November 2021 Research Update
Digital Department

Welcome to our first edition of Talking Shop. We are continuously reading, learning, and uncovering fascinating details about the world in which we live… and invest. This information plays a central role in our research process and helps to determine the investments within your portfolio.

We constantly find ourselves saying “did you hear about…?” or “in the Journal today…” and thought we could craft this into a periodic email. We promise to keep it short – not more than a 3-minute read – interesting information you’ll want to discuss over dinner or at a cocktail party and pertinent – always wrapping back into your portfolio to give you a peek under the hood.

We hope you enjoy reading it as much as we enjoy writing it.

And if you do, let us know!

With holiday shopping in full swing, prepare for the inevitable message: Out of Stock. Just in the last month alone, consumers saw more than two billion out of stock messages when trying to buy products online, according to Adobe, a worldwide provider of e-commerce and analytical software. Retailers are feeling the pinch from supply-chain disruptions causing congestions at ports and limiting availability of merchandise on the shelves. Out of stock messages are up 325% from pre-pandemic times. Turns out Saint Nick isn’t immune to the global supply-chain, so make sure to get your holiday shopping done early!

Netflix’s Co-Founder and CEO, Reed Hastings, donned a lime green tracksuit for the company’s third quarter earnings release as a nod to the streaming service’s hit series Squid Games. In an incredible display of the company’s scale, the series quickly became viral and grew to be Netflix’s largest show ever, reaching 142 million households in its first four weeks on the platform. The Korean show has been dubbed over in 13 different languages, finding global success, and demonstrating the power of Netflix’s platform in importing and exporting content to over 213 million users around the world. The company is reportedly set to make $900M off the thriller and recently announced a second season will be made. Not bad for a show that cost $21M to make.

After over 20 years of work, TransMedics recently announced FDA approval for their Organ Care System (OCS) to be used in the transplantation of hearts and livers. The company now has FDA approved devices to keep lungs breathing, hearts pumping, and livers producing bile outside of the body. Why is this such a big deal? Well, traditionally, organs are transported in an Igloo cooler not much different than one you would bring to a tailgate. Beyond the implications on the health of transported organs, this method creates significant limitations in the distance to which organs are transported. TransMedics, with their OCS, has facilitated heart transplants matching donors in Hawaii to recipients as far as North Carolina. With the recent approvals, the company is in a position to bring the transplant industry to the 21st century and dramatically increase availability of organs available for transplantation which could save countless lives.

 

Best Regards,
The Sandhill Research Team

 

 

 

Disclosure: This has been prepared for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by Sandhill Investment Management. Sandhill Investment Management (“Sandhill”) is a registered investment advisor with the Securities and Exchange Commission that is not affiliated with any parent company. Third-party information in this report has been obtained from sources believed to be accurate; however, Sandhill makes no guarantee as to the accuracy or completeness of the information. All statements made regarding companies, securities or other financial information contained in the content are strictly the beliefs and opinions of Sandhill and are not endorsements of any company or security or recommendations to buy or sell any security. Holdings discussed are part of our Concentrated Equity Alpha (“CEA”) investment strategy. For a full list of CEA strategy recommendations for the preceding year, please email your request to compliance@sandhill-im.com.

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