst sentiment trends open the door to extreme volatility. There are only two analysts with active ratings; they are split between Buy and Sell, and the single target implies a double-digit downside from the early May highs, setting the stage for a May or summer 2026 price correction.
The stock price action signaled a top in May. Price surged following the April earnings release and will likely trend higher over time, but the early May gap higher and subsequent doji candle mark a near-term top.
The only question is how deep the market may pull back, and the $28 level appears to be the most likely target. Reasons to believe the stock will continue higher over time include the MACD convergence, which signals a strengthening market, and the rising trading volume, which reflects increased market interest and conviction in the trade.
Everspin’s primary risk in 2026 is its dependency on government contracts. While not the only revenue source, it is a key driver and is susceptible to delays and disruptions. Additionally, intense competition in the non-volatile memory market may disrupt Everspin’s ability to reach critical milestones. However, its unique approach, profitability, and obvious utility make it a quality speculation for investors and a takeover candidate for larger tech companies. Potential buyers include Microchip Technology, with whom Everspin is already in business, Honewell (as MRAM is a critical component in defense applications), and Taiwan Semiconductor (NYSE: TSM) (leader in embedding MRAM on traditional silicon). Catalysts include new and upcoming product qualifications that expand the addressable market. READ THIS STORY ONLINE
When SpaceX files its S-1, institutions will liquidate holdings, rebalance portfolios, and free up capital for allocations — and your 401(k) or IRA sits right in the middle of that machinery. It happened around Saudi Aramco, Alibaba, and Facebook, and the mechanics haven’t changed.
Physical gold held in a self-directed IRA sits completely outside that system. No fund manager can rebalance it, and no IPO frenzy touches it. Reagan Gold Group’s free 2026 Gold Guide shows you how to move a portion of your retirement outside the system — tax-free and penalty-free.REQUEST YOUR FREE 2026 GOLD GUIDE IN 30 SECONDS TODAY
The Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.
The Roundhill Memory ETF (CBOE: DRAM) continued its strong momentum last week, helped by the strong demand for memory products as the artificial intelligence (AI) boom continued. More Info ➔SpaceX IPO Confirmed: Claim Your Stake Today– Ad
Large-cap housing, nuclear, crypto and commodity-linked stocks led last week’s declines as earnings volatility, rising yields, weaker Bitcoin prices and geopolitical concerns pressured sentiment. More Info ➔4 Value Stocks Built to Last a Lifetime
WASHINGTON (AP) — It was the hottest ticket in town — a white-tie dinner with King Charles III and Queen Camilla , where nearly 130 guests dined on Dover sole meunière and sampled a beehive-shaped chocolate dessert with honey from the . More Info ➔
Information, charts, or examples contained in this email are for illustration and educational purposes only and not for individualized investment management. This message contains commercial elements, such as advertising and partner offers for which we may receive affiliate compensation. We only send these offers to those who have opted into our newsletter.
If you wish to no longer receive these offers, click on the unsubscribe link at the bottom of this email. Past performance is not indicative of future results. For these reasons, we strongly suggest trading in a DEMO/Simulated account.
The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices, or procedures of any company or entity mentioned or recommended in this email and have not determined if the statements and opinions of the advertiser are accurate, correct, or truthful.
If you use, act upon, or make decisions in reliance on information contained in this email or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates, and agents without fault.
2967 Dundas St. W. #990, Toronto, ON M6P 1Z2 | Phone Number: 917.672.7040
Catholic “AI for good.” Instant answers and guidance to any question or problem. Try free for 7 days.
A Night Prayer
Jesus Christ, my God, I adore You and thank You for all the graces You have given me this day. I offer You my sleep and all the moments of this night. I place myself and all my loved ones, wherever they may be, in Your sacred side and under the mantle of Our Blessed Mother. Let Your holy angels stand watch and keep us in peace. Amen.
Quote of the Day
“If you cannot find Christ in the beggar at the church door, you will not find Him in the chalice.” -St. John Chrysostom
Today’s Meditation
“The sacraments of the Church are one thing, the sufferings of human beings are another. Since there is nothing to show that our pains sanctify us ex opere operato (by the very fact that the pain is there), it is for us to make sure ex opere operantis (by the intention and disposition of the person concerned) that what is given us by God is given back to him through Christ.” —Hubert Van Zeller, O.S.B., p.11
What if your AI didn’t spy on you — and actually aligned with your faith?
