Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

This week began with the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), which reported the number of positions rose 10.1 million in June, outpacing economists’ forecasts of 9.27 million openings, indicating a recovering economy in midst of the pandemic recovery. On Tuesday the Senate passed a $1 trillion dollar infrastructure package 69-30, which appropriated funds for public transit and investments in bridges, clean drinking water and waste water infrastructure, as well as investments in clean energy transmission and EV infrastructure. The bill now moves for consideration in the U.S. House, where it is expected to face a number of changes.The US registered a lower-than-expected monthly increase in the consumer-price index (CPI) in July of 0.5%, after registering 0.9% in June. This calmed investors fearing the Fed would raise rates sooner rather than later, resulting in major indices reaching further highs. The S&P 500 closed at 4,468, near its 52-week high, while the Dow closed at 35,515.38.Earnings season continued, with several Blue Room-covered companies reporting, including:

• ViacomCBS (VIAC)

• Square (SQ)

• Laird Superfood (LSF)

• Disney (DIS)

• AirBnB (ABNB)

• Allogene Therapeutics (ALLO)

• Novavax (NVAX)

Thank you, Blue Room Team Leader OMAR GUZMAN

END OF THE WEEK
— Debrief —

+ ECONOMY +

The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in price changes by producers for domestically produced goods, services and construction. PPIs measure price change from the perspective of the seller.

On an unadjusted basis, the final demand index moved up 7.8% for the 12 months ended in July, the largest advance since 12-month data were first calculated in November 2010.

Prices for final demand less foods, energy, and trade services moved up 0.9 % in July, the largest advance since climbing 1.0 % in January. For the 12 months ended in July, the index for final demand less foods, energy, and trade services rose 6.1%, the largest increase since 12-month data were first calculated in August 2014.

+ General News +

Census - 2020
The United States’ Census Bureau has released the first local-level results from the 2020 Census. State legislatures will likely use the information gathered from the census to redraw congressional, legislative and local district boundaries. It’s been ten years since the last Census Redistricting data was published, and here are some of the notable changes:

• POC Americans represented about 43% of the total population in 2020, which is a sizable change from 34% in 2010. This is a great case for American diversity!

• The adult population has grown about 10%, from 237 million to 261 million with a larger portion of the general population being adults.

• Of course the geographical distribution of U.S. citizens is always interesting; most of the population growth was recorded in metropolitan areas.

• Overall the population grew by 7%.

COVID-19

On Thursday, the FDA moved to allow COVID-19 booster shots to be administered to those with weakened immune systems or with a past organ transplant. Those that fall under those two categories will be eligible to receive a third dose of the Pfizer-BioNTech or Moderna vaccines. The CDC, who has the final say on the matter, followed the FDA’s announcement by approving the motion. Unfortunately, the Jn&J vaccine did not make the cut for the decision.

Thank you Blue Room Analyst IAN CARTER

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THIS WEEK IN
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CRYPTOCURRENCY
__________

__________

Cryptocurrencies have been surging lately, with Ethereum, Bitcoin, and Dogecoin rising 66%, 42%, and 36%, respectively, over the past month. A few recent catalysts for the substantial surges can mainly be attributed to Ethereum’s London upgrade, which allows more transactions and a standard base “gas” fee on the protocol, JPMorgan unveiling access to six different crypto funds for its wealth management clients (interesting because JPMorgan’s CEO, Jamie Diamond, is not a fan of cryptocurrency), and AMC announcing it will be accepting Bitcoin as payment by the end of 2021. These announcements further legitimize the use of cryptocurrency and its ability to be a reliable system for the future.

Ethereum just activated a major change called the 'London hard fork' — here's why it's a big deal

One of the major changes alters the way transaction fees are calculated, ideally smoothing them out and making them less volatile.

JPMorgan to give all wealth clients access to crypto funds - Business Insider

JPMorgan Chase & Co (JPM.N) will allow all of its wealth management clients access to cryptocurrency funds, Business Insider reported on Thursday, citing sources.

AMC will let customers pay in bitcoin by the end of 2021

AMC’s chief executive Adam Aron confirmed that the biggest theater chain in the U.S. is wading into the cryptocurrency quagmire.

Thank you Blue Room Analyst NICK PEART

Novavax is a biotechnology company promoting improved global health through the discovery, development and commercialization of innovative vaccines to prevent serious infectious diseases and address urgent, global health needs. Our vaccine candidates, including both its coronavirus vaccine candidate (“NVX-CoV2373”), and our seasonal quadrivalent influenza vaccine candidate (“NanoFlu™”), are genetically engineered, three-dimensional nanostructures of recombinant proteins critical to disease pathogenesis. We believe that our protein-subunit-based candidates elicit differentiated responses that may be more efficacious than naturally occurring immunity or other vaccine approaches. Additionally, our Matrix-M™ adjuvant has been shown to enhance functional immune responses and has been well-tolerated in multiple clinical trials. To date, we have formulated many of the vaccine candidates in our pipeline with our Matrix-M™ adjuvant, including NVX-CoV2373 and NanoFlu™. Matrix-M™, has been shown to enhance immune responses and has been well-tolerated in multiple clinical trials.

The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in price changes by producers for domestically produced goods, services and construction. PPIs measure price change from the perspective of the seller.

—-

The Producer Price Index for final demand increased 1.0% in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 1.0% in June and  0.8% in May. 

On an unadjusted basis, the final demand index moved up 7.8% for the 12 months ended in July, the largest advance since 12-month data were first calculated in November 2010.

