Food inflation and food import concerns will prompt more investment into vertical farming
Singapore is a small island nation that relies heavily on food imports to feed its people. The island is promoting vertical farming efforts to make the nation self-sufficient in food production and combat food inflation.

Vertical farming allows farmers to grow more food per square footage. Basically, to grow more food, farmers expand their food production to sky rather than needing to acquire more land. The way in which vertical farming is done is sustainable as it reduces the need for farmers to do deforestation and with modern tech, farmers are able to grow more with less water and other resources.

Energy shortages pose as a headwind to vertical farming growth because vertical farming is energy-intensive. Thankfully, this form of agriculture can be supported with renewables.

For growth investors looking for underrated megatrends to invest in, consider vertical farming! $APPH $SMG $GRWG are some tickers that I see benefiting from the vertical farming megatrend.

Interesting. Especially, after the various export bans (India, Egypt,Indonesia, Ukraine, Russia etc.) Does any of the 3 companies possess greatest advantages over the other two?
View 7 more comments
If you expect food shortages to come in the future, expect huge inflows into vertical farming companies
in August of 2019, Vice News reported on a few vertical farming startups in Singapore. Because Singapore is a small nation that's highly urbanized, the country doesn't have much land to do farming the same way that other countries do. Because of this, the country has welcome vertical farming startups.

Some advantages of vertical farming include:
  • being able to grow plants indoors; protects them from locusts and other environmental and weather issues
  • more efficiency with resources (ex. less water-intensive)
  • higher crop yields per square foot (the sky is the limit)
  • plants grow faster overall

However, vertical farming is energy-intensive. Lamps are shining light onto plants 24/7 and complex systems are monitoring plants and providing them with their scheduled "rain".

With high energy prices, many are reluctant to invest in vertical farming startups. Higher utility bills decrease the profitability of this energy-intensive form of farming. At the same time, scientists are continuing to find new sources of energy as well as finding ways to make vertical farming less energy-intensive.

If food shortages do come in, then I believe that many investors will pile money into vertical farming startups since the economics of vertical farming makes them more capable of feeding the world faster than traditional farmers. Some might think that $BYND and other food processing companies will have an easier time alleviating a food shortage, but at the end of the day, they source their ingredients from farmers.

Some vertical farming companies that I'm looking at are $APPH $HYFM $GRWG $AGFY $UGRO $VFF. While all of them look appealing, I'm still debating on which one is the better investment.

And to end it off here, I hope that the world doesn't end up in a food shortage situation. Some countries are dealing with food shortages and let's hope that their situation gets alleviated as soon as possible. We don't want food shortages to become a big thing in the coming future.
4 Additions, 1 Reduction in Custodial Account
I reduced my daughter's position in $APPH after it rose over 100% in just the last month.

I still like the business, but it is genuinely high-risk, and I wanted to simplify her portfolio.

With that cash and new money added, I bought more $TTD, $ME, and $LTCH -- while also starting a position in $SMLR.

23andMe and Latch are high-risk too, but I follow them more closely and see a more straightforward path to long-term success than AppHarvest.

Meanwhile, Trade Desk's opportunity speaks for itself, and Semler Scientific was one put on my radar by @brianferoldi and @brianstoffel. Starter position to get some skin in the game and remember it by.
What differences are there between how you incest the custodial acct vs your own acct? I have a kiddo now and have started investing for him. Curious to learn from a fellow dad!
Add a comment…
Paul Cerro's avatar
$27.2m follower assets
For new investors to Commonstock - read below!
Good afternoon!

For those of you that just joined Commonstock or followed me, welcome!

A little about me, I run a L/S US equities portfolio, called Cedar Grove Capital based out of NYC, focused on the consumer(tech) and cannabis industries.

I'd highly recommend you check it out 👉🏼 https://cedargrovecapital.substack.com/

What you get when you subscribe to our newsletter:
  • Weekly-ish Chart of the Week emails where I break down a chart into a few summarized key points to help inform you or keep you up to date on certain topics (ex. How Much is Each "Subscriber" Worth?)
  • Deep dive analysis into an industry that has significant growth potential (ex. Vertical Farming: Don’t Sleep on this Opportunity)
  • Trend I’m Watching which dives into a trend that peeks my interest enough to look into companies that can either benefit or be hurt by such trend (ex. Coffee Prices Getting Squeezed)
  • 1-2 monthly deep dives into a stock I either have a position in or am considering taking a position in. These posts are not short (avg. word count ~3,000), and include many aspects including interviews with users, product reviews, and my model output for valuations (ex. FIGS: Not the lululemon of Healthcare )
  • Personal Thoughts where I express my opinions about a certain topic related to finance, the stock market, or investing. (ex. Uh, Tesla is Worth How Much Now?)
  • Full transparency of my portfolio so you can track my performance and weighting within my portfolio. This can be used, to an extent, to help formulate your own portfolio management.
  • Quarterly updates on my portfolio that highlight my buys and sells, if any, as well as fund commentary and thoughts going forward.
  • BONUS: All my posts will be accompanied by an audio option (2022 onwards). For any reason you cannot read the posts, I’ll record a ‘read aloud’ of the same article so you can listen.

