Lori Stevenson, Author at Global Investment Daily https://globalinvestmentdaily.com/author/lori/ Global finance and market news & analysis Mon, 18 Nov 2024 23:39:32 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.1 Post-Election Highs Meet Powell’s Reality Check https://globalinvestmentdaily.com/post-election-highs-meet-powells-reality-check/ https://globalinvestmentdaily.com/post-election-highs-meet-powells-reality-check/#respond Mon, 18 Nov 2024 23:39:31 +0000 https://globalinvestmentdaily.com/?p=1285 Markets Cool as Rates Rise and Powell Speaks After the post-election rally set U.S. stocks soaring, the market hit a speed bump last week. Federal Reserve Chair Jerome Powell reminded investors on Thursday that rate cuts aren’t a given, injecting caution into a market that had been buoyant since Donald Trump’s re-election victory on November […]

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Markets Cool as Rates Rise and Powell Speaks

After the post-election rally set U.S. stocks soaring, the market hit a speed bump last week. Federal Reserve Chair Jerome Powell reminded investors on Thursday that rate cuts aren’t a given, injecting caution into a market that had been buoyant since Donald Trump’s re-election victory on November 5.

The resilient inflation data, Powell’s steady hand, and a sharp rise in Treasury yields have sent markets back into evaluation mode. Major indexes took a hit, with the S&P 500 down 2.2% and the tech-heavy Nasdaq losing 3.3%. Even the Russell 2000, a standout performer during the Trump rally, tumbled more than 4%.

This week’s newsletter dives into the complex dynamics driving these shifts. How are rising yields influencing stock valuations? What do Powell’s comments signal about the Fed’s approach? In “This Week I Learned,” we’ll explore why Treasury yields are critical to asset allocation. And for a humor break? The Fun Corner tackles market pullbacks with a witty twist.

Markets may be cooling, but knowledge remains your best tool. Let’s dissect the trends.

This Week I Learned…

Treasury Yields: The Backbone of Asset Pricing

This week, I learned why Treasury yields hold such sway over markets. At their core, they represent the risk-free rate—the foundation on which most asset valuations are built.

When Treasury yields rise, the government must offer higher returns to attract buyers. This, in turn, raises borrowing costs for corporations and consumers alike. Rising yields also force investors to reassess equity valuations, as higher rates make future cash flows from stocks less appealing.

For example, stocks wobbled when the 10-year yield briefly crossed 4.5% last week. Why? Because investors began questioning whether equities could maintain their appeal in a higher-rate environment. Larry Adam of Raymond James pointed out that yields might not derail the market entirely as long as earnings remain robust and the economy avoids a hard landing. But in the short term, yield spikes can create turbulence.

Understanding Treasury yields isn’t just for bond traders—it’s a key to navigating shifts across all asset classes.

The Fun Corner

Pullbacks and Punchlines

Q: Why don’t markets like tight monetary policy?
A: Because it takes the “interest” out of their gains!

The market’s pullback after Powell’s comments highlights a timeless lesson: markets can pivot on a dime. But for long-term investors, temporary dips are often just noise. Remember: a pullback isn’t the end—it’s just the market catching its breath.

Powell, Yields, and Trump’s Shadow: Market Crossroads

The post-election rally was bound to pause, and last week provided the catalyst. After weeks of surging gains, Federal Reserve Chair Jerome Powell’s cautious tone served as a reality check for investors. With Treasury yields on the rise and inflation data staying firm, Powell signaled that rate cuts aren’t guaranteed—a message that hit differently amid waning euphoria.

The result? A sharp pullback across major indexes. The S&P 500 fell 2.2%, while the Russell 2000—a proxy for Trump’s economic policy optimism—suffered a 4% loss. Treasury yields, particularly the 10-year note, emerged as a central player. Briefly breaching the 4.5% mark, yields highlighted investor concerns about higher borrowing costs and shrinking equity premiums.

Why does this matter? Rising yields challenge equity markets by increasing the risk-free rate, forcing investors to reassess valuations. Analysts like Larry Adam argue that as long as earnings remain intact and the economy avoids a hard landing, the impact may be manageable. However, near-term sentiment remains shaky.

Adding complexity are Trump’s fiscal policies. From tariffs to tax cuts, these moves have stirred fears of reflation, with analysts debating their role in driving yields higher. Fed policymakers, wary of fiscal uncertainty, have adopted a flexible stance. As Krishna Guha of Evercore ISI notes, the Fed’s focus on “data dependence” now includes unspoken concerns tied to Trump’s agenda.

For investors, the current environment calls for vigilance. Markets are balancing optimism over earnings with caution around higher rates. Diversification, patience, and an eye on Fed policy remain key.

The Last Say

Between Optimism and Reality

This week’s pullback in stocks serves as a reminder that markets are never linear. As Treasury yields rise and the Fed emphasizes caution, investors must grapple with a more challenging landscape.

Despite the drop, the market’s longer-term outlook hinges on earnings strength and economic resilience. Powell’s message reinforces the Fed’s commitment to flexibility—a hedge against inflation surprises and fiscal uncertainty. But in the near term, sentiment will remain tethered to the interplay between rates, inflation, and policy signals.

Thank you for joining this week’s The Market Pulse. See you next week!

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Market Turning Point? The Steepening Yield Curve https://globalinvestmentdaily.com/market-turning-point-the-steepening-yield-curve/ https://globalinvestmentdaily.com/market-turning-point-the-steepening-yield-curve/#respond Mon, 29 Jul 2024 15:31:11 +0000 https://globalinvestmentdaily.com/?p=1232 Welcome to this week’s edition of The Market Pulse, where we look into the most pressing trends and pivotal moments right now in the markets. This week, we’re poised on the edge of a potential major shift in the market dynamics. With economic data taking center stage, the spotlight is on how job data and […]

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Welcome to this week’s edition of The Market Pulse, where we look into the most pressing trends and pivotal moments right now in the markets. This week, we’re poised on the edge of a potential major shift in the market dynamics. With economic data taking center stage, the spotlight is on how job data and central bank decisions might drive the yield curve’s next move. Will we witness a steepening that signals further economic adjustments, or will the current trends plateau?

In this issue, we explore how the job market’s subtle shifts could be the harbinger of broader economic changes. We’ll dissect the forecasts for non-farm payrolls, unemployment rates, and average earnings to understand what they mean for investors. Plus, we’ll take a closer look at the Bank of Japan and the Federal Reserve’s upcoming meetings and their potential impacts.

This Week I Learned…

Understanding the Yield Curve: A Key Market Indicator

This week, I learned about the intricacies of the yield curve and its profound implications for investors. Often regarded as a barometer of economic health, the yield curve plots the interest rates of bonds having equal credit quality but differing maturity dates. When investors talk about a “steepening yield curve,” they refer to a scenario where the gap between long-term and short-term interest rates widens.

But why does this matter? A steepening yield curve typically signals investor confidence in future economic growth. Conversely, a flattening or inverted yield curve can indicate economic slowdown or recession concerns. This week’s market pivot hinges on job data and central bank meetings, which could either reinforce or challenge the current yield curve trends.

Understanding this concept is crucial for investors. A steepening curve can suggest higher future inflation and economic growth, prompting shifts in investment strategies, such as moving from bonds to stocks. Conversely, an inverted curve might lead to more conservative approaches.

Knowing how to interpret these signals helps investors align their portfolios with broader economic trends, making informed decisions that can safeguard and grow their investments.

The Fun Corner

The Steepening Yield Curve

Why did the bond investor bring a ladder to the stock exchange?

