The week ahead 12/27/2021

Happy Monday!

Anyone else feeling incredibly refreshed after that long weekend? A very warm welcome to the 29 of you who have subscribed since last Monday — feel free to reply to this email if you have any questions.

A few updates from my end:

  • I’ve finished 2022 Portfolio: Mid-Caps Part 1 (detailing 15 out of the 30 mid-cap stocks I’m investing into throughout 2022), expect this to go live tomorrow. 2022 Portfolio: Mid-Caps Part 2 will be out by the end of the week, and 2022 Portfolio: Moonshots will be live very soon as well.

    • Don’t worry, I’ll be disclosing every single stock in my 2022 portfolio tomorrow. These updates will be found in the Google Sheet that paid subscribers already have access to tomorrow.

  • Wednesday, December 29, at 12p ET (noon) Katie Stockton and I are hosting a livestream — click this link and register, it’s completely free. I’ll be sharing some of the biggest “themes” I’m investing toward during 2022, while Katie shares the most interesting technical setups within them.

    • If you’ve been curious about technical analysis and how investors leverage it to identify the best “buy” and “sell” ranges, please join us and come with questions! Here’s a video of Katie sharing her thoughts about the market on December 1st, 2021.

If you can’t make the livestream, don’t worry!

It’ll be recorded and available for viewing at your convenience in perpetuity. If you plan to attend, be sure to carve out about 45 minutes of your day.

In this post, we’ll cover:

  • Hot IPOs taking place this week

  • Quarterly financial reports worth reading

  • Investor events to keep an eye on

  • Major economic releases

If you want to learn more about the companies mentioned in this post, consider using Unhedged to conduct your research.

The Investing Week Ahead – Too Long, Didn’t Read:

An incredibly light week — as to be expected. A Japanese makeup company goes public on the Nasdaq, absolutely no one is reporting their quarterly earnings results or hosting investor events, but we do get some added color on residential real estate prices this Tuesday.

IPOs to Watch this Week:

Of course the only notable company going public this week isn’t based in the US — where we’re all taking it easy and celebrating the holidays.

  • Yoshitsu (YOSH):

This Tokyo, Japan-based company founded to “provide a range of health and beauty products for consumers in Japan,” plans to raise $30 million this week through an IPO.

The company generated $221 million in revenue between April 1, 2020 and April 1, 2021 — with roughly 18% gross profit margins. This is a slight decline from 20% gross profit margins they experienced the previous fiscal year.

Interestingly enough, the company is indeed profitable — having generated $5.5 million in net income for shareholders during that April to April time period. But despite profitability, Yoshitsu is not free cash flow positive.

Management claims they plan to spend the $30 million in proceeds from the IPO on brand marketing, improving their distribution centers and logistics systems, sourcing talent, and opening new directly-operated physical stores and franchises.

This is a very small company — with only $221 million in annualized revenue and 18% gross profit margins, I’d be surprised if YOSH sees $1 billion in enterprise value anytime soon. After poking around their website, I just didn’t feel it — if you know what I mean.

This will not be a company I’m investing into. If you have an investment thesis for this company that I’m not seeing, please share it in the comments below!

Key Earnings Announcements:

Like ourselves, every company is taking it easy this week as we head into the New Year. We’ll begin to see Q4 results lap in throughout January and February.

If you’re itching to read recent financial earning releases, click below and scroll down. I detail Adobe, Accenture, FedEx, and Rivian’s Q3 results.

Investor Events:

As I’m sure you could imagine, the last thing CEOs and CFOs want to do right now are travel the country to be questioned by Wall Street analysts.

Again, if you’re just itching to read about recent investor events — click the link below. I detail Campbell’s Soup Investor Day, Lowe’s 2022 Financial Outlook, and Delta Air Lines Capital Markets Day.

Major Economic Updates:

Real estate is the name of the game this week.

December 28: Existing Home Price Index for October as reported by CoreLogic

December 30: US Initial Jobless Claims for the week ending December 25

It’s pretty interesting to see how existing home prices have fluctuated over the last few decades — before going parabolic during the pandemic due to rock bottom interest rates and lower supply.

It’s also really interesting to see how during the 2001 economic recession existing home prices continued to climb — something you’d expect to decline, as what happened in 1990 and 2008.

S&P / Cash-Shiller U.S. National Home Price Index

Don’t Forget!

Tomorrow I’m releasing my 2022 Portfolio: Mid-Caps Part 1 and Wednesday we’re hosting a livestream with the esteemed Katie Stockton from Fairlead Strategies (linked below).

I’m so excited to see what questions you all have for me and Katie!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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