Companies that I've publicly published research on are below:


Companies that I've held/hold positions in but did not provide public research are below:

  • $BRCC - Black Rifle Coffee Co
  • $DPZ - Domino's
  • $ORLY - O'Reilly Automotive
  • $RENT - Rent the Runway
  • $FXLV - F45 Fitness
  • $WRBY - Warby Parker
  • $ELF - e.l.f Beauty
  • $AQUA - Evoqua Water Tech

If you're interested in getting detailed coverage of the space, deep dives into single names and industries all while accompanied by an audio version, I highly recommend you click below and sign up for the newsletter. It's completely free! 👉🏼 Newsletter + Website
Paul Cerro's avatar
$27.2m follower assets
Need stock new ideas? Check below
Good morning everyone!

For those of you that don't know or just followed me, I run a L/S US equities portfolio focused on the consumer(tech) and cannabis industries.

I'd highly recommend you check it out 👉🏼 https://cedargrovecapital.substack.com/

What you get when you subscribe:
  • Weekly-ish Chart of the Week emails where I break down a chart into a few summarized key points to help inform you or keep you up to date on certain topics (ex. How Much is Each "Subscriber" Worth?)

  • Deep dive analysis into an industry that has significant growth potential (ex. Vertical Farming: Don’t Sleep on this Opportunity)
  • Trend I’m Watching which dives into a trend that peeks my interest enough to look into companies that can either benefit or be hurt by such trend (ex. Coffee Prices Getting Squeezed)
  • 1-2 monthly deep dives into a stock I either have a position in or am considering taking a position in. These posts are not short (avg. word count ~3,000), and include many aspects including interviews with users, product reviews, and my model output for valuations (ex. FIGS: Not the lululemon of Healthcare )
  • Personal Thoughts where I express my opinions about a certain topic related to finance, the stock market, or investing. (ex. Uh, Tesla is Worth How Much Now?)
  • Full transparency of my portfolio so you can track my performance and weighting within my portfolio. This can be used, to an extent, to help formulate your own portfolio management.
  • Quarterly updates on my portfolio that highlight my buys and sells, if any.
  • BONUS: All my posts will be accompanied by an audio option (2022 onwards). For any reason you cannot read the posts, I’ll record a ‘read aloud’ of the same article so you can listen.

Companies that I've covered are also listed below

You’re naturally doing what commonstock promotes - transparent advice. I love how you show your holdings to demonstrate skin in the game. Way to go!
View 8 more comments
Paul Cerro's avatar
$27.2m follower assets
My "short" targets
I've come for...


I have my eyes set on...

  • Coffee $BRCC
  • ESG cleaning $VGII
  • Ball shavers $BLTS
After reading @strat 's $BRCC memo, got me intrigued. Love a good coffee melt up. Remember thinking Luckin was channel stuffing, only to find out it was just pure fraud.
View 10 more comments
My Portfolio: 02/08/22
I am slightly nervous about having chased the likes of $TDOC $CPNG $PINS $LTCH $ME and $APPH as I don't usually add to losers. However, much of the growth market has been losers, so it's hard to avoid.

I will be building out some positions in companies not seen on this list to take advantage of the growth sell-off. $ZM $SHOP $DOCU $DOCN to highlight a few, maybe even $PYPL once the dust settles.
post media
Paul Cerro's avatar
$27.2m follower assets
2021 IPOs are selling off
  • Nearly 400 traditional IPOs, along with an additional 600 special-purpose acquisition companies (SPACs), occurred in 2021, representing ~$316 billion in deal value

  • Two-thirds of the companies that went public in the U.S. in 2021 are now trading below their IPO prices.

  • In the first eight months of the year, IPO shares rose. In November, 2021’s class of IPOs was trading up 12% on average, according to Dealogic. By late December, they traded 9% below their IPO prices.

  • Investors fear interest-rate increases are going to happen sooner rather than later which is currently curbing the appetite for riskier assets.

Click link below to see the visual! $RIVN $OTLY $HOOD $HNST $APPH

It was quietly expected considering IPOs was done 2021 exactly to get such a premium. Sorry for investor that got on board at ATH
View 3 more comments
Mega week for earnings! (Nov 8-12)
Here are featured earnings we are paying attention to @ Fincredible.

The ones I'm paying close attention are:

$PYPL - Want to learn more about their plans for 'super app', integration of BNPL and if any color on rumored $PINS acqn, which is now dead (or never was there). I own some $PYPL

$PLTR - I think I'm the only non-bull on this company. I'm unsure of their technological prowess and confused by their corporate governance. I don't own and have no plans, but just curious.

$COIN - I have no exposure in crypto except via a managed investment on Titan, but I think this is a great way to continue to learn and try and get smarter

$U - I like this company a lot. I'm particularly interested in their non-gaming revenues which I think is a larger TAM. Selfishly, I'm hoping this stock falls after earnings (Sorry for the many who own it) so I can buy on the dip, but not expecting it.

$SOFI $AFRM - I view both of these innovative companies but are overpriced, and don't have as much moat as people give them credit. Yet always interested to hear about them to be proven wrong, and given my investments in $PYPL, banks, and various private fintechs

$EHTH - not Ethereum, but eHealth. Given they fired most of the management team recently, always interested in what the tone/focus of the call is.

BTW as of this week, for S&P 500 companies (plus other popular stocks) you can not only play the calls in real-time at Fincredible, but also read the transcript and monitor specific keywords in real-time. Check it out - https://app.fincredible.ai/latest-earnings

MON

TUE

WED

THU

post media
Next
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.