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Here’s What Happens When Two Multi-Billion Dollar Megatrends Collide

A bridge is said to be emerging between the $7-billion megatrend plant-based foods industry and the global market for sports nutrition and supplements, expected soon to be worth $35 billion.
Boosted even further by the COVID-19 crisis, we think…

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A bridge is said to be emerging between the $7-billion megatrend plant-based foods industry and the global market for sports nutrition and supplements, expected soon to be worth $35 billion.

Boosted even further by the COVID-19 crisis, we think this bridge forms one of the most attractive investment narratives we’ve seen in years.

It leads to what could be a brand new segment of both rapidly growing industries, with potential first-mover advantage going to whoever can crack a crucial code: How to make plant-based proteins as effective as the animal-based proteins that have, until now, dominated this market.

The sports nutrition supplements industry is now on track to reach $9.7 billion by 2027, and its protein segment alone could hit $3.1 billion.

On the other side of this bridge, the plant-based food industry is muscling its way into the estimated $4.3-trillion e-commerce segment, as new entrants not only look to threaten to disrupt the traditional food industry …

They’re also aiming to become the Amazon of niche plant-based offerings, much like Chewy.com did for pet supplies, outshining Amazon itself in the segment.

Until recently, no one has been able to crack the plant-based protein code to the satisfaction of the muscle-bound sports industry.

The company that we think finally did it landed itself an exclusive contract with one of the most popular brick-and-mortar sports nutrition stores: GNC.

And it’s about to launch on Amazon’s Launchpad platform.

The company is PlantFuel Life Inc (CSE: FUEL; OTC: BLLXF) … and with $3.9 million in initial purchase orders from GNC, celebrities from both the NFL and the music industry are joining the team.

And they’re not just brand ambassadors for a bridge between these growing industries …

They’re strategic investors.

The Numbers Behind Our Favorite Industry Bridge

Last year saw double-digit growth in the plant-based foods industry. Up by 27% in a single year, the plant-based food market grew almost twice as fast as the U.S. retail food market, which only saw a 15% increase in 2020--even as consumers stocked up on food for pandemic lockdowns.

Nearly 57% of American households now buy plant-based foods.

Analyst Kyle Gaa of the Good Food Institute called 2020 a “breakout year for plant-based foods”, citing “incredible growth” surpassing expectations.

SPINS head of retail Dawn Valandingham likewise noted that 2020 data indicates that retailers “should now assume everyone is a potential plant-based buyer”.

And while many consumers are looking for products that are better for them, the equally booming sports nutrition and supplements industry has also become a critical plant-based focal point. The global sports nutrition industry not only hit $10.7 billion last year, but it’s also expected to continue on a compound growth trajectory.


And if you add supplements to that, you’re looking at an anticipated industry value of over $35 billion by 2025.

The COVID-19 crisis appears to have sold consumers on the idea that the pandemic “proves that humans need to eat fewer animals”. And the market looks to have responded to these consumer interests with an aggressive level of ambition that has opened up some of what we think are the best investment--and most disruptive--opportunities in decades.

In minimal time, some plant-based stocks have increased to multi-billion-dollar valuations, and netted investors attractive rewards:

1) Beyond Meat (NASDAQ:BYND) now has a $6.65-billion market cap.

2) Oatly (NASDAQ:OTLY) has topped $9-billion.

3) Tattooed Chef Inc (NASDAQ:TTDF) is up over 98% since its launch 5 years ago and now boasts a $1.6B market cap.

4) United Natural Foods (NYSE:UNFI), the key supplier to Amazon’s Whole Foods, has given investors over 100% returns in a year.

5) YUM! Brands (NYSE:YUM), which is now focused on a plant-based menu, has worked its way to an astounding $38B market cap.

PlantFuel CEO Brad Pyatt, a former NFL player himself, defines this industry trend as a much wider “active lifestyle” trend that is estimated as $53 billion--and counting.

What Peloton did for fitness...

What Oatly has done for plant-based milk …

What Beyond Meat has done for the vegan industry …

PlantFuel (CSE: FUEL; OTC: BLLXF) plans to do as it looks to bridge the $7-billion plant-based industry with the expected $35-billion sports nutrition and supplements industry.

The Breakthrough Premium

The PlantFuel launch in GNC stores earlier this month features five new products including All-in-One Pre-Workout, All-in-One Nutrition, All-in-One Recovery, Performance Protein, and Daily Immunity and Hydration.


