12 December Watchlist ๐Ÿ‘€

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Today we are watching…

1.ย Chewyย (#chwy)

And breathe! Investors in this online pet retailer bought in droves yesterday after finally having their nerves put at ease about a โ€˜lockup period.โ€™ It wonโ€™t end any time soon, apparently, and thatโ€™s a big deal! During a lockup period, insiders canโ€™t sell their shares. The moment it expires, however, they can do whatever they want! Having long paid its workforce in stock options, Chewy didnโ€™t want employees immediately cashing out at the opening bell of its public debut a few months ago. The sell-off wouldโ€™ve ruined funding prospects and created a terrible image, so insider money was locked up. Unless Chewy mends the erosion of its stock price, itโ€™s only delaying the inevitable with this announcement. When the expiry date arrives, it could be like a dam bursting. Look to Beyond Meatโ€™s 20% plummet in October for proof, or Uberโ€™s drop last month. Put yourself in the shoes of a middle manager at Chewy with thousands in ever-lowering stock. What would you do?

2. Softbank (#softbnkm)

Meet the most bullish investor on Wall Street, Masayoshi Son! Leading his investment fund into multi-billion-dollar bets with borrowed money, Masa’s divisively bankrolled Silicon Valley with an โ€œinformation revolution” philosophy. In recent months, however, Softbank’s portfolio has turned into somewhat of a dumpster fire. Firstly, office rental start-up WeWork crumbled, and its initial public offering (IPO) was canceled. Then, his stake in the ride-sharing app Uber fell to record lows. Now, his fintech play is unraveling. Start-up OneConnect just slashed its IPO price 28%, meaning it might need to ask Masa very nicely for some more cash to keep the lights on in the new year. You win some. You lose some. A return to glory for Softbank is still very much in the cards for 2020, but heโ€™ll have to stay patient!

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Market Recap โ€“ September 28th ๐Ÿ’ฐ

After the 10-year Treasury yield bond fell off from its 15-year high, investors added some value back into the market, focusing all short-term attention on Fridayโ€™s PCE price index reading.

The Crude Oil Bust ๐Ÿ›ข

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

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