So exciting! Can’t wait to see where this stock will trade in the next 18 months. Hopefully higher than it is today.
Important Free Livestreams:
If you haven’t already, ex-hedge fund manager Chris Sommers and I hosted a livestream yesterday morning - we covered everything to do with Amplitude. It was recorded and can be watched here.
Tomorrow at 12pm EST I’m hosting a livestream with Defiance ETF’s Chief Investment Officer Sylvia Jablonski to discuss everything regarding the overarching economy, interest rates and inflation, valuation multiples on our favorite stocks, cryptocurrency, and her long-term high conviction ideas.
To register for the livestream with Sylvia tomorrow at 12pm EST, click here. It’s completely free and I love hosting these for you all! Thanks again for being a part of my Substack community.
In this post, we’ll cover:
Hot IPOs taking place this week
Quarterly financial reports worth reading
Investor events to keep an eye on
Major economic releases
If you want to learn more about the companies mentioned in this post, consider using Unhedged to conduct your research.
IPOs to Watch this Week:
Three companies are expected to hit the public markets this week - two of which you’ve likely purchased food or drinks from.
Portillo’s (PLTO):
This fast-casual restaurant serves iconic Chicago street food through high-energy, multichannel restaurants. Founded in 1963, the company has since grown nationwide. The company did $480M in revenue throughout 2019, rebounded sharply back up to $455M throughout 2020 (pandemic), and now is on track to rake in $510M or so in 2021 with 22% gross margins.
Personally, I’m not the most excited person to invest into restaurant stocks - but if Darden Restaurants (DRI) taught me anything, it’s don’t underestimate a well-managed restaurant chain.
Enfusion (ENFN):
This global SaaS provider focuses on simplifying investment and operational workflows for those managing portfolios on behalf of clients. The software company offers portfolio management, order execution, accounting, analytics, and other tech-powered services for their 635 clients around the globe.
Boasting a sticky product with only -0.9% revenue churn in 2020 and a 120% dollar-based net retention rate, the company is on track to do $110M in revenue throughout 2021 with EBITDA margins north of 30%.
Sounds like a cool company, but in my opinion the portfolio manager is a dead profession. Sure, it’ll take several years and maybe decades to see a true decline - but with the rise of robo-advisors and index funds it’s so hard to bet on a company powering a “dying” industry.
Vita Coco (COCO):
That’s right, your favorite coconut water beverage company is slated to make their public debut this week. This company owns a 46% market share in the coconut water category in the US - which is a 36% advantage over the next leading competitor. (That’s absolutely insane if you need to read that again.)
Despite the pandemic, the company grew revenue from $283M in 2019 to $310M in 2020 - and is now on track to rake in $350M in revenue during 2021, with about ~30% of that counting toward gross profit.
Very cool to see a company that’s actually EBITDA profitable and net income profitable hit the public markets - as well as have a massive hold on market share. Without digging too deep into the company, this seems promising. Coconut water seems to be a trend that isn’t going to slow down anytime soon. Keeping my eye on this one!
Key Earnings Announcements:
Not much of a ‘theme’ this week regarding earnings - we’re all over the place! But, I am going to keep my eyes on Netflix (NFLX) and Snapchat (SNAP).
October 18: Albertsons (ACI)
October 19: Johnson & Johnson (JNJ), Proctor & Gamble (PG), Netflix (NFLX)
October 20: Tesla (TSLA), ASML Holdings (ASML), Verizon (VZ)
October 21: Intel (INTC), AT&T (T), Snap Inc. (SNAP)
October 22: American Express (AXP)
If you haven’t yet read this deep analysis on Squid Game and how the show has positively impacted Netflix stock (as well as completely changed my perception of their company) - click here.
Generally a slow week in this front - but will be keeping you all posted regardless.
October 19: US Building Permits for September 2021
October 21: US Initial Jobless Claims for the week ending October 16
Not expecting either of these events to materially impact the markets this week - unless jobless claims really knock everyone’s socks off.
In case you missed it, our friends at Unhedged shared an awesome analysis surrounding what the big heads at the top banks (JP Morgan, Wells Fargo, and Bank of America) think about the current US economy, interest rates, supply chain issues, and BNPL competitors.
This is also your friendly reminder to buy some Bitcoin while it’s still below $100K.
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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