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Today we are watching…
1.ย Constellation Brandsย (#constb)
The brewers of Corona beer hold a steadfast belief in their recent cannabis investments, unlike many other stock pickers whoโve had their fingers burnt by the bong biz. Investors raised eyebrows yesterday as Constellation Brands took an L in its earnings release thanks to a floundering bet on weed start-up, Canopy Growth. However, keen to eventually bring cannabis-infused beverages to market following a four-billion-dollar commitment to the Canadian firm, executives have no choice but to say they’re โbullish.” Aside from agonizing over Canopy Growthโs share price, though, Constellation is planning to launch a new hard seltzer in 2021. More details to follow!
2. Bed Bath & Beyond (#bedbath)
Itโs official. Bed Bath & Beyond is the worst retailer on the planet, and possibly beyond! Structurally unprofitable thanks to an excess of non-expiring, 20% off coupons which rip into its margins, customers wonโt shop at Bed Bath unless they do indeed have these coupons! Itโs a catch-22. Thatโs the view held by investors who lost last night lost 15% after Bed Bath missed earnings, closing forty stores in the process. But itโs never over until itโs over. The home furnishings business is plotting a sensational comeback under Mark Tritton, a former Target executive, but a famous saying is playing investorsโ minds right now. โWhen a CEO with a reputation for brilliance tackles a business with a reputation for bad economics, itโs usually the reputation of the business which stays intact.โ That’s one of Warren Buffett’s. Gulp!