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Ombow, Here's a list of eVTOL related companies by market cap (below). Next would be to check out the status of the current helicopter companies (Airbus, Bell, Boeing, Leonardo, Sikorsky). Chances are the most promising small e-VTOL companies will be acquired by these large behemoths -
Joby Aviation, Inc.(JOBY) (3.8 Bil), a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.
Eve Holding, Inc. (EVEX) (1.5 Bil), together with its subsidiaries, develops urban air mobility solutions. It is involved in the design and production of electrical vertical take-off and landing vehicles (eVTOLs); provision of eVTOL service and support capabilities, including material services, maintenance, technical support, training, ground handling, and data services; and development of urban air traffic management systems. The company is based in Melbourne, Florida. Eve Holding, Inc. operates as a subsidiary of Embraer S.A.
Archer Aviation Inc. (ACHR) (1.4 Bil), together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.
EHang Holdings Limited (EH) (1.2 Bil) operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.
Lilium N.V. (LILM) (507 mil), a transportation company, engages in the research and development of electric vertical takeoff and landing aircrafts and jet for use in high-speed air transport system for people and goods. It also provides aircraft manufacturer services, including training, maintenance operations, material and battery management, global distribution, flight operations support, ground service equipment, and digital solutions. Lilium N.V. was incorporated in 2015 and is headquartered in Wessling, Germany.
Vertical Aerospace Ltd. (EVTL) (252 mil), an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.
Blade Air Mobility, Inc. (BLDE) (214 mil) provides air transportation alternatives to the congested ground routes in the United States. It provides its services through charter and by-the-seat flights using helicopters, jets, turboprops, and amphibious seaplanes. The company was founded in 2014 and is headquartered in New York, New York.
Surf Air Mobility Inc. (SRFM) (62 mil) operates as an electric aviation and air travel company in the United States. It offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties; and air cargo services. The company is headquartered in Hawthorne, California.
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A list of eVTOL related companies by market cap (below). Next would be to check out the status of the current helicopter companies (Airbus, Bell, Boeing, Leonardo, Sikorsky). Chances are the most promising small e-VTOL companies will be acquired by these large behemoths -
Joby Aviation, Inc.(JOBY) (3.8 Bil), a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service. The company intends to build an aerial ridesharing service, as well as developing an application-based platform that will enable consumers to book rides. Joby Aviation, Inc. was founded in 2009 and is headquartered in Santa Cruz, California.
Eve Holding, Inc. (EVEX) (1.5 Bil), together with its subsidiaries, develops urban air mobility solutions. It is involved in the design and production of electrical vertical take-off and landing vehicles (eVTOLs); provision of eVTOL service and support capabilities, including material services, maintenance, technical support, training, ground handling, and data services; and development of urban air traffic management systems. The company is based in Melbourne, Florida. Eve Holding, Inc. operates as a subsidiary of Embraer S.A.
Archer Aviation Inc. (ACHR) (1.4 Bil), together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.
EHang Holdings Limited (EH) (1.2 Bil) operates as an autonomous aerial vehicle (AAV) technology platform company in the People's Republic of China, East Asia, West Asia, Europe, and internationally. It designs, develops, manufactures, sells, and operates AAVs, as well as their supporting systems and infrastructure for various industries and applications, including passenger transportation, logistics, smart city management, and aerial media solutions. The company was incorporated in 2014 and is headquartered in Guangzhou, the People's Republic of China.
Lilium N.V. (LILM) (507 mil), a transportation company, engages in the research and development of electric vertical takeoff and landing aircrafts and jet for use in high-speed air transport system for people and goods. It also provides aircraft manufacturer services, including training, maintenance operations, material and battery management, global distribution, flight operations support, ground service equipment, and digital solutions. Lilium N.V. was incorporated in 2015 and is headquartered in Wessling, Germany.
Vertical Aerospace Ltd. (EVTL) (252 mil), an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. The company was founded in 2016 and is headquartered in Bristol, the United Kingdom.
Blade Air Mobility, Inc. (BLDE) (214 mil) provides air transportation alternatives to the congested ground routes in the United States. It provides its services through charter and by-the-seat flights using helicopters, jets, turboprops, and amphibious seaplanes. The company was founded in 2014 and is headquartered in New York, New York.
Surf Air Mobility Inc. (SRFM) (62 mil) operates as an electric aviation and air travel company in the United States. It offers an air mobility platform with scheduled routes and on demand charter flights operated by third parties; and air cargo services. The company is headquartered in Hawthorne, California.
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>>> 7 eVTOL Stocks to Invest In the Full Range of Air Mobility
Leverage the 'verticals' of transportation
By Josh Enomoto
InvestorPlace
Jan 25, 2024
https://investorplace.com/2024/01/7-evtol-stocks-to-invest-in-the-full-range-of-air-mobility/
Toyota (TM): Toyota’s key investments in eVTOLs make it a conservative idea.
Honeywell (HON): Honeywell delivers critical technologies to air mobility platforms.
Embraer (ERJ): Embraer is leveraging its know-how to get into the eVTOL game.
Take your portfolio to the skies with compelling eVTOL stocks.
While everyday mobility generally occurs on the terrestrial realm, the vertical axis opens up several possibilities, thereby bolstering the basic case of eVTOL stocks. With electric vertical takeoff and landing aircraft, people can quickly and conveniently get to their destination. Better yet, these flying car stocks present holistic value.
Yes, when it comes to flying vehicle stocks, I suppose you can technically include helicopters in the mix. However, they’re loud – and when there are several in the area, they can impose nuisances on folks down on earth. In addition, helicopters aren’t exactly zero-emission vehicles. With eVTOLs, the platform is delivering the same benefits as electric vehicles but in the skies.
Further, let’s talk about the numbers behind air mobility stocks. According to MarketsandMarkets, the eVTOL market size could grow from $1.2 billion in 2023 to $23.4 billion by 2030. If so, that would represent a compound annual growth rate (CAGR) of 52%. And that might be on the conservative side, with Grand View Research projecting the air mobility market to hit $137.11 billion by 2035.
Fundamentally, the paradigm is shifting. Below are eVTOL stocks to consider.
Toyota (TM)
Let’s get something out of the way first. Japanese automotive giant Toyota (NYSE:TM) isn’t exactly a pure-play idea for eVTOL stocks. And to be sure, it has an “interesting” relationship with electric-powered mobility. Toyota Chairman Akio Toyoda continues to express his skepticism over EVs as sector sales decline amid tough economic conditions. Still, investors might not want to conflate EVs with air mobility endeavors.
For one thing, Toyota extended its partnership with eVTOL developer Joby Aviation (NYSE:JOBY) regarding a long-term supply arrangement. Ultimately, the mutual goal centers on reaching mass production of electric passenger aircraft in the U.S. Second, Toyota continues to conduct research and development regarding solid-state batteries. Should it be successful, such a rousing technology could translate to air mobility. Thus, it’s an intriguing idea for flying car stocks.
And frankly, it’s a credible play. With Toyota, you’re dealing with a consistently profitable enterprise. And with a trailing-year earnings multiple of only 9.92X, it’s undervalued. Therefore, it makes sense as a key member of flying vehicle stocks.
Honeywell (HON)
Again, let’s discuss the obvious point: Honeywell (NASDAQ:HON) is not a direct player in the competition within eVTOL stocks. However, that doesn’t mean the industrial conglomerate is irrelevant to the transportation paradigm shift. On the contrary, Honeywell’s applied sciences acumen is crucial for the safe and efficient operation of eVTOL aircraft.
According to the company’s website, it provides advanced flight controls for electric-powered aircraft; specifically, its fly-by-wire system. A significant innovation in aerospace, fly-by-wire means that the flight control inputs that pilots make are processed by computers rather than “analog” systems. It’s a complex piece of technology but the bottom line is that fly-by-wire adds tremendous stability to the aircraft. That’s kind of an important attribute.
Further, what makes HON a viable candidate for air mobility stocks is the underlying financials. True, it’s not the prettiest picture available. Nevertheless, the company enjoys consistent profitability and strong margins across the board. Also, analysts peg shares a consensus moderate buy with a $219.23 average price target. For a reasonable idea among eVTOL stocks, you probably can’t go wrong with Honeywell.
Embraer (ERJ)
A Brazilian multinational aerospace corporation, Embraer (NYSE:ERJ) might again not be one of the pure-play flying car stocks. However, because of its core business, it’s more related to the arena of air mobility than most other companies. Further, ERJ may organically benefit from improved economic conditions worldwide. Indeed, during the past 52 weeks, shares gained just over 39% of equity value.
However, as it relates to flying vehicle stocks, Embraer features an initiative called Eve, a new independent company that’s dedicated to accelerating the urban air mobility ecosystem. Here, Eve leverages Embraer’s 50-year history of engineering expertise to deliver 100% electric-powered flying cars. Further, the company indicates that while the underlying eVTOL aircraft will be piloted by humans at launch, it will eventually be ready for autonomous operations.
Now, unlike some of the other established names, Embraer doesn’t offer the most attractive financials. That said, ERJ trades at a forward earnings multiple of 14.77X, below the aerospace and defense industry’s median multiple of 17.16X. Analysts also rate shares a consensus strong buy with a $20.75 average price target. Thus, it could make for a tempting play for air mobility stocks.
Boeing (BA)
Admittedly, Boeing (NYSE:BA) is a tricky situation given recent safety concerns. According to a recent CNN article, Alaska Airlines (NYSE:ALK) found loose bolts on many Boeing 737 Max 9 jetliners. I don’t know about you but the terms “loose” and “bolts” are not words I want to hear under the context of flight; specifically, the context of my flight. Still, BA has been holding up surprisingly well from all the bad news.
Assuming we move forward from the fiasco, Boeing naturally makes for an intriguing idea for eVTOL stocks. Obviously, as a global leader in the aerospace industry, the company boasts extensive experience in aircraft design, manufacturing and certification. What may pique investors’ interest is Boeing’s experimentation with a solar-powered plane. In theory, such an aircraft could fly at high altitudes for years at a time.
Should momentum take off in that arena, the company would have a clear edge in zero emissions. In the meantime, BA stock is a beneficiary of its longstanding reputation. Despite recent wobbles, analysts peg shares a consensus strong buy with a $272.05 price target.
Archer Aviation (ACHR)
Moving onto the pure-play ideas for eVTOL stocks, Archer Aviation (NYSE:ACHR) concentrates exclusively on building air mobility craft. Per its public profile, Archer’s eVTOLs are designed around the transportation of people in mind as an air taxi service. Further, its vehicles can travel a distance of up to 100 miles at a speed of 150 miles per hour. As well, Archer inked a deal with United Airlines (NASDAQ:UAL), the former enterprise’s first major corporate partner.
Functionally, one of Archer’s top attributes is the design of its eVTOL aircraft. Featuring a 4-passenger configuration, it promises to deliver quieter operation and possibly greater efficiency compared to the competition. That’s significant because if the concept of air mobility stocks takes off, we could see tons of these craft in the sky. Unfortunately, that could create a compounding effect in terms of noise. So, anything to reduce this burden would be appreciated.
Still, all pioneering businesses carry risks. For Archer, it remains a narrative play, with the company not generating revenue yet. Nevertheless, that hasn’t stopped analysts from rating ACHR a consensus strong buy with an $8.13 average price target.
Blade Air Mobility (BLDE)
Ramping up the risk-reward profile in eVTOL stocks, we find Blade Air Mobility (NASDAQ:BLDE). An aviation specialist headquartered in New York City, Blade’s urban air mobility platform provides air transportation for passengers. As well, it offers last-mile services related to critical cargo, primarily via helicopters and amphibious aircraft. Fun fact: it’s also one of the largest air medical transporters of human organs.
However, the market hasn’t really treated BLDE that well despite its myriad relevancies. Looking at its 52-week chart, shares lost more than 27% of equity value. It’s also off to an inauspicious start to the new year, dipping over 7%. Nevertheless, the urban air mobility may offer significant upside for Blade Air Mobility. Per Mordor Intelligence, the segment could reach a value of $45.4 billion by 2036. That would imply a CAGR of 23.54% from 2024.
As with other flying car stocks, you’re taking a big risk in terms of viability. However, Blade has the advantage of posting a three-year revenue growth rate of 18.5%, above 78.26% of its peers. Analysts also peg shares a unanimous strong buy with an $8.17 price target.
