Personal Power & Investment Opportunities for You
/I trust that you are staying healthy - physically, emotionally, financially, and spiritually - as true wealth encompasses all facets of your life. My prayer for you is that on this day, you remember how much life you have in front of you. Amidst all the pain, disappointment, and anger for what is happening around us, the fact that you’re reading this email means that you have a bright future head - I believe in the personal power of you!
First, Charisse Says member Christian Coon, who is a pastor at Urban Village Church (woot woot - my home church), launched a podcast earlier this year called “You See Me,” where members of our church can stay connected with each other as well as with other people interested in learning and growing. Christian invited me to share my take on wealth, and I thought you might enjoy hearing the conversation too. So, have a listen to our interview as I talk faith, wealth, entrepreneurship, and living into your purpose. Oh, and there’s an ode to Issa Rae, for you fellow fans! Christian is taking full heart to this year of “Connection,” which I encouraged you to think when we started 2020. Congrats Christian for being so purposeful! Let’s continue to support the members of our Charisse Says community.
So, I have a question for you:
How are you being in connection to the people and wealth goals that you want this year, especially now in our COVID-19 reality?
Drop a comment below to share your experiences.
Second, over the past week, I’ve also reflected on several specific companies that have been particularly affected by COVID-19, and could influence your own investment strategy and put money in your pocket.
J. Crew - As you may have heard, J. Crew is going bankrupt, and while you can still shop and buy clothes there, the company will now focus on how it can restructure itself. Back in the early 2000s, I was an avid J. Crew shopper, and thus this bankruptcy hits me personally. That said, I haven’t bought a piece of J. Crew clothing in MANY years. The New York Times reported in “The Pandemic Helped Topple Two Retailers. So Did Private Equity” how J. Crew’s private equity investors failed the company. Private equity firms TPG and Leonard Green & Partners basically loaded the company with debt, thereby preventing the company from making investments in its online presence and supply chains, as well as invest in changing consumer behavior. So, what’s the lesson here? As you look at your own portfolio of public stocks, which ones are over-burdened with debt, which hamstrings them from their ability to invest or pay back money to shareholders. And, for competitors to J. Crew that are public (e.g. GAP), are they positioned to crush J. Crew and take more market share as the overall retail clothing sector goes through changes.
McDonald’s - In the Wall Street Journal’s “What Doesn’t Kill Fast-Food Chains Will Make Them Stronger,” article a few days ago, I found out that McDonald’s said that about “90% of recent U.S. sales have been via the drive-through. In normal times, it accounts for about two-thirds of sales.” I was the crazy person, and dragged hubby with me, that waited last night in a McDonald’s drive-through to get a baked apple pie - ooooh, so good. I needed to get out, and I needed two $1.39 baked apple pies. So, if you’re like me, you might find yourself in a McDonald’s drive-through too. In providing consistent drive-through service, while its in-dining service is closed, it is able to also reduce its expenses. It’s times like these that you should ask yourself if there are several companies that you want to buy for the long-term, and you’re seeing them adopt positively in this short-term. McDonald’s just might be a company that exhibits a V-shaped recovery.
Grubhub. Yes, Uber (because of its Uber Eats division) put in an offer to buy Grubhub. Makes sense, right? Not everyone is impressed, as outlined in a Forbes article, Uber’s Grubhub Play: A Desperate Bid To Save A Business Everyone Hates. I’m sure you or someone you know has used (or have used) either food delivery service providers in the last few months. Below, check out the stock chart (TICKER: GRUB). Kind of scary, right? Grubhub was trading at $145 just last July, and was trading at approximately $46 before Uber’s $60 offer. Whoa! What’s in it for you? During this time of the stock market being in the toilet, are there companies that you think will be purchased? This is indeed a strategy some investors assume. This is not for the faint of heart, because you will buy-up shares of companies that you believe are bargains for target acquirers.
I hope you have a wonderful week. And, if you are a fellow mom, keep celebrating motherhood, building from your special day last week - Mother’s Day is every day. I sure will!
Until next time, stay healthy!
