Should have done Ikon Pass
Hey Snackers,
We've reached "trend-scendence"... the stage where trends converge. Taco Bell's new Oatrageous Taco combines oats with a meat-alternative — the result is an oat-based taco stuffing.
Markets dipped again Tuesday, but we're waiting to try on Lululemon's earnings report, which arrives today.
6am Shred Report... It's actually an earnings report from Vail Resorts, which owns 37 ski resorts that Tom & Gisele would feel comfortable Après-ing at. Plus, another 42 resorts are included in its "Epic" ski pass. Vail shares rose on word it's sold 22% more season passes than at this time last year, but we hit ice while running over those numbers.
Pizza vs French fries. Boarders vs Skiers... Epic Pass vs Ikon Pass. Society is increasingly divided between the 2 imperial ski passes that all the resorts band together under. Global warming forces them to team up — and that forces skiers and boarders to pick a side early in the season.
Don't let Vail's acquisitions distract you... The number of Epic Season Passes sold jumped 22%. Sounds awesome. But that's because the pass added 17 new resorts this year. If you had a Mount Snow pass, now you've probably got an Epic one (because Vail acquired it and many others). Sales grew in part because Vail literally absorbed new mountains — that doesn't make its existing biz more profitable. In fact, it lost money last quarter (snowmaking = expensive).
A Democrat, a Republican, and President Trump walk into a bar... and actually agree on something. Nancy Pelosi announced that her House of Reps would support the USMCA: The consonant-heavy trade treaty between the US, Mexico, and Canada that the President signed in November last year. It takes awhile, but this bill should become law by January (quick reminder on how that works).
Stick one of those huge red bows on this car deal... Markets celebrated the kumbaya progress on trade cooperation. If you're CEO'ing a company, now you've got certainty on how much cross-border business will cost you (at least within North America). But the USMCA majored in cars (and it's obsessed with them):
Trade is good, when done right... Econ 101 = Trade benefits consumers and businesses. Countries should produce whatever they've got a competitive advantage in. From cars to microwaves, Mexico and China have been winning more factories and jobs — American consumers benefited from lower prices and American companies benefited from higher profits. The failure has been in government policy, which hasn't helped US workers who lost manufacturing jobs as a result. This USMCA deal focuses on supporting them (and it does).
Disclosure: Authors of this Snacks own shares of Lululemon, Apple, and Uber
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