Surf Air Mobility (SRFM)
Easily the riskiest idea on this list of eVTOL stocks, Surf Air Mobility (NYSE:SRFM) is really only appropriate for speculators. As you can see from its price chart, SRFM carries a price tag of only a little over a buck. Most would call that penny stock territory. Also, its market capitalization sits at around $86 million. That’s barely above the nano-cap threshold of $50 million.
Oh yeah – shares lost nearly 63% of equity value in the trailing year. I’m not trying to cast aspersions. It’s just that you’ve got to be super-careful here.
With all that said, Surf Air does deliver a compelling narrative. Currently, the enterprise focuses on luxury travel, catering to a smaller (but ultimately more profitable) niche market. By providing premium, personalized air travel, Surf Air could potentially be viable sooner. Basically, it would be addressing a higher-income crowd instead of waiting for the air mobility industry to scale.
Still, revenue growth has slowed between 2022’s results and the trailing 12-month performance. So, caution is a must. At the same time, analysts rate shares a buy with a robust $3.31 price target.
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Ombow, Since these VTOLs are clearly going to happen, how to invest in it is the next question. It would require some research, but sounds like an interesting quest. Here are some ideas -
>>> 7 eVTOL Stocks to Invest In the Full Range of Air Mobility
Leverage the 'verticals' of transportation
By Josh Enomoto
InvestorPlace
Jan 25, 2024
https://investorplace.com/2024/01/7-evtol-stocks-to-invest-in-the-full-range-of-air-mobility/
Toyota (TM): Toyota’s key investments in eVTOLs make it a conservative idea.
Honeywell (HON): Honeywell delivers critical technologies to air mobility platforms.
Embraer (ERJ): Embraer is leveraging its know-how to get into the eVTOL game.
Take your portfolio to the skies with compelling eVTOL stocks.
While everyday mobility generally occurs on the terrestrial realm, the vertical axis opens up several possibilities, thereby bolstering the basic case of eVTOL stocks. With electric vertical takeoff and landing aircraft, people can quickly and conveniently get to their destination. Better yet, these flying car stocks present holistic value.
Yes, when it comes to flying vehicle stocks, I suppose you can technically include helicopters in the mix. However, they’re loud – and when there are several in the area, they can impose nuisances on folks down on earth. In addition, helicopters aren’t exactly zero-emission vehicles. With eVTOLs, the platform is delivering the same benefits as electric vehicles but in the skies.
Further, let’s talk about the numbers behind air mobility stocks. According to MarketsandMarkets, the eVTOL market size could grow from $1.2 billion in 2023 to $23.4 billion by 2030. If so, that would represent a compound annual growth rate (CAGR) of 52%. And that might be on the conservative side, with Grand View Research projecting the air mobility market to hit $137.11 billion by 2035.
Fundamentally, the paradigm is shifting. Below are eVTOL stocks to consider.
Toyota (TM)
Let’s get something out of the way first. Japanese automotive giant Toyota (NYSE:TM) isn’t exactly a pure-play idea for eVTOL stocks. And to be sure, it has an “interesting” relationship with electric-powered mobility. Toyota Chairman Akio Toyoda continues to express his skepticism over EVs as sector sales decline amid tough economic conditions. Still, investors might not want to conflate EVs with air mobility endeavors.
For one thing, Toyota extended its partnership with eVTOL developer Joby Aviation (NYSE:JOBY) regarding a long-term supply arrangement. Ultimately, the mutual goal centers on reaching mass production of electric passenger aircraft in the U.S. Second, Toyota continues to conduct research and development regarding solid-state batteries. Should it be successful, such a rousing technology could translate to air mobility. Thus, it’s an intriguing idea for flying car stocks.
And frankly, it’s a credible play. With Toyota, you’re dealing with a consistently profitable enterprise. And with a trailing-year earnings multiple of only 9.92X, it’s undervalued. Therefore, it makes sense as a key member of flying vehicle stocks.
Honeywell (HON)
Again, let’s discuss the obvious point: Honeywell (NASDAQ:HON) is not a direct player in the competition within eVTOL stocks. However, that doesn’t mean the industrial conglomerate is irrelevant to the transportation paradigm shift. On the contrary, Honeywell’s applied sciences acumen is crucial for the safe and efficient operation of eVTOL aircraft.
According to the company’s website, it provides advanced flight controls for electric-powered aircraft; specifically, its fly-by-wire system. A significant innovation in aerospace, fly-by-wire means that the flight control inputs that pilots make are processed by computers rather than “analog” systems. It’s a complex piece of technology but the bottom line is that fly-by-wire adds tremendous stability to the aircraft. That’s kind of an important attribute.
Further, what makes HON a viable candidate for air mobility stocks is the underlying financials. True, it’s not the prettiest picture available. Nevertheless, the company enjoys consistent profitability and strong margins across the board. Also, analysts peg shares a consensus moderate buy with a $219.23 average price target. For a reasonable idea among eVTOL stocks, you probably can’t go wrong with Honeywell.
Embraer (ERJ)
A Brazilian multinational aerospace corporation, Embraer (NYSE:ERJ) might again not be one of the pure-play flying car stocks. However, because of its core business, it’s more related to the arena of air mobility than most other companies. Further, ERJ may organically benefit from improved economic conditions worldwide. Indeed, during the past 52 weeks, shares gained just over 39% of equity value.
However, as it relates to flying vehicle stocks, Embraer features an initiative called Eve, a new independent company that’s dedicated to accelerating the urban air mobility ecosystem. Here, Eve leverages Embraer’s 50-year history of engineering expertise to deliver 100% electric-powered flying cars. Further, the company indicates that while the underlying eVTOL aircraft will be piloted by humans at launch, it will eventually be ready for autonomous operations.
Now, unlike some of the other established names, Embraer doesn’t offer the most attractive financials. That said, ERJ trades at a forward earnings multiple of 14.77X, below the aerospace and defense industry’s median multiple of 17.16X. Analysts also rate shares a consensus strong buy with a $20.75 average price target. Thus, it could make for a tempting play for air mobility stocks.
Boeing (BA)
Admittedly, Boeing (NYSE:BA) is a tricky situation given recent safety concerns. According to a recent CNN article, Alaska Airlines (NYSE:ALK) found loose bolts on many Boeing 737 Max 9 jetliners. I don’t know about you but the terms “loose” and “bolts” are not words I want to hear under the context of flight; specifically, the context of my flight. Still, BA has been holding up surprisingly well from all the bad news.
Assuming we move forward from the fiasco, Boeing naturally makes for an intriguing idea for eVTOL stocks. Obviously, as a global leader in the aerospace industry, the company boasts extensive experience in aircraft design, manufacturing and certification. What may pique investors’ interest is Boeing’s experimentation with a solar-powered plane. In theory, such an aircraft could fly at high altitudes for years at a time.
Should momentum take off in that arena, the company would have a clear edge in zero emissions. In the meantime, BA stock is a beneficiary of its longstanding reputation. Despite recent wobbles, analysts peg shares a consensus strong buy with a $272.05 price target.
Archer Aviation (ACHR)
Moving onto the pure-play ideas for eVTOL stocks, Archer Aviation (NYSE:ACHR) concentrates exclusively on building air mobility craft. Per its public profile, Archer’s eVTOLs are designed around the transportation of people in mind as an air taxi service. Further, its vehicles can travel a distance of up to 100 miles at a speed of 150 miles per hour. As well, Archer inked a deal with United Airlines (NASDAQ:UAL), the former enterprise’s first major corporate partner.
Functionally, one of Archer’s top attributes is the design of its eVTOL aircraft. Featuring a 4-passenger configuration, it promises to deliver quieter operation and possibly greater efficiency compared to the competition. That’s significant because if the concept of air mobility stocks takes off, we could see tons of these craft in the sky. Unfortunately, that could create a compounding effect in terms of noise. So, anything to reduce this burden would be appreciated.
Still, all pioneering businesses carry risks. For Archer, it remains a narrative play, with the company not generating revenue yet. Nevertheless, that hasn’t stopped analysts from rating ACHR a consensus strong buy with an $8.13 average price target.
Blade Air Mobility (BLDE)
Ramping up the risk-reward profile in eVTOL stocks, we find Blade Air Mobility (NASDAQ:BLDE). An aviation specialist headquartered in New York City, Blade’s urban air mobility platform provides air transportation for passengers. As well, it offers last-mile services related to critical cargo, primarily via helicopters and amphibious aircraft. Fun fact: it’s also one of the largest air medical transporters of human organs.
However, the market hasn’t really treated BLDE that well despite its myriad relevancies. Looking at its 52-week chart, shares lost more than 27% of equity value. It’s also off to an inauspicious start to the new year, dipping over 7%. Nevertheless, the urban air mobility may offer significant upside for Blade Air Mobility. Per Mordor Intelligence, the segment could reach a value of $45.4 billion by 2036. That would imply a CAGR of 23.54% from 2024.
As with other flying car stocks, you’re taking a big risk in terms of viability. However, Blade has the advantage of posting a three-year revenue growth rate of 18.5%, above 78.26% of its peers. Analysts also peg shares a unanimous strong buy with an $8.17 price target.
Surf Air Mobility (SRFM)
Easily the riskiest idea on this list of eVTOL stocks, Surf Air Mobility (NYSE:SRFM) is really only appropriate for speculators. As you can see from its price chart, SRFM carries a price tag of only a little over a buck. Most would call that penny stock territory. Also, its market capitalization sits at around $86 million. That’s barely above the nano-cap threshold of $50 million.
Oh yeah – shares lost nearly 63% of equity value in the trailing year. I’m not trying to cast aspersions. It’s just that you’ve got to be super-careful here.
With all that said, Surf Air does deliver a compelling narrative. Currently, the enterprise focuses on luxury travel, catering to a smaller (but ultimately more profitable) niche market. By providing premium, personalized air travel, Surf Air could potentially be viable sooner. Basically, it would be addressing a higher-income crowd instead of waiting for the air mobility industry to scale.
Still, revenue growth has slowed between 2022’s results and the trailing 12-month performance. So, caution is a must. At the same time, analysts rate shares a buy with a robust $3.31 price target.
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Ombow, Yes, basically everything that helicopters are used for now. However, there may be a fundamental issue with 'scalability', due to the weight of the batteries required. A really big electric helicopter that can carry 20 troops with full gear may not be feasible yet due to the high weight of the required batteries. But for smaller helicopters the e-VTOL approach looks ideal.. As battery science advances, the weight issues can be resolved, allowing larger aircraft and bigger payloads.
Another aspect with these e-VTOLs is that they are 'fly by wire', ie the ability to maneuver and remain in flight is completely dependent upon electronics rather than mechanical means. I remember the F-16 was the first US fighter to go 'fly by wire', and there were initially big problems when flying over certain transmission towers - they would interfere with the electronics and this caused numerous F-16 crashes in Europe. That presumably has been fixed, but 'fly by wire' is still a vulnerability since these aircraft can't remain in flight if their computer / electronics malfunction.
But overreliance on electronic systems has become the broader 'Achilles Heel' of modern civilization. One big EMP/Electromagnetic pulse and these electronics are fried, and we're instantly back to the Stone Age. On the aircraft side, my dad was involved with the 'doomsday' escape helicopter to be used by the President in the event of nuclear war or other emergencies. It was heavily modified and the electronics were 'hardened' against EMP. That was in the 1980s, but now every aspect of modern life is completely dependent on microelectronics, and virtually none of it is hardened against EMP. It's the ticking time bomb that ultimately sends us back to the Stone Age. Russia and China are reportedly hardening their power grids against EMP, at least to some extent, but in the US, nothing.
The extreme EMP vulnerability is not just from orbital nuclear devices, but from a large solar EMP striking the Earth (Carrington Event). Current microelectronics are ~ 1 million times more vulnerable to EMP than were earlier electrical systems. So the clock is ticking for our 'digital everything' world, and we've collectively painted ourselves into a corner. High technology = high vulnerability -
Carrington Event -
https://en.wikipedia.org/wiki/Carrington_Event
Palantir - >>> Analyst who correctly forecast Palantir's stock rally updates outlook
The Street
by Todd Campbell
Mar 29, 2024
https://finance.yahoo.com/news/analyst-correctly-forecast-palantirs-stock-173300455.html
The artificial intelligence boom has helped many tech stocks, including Palantir Technologies, produce market-beating returns.
