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moby analysis

Everything you need to know this week

market & industry analysis Jan 10, 2022

This week we're trying a new format which gives you everything you need to know this week on a daily basis. This is going to consist of shorter snippets with the TLDR for every investor!

Please drop us a note and let us know what you think: here 

 


 

Monday, January 10th:

Tilray (TLRY) Earnings: 

 

As of writing this, Tilray is up huge this morning on the earnings news of the them finally becoming profitable due to the reverse merger with Aphria. 

Tilray also pledged that they'd cut more costs and further increase profitability in the quarters to come. If you missed it Tilray and Aphria merged last year and now are the world's largest cannabis producer by sales. The company also revenue grew 20% to $155 million.

Long story short, we've always liked Tilray and think this could be the catalyst needed to drive stock prices in the weed industry back up! While we definitely expect volatility in the near term, legality of cannabis in the majority of the US seems to be inevitable.

 

Tuesday, January 11th:

OrganiGram Holdings (OGI) Earnings: 

 

OGI is a stock we've been recommending since last year (see it here).

With the earnings set to be announced tomorrow, the stock is up this morning as well, largely due to the positive news coming from Tilray. 

Similar to Tilray we think a ton of volatility is still coming for the stock and we're skeptical of the company in the short term. Additionally just because Tilray posted a surprise profit, does not mean OGI will surprise to the upside. Take this stock with a dose of caution!

 

Wednesday, January 12th:

The Bureau of Labor Statistics reports the Consumer Price Index (CPI) later this week for the look back period of December.

Coming into this report many investors and economists were calling for a 7.1% YoY spike after a 6.8% increase the month prior.

This is the fastest rising inflation we've seen in decades and we don't think it'll be slowing down this month.

However, we're forecasting for it to peak later this year once interest rates rise and tapering finally starts! Right now the markets are pricing in an 80% chance of this happening!

 

Thursday, January 13th:

Delta Airlines (DAL): 

 

Delta is reporting earnings later this week and we think the company is set to have a huge 2022 (see our analysis: here)

The stock is up 6% in the last month and we're looking at COVID cases globally to see how the airline will be affected. We believe cases due to Omicron will peak next month and travel should start to pick back up, in general, over the course of 2022.

We think Delta however will likely have had a tough December and are looking most closely to forecasts to see what management is saying going forward!

 

Jobless Claims:

The Department of Labor reports initial jobless claims for the week ending on Jan. 8

The last time this was reported, jobless claims were below 190,000 -- a level not seen in more than half a century. Unemployment continues to go down and we think the trend will continue here.

 

Friday, January 14th:

Wells Fargo, JP Morgan and a handful of other banks are reporting earnings this week.

If you missed it last week, we think financials are going to have an absolutely massive 2022. Wells Fargo is one of the companies within this sector we love and we think they're going to promote a huge Q1 this year. Stay tuned for their forecasts!

Here is our analysis on them and our other top finance plays! 

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