Russia's No Fly Zone 🛬

March 4, 2022 Good morning traders! Welcome back to The Daily Setup. Markets closed down yesterday after falling due to fears about, you guessed it, Russia and Ukraine. Here’s what’s on the docket today: - Grab was down bad Thursday - Oil hits $116 a barrel - Airliner booker Sabre pulls the plug for Russian flights Let’s have ourselves a weekend. Nick How’d the markets look? Market Outlook 👀 DOW 33,794.66 -0.29% S&P 500 4,363.49 -0.53% NASDAQ 13,537.94 -1.56% BITCOIN $42,445.23 -3.85% Grab, Oil, and Kroger BIGGEST MOVER GRABing at Straws Shares in Singapore-based technology company Grab Holdings Ltd. (GRAB) plunged -37.16% on Thursday after a serious [bummer of the earnings report](. Grab is known mostly for its mobile app, which offers ride-hailing, food delivery, and payment solution services across Southeast Asia, and has received major backing from [Uber technologies]( and [SoftBank]( (add another L for Masayoshi). Much of the loss disclosed was chalked up to money spent on incentives to bring more drivers and users into their ecosystem. Let’s see how that worked out for them... - GRAB’s [net loss nearly doubled]( to $1.1B for Q4 while revenue fell -44% to $122M. Analysts had anticipated a loss of $645M on average, seems like they were waaaay off the mark on that one. - The [street’s reaction]( to the loss was pretty unified: GRAB currently has 8 buy ratings, 2 holds, and 1 sell out of 11 brokerages. GRAB may be spiraling since it went public in December but it still remains one of the region’s largest delivery and ridesharing services. That might be enough to keep them in the running for now but with online grocery markets in Asia expected to [triple to $11.9B]( in 2025, things are bound to heat up. GRAB already faces competition from Sea Ltd. Southeast Asia’s largest internet company, and with Indonesian ride-hail rival Gojek merging with e-commerce giant PT Tokopedia this market could become a battle royale. That said, if I err on the side of Masayoshi Son, now could be a great time to buy unless I’m more interested in an aforementioned competitor. Crude Prices get Oiled up You might want to learn how to make your car run on that cooking oil you have stocked in the pantry 'cause the price of crude continues to skyrocket. Today [the price per barrel hit $116]( for the first time since that magical year of 2008. You already know what’s to blame: Market uncertainty in the face of Russian sanctions and OPEC+ stubbornness, in addition to increasing global demand. The price didn’t stay at $116/barrel all day but don’t get too comfortable just yet folks. - The US benchmark for crude prices; West Texas Intermediate Crude (WTI) closed around +0.7% higher at $107.67/barrel but [did]([hit $116/barrel]( intraday. This time last year the price was closer to $61/barrel, and just last week it was around $92/barrel. - What caused the minor decrease by day’s end? Well remember that Iran Nuclear deal the US [left in 2018](? Turns out we need their oil again and it’s back on the table. If the deal goes through, [Iran could bring 1M+ bpd of oil]( (1% of global supply) back on the market. Not often you see them play the hero. - While there hasn’t been an explicit embargo on Russian oil from the US yet, there’s [increasing pressure]( to do so. Most recently, a bi-partisan bill sponsored by 18 senators proposed a ban on imports of Russian oil. Vlad’s gonna love it, no doubt. The apprehension of the markets regarding oil are definitely justified considering how many elements are likely to remain in flux for the foreseeable future. Even in the face of high demand, OPEC+ is sticking to their figure of producing only 400K barrels a day, and we haven’t even seen a full embargo of Russian gas yet. Of course the Iran deal could alleviate some pains but the negotiations have been going for 10 months already and who knows if that could offset the overall effects of supply-stress we’re currently seeing. The real panic moment will be if crude reaches $119/barrel, signaling a doubling of price after which [really fun things]( generally happen... Let’s Go Krogering Grocery shopping may be painful for shoppers these days thanks to inflation and increasingly bare shelves, but the [good times are rolling]( (unlike the carts that always have a bad wheel) for Kroger ([KR](). The grocer gave Wall Street the old beat & raise on Thursday, sending shares up 11.61% on the day. People have been eating more at home (and eating more of everything in your humble correspondent’s case) during the pandemic, helping Kroger on the top and bottom line. - EPS clocked in at $0.91 vs. estimates of $0.74 and revenue was strong as well, coming