Month: January 2021

#13 Here is everything that you missed last week

“You Don’t Have To Be Great To Start, But You Have To Start To Be Great” –Zig Ziglar
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Friday, January 22nd Closing Price


TABLE OF CONTENTS

  1. MONDAY
  2. WEDNESDAY
  3. THURSDAY
  4. FRIDAY
  5. LAST WEEK’S EARNINGS
  6. UPCOMING EARNINGS
  7. MERCHANDISE
  8. DISCORD RECAP
  9. STOCKS ON OUR RADAR
  10. EDUCATIONAL LEARNING SEGMENT
  11. VIDEO
MARKET LAST WEEK (1/18 – 1/22)

MONDAY (1/18)

Former Federal Reserve Chair, Janet Yellen, testified before the Senate Finance Committee to fill President-Elect Joe Biden’s treasury secretary position. This is a critical moment, as she favors increased spending and giving out larger stimulus packages. She also believes that with interest rates remaining as low as they are, the right time to spend is now. Looking ahead, we can begin to expect more oversight of financial institutions and the use of monetary policy to combat climate change.

Vaccine distribution is becoming a hot button topic as there are delays across the United States and the world. The World Health Organization had a very impactful board meeting discussing the vaccine’s implementation globally. The WHO continues to promote the idea of equitable access to vaccines, which isn’t happening; 39 M vaccines have been distributed throughout 49 different wealthy countries, and a measly 25 (YES 25) people have received vaccines in lower-income countries. The WHO participates in the COVAX (Covid-19 Vaccines Global Access Facility), but some loopholes allow for countries to have bilateral agreements with Pfizer, BioNTech, and Moderna, which caused a price hike of these vaccines.

WEDNESDAY (1/19)

Joseph R. Biden was sworn in today as the 46th President of the United States of America, as was Kamala Harris as his Vice-President.

Jack Ma, Alibaba & Ant Group founder, finally resurfaced after spending months out of the public eye following his harsh criticism of Chinese regulators. Ma reappeared at an annual education conference he hosts to address several teachers. His appearance helped to soothe many investors’ concerns, as his lack of public appearances and the antitrust prove on Alibaba had a devastating effect on share value. Alibaba share prices shot up 9% after Ma’s reappearance. Investors should still feel far from safe. Jack Ma’s return coincides with the Peoples Bank of China proposing that any non-bank payment company holding half of the online transaction market, or two companies having a combined two-thirds slice, could face antitrust probes. In short, if the investigation proves an antitrust violation, Alibaba may find itself breaking up specific business units.

Tesla has an upgraded price target from Oppenheimer’s holdings in the electric vehicle industry. An analyst cited Tesla’s share price doubling yet again since November and hitting an all-time high of $884.49 a share. Oppenheimer increased their price target from $486 to $1,036. The consensus is many investors are counting on Tesla’s leading commercialization of autonomous vehicles.

THURSDAY (1/20)

Following President Biden’s inauguration, he got into action swiftly and signed a dozen executive orders to combat Covid-19 and invoke the Defense Production Act to create supplies. The full strategy focuses on getting America out of the worst public health crisis in 100 years. He also created the Pandemic Testing Board, which intends to increase testing capacity, expand the public health workforce, and expand vaccine implementation.

Along with increased funding for Covid-19 protocols, Amazon has reached out to President Biden to prioritize its essential workers and possibly even be a third party healthcare provider. Amazon CEO has come out to say they are “prepared to move quickly once vaccines are available…. Leveraging our operations, information technology, communications capabilities, and experts to assist your administration’s vaccine efforts.” This assistance is a massive announcement as this could provide a much-needed logistical boost for the new administration to fulfill Biden’s campaign of 100 m vaccines in 100 days.

In a massive announcement, BlackRock’s largest asset manager is adding Bitcoin as a possible investment in two of their funds. The CEO of BlackRock in 2018 was quoted as saying that Bitcoin “was an index to money laundering,” but he has changed his tone. Larry Fink said it’s possible that “cryptocurrency can evolve into a global market asset,” and recently, BlackRock has posted a job opening for VP of Blockchain.

FRIDAY (1/21)

Concluding the inauguration week, President Biden has continued to sign a flurry of executive orders that will potentially combat the increased food insecurity the Covid-19 pandemic has brought upon low-income Americans. He has moved to expand the Supplemental Nutrition Assistance Program (SNAP) and signed to increase federal employee minimum wage to $15 an hour. At the same time, he works with the IRS to help the families that generally do not make enough money to file taxes and receive their missing stimulus checks, which is estimated to be around 8 million Americans.

The Senate convened for the last time this week, until Monday at 3 PM where they will move to continue the confirmation of President Biden’s cabinet nominees. Although they did not end today’s session without making history, retired General Lloyd Austin was confirmed as the first African American Secretary of Defense in United States history. The Senate’s final act was to set a trial date for the 2nd impeachment trial of the disgraced former President Trump, which will commence on February 9th.

In the technology sector, the global chip shortage reaches disruptive levels for a variety of businesses. Ford, Volkswagen, Mercedes, and even bitcoin mining companies in China have been forced to temporarily halt production and operations in some locations as supplies have run low or run out entirely. Some analysts predict a decade-long shortage for the Chinese market, which could lead to stifled growth in upcoming Chinese electric vehicle models.

REVIEW OF LAST WEEK’S EARNINGS
1/18 – 1/22

Tuesday (Before Market Open) (1/19)

Goldman Sachs - Wikipedia

Goldman Sachs

Goldman Sachs reported earnings pre-market on Tuesday, and the results were nothing short of impressive. Goldman Sachs managed to outperform analysts’ expectations in most metrics despite what they cited as an extraordinary decline in economic activity in the second quarter due to the pandemic.

Goldman Sachs reported the following:

  • Record revenue of $11.7 Billion produced

  • Record EPS of $12.08 as opposed to the $7.47 forecast by analysts

  • Net earnings of $4.5 Billion, up 23% over last year

  • Full-year revenue up 22% to $44.6 Billion

  • Deposits grew by $70 Billion in 2020

  • Wealth Management grow 10% YoY to record $4.8 Billion

  • Advisory revenues of $1.1 Billion more than double the third quarter

Takeaway:

Goldman Sachs has performed exceptionally well. They just reported astounding numbers highlighted by the highest revenue production they’ve reported in a decade. Goldman Sachs has cautioned that their continued economic growth is contingent on an effective vaccine rollout program globally. Despite this, their clients have faith in them, evidenced by their increased business despite uncertain market conditions. Goldman Sachs ability to have such a strong quarter despite the pandemic bodes well for their investors down the road.

