For Your Consideration: Palladium

The average person has no idea what the hell palladium is. You can’t blame them. It’s used by nearly everybody, but in something that nobody gives much thought to. Catalytic Converters. If you have a fossil fuel powered car, you have a catalytic converter. The quick explanation, for those that don’t know, is that the catalytic converter helps clean the exhaust from an engine before releasing it out into the air. It’s the main thing that cuts down on your car’s “emissions” Palladium is one of the main 3 metals used in the manufacture of the converters (the others are platinum and rhodium).

What does that have to do with investing? Well, the price of the metal itself has gone up nearly 60% since August. When the guys you see on financial news talk about precious metals as an “investment” they typically only focus on gold, possibly silver, and occasionally platinum. Palladium isn’t really even spoken on-air. It’s the red-headed stepchild of precious metals, typically trading at a massive discount to the other 3. When gold was going nuts in 2009 and reached over $1,900 an oz, palladium was trading at less than 1/3 of that. While the other 3 are typically looked at as the only “precious”metals, palladium could easily be used (and often is) interchangeably with platinum. It’s a commodity with incredible industrial application that doubles as a precious metal.

Here’s the crazy part: palladium is about 30x more rare than gold and about 15x as rare as platinum. Right now, after this massive run up, palladium is trading near $1,330 per oz. (an all-time high) Gold is about $40 less per oz. That seems to make sense regarding it’s rarity, but it hasn’t traded at a premium to gold in over 15 years.

We can speculate all day long on the exact reason palladium is up where it is, but the overriding theory at the moment is that it’s a product of the tensions the US, Russia and China. Russia is the top mining producer (followed by South Africa) and we’ve all seen what’s going on between the US and them. China and the US are duking it out in the trade wars and in what looks to be a type of hoarding holding pattern. China is now the world’s largest motor vehicle market with about 332 million in 2018, but they have A LOT of room to grow when you consider the population and middle-class upward mobility. America has about 932 vehicles for every 1000 people, China has only about 173. So it’s a pretty safe bet to say, China wants a ready supply of the metal for manufacturing usage.

If you think that palladium has already topped out after the 60% run and there can’t be much more left we’ll leave you with this:

Last time palladium surpassed gold in price/oz, it ended up rising to about 4x the price of gold. Right now we’re just over 1…

palladium to gold ratio
Palladium to Gold Ratio (Stockcharts.com)

Here’s why palladium just hit an all-time high

Top Palladium Producing Countries In The World

The Biggest Palladium Producers

For Your Consideration: Brazil

Most of you have never thought about investing overseas. You almost certainly haven’t thought about Brazil as an investable country. It’s not exactly a country that comes up in everyday conversation in the US. But while you and the people at work were whining about the US taking a massive dump, Brazil started a new stealth bull market. The US reached its recent peak on Sep 21 and as of today is down around -12%. In the same amount of time, Brazil is up 27%. If you think a move that fast means that the opportunity is gone, consider that on its last run from Jan 2016 to Jan 2018 the market gained around 258%. We may see that kind of growth in the US, but we sure as hell don’t see it in 2 years.

A few points to consider: The larger companies in Brazil have a very heavy tilt towards oil and mining. If you take issue with this because of conservation reasons, you may want to research some of the small cap ETFs* which are a bit more diverse and don’t weigh so heavily in that field. EWZ, the most commonly traded Brazil ETF has about 20% in 2 oil and mining stocks alone (Vale and PetroBras) the other 2 largest holdings are banks (Itau Unibanco and Bank Bradesco) All together, just those 4 stocks constitute about 41% of the fund. While in the small-cap etfs the largest holding is around 4-5%.

Another issue you may want to read up on is their new leader, Jair Bolsonaro. We are trying our best to stay away from politics here, but before you buy into Brazil you may want to do some digging. He’s a piece of work. Consider that scandals and human rights issues can greatly affect the markets. However, even if you decide you completely despise what he stands for; you need to consider what it means to invest in a country for its people and potential vs. it’s current leader. People may complain about Trump or Obama, but we’ve never met anybody who has stated the US is un-investable because of the president.

 
Brazil ETFs

brazil etfs1

*ETF means exchange traded fund. It holds a basket of stocks much like a mutual fund, but trades like a stock. Small-cap means that the companies held by the fund are much smaller by market capitalization and usually grow at a faster rate. They also typically exhibit a leveraged effect during bull markets.