While the S&P 500's 10% first-quarter return is nothing to sneeze at, Palantir shares surged 34%. Its shares also substantially outperformed the benchmark index over the past year, returning 172% since March 2023. Meanwhile, the S&P 500 is up about 29%.
Those extraordinary gains likely surprised many investors who were concerned that the Peter Thiel-founded company would struggle because the possible recession and congressional wrangling over the debt ceiling would dent demand.
However, where others saw risk, TheStreet Pro's Stephen Guilfoyle saw an opportunity. He bought shares when they were trading below $10 in April 2023, allowing him to profit handsomely from surging optimism over AI spending.
Given Palantir's shares rocket-ship ride higher and a current price near $23, Guilfoyle has updated his analysis and stock price target.
Palantir's demand driven by AI wave
Guilfoyle's purchase of Palantir stock last year was based on its strong, debt-free balance sheet, improving free cash flow, and a clearer pathway to profit growth.
The highly successful launch of OpenAI's ChatGPT in December 2022 has proven to be a boon for the company, making Guilfoyle's prediction prescient.
Interest in using AI to digest, interpret, and create new insights from siloed data has swelled across most industries, resulting in the most rapid research and development since the Internet Age in the 1990s.
Banks are using AI programs to hedge risks, evaluate loans, and price products. Drugmakers are exploring its use in predicting drug targets and clinical trial outcomes. Manufacturers are evaluating if it can boost production and quality. AI may also help retailers forecast demand, manage inventories, and curb theft.
AI's widespread applications seem boundless, which has led many companies and governments to turn to Palantir's deep expertise in managing and protecting data for help in training and running new AI apps.
Palantir's (PLTR) roots stretch back to helping the U.S. government design systems for counter-terrorism. Its Gotham platform continues to assist governments in those efforts today. It also offers solutions that manage, interpret, and report data across enterprise and cloud networks to large companies too.
Its deep data experience positioned it perfectly to help customers design large language models and other AI solutions using its AI platform (AIP).
"The demand for [Artificial Intelligence Platform] AIP is unlike anything we have seen in the past twenty years," said CEO Alan Karp last summer. "We are currently in discussions with more than three hundred additional enterprises to deploy AIP within their organizations, all of which are searching for an effective and secure means of adapting the latest large language models for use on their internal systems and proprietary data."
Karp's optimism appears to have been well-placed. Palantir's year-over-year sales growth has exceeded 20% in each of the past three quarters, and its earnings per share growth in each of those quarters has been in the double-digit percentages.
Revenue totaled $736 million and earnings per share were 9 cents in the fourth quarter, up 21% and 16% from the previous year.
Wall Street analysts think Palantir's profit growth will continue. The consensus analyst estimate for earnings in 2024 and 2024 is 33 cents and 39 cents, respectively, an increase of 34% and 17%.
Palantir pause may set up another opportunity
Initially, Guilfoyle's Palantir stock price target was $12. However, he bumped that target to $18 last June, $20 last July, and $22 last August.
Shares eclipsed $22 in February, reaching a high of $27.5 in early March. Since then, they've retreated about 16% to $23.
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Palantir - >>> Analyst who correctly forecast Palantir's stock rally updates outlook
The Street
by Todd Campbell
Mar 29, 2024
https://finance.yahoo.com/news/analyst-correctly-forecast-palantirs-stock-173300455.html
The artificial intelligence boom has helped many tech stocks, including Palantir Technologies, produce market-beating returns.
While the S&P 500's 10% first-quarter return is nothing to sneeze at, Palantir shares surged 34%. Its shares also substantially outperformed the benchmark index over the past year, returning 172% since March 2023. Meanwhile, the S&P 500 is up about 29%.
Those extraordinary gains likely surprised many investors who were concerned that the Peter Thiel-founded company would struggle because the possible recession and congressional wrangling over the debt ceiling would dent demand.
However, where others saw risk, TheStreet Pro's Stephen Guilfoyle saw an opportunity. He bought shares when they were trading below $10 in April 2023, allowing him to profit handsomely from surging optimism over AI spending.
Given Palantir's shares rocket-ship ride higher and a current price near $23, Guilfoyle has updated his analysis and stock price target.
Palantir's demand driven by AI wave
Guilfoyle's purchase of Palantir stock last year was based on its strong, debt-free balance sheet, improving free cash flow, and a clearer pathway to profit growth.
The highly successful launch of OpenAI's ChatGPT in December 2022 has proven to be a boon for the company, making Guilfoyle's prediction prescient.
Interest in using AI to digest, interpret, and create new insights from siloed data has swelled across most industries, resulting in the most rapid research and development since the Internet Age in the 1990s.
Banks are using AI programs to hedge risks, evaluate loans, and price products. Drugmakers are exploring its use in predicting drug targets and clinical trial outcomes. Manufacturers are evaluating if it can boost production and quality. AI may also help retailers forecast demand, manage inventories, and curb theft.
AI's widespread applications seem boundless, which has led many companies and governments to turn to Palantir's deep expertise in managing and protecting data for help in training and running new AI apps.
Palantir's (PLTR) roots stretch back to helping the U.S. government design systems for counter-terrorism. Its Gotham platform continues to assist governments in those efforts today. It also offers solutions that manage, interpret, and report data across enterprise and cloud networks to large companies too.
Its deep data experience positioned it perfectly to help customers design large language models and other AI solutions using its AI platform (AIP).
"The demand for [Artificial Intelligence Platform] AIP is unlike anything we have seen in the past twenty years," said CEO Alan Karp last summer. "We are currently in discussions with more than three hundred additional enterprises to deploy AIP within their organizations, all of which are searching for an effective and secure means of adapting the latest large language models for use on their internal systems and proprietary data."
Karp's optimism appears to have been well-placed. Palantir's year-over-year sales growth has exceeded 20% in each of the past three quarters, and its earnings per share growth in each of those quarters has been in the double-digit percentages.
Revenue totaled $736 million and earnings per share were 9 cents in the fourth quarter, up 21% and 16% from the previous year.
Wall Street analysts think Palantir's profit growth will continue. The consensus analyst estimate for earnings in 2024 and 2024 is 33 cents and 39 cents, respectively, an increase of 34% and 17%.
Palantir pause may set up another opportunity
Initially, Guilfoyle's Palantir stock price target was $12. However, he bumped that target to $18 last June, $20 last July, and $22 last August.
Shares eclipsed $22 in February, reaching a high of $27.5 in early March. Since then, they've retreated about 16% to $23.
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Ombow, Looking at these e-VTOLS, it seems inevitable that they will eventually replace the older traditional helicopters. There are just too many advantages. Not so much for the 'air taxi' application, but for basically everything that current helicopters do. The shorter flying times will be fixed by new battery technologies, as will the slow re-charging times. The traffic helicopters, police helicopters, etc -- over time these will inevitably transition to this new e-VTOL approach.
Here is the basic rationale that I posted over on the Boeing board earlier today (below). The big advantages (huge) are the redundancy of the engines (lose 1, 2, even 3, no problem), and no vibration (which is what causes the structural fatigue and failures, lost rotors, etc) -
>>> I wouldn't buy the stocks either, but it's an interesting technology to follow. The proposed business model - VTOL 'taxi service', I don't see being very viable if you can only carry a handful of passengers at a time. They also have to periodically recharge the electric batteries, so lots of downtime, and the cost of these aircraft will be steep. Business-wise, better off just buying a fleet of yellow cabs. But the technology is super cool, so that's the attraction :o)
The 'redundancy' aspect of having so many engines is a huge safety plus, and the lack of vibration eliminates one of the biggest problems with helicopters. My dad was a pilot and an aeronautical engineer, and in the 1980s did some modification work on helicopters. He said he would absolutely never get in one. But these new electric VTOLs eliminate some of the biggest problems. <<<
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174143128
JOBY and ACHR -
From Wikipedia -
JOBY has received funding from Toyota and Delta Airlines. Also a partnership with Garmin for the flight deck equipment. JOBY's founder is billionaire 'serial' entrepreneur JoeBen Bevirt -
https://en.wikipedia.org/wiki/Joby_Aviation
Archer Aviation (ACHR) reportedly received an order for 100 aircraft from United Airlines. Also a partnership with Stellantis and investments from Boeing -
https://en.wikipedia.org/wiki/Archer_Aviation
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Ombow, I see JOBY has received funding from Toyota and Delta Airlines. Also a partnership with Garmin for the flight deck equipment. JOBY's founder is billionaire 'serial' entrepreneur JoeBen Bevirt -
https://en.wikipedia.org/wiki/Joby_Aviation
Archer Aviation (ACHR) reportedly received an order for 100 aircraft from United Airlines. Also a partnership with Stellantis and investments from Boeing -
https://en.wikipedia.org/wiki/Archer_Aviation
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Bar, I wouldn't buy the stocks either, but it's an interesting technology to follow. The proposed business model - VTOL 'taxi service', I don't see being very viable if you can only carry a handful of passengers at a time. They also have to periodically recharge the electric batteries, so lots of downtime, and the cost of these aircraft will be steep. Business-wise, better off just buying a fleet of yellow cabs. But the technology is super cool, so that's the attraction :o)
The 'redundancy' aspect of having so many engines is a huge safety plus, and the lack of vibration eliminates one of the biggest problems with helicopters. My dad was a pilot and an aeronautical engineer, and in the 1980s did some modification work on helicopters. He said he would absolutely never get in one. But these new electric VTOLs eliminate some of the biggest problems.
Xena, Thanks. I'll keep an eye on LWLG :o)
Fwiw, my own investment strategy has evolved into more of a shotgun approach, with small positions in lots of different stocks and sectors (with nice long term charts). I tried the 'mega position in one stock' approach, but had poor results, and almost went nuts (and broke). So I figure each investor is different, and whatever works :o)
Here I am after a mega stock bet lol..
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Bar, Here's the next generation VTOL for the military - Bell V-280 Valor (see below).
Btw, those small VTOL companies (JOBY, ACHR), are not penny stocks -> market caps are 3.7 bil and 1.4 bil respectively. Fwiw, they look considerably safer than this Bell V-280 Valor. Lose an engine or two (or three) and the Joby or Archer just keep on flying. With the Bell V-280 Valor you're in a heap of trouble -
Bell V-280 Valor -
https://en.wikipedia.org/wiki/Bell_V-280_Valor
Bigworld, I think you meant Energy Transfer (ET), which has a phenomenal 8% dividend, but as an LP I think there is probably a Schedule K-1 at tax time. I get around that by owning TRP and ENB, which have the high dividends (over 7%), but no K-1.
On the hard asset / commodity side, a lot of the basic materials stocks have been doing well. In the concrete / aggregates area are Vulcan Materials (VMC) and Martin Marietta Materials (MLM), and there's also the industrial gases sector (Linde - LIN).
In lumber / wood there is UFPI, which overlaps with the homebuilding related sectors which also look good (ITB, BLDR, TREX) and also the HVAC stocks (AAON, LII, TT), and these have nice long term charts for buy / hold. While just about everything is entering near term overbought territory, I figure they are good longer term buy / holds.
The water sector is another great area, and should be fairly recession-proof. In addition to the ETFS (FIW, PHO), some solid long term ideas are BMI, FELE, IEX, ROP, TTEK, WTS.
In agro, I went with the machinery side (ALG, DE) rather than the actual commodities. There's also a great rural retailer - TSCO.
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Ombow, It looks like JOBY has completed Phase 3 of the 5 part certification process -
>>> Joby Completes Third Stage of FAA Certification Process
https://finance.yahoo.com/news/joby-completes-third-stage-faa-130000733.html
<<<
JOBY has a mega cool technology, but I wonder about the economic viability of their air taxi business model since it only carries 4 passengers. They're going to have to charge a lot for that businessmen's flight to the airport, one would think. Another potential target market would be as a play toy for rich guys. That works great for high end cars like Ferrari, but for JOBY the rich guys would also need to have a pilot's license, and that would be a very small number of customers. Even if they make the aircraft 'autonomous' so you don't actually need a pilot's license, the cost is going to be very high, so a very limited market, one would think. The military is reportedly looking at the JOBY, but what they need is something big to replace the Osprey, and that's already in the works (Bell V-280 Valor).
