March 2nd 2023 Free Analysis - ADIDAS

Hey MPA Investors!

MPA FAM!! Our community is almost 2 months old. Can you believe it? Time is crazy. With that I need to hear from you. Please reply to this email with any feedback you have. We made this email free because we want to increase the knowledge that everyday investors have. You shouldn’t have to be a big hedge fund billionaire to successfully invest in the market. And our newsletter is on a mission to even the playing field. So let me know how we’re doing.

That said, let’s jump right in :

THIS WEEKS' MOVERS SNAPSHOT

Adidas (Stock Ticker: ADDYY) - Did you know that Adidas is the second largest sportswear brand in the world? It’s second only to Nike. But having only about half of the market share Nike does means that it still has some growth potential.

Why ADDYY?

The sportswear market is expected to grow from $160.61 Billion in 2020 to $267.61 Billion in 2028. That’s an expected 67% increase over 8 years. Couple that with Adidas’ position in the market and signs are good for the company's long term.

Why we feel there’s a buying opportunity:

1. Adidas’s Q4 (sept-dec 2022) earnings report is set to be released March 3rd. IF we see positive earnings the stock is expected to go up.

2. Adidas was the official World Cup sponsor at the end of last year which will be accounted for in the Q4 earnings. And unlike Budweiser the World Cup beer sponsor, Adidas’s products were allowed in the stadium 😂. So we should see a positive impact from that.

3. 22% of the Adidas sales come from China. During the pandemic sales in China were hit hard due to the aggressive lock downs. Adidas China sales dropped from 22% of total sales before the lock down to 16% during. But now that China has dropped restrictions and lock downs we may see a recovery of those lost sales.

ADDITIONAL NOTE: All that said, we can’t skip over the elephant in the room when it comes to Adidas. Kanye West, Kanye, or Ye whichever you know him by. Adidas had a highly successful partnership with the rapper which ended after Adidas cut ties because of comments Kanye made. That results in $500 million worth of product that Adidas can’t do anything with in addition to the potential billion in lost sales. We may have already seen the emotional effects of that on the stock last year when it saw a 52 week low. But the financial effects may still be ahead. Still we feel there’s more to be gained from the China “rebound” than there is to be lost from the Kanye partnership.

CURRENT PRICE (as of this email): $73.46

TERMS YOU NEED TO KNOW

Bullish -  You may have heard of someone being considered “Bullish”. That relates to last the term in our last email “Bull Market”. To be Bullish on the market is to believe that overall the market is going in an upward direction.

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See you on Thursday!Thibaud & PhilipInteresting Investment Facts:  As of January 2013, 16 people born in the 1800s were still alive, according to a research group. With dividends reinvested, US stocks have increased 28,000-fold during their lifetimes.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.