Airbnb, Inc. operates a platform for stays and experiences to guests worldwide. The company’s marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms and luxury villas. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. Airbnb, Inc. was founded in 2007 and is headquartered in San Francisco, California.

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks; Parks, Experiences and Products; Studio Entertainment; and Direct-To-Consumer & International (DTCI). The Media Networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations, radio networks and stations. The Parks, Experiences and Products segment owns and operates The Walt Disney World Resort in Florida; the Disneyland Resort in California; Aulani, a Disney Resort & Spa in Hawaii; the Disney Vacation Club; the Disney Cruise Line; and Adventures by Disney. The Studio Entertainment segment produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings and live stage plays. This segment distributes films primarily under The Walt Disney Pictures, Pixar, Marvel, Lucasfilm and Touchstone banners. The DTCI segment operates international television and networks and direct-to-consumer streaming services. The Walt Disney Company was founded by Walter Elias Disney on October 16, 1923.

“The best way to verify that you are alive is by checking if you like variations. Remember that food would not have a taste if it weren’t for hunger; results are meaningless without effort, joy without sadness, convictions without uncertainty, and an ethical life isn’t so when stripped of personal risks.” 

This is a quote drawn from Nassim Nicholas Taleb’s book Antifragile — a book I would highly recommend. Taleb is a Lebanese-American essayist, scholar, mathematical statistician, former options trader, and risk analyst. He is well known for criticizing the risk management methods used by the finance industry and famously warned of—and profited from—the late-2000s financial crisis.

Thursday
August 12, 2021
12 PM
__________ __________

BLUE ROOM
MEETING NUMBER SIXTY ONE
__________ __________

Welcome Nick!

UPDATES
+ + + +

— QUESTION —

What Advice Would the Future You (Your Future Self) Say In a Conversation with Yourself?

+ Would You Tell Yourself to Do More or Do Less of Something?
+ Would You Take Advice

+ Would You Take Advice From Yourself?

Viacom and CBS Corporation merged initially in 2000, separated in 2006, and merged again in 2019. ViacomCBS Inc. is a global media and entertainment company that offers premium experiences and content for audiences around the world. Its portfolio includes CBS, SHOWTIME, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Smithsonian Channel, Paramount+ (formerly CBS All Access), and Pluto TV, among others. It operates through 3 primary segments: TV Entertainment, Cable Networks, and Filmed Entertainment. TV Entertainment and Cable Networks account for approximately 90% of consolidated revenues, with Filmed Entertainment rounding out the remaining 10%. These segments generate revenue mainly from advertising sales, streaming subscriptions and advertising, content licensing and distribution, affiliate revenues, and from the release/distribution of films.

Square, Inc. was founded in 2009 by Jack Dorsey and is headquartered in San Francisco, California. Together with its subsidiaries, Square creates tools that enable sellers to accept card payments, to provide reporting and analytics, and also next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; contactless and chip reader that accepts Europay, MasterCard and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register, which combines its hardware, point-of-sale software and payments technology; Square Terminal, a payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dop and swipe payments. The company also offers various software products, including Square Point of Sale, Square Appointments, Square for Retail, Square for Restaurants, Square Online, and Square Online Checkouts, Square Invoices, Square Virtual Terminal, Square Team Management, Square Contracts, Square Loyalty, Marketing and Gift Cards, and Square Dashboard. In addition, it offers a developer platform, which includes application programming interfaces and software development kits. Further, the company provides Cash App, which enables users to send, spend and store money; and Weebly, which offers customers website hosting and domain name registration solutions.

///

LAIRD SUPERFOOD

BULLPEN FINANCIAL MODELING

+ Alexander Chang +

+ Minyoung Sohn +

Thursday
August 12, 2021
9:30 AM
__________ __________

BLUE ROOM
Investment Team Bullpen
__________ __________

LSF: Laird Superfood

“Our manifesto is one way we share our culture with the community. It’s an evolving collection of bold thoughts that allow for some real conversations to take place.”

Founded in Vancouver, Canada, in 1998, lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails, yoga-inspired, technical athletic apparel and accessories for women, men, and female youth through company-operated stores and their online marketplace. The company’s core values of personal responsibility, entrepreneurship, honesty, courage, connection, fun and inclusion are at the heart of its company culture. At the end of 2020, we operated 521 stores in 17 countries across the globe.

+++

ATTAINABLE HOUSING

WITH OUR PARTNER

MADELON GROUP

+++

On Thursday Joseph Ruiz, Madelon Group Co-Founder and Chief Creative Officer, provided an update in the Blue Room Weekly Global meeting. They are working on their adaptive reuse project. It is “pretty advanced” and he is very excited because two weeks ago they had the opportunity to test some of the furniture Camille proposed. It was exciting to see the result of that. Previously they had been looking at conceptual renders, but it was nice to finally see their ideas come to life in-person. They also created a 3D walk-through of one of the units so you can see it with actual furniture.

Regarding the Liminal Space project in Denver, they are waiting for the site to close. Separately, they’ve been working with Jeremy, the prefab construction consultant to land on a logical path of how to best accommodate the site. While at the New York prefab factory, while keeping the Denver project in mind, they discovered it does make a difference if you position the same module either horizontally or vertically because of wind considerations. The constructional logic of the project has to be slightly revised which was something he had not originally accounted for.

Joseph mentioned it is very important to ensure efficiency around the construction of the prefabricated modules. They have been working with Kevin, the architect of record for the Denver project, who is very comfortable with what they’re doing. He provided good news on Wednesday, stating that “we won't need to include a transformer in the building, which is something that would take up a lot of space—it would have been a challenge to accommodate that. Instead, we can connect to something in the street.”