Because they heard the yield curve was steepening and wanted to see the top!

Okay, so maybe it’s a bit of a dad joke, but it highlights an important concept. When the yield curve steepens, it means long-term interest rates are rising faster than short-term rates. This can signal expectations of economic growth and inflation, making bonds less attractive and potentially pushing investors towards stocks. 

So while it’s a lighthearted quip, it serves as a reminder: Understanding the yield curve and its movements can be a valuable tool when investing in the markets, and every advantage you can get, can get you closer to your investment goals.

This Week May Be a Big Pivot Point for the Market

This week could mark a significant turning point for the markets, driven primarily by economic data rather than central bank meetings. The yield curve – that all-important predictor of economic health – is showing signs of steepening, largely due to recent trends in the job market.

What does this mean? A steepening yield curve usually happens when the labor market starts to cool down. While analysts predict a small uptick in non-farm payrolls for July, with steady unemployment and earnings growth, any surprises in job openings or unemployment claims could throw a wrench in the works and send the yield curve in a different direction. Keep a close eye on the Job Openings and Labor Turnover Survey (JOLTS) data, as it might reveal unexpected shifts in the job market.

Adding to the intrigue, the Federal Reserve and Bank of Japan have upcoming meetings. Their decisions on interest rates and monetary policy will also play a significant role in shaping the yield curve. A hint of rate cuts from the Fed could further steepen the curve as short-term rates fall faster than their long-term counterparts.

And don’t forget about the yen carry trade! A steeper U.S. yield curve could make the yen stronger, which could trigger even more market volatility.

This is a crucial moment for investors. This week’s data will either confirm what we’re already seeing or set the stage for a whole new market direction. Pay attention, as these signals will be key indicators of what’s to come in the economy and the markets.

The Last Say

Steep Curves Ahead: Navigating This Week’s Market Dynamics

As we wrap up this week’s edition of The Market Pulse, it’s clear that we’re at a potential inflection point. The yield curve’s steepening, driven by nuanced job data and central bank decisions, could herald significant market shifts. Investors must stay attuned to these signals, as they will shape the economic landscape in the coming months.

Key takeaways include the importance of job market indicators and central bank policies. This week’s job data will be critical in confirming or challenging the current trends, while the Fed and Bank of Japan meetings will add further clarity to the economic outlook.

Always be ready to adjust your investment strategies as we navigate these pivotal moments. Understanding the yield curve and its implications will be essential for making savvy decisions in this dynamic environment. Until next week, keep a close eye on the market’s movements and be prepared for whatever comes next.

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Is Your Portfolio Ready for Trump 2.0? https://globalinvestmentdaily.com/is-your-portfolio-ready-for-trump-2-0/ https://globalinvestmentdaily.com/is-your-portfolio-ready-for-trump-2-0/#respond Tue, 16 Jul 2024 14:44:23 +0000 https://globalinvestmentdaily.com/?p=1225 Welcome to this week’s edition of The Market Pulse, your trusted source for dissecting the latest market trends and economic shifts. This week, we delve into the implications of a potential Trump 2.0 presidency and its expected impact on the investment landscape. The political horizon is once again abuzz with speculation, as the likelihood of […]

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Welcome to this week’s edition of The Market Pulse, your trusted source for dissecting the latest market trends and economic shifts. This week, we delve into the implications of a potential Trump 2.0 presidency and its expected impact on the investment landscape.

The political horizon is once again abuzz with speculation, as the likelihood of Donald Trump’s return to the Oval Office increases. A Trump presidency promises significant shifts in trade policies, particularly with China, which could usher in a new era of tariffs and economic adjustments. But what does this mean for your investments? And how can you stay ahead of the curve?

Today, we’ll explore the nuanced impacts of these potential changes. From inflation and interest rates to stock market predictions, our main article breaks down the critical elements investors need to watch. In our “This Week I Learned” section, we’ll reveal some surprising insights about tariff policies and their broader economic repercussions. And of course, our “Fun Corner” is back with a humorous yet insightful look at the quirks of market reactions.

Stay tuned as we unpack these topics and more, offering you the tools and knowledge to navigate these uncertain times with confidence.

This Week I Learned…

Understanding Tariffs and Their Economic Impact

This week I learned about the intricate dance of tariffs and their ripple effects on the global economy. When President Trump floated the idea of imposing a 60% tariff on Chinese goods, it sent shockwaves through markets. Tariffs, essentially taxes on imports, can significantly influence inflation and interest rates.

Higher tariffs mean higher costs for imported goods, which can drive up consumer prices and inflation. This, in turn, puts pressure on the Federal Reserve to adjust interest rates, potentially leading to rate hikes. Such measures could stymie economic growth, affecting everything from corporate profits to GDP.

Moreover, the proposed tariffs would likely result in a stronger US dollar as a safe-haven asset, making US exports more expensive and less competitive globally. Understanding these dynamics helps investors anticipate market shifts and adjust their strategies accordingly.

The Fun Corner

Bull Markets and Bear Hugs

Did you hear about the Wall Street trader who decided to become a zookeeper? He figured it would be easier to handle actual bulls and bears than their market counterparts!

Speaking of animal-themed market wisdom, here’s a tidbit that might make you chuckle: The terms “bull” and “bear” market reportedly originated from the way these animals attack. Bulls thrust their horns upward, while bears swipe downward with their paws.

Interestingly, in the past week, we’ve seen the market behaving a bit like a confused chameleon, unsure whether to don bull horns or bear claws. With Trump’s tariff talks causing economic experts to butt heads faster than mountain goats in mating season, investors have been left scratching their heads.

But here’s a fun fact to lighten the mood: The New York Stock Exchange has a backup generator that can keep trading going for a week without external power. Talk about being prepared! It seems Wall Street took the Boy Scout motto to heart, ensuring that even if the lights go out, the trading never stops. Now that’s what we call a true market illuminati!

Trump’s Trade Winds – What a Trump 2.0 Presidency Means for the Markets

As Donald Trump’s chances of re-election rise, so do the questions about his potential economic policies. A hallmark of his previous tenure was the trade war with China, characterized by significant tariffs that reshaped global trade dynamics.

Trump’s proposal to impose a universal 60% tariff on Chinese imports could have profound implications. According to Capital Economics, such a move would likely reignite inflationary pressures, pushing up Treasury yields and leading to higher interest rates. This scenario could dampen stock market performance, especially if inflation outpaces economic growth.

Goldman Sachs analysts have noted that these tariffs would disproportionately hurt lower-income Americans, who spend a larger portion of their income on goods. The resulting inflation would erode purchasing power, leading to decreased consumer spending and slower GDP growth. In contrast, the wealthiest 1% might benefit from related tax cuts, widening the economic divide.

Despite these potential headwinds, the ongoing AI hype could provide a silver lining. Some analysts predict that the enthusiasm around AI advancements might create a stock market bubble, partially offsetting the negative impacts of a trade war.

In summary, while a Trump 2.0 presidency could introduce significant challenges, savvy investors can navigate these turbulent waters by staying informed and adaptable.

The Last Say

Dealing With Uncertainty in a Potential Trump Administration

As we wrap up this week’s edition of The Market Pulse, the debate over Trump’s fiscal policies underscores a broader theme of uncertainty in the markets. The possibility of significant tariff increases and a drastic overhaul of the income tax system presents both risks and opportunities for investors.