Tuesday (Before Market Open) (1/19)

Halliburton logo and symbol, meaning, history, PNG

Halliburton

Halliburton posted earnings before market open Tuesday, and they were not significant. They missed their earnings expectation from analysts and posted enormous losses.

  • Reported net loss of $.27 per share

  • Net loss of $235M

  • 4th Quarter Revenue of $3.2B a 9% increase from Q3

  • Reported Operating loss of $96M for Q4

  • Adjusted net income of $.18 per diluted share

  • Cash flow from operating activities of $638M and free cash flow of $420M

  • Revenue of 2020 of $14.4B, a decrease of $8B-36% from 2019

  • Reported Operating loss of $2.4B compared to $448M in 2019

Takeaway:

Halliburton is in a dying industry that will continue to receive less government funding, rely on cheaper operating costs, and more operating efficiency. Moving forward, the new administration will be focusing on alternative energy sources and providing large subsidies to these corporations. We will continue to watch for this down-trend of revenue and upward trend of operations costs.

Tuesday (Before Market Open) (1/19)

Charles Schwab | A modern approach to investing & retirement

Charles Schwab

Charles Schwab reported earnings pre-market Tuesday that showed record operating performance. Charles Schwab also completed what their CEO described as “the largest brokerage acquisition in history” during the fourth quarter.

Charles Schwab reported the following:

  • Net income of $1.1 Billion for the quarter

  • Net income $3.3 Billion for the year

  • Acquired TD Ameritrade

  • 4Q EPS of $0.74

  • Total GAAP expenses increased 26% to $7.4 Billion for the year

Takeaway:

Charles Schwab leadership expressed their happiness in the results seen, and it is certainly warranted. They are poised to see continued success barring any significant developments. Aside from their feature attraction in the TD Ameritrade acquisition, Charles Schwab made three more acquisitions during the year that all support their long term vision in unique ways. Their acquisition of USAA came with over 1 million new accounts and $80 Billion in additional assets and allowed them to scale incrementally.

Tuesday(After Market Close) (1/19)

Myleeta Aga Departs Netflix in Asia After A Year - Variety

Netflix

Netflix reported earnings after-market Tuesday that sent shares skyrocketing from their Tuesday close of $501.77 to open at $565 following their earnings report’s release. This boost in share price is despite Netflix failing to beat their projected EPS and narrowly beating quarter revenue projections. Netflix went on to close at $586.34 Wednesday afternoon.

Netflix reported the following:

· Revenue of $6.64 Billion for an EPS of $1.14

· 8.51 Billion new paid subscribers

· Annual revenue of 24% YoY

· 37 million paid memberships in 2020

Takeaway:

Netflix is among the small group of companies that could benefit from the pandemic, and its subsequent effects, primarily stay at home orders leading to increased subscriptions. They have prioritized keeping up with their subscribers’ demand, including taking on debt to build on their content library. This has paid off as they are now strongly considering implanting a share buyback program. Netflix issued moderate guidance despite beating the past quarter metrics soundly, showing that their share buyback program truly is tentative, and they are preparing for every possible outcome.

Wednesday (Before Market Open) (1/20)

P&G New Moon Logo And Satanist Rumors - Business Insider

Proctor & Gamble

Proctor & Gamble provided a strong earnings report that has led them to elevate their financial expectations for the new year. They have increased their expected target growth by 2-3% for adjusted earnings. They managed to surpass analysts’ expectations in both revenue and their share prices before the opening bell on Wednesday.

  • Proctor & Gamble reported the following.

  • Q2 earnings were up 8%, with a spike in demand for cleaning products.

  • Revenue was $19.75 billion versus the $19.27 billion that was expected.

  • Earnings per share were $1.64 adjusted versus the expected $1.51.

  • Home care sales, including cleaning supplies, grew 30%.

Takeaway:

Even though shares fell by 1% after earnings were reported, Proctor & Gamble is poised to continue increasing their sales across the board as we continue to progress through the pandemic. The shift in how people work, primarily working remotely from home, has sparked optimism in the upward trend exhibited by their home care department.

Wednesday (Before Market Open) (1/20)

Sponsors — The Black Ivy League Business Conference

Morgan Stanley

Morgan Stanley had outstanding earnings and beat analyst expectations. They reported their business to be very strong despite economic conditions and had growth among all 3 of their business segments. Analysts estimated a quarterly revenue decrease of -17.2%, but they gained over $2B in revenue from Q3 to Q4.

  • Reported $13.6B for Q4, with expected revenue of $11.02B

  • Q4 revenue from prior year $10.9B 

  • Net income was $3.4B and EPS of diluted share of $1.81 for Q4

  • Full revenue for the year was $48.2, in comparison to $41.4 from the previous year

  • Net income for 2020 was $11B or $6.46 per diluted share, compared with $9B or $5.19 per diluted share

  • Investment Banking revenue up 46% YoY, Sales & Trading up 32% YoY, Wealth Management up 24%

Takeaway:
Looking into their business, we can see that all segments are growing healthy even through a growing pandemic. This is an extremely beneficial sign that Morgan Stanley is positioned to be successful. Recently, Morgan Stanley had merged with E-Trade and brought a whole new portfolio of clients and assets to reposition to help grow under the Morgan Stanley umbrella.

Wednesday (After Market Close) (1/20)

United Airlines Begins Offering Satellite Wi-Fi On Overseas Flights | TechCrunch

United Airlines

  • Reported fourth-quarter net loss of $1.9 billion$7.1 billion for the full-year 2020.

  • Reported fourth-quarter adjusted net loss of $2.1 billion$7.7 billion for the full-year 2020.

  • Reported fourth-quarter total operating revenue of $3.4 billion, down 69% versus fourth-quarter 2019.

  • They reported fourth-quarter operating expenses down 45% versus fourth-quarter 2019, down 42% excluding special charges.

  • UA increased cargo revenue by an industry-leading 77 percent in the fourth quarter by leveraging international flying and deploying strategic international cargo-only missions.

It comes as no surprise that companies in the Airline industry report huge losses and cash burn throughout 2020. However, United Airlines has leveraged its planes and its loyalty program to keep its business afloat. They were able to bring in some positive news, with its cargo revenue jumping 77% in the quarter to $560 million. United Airlines is upbeat about its 2023 goal. However, it isn’t expecting a quick turnaround this year. The airline said that first-quarter revenue would likely come in 65% to 70% below 2019 levels. It estimated capacity in the first three months of 2021 would be at least 51% below the same period in 2019, echoing a similar outlook from American Airlines.