The latest on the project is that we're waiting to acquire the site. He thinks we're very close— during due diligence something came up that he thinks isn't anything that can't be resolved and can actually work to our advantage, and will provide more updates on this soon.

Hello, my name is Kendall Smart and I have the pleasure of being an intern this summer at Blue Room Investing. I was originally born in Chicago, Illinois but have grown up in Denver, Colorado. I am the eldest girl in a huge blended-family totaling 11 siblings with three full and three step-siblings on either parent’s side and two baby half-sisters. This fall I will be entering into my freshman year at Northwestern University. Though it may be premature to state my major given I have yet to enter a college classroom, I would like to study Computer Science and Economics. After planning to merely attempt one trimester-long elective of Computer Science at the end of my freshman year of high school, I wound up taking full-year courses the following three years and coding in Python, JavaScript and primarily Java. I’d tapped into an interest in not only programming itself, but learning about the presence of bias in algorithms and how what I consume through my screen each day is shaping who I am as a person. Now I am sure Computer Science will be in my life in some form moving forward. I’ve only taken one Economics class, but I am also drawn to this field because of the emphasis on problem-solving skills and it’s importance in understanding more deeply about the structure of society and decision-making. Overall, I am eager to push myself to new heights in my future academic endeavors, whatever they may be. Outside of academics, I played competitive lacrosse all throughout middle and high school, and I have always loved being part of such a close-knit team. Also, my high school team at Colorado Academy won the state championship my freshman, junior and senior years – sophomore season was lost to COVID – and being in that program was an amazing experience that taught me discipline and what true teamwork means. In high school I also played field hockey and swam for a season, which I did not particularly enjoy, but was very useful for when I decided to do the Boulder sprint triathlon a couple summers ago. I love being active outdoors so skiing and hiking are some of my favorite activities. I also was a member of the philanthropy board, tasked with allocating donation funds to a non-profit organization each year, as well as being an online math tutor for kids through the Horizon’s program. I hope to participate in some similar activities in college, and also experiment with new experiences and interests. I admire Blue Room’s focus on sustainability and social good in addition to financial returns, and I am so thankful to be working here this summer. I am currently covering Macerich, a Real Estate Investment Trust based in California that owns, operates and develops major retail shopping centers throughout the United States. Coming in with no experience, I feel like I have learned so much from the team and hope to use these skills in the future. Most of all I have enjoyed getting to know the people who work here because it is such a kind and welcoming community. 

As some of you may know, I host a podcast with two of my former classmates called The Garden, an ode to our home state of New Jersey. A little over a month ago we decided that we wanted to have an in person pop-up event where we could sell clothes and merchandise and invite some of our other friends who have brands and make art. We brainstormed and came up with The Garden Arts & Design Showcase and set the date for Saturday, August 7. Unfortunately, we quickly came to realize that hosting a live event is way more involved than simply posting a flyer on social media and telling people to show up. We had to go through the process of reaching out to vendors, finding locations, finding rental equipment – the whole nine.

Allogene Therapeutics is a clinical stage biotechnology company leading the development of allogeneic chimeric antigen receptor T cell (AlloCAR TTM) therapies for cancer. Led by a management team with significant experience in cell therapy, we are developing a pipeline of “off-the-shelf” CAR T cell therapy candidates with the goal of delivering readily available cell therapy faster, more reliably, and at greater scale to more patients.

+++

THIS WEEK’S

UPDATE

===

— DRY STORAGE —

As usual, Chef Kelly Whitaker stays busy this week with new mill updates, an upcoming europe trip, and future project work in the San Luis Valley. As harvest time approaches, the winter grains are getting taken off and the sonora wheat will start getting pulled in the next few weeks. For those of us unfamiliar with the farming schedule, the grains are planted two different times during the year but harvested once per year. In addition, the Id Est Hospitality Group restaurants (The Wolf’s Taylor, Brutø, Basta, and Dry Storage) stay up and running despite the uncertainty of the Delta Variant of the coronavirus. 

Chef Whitaker will be traveling to Copenhagen next week to engage in food pop-ups, and form connections with the MAD Academy. The word “mad” in Danish means food, and the MAD Academy is a Copenhagen-based educational institution that “equips students from the hospitality community with the knowledge, tools and inspiration to effect positive change in their professional lives and in the world.” The school is based on food sustainability and they offer different courses for hospitality professionals in environmentally-friendly approaches to leadership and management. Chef Whitaker will be working with them all week and helping with some different fermentation labs. To learn more about the MAD academy you can visit : MAD.

Lastly, a sneak peak at an upcoming project that will be taking place this fall: Mark Faclone, a successful property developed based in Denver, has acquired an old drive-in theater in the San Luis Valley, and Chef Whitaker plans to work with him to put their own spin on the building as well as plan events down there with various artists and more. More details about this project to come, as well as the new mill going into the harvest season for the sonora wheat.

>>>
THIS ONE GOES OUT TO ALEXANDER CHANG
>>>

ANSWERS TO THE
BLUE ROOM POLL

HAVE YOU WATCHED SPACE JAM 2?

25%

75%

AND IF SO

WOULD YOU WATCH IT AGAIN?

10%

90%

THANK YOU FOR YOUR RESPONSES!

P L E A S E E N J O Y T H E

—WEEKLY—

company updates
from the BR intern team.

