Momentum & Growth

Insider Financial Trading Update For 02/19/20

Today’s latest write-ups on Trading View are $MGI, $SENS and $I.

$MGI is back climbing the charts after finding strong support at the $2 level. With the stock down from 52-week highs above $6, there’s a lot of room for $MGI to run. About 8% of the float is short.

We’ve been bullish on $MGI since January 17 and the stock has consolidated and due for a move higher to close gaps. Our initial target is $4 a share.

In recent news:

MoneyGram International (NASDAQ:MGI) introduces a new service through which consumers can send money to their friend’s mobile phone number via the MoneyGram website and mobile app.

Called MoneyGram FastSend, the new service is supported by Visa (NYSE:V) Direct rails.

To use FastSend, customers log in to the MoneyGram app or website, enter the receiver’s name and phone number, and select FastSend. A text is sent to the receiver notifying them that they have funds available for deposit. The receiver then logs in, adds their debit card, and the funds are transferred into their bank account within minutes.

The service costs $1.99 per transaction from debit cards and has a $10,000 limit per transaction.

$SENS is finally breaking to the upside after putting in multiple bottoms at the $.80 to $.90 level. Yesterday, $SENS put out news that we believe will continue to push the stock higher.

–Cigna coverage decision adds more than 17 million covered lives for Eversense CGM–

GERMANTOWN, Md .–(BUSINESS WIRE)– Senseonics Holdings , Inc. ( SENS ) a medical technology company focused on the development and commercialization of the first and only long-term, implantable continuous glucose monitoring (CGM) system for people with diabetes, announced that Cigna is now providing coverage for the Eversense® CGM System, effective February 15, 2020. This recent coverage decision adds to the growing number of payers who are writing Eversense into their CGM coverage policies, as well as paying for the healthcare provider’s time for the in-office sensor placement.

Cigna Corporation is a global health service company dedicated to improving the health, well-being, and peace of mind of those who they serve Cigna has more than 17 million medical customers and offers a Medicare Advantage plan in 17 states and Washington DC. This most recent coverage decision – in addition to Aetna (AET), Humana , HCSC Blue Cross Blue Shield and other health insurance providers – adds to the growing list of payers enabling their members to benefit clinically from the long-term Eversense CGM System.

“Cigna prides itself on providing choice and access to quality care through connected, personalized solutions that allow their members to harness actionable insights to drive better healthcare results. Now Cigna members will have the choice to use the only long-term implantable CGM system available to help them better manage their diabetes,” said Tim Goodnow, PhD, President and Chief Executive Officer of Senseonics. “Eversense provides actionable glucose data for users – not only where they are right now, but the direction they are headed. With superior accuracy, longest sensor life, on-body vibratory alerts and remote monitoring capability, users can proactively manage their glucose levels by treating their diabetes before they get to dangerously high or low levels. This information in the hands of the users allows them to manage their diabetes and experience healthier outcomes through personalized information and technology.”

The Eversense CGM System consists of a fluorescence-based sensor, a smart transmitter worn over the sensor to facilitate data communication, and a mobile app for displaying glucose values, trends and alerts. In addition to featuring the first long-term and first implantable CGM sensor, the system is also first to feature a smart transmitter that provides wearers with discreet on-body vibratory alerts for high and low glucose and can be removed, recharged and re-attached to the skin without discarding the sensor. Eversense users now have the freedom to make treatment decisions based on their Eversense readings. The sensor is inserted subcutaneously in the upper arm by a health care provider via a brief in-office procedure.

Patients who are interested in getting started on Eversense can sign up at http://www.eversensediabetes.com/get-sta… Physicians, nurse practitioners or physician assistants interested in offering the Eversense CGM System for their patients can contact 844-SENSE4U (844-736-7348).

