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Hatch Weekly: Pinterested in the latest IPO? Same.

Put a pin in this impending IPO

Pinterest is preparing for its IPO on Wall Street. Pinterest, which lets people create digital “pinboards”, is one of the rarer unicorns, a term applied to start-ups valued at more than $1 billion, in that it’s not hemorrhaging cash - imagine!

No profits? No problem.
While unprofitable, Pinterest’s losses are nowhere near as high as fellow unicorns Uber and Lyft. The impending IPOs of money-losing companies are following a trend of companies that have gone public toting nothing but red ink on their balance sheets. Lyft revealed that it lost $911.3 million last year, and Uber is winning that race with losses of $1.8 billion in 2018. Pinterest’s filing reported that they lost $63 million in 2018, an improvement on the $138 million they lost a year before.

Watch it grow
Despite its losses, Pinterest is growing quickly. The company’s advertising revenue totalled $756 million last year. Put a pin in that! Growth in advertising revenue aligns with an increase in users, and the platform is now reporting more than 250 million monthly active users. For a company whose mission is to “bring everyone the inspiration to create a life they love,” they’re certainly inspiring future investors with these figures. We’re not sure how much money Pinterest hopes to raise in the offering, but it was last valued at $12 billion.

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Boeing loses billions

After two devastating fatal crashes involving its 737 Max planes in five months, Boeing (BA) is feeling the heat. The global fleet of 737 Max aircraft has been grounded and the company is now the subject of a US criminal investigation. To top it off, $40 million has been wiped from Boeing’s market value.

When it rains, it pours.
Just last week Norwegian Air was the first airline to say it will demand Boeing pay for lost flight time. Garuda, an Indonesian airline, ordered 50 of the 737 Max planes in 2014 for $4.9 billion, and they no longer want them. The crashes and investigation aside, Boeing is also in trouble for its delay in delivering on space projects for NASA. It's no wonder Boeing shares are down nearly 18% this month, a rare dip for a company that posted stellar sales of more than $100 billion last year.

They’ve still got the military?
Well, kind of. Boeing is the US military’s prime corporate contractor but tested this friendship with a recent ‘severe situation’ that saw Boeing deliver a tanker aircraft to the military with industrial tools and trash still on board. The Air Force stopped accepting new tankers from Boeing on February 20 after the discovery. Deliveries are resuming, but good faith can only get you so far. Is it a case of resting on laurels or something more serious? The stock market is speaking – hopefully, someone at Boeing is listening.

Geraldine Weiss: First Lady of Wall Street

In the 3rd article of our Invest like the Best series, we’re taking a look at a fabulous female investor. Geraldine Weiss took her first punt on the stock market in 1962. Unable to find work as a broker because of rampant sexism at the time, she set up an investment newsletter called Investment Quarterly Trends (IQT) in 1966.

Hello, boys!
Geraldine’s work and interviews have been published in financial publications such as Barron’s WSJ, LA Times, Fortune, and Forbes. Known as “The Dividend Detector”, Geraldine co-authored two investment bestsellers, Dividends Don’t Lie and The Dividend Connection. Over the last 30 years, IQT’s top recommendations have returned 11.2% a year, compared to the average investor who saw a return of 3.66%, whereas the S&P 500 had an average return of 6.73%. Sounds like she knew what she was doing. Want to find out more about the Grande Dame of Dividends' investment philosophy? Read the full article here.

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