In our view, this isn’t just another protein drink, either.

This is rooted in science and cutting edge technology. PlantFuel says it uses clinically proven and scientifically validated ingredients for optimal performance.

Not only have they created a protein powder that we think actually tastes good, but they’ve done it with premium plant-based ingredients.

The company is also conducting research to demonstrate its plant-based protein is just as effective as animal-based protein, or whey.

America is obsessed with protein--and it’s no longer the purview only of bodybuilders and athletes. Two out of every 5 Americans say they consume protein drinks and shakes. It’s a national obsession, but it has its own set of nutrition problems.

Whey--a byproduct of turning milk into cheese--may not be all it was initially cracked up to be. Some say dairy-based protein isn’t healthy. Beyond the digestive issues that can be caused by dairy and highlighted by the growing trend to give up dairy altogether, many protein drinks out there could contain toxic elements that pose great health risks.

But whey has long had one advantage: It’s animal-based amino acids have always out-performed their plant-based peers.

That’s where PlantFuel believes it can do the impossible, and that’s the key to owning this emerging market.

PlantFuel’s science-based product is premium in more ways than one: They’ve added amino acids that they say match those found in whey … and they’ve also added performance mushrooms.


Now on offer, with a lineup of new products still to come …

1) All-in-One Nutrition features 20g of complete plant-based protein plus 29 fruits and vegetables, as well as clinically studied Wellmune® beta glucan for immune system health to provide you with complete nutrition on the go. The initial flavor offerings include Chocolate and Vanilla.

2) Performance Protein delivers 20g of complete, plant-fueled protein with added vegan-fermented BCAAs as InstAminos® and PeakO2® performance mushrooms. The initial flavor offerings include Chocolate and Vanilla.

3) All-in-One Pre-Workout uniquely features patented 3DPump -Breakthrough™ with vegan-fermented citrulline, glycerol and Amla fruit extract to support exercise performance, recovery and nitric oxide; along with 250mg of Purcaf® Organic Caffeine plus 85mg of Dynamine® to increase perceived energy and alertness. The initial flavor offerings include Fruit Punch, Watermelon and Blue Raspberry.

4) All-in-One Recovery provides vegan fermented BCAAs as InstAminos® with essential amino acids as vegan Amino9® plus vegan CreaPure® Creatine and BetaPrime® to reduce soreness and recovery time, and optimize muscle protein synthesis. The initial flavor offerings include Blood Orange and Berry Breeze.

5) Daily Immunity + Hydration features clinically proven ingredients Wellmune® to strengthen the immune system, and Aquamin™ calcified sea algae to provide superior hydration benefits. PlantFuel® Daily Immunity + Hydration is the proven choice to fuel your daily active lifestyle. The initial flavor offerings include Citrus Burst, Tropical Punch and Raspberry Lemonade.

Celebrities Join The ‘No F***ing Whey’ Campaign

We think nothing heralds the launch of a company looking to bridge two massively growing industries like a celebrity buy-in.

On August 31st, PlantFuel (CSE: FUEL; OTC: BLLXF) announced strategic investments by NFL Hall of Fame Wide Receiver Terrell Owens and Rap Superstar Lil Yachty, adding even more excitement to the retail launch of this premium brand.


Former NFL star Terrell Owens

"As everyone knows, throughout my professional career I've been in phenomenal shape and extremely conscious about what I put in my body," said former NFL star Terrell Owens. "From Day 1, I was thoroughly impressed by my exploration of PlantFuel and its products. I am excited about my partnership with PlantFuel and delighted to join their team."

For Lil Yachty, PlantFuel is his second deal with his newly launched VC fund, Scoop Investments.

NFL and music industry celebrities add even more power to PlantFuel’s management team. PlantFuel was founded by a former NFL player, as well, and is being led in its marketing efforts by a former business development leader for Amazon.

PlantFuel’s founder and CEO is former NFL player Brad Pyatt, who previously has already built one $200-million empire.

And this isn’t his first foray into the vegan world: With his wife, Pyatt built TruWomen, which won the Mindful Award for best vegan protein bar of the year award in 2020.

PlantFuel President Marie Dane comes from various business development roles with Amazon, having led some of Amazon’s global partnership deals, including Johnson & Johnson and Kimberly Clark.

And Chairman of the Board Brian Cavanaugh gives us the GNC distribution connection--and a whole lot more … As a former GNC executive, Cavanaugh held executive merchant and brand accountability encompassing $1.6 billion in revenue across GNC offline and online stores.

