Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
Wednesday, we announced that Alts 1 is open again to new investors, and we’ve already received over $500k in interest. If you want to invest differently—in assets like blue-chip wine, British contemporary art, tequila barrels, and Pele rookie cards—please get in touch.
Oh, and don’t forget to check out our curated book recommendations.
This week, we bring you
Table of Contents
Blade: The Air Taxi Company Quietly Saving Lives
Blade, known for its luxury helicopter rides, has quietly become America’s largest air transporter of human organs.
While passenger flights make up 44% of its revenue, the majority now comes from its organ transport business, MediMobility.
Blade’s pivot to organ transportation has become a lucrative endeavor, providing a hedge against the seasonality of its passenger business and a lower-risk opportunity for introducing electric vertical aircraft.
The US Is Set To Reclassify Cannabis
The DEA is poised to make a landmark decision to reclassify cannabis from a Schedule I drug to a Schedule III drug.
The shift in perception towards cannabis, acknowledging its medical benefits and safety profile, has had a notable impact on the market.
Shares of major cannabis companies like Canopy Growth, Aurora Cannabis, and Trulieve Cannabis soared on the news as investors anticipate federal decriminalization in the United States.
Get the full scoop from The New Money.
China Bans Facial Recognition at Hotels
Chinese authorities have ordered hotels in major cities to stop using facial recognition technology for guest check-ins.
This decision responds to growing public concerns over data privacy, following Beijing’s initiative last year when new guidelines were issued restricting the use of facial recognition technology in privately operated spaces.
Although facial recognition is still widespread in public areas and key to China’s surveillance infrastructure, this prohibition represents a notable shift in policy.
[Ed: how many government ministers are worried about blackmail?]
Home Depot’s Aggressive Advertising Goals
Home Depot has relaunched its retail media network as Orange Apron Media, aiming to double its current advertiser base over the next few years.
The rebranded network offers suppliers ad placements on HomeDepot.com, in promotional emails, and on in-store TV screens.
This initiative aims to enhance visibility and attribution for advertisers, providing valuable exposure for new and niche products.
More from Digital Commerce 360.
An Update On Toyota’s City At The Foot Of Mount Fuji
A few weeks ago, we covered Toyota’s ambitious £8 billion project, Woven City. Since then, Toyota has made great progress and things are nearing completion.
Described as a “living laboratory,” this city will serve as a testing ground for Toyota’s self-driving vehicles and sustainable living solutions.
With the first 2,000 residents set to move in by the end of the year, Woven City promises to provide invaluable data on traffic patterns and the potential of connected AI technology.
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
Daily trading ideas, strategies, and alerts from trading veteran Jeff Bishop.
Weekly strategies to build multi-generational wealth simply and safely.
One-stop shop for the day’s biggest stories in the business of sports, music, and entertainment, sent daily.
Oh, and don’t forget to check out our curated book recommendations.
Stock ideas
Here are three of my favourites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
Taiwan Semiconductor($TSM)
Bull Case:
- Dominant Market Share: TSMC holds a 67% market share in advanced nodes, expected to exceed 70% in 1H 2024.
- AI Boom: AI revenue is projected to double in 2024, with a 50% CAGR over the next 5 years.
- Global Expansion: TSMC is expanding with new fabs in the US, Japan, and Germany.
Bear Case:
- Margin Pressure: Margins are under pressure from rising electricity costs and lower yields on advanced nodes.
- Intel Competition: Intel aims to match TSMC’s 2nm tech with its 18A node by 2025.
PowerFleet Inc($PWFL)
Bull Case:
- Merger Synergies: The merger with MiX Telematics brings synergies and a unified product offering.
- Strong Revenue Growth Potential: The combined entity is well-positioned to achieve 20% recurring revenue growth.
- Attractive Valuation with Upside: At ~4.5x EBITDA and a $6-7 price target, PWFL offers significant return potential.
Bear Case:
- Execution Risk: Merger integration carries risks, especially against established players.
- Dependence on Successful Transition: PWFL’s future hinges on successfully transitioning to a software-centric offering.
Greenlight Capital Re($GLRE)
Bull Case:
- Strong Fundamentals: Greenlight Reinsurance has shown consistently low combined ratios, strong investment returns, and high-interest income.
- Undervalued: Greenlight trades at only 0.65x book value, suggesting significant undervaluation.
- Upside Potential: As the valuation gap closes, there is potential for 70% upside.
Bear Case:
- Past Underperformance: Greenlight’s terrible performance from 2015-2020 raises concerns about the sustainability of its recent turnaround.
- Dependence on Key Individual: David Einhorn’s 20% stake and investment decisions could significantly impact Greenlight’s performance.
That’s it for this week.
If you write amazing content and want to be featured, please send it through for consideration.
Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- Nothing above is financial advice. DYOR, you filthy animal.