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174005617
So while super cool, I figure these air taxis might remain a relatively small niche product. Just a guess though.
Btw, check out these crazy guys. Looks like fun, but..
Bigworld, I may be joining you with more investments in the hard asset categories. I'm thinking more exposure to the miners may be a good idea -- RIO, BHP, and possibly SCCO for the copper angle, though it may need a pullback first. The ETF (PICK) is another idea. Looking at some of their high dividends makes it tempting - RIO - 6.8%, BHP - 5.3%. Not bad, and would make up for the higher volatility and somewhat less than stellar long term charts.
The steel sector is another idea. STLD has a decent long term chart, although overbought in the near term. In the nuclear related sector, I've been looking at BWXT as a longer term buy / hold. It's way up though, so maybe on a pullback. They are diversified with both military and commercial sides -
>>> BWX Technologies, Inc. (BWXT), together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia. <<<
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Bigworld, The Fed guidance is still for 3 cuts this year, and Rickards is predicting July, Nov, and Dec. He says Oct is out since it's too close to the election. Also, skipping June will allow time for more economic and inflation data, so July will be the first cut. The Fed meeting in Nov isn't until late in the month, which is safely clear of the election.
Anyway, sounds like a likely timeline for the cuts. Having % rates coming down 'should' provide a decent tailwind for the stock markets for some time, so I have the stock allocation at 28% - enough to participate but not enough to be a disaster if things get derailed. Fwiw, I have the stock allocation set up with most of it in the S+P 500, so if things come unglued it's an easy exit with that portion, and can then use the proceeds to hedge the individual stock component via a 1X short ETF like SH. Hopefully won't have to, but the option is there if necessary.
<<<
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Xena, While the LWLG deal last June was good to see, it sounds more like a 'kicking the tires' type thing, rather than something that will generate significant revenues anytime soon. But still nice to have that first deal. I assume this is the only official deal so far? The CEO has hinted at more to come, but the overall bearish stock chart may suggest investors are in 'show me' mode. Press releases about higher Gbps speeds are nice, but eventually there needs to be deals, or even (gasp) --> products and revenues. So still seems like it's in the 'story stock' realm, albeit with an interesting story. I've heard LWLG described as the classic 'perpetual startup', but hopefully the breakthrough will come this year. GL with it :o)
>>> Lightwave Logic reaches electro-optic polymer materials commercialization with supply license agreement
June 1, 2023 <<<
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174134080
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Derf, SCCO looks like a nice trade :o)
I'm thinking more of a longer term buy / hold for the copper aspect, and also the broader mining space like RIO, BHP, etc. I currently have almost no exposure there, other than via the S+P 500, so might be time to add a few names to the overall portfolio mix. The long term charts aren't really steady enough, but some nice dividends to make up for it, especially RIO and BHP -
RIO - 6.8%
BHP - 5.3%
PICK - 3.2%
SCCO - 3.0%
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Scotts Miracle Gro - >>> Hawthorne and BFG Supply Forge Strategic Distribution Partnership
Scotts Miracle-Gro Company
March 20, 2024
https://finance.yahoo.com/news/hawthorne-bfg-supply-forge-strategic-210000117.html
Move enables Hawthorne to bolster focus on innovation and investment in its proprietary Signature brands
BFG’s national distribution network and high-quality customer support model bring a new level of service for customers
MARYSVILLE, Ohio, March 20, 2024 (GLOBE NEWSWIRE) -- The Hawthorne Gardening Company, a wholly-owned subsidiary of The Scotts Miracle-Gro Company, and BFG Supply, a leading national horticultural and agricultural product distributor, today announced the formation of a strategic partnership under which BFG will distribute Hawthorne’s proprietary Signature brand cultivation supplies and solutions.
The partnership is a key element of both companies’ broader strategies to capitalize on growth opportunities within the hydroponic products industry and deliver value-accretive solutions to growers.
Hawthorne strategy
Hawthorne is discontinuing the distribution of products from other companies and shifting its focus solely to marketing, innovating and supporting its vast portfolio of Signature brands, including Gavita, General Hydroponics, Botanicare, Cyco, Mother Earth, HydroLogic, Gro Pro and more. These changes enable Hawthorne to realign and optimize its operations. In parallel, BFG will become a key partner for distributing Signature products to many Hawthorne customers. BFG has a national distribution network and a track record of exceptional customer support.
“The moves we are making not only serve as a catalyst for Hawthorne’s growth, but also bring both short- and long-term benefits to the retailers who sell our products and the growers who use them,” said Tom Crabtree, COO of Hawthorne. “By sharpening our focus, we will deploy more resources into initiatives and programs that further drive our industry-leading brands as well as enhance customer service and experiences. BFG shares in our commitment and will be a key partner to help us execute our strategy.”
BFG strategy
Since 2016, BFG has expanded its market distribution strategy in the hydroponic and professional growers space in response to customers seeking one distribution partner with a comprehensive product assortment to create efficiencies in running their business. Through this new strategic distribution partnership, BFG will be the leading distributor for all Hawthorne Signature brands and third-party products to hydroponic retail businesses through its national distribution footprint beginning in Q2 of this calendar year.
"As BFG expands our best-in-class national distribution services to help more customers gain better access to products in the hydroponic and professional grower markets, we are excited to partner with Hawthorne as the trusted brand and distribution supplier for their industry-leading product lines,” said Mark Goshgarian, chief revenue officer, BFG. “We are committed to delivering world-class customer distribution services to our customers seamlessly and efficiently, and we believe this partnership is a testament to that customer promise.”
About Hawthorne Gardening Company
Hawthorne Gardening Company is the leading provider of nutrients, lighting and other products used by a wide range of growers, from hobbyists to professional cultivators and controlled-environment growers. The company is dedicated to creating high-quality products under its Signature brand portfolio and driving innovation founded in social and environmental responsibility. For more information, visit www.hawthornegc.com.
About BFG Supply
BFG is a leading national distribution partner and supplier of products including more than 1,000 trusted vendor partners across all horticultural and agricultural segments. Our mission is to provide simple and seamless access to world-class products and services to our valued customers when they need them.
<<<
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Scotts Miracle Gro - >>> Hawthorne and BFG Supply Forge Strategic Distribution Partnership
Scotts Miracle-Gro Company
March 20, 2024
https://finance.yahoo.com/news/hawthorne-bfg-supply-forge-strategic-210000117.html
Move enables Hawthorne to bolster focus on innovation and investment in its proprietary Signature brands
BFG’s national distribution network and high-quality customer support model bring a new level of service for customers
MARYSVILLE, Ohio, March 20, 2024 (GLOBE NEWSWIRE) -- The Hawthorne Gardening Company, a wholly-owned subsidiary of The Scotts Miracle-Gro Company, and BFG Supply, a leading national horticultural and agricultural product distributor, today announced the formation of a strategic partnership under which BFG will distribute Hawthorne’s proprietary Signature brand cultivation supplies and solutions.
The partnership is a key element of both companies’ broader strategies to capitalize on growth opportunities within the hydroponic products industry and deliver value-accretive solutions to growers.
Hawthorne strategy
Hawthorne is discontinuing the distribution of products from other companies and shifting its focus solely to marketing, innovating and supporting its vast portfolio of Signature brands, including Gavita, General Hydroponics, Botanicare, Cyco, Mother Earth, HydroLogic, Gro Pro and more. These changes enable Hawthorne to realign and optimize its operations. In parallel, BFG will become a key partner for distributing Signature products to many Hawthorne customers. BFG has a national distribution network and a track record of exceptional customer support.
“The moves we are making not only serve as a catalyst for Hawthorne’s growth, but also bring both short- and long-term benefits to the retailers who sell our products and the growers who use them,” said Tom Crabtree, COO of Hawthorne. “By sharpening our focus, we will deploy more resources into initiatives and programs that further drive our industry-leading brands as well as enhance customer service and experiences. BFG shares in our commitment and will be a key partner to help us execute our strategy.”
BFG strategy
Since 2016, BFG has expanded its market distribution strategy in the hydroponic and professional growers space in response to customers seeking one distribution partner with a comprehensive product assortment to create efficiencies in running their business. Through this new strategic distribution partnership, BFG will be the leading distributor for all Hawthorne Signature brands and third-party products to hydroponic retail businesses through its national distribution footprint beginning in Q2 of this calendar year.
"As BFG expands our best-in-class national distribution services to help more customers gain better access to products in the hydroponic and professional grower markets, we are excited to partner with Hawthorne as the trusted brand and distribution supplier for their industry-leading product lines,” said Mark Goshgarian, chief revenue officer, BFG. “We are committed to delivering world-class customer distribution services to our customers seamlessly and efficiently, and we believe this partnership is a testament to that customer promise.”
About Hawthorne Gardening Company
Hawthorne Gardening Company is the leading provider of nutrients, lighting and other products used by a wide range of growers, from hobbyists to professional cultivators and controlled-environment growers. The company is dedicated to creating high-quality products under its Signature brand portfolio and driving innovation founded in social and environmental responsibility. For more information, visit www.hawthornegc.com.
About BFG Supply
BFG is a leading national distribution partner and supplier of products including more than 1,000 trusted vendor partners across all horticultural and agricultural segments. Our mission is to provide simple and seamless access to world-class products and services to our valued customers when they need them.
<<<
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Xena, When LWLG signs another deal (or two), I might get interested :o)
Since none of us can sufficiently analyze the science or competitive landscape, it will require an external confirmation --> another deal or two, actual revenues, etc.
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Bigworld, Great to hear the knee is progressing on schedule, so hopefully the microbe analysis on Monday is favorable :o)
With the markets, I figure the 'powers that be' have been trying to keep the financial markets in relative 'kumbaya' mode since the start of the M. East war in Oct. That's when the Fed did it's dovish pivot, and so far it's worked and the bull market continues. Another motivation to keep things on an even keel is the approaching election in Nov, since a stable economy and stock market will help derail Trump's appeal. But the geopolitical landmines out there could easily derail those plans, so lots of risk.
Btw, the gold breakout is looking strong. It took 12 years to form that 'cup + handle', but it finally broke out decisively. According to TA / chart 'rules', the longer a chart pattern takes to develop and mature, the more dramatic can be the eventual breakout. Central banks have reportedly been adding to their gold reserves at a fast clip, in part to diversify away from the US dollar.
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>>> What are Jeff Bezos, Mark Zuckerberg up to? US billionaires sell $11 billion in stock
Hindustan Times
By HT News Desk
Mar 12, 2024
https://www.hindustantimes.com/business/us-billionaires-sell-11-billion-in-stock-what-are-jeff-bezos-mark-zuckerberg-up-to-is-a-financial-disaster-looming-101710144481684.html
American billionaires are selling stocks and not in small numbers at all. So what has happened in the past few days? Apollo Global Management's Leon Black enacted his first-ever sale after 34 years shedding $172.8 million in his equity firm. Walmart's Walton family sold $1.5billion in a week. In final two months of 2023, Mark Zuckerberg sold nearly half a billion dollars of Meta Platforms Inc. shares. Jeff Bezos sold another 14 million Amazon shares, worth around $2.4billion bringing the total number of shares he has sold in the firm to about 50 million.
Experts do not see this as a good sign as they said that this could be because of looming US presidential elections this year. Finance firm consultant Alan Johnson told Fortune last month, 'If you're reading the tea leaves and looking at what may happen with our politics in the next year or so, things are pretty good right now - the markets are up. With our politics and everything else going on geopolitically, maybe it won't be as good a year from now or two years from now."
This coms as S&P 500 has risen more than 27 per cent in the past year adding billions to the portfolios of billionaires. So the stockholders could be taking advantage of current tax breaks which were brought during the Donald Trump administration, the expert said.
But some financial market players believe that this stock dump reflects something larger behind the scenes. American Hartford Gold, a company that shills gold and other metals to investors, said that large liquidations may be a sign of an impending economic dip as Senior Director Mechi Block said that these CEOs were “getting out before the tech bubble bursts”.