Thursday (Before Market Open) (1/21)

FuelCell Energy Will Add 100 Jobs In Torrington, Double Annual Energy Production - Hartford Courant

Fuel Cell Energy

  • Revenues increased approximately 54% to $17.0M, primarily benefiting from increased service revenue recognized for module exchanges at three plant locations, expanded Generation and Advanced Technologies activities.

  •  Loss from operations improved to $17.1M compared to $33.0M, reflecting timing and mix of advanced technology activities, higher service costs, and lower non-cash charges relating to our Triangle Street project.

  •  Net loss of $18.9M compared to $35.2M

  •  Adjusted EBITDA of $8.6M compared to $11.0M

Takeaway:

Fuel Cell Energy had a great quarter, and we believe they are in a position to continue to do great. In this past quarter they have made a stronger balance sheet with an increase in liquidity and management shifted to focus on projection execution and financial milestones. In Q1 of 2021, with the new administration being focused on clean and renewable energy, we see these results being a tailwind for future success in the company.

Thursday (Before Market Open) (1/21)

Press & Media Resources - Citrix

Citrix

By nature of being a cloud-based workspace provider, Citrix has seen massive growth throughout the pandemic, with Q4 following the trend strongly. Citrix’s subscriptions were up 62% compared to 2019, leading them to acquire Wrike, another cloud-based work management platform. This will allow Citrix to expand further and streamline their services as demand for their products increases.

Citrix reported the following.

  • Q4 subscription ARR was $1.2B

  • The board of directors increased the quarterly dividend from $0.35 to $0.37 per share

  • Wrike was purchased for $2.25B in cash, with a closing date in mid-2021

  • $3.24B in revenue for the full fiscal year

Takeaway:

Citrix has benefited substantially from the enormous shift of workers moving from the offices to their homes and the workplace products companies required to keep everyone connected. With plenty of companies allowing employees to remain at home and acquiring Wrike and their products added to the fold, Citrix is optimistic they will be able to expand their subscriptions even more in 2021. Once they close officially, they will offer business cloud services ranging from IT and security to marketing or project management.

Thursday (After Market Close) (1/21)

File:Intel logo (2006).svg - Wikimedia Commons

Intel

Intel released their Q4 earnings on Thursday, and keeping with their strong year, they exceeded their estimated revenue by $2.6B ending with a total of 20 billion for Q4. They also exceeded their estimated earnings per share by $.042, with the earnings totaling $1.42 per share. This has placed Intel in a powerful financial position moving into 2021, as they closed out their 5th consecutive record year in profits.

Intel reported the following

The board of directors approved a cash dividend increase of five percent to $1.39 per share on an annual basis

Forecasting first-quarter 2021 revenue of approximately $18.6 billion

Intel generated a record $35.4B in cash from operations and $21.1 billion of free cash flow (FCF) and returned $19.8B to shareholders.

The board declared a quarterly dividend of $0.3475 per share on the company’s common stock

Takeaway:

In the current market, there is a massive shortage of processing chips, with demand exceeding current production affecting tech companies and automakers alike. Intel is well-placed with demand at such high levels to continue into their potential 6th record year in profits and another strong Q1. Although they did have a security breach Friday, January 22nd, that led to a 9% share drop. This is considered an isolated incident; it should not affect their positive long term outlook for the upcoming fiscal year.

UPCOMING WEEK 1/25 – 01/29

EARNINGS

Tuesday, January 26th, 2021

Johnson & Johnson Tuesday (Before Market Open) – A company that had recently faced large class-action lawsuits after reports came out of long-term health defects from one of their products. Alternatively, J&J offers various cleaning and healthcare products that can provide a massive boost for revenue. Their expected EPS is $1.81, with revenue expected to be $21.73B, with quarterly revenue expected to increase by 4.7%.

3M Company Tuesday (Before Market Open) – 3M currently is the world leader in issuing PPE products to combat the Coronavirus. We can expect that the recent spike in Coronavirus cases will help 3M’s revenue for Q4. Expected EPS of $2.31 and Revenue of $8.49B, with expected quarterly revenue to increase 5%.

General Electric Tuesday (Before Market Open) – A blue-chip industrial company with four segments (Power, Renewable Energy, Aviation, and Healthcare). Uniquely, General Electric has all 4 of its business segments with relatively proportional revenue. Through months of 2020, the Aviation segment of General Electric is their leading business segment with over $16B in revenue. They have an expected EPS of $.11 and Revenue of $21.27B, with an expected decrease of quarterly revenue of -18.9%. 

Lockheed Martin Tuesday (Before Market Open) – One of the world’s most extensive defense and aerospace technologies operates in four business segments (Aeronautics, Missiles and Fire Control (MFC), Rotary, and Mission Systems (RMS), and Space Systems. Since the beginning of Covid-19, Lockheed Martin’s stock price has fallen considerably over the last few months. Expected EPS of $6.64, Revenue of $17B, and Expected quarterly revenue increase of 7%

Verizon Tuesday (Before Market Open) – One of the largest communication tech companies offers wireless voice and data services. They provide a wide variety of communication services, high-speed internet, and extensive network access. They have an expected EPS of $1.16 and Revenue of $34.4B, with an expected decrease in revenue of 1.1%.

American Express Corporation Tuesday (Before Market Open) – American Express the largest credit card company in the United States. They provide a premier network for high-spending customers and provide business-building services. As Covid-19 has hurt the consumer’s pocket, the supply of disposable income has significantly decreased, and $AXP has followed. Expected EPS of $1.26 and Revenue of $9.42B, with an expected decrease of quarterly revenue of -17%.

Microsoft Tuesday (After Market Close) – Microsoft is one of the technology space leaders, providing a wide array of specialized products and services. They are one of the world’s largest companies and are continuing to grow YoY. They are reporting their 10Q report, which is expected to be very strong. They are expected to have $40.12B in revenue for Q4 and an expected EPS of $1.64; quarterly revenue is expected to increase by 8.7%.

Advanced Micro Devices Tuesday (After Market Close) – Advanced Micro Devices is a leading semiconductor company that produces some of the most advanced microprocessors. They provide microprocessors for data centers, cell phone technology, and leaders in the gaming industry. They have had increased sales/revenue throughout Covid-19 as data-centers’ growth and video game systems have grown exponentially. Their expected EPS is $.50, and Revenue of $3.01B, with an expected quarterly revenue increase of 41.5%.

Starbucks Tuesday (After Market Close) – Starbucks, the leader in the caffeinated space, had posted Q3 losses, and we believe this trend will continue into Q4. As Covid-19 cases keep spiking and people tend to stay home, the disposable income to spend on coffee decreases. The expected EPS is $.60, and revenue is anticipated to be $6.88B, with expected quarterly earnings are -30.4%.

