The Investing Week Ahead: 11/1/21
Join me as I highlight the most important topics to attack the investing week ahead.
So sorry about the delay here - my Monday was busier than originally anticipated. Good news is November is going to be a very fun month for us over here and I’m thrilled to kick it off with this in-depth post.
If you haven’t already, click this link to read my analysis and commentary of notable quarterly earnings reports, economic data, and IPOs that took place last week.
A warm welcome to the 158 of you who have subscribed since last Monday - text me if you have any questions!
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:
A well-known sneaker company is making their public debut, as well as a company whose products might reside in your living room.
The California-based company founded to “develop footwear and apparel using naturally derived materials that aim to be more environmentally sound” is planning to raise $250 million this week through an IPO.
The company generated $193 million in revenue in 2019, $219 million in 2020, and is on pace to rake in $235 million this year - with roughly 54% gross profit margins. But, this revenue increase didn’t come without higher SG&A expenses as a percent of that revenue - increasing from 33% in 2019 to now almost 45% in 2021.
It’s a shoe company - sure, they have nice margins, but they can be easily replicated by their countless competitors. I’ll be on the sidelines for this one.
The Ohio-based company founded to “sell heirloom quality, artisan-made furniture and décor products through an omni-channel approach” is planning to raise $355 million this week through an IPO.
The company generated $494 million in revenue in 2019, $507 million in 2020, and is on pace to rake in $710 million this year - with roughly 42% gross profit margins. Another awesome call out is that the company is actually profitable - having generated $18 million in profits during 2020 and on pace to generate $32 million this year.
Arhaus is absolutely raking in the cash as well - on pace to generate $220 million in cash flow from operations this year.
This one sounds fun - a furniture company with 42% gross profit margins, growing revenue almost +60% annually, all during a time where we just saw a massive spike in home purchasing.. and they didn’t see a contraction during the pandemic. I’m interested in this one.
Key Earnings Announcements:
I hope you brought your reading glasses - this week is going to be a big one.
November 1: Realty Income Corporation (O), Clorox (CLX)
November 2: Pfizer (PFE), KKR (KKR), Zillow Group (ZG)
November 3: Qualcomm (QCOM), CVS (CVS), Matterport (MTTR), Roku (ROKU)
November 4: Moderna (MRNA), Square (SQ), MercadoLibre (MELI), Uber (UBER), Pinterest (PINS)
November 5: DraftKings (DKNG)
I’m going to keep my eye on a few of these companies - especially Zillow, Roku, Square, MercadoLibre, Uber, and DraftKings. For some reason, I feel like Uber is about to knock our socks off and DraftKings could announce another awesome NFT development that will meme their stock higher in the short-term.
Also - look into Matterport when you get a chance. They’re an interesting company as well.
The world’s most valuable company ($2.5 trillion) is hosting an investor event you won’t want to miss.
November 2: Satya Nadella, CEO of Microsoft (MSFT) presents at the Microsoft Ignite 2021 Conference
Microsoft’s Ignite Conference features four curated themes exploring transformation and revealing the trends shaping the new business environment - those include:
Empower everyone for a new world of hybrid work
Innovate anywhere from multi-cloud to edge
Build a hyperconnected business
Protect everything with end-to-end security
Major Economic Updates:
Economic releases are in focus this week. Jerome Powell, Chair of the U.S. Federal Reserve, is expected to comment on interest rates and the persistence of inflation during the press conference after the FOMC meeting on Wednesday.
November 1: US Manufacturing PMI for October 2021 from the Institute of Supply Management
November 3: US Federal Funds (Interest) Rate decision from the Federal Reserve
November 5: US Non-Farm Payrolls for October 2021 from the Bureau of Labor Statistics
Expect volatility in the markets - interest rates absolutely impact stock prices in the near-term.
Looking forward to an awesome week with you all! Thanks again for being patient today. Also - don’t forget to buy Bitcoin.
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.