Stock Card's winner and loser of the week
This week the stock market created too many losers. Not many loser companies from the operational point of view, but just loser stocks from the share price point of view. The losing streak is so prominent that it is hard to find a winner. But, don't you worry, we've got you a winner:
Burlington Stores, Inc. (Ticker: BURL)
Burlington! Yeh, You may know it as Burlington Coat Factory. Let me tell you something! Put the coffee you have in your hands on the table. Ready? Burlington stock has done better than Amazon and Netflix in the past 5 years. Total 5-year return on a daily basis for Burlington Stores is up by 492%. In the same period, Amazon is up by 331.9%, and Netflix is up by 423.7%. Think about it! While most investors have been chasing the tech and weed stocks, the folks at Burlington have been doing something well. While the revenue hasn't grown that significantly, the company has improved its earnings per share (partly, thanks to the tax cuts). And, when you are a small company that is not talked about a lot, the algorithms pick you up based on your earnings improvements. And, that's the story of this successful winner. Thanks to Chris Hill from the Market Foolery podcast who brought this winner to our attention.
Request Burlington Stores' Stock Card
Loser: Johnson & Johnson (Ticker: JNJ)
Who hasn't seen the report by Reuters that mentions Johnson & Johnson knew for decades that its baby powder included asbestos! Oh no! Not in baby powders! This is a significant blow to the company's brand. The stock dropped by about 10%, and the company lost $40 Billion of its value. The company has categorically denied it, and we are now waiting to see what the truth is. If it is proven right, the brand value the company is going to lose may not be easy to recover anytime soon. Just ask Volkswagen or BP!
Visit Johnson & Johnson's Stock Card now
Should you invest in Beyond Meat after its IPO?
Beyond Meat filled its S1 Documentation in November of 2018, which means the company is getting ready to go public soon. Typically, when it's a new IPO, we hold off from it. There is no rush to invest in an IPO for several reasons including the fact that most IPOs get hyped up at the beginning to give the company a chance to raise as much money as possible. But, Beyond Meat maybe an exception to such a rule. In this episode of Renegade Investors podcast, we explore whether or not you should invest in Beyond Meat when it goes public. We will hear from the founder and CEO of the company. We also dig deep into the S1 document and other resources to assess whether the company is worthy of a spot in our long-term portfolios.
Season One of the How To Invest Video series
Season One of our How To Invest YouTube channel is over. If you haven't watched it yet, it's time to binge watch. We will be back with Season 2 in early 2019. You can send us your topics and episode requests by clicking on this link.
Binge-watch the Season One
Stock Card request of the week
That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thoughts and ideas!