Darryl Rawlings wanted to help pet owners everywhere... He was working as a software developer at a veterinary clinic in 1999. And in that role, he saw that many owners couldn't afford the excessive costs to take care of their pets.

The Power Gauge Saw This Doomed Stock Before a Famed Short Seller By Pete Carmasino, chief market strategist, Chaikin Analytics Darryl Rawlings wanted to help pet owners everywhere... He was working as a software developer at a veterinary clinic in 1999. And in that role, he saw that many owners couldn't afford the excessive costs to take care of their pets. So a year later, he launched Trupanion (TRUP). Trupanion is a pet-insurance company. But it's different than most of its competitors... Among other things, the company allows the veterinarian to be paid directly. So pet owners can bypass filing an insurance claim after making a payment. It's an attractive business model, too. The company went public in 2014. And it has produced steady revenue growth every year. It's now pushing $1 billion in total sales. But the problem is... Trupanion can't seem to make a profit. As I'll explain today, a legendary short seller is now setting his sights on Trupanion. He's accusing the company of price gouging and more. And the stock is now in free-fall mode. But if you had the Power Gauge at your side, you could've seen all the trouble coming... Recommended Links: Wall Street's "Reckoning" Hits in the Next 60 Days The largest hedge funds like Millennium Management, Citadel, Point72, and more are now anxiously awaiting the greatest Wall Street event of 2023. Over $10 trillion and more than half of the U.S. stock market will be impacted...  And abnormally large gains – and losses – are set to follow. Get a free recommendation AND learn how to prepare, here. Sell This Popular Stock NOW Over 1 million people around the world follow 50-year Wall Street veteran Marc Chaikin for his surprisingly accurate stock predictions. And he just gave them an urgent SELL ALERT for one of the most popular stocks in U.S. history. He says, "After years of breathtaking gains, this company's day in the sun is coming to an end. You must sell this stock – NOW!" Get the ticker here. Life was good for Trupanion's investors in the early days of the COVID-19 pandemic... Everyone was stuck in their homes. Many folks bought pets to keep them company. And related to that, a lot more people acquired pet insurance from companies like Trupanion. The company's stock soared from about $24 per share in March 2020 to a peak of more than $155 per share in December 2021. That's a roughly 550% gain in about 21 months. But then, the Power Gauge flashed a "steer clear" signal on this stock... Our one-of-a-kind system was never "bullish" on Trupanion. The fundamentals weren't strong enough. And in the first week of January 2022... its relative strength went negative. You can see what I mean in the following chart. I've circled the relative-strength change in the lower panel. Take a look... A negative relative-strength change is a telltale sign of big trouble ahead... Put simply, it tells us that a stock has gone from outperforming the broad market to underperforming it. That's a big deal because, on Wall Street, success begets further success. And underperformance sends investors running for the exits. After all, no one wants to keep holding a position that underperforms the broad market. And in this case, the company was clearly struggling... Before the relative-strength change in January 2022, Trupanion missed earnings expectations in five straight quarters. And it has endured four more misses since then. That's not good. Now, well-known short seller Marc Cohodes is taking aim at the company... Cohodes gained fame for his successful bets against several businesses. For example, his exposé and related short position on mortgage lender NovaStar Financial leading up to the financial crisis is now a Harvard Business School case study. He's known for his colorful and blunt language when discussing companies and their executives. He sometimes uses profanity and doesn't hold back on executives he believes are engaging in unethical behavior. And to put it succinctly... he's good at what he does. In a series of Twitter posts last week, Cohodes called Rawlings (Trupanion's founder) out on what he believes is a toxic work environment. Cohodes also railed on corporate behavior that reeks of price gouging. He cited a 28% rate increase for pet owners in California. Cohodes' opinion now lines up with the Power Gauge. He believes folks should avoid Trupanion at all costs. But here's the thing... The Power Gauge alerted investors to the negative relative-strength change in January 2022. That was a clear signal to either sell the stock (if you owned it) or avoid "bottom fishing" with it. Now, more than a year later, a legendary short seller is calling out the company as well. It's further proof that folks shouldn't get caught up in this stock. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.17% 9 17 4 S&P 500 +0.33% 147 265 87 Nasdaq +0.54% 51 38 11 Small Caps +1.24% 413 942 524 Bonds -1.04% — According to the Chaikin Power Bar, Small Cap stocks are somewhat more Bearish than Large Cap stocks. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Communication +1.80% Information Technology +0.69% Discretionary +0.22% Staples -0.03% Industrials -0.15% Real Estate -0.43% Financial -0.68% Materials -0.81% Utilities -0.96% Health Care -1.01% Energy -1.63% *  *  *  * Industry Focus Telecom Services 1 22 17 Over the past 6 months, the Telecom subsector (XTL) has underperformed the S&P 500 by -19.45%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #18 of 21 subsectors and has moved up 1 slot over the past week. Indicative Stocks GOGO Gogo Inc. ATEX Anterix Inc. LITE Lumentum Holdings In *  *  *  * Top Movers Gainers WDC +11.26% ZION +8.47% CMA +7.29% KEY +6.67% MU +6.11% Losers OKE -9.06% FSLR -4.36% TSCO -3.50% AEE -3.03% PODD -2.86% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close CPRT HD KEYS No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. 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