in at $33.05B, up 7.5% YoY. - The company now expects to earn $3.75-$3.85 per share for the coming year, well above previous estimates of $3.43 per share. - Big Box stores such as Wal-Mart ([WMT]() and Target ([TGT]() have been making a push into the grocery aisles but Kroger’s strong results and upbeat outlook seem to insinuate the neighborhood grocery store is still alive and kicking. Besides, you don’t see Kroger having to put steaks in [wire mesh cages]( like those savages at Wal-Mart (I love Florida). Grocery stores have been generally unloved in the analyst community, but one prescient firm [came strong with an upgrade]( prior to the earning announcement, citing the company’s omnichannel strategy. Grocery retail typically operates with razor thin margins, but Kroger manufactures several private label brands, which have higher profitability. It also helps that the big K (not you K-mart) has recently expanded into the heavily populated Northeast, which should be a growth catalyst. Call me old fashioned but society was better when chain stores had actual jingles in their ad campaigns, as the [title of this article]( alludes to. The Digital Pen is Mightier Than A Russian Sword Token Talk Who says artists are the non-violent type? A group of more than 200 Ukrainian artists are creating NFTs in order[to fund the defense effort]( against the invading Russians. The collection will also feature paintings made by children in bomb shelters, which is downright heartbreaking, but also makes one admire the resilency of the citizens under siege determined to defend their homeland. The collection is hoping to raise at least $1M for the war effort. - The pieces, once sold, will be paid for with cryptocurrency and each token will have a minimum starting bid of 0.08 ETH, or about $235. - Sale proceeds will benefit the Ukrainian Armed Forces via the Ministry of Digital Transformation of Ukraine. - Stop me if you’ve heard this one before, but crypto is having a moment... even though it comes under less than ideal circumstances. People around the world have been donating to the Ukrainian defense via digital currencies and now NFTs are being used to help the effort. Current events further highlight the growing number of use cases for crypto, so it is increasingly apparent that every investor needs a digital asset strategy. In addition to the NFT collection, Ukraine is planning to [conduct an airdrop]( for donors of cryptocurrency and the country has received more than $33M so far. No Fly Zone 🛬 Deals and Rumors Russia continues to be canceled worldwide, as airline booking software Sabre ([SABR]() has [cut off Aeroflot]( from its ecosystem, crushing the carrier’s ability to sell seats. In addition to being the parent company of [Dunder Mifflin](, Sabre provides airlines around the word with ticketing and reservation capabilities, and now Aeroflot flights will not show up on travel agency and third party travel sites. - Not only can Russian airlines not book flights, but getting parts will be difficult now that Boeing ([BA]() and GE ([GE]() have also suspended service agreements with the country. - Sabre’s biggest competitor, the Madrid based ([Rock me]() Amadeus IT Group has also cut off Russian airlines from its platform. - If the industry really wants to hit the Russians where it hurts, Putin and the oligarchs should be forced to fly from Miami to Las Vegas on Spirit. In addition to government sanctions, the corporate world is [putting the screws]( to Russia in unprecedented fashion. Russian citizens currently cannot use Apple Pay, listen to Joe Rogan on Spotify, or see the new superhero movies from Disney. Even the mega-yachts owned by the oligarchs are having trouble [finding safe harbors]( around the world. If any of our readers have some spare change lying around looking for a good home, might I suggest [buying the Chelsea soccer team]( in England? You might be able to score a bargain. Link Roundup 📿 Other News Other News Link Roundup - May I humbly say *clears throat*… suck iittttt – IRS is Audited ([link]() - It was Just a Prank Bro! – Rivian Walks Back Price Increase ([link]() - Icahn’t Let This Stand – Activist Investor Opposes Stock Disclosure Proposition ([link]() - GET A JO... Oh wait you actually did? – Jobless Claims are Fewer Than Expected ([link]() - *pretends to be shocked* – NFT Mania is Slowing Down ([link]() Meme of the day Vlad from Moscow pulling [a Vlad from Robinhood](, via [@abradacabla]( Questions or concerns about our products? Call or text us on your mobile: (410)-775-8315 © Copyright 2020, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. 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