With over 250,000 downloads, Truthly is the Catholic AI app built to help you navigate the internet faithfully. Ask anything. Get answers you can trust — grounded in truth, not trends.
The daily examination of conscience is an ancient Catholic practice. It’s very simple, and it’s designed to help us identify our sins and weaknesses so that we can improve and grow stronger in the spiritual life, while providing an excellent ongoing preparation for regular Confession. It consists of taking a few minutes at the end of the day to prayerfully review our actions in the light of God’s commandments, followed by the Act of Contrition.
Reflect on the victories and losses
Actively reflecting on the high and low points of the day can help you live more intentionally and bring a renewed sense of resolve into the following day.
Review your actions, words, and thoughts today. Did you actively guard yourself against temptation? Where did sin creep in?
In what moments did you practice virtue and moral courage?
Were you attuned to the Holy Spirit’s promptings today? Where did you feel His inspiration?
Ask Him for the graces necessary to follow His Will more purposefully tomorrow.
Act of Contrition
O my God, I am heartily sorry for having offended Thee, and I detest all my sins because of Thy just punishments, but most of all because they offend Thee, my God, Who art all good and deserving of all my love. I firmly resolve with the help of Thy grace to sin no more and to avoid the near occasions of sin. Amen.
Practice gratitude
It is God’s love that has brought you into existence and to this exact moment. Practice looking for His hand in your day.
Where did you feel His loving gaze upon you today?
What people or moments helped you see God in your life?
Thank God for all these moments!
Ask Him to help you recognize His blessings and providence tomorrow.
Renew your commitment to Christ
Remember: our Faith is founded upon a Person—Christ! Renew your personal love and devotion to Him.
Thank God for the gift of His Son Jesus and our call to be His disciples.
Tell the Lord of your desire to know Christ more personally.
If possible, set an intention for your day tomorrow. Ask Our Lord to guide you in this act.
Pray a Hail Mary, Our Father, or another beloved prayer.
Rest with God
In peace I will both lie down and sleep; for Thou alone, O Lord, makest me dwell in safety. — Psalm 4:8
Featured: Lemonade Is Quietly Reinventing Insurance From the Ground Up
Sponsored
Hey,
I have been getting a lot of the same question lately:
“Thomas, if this strategy is so good, why are you giving the guide away for free?”
It is a fair question. Especially in an industry where every “free” offer is usually just a Trojan horse for a $2,000 upsell or a 90-minute webinar you have to sit through.
So here is my honest answer.
I have been trading professionally for years. I have seen talented people blow up their accounts because they were following overly complicated systems sold to them by people who do not actually trade.
It bothers me. A lot.
The “Opening Bell Breakout” is the simplest, most repeatable strategy I have ever used.
It takes about 30 minutes a day.
It does not require expensive software.
And it has produced gains like 113% on GOOGL and 240% on META.
I put it into a free guide because I genuinely believe that if you see how it works, you will understand the kind of real, actionable trading education we provide at Base Camp Trading.
And maybe down the road, you will want to learn more from us.
FEATUREDLemonade Is Quietly Reinventing Insurance From the Ground Up
Insurance is not an industry people get excited about. That’s exactly the point.
Lemonade (NYSE: LMND) beat Q1 estimates, grew revenue 71% year-over-year, raised full-year guidance – and the stock dropped 15% in a single session. That kind of reaction is worth slowing down on.
Quick Hit
Q1 revenue: $258M – up 71% YoY, beat estimates by 2.6%
Gross profit up 159% to $100M – margin expanded to 39%
Adj. EBITDA loss narrowed 64% YoY to just $17.1M
In-force premium: $1.33B – 10th consecutive quarter of acceleration
Lemonade has spent a decade building something the traditional insurance world cannot easily copy – a fully AI-native platform that writes policies in under 90 seconds and settles claims in as little as three seconds. No phone calls. No waiting periods. A model that compounds efficiency the bigger it gets.
