Postcards: The Ultimate Punishment (and the Week Ahead)

There is a way to punish people... and it's called driving a Kia Niro EV. Also, the core part of our portfolio is up 24% this year... and we're about to add another stock. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: The Ultimate Punishment (and the Week Ahead)]( There is a way to punish people... and it's called driving a Kia Niro EV. Also, the core part of our portfolio is up 24% this year... and we're about to add another stock. [Garrett {NAME}]( Jun 2   [READ IN APP](   Greetings from Southwest to Baltimore… Dear Fellow Expat: Do you want to punish your enemies? Don’t throw them into a situation where you are shown the man and then shown the crime. Just make them drive a Kia Electric Vehicle. I left the Fort Myers Hertz rental center in this thing on Friday. It looks like a naked Teenage Mutant Ninja Turtle. Worst car ever… It drives fast, but any movement on the wheel feels like the start of Tokyo Drift. This thing is horrible. I was told to pick any car in the aisle. It was either a Kia… or seven Nissan Rogues. I went with this thing… thinking. - It was black because it was so dark in that garage… (it’s Green) - It had an internal combustible engine (ICE) Jokes on me. Not only are there no reliable charging stations nearby - unless I want to hang out at a mall for five hours - but I drifted into that garage with about two miles left. My review: Kia Niro EV - 1 Star. The only star is because When I turned the car on in the garage, some woman was screaming on Buck Sexton’s talk show - as the car was fixed to this channel. The previous driver liked their conservative radio… loud as possible. I found that fitting for this area of the nation. What’s Next It’s funny when you run a portfolio and allocate money to a new pick. I’ve been sitting here thinking - well, we’re doing okay. We’re up 800 basis points on the S&P 500 this year. But then, I recall we started doing a monthly pick because my editor requested it. If we were only focused on the semi-annual core portfolio, we’d be up more than 24.5%. So, when we add a new pick tomorrow, it will water down the performance… But here’s my original seven… and we’ll have a new seven on July 1. Anyway, if you’re not familiar with how we select stocks, I’ll explain it tomorrow. But the most likely pick for Monday… is a foreign company. It produces… hands down… my favorite product in the world. Here’s a clue: I’m not a key, but I unlock thoughts, Not a sword, but battles I’ve fought. In cafes and libraries, I silently sit, Helping minds to share their wit. If you figure out that riddle and are not a subscriber, I’ll give you a free month. But you have to actually name the product and its manufacturer. Let’s dive into the week ahead. Monday, June 3, 2024 Event: The COMPUTEX Taiwan conference. This will feature speeches from Nvidia (NVDA) CEO Jensen Huang. Republic Speak: I won’t sit here and pretend that NVIDIA is the problem. This stock is $1,100, and it’s cheaper than it was at $200. The reason is that its EPS has surged while its PE ratio has plummeted. But let’s at least try to point out the insanity, okay? The company’s market capitalization is higher than the entire German stock market. It’s higher than our entire energy sector here in the United States. What sort of future is the market predicting based on this stock price? Are we finally getting flying cars? Wait… is that it? Flying cars? Or is this hype just so that my cell phone gets more apps and the government can track me easier… Tuesday, June 4, 2024 Event: Bath & Body Works (BBWI) earnings report. Republic Speak: When I was 17 and lazy, my go-to holiday gift was a stupid candle or body wash from this company. This morning… I thought… How in the hell is Bath & Body Works still in business? Who goes there? We should study their customers through binoculars. Well… silly me. I looked at their balance sheet. What a company… F score of 8. Z score of 2.8. Their return on invested capital (ROIC) is 31%. This stock is also pure momentum; shares are up 18.5% over the last month. If they miss… and there’s an overreaction, I might invest in body wash. [Their investor presentation is very impressive](. This is a hidden gem in the market. Wednesday, June 5, 2024 Event: The European Association for the Study of the Liver conference. Republic Speak: This is perhaps my favorite conference name ever… but it would also make for the name of an incredible Metal Band to open for Metallica in Spain this summer… The European Association for the Study of the Liver. I suppose I could have discussed how Campbell Soup (CPB) and Dollar Tree (DLTR) will report earnings… but it’s hard to top a one-day conference featuring Akero Therapeutics (AKRO), 89bio (ETNB), Madrigal Pharmaceuticals (MDGL), Novo Nordisk A/S (NVO), and Eli Lilly (LLY) under that banner. In college, I helped to design our fraternity rush T-shirts. My sophomore year, it was a picture of a sinking ship that said, “Jump aboard.” The following year, it was an image of Curious George passed out next to a bottle that said XXX on it. And my senior year, it was a shirt that said: “My liver is banking on a heart attack.” Remember that my fraternity brothers… they’re the people running the world now. YMMY. Thursday, June 6, 2024 Event: The European Central Bank expected to cut its interest rate Republic Speak: I’m recommending a French company on Monday. It’s not just because it manufactures two of the most incredible products in the world. It’s also because a rate cut will benefit this stock over the next two years. Friday, June 7, 2024 Event: NVIDIA 10-1 stock split. Dorsey’s Birthday. May Jobs Report. Republic Speak: A 10-1 split only helps NVIDIA. I wouldn’t be shocked to see the stock hit $175 post-split by the end of the year. But someone must help me make deeper sense of how NVIDIA is worth more than the entire energy sector. I think I know why… and that answer is Jerome Powell. But this is a bit insane to me. My father’s birthday is Friday… Shut the city down. This will be fun. The May Jobs report will be critical for speculation with the Fed. I’m banking on a surprise on the upside. Too many part-time jobs are being filled. Just a Reminder Ben Bernanke and Janet Yellen broke the stock market. But so too did the European Central Bank in 2014. The money supply is driving scarce resources higher. Focus on the stocks buying back stock… in deflationary environments… with lots of cash flow. And then be ready for the trade of the decade when rates are cut (commodities). I remain long gold, silver, Bitcoin, and pipeline stocks. On Rates Finally, Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()