A Hit TV Show Reveals the Power of 'Sourcing in China'

Adam Callinan and Matt Campbell knew they had a winner... Their innovative product was an insulated, stainless-steel bottle with a detachable bottom. [Chaikin PowerFeed]( A Hit TV Show Reveals the Power of 'Sourcing in China' By Vic Lederman, editorial director, Chaikin Analytics Adam Callinan and Matt Campbell knew they had a winner... Their innovative product was an insulated, stainless-steel bottle with a detachable bottom. It kept bottled beer cold. It offered protection if the user dropped the glass bottle. It even came with a built-in bottle opener. Callinan and Campbell called their product the "BottleKeeper." And in 2018, the two men appeared on the hit ABC show Shark Tank to pitch it to the potential "Shark" investors. By that time, they had already notched $20 million in sales over the previous three years. But the sales weren't what caught the Sharks' attention. The margins did. Callinan and Campbell charged $34.99 per bottle. And it only cost $3.50 to make each one. That worked out to a gross margin of about 90%. One key factor led to those huge gross margins... The bottles were designed in the U.S. But they were made in China. You see, Callinan and Campbell found a reliable Chinese supplier. And they got their insulated bottles made with the exact specifications from their design at a dirt-cheap price. Despite the huge margins and strong sales, the business was still a startup... Callinan and Campbell were pouring almost everything they made back into marketing the product. And at the time, they wanted a fresh infusion of cash to scale the business. Their sales pitch ended up netting $1 million from the Sharks in exchange for a 5% stake. When it comes to products on Shark Tank, the BottleKeeper isn't an isolated case. And as I'll explain today, it helps show the power of startup entrepreneurs "sourcing in China"... Recommended Links: [Until Midnight: This Could Set Off the Biggest Market Shakeup of 2024]( Man who predicted the Covid Crash and the 2023 Stock Rebound warns you could soon be blindsided by a rare market setup. But if you know what's coming, you could double your money over and over again, as he's already shown 33 different times. Until midnight tonight, [get the full details here](. [Get Your Money Out of U.S. Banks Immediately]( In 2022, Marc Chaikin warned: "A major shift in our financial system could lead to a RUN ON THE BANKS in 2023." Three months later, we saw the biggest bank failures since 2008. Today, Marc warns it could soon happen again. [Click here to learn more](. Former NFL player Chris Gronkowski also pitched his idea on Shark Tank. He developed the "Ice Shaker" workout bottle. It keeps contents cold for up to 30 hours. And it features a patented interior design to keep drinks properly blended. Each bottle only costs $5 to make. And Gronkowski sells them for $25 each. That's an 80% gross margin. Entrepreneur Justin Wang also shared his idea for the "LARQ" bottle on the TV show. It's a self-cleaning, insulated bottle designed to sanitize water in up to three minutes. It features a built-in ultraviolet light on the cap that activates when you press a button. Because of its sanitizing features, the bottle had a steeper price of $95. But by sourcing the manufacturing to China, Wang's costs came to about $40 per unit. LARQ's gross margins (around 58%) weren't as generous as the BottleKeeper and Ice Shaker. But as the numbers show, Wang made a lot more in actual dollars per unit. Folks, I hope these stories show you my point... The economies of the U.S. and China are deeply entwined. By sourcing production to China, U.S. entrepreneurs can boast big margins. And it's why many Chinese stocks turn "bullish" even if most investors want nothing to do with them. That's true again today... China's "blue chips" are still turning around. They're the companies most closely associated with these kinds of manufacturing success stories. And I believe that rebound will continue. Meanwhile, the country's tech stocks recently flipped into "very bullish" territory in the Power Gauge. And perhaps more importantly, they're now beating the broad market. You can see what I mean through the KraneShares CSI China Internet Fund (KWEB). That's one of the main exchange-traded funds that holds Chinese tech stocks. Take a look... Notice that KWEB started outperforming the S&P 500 Index at the end of last month. It's up around 30% since the start of February. The S&P 500 is only up about 8% over that span. Then, KWEB flipped to "bullish" in the Power Gauge earlier this month. It still holds that positive rating today. Put simply, the Power Gauge sees more upside ahead in this corner of the market. So if you aren't already paying attention, you should check out KWEB today. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.51% 8 17 5 S&P 500 -0.29% 137 289 70 Nasdaq -0.02% 30 50 20 Small Caps -0.83% 533 997 365 Bonds +0.12% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +0.99% Staples +0.67% Communication +0.38% Health Care +0.21% Industrials -0.5% Financial -0.57% Materials -0.71% Utilities -0.72% Discretionary -1.29% Real Estate -1.73% Energy -1.88% * * * * Industry Focus Retail Services 13 47 18 Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +1.43%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors and has moved down 4 slots over the past week. Indicative Stocks [rating] CRMT America's Car-Mart, [rating] EYE National Vision Hold [rating] MNRO Monro, Inc. * * * * Top Movers Gainers [rating] FSLR +18.69% [rating] MRNA +13.67% [rating] ADI +10.86% [rating] ENPH +8.73% [rating] EA +4.88% Losers [rating] TGT -8.03% [rating] LULU -7.23% [rating] FCX -5.69% [rating] GRMN -5.08% [rating] SCHW -4.6% * * * * Earnings Report Reporting Today Rating Before Open After Close INTU MDT DECK, ROST RL No earnings reporting today. Earnings Surprises [rating] WSM Williams-Sonoma, Inc. Q1 $4.07 Beat by $1.34 [rating] SNOW Snowflake Inc. Q1 $0.14 Missed by $-0.03 [rating] ADI Analog Devices, Inc. Q2 $1.40 Beat by $0.13 [rating] NVDA NVIDIA Corporation Q1 $6.12 Beat by $0.54 [rating] TJX The TJX Companies, Inc. Q1 $0.93 Beat by $0.06 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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