A Push For Brick-and-Mortar and E-Commerce Presence

On August 31st, PlantFuel products launched on GNC.com, and on September 8th, its products hit the brick-and-mortar stores in a platinum partnership.

And that comes along with a GNC deal to initially purchase $3.9 million in PlantFuel products.

In October, PlantFuel will be on Amazon’s exclusive Launchpad Platform.

And it looks to be all about top-tier marketing, which includes the celebrity line-up and a style that says both “cool” and “smart”.

"We know exactly who we are and exactly what we are not," comments Pyatt. "We have assembled a team of brand experts and agencies to create and drive the brand forward. We will utilize a variety of traditional and non-traditional marketing tactics to build our brand platform."

PlantFuel's “No F***ING Whey Campaign” has been featured on billboards, and on ESPN radio and several other media outlets since mid-August.

Early-in on the ‘Impossible’

So far, we think everything has lined up for this company that is looking to do the impossible in creating a bridge between two multi-billion-dollar megatrends:

1) It’s got what we think is a tier one management team for a microcap Company, with experience in driving brands from $0 to $100m in sales.

2) It’s got a line-up that includes celebrity investments

3) It’s got products they believe will finally compete with whey and promise to capture the American protein obsession

4) It’s got built-in distribution channels with connections to leadership levels of Amazon and GNC

5) It’s already has $3.9 million in intial product orders from GNC … just for starters

6) And the company reports it’s got money in the bank, with a $2 million credit facility to fund inventory and its recent close on a $3M equity raise on August 9th.

We think PlantFuel (CSE: FUEL; OTC: BLLXF) is fueled up, ready to go and hitting the starting blocks with a product that could easily disrupt a sports nutrition and supplements industry that’s already headed to an estimated $35 billion. It’s one of those new industry segment niches that we believe could end up rewarding early-in investors nicely.

Other companies taking on the health and wellness niche:

Yum! Brands (NYSE:YUM), though not traditionally associated with health and wellness, is racing to grab a piece of this multi-trillion-dollar trend. Kentucky Fried Chicken, the fast-food megalith, is diving in headfirst to offer its loyal customers a taste of the vegan lifestyle. Teaming up with the meatless sensation Beyond Meat, KFC has launched a line of chicken-less ‘chicken nuggets’ that have been a huge hit across the globe.

Already the meatless fried chicken alternative is offered in the UK, China, across Europe, Canada, and the United States, and thanks to its success, it will likely continue to expand this offering across the globe. While nailing the iconic texture and flavor of KFC’s chicken without meat was no easy feat, the new vegan alternative has been wildly successful.

“I’ve said it before: despite many imitations, the flavor of Kentucky Fried Chicken is one that has never been replicated, until Beyond Fried Chicken,” Andrea Zahumensky, chief marketing officer at KFC.

Ingredion Inc (NYSE:INGR) is a food ingredient and nutrition company that provides customers with innovative, value-added ingredients for many different industries. The company's portfolio includes sweeteners, starches, proteins and nutrients such as dietary fibers to improve functionality in foods. Ingredion manufactures these products at its facilities located across the globe including Europe, Asia Pacific and North America.  

Their customer base is comprised of companies who manufacture various types of foods ranging from baked goods to dairy products and more. They are also involved in providing solutions like bio-based plastics for package films used by manufacturers around the world.   In addition to their focus on innovation, they are committed to sustainability; using renewable resources wherever possible as well as implementing sustainable practices into their manufacturing processes.

Tattooed Chef Inc (NASDAQ:TTCF) is a small-batch food company that specializes in handcrafted, vegan entrees and desserts. They are committed to providing healthy alternatives to the standard American diet without sacrificing flavor or quality. Tattooed Chef's owner, Nora Dolan, started cooking vegetarian dishes for her friends when she was only ten years old and continued developing her skills with every dish she made.

Tattooed Chef grows, manufactures, and processes fresh and frozen foods. And even better, the products are sourced sustainably with many of the products coming from Italy. The brand looks to cater to every type of consumer, from those concerned about the environment to those focused on building and living a healthy lifestyle. Whether consumers are looking a great-tasting buffalo chicken alternative or a healthy acai bowl for breakfast, Tattooed Chef offers a wide array of delicious snacks for the conscious eater.

SunOpta, Inc. (NASDAQ:STKL) is a company that specializes in the production of dried fruits and vegetables for their customers worldwide. They offer an array of products that include: raisins, apricots, blueberries, blackcurrants, cranberries, figs, and dates. They also have organic options for all of these products as well as other dried fruit varieties like apples and pears. 