Caroline Burnham

Ticker: ALLO
Name: Allogene Therapeutics
Number of Shares Outstanding: 141.5M
Market Capitalization: $3.014B

Stock Price History: 

August 2, 2021 $22.59

August 3, 2021 $21.93

August 4, 2021 $22.13

August 5, 2021 $23.73

August 6, 2021 $23.40

August 9, 2021 $22.63

August 10, 2021 $22.03

August 11, 2021 $21.25

August 12, 2021 $21.17

August 13, 2021 $21.70

Allogene Therapeutics Company Update

Allogene Therapeutics is a biotechnology company currently developing allogeneic CAR T cell product candidates for the treatment of various cancers. Many of their products have been granted special designations by the FDA due to its inherently novel platform as well as the pressing need for these treatments. On August 12, 2021, ALLO-715, Allogene Therapeutics’ product candidate for BCMA-positive malignancies, particularly relapsed/refractory multiple myeloma, was granted Orphan Drug Designation (ODD) by the FDA. This allows for tax credits for clinical testing, prescription drug user fee exemptions, and seven year marketing exclusivity in the event of regulatory approval. Additionally, ALLO-715 was previously granted Regenerative Medicine Advanced Therapy (RMAT) designation in April 2021. This provides expedited development and review processes for ALLO-715. These two designations in tandem allow ALLO-715 an extremely streamlined path to FDA approval. Additionally, they confirm the unmet need that ALLO-715 would bridge. The next update from the UNIVERSAL trial in which ALLO-715 is being tested against relapsed/refractory multiple myeloma is slated for late 2021. In response to the news of ALLO-715’s ODD by the FDA, $ALLO has been down $0.08 (-0.38%), slowing its decline in price over the week of August 9.

Jackson Blaufeld

Ticker: QCOM
Name: Qualcomm, Inc.
Number of Shares Outstanding: 1.13B
Market Capitalization: $168.6B

Stock Price History:

August 2, 2021: $148.86

August 3, 2021: $147.95

August 4, 2021: $148.22

August 5, 2021: $146.83

August 6, 2021: $146.28

August 9, 2021: $146.92

August 10, 2021: $145.87

August 11, 2021: $146.68

August 12, 2021: $147.15

August 13, 2021: $148.38

Qualcomm, Inc. Executive Summary

Last week, Qualcomm offered to buy automotive technology company Veoneer, which has now engaged in takeover discussions with Qualcomm. By successfully acquiring Veoneer, Qualcomm would expand its reach beyond smartphones and continue to grow its automotive business. Qualcomm has started its own line of advanced driver assistance systems (ADAS), called Snapdragon Ride, and has been working with Veoneer on software development for quite some time.

Veoneer is not profitable yet, but does have net sales of $1.37 billion. Its key customers are Daimler, Hyundai, Kia and Ford. There are large growth opportunities in the ADAS market, as the company expects more than 90% of the market to be available for ADAS systems in the next decade.

In other news, Qualcomm has partnered with Spoke to introduce C-V2X (vehicle-to-everything) technology to cyclists. This technology will allow for vehicles to talk to infrastructure, pedestrians and cyclists, as well as each other. This technology does not require a carrier network, as short messages are sent peer-to-peer between vehicles, road side units and bicycles with information about speed, trajectory and location. Scope Safety, in partnership with Qualcomm, will be the first company to bring C-V2X to bicycles and scooters.

Ticker: WORK
Name: Workday
Number of Shares Outstanding: 189M
Market Capitalization: $58.487B

Stock Price History:

July 26, 2021 $238.61

July 27, 2021 $230.66

July 28, 2021 $234.39

July 29, 2021 $235.25

July 30, 2021 $234.40

Aug 02, 2021 $233.65

Aug 03. 2021 $235.36

Aug 04, 2021 $232.23

Aug 05, 2021 $236.00

Aug 06, 2021 $235.72

Workday Announces Date of Fiscal 2022 Second Quarter Financial Results:

On August 05, 2021, Workday, Inc. announced their date of Fiscal 2022 Second Quarter Financial Results. They plan to announce their second quarter results on August 26, 2021 after market close. Workday will also be hosting a conference call at 2:30 p.m Mountain Time / 4:30 p.m Eastern Time, where they’ll review their financial results and business outlook. Furthermore, Workday will be providing a live webcast on their investor relations website that will be available for a minimum of 90 days after the conference call. 

Workday’s future outlook remains positive. Despite ending a contract with Amazon in late July, Prospectus for Workday remains high and positive. Despite having their stock price tumble in late July, Workday has been able to recuperate the lost share price, and is trading nearly at the same price. As demand for Cloud based software continues to increase, Workday is leading the pack with the most versatility. As Workday continues to pioneer through the adversities presented by the pandmeic, their competitors Oracle (ORCL) and Ceridian (CDAY) lag behind in innovation. Workday has successfully entered the mid-sized markets from HCMs, which introduces a plethora of new opportunities they can capitalize on. As working from home becomes the new norm, and companies continue to increase their IT budgets. Workday will remain busy attracting and catering to these new companies. The market is expected to stay strong for the next 12-18 months for private and midsized companies. Recent projections indicate that worldwide IT spending will grow 8.6% this year, far greater than the less than 1% growth in 2020. 

Lisa Wong

Ticker: TGX
Name: 10x Genomics, Inc. 
Number of Shares Outstanding:87.27M
Market Capitalization: $20.855B

Stock Price History: 

August 2, 2021: $178.24

August 3, 2021: $178.55

August 4, 2021: $184.82

August 5, 2021: $175.26

August 6, 2021: $170.97

August 9, 2021: $172.71

August 10, 2021: $164.77

August 11, 2021 $161.41

August 12, 2021 $161.21

August 13, 2021 $160.28

10x Genomics, Inc. Company Update

10x Genomics is a biotechnology company focused on producing genetic sequencing technology. A leader in the single-cell sequencing industry, its pioneering Chromium and Visium products and technologies have won numerous scientific accolades and helped to further societal understanding of biological structures. Chromium products allow for detailed analysis of hundreds of thousands of cells and biological units. Visium products are centered around spatial transcriptomics, which is genetic sequencing that uses detailed spatial resolution. Visium Spatial products therefore ensure greater understanding of biological units within the context of larger functional systems and processes. 