STOCK IDEAS: Hidden Brand Names (Beauty Products)

For fast browsing, hit Ctrl + F and search by brand. If you don’t see what you’re looking for,  just google the brand you’re interested in along with “owner”. Below you will see the Company name, Ticker/Symbol in parenthesis, and Brands they own. If it’s not already linked up, check out the company’s “Investor Relations” page for more info. This is by no means a complete list. The point is to get you to start looking for ideas anywhere you can and learning to dig up useful information.

 

Estée Lauder (EL)
MAC, Clinique, Aveda, Smashbox, Estée Lauder, Becca, Bobbi Brown, Bumble and Bumble, Darphin, Jo Malone, Glam Glow, La Mer, Lab Series, Le Labo, Origins, Tom Ford Beauty, Too Faced…

L’Oreal (LRLCY) – Foreign ADR. Trades in France.
Lancôme, Clarisonic, Yves Saint Laurent Beauté, Biotherm, Kiehl’s, Shu Uemura, Cacharel, Helena Rubinstein, Viktor&Rolf, Yue Sai, L’Oréal Paris, Magic, Garnier, Maybelline New York, African Beauty Brands, Essie, NYX Professional MakeUp, Niely, Redken, Matrix, Pureology, L’Oréal Professional…

Coty (CTY)
Cover Girl, Clairol, philosphy, O.P.I, good hair day, Rimmel, Bourjois, Sally Hansen, Max Factor, Wella, Monange, Lancaster, Biocolor, Monange, Sassoon, Nioxin, Sebastian, Kadus, Londa…
Fragrances for Gucci, Burberry, Calvin Klein, Hugo Boss, Alexander McQueen, Marc Jacobs, Addidas, Davidoff, Chloé, Balenciaga, Beyoncé, Bottega Veneta, Guess?, Joop!, Katy Perry, Lacoste, Miu Miu, Nautica, Roberto Cavalli…

Revlon (REV)
Revlon, Elizabeth Arden, American Crew, Almay, CND, Cutex, Sinful Colors, Mitchum…
Fragrances from John Varvatos, Britney Spears, Curve, Juicy Couture…

Sephora (LVMUY) – Foreign ADR. Trades in France

InterParfums (IPAR)
Fragrances by Abercrombie, Hollister, Agent Provacateur, Anna Sui, bebe, Karl Lagerfeld, MontBlanc, Boucheron, Oscar de la Renta, Coach, Paul Smith, Jimmy Choo…

e.l.f. Beauty Inc. (ELF)

 

Note: A lot of the mass-produced skin and hair care products found in grocery and department stores are made by the mega-conglomerates Johnson and Johnson (JNJ), Unilever (UL) and Procter and Gamble (PG). Google is your friend.

 

STOCK IDEAS: Hidden Brand Names (Booze and Cigarettes)

For fast browsing, hit Ctrl + F and search by brand. If you don’t see what you’re looking for,  just google the brand you’re interested in along with “owner”. Below you will see the Company name, Ticker/Symbol in parenthesis, and Brands they own. If it’s not already linked up, check out the company’s “Investor Relations” page for more info. This is by no means a complete list. The point is to get you to start looking for ideas anywhere you can and learning to dig up useful information.

 

AB InBev (BUD)
Budweiser, Corona*, Modelo*,Stella Artois, Beck’s, Hoegaarden, Bass, Franziskaner, Michelob, Natty Light, O’Douls, Rolling Rock, Shock Top…

Boston Beer Company (SAM)
Samuel Adams, Angry Orchard, Twisted Tea, Truly Spiked & Sparkling…

Brown-Forman (BF-A, BF-B)
Jack Daniels, Woodford Reserve, Herradurra, El Jimador, Finlandia, Chambord, Corbel, Early Times…

Constellation Brands (STZ)
Robert Mondavi, Wild Horse, Clos du Bois, Franciscan Estates, Modelo*, Corona*, Black Velvet, Pacifico, Casa Noble, Svedka, High West, Ballast Point, Funky Buddha,  Kim Crawford, Meiomi…

Craft Brew Alliance (BREW)
Kona Brewing, Omission Brewing, Widmer Brothers, Red Hook, Cisco Brewers, Appalachian Mountain Brewery, Wynwood Brewing, Square Mile Cider Co…

Diageo (DEO)
Crown Royal, Captain Morgan, Smirnoff, Johnny Walker, Baileys, Ciroc, Tanqueray, Guinness, Ketel One, Don Julio, J&B, Lagavulin…

LVMH (LVMUY) –  Foreign ADR. Trades in France
Dom Pérignon, Moët & Chandon, Hennessy, Ardbeg, Belvedere, Glenmorangie, Cape Mentelle, Château Cheval Blanc, Château d’Yquem, Krug, Mercier, Cloudy Bay, Bodega Numanthia, Newton Vineyard, Ruinart, Terrazas de los Andes, Veuve Clicquot, Wenjun…
Note: LVMH stands for Louis Vuitton Moet Hennessy and they own about a billion other luxury brands. Here we just listed alcohol, so you definitely want to check out their complete line up.