Key Takeaways:

  1. Be Cautious with Tariffs: While tariffs aim to protect domestic industries, they often lead to higher consumer prices and potential trade conflicts. Investors should monitor these developments closely and consider their impact on inflation and supply chains.
  2. Legislative Influence: The role of Congress will be crucial in shaping the extent of these policies. Investors should pay attention to political dynamics and potential compromises that could moderate the proposed measures.
  3. Historical Lessons: Looking back at past tariff implementations, such as the Smoot-Hawley Act, can provide valuable insights into potential outcomes and market reactions.

As we navigate these uncertain waters, staying informed and adaptable is key. Whether you’re optimistic about Trump’s policies or share the concerns of his critics, understanding the potential impacts and preparing for various scenarios will help you make smarter investment decisions.

Until next week, stay sharp and stay invested.

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Bitcoin: Beyond the Boom – The Next Wave of Catalysts https://globalinvestmentdaily.com/bitcoin-beyond-the-boom-the-next-wave-of-catalysts/ https://globalinvestmentdaily.com/bitcoin-beyond-the-boom-the-next-wave-of-catalysts/#respond Tue, 28 May 2024 19:29:53 +0000 https://globalinvestmentdaily.com/?p=1201 Bitcoin’s been on a rollercoaster this year, and it seems like the ride’s not over yet. We’ve seen record highs, whispers of regulation, and a crypto world constantly reinventing itself. In this week’s edition of The Market Pulse, we’re looking at the four catalysts that could catapult Bitcoin to its next peak. Interest rates, political […]

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Bitcoin’s been on a rollercoaster this year, and it seems like the ride’s not over yet. We’ve seen record highs, whispers of regulation, and a crypto world constantly reinventing itself. In this week’s edition of The Market Pulse, we’re looking at the four catalysts that could catapult Bitcoin to its next peak.

Interest rates, political landscapes, and even Bitcoin’s own evolving technology – we’ll dissect how each of these elements could shape the cryptocurrency’s future. So, whether you’re a seasoned crypto investor or just dipping your toes into the digital waters, this deep dive is for you.

We’ll also share insights to sharpen your investment smarts, and perhaps learn something new about Bitcoin. Plus, we’ve got a few fun facts and tidbits sprinkled throughout to keep things interesting. Because who said finance can’t be fun?

Settle in and get ready to uncover the forces that could set Bitcoin’s next rally in motion.

This Week I Learned…

Bitcoin Beyond the Hype: The Tech Transformer

Ever think of Bitcoin as more than just a digital piggy bank? It turns out it’s a bit of a chameleon, constantly adapting and expanding its skill set. This isn’t your grandpa’s cryptocurrency.

Bitcoin’s blockchain, the currency’s technology, is undergoing a metamorphosis. While it was originally designed as a secure way to transfer money digitally, developers are now building upon this foundation to create a new world of possibilities.

Think of it like this: if Bitcoin’s blockchain were a car, it started as a reliable sedan for getting from point A to B (i.e., transferring funds). But now, innovators are transforming it into a multifunctional vehicle with features like a built-in entertainment system (NFTs) and even the potential for self-driving capabilities (smart contracts).

One of the most exciting developments is using Bitcoin’s blockchain for things like non-fungible tokens (NFTs). These unique digital assets can represent anything from artwork to music to virtual real estate, and they’re being bought and sold on Bitcoin’s blockchain like hotcakes.

Another area of innovation is the development of “smart contracts” on the Bitcoin blockchain. These self-executing contracts could automate everything from insurance claims to supply chain management, making processes more efficient and transparent.

So, what does this all mean for you, the investor? It means that Bitcoin’s potential extends far beyond its current role as a store of value or speculative investment. It’s evolving into a versatile platform for all sorts of digital interactions, which could significantly increase its long-term value.

The Fun Corner

Bitcoin’s Identity Crisis: Cryptocurrency or Collectible?

If Bitcoin were a high schooler, it would have a serious identity crisis. Is it a digital currency meant for everyday transactions, or is it a shiny collectable to hoard and admire?

With the introduction of the Ordinals protocol and the ability to create NFTs on the Bitcoin blockchain, the lines are getting blurrier. Bitcoin is simultaneously trying to be the star quarterback and the lead in the school play.

Who knows, maybe Bitcoin is just a multi-talented overachiever, but it makes things interesting in the crypto world. We’ll watch to see which personality ultimately wins: the practical payment system or the digital art connoisseur.

Perhaps, like many of us, it’ll embrace a little bit of both. Either way, grab your popcorn and enjoy the show!

Bitcoin’s Next Act: What’s Fueling the Anticipation for a New Rally?

Bitcoin’s 2023 performance has been nothing short of impressive, with milestones like spot ETF approvals and the halving event pushing its value to new heights. But as these catalysts fade into the rearview mirror, the question on everyone’s mind is: what’s next?

The answer, it seems, lies in a confluence of factors. Analysts are eyeing a quartet of potential game-changers that could reignite Bitcoin’s upward momentum:

  1. The Fed’s Balancing Act: The Federal Reserve’s potential interest rate cuts could spark a broader market rally, lifting Bitcoin along with it. With a history of thriving in low-interest-rate environments, Bitcoin’s performance may hinge on the Fed’s monetary policy decisions.
  2. Regulatory Winds of Change: The regulatory landscape for cryptocurrencies is in flux, with the possibility of new stablecoin legislation and a recently passed regulatory framework in the House. While regulatory clarity could boost investor confidence, the outcome of the upcoming presidential election may be the ultimate decider.
  3. Election-Year Expectations: The political arena is heating up, and the cryptocurrency industry is watching closely. A potential shift in presidential leadership could bring a friendlier regulatory stance, potentially fueling Bitcoin’s growth. Additionally, concerns about the national debt under either candidate may lead investors to seek alternative havens like Bitcoin.
  4. Bitcoin’s Expanding Toolkit: Bitcoin is no longer just a digital currency. It’s evolving into a versatile platform, thanks to developments like the Ordinals protocol, which allows for the creation of NFTs on the Bitcoin blockchain. This expanded functionality is attracting both investor interest and venture capital.

As Bitcoin transforms from a simple store of value to a multifaceted digital asset, its future trajectory becomes increasingly intriguing. The convergence of these four catalysts could set the stage for Bitcoin’s next big act, and investors are watching with bated breath.

The Last Say

Bitcoin’s Uncharted Territory

The cryptocurrency arena is dynamic, and Bitcoin, as its pioneer, is leading the charge. This week’s Market Pulse has highlighted the forces at play in Bitcoin’s current direction. From the Fed’s monetary policy decisions to the potential regulatory shifts following the upcoming elections, the path ahead is anything but predictable.

However, perhaps the most intriguing development is Bitcoin’s own evolution. As it transcends its original purpose as a digital currency and embraces new functionalities, its potential for growth and impact expands exponentially.

Whether you’re a seasoned crypto enthusiast or a curious observer, it’s clear that Bitcoin’s journey is far from over. The coming months and years promise to be a fascinating chapter in the ongoing narrative of digital assets, and we’ll be here to guide you through it every step of the way. Stay tuned to The Market Pulse as we continue to explore the world of cryptocurrency and finance.

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The Market Pulse: Don’t Be a Meme Stock Meme – Investing Lessons from the GameStop Frenzy https://globalinvestmentdaily.com/the-market-pulse-dont-be-a-meme-stock-meme-investing-lessons-from-the-gamestop-frenzy/ https://globalinvestmentdaily.com/the-market-pulse-dont-be-a-meme-stock-meme-investing-lessons-from-the-gamestop-frenzy/#respond Tue, 21 May 2024 01:16:29 +0000 https://globalinvestmentdaily.com/?p=1197 Deja vu, anyone? GameStop, the video game retailer that became a meme stock sensation in 2021, is back in the spotlight – and investors are once again feeling the sting. This time, the losses are even more staggering, with a whopping $13.1 billion evaporating in just three days. In this special edition of The Market […]

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Deja vu, anyone? GameStop, the video game retailer that became a meme stock sensation in 2021, is back in the spotlight – and investors are once again feeling the sting. This time, the losses are even more staggering, with a whopping $13.1 billion evaporating in just three days.

