🧊 Largest IPO of the Year

MARKET UPDATE

Good Morning Investor! On Friday, Shares of toymaker Hasbro ($HAS) surged over 3% after the Play-Doh and “Transformers” parent topped Q2 estimates and boosted its annual earnings forecast. Meanwhile, Ford ($F) stock tanked 18% (its worst day since 2008) after it disappointed on profit as its EV business lost $1.1 billion. Still, Ford’s overall sales grew in the quarter, driven by momentum for its new F-150 pickups. Lastly, shares of notorious industrial “dividend king” 3M Co. ($MMM) had its largest single-day rally ever, surging 22% off the back of raising its full-year profit forecast, benefiting from a spate of cost cuts.

TODAY’S BIG HEADLINES

This Cold-Storage Company Just Delivered the Year’s Hottest IPO

UPS Stock Had its Worst Day Ever

Trump Fully Endorses Bitcoin

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INITIAL PUBLIC OFFERINGS

This Cold-Storage Company Just Delivered the Year’s Hottest IPO🧊

A Chilling Success Story: A company built on keeping things cold made its sizzling debut Thursday as the hottest new ticket on the stock market. Lineage, the world's largest temperature-controlled warehouse real estate investment trust (REIT), broke the ice on the market under the ticker symbol "LINE", ending the day up 3% - proving that sometimes, it's cool to be cold.

• This frosty reception gives the business an implied valuation of $18 billion after successfully raising $4.4 billion from selling nearly 57 million shares at $78 apiece. Talk about a cold hard cash grab! This makes it the largest public offering since chip designer Arm's $4.8 billion listing last September.

• Lineage has amassed over 480 facilities, totaling roughly 2.9 billion cubic feet of capacity across countries in North America, Europe, and the Asia-Pacific region. These locations create a global network of cold-storage facilities, reducing supply chain food waste and its environmental impact.

Putting Waste on Ice: Food loss happens at every level of the supply chain, with an estimated $600 billion worth of food going to waste during or just after harvest. That ever-growing amount of waste currently accounts for about 11% of the world's emissions – making it one of the biggest environmental issues contributing to climate change. Clearly, Lineage would be right at home in any ESG-focused portfolio or fund.

The Cold Never Bothered Them Anyway: Interestingly, Lineage is a four-time CNBC Disruptor 50 company, which has leveraged an aggressive acquisition strategy to drive its success. Having started with just a single warehouse, they've now completed 116 acquisitions.

• In the past 12 months, Lineage has acquired the likes of Grupo Fuentes, Burris Logistics, Kennedy Transportation, and Harnes, with The Burris acquisition alone giving Lineage eight new facilities. They're collecting warehouses like they're Pokémon cards.

LOGISTICS & INDUSTRIALS

UPS Stock Had its Worst Day Ever🚚

When Fast Fashion Puts the Brakes on Profits: We've previously covered here on Tickergeek how Shein and Temu are making waves in the global freight & shipping industry, but now we're finally seeing the tangible impact of these fashion tsunamis on company balance sheets. It seems the only thing not being delivered quickly is good news for logistics firms.

• Last Tuesday, shares of logistics giant United Parcel Service ($UPS) took a 12% nosedive, leaving investors feeling like a mishandled package. The company missed analyst expectations faster than a delivery driver skips stairs, with profits plummeting 30% despite package volumes rising for the first time in two years.

Slow and Steady Wins the Race: The culprit behind this sudden collapse in profits? Customers are choosing slower, cheaper shipping over expedited options. Apparently, standard 5-7 day shipping is the new normal - because who doesn't love waiting a week for their impulse purchases to arrive? Compounding the pain are labor costs, which have risen faster than a drone delivery since the Teamsters union negotiated a lucrative new contract for UPS drivers last year.

• It appears UPS's plan to save $1 billion in costs by cutting thousands of jobs hasn't begun offsetting those pay bumps yet.

