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Can These Tech Stocks Deliver Profit?

Joe Samuel

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delivery stocks

In today’s world, there may be one thing may be perceived as a higher value than money, and that is convenience.  Over the past decade, we have seen a significant shift in consumer behavior, mainly due to technological advances, towards an on-demand consumer model.  This shift emerged with the start of e-commerce, beginning with the ability to order goods online to be delivered and it has now evolved to an era where one can order nearly anything without even getting out of bed.

Companies like Amazon (AMZN) and Netflix (NFLX) were at the forefront of this shift and their success could be largely due to seeing the value in providing consumers with convivence early on. 

But now, this on-demand industry is rapidly replacing traditional business models by providing consumers what they want, where they want and when they want.  The newest part of this model that has emerged is food delivery, and it may just satisfy an investors appetite.

Who’s Focusing On Delivering Profit For Investors?

ParcelPal Technology Inc. (PTNYF) (PKG) is a Canadian technology-driven logistics company purposed with connecting consumers to the goods they love through partner businesses, from food to clothes to even cannabis, all within an hour.  The company recently achieved a major milestone of completing over 2 million deliveries and announced its plans for further expansion throughout Canada and into the U.S.

Notably, ParcelPal has secured a work order contract with Amazon to fulfill package delivery on behalf of Amazon in 3 western Canadian markets and Evert, Washington.  The company has also entered key verticals with businesses in both alcohol and cannabis. ParcelPal has inked two delivery agreements with two Canadian cannabis companies, in which one cannabis delivery initiative went live mid-April.

ParcelPal will be hosting an investor update conference call on May 1st to review recent progress and that will be releasing its quarterly financial statements for Q4 FY2018 by April 30, 2019.

GrubHub (GRUB) is a leading online and mobile food-ordering and delivery marketplace that works with over 105,000 restaurant partners throughout the US. and London.  The company recently annouced its financial results for Q1 2019 which followed the momentum seen in 2018.  GrubHub reported revenues of $324 million, a 39% year-over-year increase Q1 2018’s $233 million, while gross food sales grew 21% to $1.5 billion year-over-year, up from $1.2 billion the year prior.

“We are extremely proud of our entire team for another fantastic quarter of execution – record new diner growth, thousands of new quality restaurants added to our platform and a sixth consecutive quarter of organic order acceleration.

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Even with our recent ramp in growth investments, adjusted EBITDA per order improved during the quarter, underscoring our ability to grow in a long-term sustainable manner,” said Grubhub Founder and CEO Matt Maloney.

Yum! Brands Inc. (YUM) is the parent company of well-known restaurant chains such as KFC, Pizza Hut, and Taco Bell.  The company entered the delivery space in late 2017 following its U.S. partnership with Grubhub for pickup and delivery service.  In this deal, Yum Brands also purchased $200 million of Grubhub’s common stock, giving it a not only a large vested interest in the company but also a seat on GrubHub’s board of directors.

“We are committed to making our iconic brands easier to access through online ordering for pickup and delivery, and aggressively pursuing delivery as a strategic global growth opportunity, with nearly half of our 45,000 restaurants already offering it today,” said Greg Creed, CEO, Yum! Brands, Inc at the time of the press release.

“We’re pleased to secure this partnership with Grubhub in order to drive incremental, profitable growth for our U.S. franchisees over the long term. Our partnership and strategic investment in Grubhub demonstrate our laser-like focus on two of our growth drivers: Distinctive, Relevant & Easy Brands and Unmatched Franchise Operating Capability.”

And The Usual Suspects?

Domino’s Pizza (DPZ) is the largest pizza company in the world based on retail sales, with a significant business in both delivery and carryout pizza. Through the company’s platform, Domino’s Anywhere, consumers have the convenience to order pizza through options such as Google Home, Amazon’s Alexa and Facebook Messenger. 

Last year, Dominos launched its Hotspot program that gave consumers access to have their orders delivered to hundreds of thousands of public areas as well and when the company reported earnings for that quarter revenues increased 25.8% to $161.2 million.

Most recently, a piloting a test of GPS driver tracking began in 27 corporate-owned stores throughout Phoenix, Arizona expected to extend into later markets this spring.  This new initiative allows consumers to track their order and driver and receive an estimated delivery time as well as text notifications.

McDonald’s (MCD) is the world’s leading global foodservice retailer with around 38,000 locations in over 100 countries.  Although McDonald’s technically doesn’t deliver, the fast food company teamed up with UberEats in the U.S. 2017, after trials in the Middle East and Asia, and now offers delivery through this exclusive partnership in over 8,000 locations worldwide.

