Swaggy's Top Stonks

Welcome newcomers to Swaggy's Top Stonks, and thank you for subscribing.

Things will be changing in the new year in a big way. More of what you love, less of what you don’t.

Also, we probably won’t send an issue out on Christmas Eve. I like my marriage.

TL;DR

  • Steady Gains Across Major Indexes: The Dow, S&P 500, and Nasdaq all continued their upward trajectory, marking their seventh week of gains. The Dow even hit a record high.

  • Trading Volumes Spike: There was a significant increase in trading, with a focus on stocks that had been heavily shorted.

  • Lower Market Volatility: The VIX, Wall Street's "fear gauge," dropped to its lowest level since the COVID era, indicating a calmer market.

  • Inflation Eases: Inflation reports were more benign than expected. Core inflation rates remained steady, and producer price inflation was lower than anticipated.

  • Fed's Future Rate Cuts: The Federal Reserve hinted at more substantial rate cuts in 2024, signaling a shift in monetary policy.

  • Retail Sales Rise: Retail sales in November were better than expected, suggesting a strong start to the holiday shopping season.

  • Bond Yields Decline: Long-term U.S. Treasury yields fell sharply, influenced by the inflation data and the Fed's outlook.

  • Tech Sector's Resilience: The tech sector showed strength, particularly in certain sub-sectors like semiconductors, as companies adapt to the changing economic landscape.

Cash is king 👑

Not long ago, investors were chasing rocketship startups in hopes of a huge payday.

Boy how times have changed.

Those overvalued, buzzy startups just aren't as attractive anymore. You know what's cool? Undervalued companies that earn real profit.

WebStreet finds these companies, acquires them, improves them, and sells them. (And lets you invest)

It's like micro private equity on autopilot.

Unlike a lot of startups, WebStreet is doing great.

Want a piece of the action? Sign up today.

SPONSOR

🕶️ Market Vibes

🎰 Market Forecasts and Futures

Forecasts come from Kalshi, our favorite prediction market. Get $25 with this link.

🧠 What do you think?

Do you want a newsletter Christmas Eve

Login or Subscribe to participate in polls.

🎤 What you said last time

Yes

“They’re the future, and they’ll be good enough by the time I need one.”

No

“Had to choose NO, but that's not the reason. Limited range and time to "refuel" are the reasons.”

My next vehicle will be a yacht

“I’ll stick with the yacht until they make solid-state batteries”

🧠 Stock ideas

With Domino's unveiling a $500,000 "Plowing for Pizza" snow plowing grant, and Papa Johns appointing new marketing agencies, it's the perfect moment to explore the world of pizza stocks. 🍕

This deep dive, powered by insights from public.com, offers a tantalizing look into the pizza industry's financial landscape.

Remember to always DYOR.

Domino's Pizza ($DPZ)

Bull Case

  • Growth and Expansion Potential: Domino's aims for a 5% CAGR in unit count and 7% annualized system sales growth through 2028, with the potential to double global outlets to around 40,000.

  • Market Share and Scale Advantages: With <23% domestic market share, Domino's benefits from scale advantages, including a growing advertising budget.

  • Profitable Business Model: Domino's high-margin business model, including company-operated stores, domestic commissary business, and franchise fees, offers operating leverage, with 5.5% royalty on domestic franchised sales and 3% for international sales.

Bear Case

  • Hold Rating and Profitability Concerns: Domino's has a Hold rating despite high profitability in the restaurant sector, cautioning investors to wait for a better entry point or consider other factors.

  • Economic Uncertainties: Economic challenges may affect Domino's sales and profitability due to consumer spending constraints, especially amid rising costs and pricing pressures.

Papa John's ($PZZA)

Bull Case:

  • Menu Innovation and Digital Enhancements: Papa John's innovates its menu, introducing successful items like the Garlic Epic Stuffed Crust Pizza and Boneless Wings, alongside a strong focus on digital sales.