In this special edition of The Market Pulse, we’ll take a deep dive into the latest GameStop frenzy, examining the factors that fueled the surge, the consequences for investors, and the valuable lessons learned (or perhaps re-learned) along the way.

We’ll also be sharing insights on how to make smarter investment decisions, offering some lighthearted trivia to brighten your day, and more. So grab a cup of coffee and settle in for a rollercoaster ride through the world of meme stocks, market madness, and the important reminder that investing isn’t a game.

This Week I Learned…

Meme Stocks: More Drama Than Investment Strategy

Last week, we witnessed the sequel to the GameStop saga, and it wasn’t a box-office hit for investors. What did we learn?

Lesson 1: Meme stocks are like a rollercoaster – thrilling, but not for the faint of heart.

Sure, the quick gains are tempting, but the equally swift crashes can leave you with a serious case of financial whiplash. Remember, investing isn’t a get-rich-quick scheme; it’s a marathon, not a sprint.

Lesson 2: Even companies can play the game.

GameStop saw the meme stock frenzy as an opportunity to raise capital, even as its core business flounders. This should serve as a warning to investors – don’t assume a company’s actions always align with your best interests.

Lesson 3: The “dumb money” isn’t always dumb.

While the term might be catchy, it’s overly simplistic. Many investors caught up in the GameStop frenzy are simply looking for a way to participate in the market, even if their strategies are unconventional. Don’t underestimate the power of collective action, even if it seems irrational at times.

Lesson 4: Fundamentals still matter.

No matter how much hype surrounds a stock, its underlying business performance is what ultimately determines its value. Don’t get blinded by the buzz – always do your research and understand what you’re investing in.

Last week’s GameStop episode is a cautionary tale about the dangers of herd mentality and the importance of staying grounded in sound investment principles. It’s a reminder that while the market can be exciting, it’s also unforgiving. So, next time you’re tempted to jump on the meme stock bandwagon, remember these lessons and proceed with caution.

The Fun Corner

The Meme Stock Diet: Lose Billions in Just Three Days!

Tired of those extra billions weighing you down? Look no further than the GameStop meme stock diet!

This revolutionary program promises rapid weight loss in your portfolio, with absolutely no exercise or financial discipline required. Simply follow these easy steps:

  1. Ignore fundamentals: Who needs boring stuff like revenue and profit when you have rocket emojis?
  2. Embrace FOMO: Fear of missing out is your new best friend. Buy high, sell low – it’s the latest trend!
  3. Trust the hype: Forget about research and analysis. Just listen to that random guy on the internet who calls himself “Roaring Kitty.”

Results may vary, but based on recent events, you can expect to shed billions in just a few days! Side effects may include regret, frustration, and the urge to throw your phone out the window.

Disclaimer: This diet is not approved by financial advisors or anyone with common sense. Consult a professional before making any investment decisions. And remember, always wear a helmet when riding the meme stock rollercoaster – it’s a wild ride!

GameStop’s Second Act: A $13.1 Billion Lesson in Meme Stock Madness

It appears the sequel to the GameStop saga is just as dramatic as the original, but with a far less happy ending for many investors.

In a matter of days, the video game retailer’s stock skyrocketed a dizzying 271% thanks to a vague social media post from influencer “Roaring Kitty.” But just as quickly as it soared, it plummeted, leaving investors who bought in late with a collective $13.1 billion loss.

This financial rollercoaster highlights the perils of blindly following the meme stock crowd. As market analyst Tobi Opeyemi Amure aptly noted, the recent events are “reminiscent of the 2021 frenzy,” serving as a stark reminder of the risks inherent in chasing hype over fundamentals.

Even GameStop seems to be aware of the precarious situation. The company is seizing the opportunity to sell additional shares, potentially raising $900 million. While this move might benefit the company in the short term, it does little to address the underlying issues plaguing its core business.

As industry analyst Michael Pachter of Wedbush points out, GameStop’s long-term prospects are far from rosy. With a 12-month price target of just $7 per share, he predicts further declines for the struggling retailer.

This GameStop episode underscores the importance of making informed investment decisions. While the allure of quick gains can be tempting, it’s crucial to remember that the market is not a casino. Don’t let fear of missing out drive your investment strategy. Do your research, understand the risks, and always prioritize long-term financial goals over short-term speculation.

In a world of meme stocks and market manias, staying grounded in reality is the key to success.

The Last Say

Meme Mania: A Spectacle, Not a Strategy

This week’s GameStop saga serves as a stark reminder that the market is not a game. While the draw of meme stocks and quick riches can be enticing, it’s crucial to remember that investing is a long-term game, not a short-term gamble.

The “dumb money” might have lost billions, but the lessons learned are invaluable. Fundamentals matter, hype fades, and the market is unforgiving to those who prioritize speculation over sound investment principles.

So, as the dust settles on this latest meme stock frenzy, let’s commit to making informed decisions, prioritizing long-term financial goals, and remembering that the most successful investors are those who stay grounded in reality, even when the market seems to defy logic.

Until next time, keep your wits about you, and may your investments be wise and prosperous.

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The Bold Future of Hims & Hers Health Inc. https://globalinvestmentdaily.com/the-bold-future-of-hims-hers-health-inc/ https://globalinvestmentdaily.com/the-bold-future-of-hims-hers-health-inc/#respond Tue, 27 Feb 2024 15:12:29 +0000 https://globalinvestmentdaily.com/?p=1145 Global Investment Daily Featured Stock: Hims & Hers Health Inc. In the labyrinth of financial markets, where the allure of fast-paced tech stocks often overshadows the steady drumbeat of more traditional sectors, healthcare stocks tend to whisper rather than shout for investors’ attention.  Traditionally viewed as the tortoises in a race dominated by hares, these […]

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Global Investment Daily Featured Stock: Hims & Hers Health Inc.

In the labyrinth of financial markets, where the allure of fast-paced tech stocks often overshadows the steady drumbeat of more traditional sectors, healthcare stocks tend to whisper rather than shout for investors’ attention. 

Traditionally viewed as the tortoises in a race dominated by hares, these low-beta stalwarts of the consumer staples sector are seldom the protagonists in tales of explosive growth or seismic market shifts. 

Yet, as we stand at the crossroads of healthcare and technology, a transformation is underway, turning erstwhile whispers into a clarion call for investors. This metamorphosis is epitomized by the ascent of Hims & Hers Health Inc. (NYSE: HIMS), a company that marries the steadfast demand of healthcare with the dynamism of tech, creating a narrative that is as compelling as it is investable.

A New Vanguard in Healthcare

Hims & Hers Health Inc. has carved a niche for itself by addressing some of the most intimate and challenging health and wellness issues facing consumers today. From hair loss to the intricacies of personal relationships, the company has not only de-stigmatized these conversations but also commodified solutions, making them accessible through the click of a button. 

Its ubiquitous presence across social media platforms, from Instagram to YouTube, has not only amplified its brand but also solidified its demand in the market, a testament to its savvy understanding of consumer behavior in the digital age.