SunOpta has been around since 1916 when they first started in San Francisco with just 3 employees working to produce raisins on a small scale basis. Nowadays they have over 1000 employees at facilities located in California and Oregon producing about 500 million pounds each year!

SunOpta is not going to be left out of the sustainability boom, either. In fact, it’s an integral part of the company’s business. With a plantform built to benefit not only shareholders, but also the environment, SunOpta checks all boxes for the conscious investor. 

Laird Superfood Inc (NYSE:LSF) is a small company that produces nutritious, all-natural, and organic food. They are looking for ways to expand their business into new markets and increase the amount of profit they make on each product. As a result, Laird Superfood Inc has begun exploring whether or not they would be able to sell their products in bulk wholesale quantities at less than retail prices to companies such as restaurants, grocery stores, schools, colleges and universities.

The idea behind this is that by supplying these larger organizations with large quantities of food at reduced rates could help them save money in the long run while still providing quality food. This strategy also allows Laird Superfood Inc's company more exposure and increased opportunity for growth.

With products ranging from specialty creamers to coffee and instafuels, Laird Superfoods has made major waves with consumers looking for an extra boost to get their day going. And it’s drawn a lot of attention from investors in the process. 

Though not exclusively engaged in the sale of plant-based products Tyson Foods (NYSE:TSN) is another company with a plant-based twist. It offers a wider selection of products available for both meat-eaters and plant-based diets. This is incredibly important in a time when almost 98% of consumers who buy plant-based products also buy animal meat.

Tyson is set to win big as a growing number of Americans begin to identify themselves as “flexitarian”, or people who still eat meat, but more often choose vegetarian options. While the “vegan wave” grabs more headlines, the reality is that many more consumers fall somewhere in the middle. And that’s great for Tyson, which offers an array of products that will tickle the tastebuds of a wide variety of customers – with a sustainable twist.

In a release, the company noted, “Tyson Foods is committed to sustainably offering the protein and food products that consumers want. Through the introduction of its Raised & Rooted™ brand of plant protein and blended protein options including burgers and nuggets, Tyson Foods has become the largest U.S. meat producer to enter the growing alternative protein segment.”

United Natural Foods Inc (NYSE:UNFI) is a public company that operates as a distributor of natural, organic and specialty foods in the United States and Canada. UNFI distributes more than 25,000 products to over 60 million people in North America every year. They offer both conventional and natural food lines for retailers across the country with their distribution network consisting of 43 warehouses located throughout North America. The company's headquarters are based out of Lake Success, NY where they also operate one warehouse location which serves as an international import center for all imported goods into the US market. UNFIs customers include grocery chains such as Whole Foods Market Inc., Wild Oats Markets LLC and Target Corporation.

From all-natural vitamins, snacks and meats to innovative tech solutions for small and large businesses alike, United Natural Foods Inc is a one-stop shop for all natural food needs. And its smart approach to the industry has paid off. Year to date, the company has seen its share price nearly double, suggesting that investors are digging what it’s doing.

Recently, United Natural Foods added Sandy Douglas as their CEO. Mr. Douglas is a veteran in online sales and digital marketing, skills that can make or break a company as the world races towards an increasingly online lifestyle. “We are pleased to welcome Sandy as our new CEO and member of the UNFI Board,” said Ms. Denise Clark, Chair of the Board’s Nominating and Governance Committee and CEO Succession Planning Committee. “He has a demonstrated track record leading large-scale transformation and growth through strategic, customer-focused action. His extensive experience, which is directly aligned with UNFI’s focus on growing the core business while investing in innovation, make Sandy well-suited to successfully drive the Company through its next chapter of growth.”

Hormel Foods Corp (NYSE:HRL) is a multinational company that specializes in the production of food and meat products, such as bacon, ham, sausage, lunchmeat, hot dogs and canned meats. The company operates through two segments: Grocery Products and Packaged Meats. Hormel's headquarters are located in Austin Minnesota; it also has offices around the world including San Rafael California and Shanghai China. 

Hormel produces canned meat products like Spam and Skippy, as well as frozen foods like Jennie-O Turkey Store and Hormel Compleats. The company was founded in 1891 by George A. Hormel who started the business with his invention of a new process for canning pork in 1869 that allowed him to sell it throughout the country without the worry of spoilage or waste due to the lack of refrigeration at the time.