Wednesday, January 20th, 2021

Boeing Wednesday (Before Market Open) – Boeing had one of the more challenging years in its history, and we expect the earnings release to reflect that. At the end of Q4, the FAA had certified that the 737MAX could fly safely, but then recently had another plane crash. Boeing was able to sign military contracts throughout the time they were waiting for certification and used that to keep themselves afloat. Expected EPS of -$1.60 and expected revenue to be $15.07B, and the quarterly revenues are expected to decrease by 16%.

AT&T Wednesday (Before Market Open) – The world’s largest communications services company that provides a premium network, high-speed internet, and paid TV provider. Their stock has had a weak last nine months due to the Covid-19 pandemic. Their expected EPS is $.75, and Revenue of $44.54B, with a predicted revenue decrease of 5%.

Abbot Wednesday (Before Market Open) – Abbot is a healthcare provider who has posted hefty profits throughout the pandemic by leading technology for testing for Covid-19. They offer various products, including medical devices, genetics, and nutritional branded foods. The stock has reached an all-time high and is continuing to climb. They have an expected EPS of $1.40 and Revenue of $9.91B, with an anticipated revenue increase this quarter of 19%.

Nasdaq Wednesday (Before Market Open) – Nasdaq is a holding company that provides trading, regulatory, security listings, and public company services. The company’s operating segments include Market Services, Listing Services, Information Services, and technology solutions. Their expected EPS is $1.52, and revenue is expected to be $739.53M, with an anticipated decrease of quarterly revenue by 30%.

Blackstone Wednesday (Before Market Open) – One of the leading asset management and alternative investment firms. Alternative asset management includes Corporate Private Equity Funds, Real Estate Funds, Fund of Funds, credit-oriented funds, and closed-end mutual funds. Expected EPS of $1.01 and Revenue of $2.06B, with an expected revenue decrease of -1.5%.

Apple Wednesday (After Market Close) – Apple designs, manufactures and creates premier media devices to be used globally. They have been a blue-chip stock for a long time and have had consistent success for over 20 years. Expected EPS of $1.52 and Revenue of $102.61B, with expected quarterly revenue to increase by 11.2%.

Tesla (After Market Open) – Tesla is the leader in the EV industry and provides the leading technology. Tesla is offering bells and whistles that other companies simply can’t match, and that is why Tesla has steadily increased car sales. We will have to look closely into their 10-Q to show the increasing trend of car sales and whether Tesla can increase supply to fit demand. EPS is expected to be $.99 and Revenue of $9.98B, with an expected quarterly revenue increase of 35.2%.

Facebook (After Market Open) – Facebook has the most extensive user base of all social media platforms and is free to use products on the internet. Facebook derives revenue from ads on their platform and enables users to other websites with Facebook ads. Expected EPS of $3.46 and Revenue of $26.26B, with an expected quarterly revenue increase of 25%.

Las Vegas Sands (After Market Open) – We are looking into $LVS because we have recently written a research report on Penn Gaming, and we want to look into the Casino industry for insight. Las Vegas Sands own some of the world’s premier casinos, and we can use their 10-Q on an excellent outlook moving forward. Expected EPS of $.30 and Revenue of $1.25B, with quarterly revenue expected to decrease by 64%.

Thursday, January 21st, 2021

McDonald’s Thursday (Before Market Open) – McDonald’s reports earnings as we expect revenue to have stayed relatively the same. McDonald’s derives revenue from franchising, sales, and Real Estate properties they own worldwide. Expected EPS of $1.92 and Revenue of $5.32B, revenue is expected to decrease by less than half a percent.

American Airlines Thursday (Before Market Open) – Much like all other airlines, they have been bleeding cash, waiting for vaccine implementation to subside and begin travel again fully. They will continue to have ugly earnings releases moving forward and create more debt to stay afloat. They have an expected EPS of -$4.15 and revenue of $3.86B, with an anticipated revenue decrease of -65%.

Southwest Airlines Thursday (Before Market Open) – This is a similar theme to all the other airlines in which the whole industry is bleeding cash. Expected EPS of $-1.69 and Revenue of $2.12B, with an expected quarterly revenue decrease of -63%.

Mastercard Thursday (Before Market Open) – A processor, advisor, and medium between financial institutions and cardholders. As people stay home and spending steadily decreases, Mastercard will begin to see less revenue through Covid-19. Expected EPS of $1.60 and Revenue of $4.02B, with expected quarterly revenue anticipated to drop by -9%.

JetBlue Thursday (Before Market Open) – We continue with airlines to compare how each company can handle the Covid-19 pandemic and manage growing debt. Expected EPS of -$1.72, and Revenue of $617.81M with expected quarterly revenue to decrease -70%.

Visa Thursday (After Market Close) – Very similar to how Mastercard operates, they provide a medium to financial institutions and cardholders. Spending has steadily decreased throughout Covid-19, which has hurt Visa’s revenue. Expected EPS of $1.28 and Revenue of $5.52B, with expected quarterly revenue to decrease by -9%.

Caterpillar Friday (Before Market Open) – The world’s largest construction company provides construction, mining, and gas turbines/engines. Cat Financing provides credit solutions to Cat customers who can’t afford Cat products out front. Expected EPS of $1.70 and Revenue of $11.18B, with quarterly revenue expected to decrease by -15%.

Chevron Friday (Before Market Open) – We have traded and looked into Energy companies for almost a month. The current administration is putting a heavy focus on alternative energy and combating climate change; this means that Chevron is facing scrutiny and an uphill battle moving forward. Expected EPS of $.27 and Revenue of $27.64B, with an expected quarterly revenue decrease of -24%.

EVENTS & TALKS

ECONOMIC CALENDAR

January 25th, 2021, Monday :

1. Nothing major

January 26th, 2021, Tuesday:
1. IMF World Economic Outlook @ 8AM EST
2. FED starts 2 day teaming that rolls over into Wednesday afternoon3. CB Consumer Confidence for January at 10AM EST

January 27th, 2021, Wednesday:

1. Durable Goods Orders MoM DEC @ 8:30AM EST 2. Fed interest Decision @ 2PM EST
3. Fed press conference @ 230PM EST

January 28th, 2021, Thursday:

  1. Jobless claims @ 8:30 AM EST
  2. GDP Growth number @ 8:30 AM EST
  3. New home sales numbers @ 10 AM EST

MERCHANDISE

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DISCORD RECAP

It was a short week, but we ended up providing more than 26 trades in our discord last week.

We had a 77% win rate, and on average, those trades yield a return of 26%, while losing trades did on average of -31%.

Not one of our best stats, but we were able to win more than what we lost and ended on a positive week.

Last week serves as a reminder to always practice excellent risk management to avoid huge losses.