Great Wall Becomes a Great Haul: The driving force behind this shift in consumer behavior? Despite the CEO remaining coy on the matter - stating that shipping demand from new customers "blew up" last quarter with "much higher" demand than anticipated - we all know who the real culprits are: Temu and Shein. These Chinese e-commerce giants are sending nearly 600K packages to the US each day, a deluge that's already squeezed air-freight capacity tighter than skinny jeans on a hot day.

• Things are likely to continue getting worse for logistics companies after Amazon announced it will be joining the party this fall. The e-commerce behemoth plans to roll out a service competing with Shein and Temu by sending low-priced products directly from China to the US. Because if there's one thing the world needs more of, it's cheap stuff from China arriving on our doorsteps!

CRYPTOCURRENCY

Trump Fully Endorses Bitcoin 🚀

When Orange Meets Orange: On Saturday, in a scene reminiscent of a rock star taking the stage, former US president Donald Trump addressed a packed hall of over 3,000 enthusiastic attendees at the Bitcoin Conference in Nashville. With his characteristic charisma, Trump emphasized the crucial role of Bitcoin and cryptocurrency in shaping America's future. Trump also announced several positive catalysts that had investors salivating more than dogs at a butcher's shop, further cementing his position as the "crypto-backers" candidate.

Making America HODL Again: Trump unveiled several groundbreaking plans for the beloved cryptocurrency that had investors' hearts racing faster than a bull market. He announced the creation of a "strategic national bitcoin reserve". Trump also pledged to "never sell" the government's seized bitcoin, showing a level of diamond-handedness that would make even the most ardent crypto enthusiasts blush (and perhaps make the German government look like chumps for selling). Further building on Trump’s proudly American retoric, he stated his ambition for Bitcoin to be mined, minted and made in the US.

• Trump, always one for memorable quotes, went on to make some incredibly bullish statements about crypto. He declared it "the steel industry of 100 years ago," suggesting that crypto might just be the backbone of the next American century. He added, "One day it probably will overtake gold," and even proclaimed that bitcoin is going to the moon. It seems Trump is ready to make space great again, one satoshi at a time.

Fist Pump-Fueled Rally: Since the shocking assassination attempt on July 14th, which saw Trump's popularity surge thanks to his iconic, defiant fist-pumping moment, Bitcoin has experienced an incredible 15% surge. It's skyrocketed from $59,500 a coin all the way up to a jaw-dropping $68,960 at the time of writing. This meteoric rise is largely attributed to Trump's pro-crypto stance, with the market clearly signaling that a Trump presidency is viewed more favorably than a Kamala Harris-led government when it comes to the future of digital assets.

MORE NEWS

Additional market-moving events🌎

Search Wars Begin: ChatGPT maker OpenAI announced a prototype for an AI-powered search engine called SearchGPT. It could pose another threat for Google, which launched an “AI overview” in its search results this year. (CNBC)

Merger on Ice: The $25B merger between Kroger and Albertsons (America’s largest supermarket chains) was put on ice until a court rules on a lawsuit aiming to block the deal. If approved, the combo-grocer would have 5K US stores. (Fox)

The AI Layoffs: AI startup Cohere, founded by ex-Google AI researchers and backed by Nvidia, cut about 20 roles at the company, after $500 million funding round. (CNBC)

Pershing Drama: “finfluencer” Bill Ackman’s Pershing Square delays its hotly-anticipated IPO, with his own fund telling its investors to ignore what he says. (Fortune)

Euro War Games: Greece signs deal to buy 20 U.S.-made F-35 jets from Lockheed Martin for $3.5 billion, as the Eurozone increases its defense spending. (Fortune)

OUR PICKS

Our selections performance👾

On Monday the 11th of March, we released our “superperformers” stock pick which we believe will provide significant outperformance compared to the S&P 500. Then on the 14th of June we released our next stock selection.

Here’s how the stocks have performed since:

• Hims & Hers Health: $21.77 (📈+50.45%)

• PayPal: $58.29 (📉-3.88%)

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