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On Friday’s Episode we talked: Draft Kings, Visa & MasterCard, Beyond Meat, Exxon, Amazon and preachy Chamath.
Here are some of the main highlights from the show!
Beyond Meat – COVID19 Cripples US Meat Processors
Grizzle was banging on the table in early April telling investors to get heavy on Beyond Meat, specifically the options!
It has been a tremendous trade, the demise of the broken US meat processing industry to the coronavirus has presented plant based proteins a tremendous opportunity to make significant market share gains.
Source: ycharts.com
Visa & MasterCard
Both Visa and MasterCard have lagged their technology peers meaningfully in the market recovery, we believe there’s a disconnect between the strong structural fundamentals of these two digital payment juggernauts and their underlying share prices. We’re buyers of long dated calls as the way to get torque into the trade.
Source: ycharts.com
Visa & MasterCard forward valuations have pulled back meaningfully from the beginning of the year.
Source: ycharts.com
Gold – Take the Miners over the Paper
Gold mining stocks lagged the physical gold and paper gold significantly in the beginning of the year, however over the last month gold stocks have staged a massive come back vs paper gold.
Grizzle continues to be very bullish gold equities, our favorite large cap name is Agnico Eagle (NYSE: AEM).
source: ycharts.com
Preachy Chamath Palihapitiya – Why Comparing IBM to Apple Makes No Sense!
Chamath’s ‘two brothers’ analogy on CNBC comparing Apple vs. IBM is a total straw man argument. He knows the rules of the game better than anyone, to play populist quarterback after the fact is total junk.
You can compare any company’s return versus Apple and rail on ‘bad management’, the truth is that technology investing is bloody hard. If IBM didn’t buy back shares they likely would have made garbage acquisitions or doubled down on bad tech (BlackBerry case in point).
Source: ycharts.com
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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.