Molson Coors Brewing (TAP)
Coors, Miller, Blue Moon, Keystone, Mickey’s, Crispin, Jelen, Cobra, Leinenkugel’s, Madjack, Magnum, Milwaukee’s Best, Molson, Nikšićko, Old Style Pilsner, Olde English 800, Ostravar, Ožujsko, Red Dog, Rickards, Saint Archer, Smith and Forge, Sparks, Standard Lager, Steel Reserve…

Campari Group (DVDCF)
Skyy, Wild Turkey, Frangelico, Campari, Aperol, Grand Marnier, Appleton Estate, Russell’s Reserve, Glen Grant, Forty Creek, Red Label Wine, Espolon, Cabo Wabo (previously owned by Sammy Hagar**)

Altria (MO)
Phillip Morris (seen below), Nat Sherman, Nu Mark,  Copenhagen, Skoal, Ste. Michelle Wine Estates, Middleton’s, Prince Albert, Carter Hall, Gold & Mild, Black & Mild…

Phillip Morris (PM)
Marlboro, Parliament, L&M, Longbeach, ST Dupont Paris, U Mild, Philip Morris, Red and White, Basic, Bond Street, Chesterfield, Lark, Merit, Morven Gold, Skjold, Virginia Slims, IQOS, Delicados, Benson & Hedges, Solaris,…

British American Tobacco (BTI)
Camel, American Spirit, Lucky Strike, Newport, Dunhill, Kent, Pall Mall, Vype, Vuse, Glo, Ten Motives, Grizzly, Kodiak, Epok, Granite…

 

*In 2013, AmBev (BUD) bought Grupo Modelo in Mexico which makes Modelo, Corona, and Pacifico. Problem is, the US realized this was going to make the company too damn big and cause a monopoly.  In order to get the transaction to close without breaching US anti-trust/monopoly laws BUD paid $20.3 billion for Grupo Modelo, and sold the RIGHTS to US distribution to Constellation (STZ) for $4.75 billion. So BUD can’t export those beers to the US to sell on their own, but STZ can import them from Mexico for distribution. Either way, BUD has STZ pimping their beer out for them, which is pretty badass.

 

**Hagar first sold off 80% of Cabo Wabo back in 2008 for $80 million, he sold his remaining 20% for $11 million in 2010. Sammy f*cking Hagar… 

STOCK IDEAS: Hidden Brand Names (Fashion)

For fast browsing, hit Ctrl + F and search by brand. If you don’t see what you’re looking for,  just google the brand you’re interested in along with “owner”. Below you will see the Company name, Ticker/Symbol in parenthesis, and Brands they own. If it’s not already linked up, check out the company’s “Investor Relations” page for more info. This is by no means a complete list. The point is to get you to start looking for ideas anywhere you can and learning to dig up useful information.

 

Abercrombie & Fitch (ANF)
Abercrombie, Hollister Co…

Addidas AG (ADDDF)

Caleres (CAL)
Footwear for Allen Edmonds, Sam Edelman, Famous Footwear, Naturalizer, Dr. Scholl’s, Vionic, Via Spiga, Life Stride, Vince, Brown Bilt, Ryka, Diane Von Furstenberg, Blowfish Malibu…

Capri Holdings (KORS) – Formerly Michael Kors Holdings
Michael Kors, Versace, Jimmy Choo…

Crocs (CROX)
Note: They only make one thing, but CROX is damn good lesson. It may seem tempting to immediately short (bet on it going down) something that looks like surefire garbage since everybody shits on it, but believe it or not from May 2017 to December 2018 the stock was up over 400%. 

