Happy Friday Everyone đ
Busy week at GRIT. We did a Bitcoin teach-in with a $5B money manager PLUS we spoke to the biggest VC investor of a $50B company weâve been waiting months to BUY⊠and FINALLY DID! Subscribe to our paid newsletter to find out which one!
FIVE things you need to know this week in 60 seconds. If youâre reading this but havenât subscribed, join our community of smart, fun & edgy investors đ
*as of 4pm ET, 7/8/21
1. MACROWhereâs the bitcoin volatility?
One of the biggest knocks on bitcoin has always been its HIGH volatility, but the past few weeks have given us a break from the madness. This finally gives institutional buyers a chance to really study bitcoin, understand its value as an asset, and evaluate how they could fit it into their portfolios.
A couple of days ago I spent an hour one-on-one with a $5B money manager teaching him about bitcoin. And I mean bitcoin 101, the very basics!
So when people say âitâs still too early for bitcoinâ that LITERALLY means itâs still too early for bitcoin.
GRITâS TAKE: During our call, I mentioned to him that although bitcoin isnât truly a currency yet, by market cap itâs actually the 16th biggest in the world. I also pointed out that bitcoin (and ethereum for that matter) is one of the most liquid assets in the world. Even more so than Apple, Amazon, Microsoft, and Facebook.
2. DEALS & IPOsPutting lipstick on a pig
Aeropostale, Forever 21, Nautica, Juicy Couture, JCPenney, Brooks Brothers, Lucky Brand Dungarees, Barneys, Eddie Bauer. What do all of these have in common?
They were all once iconic brands (seriously if you were a pop-star in the early 2000s and there arenât paparazzi pictures of you wearing a Juicy Couture tracksuit were you even a pop-star in the early 2000s?) that went defunct somewhere along the way.
Theyâre also all now thriving under Authentic Brandsâ leadership, which has rehabilitated over 30 iconic brands since opening in 2010.
The brand management company was most recently valued at $4B in 2019 by Blackrock, but more recent reports estimate the company is worth ~$10B. On Tuesday, they filed their S-1 for an IPO.
GRITâS TAKE: The business model: take iconic retailers whose better days are presumably behind them, slap some lipstick on them, and license the intellectual property (IP) to other firms, collecting 4-6% royalties in the process. Rinse, repeat, compound!
3. STOCK MARKETJ-Pow & Co. are inching towards tapering
The minutes from the FOMCâs June meeting didnât tell us too much, other than we might see tapering a tad sooner than expected.
The FED is not going to stop pouring $120B into Treasury and mortgage securities every month, but it seems like some officials are starting to come around to the idea that inflation may not be as transitory as J-Pow would have us believe.
GRITâS TAKE: JOLTs data showed 9.2M job openings in May, but 3.6M employees also quit (2.5%). Remember last week we mentioned how the shortage of truck drivers was putting upward pressure on gas prices? Nearly 860k of those 3.6M were from trade, transportation, and utilities.
The problem remains: ironically, job openings and unemployment are simultaneously up. That should change soon with the combination of unemployment benefits ending in September, and employers countrywide boosting compensation to lure workers.
4. COMMODITIESI found the bitcoin volatility, itâs in OIL
This week, OPECâs talks crumbled and ended in the equivalent of a 2am McDonaldâs brawl. Meanwhile, oil prices seem to have absorbed the missing bitcoin volatility with prices making a 6-year high before coming crashing down after the Cartelâs kerfuffle.
Whatâs the hold-up?
The United Arab Emirates (UAE) wants to produce more oil because theyâve spent billions into boosting production capacity and Saudi Arabiaâs new quotas donât allow them to make full use of those expenditures.
This places the oil market stuck firmly in âno manâs land.â
GRITâS TAKE: One of the Biden administrationâs biggest policy goals is combatting climate change by reducing oil and gas production to reduce fossil fuels emissions.
Know what a bigger goal is? NOT having the middle-class upset at you over sky-high gas prices at the pump! The White House has urged OPEC to reopen the taps and boost production in an effort to contain rising prices.
