Consumers are gearing up for a “treat-yo-self” summer
Quick Hits From Grit
Happy Friday (+Long Weekend) Everyone 👋,
In typically workaholic fashion I forgot it was the long weekend and accidentally made my summer apprentice work yesterday. Ouch, sorry buddy!
FIVE things you need to know this week in 60 seconds. If you’re reading this but haven’t subscribed, join our community of smart, fun & edgy investors 👇
*as of 4pm ET, 7/1/21
Consumers are gearing up for a “treat-yo-self” summer
Do you think consumers are going to let a little delta variant stop them from euphorically spending the +$2.5T they saved up over the pandemic? I don’t think so! Confidence hasn’t been this high since February 2020, which is a great sign when you consider consumer spending makes up about 2/3 of all economic activity.
Consumers aren’t the only ones with reason to let their hair down this summer. All 23 US banks passed the FED’s stress test with flying colors last week and have begun boosting dividend payouts.
They’re in such great shape that they’ve got piles of cash to fuel (lend) the consumer spending spree (revenge travel) we’re about to see over the summer!
GRIT’S TAKE: Payouts by the six biggest banks are expected to increase, on average, by almost 50%. The top 3 have already announced their payout increases:
Wells Fargo doubling to 20 cents
Bank of America increased by 17% to 21 cents
JPMorgan (one of my “sleep at night” positions) boosted by 11% to an even $1
2. DEALS & IPOs
SPACs are so last year, 2021 is all about IPOs
SPACs were like that thing you tried in college: fun, but left you feeling a little dirty. That was 2020, though. The new year has been all about doing things the traditional way which means IPOs have raised $350B already (compared to $282B at the same time last year). Let’s check in on the top performers of the year so (with at least 1 month trading under their belt):
Esports Technologies (EBET) | Market cap: $290M | YTD: 251%
UTime Limited (UTME) | Market cap: $98M | YTD: 207%
ZIM Integrated Shipping Services (ZIM) | Market cap: $5B | YTD: 199%
Global E-Online (GLBE) | Market cap: $8B | YTD: 128%
FIGS, Inc (FIGS) | Market cap: $7.4B | YTD: 127%
GRIT’S TAKE: Of course, we also have Roblox (RBLX) which I wrote this whole big, positive piece on before it went public. I even tried to get my hands on some pre-IPO shares but no dice.
Since then, it’s almost doubled and I’m still trying to find my entry point. If anybody out there fancies themselves a chart enthusiast, can you take a look at my TA above and shoot me some pointers? ; )
3. STOCK MARKET
Facebook is the fastest company to reach the 4-comma club
On Monday Facebook scored a huge win in federal court when a judge dismissed 2 huge antitrust complaints against them from the Federal Trade Commission (FTC) and the state attorneys general. Finally, Zuck catches a break!
Shares of your crazy aunt’s favorite social media platform jumped +4% on the news and pushed Facebook’s market value above $1T (with a T) for the first time. They’re also the fastest company to get there!
Microsoft: 44 years
Apple: 42 years
Amazon: 24 years
Google: 21 years
Facebook: 17 years
GRIT’S TAKE: What do you do once you’ve made it to a trilly? Zuckerberg’s got his eyes set on augmented and virtual reality for the future of Facebook. Nearly 1 in 5 of every employee at the company is working in one of those areas!
Gas stations running out of gas
If you’re thinking about taking a road trip to celebrate the long weekend, I hope you’re driving an electric vehicle, because gas stations around the country are running dry!
It has nothing to do with prices being at 7-year highs (average price per gallon is ~$3.15), nor does it have anything to do with aggressively polite hackers holding a pipeline hostage.
The problem is a shortage of truck drivers! The National Tank Truck Carriers estimates between 20-25% of US tank trucks are sitting idly due to a lack of qualified drivers.
GRIT’S TAKE: OPEC+ met yesterday and the reported plan was an output hike of 400,000 barrels per day from August to December. Those numbers didn’t jive with the United Arab Emirates, though, so talks will resume today.
Meanwhile, oil has blown past $75, and even if the cartel does increase supply, it might not be enough to support US stockpiles that have been shrinking for 6 weeks running!
AMC is breaking records again!
Except for this time, it’s not because a few hedge funds got “squoze” by a group of Redditors, it’s because they’re actually projecting movies in their movie theatres. You know, their primary function as a business?
Thanks in large part to Vin Diesel’s Oscar-worthy “F9: The Fast Saga”, America’s favorite theatre operator welcomed more than 2M moviegoers over the weekend (this is the record they broke)!
GRIT’S TAKE: I’ll be honest, I completely forgot that AMC was, in fact, a real-life business and not just the meme de jour, but I’m taking this as another sign that re-opening is in full effect. And it’s not just on this side of the world: over 500k people watched a movie in an AMC theatre in Europe and the Middle East (another post-pandemic record).
No word yet on how many of them were shareholders who demanded to pop in the back to “make sure the theatres were running smoothly.”
UNDER THE RADAR...
Over 6 million adults in North America suffer from heart failure resulting in healthcare costs of over $30 billion annually. Cardiol Therapeutics is a clinical-stage pharmaceutical company that’s developed ultra-pure, high concentration CBD treatments to fight heart failure. Their shares are in the process of being uplisted to the NASDAQ!
New World is the FIRST + LARGEST augmented reality NFT platform. They partner with artists, celebrities (Drake, ever heard of him?), and companies to create opportunities on a global scale. And they just got scooped up by publicly traded Graph Blockchain!
Flora Growth is taking over the world…First: Colombia… Now: Europe! Flora signed an agreement to become a long-term strategic partner to Hoshi International; with experienced leadership and a global distribution network, agreement to serve as a major catalyst for revenue growth as Flora brings its brands and cannabis into the EU. Expect STRONG MARGINS at scale!
Blockchain Foundry gives you exposure to core blockchain infrastructure, stablecoins and NFTs without the steep price tag of other blockchain names. Real revenue, real customers and a real blockchain roadmap.
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