"Billionaire CEOs like [Jeff] Bezos, [Mark] Zuckerberg, Jamie Dimon, and the Walton family are selling off massive amounts of their own stocks, and analysts think the CEOS may be bracing for an economic downturn," he said, adding, “An overheated stock market continues to climb to new heights as investors feed that frenzy out of fear of missing out, economic insiders are unloading billions of dollars worth of stocks.”
“Meta stock has soared 186 percent, JPMorgan is up nearly 30 percent, and Amazon has actually surged close to 90 percent. All three companies are trading close to record highs,” he explained, adding, “Typically if CEOs are buying shares, it shows a confidence in the future growth potential of that company. It is also possible these billionaire's view from above could be giving them a different perspective of the economy, and where it's headed.”
<<<
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>>> What are Jeff Bezos, Mark Zuckerberg up to? US billionaires sell $11 billion in stock
Hindustan Times
By HT News Desk
Mar 12, 2024
https://www.hindustantimes.com/business/us-billionaires-sell-11-billion-in-stock-what-are-jeff-bezos-mark-zuckerberg-up-to-is-a-financial-disaster-looming-101710144481684.html
American billionaires are selling stocks and not in small numbers at all. So what has happened in the past few days? Apollo Global Management's Leon Black enacted his first-ever sale after 34 years shedding $172.8 million in his equity firm. Walmart's Walton family sold $1.5billion in a week. In final two months of 2023, Mark Zuckerberg sold nearly half a billion dollars of Meta Platforms Inc. shares. Jeff Bezos sold another 14 million Amazon shares, worth around $2.4billion bringing the total number of shares he has sold in the firm to about 50 million.
Experts do not see this as a good sign as they said that this could be because of looming US presidential elections this year. Finance firm consultant Alan Johnson told Fortune last month, 'If you're reading the tea leaves and looking at what may happen with our politics in the next year or so, things are pretty good right now - the markets are up. With our politics and everything else going on geopolitically, maybe it won't be as good a year from now or two years from now."
This coms as S&P 500 has risen more than 27 per cent in the past year adding billions to the portfolios of billionaires. So the stockholders could be taking advantage of current tax breaks which were brought during the Donald Trump administration, the expert said.
But some financial market players believe that this stock dump reflects something larger behind the scenes. American Hartford Gold, a company that shills gold and other metals to investors, said that large liquidations may be a sign of an impending economic dip as Senior Director Mechi Block said that these CEOs were “getting out before the tech bubble bursts”.
"Billionaire CEOs like [Jeff] Bezos, [Mark] Zuckerberg, Jamie Dimon, and the Walton family are selling off massive amounts of their own stocks, and analysts think the CEOS may be bracing for an economic downturn," he said, adding, “An overheated stock market continues to climb to new heights as investors feed that frenzy out of fear of missing out, economic insiders are unloading billions of dollars worth of stocks.”
“Meta stock has soared 186 percent, JPMorgan is up nearly 30 percent, and Amazon has actually surged close to 90 percent. All three companies are trading close to record highs,” he explained, adding, “Typically if CEOs are buying shares, it shows a confidence in the future growth potential of that company. It is also possible these billionaire's view from above could be giving them a different perspective of the economy, and where it's headed.”
<<<
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>>> Gold: The Everything Hedge
By Jim Rickards
https://dailyreckoning.com/goldilocks-is-gonna-get-it/
Gold is trading at $2,211 per ounce this afternoon. Since its interim low of $1,832 per ounce on Oct. 5, 2023, gold has posted a 21% gain. That’s in less than six months. Almost half of that gain occurred in the one-month period from Feb. 11 to March 11.
That overall gain is especially impressive considering gold had been stuck in a fairly narrow range of $1,650–2,050 for the past two years. That’s a range of about 10% above and below the midpoint of $1,850. Starting from the high end of that range, gold traversed the entire range to the upside and beyond in just one month.
Now, any reference to “gold prices” is an interesting one. If you treat gold as a commodity, then the price per ounce measured in dollars is one way to think about price.
On the other hand, if you think of gold as money (as I do) then the dollar price is not really a price — it’s a cross-rate similar to euro/dollar (about $1.08 today) or dollar/yen (about 152 today). When analysts say the “price” of gold is $2,211 per ounce, I think of that data as showing the gold/dollar cross-rate = $2,211.
That’s useful because there are two sides to a cross-rate. While most analysts say that gold has rallied from $2,000 to $2,211 per ounce, it is just as valid and perhaps more useful to say that the dollar has crashed from 1/2,000 per ounce to 1/2,211 per ounce.
In this analysis, gold is constant (by weight) and the dollar gets stronger or weaker relative to gold. All of the recent market action points to a weaker dollar.
This mode of analysis also solves another market riddle. Given huge U.S. budget deficits, unprecedented levels of U.S. national debt, slow growth, rising unemployment and persistent inflation, how is it possible that the dollar has been so “strong” lately?
The answer is that it’s only been strong relative to the euro, yen, sterling and some other reserve currencies and as measured by certain dollar indexes (DXY, Bloomberg, etc.) composed of baskets of currencies (but not gold).
But that’s often because those other currencies are issued by countries with debt and growth problems even worse than the U.S.’ Those currencies dropping against the dollar have the look and feel of a good old-fashioned currency war.
It’s only when you use gold as your metric that the real weakness in the dollar becomes apparent, as it should. In effect, certain currencies are weakening against each other but all currencies are weakening against gold.
Returning to the “higher gold price” frame, there are a number of reasons for this trend. The first factor is simple supply and demand. Mining output and recycled gold have been about flat for the past eight years running between 1,100 metric tonnes and 1,250 metric tonnes per year.
At the same time, central bank demand for gold has surged from less than 100 metric tonnes in 2010 to 1,100 metric tonnes in 2022, a 1,000% increase in 12 years. Central bank gold demand remained strong in 2023 with 800 metric tonnes acquired through Sept. 30, 2023. That puts central bank gold demand on track for a new record in 2023. There’s no sign of that demand slowing in 2024.
Constant output with surging demand by central banks does not by itself explain the recent surge in gold prices, but it is a contributor. Importantly, continued strong demand by central banks puts a floor under gold prices. This sets up what we describe as an asymmetric trade where downside is limited but upside is open-ended.
The second factor driving gold prices higher is the need for hedging. This is not the same as inflation hedging. It covers a larger list of risks including geopolitical risk, risks of escalation in the Ukraine and Gaza wars, Houthi efforts to close the Red Sea and Suez Canal, increasing risks of war with China and the intrinsic risk of a senile president of the United States.
As the list of risks grows longer and potentially more dangerous, the need for a hedging asset such as gold that does not rely on any nation-state for its value increases. I call gold the everything hedge.
Finally, gold prices are being driven higher by U.S. threats to steal $300 billion in U.S. Treasury securities from the Russian Federation. Those assets were legally purchased by the Central Bank of Russia as part of their reserve position.
The actual securities are held in custody in digital form at European banks, U.S. banks and the Brussels-based Euroclear clearinghouse. Only about $20 billion of those Treasury securities are held by U.S. banks; the majority are held by Euroclear. Those assets were frozen by the United States at the outbreak of the war in Ukraine.
Freezing assets means the Russians cannot collect interest or sell or transfer the assets or pledge them as collateral. Asset freezes are used frequently by the U.S. including in the cases of Iran, Syria, Cuba, North Korea, Venezuela and other nations. Often the assets are frozen for years but ultimately released to the owner as happened in the case of Iran after 2012.
Now the U.S. wants to go further and actually seize the assets, which may be viewed as outright theft under international law. The U.S. proposes to use the $300 billion to finance the war in Ukraine. European entities have expressed considerable uncertainty about this plan but the U.S. has maintained the pressure and wants to complete the theft before the June and July summits of G7 leaders and NATO members.
If the U.S. steals these assets, Russia will likely confiscate an equivalent amount of industrial and commercial assets located in Russia and owned by German, French, and Italian interests among others.
The bottom line is that if U.S. Treasury securities are not a safe investment, then securities of Germany, Italy, France, the U.K. and Japan are no better. The only reserve asset free of this kind of digital theft is gold. Nations are beginning to diversify into gold in order to insulate themselves from digital confiscation by the collective West.
Finally, there’s an interesting bit of math here, which I’ve explained in the past that shows each $100 per ounce increment in the price of gold is a smaller percentage gain because the denominator is larger.
That makes each $100 milestone ($2,400, $2,500, $2,600) easier to reach than the one before. People don’t really notice this; they just focus on the dollar amount of the gains. But this explains how price rallies gather crazy momentum.
All of these trends — flat output, rising central bank demand, hedging, protection against digital confiscation and simple momentum — will continue. Based on those trends, one would expect the gold price rally to continue as well.
The trend is gold’s friend.
<<<
---
>>> Gold: The Everything Hedge
By Jim Rickards
https://dailyreckoning.com/goldilocks-is-gonna-get-it/
Gold is trading at $2,211 per ounce this afternoon. Since its interim low of $1,832 per ounce on Oct. 5, 2023, gold has posted a 21% gain. That’s in less than six months. Almost half of that gain occurred in the one-month period from Feb. 11 to March 11.
That overall gain is especially impressive considering gold had been stuck in a fairly narrow range of $1,650–2,050 for the past two years. That’s a range of about 10% above and below the midpoint of $1,850. Starting from the high end of that range, gold traversed the entire range to the upside and beyond in just one month.
Now, any reference to “gold prices” is an interesting one. If you treat gold as a commodity, then the price per ounce measured in dollars is one way to think about price.
On the other hand, if you think of gold as money (as I do) then the dollar price is not really a price — it’s a cross-rate similar to euro/dollar (about $1.08 today) or dollar/yen (about 152 today). When analysts say the “price” of gold is $2,211 per ounce, I think of that data as showing the gold/dollar cross-rate = $2,211.
That’s useful because there are two sides to a cross-rate. While most analysts say that gold has rallied from $2,000 to $2,211 per ounce, it is just as valid and perhaps more useful to say that the dollar has crashed from 1/2,000 per ounce to 1/2,211 per ounce.
In this analysis, gold is constant (by weight) and the dollar gets stronger or weaker relative to gold. All of the recent market action points to a weaker dollar.
This mode of analysis also solves another market riddle. Given huge U.S. budget deficits, unprecedented levels of U.S. national debt, slow growth, rising unemployment and persistent inflation, how is it possible that the dollar has been so “strong” lately?
The answer is that it’s only been strong relative to the euro, yen, sterling and some other reserve currencies and as measured by certain dollar indexes (DXY, Bloomberg, etc.) composed of baskets of currencies (but not gold).
But that’s often because those other currencies are issued by countries with debt and growth problems even worse than the U.S.’ Those currencies dropping against the dollar have the look and feel of a good old-fashioned currency war.
It’s only when you use gold as your metric that the real weakness in the dollar becomes apparent, as it should. In effect, certain currencies are weakening against each other but all currencies are weakening against gold.
Returning to the “higher gold price” frame, there are a number of reasons for this trend. The first factor is simple supply and demand. Mining output and recycled gold have been about flat for the past eight years running between 1,100 metric tonnes and 1,250 metric tonnes per year.
At the same time, central bank demand for gold has surged from less than 100 metric tonnes in 2010 to 1,100 metric tonnes in 2022, a 1,000% increase in 12 years. Central bank gold demand remained strong in 2023 with 800 metric tonnes acquired through Sept. 30, 2023. That puts central bank gold demand on track for a new record in 2023. There’s no sign of that demand slowing in 2024.
Constant output with surging demand by central banks does not by itself explain the recent surge in gold prices, but it is a contributor. Importantly, continued strong demand by central banks puts a floor under gold prices. This sets up what we describe as an asymmetric trade where downside is limited but upside is open-ended.
The second factor driving gold prices higher is the need for hedging. This is not the same as inflation hedging. It covers a larger list of risks including geopolitical risk, risks of escalation in the Ukraine and Gaza wars, Houthi efforts to close the Red Sea and Suez Canal, increasing risks of war with China and the intrinsic risk of a senile president of the United States.
As the list of risks grows longer and potentially more dangerous, the need for a hedging asset such as gold that does not rely on any nation-state for its value increases. I call gold the everything hedge.
Finally, gold prices are being driven higher by U.S. threats to steal $300 billion in U.S. Treasury securities from the Russian Federation. Those assets were legally purchased by the Central Bank of Russia as part of their reserve position.