At the recent UBS Genomics 2.0 and MedTech Innovations Summit, 10x Genomics discussed its recent financial earnings and future plans. Notably, TXG mentioned its efforts to increase its support staff to ensure a faster ramp and onboarding process for installed instrument bases. CEO Serge Saxonov also discussed the company’s total addressable market and estimated that their current penetration of a few thousand labs compared to the overall 100,000 labs makes them well-positioned to grow. Additionally, Saxonov mentioned the company’s biopharma opportunity, given that TXG has mostly concentrated its efforts in the academic research field.

Melanie Gong

Ticker: CMCSA
Name: Comcast Corporation
Number of Shares Outstanding: 4.58B 
Market Capitalization: $269.68B

Stock Price History:

August 2 $58.47

August 3 $58.23

August 4 $57.97

August 5 $58.34

August 6 $58.69

August 9 $58.28

August 10 $58.45

August 11 $59.09

August 12 $59.05

August 13 $59.18

Comcast Corporation Company Update

Comcast Corporation is a media, entertainment and communications company providing video, internet and phone services. The company was founded by Ralph J. Roberts in 1963 and is headquartered in Philadelphia, Pennsylvania. Segments Comcast operates include Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks and Sky. The Cable Communications segment provides video, Internet, voice and security services through Xfinity. The Cable Networks segment consists of national and international cable networks, regional sports, news networks and cable television studio production operations. The Broadcast Television segment includes NBC and Telemundo broadcast networks. The Filmed Entertainment segment is involved in the production, acquisition, marketing and distribution of filmed entertainment. The Theme Parks segment manages Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. Finally, the Sky segment consists of Sky, one of Europe's largest B2C entertainment companies providing video, internet, voice and wireless phone services.

This week, Comcast announced that Xfinity Mobile will be carrying the new Samsung Galaxy Z Fold3 5G and Galaxy Z Flip3 5G at Samsung Unpacked. Customers adding a new line and porting a new number can receive $400 off these new devices, and Xfinity Mobile customers who add these devices to their existing line will receive a $400 Visa prepaid card. Samsung is building a foldable device equipped with IPX8 water resistance and with the strongest aluminum on any Galaxy smartphone--Armor Aluminum. Xfinity Mobile customers can preorder the Samsung Galaxy Z Fold3 5G and Galaxy Z Flip3 5G on XfinityMobile.com in advance starting August 27th. 

Elias Haynes

Ticker: RGLD
Name: Royal Gold 
Number of Shares Outstanding: 65.6M
Market Capitalization: 7.67B

Stock Price History: 

July 23, 2021: $115.71

July 26, 2021: $116.64

July 27, 2021: $117.30

July 28, 2021: $117.39

July 29, 2021: $120.45

July 30, 2021: $120.96

August 2, 2021: $121.47

August 3, 2021: $120.39

August 4, 2021: $121.94

August 5, 2021: $118.45

Royal Gold, Inc Executive Summary

Royal Gold is a Denver-based alternative mine financing company focused on acquiring and managing precious metals royalties and streams that seeks to provide investors exposure to precious metals with lower levels of risk. Royal Gold owns interests in 187 properties on five continents, including interests in 41 production stage mines and 16 development stage projects. Managed by a team with extensive experience in the mining industry, Royal Gold has a longstanding reputation for diligence that has rendered it among the three largest precious metal streaming and royalty companies – which together control approximately 80% of the total value of streaming and royalty contracts. Royal Gold has established itself as a partner of choice for mining operators and a frontrunner in a space offering alternative forms of financing to mining companies. Royal Gold also adheres to sound ESG practices, taking time to contribute to the environment and local communities.

Alternative mine financing accounts for only 1-3% of global debt and equity mine financing. Streaming and royalty agreements present much more attractive terms for mine operators than traditional debt and equity financing. Oftentimes, stream and royalty agreements have a longer payment period, no fixed obligations in cash, present less risk during periods of lower prices, have limited restrictions on the use of cash, have no debt covenants to maintain, share production and operational risks across the value chain, and are less dilutive. According to an article from McKinsey, the alternative mine financing space grew from roughly $2.1 billion in 2010 to $15 billion in 2019. As this alternative form of financing becomes more recognizable to markets outside of North and South America, I would expect a continuation of growth in the sector – which bodes well for Royal Gold as a top contender in the space. 

Joe Kramer

Ticker: VIAC
Name: ViacomCBS inc.
Number of Shares Outstanding: 605.6M
Market Capitalization: $26.3B

Weekly Stock Price History:

August 2, 2021 $40.84

August 3, 2021 $38.47

August 4, 2021 $38.79

August 5, 2021 $41.55

(Earnings release - up 7%)

August 6, 2021 $41.50 

August 9, 2021 $40.29

August 10, 2021 $40.72

August 11, 2021 $40.82

August 12, 2021 $39.96

August 13, 2021 $39.16

ViacomCBS inc. Executive Summary

Viacom and CBS Corporation merged initially in 2000, separated in 2006, and merged again in 2019. ViacomCBS Inc. is a global media and entertainment company that offers premium experiences and content for audiences around the world. Its portfolio includes CBS, SHOWTIME, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Smithsonian Channel, Paramount+ (formerly CBS All Access), and Pluto TV, among others. It operates through 3 primary segments: TV Entertainment, Cable Networks, and Filmed Entertainment. TV Entertainment and Cable Networks account for approximately 90% of consolidated revenues, with Filmed Entertainment rounding out the remaining 10%. These segments generate revenue mainly from advertising sales, streaming subscriptions and advertising, content licensing and distribution, affiliate revenues, and from the release/distribution of films.

