The Week Ahead 5/28/2019

The Week Ahead 5/28/2019

Earnings reports this week lack any member of the Dow and only contain 9 S&P companies. Here are some of the highlights.

CWBHF – Charlotte’s Web Holdings, one of the largest US CBD companies to report earnings Tuesday after close, conference call Wednesday. This will be the first earnings report since the farm bill became law, prelim results showed sales up 70% although the stock has fallen 25% in the last month.

MMNFF – US marijuana Company with stores in 6 states, known for its advertising dominating Las Vegas cab rooftops. There have been a slew of corporate changes within the company recently, many top executives replaced, including CFO

UBER – easily the most anticipated report of the week due Thursday. The big question is will the company report gross bookings, after its rival LYFT has declined to do so since IPO. The company stated that it expects $3bil in gross revenues, the report is expected to be including substantial loses, and from a period conclude prior to its stock sale. Stock based compensation, similar to stock granted to insiders at IPO can create huge GAAP losses.

DLTR dollar tree and DG dollar general to report Thursday premarket. Both companies are under intense pressure amongst trade negotiations from China, with over 40% of inventory derived from overseas.

ULTA – the cosmetics conglomerate is expected to report earnings Thursday. Newly implemented customer loyalty program will be in focus to identify if the marketing plan has led to sales or not, along with performance of the $1b+ Kardashian line

Some other stocks of interest to keep an eye on –

BABA. Alibaba is contemplating adding a new stock listing on the Hong Kong exchange. It is not yet clear how the company intends to split its US listed entity to accomplish this, but as of now, it appears dilution is imminent.

BOOM – DMC global makes explosives for oil field use, and metal fabrication applications. The stock has nearly doubled in the past 90 days after blasting past quarterly and full year guidance numbers, and later replacing LVMH, Louis Vuitton Moet Hennessey in the S&P small cap 600 index last month. Full year 2019 is anticipated to show 78% growth, year over year.

EGO – Eldorado Gold up in foreign markets Monday as the US remained close for holidays. Greek elections could impact the company’s ability to conduct business at 2 separate mines inside Greece. The company has been “on hold” in the region since 2017, with a reported 3.7mil ozs of gold and 1.7bil lbs of copper waiting to be extracted on its sites.

My OTC pick of the week to monitor is LFUGF. Li & Fung Limited are a China group that own one of the most popular consumer fireworks brands in the marketplace, Black Cat fireworks. The stock trades on the Hong Kong exchange as well as over the counter in the US. Although fireworks are only a portion of the company’s business, with the stock at $0.15 and knowing Americans spend over $1bil annually within 2 weeks of July 4th, the stock has potential to move.

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