This blend of healthcare and technology has not gone unnoticed by Wall Street, with titans like The Goldman Sachs Group (NYSE: GS) and Morgan Stanley (NYSE: MS) deploying their considerable analytical prowess in a “top-down analysis” to uncover the brightest gems in the economy. Hims & Hers stands out as a beacon, promising outsized returns in a sector that is witnessing a renaissance of sorts.

The Economic Tailwinds

Recent data revealing a surge in private healthcare sector jobs, accounting for nearly 20% of the new roles added to the U.S. economy, underscores a broader trend. The healthcare sector, buoyed by an infusion of talent and innovation, is expanding its horizons, setting the stage for companies like Hims & Hers to redefine the landscape. 

Despite the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) trailing the S&P 500 by 13.2% over the past year, the gap presents not a warning but an opportunity for astute investors to capitalize on the sector’s imminent rebound.

A Closer Look at the Financials

The allure of Hims & Hers is not just in its business model or market position but is vividly reflected in its financial health. With over 90% of its revenue generated through recurring streams, the company enjoys a financial stability enviable in the volatile world of tech startups. This is a narrative of growth underpinned by a robust subscription or membership model, reminiscent of the success stories like Ulta Beauty Inc. (NASDAQ: ULTA), known for its impressive retention rates and steady upward trajectory.

The company’s recent quarterly results further bolster the bullish case for Hims & Hers. A staggering 57% year-over-year revenue growth, fueled by a 56% increase in its subscriber base, paints a picture of a company on the ascent. 

Operating at a 75% gross margin, Hims & Hers is in an enviable position to reinvest in its growth, feeding a virtuous cycle of expansion and innovation that Wall Street analysts are keen to endorse.

The Verdict

With analysts projecting an eye-catching EPS growth rate of 162.5% over the next 12 months—a figure that starkly contrasts with the more modest expectations for its peers—the market’s enthusiasm for Hims & Hers is well-founded. 

The company not only stands as a testament to the transformative potential of integrating technology with healthcare but also serves as a beacon for investors searching for growth in a sector traditionally characterized by its stability rather than its dynamism.

In the unfolding narrative of Hims & Hers Health Inc., we find a compelling investment thesis. It’s a story of innovation, resilience, and the unyielding power of technology to redefine the boundaries of what’s possible. As we look to the future, Hims & Hers does not just represent a stock to watch but a harbinger of the evolving landscape of healthcare investment, where technology and wellness converge to create unparalleled opportunities for growth and impact. In the bustling corridors of the Wall Street War Room, Hims & Hers Health Inc. is not just a topic of discussion but a symbol of the future, a future where healthcare stocks are no longer the market’s quiet participants but its most vociferous and vibrant contenders.

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2024 Sector Watch: Semiconductors https://globalinvestmentdaily.com/2024-sector-watch-semiconductors/ https://globalinvestmentdaily.com/2024-sector-watch-semiconductors/#respond Sat, 20 Jan 2024 11:41:35 +0000 https://globalinvestmentdaily.com/?p=1129 2024 has the potential to emerge as a banner year for the semiconductor stock sector, fueled by a convergence of factors that promise to reshape the industry landscape.  With increasing demand for advanced electronic devices, the continued expansion of 5G networks, and the proliferation of artificial intelligence applications, semiconductor companies find themselves at the heart […]

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2024 has the potential to emerge as a banner year for the semiconductor stock sector, fueled by a convergence of factors that promise to reshape the industry landscape. 

With increasing demand for advanced electronic devices, the continued expansion of 5G networks, and the proliferation of artificial intelligence applications, semiconductor companies find themselves at the heart of a technological revolution. 

As the world becomes more digitally connected and reliant on cutting-edge technology, semiconductor stocks are poised to ride a wave of growth and innovation, positioning themselves for a remarkable year ahead.

After a brief dip in early January, the Van Eck Semiconductor ETF (SMH) continued on its bullish trajectory that has boosted share prices an impressive 78% since January 2023.

In a recent report from Reuters, the current rally in the semiconductor sector was fueled by Taiwan Semiconductor (TSM) citing strong demand for high-end AI chips.

Taiwan Semiconductor Manufacturing Company Limited (TSM), often referred to as TSMC, is the world’s largest and one of the most influential semiconductor foundries. TSMC plays a pivotal role in the global semiconductor industry by manufacturing cutting-edge semiconductor products for a wide range of clients. 

The company specializes in producing advanced integrated circuits (ICs), including microprocessors, graphic chips, and various other semiconductor components used in smartphones, computers, automotive electronics, and other high-tech devices. 

TSMC’s dedication to technological innovation, state-of-the-art manufacturing processes, and a strong commitment to environmental sustainability has solidified its reputation as a leading force in the semiconductor manufacturing sector, serving as a critical partner for many major tech companies worldwide.

Not surprisingly, when Taiwan Semiconductor talks, the markets listen. The semiconductor sector jumped 2% immediately following TSMC’s announcement.

Shares of TSM surged from $100 to $113 in just one day.


Semiconductor stocks also gapping up this past week included Nvidia (NVDA)Applied Materials (AMAT)Advanced Micro Devices (AMD), and many others.

Our Top Ten Semiconductor Stocks

  1. NVIDIA Corporation (NVDA): Renowned for its graphics processing units (GPUs) used in gaming, AI, and data centers.
  2. Intel Corporation (INTC): A leading semiconductor manufacturer known for its microprocessors and data center solutions.
  3. Advanced Micro Devices, Inc. (AMD): Competing with Intel, AMD is known for its CPUs and GPUs, and it has gained significant market share.
  4. Taiwan Semiconductor Manufacturing Company Limited (TSM): The world’s largest semiconductor foundry, manufacturing chips for various companies.
  5. Broadcom Inc. (AVGO): A company offering a diverse range of semiconductor and infrastructure software solutions.
  6. Texas Instruments Incorporated (TXN): Known for its analog and embedded processing products used in various applications.
  7. Applied Materials, Inc. (AMAT): A key supplier of manufacturing equipment and solutions for the semiconductor industry.
  8. Micron Technology, Inc. (MU): Specializes in memory and storage solutions, including DRAM and NAND flash.
  9. Qualcomm Incorporated (QCOM): A leader in wireless technologies and mobile chipsets.
  10. NXP Semiconductors N.V. (NXPI): Known for its semiconductor solutions for automotive, industrial, and IoT applications.

You could decide to invest in any of these stocks individually, or you could opt to buy the entire sector with the Van Eck Semiconductor ETF (SMH).

Conclusion

As we look ahead to 2024, the semiconductor sector stands on the cusp of unprecedented growth and innovation. Artificial intelligence continues to drive demand for advanced chips, powering everything from autonomous vehicles to machine learning algorithms. 

Concurrently, the relentless march of technology advancements is pushing the boundaries of what is possible, requiring semiconductor companies to continuously evolve and innovate. 

Finally, President Biden’s CHIPS Act, aimed at bolstering domestic semiconductor manufacturing, promises to enhance the industry’s resilience and competitiveness, while also helping to improve supply chain bottlenecks.. 

With these powerful forces converging, 2024 holds the promise of being a watershed year for the semiconductor sector, as it not only meets the challenges of a digital age but also helps define the future of technology on a global scale. 

Investors and enthusiasts alike will be closely watching as the sector continues to thrive and lead in an increasingly interconnected world.

