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
- The Side Hustle Surge
- Capri Sun Squashes Pouch Panic
- OpenAI’s GPT-Next
- The Rise of Return Fraud
- Olipop Takes On The Dew
- World’s Largest Wind Turbine
- 3 Stocks To Consider
Thanks for reading.
Wyatt
Table of Contents
The Side Hustle Surge
As wages struggle to keep pace with rising living costs, a growing number of Americans are turning to second jobs to make ends meet.
In July, 5.3% of workers held multiple jobs, matching pre-pandemic levels from 2019 and up significantly from the April 2020 low of 4%.
Younger generations are leading the side hustle trend, with 71% of Gen Zers and 68% of millennials pursuing extra work in the past year. Despite the additional income, 44% of those with side gigs still report feeling financially unstable.
Capri Sun Squashes Pouch Panic
Capri Sun has quelled rumors about ditching its iconic pouches, assuring fans that they’re “here to stay.”
While the brand is introducing 12-ounce bottles aimed at adults next year, this move is an expansion, not a replacement. 76% of suggestions to Capri Sun’s call center between 2020-2023 requested larger product sizes, yet the company still promises to “never disrespect the pouch.”
OpenAI’s GPT-Next
OpenAI Japan’s CEO has unveiled exciting details about ‘GPT-Next’, the company’s upcoming AI model expected to be 100 times more powerful than GPT-4.
This leap in performance is achieved without significantly increasing computing resources, thanks to improved architecture and learning efficiency.
The Rise of Return Fraud
Return fraud is becoming a significant issue for retailers, with every $100 in returned merchandise costing them $10.40.
A survey of 600 retailers across Australia, the UK, and the US reveals that all have experienced some form of returns fraud or policy abuse in the past year.
The economic climate is driving consumers to exploit return policies, while retailers struggle to balance fraud prevention with maintaining a positive customer experience.
Olipop Takes On The Dew
Olipop, the better-for-you soda brand, is taking on Mountain Dew with its new “Ridge Rush” flavor and “A Can of Do” campaign.
The launch includes mountain-themed packaging, citrus-boosted flavor, and 50mg of green tea caffeine, directly competing with Mountain Dew’s signature style. Olipop’s strategy involves targeted promotions to younger consumers, including partnerships with NASCAR and former NFL great Shannon Sharpe.
World’s Largest Wind Turbine
Mingyang Smart Energy has unveiled the world’s largest offshore wind turbine in Hainan, China, boasting an impressive 20 MW power output.
This colossal turbine, with a wind rotor diameter of up to 292 meters, can generate enough electricity to power 96,000 homes annually. The installation marks a milestone in renewable energy, pushing the boundaries of wind power technology and efficiency.
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
Weekly newsletter covering strategy, startups, marketing, decision-making, and the mindset of founders.
Early Bird Stock Market News
Daily overview of the stories driving today’s market, every morning at 7AM.
One-stop shop for the day’s biggest stories in the business of sports, music, and entertainment, sent daily.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
United Parks & Resorts ($PRKS)
Bullish Case
- Operational Improvements: PRKS has improved EBITDA margins from 29.2% in 2018 to 41.3% on a TTM basis.
- Attractive Valuation: Trading at ~6.8x ’25 EBITDA, PRKS is significantly undervalued compared to the theme park industry’s historical 5-year average.
- Strategic Growth: With 400 acres of unutilized land and a successful licensing model in Abu Dhabi, PRKS has significant opportunities for expansion.
Bearish Case
- Stagnant Attendance: Overall theme park attendance has not grown significantly over decades, and PRKS is still working to reclaim its 2008 attendance record.
- Economic Sensitivity: As a consumer discretionary business, PRKS could face challenges if economic conditions worsen.
WideOpenWest($WOW)
Bullish Case
- Undervalued Acquisition: The current $4.80/share bid values WOW at 5x TTM EBITDA, significantly below industry transaction ranges.
- Strong Asset Value: WOW’s network is valued at $680 per passing in the current offer, well below its $1,050 build cost.
- Operational Inflection Point: Recent management actions have stabilized subscriber numbers.
Bearish Case
- “No Deal” Risk: If an agreement on a higher takeover bid cannot be reached, the stock could face downward pressure in the short term.
- Historical Performance Concerns: Recent quarters saw significant subscriber losses and negative cash flows due to the fiber build-out program.
Harrow, Inc. ($HROW)
Bullish Case
- Strong Revenue Growth: Harrow reported robust H1 2024 growth across all segments, with revenue guidance now exceeding $180 Million.
- Product Portfolio Expansion: Iheezo is rebounding strongly, Veyve shows promising results, and Triesence is likely to launch in Q4.
- Market Potential: With a significant total addressable market and ongoing product innovation, Harrow is well-positioned for continued growth.
Bearish Case
- Unprofitable Operations: Despite revenue growth, Harrow remains unprofitable with expenses outpacing revenue growth.
- Cash Burn: Ongoing cash burn, although partially explained by high accounts receivable, could strain the company’s financial position.
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.
