Blog - Mid-Week Stockbits August 7th, 2019

Mid-Week Stockbits August 7th, 2019

Aug 7, 2019

Disney Downed by Fox

Disney (DIS) announced its first earnings report since fully owning 21st Century Fox where profits missed analyst estimates. Disney blames the underperforming X-Men movies for lower than expected profits, but remain optimistic that the purchase of Fox will pay dividends in the long run. In the meantime, Disney prepares to launch its streaming service called Disney+ in November 2019. Having recently announced that they would be offering a bundle including Disney+, ESPN+ and Hulu for $12.99/month. Disney already dominates the big screens, now they take aim at Netflix (NFLX) and the in-home streaming services.

Apple Begins Rollout of Goldman Sachs Partnered Credit Card

Apple (APPL) has begun rolling out its credit card to a small group of users in the United States. The much-anticipated card was announced in the Apple conference in March, offering no late fees, annual fees and several other features. Apple has partnered with Goldman Sachs (GS) to bring the Apple Card to life, with Mastercard (MA) handling the payment processing. As iPhone sales begin to slow, Apple is venturing into new territory to help boost revenue. The wearables and accessories division of the company carried Apple through Q2 and it remains to be seen if The Apple Card and subscription services can lend a hand.

The U.S. and China Battle it Out

The US-China trade war has taken another turn over the past week with Chinese government responding to US tariffs by lowering the value of its currency (the Yuan). This move makes 1 USD = 7 Yuan, making the Chinese currency the weakest it has been in over a decade. This move offsets some of the imposed US tariff impacts and allows goods in China to become more competitive in the global marketplace. The trade war is hurting both sides, and the markets have taken a drastic hit because of it. On Monday, all three major indexes (Dow Jones, NASDAQ Composite, and S&P 500) endured their largest daily percentage drop of the year.

FinCanna Advances Capital

Yesterday, FinCanna Capital (CALI) announced it has advanced the second tranche of capital of US$875,000 further to its Royalty Agreement with portfolio company QVI Inc. QVI is experiencing strong demand for its services and based on existing MOU’s, its first 12-month revenue upon commercial production is projected to meet or exceed US$7 million. Revenue is expected to increase substantially as operations and marketing efforts utilizing the founders’ wide network of industry participants is activated. “We are very pleased to advance the 2nd tranche of capital as the QVI team continues to execute,” said Andriyko Herchak, CEO of FinCanna Capital. “Our investment will support the team in completing construction on their industry-leading facility as they move towards commercial launch later this summer. We are impressed with the potential for rapid scalability which will have a strong impact on our bottom line.” The cannabis market is projected to continue increasing and FinCanna Capital finds themselves in an ideal situation to continually grow and adapt with the sector.