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Global Name in Metals Equity Jumps into Canada’s High-Grade Lithium Exploration Play https://globalinvestmentdaily.com/global-name-in-metals-equity-jumps-into-canadas-high-grade-lithium-exploration-play/ https://globalinvestmentdaily.com/global-name-in-metals-equity-jumps-into-canadas-high-grade-lithium-exploration-play/#respond Fri, 08 Dec 2023 14:45:37 +0000 https://globalinvestmentdaily.com/?p=1090 Lithium 2.0 is all about North America and some of the biggest new discoveries in the world.  While this may be against the backdrop of bad times for lithium stocks overall, it has actually created a situation in which lithium companies are significantly undervalued, yet of critical importance to our energy transition future.  That makes […]

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Lithium 2.0 is all about North America and some of the biggest new discoveries in the world. 

While this may be against the backdrop of bad times for lithium stocks overall, it has actually created a situation in which lithium companies are significantly undervalued, yet of critical importance to our energy transition future. 

That makes for the best buying opportunity in this space in years. 

And the best of the best opportunities, where the risk-reward ratio is the most potentially rewarding for investors, are found in the juniors who make big discoveries, particularly in lithium-starved North America. 

Canadian based EMP Metals Corp (CSE:EMPS) (OTCQB: EMPPF) has gained significant traction over the past three quarters, testing the highest  lithium concentrations in a brine in Canada to-date, attracting one of the biggest names in battery metals financing, and gearing up for pilot production in the first-quarter of 2024. From here on out, the news pace is expected to be fast and intense for this first-mover lithium explorer in Canada’s high-profile Saskatchewan mining hub. 

Five Reasons to Invest in EMP Metals Corp. right now: 

#1 >200,000 Acres in 3 Key Project Areas in Mining-Friendly Saskatchewan

Saskatchewan is one of the most important lithium hubs in North America, and in energy transition terms, it’s a vital critical minerals venue of national security urgency to both the U.S. and Canada. It’s awash with everything from lithium and graphite to nickel, cobalt, aluminum and manganese. And it’s a long-time high-producing area for uranium, potash and helium. 

Despite its critical mineral abundance, Saskatchewan still has vast areas that are underexplored. 

EMP Metals has over 200,000 acres here in the most advantageous area of the South Saskatchewan’s Williston Basin: The Duperow formation, which is fast becoming the flashpoint for North American battery metals. 

While explorers have been descending upon two separate formations here—Duperow and Leduc—the advantage goes to the former because of its generally higher grades of lithium and shallower drilling depths, which in turn allow for operating cost advantages in the quicker to production direct lithium extraction (DLE) scenario compared to hard rock mining. 

* compiled using publicly available data, company press releases and SEDAR+ filings

Duperow is a higher-margin play, and EMPS is taking full advantage of this and moving swiftly, with the latest test flows enough to push this junior player over the lithium edge.   

But this isn’t the run-of-the-mill junior lithium exploration story …

Two major developments have combined very recently to make this one of the most captivating North American lithium projects of the year …

#2 One of the Highest-Grade Lithium Drills in Canadian History

EMPS has already completed its NI 43-101 Inferred Resources Assessment for its Mansur and Viewfield areas, and the results are some of the most remarkable in the lithium space. 

More to the point, we’re looking at lithium concentrations that are among the highest on record in Canada. 

Viewfield and Mansur tested up to 259 mg/L and 148 mg/L respectively, lithium in brine.  The preliminary assessment confirmed a high-quality Inferred Resource of 1.2 million tonnes of lithium carbonate equivalent (LCE) at a weighted average grade of 143 mg/L.


For both Mansur and Viewfield areas, which includes 152 sections, EMPS is looking at a total of over 1.8 million tonnes of LCE (gross). 

To put these concentrations into perspective, the 259 mg/L EMPS tested at Viewfield is the highest concentration among explorers in the Leduc/Duperow Lithium area, and among the highest on record in North America.  

#3 New Strategic Investor Validates Assets

The fact that this is a massive, ~200,000-acre play with an inferred resource of 1.2-million-tonne LCE  testing at impressively high grades has now netted EMP Metals a new strategic investor that changes everything. 

On November 1, after six months of the type of heavy-handed due diligence investors like to see, London-based Tembo Capital private equity group took a 19.9% stake in EMP Metals, gaining a seat on the board to steward their investment. 

Tembo Capital invests in and supports mining companies currently in the evaluation, development and production phases, providing capital to bring discoveries into production, to expand existing production or to acquire assets.

The deal shored up EMP Metals’ accounts with $9,757,600, as well as expertise from a private equity group focused on sustainable natural resources and clean energy metals, with an impressive track record of identifying and supporting the best emerging resource companies.

This isn’t Tembo’s first big hedge on a junior battery metals explorer. 

Since 2021, after raising $380 million for its third mining fund, Tembo has been increasing its mining bets in North America, eyeing critical battery metals. That same year, Tembo took a 50% stake in Cherish Metals, in partnership with U.S.-based Black Mountain Metals, to advance the Lanfranchi nickel mine in Western Australia. Tembo took a 34.6% stake in US-based copper developer Arizona Sonoran (TSX:ASCU; OTC:ASCUF), along with giant Rio Tinto, in 2022. 

“You have to be quite selective,” Tembo Capital’s CEO David Street told Northern Miner in 2021. “We look at probably hundreds of assets a year, but we’ve got a good team of people here, with three geologists, a couple of mining engineers, a metallurgist. So, we do screen a lot of things, and we’re very selective. We’re probably making, on average, two or three investments a year. We do a high level of due diligence on the companies we invest in,” Street said.

Saskatchewan, and the Duperow formation in particular, is the place to be for North American lithium, and while junior explorers are rushing to this scene, EMP Metals passed the Tembo selection, with high grades, the best lithium well drill yet in Canada and its plans to use DLE, a more environmentally sustainable method while producing lithium at faster speeds with high recovery rates.  

In a further boost of confidence for investors, Karl Kottmeier and Craig Foggo, Tembo’s Investment Director since 2014, will now be joining the board of directors.  Both bring over 20 years of  experience in the mining industry, ranging from operations, finance and administration. 

EMP Metals CEO, Rob Gamley, stated, “The fact that these successful industry participants agreed to join our Board is another significant endorsement of our Saskatchewan lithium brine projects.  As we advance our PEA and pilot production plans their extensive background with mining operations, finance and capital markets will bring significant strategic guidance that is integral to the Company’s growth.”  

Adding to the optimizing news flow, on November 20, EMP Metals announced a new COO for the team. Paul Schubach, P Eng. spent over ten years for $11-billion-market-cap Mosaic Potash (NYSE:MOS), working onsite at its Mosaic Potash Belle Plaine, the world’s largest potash solution mine. He brings 12 years of top-dollar diversified engineering experience to add shareholder value. 

#4 The Next Big Push: Pilot Production in 2024

With all their ducks in order, one of the biggest names in battery metals, a new world-class board member and a new COO joining EMP right from a $11B market cap mining company, EMP Metals is ready to take off. 

After consulting with several direct lithium extraction (DLE) service providers, in early Q4, EMP Metals selected their two preferred, with ongoing brine testing  at both. They’ve also consulted with three CRC (concentration, refinement, and crystallization) providers, and are running a detailed evaluation of the preferred provider proposal.

The engineering partner has already been selected in the form of Sproule Associates Limited, with resource to be developed by multi-lateral horizontal wells of shallow depths from 1500-3000 meters.

By the first quarter of next year, EMP Metals plans to have its field pilot plant up and running and is in the process of acquiring the DLE permit, with Viewfield evaluation to continue in the first two quarters of the New Year.   

