♟ Two Under-the-Radar Supply Chain Winners

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"These two companies could emerge as 'under-the-radar' supply-chain winners."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

I'm sure you've heard all about the backlog in the supply chain...

Perhaps you've even been affected by it.

As we come out of the COVID-19 pandemic, one of the biggest impacts continues to be the major disruption in the supply chain ecosystem - which is introducing new and unforeseen barriers each and every day.

Some of these include...

  • Material scarcity: Thanks to an abrupt rise in post-pandemic consumer demand, companies and suppliers alike are now struggling with limited availability for many parts and materials.
  • Increasing freight prices: The need for container shipping has increased considerably throughout the pandemic, as the lockdown measures have now triggered a surge in e-commerce sales - leading to greater import demand for raw materials and manufactured consumer goods (most of which are moved via shipping containers).
  • Port congestion: As a result of increased container ship demand, you're now seeing port congestion - which is caused when a ship arrives at a port but cannot load (or unload) because that station is already at capacity.

Add it all up, and everything from a subzero refrigerator to the hottest holiday toy is now seeing lead times explode like never before.

[SHOCKING]

Pro Trader Bryan Bottarelli has had ENOUGH of the coin-flip moves of stocks.

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Knowing this, the key question any savvy investor would ask is...

What's the investment opportunity here?

Today, I'd like to share two companies that could emerge as "under-the-radar" winners in this supply chain bottleneck.

Supply Chain Winner No. 1: Etsy (Nasdaq: ETSY)

The crafty online marketplace primarily connects buyers and sellers in the United States - offering 85 million items in its various retail categories. Knowing that you're buying an item from a mom-and-pop shop from Iowa with a three- or four-day lead time (instead of something coming from a container ship from China) could trigger more traffic leading into the holiday season.

Chart – Etsy Daily
 

Supply Chain Winner No. 2: The RealReal (Nasdaq: REAL)

The online marketplace for consigned luxury goods could see an uptick in consumer interest - as the combination of inflation and supply chain uncertainty could lead to more people looking for cheaper, preowned (but still verified) high-end products this holiday season. For instance, why pay $1,000 for a Burberry scarf when you can get a used one in great condition - and on time - for only $200?

Chart – The RealReal Daily
 
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YOUR ACTION PLAN

Both Etsy and The RealReal look like supply chain winners. And for less than $12 per share, The RealReal seems like a bargain. Both trades are under-the-radar supply chain winners heading into the holiday shopping season.

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MONDAY MARKET MINUTE

  • A new Lyme disease vaccine is being developed. Pfizer and a small French biotech named Valneva might be ready to begin clinical trials on a new vaccine candidate early next year. Phase 3 could begin in 2022. As it is the only candidate that could reach the market, I'll be paying attention to the trials for the vaccine - which is being called VLA15. More to come.
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