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Today's big stories

US regulators approved a low-cost way for companies to go public and raise money
Our analyst has laid out three simple ways you can be an even better investor in the new year – Read Now
The US government sued Walmart for its role in America’s opioid crisis

No More Middleman

What’s Going On Here?

US regulators approved a ruling earlier this week which will allow companies to raise money by listing directly on the New York Stock Exchange.

What Does This Mean?

Unlike an initial public offering (IPO), a direct listing steers clear of investment banks and the hefty fees they bring with them, and instead lets investors decide for themselves how much a company’s shares are worth. Up until now, though, direct listings were something of a rarity: American regulators only let companies use them to sell founders’, employees’, or early investors’ existing shares – never new ones. This ruling, then, gives companies another way to raise money, and investors even more fast-growing, high-potential companies to pick from.

Why Should I Care?

For markets: Out with the IP-Old.
The traditional IPO has come under fire lately, especially after a series of high-profile first-day share price pops – like those of Airbnb and DoorDash – proved investors were willing to pay a lot more than the companies’ advisers thought (tweet this). That means those firms could’ve sold their shares for more to start with – and if they’d let investors set the price via a direct listing, maybe they would’ve done.

For you personally: Leveling the playing field.
Direct listings should also allow you to buy shares at the same time as your institutional counterparts. See, the traditional IPO process involves offering shares to an exclusive group of heavy-hitters before the company hits the stock market, but a direct listing skips that step. Of course, there are also drawbacks to the direct way of doing things: no investment bank means there’s no one to vet the company’s financials in detail, and no one to keep the company’s share price from getting too volatile in the early days of trading.

You might also like: How to profit when a company offers up its shares.

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🙋 Ask a question

2. Analyst Take

How To Become A Better Investor In 2021

What’s Going On Here?

It’s a new year, and if every email you’re about to get in your inbox is to be believed, it’s a new you.

Never ones to snub a bandwagon, that’s our Insight for today: how you can become a better investor in 2021.

Because let’s face it, even if the markets have been kind to you in 2020, the best time to repair the roof is when the sun is shining – and while you have a bit of downtime.

By that, we mean really look at the numbers: ask yourself if they prove your approach is working, or whether it’s time to try something new.

And make a game plan: define what to buy, when to buy, how much to buy, and when to sell before you pull the trigger, to protect yourself if stocks crash 10%, 20%, or even 50%.

We have a few thoughts on how exactly you can go about doing all that.

Read or listen to the Insight here

🤖 Investerminator: Rise Of The Machines

You might think robot security guards are the stuff of movies, but Knightscope’s autonomous security robots are already in action across the US.

In fact, the Silicon Valley robotics firm is taking the lead in a market that could be worth $165 billion by 2025.

That’s where you come in: you can join the thousands of investors who have invested in Knightscope through Startengine.

Over a target life of 5 years, Knightscope are projecting a profit of up to $250,000 per robot, in a market that’s growing 10% a year.

Find out more about Knightscope, and get invested from as little as $500.

Learn More

Disclaimer: You should read the Offering Circular and risks related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

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Chopping List

What’s Going On Here?

The US government popped down to Walmart for a few essentials on Tuesday – like, say, suing the world’s biggest retailer for helping fuel America’s opioid crisis.

What Does This Mean?

As if a pandemic wasn’t enough to deal with, the US has had to keep a drug epidemic in check too. And now, as part of that ongoing struggle, the US government’s accused Walmart’s 5,000 in-store pharmacies of filling invalid prescriptions and failing to report suspicious orders. The retailer has been pushing against this narrative for a while: it filed its own lawsuit against the US back in October, arguing it was being used as a scapegoat for government failures.

That may be, but Walmart faces penalties of up to $68,000 for every unlawful prescription and $16,000 for every suspicious unreported order if it’s found liable. And while the total potential cost isn’t clear yet, that’s almost beside the point: investors think it’s going to be serious, which might be why the company’s stock dropped after the news broke.

Why Should I Care?

The bigger picture: Opioid economics 101.
Over 100 Americans die from opioids every day, and the costs for the healthcare and criminal justice systems add up to almost $80 billion a year. Some economists have also pinned low labor participation on the crisis: only 62% of Americans count themselves as among the workforce, compared to the UK and eurozone’s roughly 80%. It wouldn’t just save money if the crisis were solved, then: it might boost economic growth by getting people working again.

For markets: The good, the bad, and the both.
Investors targeting a socially responsible strategy need to be careful around drug companies in sheep’s clothing. Indivior, for example, specializes in opioid addiction treatments but was sued for making misleading claims. Johnson & Johnson, meanwhile, features in plenty of socially responsible investing screens, while being responsible for many of the problematic opioids in the first place.

You might also like: How to invest in the drug development process for yourself.

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🙋 Ask a question

💬 Quote of the day

“And that, of course, is the message of Christmas. We are never alone. Not when the night is darkest, the wind coldest, the world seemingly most indifferent.”

– Taylor Caldwell (an American novelist)

Tweet this

💵 There’s big business in ‘bots

You might never have thought of investing in a robotics company like Knightscope, but the numbers tell you all you need to know…

$1 trillion: The negative economic impact of crime in the US every year.

46%: The drop in crime reports when one of Knightscope’s robots is on patrol.

8: The number of patents that set Knightscope ahead of the competition.

$250K: The estimated profit per robot over its 5-year lifespan.

10%: The amount the global security market is projected to expand each year.

$165 billion: The value of the global security market by 2025.

$500: All you need to invest in Knightscope.

Learn More

Disclaimer: You should read the Offering Circular and risks related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

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📚 What we're reading

Time’s 2020 in photos (Time)
Hide this sh*tty year with baubles (Fast Company)
Candles: an unexpected coronavirus victim (IFL Science)

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Finimize - 😱 IPOs really are canceled

Today's big stories

No More Middleman

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Become A Better Investor In 2021

🤖 Investerminator: Rise Of The Machines

Chopping List

What’s Going On Here?

What Does This Mean?

Why Should I Care?

💵 There’s big business in ‘bots

Older messages

🚗 Apple runs Google off the road

🤫 Don't worry about Tesla

🎄 SMIC's nightmare before Christmas

🤞 Let's try this again: EU destroys Big Tech

🚫 IPOs are canceled

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