Our average win did 45% for the past five weeks, while our losses did 23%. We never overlook our risk mitigation when we are always winning.

Remember, you’re always one losing trade away from going back to $0.

JOIN OUR DISCORD – $30 FOR 1 WEEK
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STOCKS ON OUR RADAR (1/25 – 1/29)

$AMC 

Can this be the next big squeeze?

Let’s wait and see.

EDUCATIONAL LEARNING SEGMENT

Learn when to walk away.

Admitting defeat is probably one of the hardest things we have to do in our lives.

When it comes to being in a relationship that just isn’t working out or holding on to a losing trade, sometimes calling it quits is more challenging than just staying in.

However, no matter how hard it is to do so, we must do it. We must walk away. To grow, we must walk away, reflect on the situation, think about what led up to this decision, what led up to this outcome and learn from it.

VIDEO OF THE WEEK
In this week’s video of the week, we get to listen to Janet Yellen’s opening statement at the Senate confirmation hearing. Yellen has made it clear that she favors immediate change as she expressed that she believes the recession will be extended with absolute damage long term without further action. Yellen answered many people who are concerned with increasing national debt by expressing that while they share a valid concern, the low-interest record rates make the present an opportune moment for the financial package to help Americans. Janet Yellen has stated that she has a dual mission in rebuilding the economy to create more prosperity for more people to allow American workers to compete in the global economy long term while helping Americans endure the pandemic’s final months in the interim.
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#12 HAPPY MLK DAY

“The same boiling water that softens the potato, hardens the egg. It’s what you’re made of. Not the circumstances.” –Unknown
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Friday, January 15th Closing Price


TABLE OF CONTENTS

  1. TUESDAY
  2. WEDNESDAY
  3. THURSDAY
  4. LAST WEEK’S EARNINGS
  5. UPCOMING EARNINGS
  6. MERCHANDISE
  7. DISCORD RECAP
  8. STOCKS ON OUR RADAR
  9. EDUCATIONAL LEARNING SEGMENT
MARKET LAST WEEK (1/11 – 1/15)
MARKET

TUESDAY (1/12)

Plug Power announced a joint venture with French carmaker Renault in a 50/50 deal for Research & Development, manufacturing, and the beginning sale of vehicles with Fuel Cell/ Hydrogen Turnkey solutions. This deal will become operational by the end of the first half of 2021 and serve the fastest growing market for fuel cell vehicles. Under the Biden Administration, we anticipate a move towards implementing new electric vehicle sales. As a result, Plug Power may receive funding and grants to develop more cost-effective and efficient hydrogen solutions.

Following the aftermath of the Capitol’s insurrection, lots of public companies have removed funding from political offices. Some of these companies include American Airlines, BlackRock, BP, Facebook, Google, Microsoft. The impact of these companies withdrawing financing could be a catalyst for change in the Republican Party. In 2020, candidates received $205M in donations from corporate PACs, and Democratic candidates received donations of $155M. Corporations withholding their dollars from politics could be a massive moment if they can stick to their word and force candidates to run on policy, not ad campaigns.

WEDNESDAY (1/13)

The United States has enacted a new rule that anyone flying in will need to show valid proof of a negative Covid-19 test. The order will take effect on January 26th to give all airlines and travelers time to comply with these new rules. This order is not just for foreign citizens alone, as U.S. citizens will need to provide a negative Covid-19 to enter back into the country. This new requirement is a positive sign for travel companies as they may be allowed to carry more passengers on each flight, and additional revenue may begin to come in.

In a stunning move late Wednesday night, President Donald Trump was impeached for the 2nd time. This is a historic event as no other President in the United States has ever been impeached twice. The chance of being removed from office is low as we are less than a week away from the inauguration. The House of Representatives brings up this impeachment; he is being charged with Inciting violence and making statements that resulted in lawlessness in the U.S. Capitol.

THURSDAY (1/14)

Joe Biden released his stimulus package in the range of 1.9 Trillion Dollars. The broadcast increased Treasury yields higher and to levels that haven’t been reached since pre-Covid-19. Some of the features range from support for State and Local authorities, direct payments of $1400, increased unemployment benefits of an extra $400 per week through September, $160B funding for vaccine distribution throughout the United States, opening schools, and rental relief to small businesses. Looking forward, this is a huge positive as much needed Covid-19 relief bill will be provided sooner rather than later for U.S. citizens. Also, he said he wants to deliver 100 Million shots in the first 100 days of his presidency within his speech.

Fed Chair Jerome Powell came out and said the job market “had a long way to go,” and applications for unemployment claims rose by 181,000 due to a surge in Covid-19 cases. J Pow also added that “we are a long way from maximum employment,” indicating that monetary policy will remain the same for the foreseeable future.

REVIEW OF LAST WEEK’S EARNINGS
1/11 – 01/15

Thursday (Before Market Open) (1/14)

BlackRock, Inc. - Home

BlackRock is a leader in asset management, alternative investments, and financial services.

  • Quarterly profits increased by 19% 

  • Profits of $1.5B and EPS of $10.02 beating expectations by over 10%

  • They posted Revenues of over $4.5B for Q4

  • Brought in $126.9B new investor money in Q4

  • AUM YoY increased by 17%; Revenues increased by 11% YoY

Takeaway:
Large sums of money have flocked into BlackRock, and the majority of it went to Bond Funds, as the world’s largest asset manager just reached $8.68T (Yes T) in AUM. During Q4, BlackRock reflected a 5% organic asset growth and 7% organic base fee growth. While other banks have suffered throughout the pandemic, BlackRock, with its unique investments, could bring in billions of dollars in new investments.

Thursday (Before Market Open) (1/14)

Delta Air Lines logo and symbol, meaning, history, PNG

In short, Delta’s earning releases is one of the ugliest financial reports we will see from 2020. Delta reports they expect airline travel to turn a corner for the year 2021 and expect revenue to begin to rebound.

Looking into the present

  • Delta reported a net loss of $755M for Q4

  • Yearly Net loss up to $12.4B total

  • Quarterly EPS of -$1.19 and Revenue of $4B beatings expected of $3.4B

  • Yearly EPS of -$2.53

  • Full-year pre-tax loss of $15.6B and EPS of -$19.49

Takeaway: 
This is an extremely ugly earnings release as Delta has been bleeding cash for the last nine months of 2020. Delta ended 2020 with over $16B in liquidity on the brighter side of things, which can be viewed as a positive as there are still dark days ahead.

Thursday (Before Market Open) (1/14)

JPMorgan (Chase) logo and symbol, meaning, history, PNG

Chase produced a brighter outlook in their Q4 earnings report. They ended the year on a strong note heading into the new year with average deposits up 35% after posting a record profit of 12.1 billion dollars in 2020.