Though Hormel Foods made its name with meat products, it’s not going to get left out of the plant-based boom, either. In September 2019, Hormel launched its flagship plant-forward brand, Little Happy Plants. “We understand consumers across a spectrum of lifestyles are adopting more flexible attitudes and behaviors when thinking about food, especially given the wide variety of products available in the marketplace. We intend to focus on all the ways plants can help consumers find alternatives in their food routines,” explained Jim Splinter, group vice president of corporate strategy at Hormel Foods. 

Primo Water Corporation (TSX:PRMW) is a Canadian company that has been around for over 30 years. They are committed to providing high quality water while also keeping prices low. Primo has grown and continues to grow in popularity, with their products being sold across North America.

Primo's commitment to customer service is second-to-none, with the staff going above and beyond on a daily basis in order to provide excellent customer service. Primo strives for transparency when it comes to their production process, which ensures consumers know exactly what they're getting from every bottle of Primo water they buy. 

Restaurant Brands International Inc. (TSX:QSR) is the world's second largest fast-food company with over 36,000 restaurants in 100 countries and territories worldwide. It was founded by two Canadian businessmen, who at the time were franchisees of Tim Hortons restaurant chain in 1964. The company operates as a holding company for its subsidiaries that operate quick service restaurants. An example of these would be Burger King and Popeyes Louisiana Kitchen brands which are both well known for their chicken dishes made from fresh ingredients on site daily. RBI has also been ranked among the top 10 most sustainable companies globally by the Sustainability Accounting Standards Board and Dow Jones. 

Premium Brand Holdings (TSX:PBH) caters to the food manufacturing industry with a focus on healthy, organic and sustainable ingredients. They offer niche brands that compete in the natural and specialty foods markets as well as established national brands. Their portfolio includes high-quality products including gourmet organic coffee, all-natural protein supplements, gluten free crackers and nut butters.

Premium Brand Holdings is dedicated to delivering their customers with an exceptional customer experience by providing them with premier products at competitive prices while maintaining an ethical approach to business practices. Its commitment is to provide a safe environment for consumers of all ages through sound quality assurance standards and strict adherence to federal regulations governing product safety. Premium Brands Holdings also takes pride in its contributions towards sustainability by offering environmentally friendly packaging solutions.

Burcon NutraScience Corporation (TSX:BU) is a Canadian tech firm rethinking the plant-based diet. With a focus on high-purity, sustainable, flavorful, and affordable products, Burcon has checked every box in the consumer’s book. Founded way back in 1998, the company has been at the forefront of the movement for over two decades, and it’s only become more refined since.

According to its mission statement, Burcon “seeks to improve the health and wellness of global consumers through the discovery and development of sustainable, functional and renewable plant-based products for the global food and beverage industries.”

Else Nutrition Holdings Inc. (CSE:BABY) is another innovative plant-based lifestyle company from Canada. Else Nutrition has taken a different approach than many of its competitors, targeting a particularly young market – babies. Else was a first-mover in this space, offering a well-rounded, clean, sustainable and most importantly, plant-based, approach to baby food.

Their products aim to deliver al of the same benefits as typical baby food, but with an organic twist. In fact, 92% of their products are made from three core healthy ingredients, almonds, tapioca, and buckwheat. And the best part, is they never alter the plants’ chemistry or remove any of the micronutrients, they just alter the texture.