The actual securities are held in custody in digital form at European banks, U.S. banks and the Brussels-based Euroclear clearinghouse. Only about $20 billion of those Treasury securities are held by U.S. banks; the majority are held by Euroclear. Those assets were frozen by the United States at the outbreak of the war in Ukraine.
Freezing assets means the Russians cannot collect interest or sell or transfer the assets or pledge them as collateral. Asset freezes are used frequently by the U.S. including in the cases of Iran, Syria, Cuba, North Korea, Venezuela and other nations. Often the assets are frozen for years but ultimately released to the owner as happened in the case of Iran after 2012.
Now the U.S. wants to go further and actually seize the assets, which may be viewed as outright theft under international law. The U.S. proposes to use the $300 billion to finance the war in Ukraine. European entities have expressed considerable uncertainty about this plan but the U.S. has maintained the pressure and wants to complete the theft before the June and July summits of G7 leaders and NATO members.
If the U.S. steals these assets, Russia will likely confiscate an equivalent amount of industrial and commercial assets located in Russia and owned by German, French, and Italian interests among others.
The bottom line is that if U.S. Treasury securities are not a safe investment, then securities of Germany, Italy, France, the U.K. and Japan are no better. The only reserve asset free of this kind of digital theft is gold. Nations are beginning to diversify into gold in order to insulate themselves from digital confiscation by the collective West.
Finally, there’s an interesting bit of math here, which I’ve explained in the past that shows each $100 per ounce increment in the price of gold is a smaller percentage gain because the denominator is larger.
That makes each $100 milestone ($2,400, $2,500, $2,600) easier to reach than the one before. People don’t really notice this; they just focus on the dollar amount of the gains. But this explains how price rallies gather crazy momentum.
All of these trends — flat output, rising central bank demand, hedging, protection against digital confiscation and simple momentum — will continue. Based on those trends, one would expect the gold price rally to continue as well.
The trend is gold’s friend.
<<<
---
>>> Tilray Wellness Introduces New Superfood Products Powered by Hemp at Expo West
GlobeNewswire
Tilray Brands, Inc.
March 13, 2024
https://finance.yahoo.com/news/tilray-wellness-introduces-superfood-products-171000101.html
Manitoba Harvest, Pioneers in Hemp and Natural Foods, Will Present New Superfood Breakfast Staples at Expo West March 13-15, 2024
NEW YORK and WINNIPEG, Manitoba, March 13, 2024 (GLOBE NEWSWIRE) -- Manitoba Harvest Hemp Foods, a leader in hemp-based foods and a wholly-owned subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY; TSX: TLRY), will showcase groundbreaking innovation at this year’s Natural Products Expo West, to be held in Anaheim, CA on March 13-15, 2024. Revolutionizing healthy breakfast, Manitoba Harvest will inspire attendees to “fuel your day with hemp” while sampling their new Superseed Oatmeal and debuting their new Bioactive Fiber for gut-health and regularity.
“The breakfast category is filled with unsustainable sources of energy, such as caffeine and sugar,” states Sam Garfinkel, SVP of Commercial Operations & Strategy at Manitoba Harvest. “What consumers want most is healthy, long-lasting sources of energy to fuel active lifestyles. Our latest innovation empowers holistic health with unprecedented nutritional benefits in familiar and delicious formats that the whole family will love.”
As the global market leader in hemp foods, with retail acceleration spanning from natural channel leader Whole Foods Markets to conventional grocery leader Walmart, Manitoba Harvest is an important staple of the annual Natural Products Expo West and represents the future of sustainable, nutrient-powered innovation. Manitoba Harvest is a Certified B Corp, certified CarbonZero and has pioneered Regenerative Agriculture practices in Hemp.
Experience New Innovation from Manitoba Harvest Hemp Foods:
Organic Bioactive Fiber: A complete fiber solution with 6g of fiber per serving. Fiber supports healthy digestion and bowel regularity while helping to feel full for longer. In collaboration with Bioactives company Brightseed™, this proprietary powder is powered by Brightseed™ Bio Gut Fiber, an organic, prebiotic hemp fiber that actively supports gut health.*
Original Superseed Oatmeal: This hemp hearts, oats and flax super seed blend is good source of 10 essential vitamins and minerals. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Apple & Cinnamon Superseed Oatmeal: Packed with apple pieces and warm cinnamon, this super seed blend puts a wholesome twist on a familiar favorite. Boost your breakfast with 10g of Protein, 4g of Fiber and 8g of Omegas 3 & 6 per serving.
Maple & Brown Sugar Superseed Oatmeal: This nostalgic childhood standby with craveable maple flakes gives you the fuel you need to look forward to mornings. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Find Manitoba Harvest and sample the new Superseed Oatmeal at booth #N805 in the North Hall, Level 1. Full event details are available here. To learn more about Manitoba Harvest, visit manitobaharvest.com.
*These statements have not been evaluated by the food and drug administration. This product is not intended to diagnose, treat, cure or prevent any disease.
About Manitoba Harvest
Manitoba Harvest is a pioneer and leader in branded hemp-based foods, and is recognized as a Certified B Corporation and the first Canadian food company to attain a Carbonzero Certification.
Taking the seed-to-shelf approach since 1998, Manitoba Harvest is committed to quality, sustainability, and consumer wellness. With an extensive product portfolio of Hemp Hearts (shelled hemp seed), Hemp Protein, Hemp Protein Blends, Hemp Granola, and Hemp Oil, Manitoba Harvest products are sold globally and in approximately 17,000 retail stores across North America.
To learn more about Manitoba Harvest and shop, visit www.manitobaharvest.com and follow @manitobaharvest across all social platforms.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering a worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Tilray’s mission is to be the most responsible, trusted, and market-leading cannabis and consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we open a world of well-being, visit www.Tilray.com and follow @tilray on all social platforms.
About Brightseed
Brightseed is a pioneer in biosciences and artificial intelligence that illuminates nature to restore human health. Brightseed’s Forager® AI platform accelerates bioactive discovery, biological validation and ingredient formulation from years to months, rapidly revealing new connections between nature and humanity. Brightseed produces clinically proven bioactives for dietary supplements, food & beverage CPG, specialty nutrition and medical foods to power proactive health worldwide.
<<<
---
>>> Tilray Wellness Introduces New Superfood Products Powered by Hemp at Expo West
GlobeNewswire
Tilray Brands, Inc.
March 13, 2024
https://finance.yahoo.com/news/tilray-wellness-introduces-superfood-products-171000101.html
Manitoba Harvest, Pioneers in Hemp and Natural Foods, Will Present New Superfood Breakfast Staples at Expo West March 13-15, 2024
NEW YORK and WINNIPEG, Manitoba, March 13, 2024 (GLOBE NEWSWIRE) -- Manitoba Harvest Hemp Foods, a leader in hemp-based foods and a wholly-owned subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY; TSX: TLRY), will showcase groundbreaking innovation at this year’s Natural Products Expo West, to be held in Anaheim, CA on March 13-15, 2024. Revolutionizing healthy breakfast, Manitoba Harvest will inspire attendees to “fuel your day with hemp” while sampling their new Superseed Oatmeal and debuting their new Bioactive Fiber for gut-health and regularity.
“The breakfast category is filled with unsustainable sources of energy, such as caffeine and sugar,” states Sam Garfinkel, SVP of Commercial Operations & Strategy at Manitoba Harvest. “What consumers want most is healthy, long-lasting sources of energy to fuel active lifestyles. Our latest innovation empowers holistic health with unprecedented nutritional benefits in familiar and delicious formats that the whole family will love.”
As the global market leader in hemp foods, with retail acceleration spanning from natural channel leader Whole Foods Markets to conventional grocery leader Walmart, Manitoba Harvest is an important staple of the annual Natural Products Expo West and represents the future of sustainable, nutrient-powered innovation. Manitoba Harvest is a Certified B Corp, certified CarbonZero and has pioneered Regenerative Agriculture practices in Hemp.
Experience New Innovation from Manitoba Harvest Hemp Foods:
Organic Bioactive Fiber: A complete fiber solution with 6g of fiber per serving. Fiber supports healthy digestion and bowel regularity while helping to feel full for longer. In collaboration with Bioactives company Brightseed™, this proprietary powder is powered by Brightseed™ Bio Gut Fiber, an organic, prebiotic hemp fiber that actively supports gut health.*
Original Superseed Oatmeal: This hemp hearts, oats and flax super seed blend is good source of 10 essential vitamins and minerals. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Apple & Cinnamon Superseed Oatmeal: Packed with apple pieces and warm cinnamon, this super seed blend puts a wholesome twist on a familiar favorite. Boost your breakfast with 10g of Protein, 4g of Fiber and 8g of Omegas 3 & 6 per serving.
Maple & Brown Sugar Superseed Oatmeal: This nostalgic childhood standby with craveable maple flakes gives you the fuel you need to look forward to mornings. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Find Manitoba Harvest and sample the new Superseed Oatmeal at booth #N805 in the North Hall, Level 1. Full event details are available here. To learn more about Manitoba Harvest, visit manitobaharvest.com.
*These statements have not been evaluated by the food and drug administration. This product is not intended to diagnose, treat, cure or prevent any disease.
About Manitoba Harvest
Manitoba Harvest is a pioneer and leader in branded hemp-based foods, and is recognized as a Certified B Corporation and the first Canadian food company to attain a Carbonzero Certification.
Taking the seed-to-shelf approach since 1998, Manitoba Harvest is committed to quality, sustainability, and consumer wellness. With an extensive product portfolio of Hemp Hearts (shelled hemp seed), Hemp Protein, Hemp Protein Blends, Hemp Granola, and Hemp Oil, Manitoba Harvest products are sold globally and in approximately 17,000 retail stores across North America.
To learn more about Manitoba Harvest and shop, visit www.manitobaharvest.com and follow @manitobaharvest across all social platforms.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering a worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Tilray’s mission is to be the most responsible, trusted, and market-leading cannabis and consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we open a world of well-being, visit www.Tilray.com and follow @tilray on all social platforms.
About Brightseed
Brightseed is a pioneer in biosciences and artificial intelligence that illuminates nature to restore human health. Brightseed’s Forager® AI platform accelerates bioactive discovery, biological validation and ingredient formulation from years to months, rapidly revealing new connections between nature and humanity. Brightseed produces clinically proven bioactives for dietary supplements, food & beverage CPG, specialty nutrition and medical foods to power proactive health worldwide.
<<<
---
>>> Tilray Wellness Introduces New Superfood Products Powered by Hemp at Expo West
GlobeNewswire
Tilray Brands, Inc.
March 13, 2024
https://finance.yahoo.com/news/tilray-wellness-introduces-superfood-products-171000101.html
Manitoba Harvest, Pioneers in Hemp and Natural Foods, Will Present New Superfood Breakfast Staples at Expo West March 13-15, 2024
NEW YORK and WINNIPEG, Manitoba, March 13, 2024 (GLOBE NEWSWIRE) -- Manitoba Harvest Hemp Foods, a leader in hemp-based foods and a wholly-owned subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY; TSX: TLRY), will showcase groundbreaking innovation at this year’s Natural Products Expo West, to be held in Anaheim, CA on March 13-15, 2024. Revolutionizing healthy breakfast, Manitoba Harvest will inspire attendees to “fuel your day with hemp” while sampling their new Superseed Oatmeal and debuting their new Bioactive Fiber for gut-health and regularity.
“The breakfast category is filled with unsustainable sources of energy, such as caffeine and sugar,” states Sam Garfinkel, SVP of Commercial Operations & Strategy at Manitoba Harvest. “What consumers want most is healthy, long-lasting sources of energy to fuel active lifestyles. Our latest innovation empowers holistic health with unprecedented nutritional benefits in familiar and delicious formats that the whole family will love.”
As the global market leader in hemp foods, with retail acceleration spanning from natural channel leader Whole Foods Markets to conventional grocery leader Walmart, Manitoba Harvest is an important staple of the annual Natural Products Expo West and represents the future of sustainable, nutrient-powered innovation. Manitoba Harvest is a Certified B Corp, certified CarbonZero and has pioneered Regenerative Agriculture practices in Hemp.
