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
Thanks for reading.
Wyat
Table of Contents
Budweiser Turns Song Mentions into Targeted Spotify Ads
Budweiser’s new “UninterruptAds” campaign in Brazil strategically programs songs mentioning the brand, like “My Luv” by Kafé, as ads in corresponding genre playlists on Spotify.
By reaching listeners with songs already aligned with their musical tastes, the AB InBev brand aims to organically boost name recognition without disrupting the listening experience.
The unique audio advertising approach seeks to strengthen Budweiser’s ties to the music scene and engage consumers in a more integrated way.
More about Budweiser’s innovative campaign.
Base Power Company: The Modern Power Company of the Electric Era
Base Power Company is tackling the grid bottleneck that stands between us and a clean, abundant energy future. By deploying connected batteries across the grid in peoples’ homes, starting in Texas, Base aims to match electricity production and consumption, reducing strain on the grid.
With a team of ex-Anduril, SpaceX, Tesla, Ramp, and Apple engineers and operators, Base is vertically integrating to become a Retail Electric Provider and build the most profitable battery storage portfolio.
The World’s Largest Olive Oil Producer Faces Unprecedented Challenges
Spain’s Deoleo, the world’s top olive oil producer, says the industry is grappling with one of its most difficult moments in history due to climate change, soaring prices, high interest rates, and inflation.
Two consecutive years of scorching heat in Spain, which accounts for over 40% of global olive oil production, have limited harvests and led to record-high prices.
While recent rains have cooled prices somewhat, Deoleo believes the sector needs a profound transformation to address the high volatility and lack of predictability in pricing.
The Mexican Peso’s Meteoric Rise
The Mexican Peso has soared to new heights, becoming 2023’s best-performing currency as global manufacturers flock to Mexico. It surpassed China as the leading US importer for the first time in two decades.
Factors like record remittances, nearshoring, and increased foreign investments have propelled the Peso to its highest real effective exchange rate since 2005, with an impressive 15% gain against the US dollar in 2023 alone.
More about the Peso’s remarkable ascent.
Ukraine Unveils AI-Generated Foreign Ministry Spokeswoman
Welcome Victoria, Ukraine’s new AI-generated spokeswoman. She will deliver official statements on behalf of its foreign ministry in the visual and vocal likeness of Ukrainian singer Rosalie Nombre.
While the visual aspect of Victoria is AI-generated, the statements themselves will still be written and verified by human diplomats. To ensure authenticity, her statements will include a QR code that links to text versions on the ministry’s website.
Will this become the new standard for diplomatic communication?
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:
Crypto made simple. Actionable alpha 3x a week.
Aussie-focussed market news that gives a solid non-US perspective on global finance.
A daily briefing that delivers curated financial news without the noise.
Oh, and don’t forget to check out our curated book recommendations.
Burford Capital Limited ($BUR)
Bull Case:
- Massive potential payout: $6.2 billion judgement against Argentina could be worth $28 per share.
- Strong pipeline: $242 million of proceeds were received in 2023 from pandemic-delayed cases.
- Attractive business model: Burford helps companies strengthen financials by financing litigation costs.
Bear Case:
- Execution risk: Significant uncertainty around collecting the full $6.2 billion judgement from Argentina.
- Industry risks: Litigation finance is still nascent with regulatory risks that could pressure Burford’s growth.
ADTRAN Holdings Inc ($ADTN)
Bull Case:
- Cost Reduction and Cash Generation: Substantial working capital improvements could generate significant cash in 2024-2025.
- Industry Catalysts: US BEAD fiber subsidies and Huawei replacements in Europe should drive strong revenue growth in 2025-2026.
Bear Case:
- Severe Downturn: The current telecom equipment slump is the worst in over a decade. If it persists, ADTN may face a liquidity crunch.
- Tight Debt Covenants: ADTN’s covenants are tight given depressed EBITDA.
- ADVA Shareholder Obligation: The $360 million cash payment owed to ADVA holders in 2-3 years could cause a liquidity crisis.
PAR Technology ($PAR)
Bull Case:
- Stable Core Business: PAS has seen high retention and 8x ARR per share growth in 5 years under its new CEO.
- Strategic Acquisitions: Stuzo and TASK deals add scale, profitability, and new markets.
- Cash Flow Inflection: A transition to cash flow positive in 2023 could lead to a 10x+ revenue multiple re-rating.
Bear Case:
- Acquisition Integration Risk: Execution risk around integrating Stuzo and TASK deals.
- Competitive Pressures: While PAR has a strong position, rivals could win customers or compress margins.
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.