By. Josh Owens

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements / This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the products of PlantFuel Life Inc. (“PlantFuel”) can help bridge the gap between plant-based food industry and the global market for sports nutrition and supplements; that the plant-based food industry and global sports nutrition and supplement market will continue to grow substantially; that a new health and nutrition segment will develop and continue to grow which PlantFuel’s products will serve; that the sports nutrition and protein supplement segments will continue to grow substantially and will evolve to adopt plant-based supplements; that PlantFuel can develop a plant-based protein that is as effective as animal-based protein generally and whey protein in particular; that PlantFuel can gain first mover advantage in these developing segments; that PlantFuel can achieve sales of its products and gain market share in the sports nutrition and protein sectors; that PlantFuel can leverage support from celebrity investors to help generate sales and consumer interest in its products; that PlantFuel can achieve additional and ongoing orders from GNC and obtain sales on the Amazon Launchpad platform as anticipated; that PlantFuel can develop revenues in other brick and mortar stores and also online via ecommerce marketing efforts; that PlantFuel can continue to develop products that achieve market acceptance and consumer adoption. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that PlantFuel’s products may not help to bridge a gap between plant-based food industry and the global market for sports nutrition and supplements as anticipated or at all; that the plant-based food industry and global sports nutrition and supplement market may not continue to grow as anticipated and that plant-based products may remain less popular than animal based products and supplements, particularly in mainstream athletics and sports nutrition; that the sports nutrition and protein supplement segments fails to grow as anticipated or continues to favour whey based supplements and animal based competing products; that PlantFuel may fail to obtain any first mover advantage in developing its plant-based protein or be unable to gain any advantage over larger and more developed competitors with more established brands; that PlantFuel’s products may be found less effective than animal-based protein generally and whey protein in particular; that PlantFuel may be unable to achieve ongoing sales of its products or gain sufficient market share in the sports nutrition and protein sectors to achieve commercial viability; that PlantFuel may be unable to achieve any significant competitive advantages from celebrity endorsements; that PlantFuel may fail to secure additional and ongoing orders in brick and mortar stores or online; that PlantFuel may be unable to develop its business due to insufficient financing or an inability to raise funds in the future; that PlantFuel may be unable to develop new products that achieve market acceptance or consumer adoption. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by PlantFuel but may in the future be compensated to conduct investor awareness advertising and marketing for CSE:FUEL. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of PlantFuel and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities. 

NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.

ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.

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Analyst reviews Apple stock price target amid challenges

Here’s what could happen to Apple shares next.

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They said it was bound to happen.

It was Jan. 11, 2024 when software giant Microsoft  (MSFT)  briefly passed Apple  (AAPL)  as the most valuable company in the world.

Microsoft's stock closed 0.5% higher, giving it a market valuation of $2.859 trillion. 

It rose as much as 2% during the session and the company was briefly worth $2.903 trillion. Apple closed 0.3% lower, giving the company a market capitalization of $2.886 trillion. 

"It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," D.A. Davidson analyst Gil Luria said at the time, according to Reuters.

The two tech titans have jostled for top spot over the years and Microsoft was ahead at last check, with a market cap of $3.085 trillion, compared with Apple's value of $2.684 trillion.

Analysts noted that Apple had been dealing with weakening demand, including for the iPhone, the company’s main source of revenue. 

Demand in China, a major market, has slumped as the country's economy makes a slow recovery from the pandemic and competition from Huawei.

Sales in China of Apple's iPhone fell by 24% in the first six weeks of 2024 compared with a year earlier, according to research firm Counterpoint, as the company contended with stiff competition from a resurgent Huawei "while getting squeezed in the middle on aggressive pricing from the likes of OPPO, vivo and Xiaomi," said senior Analyst Mengmeng Zhang.

“Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now," he said.

A man scrolling through Netflix on an Apple iPad Pro. Photo by Phil Barker/Future Publishing via Getty Images.

Future Publishing/Getty Images

Big plans for China

Counterpoint said that the first six weeks of 2023 saw abnormally high numbers with significant unit sales being deferred from December 2022 due to production issues.

Apple is planning to open its eighth store in Shanghai – and its 47th across China – on March 21.

Related: Tech News Now: OpenAI says Musk contract 'never existed', Xiaomi's EV, and more

The company also plans to expand its research centre in Shanghai to support all of its product lines and open a new lab in southern tech hub Shenzhen later this year, according to the South China Morning Post.

Meanwhile, over in Europe, Apple announced changes to comply with the European Union's Digital Markets Act (DMA), which went into effect last week, Reuters reported on March 12.

Beginning this spring, software developers operating in Europe will be able to distribute apps to EU customers directly from their own websites instead of through the App Store.

"To reflect the DMA’s changes, users in the EU can install apps from alternative app marketplaces in iOS 17.4 and later," Apple said on its website, referring to the software platform that runs iPhones and iPads. 

"Users will be able to download an alternative marketplace app from the marketplace developer’s website," the company said.

Apple has also said it will appeal a $2 billion EU antitrust fine for thwarting competition from Spotify  (SPOT)  and other music streaming rivals via restrictions on the App Store.

The company's shares have suffered amid all this upheaval, but some analysts still see good things in Apple's future.

Bank of America Securities confirmed its positive stance on Apple, maintaining a buy rating with a steady price target of $225, according to Investing.com

The firm's analysis highlighted Apple's pricing strategy evolution since the introduction of the first iPhone in 2007, with initial prices set at $499 for the 4GB model and $599 for the 8GB model.

