Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week, we bring you
Table of Contents
Google’s Cookie Crumble
In a surprising twist, Google has announced it won’t be deprecating third-party cookies after all.
Instead, the tech giant is exploring a “new path” that emphasizes user choice in online privacy. This decision comes after years of promises and delays, facing pushback from advertisers, publishers, and regulators worldwide.
What does this mean for digital marketing?
Kawasaki’s Hydrogen-Powered Ninja
Kawasaki has made history by publicly demonstrating the world’s first mass-production hydrogen-powered motorcycle.
The modified Ninja H2 SX, featuring a hydrogen-burning combustion engine, offers the thrill of traditional motorcycling with minimal environmental impact.
This innovative approach could revolutionize long-distance riding, allowing for quick refueling while producing only water as exhaust.
OpenAI Develops Its Own Chip
OpenAI is making waves in the tech world with plans to develop its own AI chip. This move aims to reduce dependence on scarce and expensive Nvidia GPUs, addressing a critical bottleneck in AI development.
With talks underway with chip designers like Broadcom and a team of former Google chip experts on board, OpenAI is positioning itself for greater autonomy and efficiency in its pursuit of advanced AI technologies.
Lab-Grown Meat… For Pets
British regulators have approved cultivated meat for pet food, marking a significant milestone in sustainable animal nutrition.
Meatly, a cultivated meat pet food startup, is set to pioneer the product in the European market. This approval could potentially transform the pet food industry, offering a more environmentally friendly alternative to traditional meat-based products.
DeFi Technologies Bets on Solana
DeFi Technologies, a publicly traded company, has made a bold move by purchasing 12,775 Solana tokens in addition to its existing Bitcoin holdings. This decision signals a growing acceptance of diverse digital assets among traditional market players.
As a pioneer in bringing decentralized finance projects to mainstream markets, DeFi Technologies’ embrace of Solana may pave the way for broader adoption of the token and other cryptocurrencies.
The Coming Peak of Global Population
The UN Population Division’s World Population Prospects 2024 report reveals a startling trend: global fertility rates are plummeting, signaling an approaching peak in human population.
Despite the current record of 8.1 billion people, projections suggest a population peak of 10.29 billion around 2084, followed by a decline. This shift is driven by factors like increased access to contraception, urbanization, and changing social structures.
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.
Aussie-focussed market news that gives a solid non-US perspective on global finance.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
CCC Intelligent Solutions ($CCCS)
Bull Case:
- Dominant Market Position: CCCS processes over 80% of US auto claims, connecting insurers, repair shops, and parts suppliers.
- Data Advantage: CCCS’s vast crash data ($1 trillion worth) provides a unique asset for training AI models.
- Growth Opportunities: The company has significant growth potential in straight-through processing automation and a developing parts marketplace.
Bear Case:
- Limited New Logo Growth: With high market penetration in both auto repair shops and insurance carriers, CCCS faces challenges in acquiring new customers.
- Dependency on Auto Industry Trends: CCCS’s growth is tied to the evolving complexity of vehicles and repair processes, which could be impacted by changes in automotive technology.
Allient ($ALNT)
Bull Case:
- Strong Market Position and Growth: Allient has shown attractive organic growth of 4-5%+ per year for the past decade, outpacing peers in the industrial motion/components market.
- High Returns and Sticky Customer Relationships: Allient consistently achieves 20%+ returns on tangible capital, benefiting from high customization and long sales cycles.
- Restructuring and Margin Expansion: The company’s “Simplify to Accelerate NOW” initiative aims to optimize operations and eliminate redundancies.
Bear Case:
- Debt Concerns: With ~$200 million in net debt and a 2.35x net debt to adjusted EBITDA ratio, Allient’s leverage is somewhat high, given economic uncertainties.
- Short-Term Revenue Headwinds: Management expects a 6% organic revenue decline this year due to destocking across the industrial space.
Madison Square Garden Sports Corp.($MSGS)
Bull Case:
- Potential NBA Media Rights Windfall: A rumored $76 Billion NBA media deal could increase MSGS’s annual revenue by $140 Million.
- NBA Expansion Opportunity: Possible NBA expansion to Las Vegas and Seattle could result in a $267 Million windfall for MSGS.
- Undervalued Assets: MSGS trades at a significant 50% discount to Forbes’ $9.25 Billion valuation of the Knicks and Rangers.
Bear Case:
- Dolan Family Control: The Dolan family’s 70.9% voting rights control limits shareholder influence for value-unlocking corporate actions.
- Market Volatility: As a sports and entertainment company, MSGS is vulnerable to economic downturns.
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.