Clearly ViacomCBS is planning to fight the streaming battle through the release of high quality, original content. This is certainly no easy task, but considering they run one of the more successful TV production studios, it seems like a viable strategy. I wrote a piece last week about whether or not I’d buy it and said I’d check back after it released earnings. Although there are some major players in the streaming space, I think there’s certainly value in ViacomCBS given its massive and growing array of content and its valuable sports rights that draw advertisers in year after year. I’d buy them now and could see them getting up to around $50-$53 in the coming months. 

Lexi Linafelter

Ticker: SQ
Name: Square, Inc.
Number of Shares Outstanding: 392M
Market Capitalization: $123.14B

Weekly Stock Price History:

August 2, 2021 $272.38

August 3, 2021 $269.49

August 4, 2021 $266.42

August 5, 2021 $281.81

August 6, 2021 $275.10

August 9, 2021 $279.73

August 10, 2021 $273.08

August 11, 2021 $271.09

August 12, 2021 $268.59

August 13, 2021 $267.88

Square, Inc. was founded in 2009 by Jack Dorsey and is headquartered in San Francisco, California. Together with its subsidiaries, Square creates tools that enable sellers to accept card payments, to provide reporting and analytics, and also next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; contactless and chip reader that accepts Europay, MasterCard and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register, which combines its hardware, point-of-sale software and payments technology; Square Terminal, a payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dop and swipe payments. The company also offers various software products, including Square Point of Sale, Square Appointments, Square for Retail, Square for Restaurants, Square Online, and Square Online Checkouts, Square Invoices, Square Virtual Terminal, Square Team Management, Square Contracts, Square Loyalty, Marketing and Gift Cards, and Square Dashboard. In addition, it offers a developer platform, which includes application programming interfaces and software development kits. Further, the company provides Cash App, which enables users to send, spend and store money; and Weebly, which offers customers website hosting and domain name registration solutions.

Julia Martin

Ticker: TSLA
Name: Tesla, Inc.
Number of Shares Outstanding: 990.01 M 
Market Capitalization: $639.208B

Stock Price History:

August 2, 2021 $709.67

August 3, 2021 $709.74

August 4, 2021 $710.92

August 5, 2021 $714.63

August 6, 2021 $699.10

August 9, 2021 $713.76

August 10, 2021 $709.99

August 11, 2021 $707.82 

August 12, 2021 $717.17

August 13, 2021 $722.25

Tesla, Inc., produces electric vehicles and clean energy generation, storage and consumption solutions. Tesla is focused on accelerating the integration of clean energy transportation and production into society in order to more quickly achieve a zero-emission future. Additionally, all of the new automotive products include self-driving capabilities, and continuing to develop this Autopilot capability is at the core of Tesla. 

Critics have noted that Tesla’s numbers for demand in China have dipped in the past month, arguing that Tesla overbuilt themselves in China and are now being sidelined by the competition. While Tesla’s competitors are experiencing strong sales in China, Tesla’s lower numbers are not a reflection of their competition. Rather, the previously higher numbers were boosted because it included both demand in China as well as exports. Thus, this dip actually attests to the success of developing the Shanghai Gigafactory as a global, export factory in addition to serving the Chinese market. Investors are aware that the change in reported numbers is not something to cause alarm as Tesla’s stock price has remained steadily high. 

In other news, the Cybertruck’s release date is delayed until 2022 as engineers have only recently finalized the truck’s dimensions and design. However, this should not come as a surprise as Tesla is notorious for having to delay promised release dates.

Maxwell McIntosh

Ticker: ROKU
Name: Roku
Number of Shares Outstanding: 115.2 M
Market Capitalization: $59.527B

Stock Price History:

August 2, 2021 $421.37

August 3, 2021 $417.80

August 4, 2021 $420.32

August 5, 2021 $403.38
← Post Earnings Share Price

August 6, 2021 $398.47

August 9, 2021 $397.73

August 10, 2021 $379.26

August 11, 2021 $369.21

August 12, 2021 $369.52

August 13, 2021 $357.59

Roku Company Update

Roku, Inc. prides itself on pioneering the bringing the consumer streaming experience to fruition. The TV streaming platform utilizes the Roku Operating System, Roku OS, to provide consumers with on demand access to movies and television episodes, as well as, live sports, music, news and more. Roku also partners with television brand partners that manufacture Roku TV sets built to run on Roku OS. This allows the company to offer Roku branded products within a wide range of price points lowering the barrier of entry for consumers interested in the technology. As a complement to Roku OS and Roku TV, the company additionally offers Roku Smart Soundbars and Streambars that improve a user's auditory experience. The company hopes to capitalize on the growing amount of streaming hours by consumers worldwide and are looking for avenues to monetize user activity. Possible streams of revenue they hope to explore include video advertising, brand sponsorships and subscription services among others.