Looking into the present

  • Chase Investment banking

    • Total Markets revenue of $5.9 billion or up 20%

    •  Fixed Income Markets up 15% 

    • Equity Markets up 32% 

  • Chase Commercial banking

    • Gross Investment Banking revenue of $971 million, up 53% 

    • Average loans up 1%, and the average deposits are up 52%

Takeaway:
Chase reported increased assets across all frozen sections, positioning them to excel in the first quarter of the new year. With a reported 2.7 trillion in managed assets (up 17%) and increased financial stimulus arriving from the incoming administration. We can expect to see a continuation of their increased asset trend.

Thursday (Before Market Open) (1/14)

Citibank — Story

Citi produced a relatively uneventful earnings report that can be viewed positively given the tumultuous year. Earnings were flat throughout the year, and Q4 stayed within the trend, closely resembling 2019’s Q4 reported revenue and profit with a minor decrease.

Looking into the present

  • Citi operating expenses increased 2% as they increased investment into the companies infrastructure

  • Q4 net income 4.6 billion, a reduction of  7%

  • Q4 cost of credit was 46 million, substantially down from 2.2 billion comparatively in Q4 of 2019

  • 1.1 billion released to shareholders through dividends

Takeaway:
Citibank did not have a stellar Q4 report; they reported a 10% decrease in revenue than 2019. Although objectively, given the year experienced due to the pandemic, there is reason to be optimistic as share prices were up 5% on the year. At the same time, they increased investments in their infrastructure and risk management teams.

UPCOMING WEEK 1/18 – 01/22
EARNINGS

Tuesday, January 19th, 2021

(Before Market Open) Goldman Sachs 

Goldman is perceived as the world’s premier investment bank. They are a non-traditional bank because Bank of America operates with ATMs, Goldman has asset management, alternative investments, debt financing, and financial services. They have had a remarkable recovery following the initial market crash of Covid-19 and reaching all-time highs. The expected EPS of $7.68 and expected revenue is $9.47B, and the expected quarterly revenue to have decreased by -31.4%.

(Before Market Open) Halliburton 

One of the world’s largest providers of products and services to the energy industry. Halliburton’s two main segments are (Completion & Production) and (Drilling and Evaluation). The expected EPS of $.17 and Revenue is expected to be $3.23B, with a quarterly revenue expected to decrease by -37.8%.

(Before Market Open) Charles Schwab

A financial services company with 1.6M corporate retirement participants, 10.5M active brokerage accounts, 1.2M Banking accounts, and above $3T in client assets. They provide a full range of wealth management, brokerage securities, asset management, and financial advisory services. Expected EPS of $.75 and expected Revenue of $4.06B, with quarterly revenue expected to increase by 55.8%.

(After Market Close) Netflix

The world’s leading Internet television network with millions of subscribers and a vast library of all different types of media products (shows, movies, documentaries). They offer a unique platform to watch anytime, anywhere, on any internet-connected device. They have an estimated EPS of $1.57 and Revenue of $6.6B, with expected revenues to increase by 20.7% this quarter.

Wednesday, January 20th, 2021

(Before Market Open) Procter & Gamble

One of the leaders in consumer staples who produce millions of goods is used across the globe. The company operates under five business segments Beauty, Grooming, Health Care, Fabric and Homecare, and family care. They are seen as a blue-chip stock that is safe equity to invest in. Current expected EPS of $1.59 and revenue of $19.15B, with an expected growth revenue of 5% quarterly and annual earnings of 4.9%.

(Before Market Open) Morgan Stanley

A financial services company that is a leader in its’ three primary businesses: securities, asset management, and credit services. They provide investment banking, financial planning services, sales and trading, and on-line brokerage services. Expected EPS of $1.40 and $11.08B revenue, with expected quarterly revenue to decrease by -17.2%.

(After Market Close) United Airlines

United Airlines, much like Delta last week, will continue to have earnings releases that are not up to the mark. The travel industry has been significantly tampered down since the global shutdown of Covid-19. Commercial airlines have been bleeding cash for three straight quarters, and with new travel restrictions, this will continue into Q1. With an expected EPS of -$6.36 and Revenue of $3.54B, it is expected that revenue has declined this quarter by 67.5%.

Thursday, January 21st, 2021

(Before Market Open) Fuel Cell

An alternative fuel company specializing in Hydrogen production to be used in turnkey products (Forklifts, EVs, etc.) With the new administration putting a heavy focus on Climate Change, we will have to keep a keen eye on the alternative energy companies to measure their revenue growth and operating margins. Expected EPS of $.03 and revenue of $15.92M, expected revenue this quarter is expected to increase by 44%.


(Before Market Open) Citrix

Citrix is a digital workspace leader; they provide access to instant chat, video conferencing, and cloud environments. They developed and now lead the workspace as a Service industry by providing an innovative, adaptable, and easy to use program. Businesses who wanted to endure through Covid-19 had to use digital workspace, and many of them flocked to Citrix. Expected EPS of $.81 and Revenue of $778M, with an expected revenue decrease by 3.8%.

(After Market Close) Intel

The world’s largest semiconductor maker has stifled these last few quarters. They recently had a CEO change due to a continued loss of market share in key segments of their business. They produce some critical pieces for digital processors, data centers, smartphones, video game systems, etc. Their expected EPS is $1.10, Revenue of $17.44B, and we expect a decreased quarterly revenue of 13.7%.

EVENTS & TALKS

Tuesday: Overall Net Capital Flows at 9:00 p.m. EST

Wednesday: President-Elect Joe Biden’s Inauguration 

Thursday: Jobless Claims 4-week Average at 1:30 p.m. EST

Friday: Existing Home Sales at 3:00 p.m. EST

MERCHANDISE

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DISCORD RECAP

Many notable names and plays for this past week; however, we would like to highlight our Zoom $ZM, Penn National $PENN, and Facebook $FB trades.

Moving forward, we will be focusing on charts that give us opportunities for multiple trades.

We have been eyeing Zoom’s chart for the past week and have not traded it until Wednesday of this past week.

This week, having patience on this trade paid off.

We bought the $410 calls for $3.10 and then added more, around $2.15.

We then sold this position at $5.68, or a 120% return on investment.  

Penn National Gaming, $PENN 

In last week’s newsletter, we covered Penn National research report. You can read the report here: Penn National Gaming Inc (PENN), January 9th, 2021 – Tiger-Wolf Capital

On Monday, Penn’s opening price was $90.59, and through the week, it quickly went up towards $107 and then pulled back down towards $99. 

