Tesla's Doom

 Lots of talk in the business world these days about Musk "going back" to his companies, but for Tesla it's too little too late. Although the stock has been up on just the news of Musk going back sales are down in the U.S. as well as Europe and they are likely to stay that way. They can't really compete in China against BYD and others. Too much home field advantage there. Tesla gets little to no support in America. India could be promising but not anytime soon. The majority of the people in the U.S. that bought Tesla cars support Democratic ideas and those people will not be buying Tesla cars ever again due to Musk's political views and who he supports. There are too many other options for them. Tesla's best hope for the future is the self-driving taxi plans and trying to sell people on the idea. The concept seems interesting but there are a lot of negatives. We will have to see how it all plays out and IF Musk and Tesla can really make it work. It's going to take a long time to really find out. Of course all this could change if Musk leaves America, like to Mars. 

Novelty Stocks

 We have developed a list of stocks we call novelty stocks which are stocks generally under $5 that just aren't going anywhere. They will not make money but their products are fun #fomo for example we just added Krispy Kreme $DNUT to the list after disappointing earnings. The products are great and a lot of fun to share on social media but the stock and company are just not making it. At this point we suggest Restaurant Brands $QSR / Tim Horton's step in and do a deal to put $DNUT out of its misery. It's the humane thing to do. Tim Horton's is in about 15 states in the US while $DNUT is in 45 states. What an immediate expansion for dual locations. $QSR get easily get $DNUT for well under $1 billion so it makes sense to us. 

Business headlines

 Here are some business headlines you may have missed:

Subway is being sold to Roark Capital the owners of Arby's and Jimmy Johns

Shein invest in Forever21 and Forver21 takes stake in Shein

Max streaming service (formerly HBOmax) is launching CNN News Streaming service within it's service platform (correction)

we will continue to update this as news develops

Disappointment in Playboy Group (PLBY) but not giving up hope

 While the Playboy group drops to near $100m valuation we can't help but hold out hope for some type of  turnaround. With a brand name such as Playboy there has to be room for success. In all reality Playboy should consider selling to RCI Hospitality (RICK) which has a long list of strip clubs around the country under numerous different names. The benefit for RCI would be to rebrand every club as a Playboy Club and have instant name recognition. Along with RCI's attempts at an online platform and the strides that Playboy has already made. Although Playboy needs to recognize that not everyone is really "bunny" quality or "cover" worthy. 

Amazon and AMC

 The stock of AMC jumped this week on rumors Amazon was looking at bidding for the company. Most likely these are just rumors to prop up the stock but in actuality it could be a smart play for Amazon. Whether it would pass regulation standards is another story. But should Amazon actually acquire AMC they should immediately partner with Hasbro to set up a toy/collectible store in every AMC theater a la Cracker Barrel. That way they could instantaneously sell toys, products and collectables from the movies. People had a "right now" mentality and having a store built in can satisfy people who want movie items right away as part of the movie experience. 

WWE and Playboy

Two companies making moves recently include the WWE and Playboy Group. No they are not doing a collaboration together, although they should, and despite the next Monday Night RAW being labeled as RAW XXX which celebrates their 30 year anniversary. Several social media accounts recommend that you do NOT search RAW XXX without adding WWE to the search, it will end well for you. On a much more serious note, with the return of Vince McMahon to the company he has unilaterally edited company by-laws to allow him to make sole decisions for the company, including a complete sale without shareholder approval. This is a serious blow to shareholders who now have no say it what happens to WWE (symbol WWE) in the future.

Playboy group on the other hand is doing it by the book. They have formed a joint venture in China to expand their brand. Holding a controlling interest in the jv with an independent board overseeing the new jv company. Great things continue for the Playboy Group (symbol PLBY).

Revlon bankruptcy

 Revlon appears to be going into bankruptcy yet again. We believe this is at least the second but could be wrong about that. Quite a few cosmetic companies have struggled in recent years. But it appears they may have options ready for a quick out. Revlon has been negotiating with creditors recently and there appears to be buyout interest as well albeit from a foreign conglomerate. Reliance Industries in India is rumored to be interested. However if this company is going to finally turn around, especially under new ownership or leadership it needs to be someone like Authentic Brands group (ABG). They know how to turn things around just look at what they are doing with the Sports Illustrated brand. It's amazing!