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
- Greece’s Wildfire Preventing Satellites
- Costco’s Plan for the Housing Crisis
- The Age of SASEA
- Japan’s 310-Mile Conveyor Belt
- ElevenLab’s AI Audiobooks
- Nike Runs For It’s Life
- 3 Stocks To Consider
Thanks for reading.
Wyatt
Table of Contents
Greece’s Wildfire Preventing Satellites
The Greek government has awarded €20M to satellite startup OroraTech to leverage their cutting-edge imaging technology for wildfire prevention.
This groundbreaking partnership, the first of its kind in Europe, aims to identify potential fire risks before they escalate into serious threats. OroraTech’s custom AI screening technology, trained on unique images of early wildfire outbreaks, will be instrumental in spotting risks across various terrains.
Costco’s Plan for the Housing Crisis
Costco is leading an innovative mixed-use development in South Los Angeles, combining an 800-unit apartment complex with a smaller version of its store.
The project aims to address California’s severe housing shortage while offering residents convenient access to Costco’s offerings. While the unconventional design has drawn some criticism, many view it as a creative solution to the state’s housing crisis.
The Age of SASEA: Globalization’s Next Frontier
South Asia and Southeast Asia (SASEA) are poised to be the next big globalization story, with their enormous population, youthful demographics, and growing economies.
Geopolitical tensions between the U.S. and China are actually accelerating SASEA’s industrialization, as companies from both sides invest in the region to avoid tariffs and de-risk their supply chains.
If SASEA countries play their cards right, they can reap technology transfers and rapid development, much like Japan, Korea, and Taiwan did during the first Cold War.
Japan’s 310-Mile Conveyor Belt
Japan is planning an automated, zero-emissions logistics link between Tokyo and Osaka by 2034 to address labor shortages and rising online shopping demands.
The 500-km (310-mile) system, using either massive conveyor belts or autonomous electric carts, aims to move millions of tons of cargo efficiently while reducing greenhouse gas emissions.
Despite the high infrastructure costs, the government is determined to proceed with discussions and involve private companies in funding the project.
ElevenLab’s AI Audiobooks
ElevenLabs has partnered with the estates of legendary stars Judy Garland, James Dean, Burt Reynolds, and Sir Laurence Olivier to bring their voices to the company’s Reader App.
The app uses AI to turn any digital text into an emotionally rich, context-aware voiceover, making it possible to listen to classic works like The Wonderful Wizard of Oz voiced by Judy Garland. This milestone marks another step in ElevenLabs’ mission to make content accessible in any language and voice.
Nike Runs For It’s Life
via The Stock Market Rundown
Nike, the global sneaker giant, is facing its slowest revenue growth in two years as upstart brands like Hoka chip away at its market share.
To cope, Nike is taking a page from McDonald’s playbook by introducing lower-priced sneakers to attract budget-conscious customers. The key lesson for Nike: even with its iconic swoosh, it can’t outrun the competition.
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:
5-minute reports on AI, Crypto, and more for those looking to start their own business.
The most important tech news and insights. Join 80,000+ early adopters staying ahead of the curve, for free.
Visual insights into business, tech, entertainment, and society.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
British American Tobacco ($BTI)
Bull Case:
- Valuation and Yield: BTI trades at a low 7.3x P/E and 0.7x P/B with a compelling 9.8% dividend yield.
- Cash Flow Stability: BTI generates consistent cash flows with a 2% revenue CAGR, 27% net margin, and 34% ROOC.
- Diversification Potential: While 80% of revenue is from combustibles, BTI is diversifying into vape, heated, and oral products for future growth.
Bear Case:
- Debt Concerns: Plans to reduce debt may require retiring £8 billion, with higher refinancing costs potentially straining profitability.
- Limited Upside: Despite its discount, BTI’s estimated NPV suggests only 7% upside.
Ingevity ($NGVT)
Bull Case:
- Diversified Business: Ingevity’s four segments provide diversified revenue.
- Improving Conditions: Declining CTO prices, rebounding markets, and a factory closure position Ingevity for improved margins.
- Earnings Growth Potential: Expected to earn $5.00-$6.00 per share in 2025, implying a low 7-8x valuation vs. historical 14-17x.
Bear Case:
- Industrial Specialties Challenges: High CTO prices have dragged on this segment; a slow recovery could negatively impact overall results.
- Ambitious Targets: Management’s $1B 2028 EBITDA target may be too optimistic; $700-800M is more realistic.
Disney ($DIS)
Bull Case:
- Unique IP and Experiences: Disney’s iconic IP and parks drive consistent growth in Experiences, with $18B EBIT projected by 2030.
- Streaming Profitability: Disney’s streaming services are expected to become profitable in Q3 and generate substantial earnings growth.
- Undervalued Opportunity: Investors are overly focused on challenges, ignoring Disney’s overall value.
Bear Case:
- Linear Networks Decline: Disney’s linear networks face subscriber losses and decreased profitability as the world shifts to streaming.
- Streaming Investments and Competition: Heavy streaming investments have yet to yield profits, and Disney’s late market entry may hinder its ability to compete with established players.
- Execution Risk and Sentiment: Disney faces execution risk in navigating streaming, costs, and profitability targets.
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.