Mary Kate McIntyre

Ticker: NVDA
Name: Nvidia Corporation
Number of Shares Outstanding: 2.49B
Market Capitalization: $505.2B

Stock Price History 

August 2, 2021 $197.50

August 3, 2021 $198.15

August 4, 2021 $202.74

August 5, 2021 $206.37

August 6, 2021 $203.66

August 9, 2021 $202.95

August 10, 2021 $199.36

August 11, 2021 $196.99

August 12, 2021 $198.82

August 13, 2021 $201.88

NVIDIA Corporation Executive Summary

Early this week, Nvidia announced a major expansion of the Omniverse, a 3D designing and simulation platform that makes it possible for engineers to work together in real time across different applications in a virtual world, or “metaverse”.  The creations on the metaverse, often called “digital twins”, can include anything from architectural buildings to new engineering products and are meant to be taken into the physical world after they have been perfected through multiple iterations of editing in the omniverse.

In fact, the 2021 GTC presentation, in which Jensen Huang was keynote speaker, was created by the Omniverse platform, with digital versions of Huang, moving models of Nvidia products, and completely virtual backgrounds that were designed and presented through the Omniverse. The collaborative environment of Omniverse dramatically increased the speed at which the GTC presentation was finalized. The tangible success of the Omniverse is an example of how Nvidia is a pioneer in the AI arena. John Peddie, noted author and market researcher states, “Lots of companies are, and have been, talking about the metaverse, but NVIDIA is one of the few that is actually delivering on its promise”. 

The key to the adoption of Omniverse in different industries is Universal Scene Description (USD), which allows large teams to work simultaneously across multiple devices and applications. NVIDIA announced its contribution of USD to Blender, Nvidia partner and world's leading open-source 3D animation tool. This collaboration will enable anyone who uses Blender software, from individuals to enterprises, to access Omniverse and create their own designs.  Nvidia Omniverse Enterprise is currently in limited early access, but will be available later on a subscription basis. 

Naia Morse

Ticker: LULU
Name: lululemon athletica, inc.
Market Capitalization: $49.224B
Shares Outstanding: 124.95M

Stock Price History:

August 2, 2021 $402.65

August 3, 2021 $407.51

August 4, 2021 $410.47

August 5, 2021 $414.39
all time high

August 6, 2021 $408.52

August 9, 2021 $407.64

August 10, 2021 $405.87

August 11, 2021 $408.82

August 12, 2021 $408.91

August 13, 2021 $408.72

lululemon athletica, inc.

Founded in Vancouver, Canada, in 1998, lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails, yoga-inspired, technical athletic apparel and accessories for women, men, and female youth through company-operated stores and their online marketplace. The company’s core values of personal responsibility, entrepreneurship, honesty, courage, connection, fun and inclusion are at the heart of its company culture. At the end of 2020, we operated 521 stores in 17 countries across the globe.

Kendall Smart

Ticker: MAC
Name: Macerich
Number of Shares Outstanding: 206.52M
Market Capitalization: 3.647B

Stock Price History:

August 2, 2021 $16.15

August 3, 2021 $16.45

August 4, 2021 $15.58

August 5, 2021 $16.61

August 6, 2021 $16.84

August 9, 2021 $16.84

August 10, 2021 $17.00

August 11, 2021 $17.15

August 12, 2021 $16.99

August 13, 2021 $16.86

Macerich: Company Update (7/17/21)

Macerich is a self-administered and self-managed real estate investment trust (REIT) that is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and/or community/power shopping centers. It owns around 50 million square feet of real estate, consisting mainly of interests in its 46 regional shopping centers. It specializes in retail properties in the country’s most attractive, densely populated markets, with a strong presence on the west coast, Arizona and the metro New York to Washington DC corridor. Macerich is also a recognized leader in sustainability, achieving the #1 GRESB ranking in the North American Retail Sector for six consecutive years (2015-20). The redevelopment of one of Macerich’s properties Paradise Valley Mall has recently begun with the demolition phase, as of July 8 (Source: KTar News in Phoenix). The former Sears store is one of the first to begin destruction, and the only stores still operating currently are JC Penney and Costco. In connection with closures and lease rejections of several Sears stores owned or partially owned in various Macerich properties, the company anticipates spending between $130 and $160 million at Macerich’s pro rata share to redevelop the Sears stores. The estimated range of redevelopment costs could increase if the company or its joint venture decides to expand the overall scope of redevelopments. On another note, Macerich announced that its second quarter 2021 earnings results will be released before market open on Wednesday, August 4, and management will hold a conference call at 10:00 a.m. Pacific Time on that day to discuss the quarterly results. These results will be important to analyze revenues given the re-opened properties and continually decreasing COVID-19 restrictions in comparison to the 2020 results.

David Kogan

Ticker: NXPI
Name: NXP Semiconductors
Number of Shares Outstanding: 275M
Market Capitalization: $56.1B as of 6/24/2021

Stock Price History:

August 13, 2021: $215.11

August 12, 2021: $214.53

August 11, 2021: $218.42

August 10, 2021: $217.26

August 9, 2021: $217.11

August 6, 2021: $213.75

August 5, 2021: $212.90

August 4, 2021: $212.43

August 3, 2021: $210.53

August 2, 2021 $208.98

NXP Semiconductors Executive Summary

NXP Semiconductors is a global semiconductor company and a long-standing supplier in the industry. In addition to supplying chips, NXP manufactures and designs its own multichip modules, electronic products and software for its chips. The company has a combined portfolio of intellectual property, deep application knowledge, process technology and manufacturing expertise in cryptography, high-speed interface, radio frequency, mixed-signal analog-digital, power management, digital signal processing and embedded system design. End-market applications include Automotives, Industrial and IoT, Mobile, and Communication Infrastructure.