BofA said that Apple has consistently launched new iPhone models, including the Pro/Pro Max versions, to target the premium market. 

Analyst says Apple selloff 'overdone'

Concurrently, prices for previous models are typically reduced by about $100 with each new release. 

This strategy, coupled with installment plans from Apple and carriers, has contributed to the iPhone's installed base reaching a record 1.2 billion in 2023, the firm said.

More Tech Stocks:

Apple has effectively shifted its sales mix toward higher-value units despite experiencing slower unit sales, BofA said.

This trend is expected to persist and could help mitigate potential unit sales weaknesses, particularly in China. 

BofA also noted Apple's dominance in the high-end market, maintaining a market share of over 90% in the $1,000 and above price band for the past three years.

The firm also cited the anticipation of a multi-year iPhone cycle propelled by next-generation AI technology, robust services growth, and the potential for margin expansion.

On Monday, Evercore ISI analysts said they believed that the sell-off in the iPhone maker’s shares may be “overdone.”

The firm said that investors' growing preference for AI-focused stocks like Nvidia  (NVDA)  has led to a reallocation of funds away from Apple. 

In addition, Evercore said concerns over weakening demand in China, where Apple may be losing market share in the smartphone segment, have affected investor sentiment.

And then ongoing regulatory issues continue to have an impact on investor confidence in the world's second-biggest company.

“We think the sell-off is rather overdone, while we suspect there is strong valuation support at current levels to down 10%, there are three distinct drivers that could unlock upside on the stock from here – a) Cap allocation, b) AI inferencing, and c) Risk-off/defensive shift," the firm said in a research note.

Related: Veteran fund manager picks favorite stocks for 2024

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Major typhoid fever surveillance study in sub-Saharan Africa indicates need for the introduction of typhoid conjugate vaccines in endemic countries

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high…

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There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

Typhoid Conjugate Vaccine Introduction in Madagascar vaccination

Credit: IVI

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

 

The findings from this 4-year study, the Severe Typhoid in Africa (SETA) program, offers new typhoid fever burden estimates from six countries: Burkina Faso, Democratic Republic of the Congo (DRC), Ethiopia, Ghana, Madagascar, and Nigeria, with four countries recording more than 100 cases for every 100,000 person-years of observation, which is considered a high burden. The highest incidence of typhoid was found in DRC with 315 cases per 100,000 people while children between 2-14 years of age were shown to be at highest risk across all 25 study sites.

 

There are an estimated 12.5 to 16.3 million cases of typhoid every year with 140,000 deaths. However, with generic symptoms such as fever, fatigue, and abdominal pain, and the need for blood culture sampling to make a definitive diagnosis, it is difficult for governments to capture the true burden of typhoid in their countries.

 

“Our goal through SETA was to address these gaps in typhoid disease burden data,” said lead author Dr. Florian Marks, Deputy Director General of the International Vaccine Institute (IVI). “Our estimates indicate that introduction of TCV in endemic settings would go to lengths in protecting communities, especially school-aged children, against this potentially deadly—but preventable—disease.”

 

In addition to disease incidence, this study also showed that the emergence of antimicrobial resistance (AMR) in Salmonella Typhi, the bacteria that causes typhoid fever, has led to more reliance beyond the traditional first line of antibiotic treatment. If left untreated, severe cases of the disease can lead to intestinal perforation and even death. This suggests that prevention through vaccination may play a critical role in not only protecting against typhoid fever but reducing the spread of drug-resistant strains of the bacteria.

 

There are two TCVs prequalified by the World Health Organization (WHO) and available through Gavi, the Vaccine Alliance. In February 2024, IVI and SK bioscience announced that a third TCV, SKYTyphoid™, also achieved WHO PQ, paving the way for public procurement and increasing the global supply.

 

Alongside the SETA disease burden study, IVI has been working with colleagues in three African countries to show the real-world impact of TCV vaccination. These studies include a cluster-randomized trial in Agogo, Ghana and two effectiveness studies following mass vaccination in Kisantu, DRC and Imerintsiatosika, Madagascar.

 

Dr. Birkneh Tilahun Tadesse, Associate Director General at IVI and Head of the Real-World Evidence Department, explains, “Through these vaccine effectiveness studies, we aim to show the full public health value of TCV in settings that are directly impacted by a high burden of typhoid fever.” He adds, “Our final objective of course is to eliminate typhoid or to at least reduce the burden to low incidence levels, and that’s what we are attempting in Fiji with an island-wide vaccination campaign.”