McDonald’s reported Q1 2019 earnings of $1.78 per share in the on revenue of $4.956 billion versus expectations of $1.77 per share and $4.93 billion. Global comparable sales were 5.4 percent higher in the quarter, including a 4.5 percent increase in the U.S. market. 

The burger giant’s efforts to expand its delivery network with Uber Eats has been slower in the U.S than other markets, however that delivery checks were 1.5 to 2 times the size of an in-store check and that delivery was a $3 billion business globally for the company.

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MIDAM VENTURES LLC has been compensated $75,000 per month by a ParcelPal Technology, Inc. for a period beginning September 1, 2018 and ending February 1, 2019 to publicly disseminate information about (PTNYF/PKG) to publicly disseminate information about (PTNYF/PKG). Midam Ventures has been compensated $100,000 by Parcel Pal and has extended coverage to April 1, 2019. Midam Ventures has been compensated $100,000 by Parcel Pal and has extended coverage to May 1, 2019. We may buy or sell additional shares of (PTNYF/PKG) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. We own zero shares. Click Here For Full Disclaimer

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Stock Price Thursday Morning Update – May 16, 2019

Joe Samuel

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Did UPS Drop The Ball? The Biggest Missed Marijuana Industry Opportunity

Marijuana consumption has always been around. But it has always faced public image problems along with its legality. However, as US restrictions on marijuana use become looser, the opportunity for expansion in the industry becomes greater. The combination of convenience and increasing use of marijuana, globally, opens the doors for things like cannabis delivery services. Yet, only a handful of companies are really sinking their teeth into this niche of the marijuana industry and big shippers like UPS & FedEx are dropping the ball. That could mean big opportunities for first movers.

Click Here & Read The Full Article


U.S. Solar Industry Reaches Milestone With 2 Million Installations

The solar installations in the United States have reached a milestone with 2 million solar installations. In fact, the number of solar installations in the United States has officially surpassed 2 million, according to the latest data from Wood Mackenzie Power & Renewables and the Solar Energy Industries Association (SEIA). It is a breakthrough in the solar industry, as it took almost 40 years to install 1 million panels whereas it took only three years since then to reach 2 million.

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With the world up in arms for more control, companies are scrambling to find a solution. This one, newly publi company could have a solution to address a REAL problem for millions of people across the world

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U.S. Solar Industry Reaches Milestone With 2 Million Installations

Joe Samuel

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solar energy stocks

The solar installations in the United States have reached a milestone with 2 million solar installations. In fact, the number of solar installations in the United States has officially surpassed 2 million, according to the latest data from Wood Mackenzie Power & Renewables and the Solar Energy Industries Association (SEIA). It is a breakthrough in the solar industry, as it took almost 40 years to install 1 million panels whereas it took only three years since then to reach 2 million. It is estimated that in the next two years the figure would cross 3 million.

However, according to Wood Mackenzie it should have actually taken two years to reach the 2 million installation figure. The prediction is indeed weird as the installation of the same has been underestimated by most of the market analysts. Thus, growth is noteworthy.  There is a vivid explanation of the reason behind the prediction of Wood Mackenzie. The figures that we are talking about stand for the number of individual arrays – arrays on the roofs of homes which though comprise a minority of installed capacity, do make up the large majority of individual projects.

Challenges For Solar Power

For all its momentum, the U.S. solar market has not been without its challenges. Despite the decade of incessant growth feat, the U.S solar market collapsed in the first quarter of 2017. This was as a result of the decline in the residential solar market stemming from the decline of the SolarCity/Tesla. However, the market gained the drive and returned to the level it reached in late 2016.

There are several factors that constrained the growth according to Wood Mackenzie and SEIA. Tesla has acquired SolarCity and had dumped its door-to-door sales. Instead, it initiated sales through stores and online through websites. This resulted in the collapse in solar installation and Tesla’s market share.

Residential installations dropped 15 percent between 2016 and 2017, with Tesla’s share showing the most extreme decline during that period, dropping from 650 megawatts to 352 megawatts.  There also had been a substandard possession by SunEdison which compelled Vivint Solar to pull back its sales efforts resulting in a collapse in installations. Thus, the only company emerging triumphant was Sunrun thereby making it one of the three biggest U.S. residential solar companies not to pull back from the market.

Trying extremely hard to grow with lower prices, Tesla has managed to gain customers online, thereby setting pressure of its counterparts. Success in gaining more customers, that too at lower costs, shall determine the time frame the industry would require to install its next million systems — and at what price. Largely due to the challenges of customer acquisition cost, Wood Mackenzie predicts residential growth at just 3.3 percent in 2019.