Experience New Innovation from Manitoba Harvest Hemp Foods:
Organic Bioactive Fiber: A complete fiber solution with 6g of fiber per serving. Fiber supports healthy digestion and bowel regularity while helping to feel full for longer. In collaboration with Bioactives company Brightseed™, this proprietary powder is powered by Brightseed™ Bio Gut Fiber, an organic, prebiotic hemp fiber that actively supports gut health.*
Original Superseed Oatmeal: This hemp hearts, oats and flax super seed blend is good source of 10 essential vitamins and minerals. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Apple & Cinnamon Superseed Oatmeal: Packed with apple pieces and warm cinnamon, this super seed blend puts a wholesome twist on a familiar favorite. Boost your breakfast with 10g of Protein, 4g of Fiber and 8g of Omegas 3 & 6 per serving.
Maple & Brown Sugar Superseed Oatmeal: This nostalgic childhood standby with craveable maple flakes gives you the fuel you need to look forward to mornings. Boost your breakfast with 10g of Protein, 4g of Fiber and 9g of Omegas 3 & 6 per serving.
Find Manitoba Harvest and sample the new Superseed Oatmeal at booth #N805 in the North Hall, Level 1. Full event details are available here. To learn more about Manitoba Harvest, visit manitobaharvest.com.
*These statements have not been evaluated by the food and drug administration. This product is not intended to diagnose, treat, cure or prevent any disease.
About Manitoba Harvest
Manitoba Harvest is a pioneer and leader in branded hemp-based foods, and is recognized as a Certified B Corporation and the first Canadian food company to attain a Carbonzero Certification.
Taking the seed-to-shelf approach since 1998, Manitoba Harvest is committed to quality, sustainability, and consumer wellness. With an extensive product portfolio of Hemp Hearts (shelled hemp seed), Hemp Protein, Hemp Protein Blends, Hemp Granola, and Hemp Oil, Manitoba Harvest products are sold globally and in approximately 17,000 retail stores across North America.
To learn more about Manitoba Harvest and shop, visit www.manitobaharvest.com and follow @manitobaharvest across all social platforms.
About Tilray Brands
Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering a worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Tilray’s mission is to be the most responsible, trusted, and market-leading cannabis and consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we open a world of well-being, visit www.Tilray.com and follow @tilray on all social platforms.
About Brightseed
Brightseed is a pioneer in biosciences and artificial intelligence that illuminates nature to restore human health. Brightseed’s Forager® AI platform accelerates bioactive discovery, biological validation and ingredient formulation from years to months, rapidly revealing new connections between nature and humanity. Brightseed produces clinically proven bioactives for dietary supplements, food & beverage CPG, specialty nutrition and medical foods to power proactive health worldwide.
<<<
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>>> BlackRock Launches Copper Miners ETF in Amsterdam
ETF.com
The issuer aims to benefit from the metal’s role in the energy transition.
by Theo Andrew, Jamie Gordon
|
Jun 26, 2023
https://www.etf.com/sections/news/blackrock-launches-copper-miners-etf-amsterdam
LONDON - BlackRock has extended its thematics range with the launch of a copper miners ETF, ETF Stream can reveal.
The iShares Copper Miners UCITS ETF (COPM) listed on the Euronext Amsterdam on 21 June with a total expense ratio (TER) of 0.55%.
It tracks the Stoxx Global Copper Miners index, providing exposure to companies globally with significant exposure to the copper mining industry via revenue percentage or market share.
Companies in the top 50% of market share of the copper ore mining industry will be selected.
BlackRock said the industry typically offers an attractive dividend yield and high sensitivity to the copper price, making a “liquid and tradable proxy candidate” for direct copper commodity exposure.
It added the industry is set to benefit from the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.
Copper’s role in the transition has fueled huge demand over the past few years, while limited supply and mining challenges have opened up investment opportunities, the asset manager said.
Demand Set to Outstrip Supply
According to JP Morgan, the world will need a 54% larger supply of copper by 2030 on the current net-zero path, with demand set to outstrip supply by six million tons per year by the end of the decade.
Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.
“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy shows a need for increased investment in new copper mine capacity to accommodate continued growth.”
Despite this, the copper price has remained volatile this year reflecting concerns that China’s rebound was not materialising. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.
COPM is the second copper miners ETF in Europe, following the launch of the Global X Copper Miners UCITS ETF (COPX) in November 2021. The ETF has since amassed $58m in assets under management (AUM).
<<<
---
>>> BlackRock Launches Copper Miners ETF in Amsterdam
ETF.com
The issuer aims to benefit from the metal’s role in the energy transition.
by Theo Andrew, Jamie Gordon
|
Jun 26, 2023
https://www.etf.com/sections/news/blackrock-launches-copper-miners-etf-amsterdam
LONDON - BlackRock has extended its thematics range with the launch of a copper miners ETF, ETF Stream can reveal.
The iShares Copper Miners UCITS ETF (COPM) listed on the Euronext Amsterdam on 21 June with a total expense ratio (TER) of 0.55%.
It tracks the Stoxx Global Copper Miners index, providing exposure to companies globally with significant exposure to the copper mining industry via revenue percentage or market share.
Companies in the top 50% of market share of the copper ore mining industry will be selected.
BlackRock said the industry typically offers an attractive dividend yield and high sensitivity to the copper price, making a “liquid and tradable proxy candidate” for direct copper commodity exposure.
It added the industry is set to benefit from the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.
Copper’s role in the transition has fueled huge demand over the past few years, while limited supply and mining challenges have opened up investment opportunities, the asset manager said.
Demand Set to Outstrip Supply
According to JP Morgan, the world will need a 54% larger supply of copper by 2030 on the current net-zero path, with demand set to outstrip supply by six million tons per year by the end of the decade.
Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.
“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy shows a need for increased investment in new copper mine capacity to accommodate continued growth.”
Despite this, the copper price has remained volatile this year reflecting concerns that China’s rebound was not materialising. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.
COPM is the second copper miners ETF in Europe, following the launch of the Global X Copper Miners UCITS ETF (COPX) in November 2021. The ETF has since amassed $58m in assets under management (AUM).
<<<
---
>>> BlackRock Launches Copper Miners ETF in Amsterdam
ETF.com
The issuer aims to benefit from the metal’s role in the energy transition.
by Theo Andrew, Jamie Gordon
|
Jun 26, 2023
https://www.etf.com/sections/news/blackrock-launches-copper-miners-etf-amsterdam
LONDON - BlackRock has extended its thematics range with the launch of a copper miners ETF, ETF Stream can reveal.
The iShares Copper Miners UCITS ETF (COPM) listed on the Euronext Amsterdam on 21 June with a total expense ratio (TER) of 0.55%.
It tracks the Stoxx Global Copper Miners index, providing exposure to companies globally with significant exposure to the copper mining industry via revenue percentage or market share.
Companies in the top 50% of market share of the copper ore mining industry will be selected.
BlackRock said the industry typically offers an attractive dividend yield and high sensitivity to the copper price, making a “liquid and tradable proxy candidate” for direct copper commodity exposure.
It added the industry is set to benefit from the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.
Copper’s role in the transition has fueled huge demand over the past few years, while limited supply and mining challenges have opened up investment opportunities, the asset manager said.
Demand Set to Outstrip Supply
According to JP Morgan, the world will need a 54% larger supply of copper by 2030 on the current net-zero path, with demand set to outstrip supply by six million tons per year by the end of the decade.
Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.
“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy shows a need for increased investment in new copper mine capacity to accommodate continued growth.”
Despite this, the copper price has remained volatile this year reflecting concerns that China’s rebound was not materialising. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.
COPM is the second copper miners ETF in Europe, following the launch of the Global X Copper Miners UCITS ETF (COPX) in November 2021. The ETF has since amassed $58m in assets under management (AUM).
<<<
---
>>> Tilray Brands (TLRY) -- >>> Think seeing a cannabis stock like Tilray Brands (NASDAQ:TLRY) at the top of an undervalued craft beer stocks list is odd? While the company, like most cannabis stocks, is arguably overvalued, with slim-to-no moat, Tilray’s craft beer forays have gone largely unnoticed.
https://finance.yahoo.com/news/3-most-undervalued-craft-beer-202700013.html
Last year, the company bought eight craft beer brands from mega-distributor Anheuser-Busch (NYSE:BUD), including Shock Top and HiBall Energy. Financial news generally took the move one of two ways, neither of which is particularly positive. First, some assumed it was an admission of defeat for Tilray in terms of cannabis markets. Alternately, others saw it as a needless push toward diversification that would ultimately impact their core cannabis focus.
I argue that there’s more to the story. Lacking a nationally legal cannabis infrastructure in the states, many competitors can’t actively build a network in most states that includes marketing, distribution, legal compliance, marketing, and more – everything involved in getting vice products to market. Tilray, in effect, just bought those operational value chain drivers from one of the largest companies experienced in pushing products to customers. As the fifth-largest craft beer distributor after the move, Tilray is expanding its revenue opportunity and effectively subsidizing its penetration into areas otherwise unfriendly to its cannabis concept through craft beer sales.
<<<
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>>> Home Depot bulks up Pro-business with $18.25 billion deal for building products supplier SRS
Reuters
by Deborah Mary Sophia, Savyata Mishra and Abigail Summerville
Mar 28, 2024
https://finance.yahoo.com/news/home-depot-buy-srs-distribution-101427534.html?.tsrc=fin-notif
(Reuters) -Home Depot will buy building materials supplier SRS Distribution in an $18.25 billion deal, in the top U.S. home improvement chain's largest acquisition, as it looks to broaden its professional customer base to better tackle tepid demand.
The company and rival Lowe's Cos have projected a slower recovery this year as U.S. consumers pause big home remodeling and renovation projects due to sticky inflation.
This has put pressure on the Do-It-Yourself (DIY) segment, which makes up about half of Home Depot's business, and the company has sharpened its focus on "Pro-customers" such as professional builders and contractors to drive sales.
Thursday's deal will help Home Depot leverage SRS' warehouse network and delivery fleet to better serve existing customers.
SRS, a portfolio company of private equity firms Leonard Green & Partners and Berkshire Partners, primarily serves Pro-customers including roofers, landscapers and pool contractors. The firm, which raked in $10 billion in revenue in 2023, will operate as an independent unit within Home Depot.
Leonard Green had bought a majority stake in SRS in a $3.55 billion deal in 2018, a person familiar with the matter told Reuters on Thursday.
Last December, Leonard Green allowed some of its fund investors to cash out of SRS at a valuation of about $16 billion, including debt, the source said, adding Home Depot agreed to the deal following a sale process for the company.
"This is a great deal at a great time," said Thomas Hayes, chairman at Great Hill Capital.
"You need (to) only look to the housing shortage - and young demographics of our millennials - to understand that as rates moderate construction will boom," he said.
Shares of Home Depot, which has a market value of $382.42 billion according to LSEG data, slipped 1%. Home Depot will assume SRS' debt and will fund the deal with cash on hand and debt.
'DRIVING CUSTOMER EXPERIENCE'
The deal is all about "driving the customer experience" along with sales and profitability, Home Depot CFO Richard McPhail said on a call with analysts.
The company has often faced criticism from customers, particularly larger contractors, over order, delivery and logistics hiccups that could hinder timely completion of projects.
"The problem with (ordering on Home Depot's website) is when it comes to delivery, it's very sporadic ... the problem was always logistics" said Eddie Prchal, CEO of Gunner, a roofing solutions firm.
Through the deal, expected to close by the end of fiscal 2024, Home Depot will add SRS' network of more than 2,500 professional sales force in 760 plus locations to its footprint of over 2,000 U.S. stores and distribution centers.
It would also allow Home Depot to take advantage of SRS' more than 4,000 truck fleet and jobsite delivery capabilities.
"SRS is very good at delivering those things. (They have) good customer service, deliveries on time... So Home Depot will be able to start servicing and have a whole new focus on contractors," Prchal said.
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>>> Home Depot bulks up Pro-business with $18.25 billion deal for building products supplier SRS
Reuters
by Deborah Mary Sophia, Savyata Mishra and Abigail Summerville
Mar 28, 2024
https://finance.yahoo.com/news/home-depot-buy-srs-distribution-101427534.html?.tsrc=fin-notif
(Reuters) -Home Depot will buy building materials supplier SRS Distribution in an $18.25 billion deal, in the top U.S. home improvement chain's largest acquisition, as it looks to broaden its professional customer base to better tackle tepid demand.
