PRISM Hocus Pocus: Halloween Tricks and Portfolio Treats
We are approaching the first fall holiday which is the unique time of year when you can sip on a pumpkin latte and shop for a Christmas tree while listening to everyone angrily discuss how winter holiday decorations are already on shelves when “it’s not even Halloween yet!!” As if the same thing didn’t happen last year. This holiday is mostly enjoyed by either kids or “adults” who voluntarily take vacations to Disney World without kids. We don’t fit into either category but that doesn’t mean we’re entirely Halloween adverse. Drinking spiked apple ciders while scaring trick-or-treaters with our frightening décor makes us howl! This Halloween, PRISM has you covered from the tricks to the treats, along with some spooktacular stock plays, which could brew some money for your bank.
We Want Candy
No matter how much or little you like Halloween, if there are trick-or-treaters coming to your door, don’t be the Phantom Scrooge handing out bogus candy. Remember when you giddily grabbed your brand-new light saber and donned your Darth Vader costume only to receive a handful of boring candy from the neighbor who always told you to stay off the grass? Theres nothing fun about Necco Wafers or a roll of Smarties.
The maker of some “last to get eaten” treats Tootsie Roll Industries (TR), is known for Double Bubble gum, Charms Blow Pop suckers, Tootsie Rolls and Charleston Chews. In its second quarter earnings release, the company reported a 6% year over year decrease in net sales and a 10% increase in its earnings per share. Management also cited a softer consumer resistant to higher prices and increases to input costs such as cocoa and chocolate that have moved significantly higher this year.
Get Creepy and Kooky
Proper décor is a must but don’t overdo it, even if this is your favorite season. You know the kind. Basic Becky promptly changes out her doormat to the “Happy Fall Y’all” version on September 22nd and is sure to post every pumpkin flavored confection and coffee she ingests with the hashtag “#Grateful” to her Instagram story. Eyeroll.
Carve or paint your obligatory pumpkin, hang a tasteful leaf wreath on your door and find a couple skeletons to make it festive. Home décor retailer, Kirkland’s, Inc. (KIRK) recently announced a new strategic partnership to revitalize Bed Bath and Beyond stores owned now by Beyond, Inc. (BYON), formerly Overstock.com. Beyond will invest $25M via a combined debt and equity transaction to strengthen Kirkland’s capital position and fuel growth initiatives.
Graveyard Smashingly Good Goodies
We prefer our year-round “Go Away” doormat but despite her autumnal obnoxiousness, Basic Becky really nails it on her Halloween parties. You may need to endure the powerful scent of cinnamon walking up to her door; however, premium chocolate confections and candied apples are sure to await you. For a pro-tip, we suggest sending your child to her house on Halloween to obtain the treats, without having to attend the party.
No kids? No problem. Go to the source. Beck is for sure buying her goodies from the Rocky Mountain Chocolate Factory, Inc. (RMCF). In its recent Q2 earnings announcement the company provided an update to its shareholders that included its focus on executing its multi-year strategic plan. Additionally, gross margins improved to 11.5% compared to 7.7% from a year ago which was primarily attributed to increased pricing and improved operational efficiencies.
Be Sure to Look ‘Thriller’
It’s also the time of year where abandoned storefronts in strip malls become Spirit Halloween shops which look slightly less depressing than their vacant versions. Pop into Spirit for almost any costume under the sun or for spooky lawn décor that will joyously scare those trick-or-treaters. We aren’t the most enthusiastic about costumes, but funny or trendy is always appreciated. This year the “Raygun” costume is expected to be a hit which includes an Australian track suit to mimic Olympic breakdancer, Rachel Gunn.
Don’t ask us why but dressing as a napkin, fork, water cup, to-go bag or burrito is also trending as the QSR Chipotle Mexican Grill (CMG), announced its team up with Spirit Halloween to offer their first-time ever costume options, “while supplies last”. The sad part is we think they will run out. Additionally, the company has introduced a new AI hiring platform to support its accelerated growth.
Get into whatever hocus pocus suits you this Halloween and may your portfolio plays provide you with ‘Boo’-tiful returns that make your bank account bubble over!