Q1 followed a strong Q4 2025 where revenue hit $228.1 million – a 53% jump year-over-year – and gross loss ratio touched a record low of 52%. Net loss in Q1 improved to $35.8 million from $62.4 million a year earlier. None of those moves are incremental. They’re operating leverage showing up on the income statement, quarter after quarter.
In-force premium reached $1.33 billion, up 32% year-over-year. That’s the tenth consecutive quarter of IFP acceleration. Customer count hit 3.14 million, up 23%, with 158,000 new customers added in Q1 alone. For the full year, management raised guidance to $1.20 billion in revenue with projected IFP of $1.63–$1.64 billion.
One number that gets overlooked: Lemonade now generates over $1 million in in-force premium per employee – a nearly 3x improvement over four years, putting them on rough parity with Progressive, Allstate, GEICO, and Travelers. A company that started writing renters policies out of a New York apartment is now running at the operational efficiency of industry titans.
The Products Getting Interesting
Pet insurance crossed $500 million in IFP early in Q2 – the first product in Lemonade’s portfolio to hit that mark, and now its largest line of business. Pet IFP grew 55% in 2025 against an industry average of 17%. That’s not a coincidence. That’s distribution advantage compounding over time.
Slight tangent, but it matters: most people still think of Lemonade as a renters insurance company. Pet and car together are quietly changing that.
The more intriguing product right now is autonomous car insurance. Launched in January 2026 in partnership with Tesla, the offering prices FSD-engaged miles at roughly half the rate of human-driven miles – using Tesla’s Fleet API to distinguish autonomous driving from manual, mile by mile. Car IFP grew 60% year-over-year in Q1 2026. The gross loss ratio on the car product came in at 74% – still elevated, but moving in the right direction.
What’s interesting is Lemonade isn’t just selling insurance here – it’s building the pricing infrastructure for a world where AI drives the car. No traditional carrier has the tech stack to do that. Most of them are still on legacy platforms that don’t talk to each other. SponsoredHow the Rich Retire
For decades, one type of investment was reserved for the ultra-wealthy. Then Trump signed Executive Order 14330 – and opened it to everyone. Now you can get into this boom for less than $20.
Here’s where it gets honest. Lemonade is still losing money. The adjusted EBITDA loss guidance for full-year 2026 sits at $47–$51 million. Stock-based compensation hit $21.2 million in Q1 alone – more than doubling year-over-year – and that will weigh on margins near term. Any underwriting deterioration from weather events or a spike in car claims can move the loss ratio in ways AI models don’t always anticipate fast enough.
The reinsurance transition is also worth watching. The ceding rate dropped from 55% to 30% in Q1, is expected to hit 25% in Q2, and normalize around 20% by Q3. Retaining more premium boosts revenue but also means absorbing more direct risk. That’s not necessarily a problem – it’s actually a sign of confidence in the underwriting model – but it adds volatility if claims spike unexpectedly.
The stock closed nearly 15% lower on the day Q1 results dropped, despite beating on both revenue and EPS. As of mid-May 2026, shares are trading around $51 – well off the 52-week high of $99.90. The company has also generated positive adjusted free cash flow in seven of the last eight quarters and ended Q1 with $1.14 billion in cash and investments. This is not a company running out of runway.
The Options Angle
Here’s where it gets more interesting for those who trade options. After a 15% single-session drop, implied volatility on LMND tends to stay elevated for a few weeks before compressing – which creates a window. A few approaches worth thinking through:
Bullish thesis / longer timeline: A long call or bull call spread targeting a recovery toward the $65–$70 range by Q2 earnings (August 5) gives defined risk exposure to the EBITDA breakeven story without full equity downside. The $55 strike call expiring in August has been of interest given the stock’s proximity to that level.
Neutral-to-bullish / income angle: Selling a cash-secured put at the $45 or $47.50 strike with an August expiration collects premium while setting an entry point at a level that represents meaningful support. If LMND holds above those strikes through Q2, you keep the premium. If it doesn’t, you’re buying shares at a price most long-term holders would consider attractive.
Volatility play: If you think the post-earnings IV crush hasn’t fully played out yet, a short strangle or iron condor centered around $51 with strikes at roughly $42/$60 captures premium in a range-bound environment. The risk is a sharp move in either direction – which, given LMND’s history, is always possible.