At the beginning of the year, we should see EMP Metals start drilling horizontal wells to test for flow rates and pressures in multiple zones, and we expect that all the while they will continue new land acquisitions.

This is a fast-moving plan of action that all leads up to the coup de grace: A commercial pilot plant by the first quarter of 2025—just over a year from now.

EMP Metals is currently evaluating proposals for the DLE commercial plant, based on lithium concentration, impurity removal, CAPEX/OPEX costs, availability and guarantees of scale of production.

At the same time, drilling will continue with multilateral horizontal wells in the higher concentration Upper Wymark zones, continually building on EMP Metals’ high-grade hits to date. 

#5 Junior Discoveries Are Key for the North American Supply Chain

On the mining scene, and particularly deep in the battery metals playing field, the speculative junior explorers have the potential to offer investors the biggest rewards, for investors with the necessary risk appetite.

In the case of EMP Metals, we’ve already got high-grade test results that break Canadian records for lithium drill holes. We’ve got a huge play in one of the most advantageous mining and metals hubs, Saskatchewan. This play is highlighted by shallower drilling depths and projects that are amenable to direct lithium extraction which offers  a faster cheaper, and more sustainable process than traditional hard-rock lithium mining.

With concentrations up to 259 mg/L, the economic drivers on this one are stronger than usual for a junior play, and investor confidence is buoyed in the aftermath of the 19.9% stake acquisition by a global name in battery metals financing—Tembo Capital, which is also brining on an industry veteran to serve as a board member to help guide this project through to a successful production scenario.  

** IMPORTANT NOTICE AND DISCLAIMER — PLEASE READ CAREFULLY! **

PAID ADVERTISEMENT. This article is a paid advertisement.  FTB Capital and its owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by EMP Metals Corp (CSE:EMPS) (OTCQB: EMPPF) to conduct investor awareness advertising and marketing. EMP Metals paid the Publisher to produce and disseminate this article and related banner ads for $23,500. This compensation should be viewed as a major conflict with our ability to be unbiased.  

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The Most Important Electric Boat Deal Yet https://globalinvestmentdaily.com/the-most-important-electric-boat-deal-yet/ https://globalinvestmentdaily.com/the-most-important-electric-boat-deal-yet/#respond Tue, 28 Nov 2023 12:09:58 +0000 https://globalinvestmentdaily.com/?p=1059 Phase Two of the $700B electric vehicle boom—the electric boat rush—is becoming just as crowded as its four-wheeled predecessor, with so many start-ups dotting this landscape it’s dizzying.  Loads of debt, problems getting into production, far-off delivery dates that make revenues a thing of the distant future—if at all—and failures-to-deliver all make this a minefield […]

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Phase Two of the $700B electric vehicle boom—the electric boat rush—is becoming just as crowded as its four-wheeled predecessor, with so many start-ups dotting this landscape it’s dizzying. 

Loads of debt, problems getting into production, far-off delivery dates that make revenues a thing of the distant future—if at all—and failures-to-deliver all make this a minefield for investors.  

Vision Marine Technologies (VMAR)(NASDAQ:VMAR) has a first-mover advantage here, the best electric boat motor system on the market and a solid manufacturing and distribution strategy that recognizes the decentralized nature of this emerging market. 

Not only has Vision Marine partnered with the top boat manufacturers and distributors in the industry, but it has also just delivered their first proprietary E-Motion Electric powertrains to Groupe Beneteau Four Winns. 

While a litany of electric boat startups trying to storm this scene without any real production or distribution strategy, VMAR is many steps ahead as the world strives to bring the electric revolution to the waterways. 

… And it’s won the trust of a giant, iconic boat-builder. 

Finally, Concrete Action on the Electric Boat Motor Scene

 Vision Marine’s partnership with Groupe Beneteau is game-changing for a small company in this fast-emerging space. 

Groupe Beneteau has been building boats and transforming the boating experience since the late 1800s. It has built a billion-dollar global boat brand house. In 2022, the company reported revenues of 1.5 billion euros. 

Employing 8,000 people in France, the U.S., Poland, Italy, and Portugal, Groupe Beneteau is a global market leader with nine brands in its boat divisions and more than 150 recreational boat models, from sailboats and motorboats to monohulls and catamarans. It’s also a powerhouse in boat rentals. Since the 1800s, it’s even gone way beyond boats and much deeper into the leisure segment, serving as a major European player for leisure homes and lodges. 

Four Winns is one of Groupe Beneteau’s iconic boat brands, along with Beneteau, Jeanneau, Lagoon, Delphia, Excess, Wellcraft, Scarab and Glastron. 

That’s a huge lineup and suggests an incredible amount of potential for Vision Marine’s partnership in the future. 

On October 4th, Vision Marine announced that it had delivered, as promised, its first E-Motion™ Electric Powertrain Technology to Groupe Beneteau, Four Winns at their production facility in Michigan. VMAR’s (NASDAQ:VMAR) Power Trains will be the inaugural electrical motors integrated on the Four Winns H2e Bowrider

Thanks to Vision Marine, Four Winns’ H2e Bowrider is the world’s most powerful outboard electric powertrain, with a 180E electric outboard engine delivering high peak power      with rapid acceleration and top speed of approximately 35 knots (40mph). It’s also the first, all-electric, series production bowrider on the market. 

“Just imagine jumping aboard your H2e, fully-charged and ready to go, from your trailer or private dock. No noise, no exhaust, no refueling, no hassle … just a rewarding day on the water,” Nick Harvey, Four Winns Brand Director said in a statement posted on the company’s website. 

This delivery is a major milestone not only for Vision Marine, but for the entire global electric boat industry, and the delivery itself is being undertaken with a fair amount of pomp and circumstance. 

The H2e Bowriders, newly equipped with Vision Marine E-Motion motors, will embark on a voyage to Europe where they will first be showcased at the Dusseldorf boat show in late January, where their presentation is set to “underscore the dawn of a new era in eco-friendly marine transport”. 

Dusseldorf is a hotspot for unveiling breakthroughs in the boating world, and the showcasing of the H2e Bowrider is intended to advertise the new boat itself—a first in the electric world—and Vision’s Marine’s innovative technology. From there, the boats will make their way to their ultimate owners. 

These will be the first electric boats to come off Four Winn’s’ production line for consumer ownership. 

How VMAR’s E-Motion Is Defining This Space

The E-Motion™ powertrain technology is the fastest electric speedboat in its class on the market. Not only is it the first fully electric, production-ready recreational boat in its class on the market, but it’s also a high-performance machine with 180 horsepower. It’s turn-key, disruptive and powered by Vision Marine’s proprietary E Motion™ battery and software.

Capable of fully charging overnight on 120v-20A or 240v 50A shore power, no supercharger needed , the E-     Motion™ battery also has another clear advantage: It’s cheaper than its competitors.

Actually producing and getting products to market in the EV space has been the biggest problem facing startups both on the road and in the water. 

Vision Marine(NASDAQ:VMAR) has an entirely different strategy that focuses on one key fact: Boatbuilding is a decentralized affair. A builder typically buys the outboard motor from one supplier, the throttle from another, and the gauges and console systems from a third. 

VMAR isn’t trying to be everything to everyone. 

Having established back-to-back world speed records in electric boating, VMAR’s E-Motion™ Electric Powertrain should top the list for any builders looking for a best-in-class electric motor. 

This is what other startups in the space lack. They may be raising significant amounts of cash right now, but it’s based on hopes of future production. VMAR is already producing. It’s already delivering, and it’s secured a game-changing partnership with a major global boat-maker.