However, this allowed us to catch out 3 of the trades for 100% return on investment. We were in the $PENN 115 calls for 2/12120 calls for 2/19, and the 130 calls for 2/26.

Facebook, $FB 

We bought and sold the $245 puts three times.

First trade we bought at $0.90 and sold at $1.2533% return on investment

Second trade, we rebought at $0.90 and sold 1.20, 30% return on investment

Third trade, we rebought at $0.9 and sold at 1.78; someone, please do the math.

To find out more about how and why we were able to do this, join our discord. 

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STOCKS ON OUR RADAR (1/19 – 1/22)

We are looking to short apple in the upcoming week.

Overall, tech in the last couple of weeks has been looking reasonably weak with low buying volume.

We anticipate a rector rotation from tech into energy.

We anticipate that Apple’s stock price will go from $127 to low $120 this upcoming week.

EDUCATIONAL LEARNING SEGMENT

“Show them every day why you are the best one for the job – Frank Mercado

Just because you have proved yourself before this does not mean you do not need to prove yourself time and time again.

Please do not take this as you are not good enough, but take it too good to forget.

You must prove to your significant other time and time again that you love them.

We must prove to our investors time and time again that we value their investment.

We must prove to the stock market repeatedly that we are ready for what it throws at us.

Copyright © Tiger Wolf Capital  All rights reserved.

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Newsletter 11 : Who Gives a Fuck? Stock Market All Time High

“Whether you think you can or think you can’t, you’re right”.–Henry Ford
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Thursday, January 8th Closing Price


TABLE OF CONTENTS

  1. WHERE IS JACK MA?
  2. GA SENATE ELECTION
  3. CAPITOL VIOLENCE
  4. BOEING
  5. BITCOIN
  6. BOEING FATAL CRASH
  7. LAST WEEK’S EARNINGS
  8. UPCOMING EARNINGS
  9. MERCHANDISE
  10. DISCORD RECAP
  11. STOCKS ON OUR RADAR
  12. EDUCATIONAL LEARNING SEGMENT
  13. VIDEO OF THE WEEK
MARKET LAST WEEK (1/4 – 1/8)
MARKET

MONDAY (1/4)

WHERE IS JACK MA?

Jack Ma, the co-founder of Alibaba and China’s third richest individual, has been absent from the public eye for the past couple months. This has started to gain some scrutiny and bring rise to concerns for many. Jack Ma’s failure to make an appearance at a game show for entrepreneurs in November also added cause for speculation. This led to an Alibaba spokeswoman issuing a statement today stating the absence was due to a scheduling conflict. Ma has been in seclusion ever since giving a speech where he publicly criticized and denounced chinese regulators claiming that they have thrown a wet blanket on innovation in the financial sector. It is unclear whether this speculation will lead to any significant impact on the stock value but Alibaba’s Hong-Kong listed shares fell 2.15% by close.

NYSE to continue listing three Chinese telecom giants

Late Monday night, the New York Stock Exchange issued a statement announcing that they no longer plan to delist China Telecom, China Mobile, and China Unicom.They NYSE originally planned to delist these companies to comply with an executive order signed by President Trump due to his concerns that companies and individuals may by investing in firms that aid the Chinese military. After further communication with authorities in the office of Foreign Assets Control to ensure compliance they have changed stance from their New Year’s Eve announcement. This is the first in a number of developments from this news as other major indices ranging from S&P Dow Jones indices to just the trading platform robinhood have taken steps to comply with President Trump’s executive order. Whether the President will take further steps for his executive order to become enforceable has yet to be determined.

TUESDAY (1/5)

GA SENATE ELECTION

GA Senate election opened in what will be a critical election for the next 2 years of policy making. Ossoff and Warnock show a lead in this important election. Having a democratic senate, house of representatives, and President of the United States will allow for massive policy shifts, and agenda’s actually being able to be completed. Joe Biden’s agenda will practically be reversing the last 4 years of the previous administration’s work and a senate majority will make the transition much smoother. A major fiscal change from the pending runoff election will be the possibility of enacting a new tax policy, climate change act, and even another Covid Relief bill.

WEDNESDAY (1/6)

CAPITOL VIOLENCE

In a stunning day for the U.S. several rioters supporting our current sitting President Donald Trump stormed the United States Capitol. This violent upheavel forced congress to pause deliberations they were having on the certification of results from the presidential election. The reaction to this nationwide has been swift and deliberate with several politicians calling for President Trump’s removal through impeachment or invoking the 25th amendment. While some rioters stated they hoped to inspire Republican lawmakers to support the President as the true winner of the election, it appears that the riot has had the opposite effect. A large number of Trump administration officials and staunch advocates of the President have switched stance with some resigning from his administration, chief among them being Secretary of Education Betsy Devos.

We are 14 days away from the Biden presidency. The Georgia runoff results at the moment seem to indicate a democratic win. If this holds this would mean the democrats would control both houses of congress and the executive branch. A high concern many had after Biden won the presidency was a divided congress may fork any of Biden’s efforts they may have not been in favor of. A common example of this is in the amount of stimulus spending Republicans in congress have tended to not be in favor of issuing large amounts of stimulus citing concerns of the nations overall debt. Yet, members of the FED and democrats cite the need for heavy spending now so we can return to economic levels pre-covid. Too little spending in the short-run may keep the national debt down but will likely result in slower growth which would likely mean a longer turnaround time until the nation can fully recover. Control of both houses will enable the Biden presidency to issue as much stimulus as they feel is needed. Biden a few hours ago indicated that a win in the senate would allow him to issue $2,000 stimulus checks the very week he takes off. Inexpensive loans to America’s largest companies may help with payroll but may not be the best way to put more money in the economy and keep the dollar circulating as best as possible. Putting money into the hands of the American people will directly help them in the continuation of the purchasing goods and services. This many economists argue is the best way to accelerate growth and keep the economy alive until we extinguish the pandemic.

In addition, control of both houses of congress should easily acerate a democratic attempt to make cannabis legal nationwide. It is important to note when the Obama-admin had control of both houses they did not put forth an effort for legalization nationwide. So there is no guarantee that this specific issue will be the first on Biden’s to-do list.  But given Biden’s given history of pushing the crime bill, a part of history that is very frowned upon today it is likely he will attempt to rectify this by pushing legalization and decriminalization of cannabis. The crime of possession alone in many states have led to the imprisonment and initialization of many non-violent offenders.