Despite This, Solar Is Starting To Shine

According to the forecast by Wood Mackenzie, the United States will reach 3 million solar installations in 2021, and 4 million in 2023.  “The rapid growth in the solar industry has completely reshaped the energy conversation in this country,” said Abigail Ross Hopper, president and CEO of trade group SEIA. “This $17 billion industry is on track to double again in five years, and we believe that the 2020s will be the decade that solar becomes the dominant new form of energy generation.”

Looking at a bigger picture, the decline in the costs for lithium-ion batteries and a switch to time-of-use rates, the residential solar companies have started making provisions storage systems along with solar systems. This makes storage a prerequisite as one penetrates deep in key markets.

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Did UPS Drop The Ball? The Biggest Missed Marijuana Industry Opportunity

Joe Samuel

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on

Marijuana consumption has always been around. But it has always faced public image problems along with its legality. However, as US restrictions on marijuana use become looser, the opportunity for expansion in the industry becomes greater. The combination of convenience and increasing use of marijuana, globally, opens the doors for things like cannabis delivery services. Yet, only a handful of companies are really sinking their teeth into this niche of the marijuana industry.

The biggest hurdle for a cannabis delivery service stands on the federal legalization of marijuana. While individual states are legalizing the medicinal and recreational use of marijuana, it is still considered illegal federally. This is significant because it makes interstate trade extremely difficult to the point where it isn’t worth the risk.

Limited Options For Cannabis Delivery

You cannot get marijuana shipped using USPS as they are a federal agency, nor can you utilize UPS, FedEx, or other private shipping companies. This is due to the Department of Justice looking into previous drug malfeasance in 2014. Additionally, the employees for private services can technically go through packages and either take your illegally transported marijuana or report you for financial incentives.

Marijuana industry giants like Canopy Growth (CGC) and Aurora (ACB), haven’t really focused on developing a delivery service. This is because as legality spreads across the continent, so does the delivery range of marijuana mailings. It may take resources and time to develop a delivery service, but the reward could be unimaginable. Take a look at the restaurant industry. When online delivery blew up, it experienced a growth of 300% compared to dining in according to QSR Magazine.

There Are Delivery Options Available – A Good Opportunity For Investors?

Given the industry, investors should consider that this is a very early stage in this particular niche of delivery. Being that very few public companies are entering the space, it may be hard to find a diverse pool of options. But for early marijuana stock investors, they already know all too well that first-mover advantage could be key to grabbing onto an early trend.

Driven Deliveries (DRVD) is a delivery service company for legal marijuana products. While limited in the areas it can reach, the company has grown its business out across California and has been spreading into Nevada and other states. Controlling the California market is huge given the state has the largest marijuana market in the US. It helps the company prepare for less dense markets once they are able to handle California’s market size. The growth for potential is massive as more states begin to flip to pro-marijuana delivery.

To this end, Driven Deliveries just went into expansion mode. It has successfully launched operations in Nevada with Shango Marijuana Dispensary, one of the most successful stores in the State.  The new endeavor provides Driven with a monumental opportunity to serve Las Vegas, the largest market in the State with massive tourism, and a central launch point for additional markets throughout Nevada.

The Nevada cannabis market has been growing at a rapid pace.  Nevada retailers sold approximately $530 million worth of medical and recreational cannabis in 2018.  The $44.1 million in monthly revenue represents a 35% increase when compared to monthly revenue in 2017. According to New Frontier and Arcview Market Research, annual legal cannabis sales in the state are projected to grow to an estimated $629.5 million by 2020.

Investors are Starving for this Tech

Investors’ appetite for such delivery service companies seems to be insatiable. Take DoorDash for example. The company competes with GrubHub and Uber Eats but recently tripled its valuation in only about 5 months to $4 billion despite not even being profitable.

Moreover, Uber Eats owns about 20% of the market while GrubHub, including Seamless and Eat24, has 52% market share. And even in the face of that steep competition, DoorDash has raised nearly $1 billion overall to date. This should give you an idea of just how hungry investors are for on-demand service companies.

Even Chinese investor and WeChat owner, Tencent, is looking to get involved in the food-technology sector in a big way by contributing a significant piece of a $500-$700 million raise for India’s Swiggy. The investment would value Swiggy at $2.5-$3 billion. Another app called Rappi is a Colombian on-demand delivery startup that recently brought in a new round of funding at a valuation north of $1 billion. How will you play the cannabis delivery stock evolution?

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