Nasdaq: ROOT Root Insurance currently licensed in 48 states for personal auto insurance and operates on 34 states. Founded in 2015. Cash on hand $750m, Debt $300m, Market cap $60m roughly. This company has a high short percentage with 25% roughly and only 14m shares outstanding and 7m shares floating making it a low float. Now I am not saying this company is perfect by any means I am only saying this could be a perfect meme/short play when thought about. Yes they have put up some pretty terrible substantial losses but it is slowly and surely turning around. It takes time but eventually this company can very well be profitable after all it is car insurance. Out of all the companies around ROOT has a chance sitting at only $60m. They need some serious leadership change which can happen. With cash burn coming down big time and being car insurance all on an app, I like the risk/ reward here. What is everyone else's opinion, I think that to be a contrain and deep value you have to really put all pre conceived notions aside. The bigger the risk the bigger the reward remember when GME squeezed it was trading low and looked bad. ROOT has enough cash to hold them down while they figure things out and in that time the shorts are the ones who will need to cover. At market cap of $60m and 34 state car insurance I think their is money to be made here.
[link] [comments] https://www.reddit.com/r/stocks/comments/134ac2e/root_car_insurance_have_you_heard_of_it/
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