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  • The Investing Week Ahead: 4/4/22

The Investing Week Ahead: 4/4/22

AT&T's time to shine, Elon Musk is now the largest shareholder in Twitter, earnings, Bitcoin conference, and trade deficit.

04 Apr

Happy Championship Monday!

Tonight, the country watches as UNC takes on Kansas in as “blue blood” of a title game we could ask for. Congrats to any of you subscribers from the University of South Carolina on winning the Women’s National Championship last night!

The money implications of March Madness go far beyond your college roommate trying to win that $50 from their bracket pool. Hundreds of millions weigh in the balance of both the results of tonight’s game and the viewership results.

The stocks to watch? While you may expect the game to be played on CBS or ESPN, it’s actually on TBS. Warner Media owns TBS —> and AT&T owns Warner Media.

So if you’re wondering who cares the most about the viewership exceeding 20 million for the first time since 2017… it’s ticker symbol T!

Don’t forget about the sports & entertainment tickers that desperately hope for high ratings, and consequentially high sports betting volume: BETZ, CZR, DKNG, MGM, PDYDY, & PENN.

Quick note — you all might have already read about it this morning, but Elon Musk is now the largest shareholder in Twitter (TWTR), owning more than 73.3M shares (9.2% of the entire company). This news came in the form of a 13G filing, which essentially means Elon is on the “passive” side of the shareholder aisle.

This filing took place only a few weeks after sharing this tweet about free speech on the platform.

What not to expect — Elon Musk to pull a Ryan Cohen and buy himself a board seat. At time of writing, Elon is viewed as a “passive investor” in the company by the SEC. However, I’m sure a few hours worth of paperwork could change that very quickly.

In this post, we’ll cover:

  • Quarterly financial reports worth reading

  • Investor events to keep an eye on

  • Major economic releases

  • Event-driven winners

Consider using Seeking Alpha to conduct your research along the way.

The Investing Week Ahead - Too Long, Didn’t Read:

  • Earnings reports from Acuity Brands, Greenbrier Companies, Levi Strauss, Tilray, Conagra Brands, and Constellation Brands

  • Investor events are highlighted by Bitcoin Conference 2022 and the NCAA Men’s Basketball Championship

  • Econ analysts are focused on the FOMC Minutes and the US Trade Deficit

Key Earnings Announcements:

We catch our breath this week — it’s the most relaxed earnings period thus far in 2022.

Monday (4/4): Atotech

Tuesday (4/5): Acuity Brands, NovaGold Resources, SMART Global Holdings

Wednesday (4/6): Greenbrier Companies, Levi Strauss, Tilray

Thursday (4/7): Conagra Brands, Constellation Brands, WD-40

What we’re watching:

You might remember my detailed breakdown of the strong earnings results Levi Strauss (LEVI) delivered during the fourth quarter as outlined here. Their secret sauce was the fact that they were sourcing their products and raw materials across 24 different countries with no single country representing more than 20% of their inventory. Specifically, Vietnam only represented 4% of their products served, despite being the main hub for clothing manufacturing for other global brands.

Considering the company’s management team made an effort to note they “locked in prices” on shipping through Summer of 2022 — I’d be surprised if we see any sort of deterioration in their margins coming from supply chain constraints.

The company did however suspend operations and distribution in Russia given their conflict. I’m not positive as to what that means for their top and bottom lines, but I would guess negligible.

Investor Events:

Bitcoin Conference in Miami headlines a busy week of investor relations throughout the country.

Monday (4/4): NCAA Men’s Basketball National Championship

Tuesday (4/5): Analog Devices Investor Day, Microsoft “Windows Powers the Future of Hybrid Work” Event

Thursday (4/7): Accenture Investor & Analyst Conference

All Week: Bitcoin Conference 2022, Credit Suisse Investor Landscape Conference

Widely considered the largest Bitcoin gathering in the world, speakers at the conference include:

Major Economic Updates:

Econ analysts will be focusing their attention on the FOMC Minutes, seeking out any specific indications of how the Fed may change their current messaging in the coming months.

Monday (4/4): Factory Orders

Tuesday (4/5): Foreign Trade Deficit, ISM Services Index

Wednesday (4/6): FOMC Minutes

Thursday (4/7): Consumer Credit, Joblessness Updates

Rather quietly, the US trade deficit has reached an all-time high. While it’s not a zero-sum-game of “this number being worse means that America is in a worse spot” — we still don’t want debt to increase forever. Forecasts for February come in around a -$88B trade deficit, marginally improving from the month before.

1Y Outlook:

25Y Outlook:

If you’re in the mood to watch a very eye-opening video produced and narrated by legendary investor Ray Dalio, specifically as it relates to debt and world power, click below. Mind you — it’s about 45-minutes long.

Events-Driven Winners:

What specific events are moving stocks the most?

Our friends at LevelFields took the time to scrub through thousands of data points and determine how events impacted stock prices last week. It’s a great platform for catching trading opportunities as they arise.

Love seeing Lululemon (1% of my overall portfolio) reversing after a pleasant earnings report.

If any of you hold Longeveron (LGVN) — you had a really fun time last week!

If you find these Week Ahead posts helpful, please consider sharing with a friend! Have a great start to your week!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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