On August 5, President Joe Biden signed an executive order that demands that 50% of all new motor vehicles manufactured after 2030 have to be electric. Aside from being a good sign for the future of global emissions from the U.S, this is also good news for NXP. EV’s compared to regular diesel cars require twice as much semiconductor content, implying that the potential addressable market for automotive semiconductors should grow substantially in the long term. Therefore, the question will be is NXP capable of capturing a larger piece of this expanding market. In my opinion, I believe that it is possible given NXP’s reputation and brand loyalty among customers, but even if NXP maintains their market share they will still see revenue growth in the automotive sector which is in recent years their fastest growing source of revenue outside of their historic core revenue drivers.

Alex Chang

Ticker: LSF
Name: Laird Superfood, Inc.
Number of Shares Outstanding:  8.99M

Stock Price History:

August 2, 2021: $26.67

August 3, 2021: $25.46

August 4, 2021: $23.81

August 5, 2021: $24.15

August 6, 2021: $23.91

August 9, 2021: $25.06

August 10, 2021: $24.46

August 11, 2021: $24.66

August 12, 2021: $19.93

August 13, 2021: $21.49

Laird Superfood, Inc. Company update

Laird Superfood, Inc., co-founded by famous big wave surfer Laird Hamilton, is a producer of plant-based food products ranging from plant-based coffee creamers in powdered and liquid form, coffee blends, hydration energy drink mixes, and snacks, which are functional, nutritious, delicious, and sustainably sourced. The company, based in Sisters, Oregon, went public in September of 2020. Laird Superfood’s commitment to social and environmental justice manifests in the form of their Ohana Cares program, with a number of initiatives such as fighting food insecurity and reducing the environmental impact and greenhouse gas emissions of their operations.

On Wednesday of this week, Laird Superfood released their Q2 2021 earnings, along with the sudden announcement that CEO Paul Hodge would be stepping down. In spite of an increase in net sales to $9.2 million, which represents 64% year-on-year growth and an increase from the previous quarter’s figure of $7.4 million, this is accounted for almost chiefly by revenues from Laird Superfood’s acquisition of Picky Bars, their new revenue stream of harvest snacks.

Sales of coffee creamers, hydration/beverage enhancing supplements, and coffee/tea/hot chocolate products all experienced either near-negligible growth or decreases from the previous quarter. Sales of coffee creamers, Laird Superfoods’ signature product, increased by a paltry 1.13% from Q1 2021, from $5.02 million to $5.08 million. Hydration/beverage supplement sales did see an increase of 54% from $1.06 million to $1.51 million, but coffee/tea/hot chocolate sales decreased by 12.6% from $1.90 million to $1.66 million.

Further compounding these lackluster sales results was the news that the launch of Laird Superfood’s shelf-stable liquid creamer, initially planned for Q3 2021, would be delayed to at least 2022, due to the co-packer’s inability to meet both delivery and quality demands. The company’s previous earnings calls cited the launch of this product as a key reason for optimism regarding Laird Superfood’s growth prospects in the latter half of 2021.

Logan Chang

Ticker: ATVI
Name: Activision Blizzard, Inc. 
Number of Shares Outstanding:777.02M
Market Capitalization: $64.11B

Stock Price History: 

August 2, 2021: $82.76

August 3, 2021: $79.83

August 4, 2021: $81.52

August 5, 2021: $80.32

August 6, 2021: $82.43

August 9, 2021: $81.41

August 10, 2021: $82.99

August 11, 2021: $85.00

August 12, 2021: $85.17

August 13, 2021: $83.85

Activision Blizzard Company Update: What’s Next for the Call of Duty Creator and CEO Bobby Kotick?

The State Department of California’s sexual discrimination and harassment lawsuit against Activision Blizzard has had significant immediate ramifications on the company. Former Blizzard president, J. Allen Brack, and former president of corporate affairs, Frances Townsend, have both stepped down in light of the lawsuit. Hundreds of employees staged a walkout last Wednesday, demanding greater pay transparency and a “dramatic change to improve conditions for employees at the company, especially women.” The brunt of the lawsuit’s animosity falls on the shoulders of Activision Blizzard CEO Bobby Kotick. Although Kotick already issued a formal apology for the company’s initial response to the lawsuit’s details, Kotick and the company are far from out of the woods.

The gaming industry—and tech at large—have faced accusations of sexism, racism, and a lack of diversity for years. Former Reddit interim CEO Ellen Pao filed a discrimination lawsuit against Silicon Valley VC firm Kleiner Perkins in 2015, bringing long-swirling allegations of sexism in Silicon Valley front and center in the public domain. Uber suffered similar accusations of “rampant sexism” at the company in 2017, causing then-CEO Travis Kalanick to resign. Spurred on by the California lawsuit and its aftermath, several employees across the gaming industry are now speaking out about sexual harassment, pay disparities, and other aspects of the culture. All eyes will now be on how Activision Blizzard's leadership, and Kotick in particular, handles the situation and whether it faces more consequences or changes beyond the announcement of Brack’s and Townsend’s departure. 

So far, in Activision Blizzard's case, there has been no explicit demand for the typical next step in corporate scandals: the resignation of the CEO. Under Kotick's leadership, Activision Blizzard has grown into one of the world's biggest gaming companies, with revenue of $2.3 billion last quarter and more than 9,500 employees worldwide. But, Kotick was the center of a controversial say-on-pay proposal earlier this year, earning only 54% shareholder approval after adjourning the initial vote on his over $155 million compensation package. However the situation shakes out, Kotick will find the enormous public pressure—in addition to the pressure from California's investigation itself—impossible to ignore. And much of that comes down to how empowered employees feel to voice their opinions and their discontent.

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