 

As more countries in typhoid endemic countries, namely in sub-Saharan Africa and South Asia, consider TCV in national immunization programs, these data will help inform evidence-based policy decisions around typhoid prevention and control.

 

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About the International Vaccine Institute (IVI)
The International Vaccine Institute (IVI) is a non-profit international organization established in 1997 at the initiative of the United Nations Development Programme with a mission to discover, develop, and deliver safe, effective, and affordable vaccines for global health.

IVI’s current portfolio includes vaccines at all stages of pre-clinical and clinical development for infectious diseases that disproportionately affect low- and middle-income countries, such as cholera, typhoid, chikungunya, shigella, salmonella, schistosomiasis, hepatitis E, HPV, COVID-19, and more. IVI developed the world’s first low-cost oral cholera vaccine, pre-qualified by the World Health Organization (WHO) and developed a new-generation typhoid conjugate vaccine that is recently pre-qualified by WHO.

IVI is headquartered in Seoul, Republic of Korea with a Europe Regional Office in Sweden, a Country Office in Austria, and Collaborating Centers in Ghana, Ethiopia, and Madagascar. 39 countries and the WHO are members of IVI, and the governments of the Republic of Korea, Sweden, India, Finland, and Thailand provide state funding. For more information, please visit https://www.ivi.int.

 

CONTACT

Aerie Em, Global Communications & Advocacy Manager
+82 2 881 1386 | aerie.em@ivi.int


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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

Earlier today, CNBC’s…

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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever... And Debt Explodes

Earlier today, CNBC's Brian Sullivan took a horse dose of Red Pills when, about six months after our readers, he learned that the US is issuing $1 trillion in debt every 100 days, which prompted him to rage tweet, (or rageX, not sure what the proper term is here) the following:

We’ve added 60% to national debt since 2018. Germany - a country with major economic woes - added ‘just’ 32%.   

Maybe it will never matter.   Maybe MMT is real.   Maybe we just cancel or inflate it out. Maybe career real estate borrowers or career politicians aren’t the answer.

I have no idea.  Only time will tell.   But it’s going to be fascinating to watch it play out.

He is right: it will be fascinating, and the latest budget deficit data simply confirmed that the day of reckoning will come very soon, certainly sooner than the two years that One River's Eric Peters predicted this weekend for the coming "US debt sustainability crisis."

According to the US Treasury, in February, the US collected $271 billion in various tax receipts, and spent $567 billion, more than double what it collected.

The two charts below show the divergence in US tax receipts which have flatlined (on a trailing 6M basis) since the covid pandemic in 2020 (with occasional stimmy-driven surges)...

... and spending which is about 50% higher compared to where it was in 2020.

The end result is that in February, the budget deficit rose to $296.3 billion, up 12.9% from a year prior, and the second highest February deficit on record.

And the punchline: on a cumulative basis, the budget deficit in fiscal 2024 which began on October 1, 2023 is now $828 billion, the second largest cumulative deficit through February on record, surpassed only by the peak covid year of 2021.

But wait there's more: because in a world where the US is spending more than twice what it is collecting, the endgame is clear: debt collapse, and while it won't be tomorrow, or the week after, it is coming... and it's also why the US is now selling $1 trillion in debt every 100 days just to keep operating (and absorbing all those millions of illegal immigrants who will keep voting democrat to preserve the socialist system of the US, so beloved by the Soros clan).

And it gets even worse, because we are now in the ponzi finance stage of the Minsky cycle, with total interest on the debt annualizing well above $1 trillion, and rising every day

... having already surpassed total US defense spending and soon to surpass total health spending and, finally all social security spending, the largest spending category of all, which means that US debt will now rise exponentially higher until the inevitable moment when the US dollar loses its reserve status and it all comes crashing down.

We conclude with another observation by CNBC's Brian Sullivan, who quotes an email by a DC strategist...

.. which lays out the proposed Biden budget as follows:

The budget deficit will growth another $16 TRILLION over next 10 years. Thats *with* the proposed massive tax hikes.

Without them the deficit will grow $19 trillion.

That's why you will hear the "deficit is being reduced by $3 trillion" over the decade.

No family budget or business could exist with this kind of math.

Of course, in the long run, neither can the US... and since neither party will ever cut the spending which everyone by now is so addicted to, the best anyone can do is start planning for the endgame.

Tyler Durden Tue, 03/12/2024 - 18:40

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