About Eversense

The Eversense® Continuous Glucose Monitoring (CGM) System is indicated for continually measuring glucose levels in persons age 18 and older with diabetes for up to 90 days. The system is indicated for use to replace fingerstick blood glucose ( BG ) measurements for diabetes treatment decisions. Fingerstick BG measurements are still required for calibration twice per day, and when symptoms do not match CGM information or when taking medications of the tetracycline class. The sensor insertion and removal procedures are performed by a health care provider. The Eversense CGM System is a prescription device; patients should talk to their health care provider to learn more. For important safety information, see https://eversensediabetes.com/safety-inf…

About Senseonics

Senseonics Holdings , Inc. is a medical technology company focused on the design, development and commercialization of transformational glucose monitoring products designed to help people with diabetes confidently live their lives with ease. Senseonics’ CGM systems, Eversense® and Eversense® XL , include a small sensor inserted completely under the skin that communicates with a smart transmitter worn over the sensor. The glucose data are automatically sent every 5 minutes to a mobile app on the user’s smartphone.

We called $I a speculative buy when it was $3.11 before the stock jumped to $6. Now the stock looks set to make another run on David Tepper’s letter to the board. We are calling $I a speculative buy because Tepper is LONG at higher prices and he just recently added to his position. He is trying to protect his investment and not become a bagholder. Keep in mind that there are a lot of moving parts with $I and no one knows how its negotiations with the FCC will play out. Maybe Tepper wishes now that he hadn’t criticised Trump in the past lol.

Here’s Tepper’s letter:

February 18, 2020

Ladies and Gentlemen –

We write regarding recent events surrounding the Federal Communications Commission’s (FCC) plans to clear and auction C-band spectrum currently licensed to Intelsat and other satellite operators. We are disappointed, to say the least, with the Board’s and management’s apparent acquiescence to the broad terms of the FCC’s latest proposal, which was clearly motivated by political considerations. The token compensation offered to Intelsat is an affront when compared to the values achieved in auctions of comparable spectrum across the globe over the past decade.

Setting aside the issue of valuation for the moment, we nonetheless commend the Board for forestalling a final embrace of the proposal, as its mechanical terms are manifestly unfair to Intelsat. The FCC’s proposed Order imposes several onerous provisions that inappropriately subsidize the prospective overlay licensees, and by extension, the FCC. Among the most egregious of these terms:

(1) The Order requires the satellite operators to front billions of dollars of expenditures in order to clear spectrum for the benefit of an FCC auction that is not expected to begin until December 8th, 2020 — and for which reimbursement seemingly will not begin to occur until May 2021 at the earliest.

(2) The Order’s split of Accelerated Relocation Payments to Phases I & II of 25% and 75%, respectively, unfairly “back-ends” the satellite operators’ compensation and is disproportionate to the amount of spectrum cleared in the two phases (36% and 64%). Moreover, it is likely that the most useful and valuable portions of spectrum cleared will be in Phase I.

(3) The FCC’s requirement that an operator post a letter of credit in order to receive a Phase I Accelerated Relocation Payment subjects them to an all-or-none requirement to clear its spectrum by September 2023 (the Phase II deadline). Thus, failure to clear even a de minimis portion of the requisite spectrum exposes the operators to massive financial loss and provides a windfall to the overlay licensees on a potential technicality.

Taken together, these terms impose upon Intelsat the full weight of financial and execution risks related to a process that is likely to yield benefits for the FCC and US Government many times greater than those afforded the Company. For a highly leveraged operator, such as Intelsat in particular, the cash required to conduct that process imposes a hardship that could easily trigger an insolvency before relocation can be accomplished.

IN SUCH CASE, THESE PROVISIONS APPEAR COUNTERPRODUCTIVE TO EVEN THE FCC’s PURPOSES – NOT TO MENTION THE US GOVERNMENT’S GOAL OF EXPEDITING THE CONSTRUCTION OF A LEADING EDGE 5G NETWORK.

Given these circumstances, Intelsat cannot bear the risks associated with the current Order as it is structured. We urge you to withhold acceptance pending negotiation of an agreement with the FCC on fair commercial terms. Failing that, we believe the Board has no choice but to resort to bankruptcy and litigation in order to protect Intelsat’s valuable license rights from an illegal modification.

Sincerely,
Appaloosa LP
David A. Tepper
President

As always, trade with caution and use protective stops.

Good luck to all!

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Disclosure: At the time of this writing, we have no positions in any of the stocks mentioned. We are not financial advisors. Please read our full disclaimer for more information.

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Insider Financial Trading Update For 02/19/20
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