Amazon’s management talks about it being early days in all of their businesses. That’s quite a statement for one of the world’s most valuable and exciting companies to make. Is this just a classic case of a growth stock trying to support its valuation multiple, or does Amazon still have enough runway? With performance well ahead of the Nasdaq-100 this year, Amazon has caught up some of the lost ground. Can it keep going?
With many people still recovering from the sugar hangover that is Halloween, we felt it was a good time to cover consumer brands business Hershey. Although there’s a strong attempt underway to grow the healthier product lines, Hershey is known as a confectionary company. There’s been nothing sweet about the performance this year, with the market talking about the “Ozempic Era” and the popularity of weight-loss drugs. The worry is whether the cravings will go away. For investors, the risk is that profits go away with those cravings. But is the market simply focusing on the wrong thing entirely?
Johnson & Johnson is far more than just a baby powder company. In fact, the consumer business has been split-off into a newly listed company called Kenvue, with the intention of Johnson & Johnson being a pure-play opportunity in pharmaceuticals and medical devices. As a long-term stalwart in any portfolio, this is a compelling choice.
When we first covered PepsiCo, we thought it would be a strong player in an inflationary environment. We were right about that, with the valuation multiples having moved upwards as a result. But what does the risk-reward position look like now?
Use the podcast player below to listen to our discussion on McCormick & Co and its Q3’22 result, which accompanies the detailed write-up below: (Date of report: 13 October 2022) As macrotrends go, the need to eat is a strong one. We will always need to eat and grocery stores aren’t going anywhere, even if we might be buying online instead of in-store. But further up the value chain, things are a lot more volatile. The products on the aisle chop and change and food producers appear to carry both a growth premium as well as a defensive premium. With the [...]
Like moths drawn to a flame, some investors cannot help but choose strategies with a high risk/reward trade-off. Omid Gholamifar is one such investor. Born in Iran and having spent a great deal of time in Sweden, he has dedicated himself to uncovering investment gems in his country of birth. Through Serkland Invest, Omid is raising capital to invest in sectors like FMCG and pharmaceuticals in Iran. With this kind of experience, there’s so much to learn from him about investing in tough places. Join us on this episode of Magic Markets to learn more about Iran, a country you probably [...]
Use the podcast player below to listen to our discussion on PepsiCo and its Q4’21 result, which accompanies the detailed write-up below: (Date of report: 16 February 2022) Cognitive biases are dangerous. South Africans aren't terribly familiar with Pepsi as a drink, so our subscribers in our home country tend to skip over PepsiCo in favour of other food and beverages groups. This is a pity, as PepsiCo has a proper business that is well worth consideration in an inflationary environment. The group owns brands like Lays, Fritos, Doritos, Lipton and Tostitos. A recent acquisition is the Rockstar energy drink. As [...]
Use the podcast player below to listen to our discussion on Nestle and its Q3’21 result, which accompanies the detailed write-up below: (Date of report: 22 December 2021) Nestle has been under new leadership since 2017 and is a prime example of a lumbering giant that needed to become sharper and more efficient. FMCG and especially grocery categories are hyper-competitive, fraught with risk for producers and challenging to manage on a global scale. With over 30 "billionaire brands" in the stable, Nestle is usually ranked as the largest consumer goods company in the world (measured by sales). In the decade before [...]
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