The company and rival Lowe's Cos have projected a slower recovery this year as U.S. consumers pause big home remodeling and renovation projects due to sticky inflation.
This has put pressure on the Do-It-Yourself (DIY) segment, which makes up about half of Home Depot's business, and the company has sharpened its focus on "Pro-customers" such as professional builders and contractors to drive sales.
Thursday's deal will help Home Depot leverage SRS' warehouse network and delivery fleet to better serve existing customers.
SRS, a portfolio company of private equity firms Leonard Green & Partners and Berkshire Partners, primarily serves Pro-customers including roofers, landscapers and pool contractors. The firm, which raked in $10 billion in revenue in 2023, will operate as an independent unit within Home Depot.
Leonard Green had bought a majority stake in SRS in a $3.55 billion deal in 2018, a person familiar with the matter told Reuters on Thursday.
Last December, Leonard Green allowed some of its fund investors to cash out of SRS at a valuation of about $16 billion, including debt, the source said, adding Home Depot agreed to the deal following a sale process for the company.
"This is a great deal at a great time," said Thomas Hayes, chairman at Great Hill Capital.
"You need (to) only look to the housing shortage - and young demographics of our millennials - to understand that as rates moderate construction will boom," he said.
Shares of Home Depot, which has a market value of $382.42 billion according to LSEG data, slipped 1%. Home Depot will assume SRS' debt and will fund the deal with cash on hand and debt.
'DRIVING CUSTOMER EXPERIENCE'
The deal is all about "driving the customer experience" along with sales and profitability, Home Depot CFO Richard McPhail said on a call with analysts.
The company has often faced criticism from customers, particularly larger contractors, over order, delivery and logistics hiccups that could hinder timely completion of projects.
"The problem with (ordering on Home Depot's website) is when it comes to delivery, it's very sporadic ... the problem was always logistics" said Eddie Prchal, CEO of Gunner, a roofing solutions firm.
Through the deal, expected to close by the end of fiscal 2024, Home Depot will add SRS' network of more than 2,500 professional sales force in 760 plus locations to its footprint of over 2,000 U.S. stores and distribution centers.
It would also allow Home Depot to take advantage of SRS' more than 4,000 truck fleet and jobsite delivery capabilities.
"SRS is very good at delivering those things. (They have) good customer service, deliveries on time... So Home Depot will be able to start servicing and have a whole new focus on contractors," Prchal said.
<<<
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>>> Apple’s first quarter has felt more like an entire (bad) year
Yahoo Finance
Daniel Howley
Mar 27, 2024
https://finance.yahoo.com/news/apples-first-quarter-has-felt-more-like-an-entire-bad-year-201715880.html?.tsrc=fin-notif
Apple (AAPL) is in the midst of what you could generously call a “difficult” period. The company is contending with a high-profile antitrust battle with the Department of Justice, falling iPhone sales in China, and a regulatory investigation in the European Union. And those are just the headlines from the past week.
The company is also still facing a shortfall when it comes to generative AI capabilities. And while it’s widely expected to debut some kind of generative AI offering during its WWDC developer event on June 10, it’ll need to have quite an impressive showing if it’s going to catch up to its Big Tech rivals including Microsoft (MSFT) and Google (GOOG, GOOGL).
All of that is hurting Apple’s stock price. Shares of the iPhone maker have fallen more than 7% since the start of the year and are up just 6.25% over the last 12 months. Shares of Microsoft, meanwhile, are up 14% year to date and 49% over the last 12 months. Google? Shares of the search giant are up 9% year to date and 43% in the last 12 months.
Suffice it to say, Apple’s 2024 is not going well.
Apple’s China problem
Apple’s latest headache came Tuesday, when Bloomberg, citing Chinese government data, reported that iPhone shipments fell 33% year over year in the country in February.
China is Apple’s third-largest market behind North America and Europe. In 2023, the region accounted for $72.6 billion of Apple’s $383.3 billion in total revenue. That’s roughly 19% of the company’s sales.
And this isn’t exactly out of the blue. Earlier this month, Counterpoint Research reported that iPhone sales fell 24% year over year through the first six weeks of 2024 in the country. Overall smartphone unit sales in China declined 7% during the same period.
Apple has been aggressively expanding in China for years, but a resurgent Huawei and difficult economic conditions in the country are squeezing device sales. The company isn’t just sitting idly by, though. Last week, CEO Tim Cook flew to China for the opening of the company’s latest flagship store in Shanghai. He also attended the China Development Forum in Beijing and was expected to meet with Chinese President Xi Jinping.
According to the South China Morning Post, Apple-authorized retailers are also trying to goose sales, cutting the price of the company’s latest iPhones in the hopes that it will get consumers to start buying again. However, it might take more than lower prices to make that happen.
A battle with the DOJ
Outside of Apple’s China sales drama, the company is also facing its long-anticipated antitrust fight with the Department of Justice. The lawsuit, which the DOJ filed last Thursday, accuses Apple of illegally maintaining dominance over the premium smartphone market by pushing aside competing apps and devices.
The Justice Department claims that Apple imposes restrictions on app developers, makes it difficult for users to switch to competing platforms, and hinders cloud gaming and so-called super apps that allow users to access multiple smaller apps from one larger platform.
Apple, however, is fighting back, saying in a statement that the suit "threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple."
The DOJ is seeking to force Apple to change its business practices, which could mean giving third-party apps greater access to the company’s platforms and requiring Apple to expand compatibility with third-party device makers.
The lawsuit could also prove to be a dangerous distraction for Apple similar to how Microsoft’s antitrust battle in the 90’s stole executives’ attention away from emerging technologies like smartphones. If Microsoft hadn’t been so invested in its antitrust fight at the time, there’s a good chance it would have seen the smartphone age coming as did Apple and Google, and launched its own line of handsets.
European Commission calling
In addition to slowing iPhone sales in China and the DOJ’s antitrust suit, the European Union’s competition watchdog, the European Commission on Monday, announced that it is looking into whether Apple is in compliance with the bloc’s Digital Markets Act.
In a statement released Monday, the Commission said it is investigating Apple’s new app fee structure in the EU as well as whether it meets user choice obligations related to default apps and the ability to delete preinstalled apps.
The Digital Markets Act requires Apple to open up the iPhone to third-party app stores, enabling developers to get around the 30% and 15% fees the company charges for sales through its own App Store. While Apple said it will allow those third-party stores, the company said it will also charge developers a 50 euro cent Core Technology Fee per install per year on apps that have been installed more than 1 million times in the last 12 months.
In a statement, the EC said it is looking into whether Apple’s new fees defeat the purpose of the obligations of the Digital Markets Act.
While Apple is certainly facing a slew of challenges, it’s far from down and out. It’s still the second-richest company in the world by market capitalization — behind Microsoft — and it’s sure to continue to sell millions of devices and services subscriptions throughout the year ahead.
Still, for the foreseeable future, Apple could be in for a bumpy ride.
<<<
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>>> Apple’s first quarter has felt more like an entire (bad) year
Yahoo Finance
Daniel Howley
Mar 27, 2024
https://finance.yahoo.com/news/apples-first-quarter-has-felt-more-like-an-entire-bad-year-201715880.html?.tsrc=fin-notif
Apple (AAPL) is in the midst of what you could generously call a “difficult” period. The company is contending with a high-profile antitrust battle with the Department of Justice, falling iPhone sales in China, and a regulatory investigation in the European Union. And those are just the headlines from the past week.
The company is also still facing a shortfall when it comes to generative AI capabilities. And while it’s widely expected to debut some kind of generative AI offering during its WWDC developer event on June 10, it’ll need to have quite an impressive showing if it’s going to catch up to its Big Tech rivals including Microsoft (MSFT) and Google (GOOG, GOOGL).
All of that is hurting Apple’s stock price. Shares of the iPhone maker have fallen more than 7% since the start of the year and are up just 6.25% over the last 12 months. Shares of Microsoft, meanwhile, are up 14% year to date and 49% over the last 12 months. Google? Shares of the search giant are up 9% year to date and 43% in the last 12 months.
Suffice it to say, Apple’s 2024 is not going well.
Apple’s China problem
Apple’s latest headache came Tuesday, when Bloomberg, citing Chinese government data, reported that iPhone shipments fell 33% year over year in the country in February.
China is Apple’s third-largest market behind North America and Europe. In 2023, the region accounted for $72.6 billion of Apple’s $383.3 billion in total revenue. That’s roughly 19% of the company’s sales.
And this isn’t exactly out of the blue. Earlier this month, Counterpoint Research reported that iPhone sales fell 24% year over year through the first six weeks of 2024 in the country. Overall smartphone unit sales in China declined 7% during the same period.
Apple has been aggressively expanding in China for years, but a resurgent Huawei and difficult economic conditions in the country are squeezing device sales. The company isn’t just sitting idly by, though. Last week, CEO Tim Cook flew to China for the opening of the company’s latest flagship store in Shanghai. He also attended the China Development Forum in Beijing and was expected to meet with Chinese President Xi Jinping.
According to the South China Morning Post, Apple-authorized retailers are also trying to goose sales, cutting the price of the company’s latest iPhones in the hopes that it will get consumers to start buying again. However, it might take more than lower prices to make that happen.
A battle with the DOJ
Outside of Apple’s China sales drama, the company is also facing its long-anticipated antitrust fight with the Department of Justice. The lawsuit, which the DOJ filed last Thursday, accuses Apple of illegally maintaining dominance over the premium smartphone market by pushing aside competing apps and devices.
The Justice Department claims that Apple imposes restrictions on app developers, makes it difficult for users to switch to competing platforms, and hinders cloud gaming and so-called super apps that allow users to access multiple smaller apps from one larger platform.
Apple, however, is fighting back, saying in a statement that the suit "threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple."
The DOJ is seeking to force Apple to change its business practices, which could mean giving third-party apps greater access to the company’s platforms and requiring Apple to expand compatibility with third-party device makers.
The lawsuit could also prove to be a dangerous distraction for Apple similar to how Microsoft’s antitrust battle in the 90’s stole executives’ attention away from emerging technologies like smartphones. If Microsoft hadn’t been so invested in its antitrust fight at the time, there’s a good chance it would have seen the smartphone age coming as did Apple and Google, and launched its own line of handsets.
European Commission calling
In addition to slowing iPhone sales in China and the DOJ’s antitrust suit, the European Union’s competition watchdog, the European Commission on Monday, announced that it is looking into whether Apple is in compliance with the bloc’s Digital Markets Act.
In a statement released Monday, the Commission said it is investigating Apple’s new app fee structure in the EU as well as whether it meets user choice obligations related to default apps and the ability to delete preinstalled apps.
The Digital Markets Act requires Apple to open up the iPhone to third-party app stores, enabling developers to get around the 30% and 15% fees the company charges for sales through its own App Store. While Apple said it will allow those third-party stores, the company said it will also charge developers a 50 euro cent Core Technology Fee per install per year on apps that have been installed more than 1 million times in the last 12 months.
In a statement, the EC said it is looking into whether Apple’s new fees defeat the purpose of the obligations of the Digital Markets Act.
While Apple is certainly facing a slew of challenges, it’s far from down and out. It’s still the second-richest company in the world by market capitalization — behind Microsoft — and it’s sure to continue to sell millions of devices and services subscriptions throughout the year ahead.
Still, for the foreseeable future, Apple could be in for a bumpy ride.
<<<
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Bar, >> BRK near record high <<
Yes, and that's with APPL down almost 15% from its Dec high. So having so much in AAPL hasn't been a problem for Berkshire so far. While Apple is getting hit with anti-trust problems, so are the other big Techs like GOOG, META, but they remain resilient.
Also, looks like the bull market is broadening out to the mid and small caps, so a good sign. I sill worry about the geopolitical / war related risks, plus the US election, but with the Fed planning 3 rate cuts this year, that should be a nice tailwind for the markets. Lots of potential landmines, but as the old saying goes - 'bull markets climb a wall of worry'.
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Xena, >> we have a lack of expertise re this technology <<
Yes, an understatement. And hardly the basis for a mega investment, is it? I've seen this so many times with these 'story' stocks - people fall in love with the stock and ride it down, down.
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