  • Strong Franchise System and Global Expansion: Actively expanding its franchise system, Papa John's boasts 5,825 global restaurants in 48 countries, providing a solid foundation for future growth.

  • Loyalty Program and Transaction Growth: The loyalty program boosts digital transactions and overall sales growth, offering early product access and targeted offers.

Bear Case:

  • Challenging Macro Environment: Papa John's faces challenges due to negative comparable sales in some markets and geopolitical uncertainties in the Middle East and Asia.

  • Financial Performance Concerns: Despite operational improvements, adjusted earnings per share declined, missing consensus estimates. Rising long-term debt of $769 million and interest expenses should be monitored.

YUM! Brands ($YUM)

Bull Case:

  • Institutional Ownership and Confidence: Yum! Brands, owner of Pizza Hut, enjoys 82% institutional ownership, signaling strong investor confidence in its future.

  • Global Expansion and Innovation: Yum! Brands expands globally, as seen with its acquisition of 200+ KFC restaurants in the UK and Ireland. Ongoing innovation, like the "Reverse Delivery" doormat campaign, keeps it competitive.

Bear Case:

  • Recent Earnings Miss: Yum! Brands missed revenue expectations despite beating EPS estimates in the third quarter, raising concerns about consistent financial performance.

  • Competitive Market Pressures: In a highly competitive fast-food industry with pricing and innovation pressure, Yum! Brands must continually adapt to maintain market share and profitability.

Don’t be like this guy

Trade options like the pros.

If you want to learn to trade options effectively, we’ve got the thing for you.

No crazy schemes.

No speculation.

Just institutional-grade strategies that yield outstanding risk-adjusted returns.

We’ve teamed up with Benedict Maynard — the guy who literally wrote the book on options trading — to show you how the pros do it.

Twice a month, you’ll learn a new options trading strategy. How it works, why it works, and how to implement it in today’s markets.

Prices will go up when we launch, but the first 50 people to sign up lock in a 50% discount for life. Just use the code Forever100.

🧵 The best posts from Wall St Bets this week

Breaking: Jerome Powell - "This is why I must break the middle class" , "I will be watching you".

UPDATE: 20k to 1.2 million in one day. Thanks jpow and solar

When the consequences of your actions start hitting.......

📈 Trends you need to know

Brought to you by our friends at Glimpse, my favorite way to spot trends.

Straddling the intersection of meta-trends ETFs and dividend stocks, the SCHD ETF has surged in popularity despite its mediocre performance.

🖼️ Meme of the week

That’s it for this week. Love it? Hate it? Smash reply.

Notes

Please read this disclaimer. The authors of Alt Assets, Inc. are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content should not be taken as professional advice. They are self-taught accredited investors, sharing information, research, entertainment and lessons learned based solely on their own experience and circumstances. Individual results may vary. The published content is unique, based on certain assumptions and market conditions at the time of publishing, and is intended to serve solely as research, not financial advice. For entertainment purposes only. Not investment advice. Alts I LLC (the “Fund”) is an affiliate of Alt Assets, Inc. and the Fund has conducted a private placement offering under Rule 506(c) of Regulation D of the Securities Act of 1933, as amended. The Fund may invest in one, several, or all of the alternative asset classes that Alt Assets, Inc. publishes content about on its site. Any of the Fund’s investments that have positive designations on the Alt Assets, Inc. site are purely coincidental, as the Fund is actively managed and guided by its own investment parameters, as summarized in the relevant private placement memorandum. Alternative investing involves a high degree of risk, including complete loss of principal and is not suitable for all investors. Past performance does not guarantee future results. The newsletter may contain affiliate links, meaning that Alts.co and its associated entities may receive compensation for referring customers to the noted companies. We recommend seeking the advice of a financial professional before you make any investment in an alternative asset class or any associated entities, and we accept no liability whatsoever for any loss or damage you may incur.