5. ENTERTAINMENTHow to get rich in the stock market: join Congress
Forget immigration reform, affordable health care, civil rights, and climate change, the Pelosis need to open a family office!
This week, Nancy Pelosi disclosed that her husband, Paul, scored big tendies after exercising some Alphabet call options, which were purchased just a week before Congress advanced 6 antitrust bills (of which Alphabet was a target). Shares then increased 3.2% on the decision. Hmmm đ€
Pelosi also made another big (suspiciously timed) bet in May on Amazon call options expiring in June 2022.
And what do you know? It just so happens that this week the Department of Defense canceled their $10B JEDI cloud-services contract with Microsoft in favor of a âsplit-dealâ that would include both Microsoft and, you guessed it, Amazon! Double hmmm đ€đ€
GRITâS TAKE: Saying that the Pelosis should start a family office was only a half-joke. Their average return from stocks and options over the last year is 56.15% compared to the S&Pâs meteoric 36%.
Below are all their moves, which look more like a Robinhood HODLerâs and less like a member of Congressâ. YOLO indeed, Madame Speaker!
UNDER THE RADAR...
Donât buy Bitcoin, earn it. Earn 1.5% back in Bitcoin on every purchase with the BlockFi Bitcoin Rewards Credit Card. There are no fees* and you earn daily interest in crypto on your Bitcoin rewards. Click here to learn more - Terms Apply
Calling all bankers! Have a client that is looking for a large injection of cash? Did you know you can make up to $150,000 in UPFRONT commission with JUST 1 referral? Let me introduce you to TVT Capital. A market leader in bridge loans of up to US$15MM in industries like O&G, Cannabis, Law Firms and Wholesalers. Contact them NOW!
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 thatâs 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 worldâŠFirst: 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!
*This is sponsored advertising content
Skate to where the puck is going !
Now you can watch how a pro invests her real money in real-time with premier access to Genevieveâs investment portfolio!
What will you get?
Genevieveâs Stock Positions in Real-Time
Her Buys & Sells Daily
Private Deal Flow (seed rounds aka foundersâ rounds and choice private placements!)
Not only that, every month youâll get a newsletter explaining the rationale behind the major changes in her portfolio so that youâre not just following along, youâre LEARNING!
Sign-up NOW to follow her moves!
*SOURCES
1. Kaiko, Bloomberg, CoinShares
2. Bloomberg, Business Insider
3. Business Insider, WSJ
4. WSJ, Bloomberg
5. Zerohedge. Bloomberg, UnusualWhales
Disclaimer: Grit Capital Corporation is a publisher of financial information, not an investment advisor. We rely upon the âpublisherâs exclusionâ from the definition of investment advisor under Section 202(a)(11)(D) of the Investment Advisors Act of 1940 and corresponding state securities laws. We also rely on the exemption from registration under Section 34 of the Securities Act (Ontario) and its equivalents in other Canadian jurisdictions.
We do not provide personalized or individualized investment advice or advice that is tailored to the needs of any particular recipient. Any information provided as part of the services is impersonal and not specific to any personâs investment needs. You acknowledge and agree that no content published or otherwise provided as part of any service constitutes a personalized recommendation or advice regarding the suitability of, or advisability of investing in, purchasing or selling any particular investment, security, portfolio, commodity, transaction or investment strategy. To the extent that any of the content may be deemed to be investment advice or recommendations in connection with a particular security, such information is impersonal and not tailored to the investment needs of any specific person.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Grit Capital Corporation does not provide individual investment counseling, act as an advisor, or individually advocate the purchase or sale of any security or investment. You assume the entire cost and risk of any investing or trading you choose to undertake. You are solely responsible for making your own investment decisions.
Grit Capital Corporation is NOT a registered investment advisor or dealer. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments discussed in this publication should only be made/considered after consulting with your investment advisor and only after reviewing the prospectus, other offering materials or financial statements of the issuer in question. Reading and using this website, newsletter or any content created by Grit Capital.
Corporation you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.
| 13 |