What to watch: The July 1 reinsurance renewal is the near-term catalyst most equity traders are ignoring. Any clarity on retention levels and premium economics could move the stock meaningfully before Q2 results even hit.
As always – these aren’t recommendations. They’re frameworks for thinking through position sizing and risk around a stock with a clear catalyst calendar and elevated vol.
The Bigger Picture
Over 5% of Lemonade customers now hold multiple policies, and that group accounts for nearly 20% of in-force premium. Cross-sell nearly doubled year-over-year per management. That’s a high-margin growth lever that doesn’t require much incremental marketing spend.
The path to a $10 billion IFP business over the next decade requires execution on autonomous vehicle expansion, cross-sell penetration, and AI-driven cost reduction. None of that is guaranteed. But the company has a consistent record of hitting the targets it sets publicly – EBITDA breakeven in Q4 2026 was first stated in 2022, and the model has tracked it closely ever since.
The market wants proof, not trajectory. Q2 results on August 5 will matter more than usual.
The Cheap Investor Scorecard – LMND
IFP growth (target: 32% YoY) – Q1 2026: 32% YoY to $1.33B. On track.
IFP per employee – Surpassed $1M in Q1 2026. Nearly 3x improvement in four years.
Customer count growth (target: 23%+ YoY) – Q1 2026: 23% YoY to 3.14M. On pace.
Annual Dollar Retention (ADR) – 85%, stable sequentially. Needs to improve.
Bottom line: If Lemonade hits positive adjusted EBITDA in Q4 2026 and sustains 30%+ IFP growth into 2027, the current price doesn’t reflect the business they’re building. If the car loss ratio stays elevated and reinsurance risk creates surprises, the path gets bumpier. Q2 results on August 5 are the next real test. The July 1reinsurance renewal is the one to watch before that.
– The Cheap Investor
This content is for informational purposes only and should not be considered financial advice. Investing involves risk.
Options Trading Report is a publication of BMF Financial, LLC.
A short note before our Reg A+ round closes. We are more than 95% allocated and the round will close as soon as the remainder fills. Less than 5% remains.
When I started this raise, the goal was simple. Build a holding company that owns the AI decision layer for marketing, and let our AIBO Engine compound across multiple operating brands. Two years later, the round is more than 95% allocated, we have over 20,000 shareholders, and our share price has moved from $0.184 in 2022 to $0.95 today.
Selected by the Adobe Design Fund. Backed by multiple institutional investors. Early operators from Google, Meta, YouTube, and Amazon are in the cap table. NASDAQ ticker $RADI is reserved.
None of that is a guarantee of future returns. It is a record of what we built and who chose to be early. The remaining capacity can fill at any moment, and once it does, the offering closes and the entry point at the current pricing tier is no longer available.
If you have been thinking about it, the time to act is now. There is no scheduled cutoff to wait for and no warning before the round fills. Review the offering circular, ask any questions, then decide.
RAD Intel, Inc. is offering securities under Tier 2 of Regulation A+. The offering circular and risk factors are available at invest.radintel.ai. Investing in early-stage companies involves significant risk, including the loss of principal. Past performance does not predict future results. Brand references reflect factual platform use, not endorsement. Investor references reflect factual individual or institutional participation and do not imply endorsement or sponsorship by the referenced companies.
Thank you for subscribing to DividendStocks.com’s daily newsletter for dividend and income investors that covers ex-dividend stocks, new dividend declarations, dividend stock ideas, and the latest market news.
This email communication is a sponsored email for RAD Intel, a third-party advertiser of DividendStocks.com and MarketBeat.
If you need assistance with your subscription, please don’t hesitate to contact our U.S. based support team at contact@marketbeat.com.
If you no longer wish to receive email from DividendStocks.com, you can unsubscribe.
Copyright 2006-2026 MarketBeat Media, LLC. All rights reserved. 345 N Reid Place, Suite 620, Sioux Falls, South Dakota 57103-7078. United States..
Focused market insights, strategic perspectives, and actionable ideas for informed investors.
News for you, Peter
Today’s game
Trending now1. 
RJ Hamster 