Elon Musk Games, The predictable Peloton fall and The Coke/Pepsi debate.
Elon Musk Games, The predictable Peloton fall and The Coke/Pepsi debate.
This weeks edition of Aconomics we'll talk about Musk's strategy to sell Tesla stock, the fall from grace of Peloton and we'll compare Coke and Pepsi financials.
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First of all, welcome to the new subscribers who joined this week! I hope youâre all doing great! â On this edition of Aconomics weâll switch it up a bit and try a new structure, hope you enjoy it!
[1] News Roundup: Elon Hunger Games and more
[2] In depth: Pepsi & Coca-Cola Financial comparison
[3] A Stock Iâm flirting with.
[4] Funny meme or recommendation
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[1] News Roundup
Elon Musk vs. UN World Food Programe
Elon Musk and Tesla made the headlines recently, on one side, Elon Musk offered to sell 6 Billion worth of stock to and donate it to the UN World Food Programme to âend world hungerâ if his Executive Director David Beasley would explain on the twitter thread exactly how the money was going to be used and to do it using âopen source accounting, so the public sees precisely how the money is spent.â
Needless to say, nothing happened. It was just propaganda and a lot of BS. The same programme raised 8.4 Billion in 2020, why wasnât the world hunger over then? SO you see, the UN is also playing the click-bait game and progressive politics to increase their popularity. This problem requires much more than money, but sadly, instead of coming up with a plan, they waste time jumping on anti-billionaire trends for clicks.
Elon Musk vs. Tax Avoidance and Unrealized Gains
This is for me, a very smart way for Musk to get liquidity by selling stocks and having no repercussion whatsoever from the fans. Heâll blame âtwitter crowdâ.
Let me explain:
Elon musk has said in various occasions that the TSLA Stock is very high, more recently when it shoot up after Hertz said they would by 100K teslas. Now, we know for a fact he does not like taxes and progressive politics (he moved Tesla to Texas from California a few months back) but now he wants to pay taxes?? Look at his tweet:
This is brilliant. He will end up selling a whole day of normal volume to liquidate 10% of his shares (around 2.3% of Tesla), the stock will dip a bit or a lot, it depends on how fast he sells the stock, he will pay a bunch of taxes and then.. what? He is not going to keep cash in the bank (inflation :/ ) and he is getting rid of all his properties, so no real estate.
Two options. He either injects capital to his other ventures OR as many are hoping, he will buy Crypto, most likely bitcoin, Ethereum and Doge (the only three he owns apparently). What do you think?
Peloton $PTON vs. reality
The CFO admits "We underestimated the reopening impact on our economy" and they reported a loss per share of $1.25 vs. $1.07 expected and Revenue of $805.2 million vs. $810.7 million expected. They lost 376 million dollars in the quarter. - I guess people are going back to the gym or just not working out at all now that they can go out a live a little :)
Very predictable outcome for a stock that was hyped beyond believe during covid 19.
[2] Pepsi & Coca-Cola Financial comparison
I love Reddit, I do, but whenever you put to many people in a room, you are bound to get the same discussion happening over and over again and for some reason, in this case, it makes little sense because if you cant decide between $KO and $PEP, buy both.
In any case, I decided I would make a financial comparison between the two companies. I checked their Revenue, their Gross and Operating Margin, Cash reserves, Debt (Long and short debt) and their PE ratios, EPS and Dividends.
I was going to make a whole article about it but instead, I made a video. A long and boring video if you donât like finances :) And here it is:
Spoiler Alert: The conclusion is that from a purely financial point of view, Coca-cola is the way to go: Large cash reserves, better dividend, bigger margins, etc.
[3] A Stock Iâm flirting with.
Just to be clear, I havenât invested in this company just yet, but I do like it.
The name of the company is ATAI Life sciences N.V. It was in 20 hedge funds' portfolios at the end of June. The all time high for this statistic was previously 3. And one of its backers is Peter Thiel (PayPal, Clarium capital, Palantir, etc)
What do they do? Well, through its subsidiary, it operates as a clinical-stage biopharmaceutical company thatâs trying to lead a revolution in psychedelic medicines
The ticker is $ATAI and its trading at $17.18. It currently has 12 analysts covering it with 1 Hold, 9 Buy and 2 Strong buys.
I like the stock because I thing Psilocybin and other psychedelic drugs are making a lot of progress and will be accepted as treatments for a myriad of disorders and this companies funds and shares data to push the revolution forward.
I donât kill for Price Target charts with stocks like this one because I will hold them for many years. But here it is:
[4] Funny meme or recommendation
I wanted to bring you a Funny Meme for this awesome first changed edition but Iâm reading a book that I think is fascinating and I wanted to share it in case youâre interested in CRISPR technology.
The Code Breaker by Walter Isaacson
About the book: The development of CRISPR and the race to create vaccines for coronavirus will hasten our transition to the next great innovation revolution. The past half-century has been a digital age, based on the microchip, computer, and internet. Now we are entering a life-science revolution. Children who study digital coding will be joined by those who study genetic code.
And thatâs it!
If you got to this point you either have too much time on your hands or I made it compelling enough :) Iâll choose to believe the latter. If you can share this newsletter it would mean a lot to me. Thank you again and have a great week!!
Until next time!
If you like my content, I would highly appreciate you sharing it and letting me know! And if you see a typo, an error or have anything else to point out, please do so in the comments or directly on twitter @aconomicscomÂ
Disclaimer: I use and love Etoro and Iâve signed up to the affiliate program, some of their links are affiliate links. Also, all material presented in this newsletter are not to be regarded as investment advice, but for general informational purposes only. You are solely responsible for making your own investment decisions. In any case, transparency is paramount so my portfolio can be viewed here.
Links:
ATAI: https://www.atai.life/
The Code Breaker: https://www.simonandschuster.com/books/The-Code-Breaker/Walter-Isaacson/9781982115852