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
- High-Tech Factories Surge In The US
- A Renter’s Paradise—But For How Long?
- An Unquenchable Desire For Uranium?
- The Problem with ESG Funds
- How Many Millionaires Are There?
- 🇫🇷 Why France Is Underrated
- 3 Stocks To Consider
Table of Contents
High-Tech Factories Surge in the US, But No One Wants to Work There.
There’s a manufacturing boom in the US, with $102 billion spent on new manufacturing projects in 2023.
But semiconductor and EV companies are learning no one wants to work in their megafactories.
Companies like Intel, which is investing $20 billion in Ohio, may need to raise wages to pry employees from side gig suppliers Uber, DoorDash, and others.
Can they fill these high-paying, no-degree jobs in today’s work environment?
Livin’ in a Renter’s Paradise
via Home Economics
The American housing market is in a unique situation where home prices have risen while rents have dropped.
This divergence is unusual, and it’s primarily due to a surge in multifamily construction, which has significantly increased the supply of rental units.
But this renter’s paradise may be short-lived.
Get the full analysis from Aziz Sunderji.
Gold bugs are turning to uranium
via The New Money
Legendary mining financier Eric Sprott and resource investor Stephen Dattels are shifting their attention toward uranium, which is up 79% this year, backing it to drive the next stage in low-emission energy.
Even mainstream hedge funds and institutional investors like Citadel and Hong Kong billionaire Li Ka-shing are diving in.
The problem with ESG funds
Harvard found that more than 2/3 of ESG funds’ assets are identical to those in normie funds.
Why are we paying so many extra fees if they’re basically the same thing?
How Many Millionaires Are There?
via A Wealth of Common Sense
Think a million in the bank means luxury yachts and caviar? Maybe not.
Ben Carlson explains why a millionaire’s life might not be as glamorous as expected. The essay provides a straight-up look at retirement savings, lifestyle choices, and the real value of a dollar.
🇫🇷 Is France underrated?
France has navigated post-pandemic challenges — including the Ukraine war, labor strikes, and European migration crises — much better than expected. And much better than most.
Tyler Cowen thinks you should rethink your views on France.
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:
Short Squeez
Daily business news. From Wall Street to Silicon Valley.
Stocks and Income
I write this every weekday. All the content you need to get your investing day started off right.
Wealth Factory
The newsletter helps entrepreneurs learn how to build wealth.
Stock ideas
Let’s check back in with Yellowbrick Road, which highlights 15 stocks every week. Here are three of my favourites from this past week.
Powered by insights from public.com
Remember to always DYOR.
Tapestry ($TPR)
Bull Case:
- Positive Stock Forecast: Analysts anticipate a 19.05% increase in Tapestry’s stock price
- Supportive Technical Signals: Buy signals from short and long-term averages and support at $36.51 indicate a short-term buying opportunity.
Bear Case:
- Market Capitalization Decrease: A -3.55% decline in market cap over the past year hints at market uncertainty or underperformance.
- Overbought on RSI14: The RSI14 suggests Tapestry’s stock is overbought, potentially signaling a near-term correction.
- Volatile Stock Movements: The stock’s daily volatility poses a higher risk for investors seeking stability.
Natural Gas Services ($NGS)
Bull Case:
- Potential Upside in Stock Price: NGS has a target price of $26, indicating an 84.4% potential upside from the current level.
- Sales and Income Growth Projections: Expected sales growth to $114 million in 2023 and $134 million in 2024, with net income rising from $3 million to $6 million.
- Strong Market Position: NGS’s status as a leading provider in gas compression equipment and services highlights its market strength.
Bear Case:
- Recent Executive Changes: Recent shifts in key executive positions, like the CFO and CEO, may introduce instability.
- Financial Performance Concerns: Mixed results in Q3 2022, with revenues beating but EPS lagging expectations, could indicate profitability issues.
- High P/E Ratio: NGS’s high P/E ratio suggests it may be overvalued, posing a risk for value investors.
ServiceNow ($NOW)
Bull Case:
- Strong Market Position and Cloud Computing Solutions: ServiceNow’s prominence in enterprise cloud computing aligns with the growing demand for such services.
- Advanced Technology Integration: Incorporation of AI, machine learning, and automation enhances productivity and innovation.
- Diverse Industry Service and Consistent Revenue Growth: ServiceNow’s broad industry reach and steady revenue growth reflect its investment value.
Bear Case:
- High Valuation Concerns: The recent peak in ServiceNow’s stock price raises questions about its valuation and possible price corrections.
- Intense Market Competition: The company faces significant competition, which could affect its market share and profits.
- High Price-to-Earnings-Growth Ratio: A high PEG ratio implies the stock may be overvalued relative to expected earnings growth.
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.
- This newsletter was brought to you by our friends at InvestorPlace and pdfFiller.
- Nothing above is financial advice. DYOR, you filthy animal.