THURSDAY (1/7)
BOEING

Boeing charged with 737 Max Fraud conspiracy and agrees to pay over $2.5 Billion to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group in connection with Boeing’s 737 MAX airplane. They were charged with conspiracy to defraud the United States and under the defense protection act, Boeing will pay a total amount above $2.5 Billion. This payment consists of $1.77 Billion to the 737 Max Airline customers, Boeing established a $500 million dollar beneficiaries fund to help compensate all relatives from the 346passengers who passed in the two Boeing crashes. The remaining monetary punishment was derived from a criminal monetary penalty of $243.6 Million. “The misleading statements, half-truths,  and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public” – U.S. Attorney Erin Nealy Cox. Boeing admitted in court documents that they deceived the FAA AEG about an important part called the Maneuvering Characteristics Augmentation System (MCAS) that impacts the flight control system.

In other news, Europe’s Covid-19 vaccination program is taking a lot longer than citizens expected as tens of thousands are testing positive everyday. The United Kingdom and Germany are leading the pack in terms of vaccinations and even then they are not vaccinating at a fast enough pace. Citizens are demanding that the process begin to speed up and have more portions of the population to become vaccinated. The United Kingdom was prepared for Oxford University’s vaccine to become the leading vaccine and was put in a bad position when Pfizer had received approval. Overall many European countries are facing several logistic, and administrative issues with the implementation of the Covid-19 vaccine. European citizens have some of the highest levels of vaccine skepticism and this has caused some of the miscues across Western Europe.

FRIDAY (1/8)

BITCOIN- WHAT’S TO COME?

Cryptocurrencies have been experiencing significant increase in value as retail and institutional demand has increased steadily. At the forefront of this has been Bitcoin, which hit another all time high at 10 a.m. of $41,970 per coin. Bitcoin is up over 400% YTD against the dollar and this unprecedented runup has led to a surge in interest from previously skeptical investors. Whether or not this growth is sustainable has yet to be seen, although the industry’s biggest players have issued their own respective valuations. Bitcoin’s market cap is now in the range of $778 billion and some analysts have predicted astronomically high bitcoin prices. Hedge fund Morgan Creek Co-Founder Anthony Pompliano has projected for bitcoin to eventually hit $1 million in value. Despite widespread concerns that bitcoin is experiencing a bubble and has no long-term value, analyst Willy Woo has shared his opinion that 30% is the maximum projected pull back for bitcoin. Regardless of where we head next, the world is certainly eagerly awaiting.

SATURDAY (1/9)
BOEING EXPERIENCES ANOTHER FATAL CRASH

On Saturday, an Air Boeing 737 passenger airplane carrying 62 people crashed leaving Jakarta, on it’s way to Borneo. Indonesian authorities have located both black boxes and announced there is little to no hope of finding survivors in this tragic crash. Authorities have stated that there are no clues as to what cause the crash and the similarities it bears to the last fatal crashes. They key differences in this instance are that this aircraft is not a 737 max, the Boeing model that has been since 2019 until this past december for the two fatal crashes they experienced as well. The 737 from Saturday’s crash was also 26 years old and in good condition according to a Sriwijaya Air chief executive. The timing of this couldn’t be worse as just last week Boeing agreed to pay more than $2.5 Billion in criminal fines with the U.S. Department of Justice related to conspiracy to defraud the Federal Aviation Aviation in regards to the two fatal crashes of their 737 max. The implications of this latest news on Boeing’s share price is just the beginning. If it becomes clear that this crash is related to problems with the 737 max we can expect some seriously adverse consequences possibly culminating in Boeing being ordered to ground more planes or more cancelled contracts for the 737 max at a time when Boeing had just began what looked like a successful recovery from their recent woes.

REVIEW OF LAST WEEK’S EARNINGS
1/04 – 01/08

Color-Bed-Bath-and-Beyond-Logo - Optoro

Bed Bath & Beyond (Thursday Pre-Market)

Bed Bath & Beyond, a company that has been forced to reposition itself due to Covid-19. Much like a lot of other retailers they have had to shut down many of their storefronts and lateral their business to online sales.

Comparable sales increased for the second consecutive quarter, led by 5% growth in the core Bed Bath & Beyond banner. Comparable sales benefited from a significantly strong growth in digital channels, including 94% growth in the Bed Bath & Beyond online store and total enterprise growth of 77%. Net sales were $2.6 Billion, a decrease of 5% YoY, due to the significant portfolio transformation and store closing activity. In store sales reported a decline of 17% and an increase of digital sales by 75%. They have decreased SG&A expenses by $41 Million YoY driven primarily by lower payroll, advertising expenses, and related expenses. Net loss per diluted share of $(0.61) includes approximately $86 million from unfavorable impacts including net loss on the sale of businesses.

We will have to continue to monitor quarterly/annual reports moving forward to assess the success of Bed Bath & Beyond’s online business, reduction of debt by lowering lease liabilities, and portfolio optimization.

Walgreens Logos | Walgreens

Walgreens (Thursday Pre-Market)

Walgreens reported earnings pre-market this past Thursday that were better than analysts projection due to them improving operational performance across a number of fronts. While COVID-19 has presented a number of challenges in the retail space Walgreens has maintained their guidance for growth this year for adjusted earnings per share.

Walgreens reported the following:

  • Adjusted EPS was $1.22, a 11.6% lower than prior year on a constant currency basis.

  • COVID-19 AOI impact of approximately $290 million to $325 million (Lower than Q3 and Q4 from before)

  • Free cash flow of $763 million (Up 13% YoY)

  • Sales up 5.7% from Q1

  • Pharmacy sales up 3.9%

Takeaways:

Walgreens is committed to improving efficiency and minimizing risk to operations throughout this pandemic. Their confidence in this is reflected in the guidance they issued for this year, although they have warned that this was made with confidence in the effectiveness of the vaccine. A second round of lockdowns would prove extremely detrimental to their recent efforts and success despite the pandemic.

Thursday

File:Micron Technology logo.svg - Wikimedia Commons

Micron Technology (After Market Close)

Micron Technology, a world leader in memory and storage solutions, reported earnings last Thursday after-market close.  Micron is leading the industry in technological innovation and capability currently and their numbers, despite complications from pandemic, show that.

Micron reported the following:

  • FQ1 revenue was approximately $5.8 billion (representing 12% growth YoY)

  • FQ1 DRAM revenue was $4.1 billion (A 17% increase YoY)

  • FQ1 NAND revenue was approximately $1.6 billion (representing 27% of total revenue)

  • Revenue for networking business unit was approximately $2.5 Billion (A 29% increase YoY)

Takeaways:

Over the last four years, Micron has delivered average gross margins of 40%, EBITDA margins of 50% and return on invested capital of 20%. They just reported a record auto revenue quarter, as well NAND bit demand growth is projected to grow approximately 30%. Their promising outlook on 2021 appears

UPCOMING WEEK 1/11 – 01/15
EARNINGS