Deckers (DECK)
Ugg, Hoka One, Teva, Sanuk…

Destination Maternity (DES)
Destination Maternity, Motherhood Maternity, Pea in the Pod…

Fossil Group (FOSL)
Fossil, Michele, Misfit, Skagen, Armani Exchange, BMW, Chaps, Diesel, DKNY, Emporio Armani, Kate Spade, Marc Jacobs, Michael Kors, Puma, Relic, Tory Burch, WSI, Zodiac…
Note: Designers listed are for their branded watches

Gap Inc (GPS)
Gap, Old Navy, Banana Republic, Hill City, Athleta, Intermix…

Guess (GES)

H&M (HMRZF) – Foreign ADR. Trades in Sweden

Hugo Boss (BOSSY)  – Foreign ADR. Trades in Germany

Iconix (ICON)
Artful Dodger, Bongo, Buffalo David Bitton, Candie’s, Cannon, Danskin, Ecko Unltd, Ed Hardy, Joe Boxer, London Fog, Marc Ecko, Mossimo, Mudd, Op, Pony, Rocawear, Starter, Umbro, Waverly, Zoo York…
Note: Iconix is a perfect example of a shitty business and stock even though they license extremely famous brands. This is the Sears of fashion, now trading at $.08 and primed for bankruptcy any day.

Kering (PPRUY) – Foreign ADR. Trades in France
Gucci, Saint Laurent, Boucheron, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Girard-Perregaux, JeanRichard, Qeelin, Pomellato, Dodo, Thomas Maier, Christopher Kane, Ulysse Nardin, and Volcom…
NOTE: fun fact, the CEO is Salma Hayek’s husband. Who cares, but still…

L Brands (LB)
Victoria’s Secret, Pink, La Senza, Henri Bendel, Bath and Body Works…

Lululemon (LULU)

Luxottica Group (LUXTY) – Foreign ADR. Trades in Italy
Eyewear for Armani Exchange, Brooks Brothers, Burberry, Bvlgari, Chanel, Coach, DKNY, Dolce & Gabbana, Emporio Armani, Giorgio Armani, Michael Kors, Miu Miu, Oakley, Oliver Peoples, Paul Smith, Persol, Polo Ralph Lauren, Prada, Ray Ban, Ferrari, Ralph Lauren, Tiffany & Co, Tory Burch, Valentino, Versace, Vogue…

Movado Group (MOV)
Movado, Concord, Coach, Tommy Hilfiger, Ebel, Hugo Boss, Lacoste, Juicy Couture, Ferrari, Olivia Burton, Rebecca Minkoff,
Note: Designers listed are for their branded watches

Nike (NKE)
Nike, Air Jordan, Converse, Chuck Taylor, Hurley…

Nordstrom (JWN)

PVH Corp (PVH)
Calvin Klein, Tommy Hilfiger, IZOD, Van Heusen, Arrow, Speedo, Warner’s, Olga, True & Co…

Prada (PRDSY) – Foreign ADR. Trades in Hong Kong

Puma SE (PMMAF) – Foreign ADR. Trades in Germany

Ralph Lauren (RL)

Skechers (SKX)
NOTE: Another brand a lot of people probably grossly underestimate has a sales growth rate 3X as high as Nike in the last 5 years.

Steve Madden (SHOO)
Steve Madden, Dolce Vita, Brian Atwood, Kate Spade, Blondo, Betsey Johnson, Avec Les Filles, Superga, Report, Mad Love, Big Buddha, Cejon…

Tapestry (TPR)
Coach, Kate Spade, Stuart Weitzman…

Ted Baker (TBAKF) – Foreign ADR. Traded in London.

Under Armour (UA)

Urban Outfitters (URBN)
Urban Outfitters, Anthropologie…

VF Corp (VFC)
North Face, Vans, Dickies, Timberlands, Reef, Jansport, Smartwool, Eastpak, Eagle Creek, Wrangler, Lee, Kodiak, Napapijri, 7 for All Mankind, Rock & Republic, Terra, Walls, Workrite…

Wolverine Worldwide (WWW)
Merrell, Sperry Top-Siders, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago, Chaco, Bates, HYTEST, Soft Style, and licensee of Cat® and Harley-Davidson®

Zumiez (ZUMZ)
Zumiez, Blue Tomato, Fast Times…

 

 

FIND MORE BRANDS AND STOCK SYMBOLS HERE

If the brand is foreign, you will likely have to buy the stock’s OTC ADR (Over-the-Counter American Depositary Receipt). In that case, put the company name in to Google along with “otc stock” and you should get a 3-5 digit symbol you can use to buy the shares in the US. Some broker’s (Vanguard, for example) won’t let you put the order in online and you will have to call them up to place the order. The upside is they can’t charge you the phone broker commission if they require it vs. ordering online.

