Panic Shopping; Tesla Goes Big in China

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Friday Four Play: The “Panic Shopping” Edition

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So, you’ve got all your holiday shopping finished, do you?

Bully for you.

However, there are still millions of shoppers out there who have yet to find that perfect gift. There are only four more days until Christmas! What’s a panicky last-minute shopper to do?

Well, if there’s one thing capitalism is good for, it’s giving you a way to spend your hard-earned dollars as conveniently as possible.

Enter “Super Saturday,” the last-minute shopping holiday that should honestly be devoted to St. Expedite, the patron saint of procrastination. (I kid you not, this is a real saint.)

According to the National Retail Federation, some 147.8 million shoppers will descend on retailers this weekend looking for last-minute deals. Such a turnout puts Super Saturday in league with Black Friday in terms of crowd size and potential dollars spent.

Federation president and CEO Matthew Shay is expecting an “impressive turnout by procrastinators” this year due to the shortened time between Thanksgiving and Christmas.

So, struggling retailers and procrastinating shoppers, this is your last chance of the decade to make it big.

But, Mr. Great Stuff, what if I’m shopping for a discerning investor … one looking for the secret to life-changing wealth?

First, that’s quite a specific request, dear reader … I now know why you waited until the last minute to find a gift.

Second, you know Great Stuff has you covered!

In his new book — you know, those things  made with paper and printed words that you find in libraries? — Banyan Hill expert Paul Mampilly reveals his No. 1 investment secret to life-changing wealth.

What a coincidence, right? It’s like I read your mind!

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Give us the name of the book already!

I’ll do you one better. I’ll give you the name and the book … free! (All you have to do is pay for shipping.)

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And now for something completely different, here’s your Friday Four Play:

No. 1: Big in China

We all know about the economic slowdown plaguing China right now. Manufacturing is down. Orders are down. Auto sales are down.

But Tesla Inc. (Nasdaq: TSLA) is having none of that. November registrations for new vehicles in China soared 14-fold year over year, with 5,597 of those registrations going to Tesla cars.

This is big news for the U.S. electric vehicle (EV) maker — it just dropped billions on a new Gigafactory in Shanghai. It was a bold move, especially considering that EV sales are in a five-month slump in China. China also makes up half the world’s EV purchases and is Tesla’s second-largest market outside of the U.S.

For Tesla bulls, the news couldn’t be better. The stock is up more than 25% so far this month and has more than doubled off its May 28 low.

For Tesla bears … I’ve got nothing. Good luck with those short positions.

No. 2: Billion-Dollar Jordans

Nike Inc. (NYSE: NKE) got game.

The athletic apparel maker reported blowout quarterly earnings last night, riding the coattails of NBA G.O.A.T. Michael Jordan. Earnings beat expectations by $0.12 per share on revenue of $10.33 billion, which topped the consensus target of $10.09 in sales.

Nike said its Jordan brand topped $1 billion in revenue on the quarter for the first time ever. It’s gotta be the shoes, money!

Still, Nike shares are trading about 1.5% lower today due to weakness stateside. North American sales rose 5.3% to $3.98 billion, missing expectations for $4 billion. Gross margins also rose less than expected on the quarter.

But there’s good news for Nike bulls. The company blamed tariffs for higher prices, which impacted U.S. sales. Now that those tariffs are rolling back, there’s nothing stopping Nike bulls from driving the lane.

Buying today’s pullback looks like an easy layup for anyone looking to add NKE to their portfolio.

No. 3: U.S. Steel’s Pocketful of Kryptonite

It seems no amount of import protections and tariffs could save U.S. Steel Corp. (NYSE: X) from melting down.

The company of steel warned of a fourth-quarter loss, slashed its dividend and announced it was laying off more than 1,500 workers at its Great Lakes Works plant near Detroit. U.S. Steel expects to post a loss of $1.15 per share and will cut its dividend to just a penny from $0.05 per share previously.

As for U.S. Steel’s Great Lakes Works 1,500 employees, at least it’s not a subscription to the Jelly of the Month Club. The layoffs start with the iron and steel makers and begin in April before rolling out facilitywide by the end of 2020.

That said, analysts are viewing this debacle as a positive. Analysts at Jefferies said: “We see the shuttering of U.S. flat-rolled steelmaking capacity as a broader incremental positive for the domestic industry into 2020 and beyond given the numerous expansions planned by peers.”

So, U.S. Steel losing while its competitors expand is a good thing?

Well, not for U.S. Steel or its investors, it seems. I’m wondering if any of those soon-to-be-laid-off employees have a Cousin Eddie.

No. 4: Beyond Beyond Meat

So, you think Beyond Meat Inc. (Nasdaq: BYND) is the only meatless game in town? Think again, son.

Conagra Brands Inc. (NYSE: CAG) has ramped up the pressure on meat-alternative products, leading the company to its first revenue beat in two and a half years.

Let’s lay down some numbers. Earnings topped by $0.06 per share. Sales rose 18.3% to $2.82 billion, besting the consensus by $20 million. CEO Sean Connolly (not Connery … yeah, I was disappointed too) cited “on-trend innovation” for much of Conagra’s growth. That’s fancy industry code for “plant-based meat alternatives.”

This is the competition that many analysts were worried about for Beyond Meat. Conagra has deep pockets and decades of market experience. The question is: Can the company continue to win over health-obsessed and environmentally conscious millennials and Gen Z consumers?

That appears to be the main fear of many investors. CAG shares were up more than 14% in premarket trading, but were last seen higher by only about 2%.

Great Stuff: The Gift That Keeps On Giving

Still looking for last-minute gift ideas?

Say no more, fam. In addition to Paul Mampilly’s new book, Profits Unlimited, why not give the gift that keeps on giving and giving and giving … even when you really wish it would stop?

I’m talking about a free subscription to Great Stuff!

You don’t even have to pay for shipping! We just show up in your inbox, take your favorite spot on the couch and put our feet up.

Say, do you have any snacks? Beer? Bourbon?

Anyway … Great Stuff keeps you informed on the hottest trends on Wall Street, provides you with key information to make you filthy rich (your results may vary) and sparks the best in dinner-table conversation.

No, Aunt Karen, I don’t want to buy any of your healing crystals … say, have you heard about Tesla? And can you pass the gravy?

It’s the perfect gift for that extra-special someone in your life … someone so special, in fact, that you waited until just now to think about what to get them for the holidays.

Show that person just how much you care. Sign them up for Great Stuff today!

Finally, don’t forget to like and follow Great Stuff on Facebook, Twitter and Instagram!

Until next time, good trading!

Regards,

Joseph Hargett

Great Stuff Managing Editor, Banyan Hill Publishing