8 November Watchlist 👀
Today we are watching…
1. Heineken (#heinkn)
Marketers at this brewer are working around the clock to stay ahead of consumer trends. Yesterday, they proudly announced that for Heineken multipacks, it’s out with the plastic and in with the eco-friendly cardboard. That means 517 tons less plastic will be in our system by 2021, and that’s exactly what Heineken is really selling, not alcohol. It’s painting itself as “one of the good ones” in an industry that can’t shake off a mental association with strangled sea turtles! From an investor’s point of view, this is precisely the versatility they paid all-time highs for. Many are also hoping to benefit from a golden Heineken honeymoon as these cardboard rings are slowly phased-in, and earnings come due.
2. The Gap (#gap)
Every “40% Off!” promotion from this embattled clothing retailer is another desperate gasp for oxygen. Fewer and fewer young people want to be seen outside with ‘GAP’ emblazoned hoodies, and the company’s store concept is not working. The Gap stock plummeted 15% yesterday as CEO Art Peck threw a grenade and ran away, cutting profit guidance before handing in his notice to resign. Replacing him and tasked with breaking the corporate inertia? We don’t know yet. The Gap founder’s son, Robert Fischer, will take over as interim boss until someone new is found!