 

 

STOCK IDEAS: Hidden Brand Names (Foods)

For fast browsing, hit Ctrl + F and search by brand. If you don’t see what you’re looking for,  just google the brand you’re interested in along with “owner”. Below you will see the Company name, Ticker/Symbol in parenthesis, and Brands they own. If it’s not already linked up, check out the company’s “Investor Relations” page for more info. This is by no means a complete list. The point is to get you to start looking for ideas anywhere you can and learning to dig up useful information.

 

Kraft Heinz (KHC)
Kraft, Heinz, A1 Steak Sauce, Classico, Bagel Bites, Capri Sun, Cool Whip, Crystal Light, Corn Nuts, Grey Poupon, HP sauce, Jell-0, Lea & Perrins, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia (the cream cheese, dumbass), Planters, Shake and Bake, Stove Top, TGI Friday’s (frozen), Weight Watchers Smart Ones, Velveeta…

General Mills (GIS)
Betty Crocker, Bisquick, Häagen-Dazs, Cascadian Farms, Fiber One, Lärabar, Old El-Paso, Pilsbury (fridge and frozen foods), Annie’s, Hamburger Helper, Bugles, Totino’s, Progresso, Fruit by the Foot, Green Giant, Yoplait, Gold Medal Flour, Blue Buffalo (pet food)…

PepsiCo (PEP)
Pepsi, Mountain Dew, Lays, Gatorade, Tropicana, 7-Up, Doritos, Quaker Oats, Cheetos, Lipton (co-owned with Unilever), Ruffles, Tostitos, Aquafina, Brisk, Sierra Mist, Starbucks (Ready to Drink), Kevita, Naked, Sabra, Life Wtr (maybe they left out letters in the name because they’re dehydrated?…stupid), Propel, Stacy’s, SmartFood Delight, Pure Leaf…

Mondelez International (MDLZ)
Cadbury, Chips-Ahoy!, Cheese Nips, Chiclets, Dentyne, Fig Newton, Halls, Nabisco, Nilla Wafers, Nutter Butters, Oreos, Premium Saltines, Ritz Crackers, Sour Patch Kids, Tang, Toblerone, Teddy Grahams, Trident, Triscuit, Wheat Thins…

JM Smuckers (SJM)
Smuckers, Jif, Folgers, Pilsbury (baking and frosting), Crisco, Five Roses, truRoots, Dunkin’ Donuts (home), Eagle Brand, Knott’s Berry Farm, Cafe Bustelo, Kava, Meow Mix, Milk-Bone, Kibbles n’ Bits, Pup-peroni, Snausages…

Conagra Brands (CAG)
Gardein, Slim Jim, Duncan Hines, Healthy Choice, Earth Balance, Marie Callender’s, Orville Redenbacher’s, Reddi Whip, Birds Eye, Vlasic, Boom Chicka Pop, Hunt’s, Frontera, Udi’s, Pam, EVOL, Aunt Jemima, Banquet, Peter Pan, Act II, Bertolli, RO*TEL, Hungry-Man, Blue Bonnet, Kid Cuisine, Chef Boyardee. Swiss Miss, La Choy, Log Cabin, Manwich, Mrs. Butterworth’s…

Hormel (HRL)
Hormel, Wholly Guacamole, Columbus, Applegate, Spam, Jennie-O, Lloyd’s Barbecue, Chi-Chi’s, Herdez, Don Miguel, Embasa, Justin’s, Evolve, La Victoria, Muscle Milk, Old Smokehouse, Skippy, Stagg Chili, Valley Fresh…

Nestle (NSRGY)
Carnation, Ovaltine, Nesquick, Nescafe, Nespresso, Taster’s Choice, Sweet Leaf Tea, San Pellegrino, Ozarka, Cheerios, Cookie Crisp, Golden Grahams, Shredded Wheat, La Lechera, California Pizza Kitchen (Frozen), DiGiorno, Hot Pockets, Lean Cuisine, Stoufer’s, Tombstone, Dreyer’s, Drumstick, Skinny Cow, Gerber…

Hershey (HSY)
Hershey, Reese’s, Kit Kat, York, Twizzlers, Jolly Ranchers, Pay Day, Rolo, Ice Breakers, Breath Savers, Milk Duds, Zero, Bubble Yum, Good & Plenty, Whoppers, Take 5, Heath, Mounds, 5th Avenue, Almond Joy…

Unilever (UL)
Lipton, Knorr, Hellman’s Best, Ben and Jerry’s, Marmite, PG Tips, Klondike, Breyers,  Popsicle. From the makers of Dove, Noxema, Axe, Q-Tips, Pot Noodle, Magnum, Brut,Vaseline…