The Small-Cap Market Opportunity Amid Historical Disconnect

The electric boats and ship market size is expected to witness rapid growth over the next six years, with revenues set to hit nearly $11 billion, driven by environmental concerns and technological advancements, according to Fairfield Market Research

At the same time, the markets have been disproportionately unkind to micro- and small-caps this year relative to large-caps. In fact, there hasn’t been a greater disconnect between small and micro-cap and large-cap stocks in nearly in two decades: 

Because this disconnect is at a historic level, it creates a great opportunity for bargain hunting in the small-cap and micro-cap world.

In a weak venture capital market, and despite the disconnect between small- and large-cap stocks this year, electric boat start-ups have raised a lot of capital over the past six months, suggesting growing interest in the market: 

  • Sweden’s Candela electric boat-maker raised some $20 million this spring
  • Sweden’s X Shore raised around $28.5 million in the same period
  • Florida-based Blue Innovations Group, an electric boat start-up founded by former Tesla manufacturing chief John Vo, started accepting reservations in March 
  • Rhode Island-based Flux Marine electric outboard motor manufacturer raised $15.5 million in 2022
  • Middle East-based Crow Electric Ships and Boats latest investment valued it at $55 million in July; and
  • In September, LA-based EV boat start-up ARC raised $70 million Series B.

But finding the opportunity amid this disconnect is even better when it’s a small or micro-cap that is defining a specific industry niche, such as the electric boat startup segment. And in this particular segment, Vision Marine is a clear leader, with Fairfield Market Research highlighting VMAR as one of the key players in the $11-billion revenue push. 

This could be why Roth Capital recently initiated coverage of Vision Marine, with a C$6 share price. 

“We believe Vision is working with multiple other boat OEMs and expect additional purchase orders and supplier agreements to lift visibility,” Roth said in June. “Further news around this area should serve as a positive valuation catalyst.”

Roth expects Vision Marine’s E-Motion to “drive impressive growth supplementing momentum in existing operations”, including its electric boat rental segment, whose flagship Newport operation took in $4 million in revenue in 2022 at 35% margin, with more locations on the way, plus a major franchise scale-up. 

Roth also expects the news flow around the launch of the E-Motion and new customer visibility to serve as primary valuation catalysts. But that was back in June. That news flow push gained major momentum in early October with the production and delivery of VMAR’s first E-Motion units to the giant Groupe Beneteau. 

While investors may be experiencing fatigue from the EV industry’s cash burn and frequent failure to produce and deliver, Vision Marine is already producing, with a unique strategy that capitalizes on the decentralization of the boat-building industry. 

With just a $20M market cap in a sea of pre-revenue startups garnering 9-figure valuations, Vision Marine separates itself as the Company offering the fastest and most innovative electric motors to the world’s largest boat manufacturers. Securing Groupe Beneteau is just the beginning…

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IPO Update: Instacart Set to Launch Under Ticker Symbol CART https://globalinvestmentdaily.com/ipo-update-instacart-set-to-launch-under-ticker-symbol-cart/ https://globalinvestmentdaily.com/ipo-update-instacart-set-to-launch-under-ticker-symbol-cart/#respond Tue, 12 Sep 2023 23:12:03 +0000 https://globalinvestmentdaily.com/?p=1022 After a year of IPO doldrums,things are starting to heat up. Last week, we covered the pending IPO of Arm Holdings, the semiconductor design company. This week, the popular grocery delivery service, Instacart (Nasdaq: CART) announced it will be listing soon. According to a report from CNBC, Instacart is seeking a valuation of $9.3 billion […]

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After a year of IPO doldrums,things are starting to heat up. Last week, we covered the pending IPO of Arm Holdings, the semiconductor design company. This week, the popular grocery delivery service, Instacart (Nasdaq: CART) announced it will be listing soon.

According to a report from CNBC, Instacart is seeking a valuation of $9.3 billion dollars, with shares to be priced somewhere between $26 to $28. At the higher price, the company could net roughly $616 million in proceeds. The valuation of $9.3 billion falls far short from the $39 billion valuation from a March 2021 funding round

About Instacart

Instacart is an American online grocery delivery and pickup service that allows customers to order groceries and other household items from their favorite local stores and have them delivered to their doorstep or prepared for pickup.

The company was founded in 2012 by Apoorva Mehta, Max Mullen, and Brandon Leonardo and has since become one of the leading players in the rapidly growing online grocery shopping and delivery industry.

Instacart is an American online grocery delivery and pickup service that allows customers to order groceries and other household items from their favorite local stores and have them delivered to their doorstep or prepared for pickup. The company was founded in 2012 by Apoorva Mehta, Max Mullen, and Brandon Leonardo and has since become one of the leading players in the rapidly growing online grocery shopping and delivery industry.

Here are some key points about Instacart:

1.    Business Model: Instacart operates as an intermediary between customers and various retail partners, including grocery stores, supermarkets, and wholesale clubs. Customers can use the Instacart app or website to browse products, create shopping lists, and place orders. Instacart shoppers, also known as “personal shoppers,” then fulfill these orders by picking items from the stores and delivering them to the customers’ chosen delivery location.

2.    Service Options: Instacart offers several service options, including same-day delivery, next-day delivery, and even one-hour delivery for some locations. Customers can also choose to schedule their deliveries in advance.

3.    Retail Partnerships: Instacart partners with a wide range of retailers, including major grocery chains like Kroger, Safeway, and Costco, as well as specialty stores and local independent businesses. This partnership model allows customers to access a broad selection of products from various stores in one order.

4.    Membership Programs: Instacart offers a membership program called Instacart Express, which provides members with benefits such as free delivery on orders over a certain amount, reduced service fees, and exclusive discounts. This program is designed to incentivize recurring usage of the platform.

5.    Gig Economy Workforce: Instacart relies on a network of independent contractors, or gig workers, who serve as personal shoppers and drivers. These individuals use their own vehicles to pick and deliver groceries to customers. They can choose when and where they want to work, providing flexibility in their schedules.

6.    Geographic Availability: Instacart is available in thousands of cities across the United States and Canada. The availability of specific stores and delivery options may vary by location.

7.    Funding and Growth: Instacart has experienced significant growth over the years and has raised substantial funding through multiple rounds of investment. The company has expanded its services to include not only groceries but also other items like household goods, personal care products, and even alcohol in some markets.

8.    Competition: Instacart faces competition from other online grocery delivery services, including Amazon Fresh, Walmart Grocery, and various regional and local players.

Instacart has gained popularity, especially in recent years, due to the convenience it offers, particularly during the COVID-19 pandemic when many people turned to online grocery shopping to minimize in-person interactions. Its success underscores the growing trend toward e-commerce in the grocery industry and the increasing demand for convenient home delivery and pickup options for everyday essentials.

According to an article in New York Magazine, Instacart appears to be an attractive target for investors.

“This would be apparent to anyone on Wall Street. Still, $9 billion is a lot of money, and with 7.7 million or so people still using the app, there’s money to be made off the grocery-delivery business. (Increasingly, that means advertising — the company now makes about 30 percent of its money from selling ad space on its app.) These IPO prices reflect what investors are willing to pay for company shares during road shows, when Instacart’s bankers — in this case, Goldman Sachs — make the bull case directly to professional investors.”

The recent surge of IPOs suggests that Wall Street is putting a potential recession in the rear view mirror, and they are ready to start investing more aggressively.

Stay tuned as we monitor the Instacart IPO once it launches.

The post <strong>IPO Update: Instacart Set to Launch Under Ticker Symbol CART</strong> appeared first on Global Investment Daily.

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