Spinnerette: 03.12.24
-1.18 x 3 companies
AMGN + APO + EHC
O’ CHAMPAGNE
Today’s Spinnerette.Anagram is about the Vineyard Industry. The focus is on Champagne which represents wealth and luxury and celebration. Oddly, what made Champagne popular was its sparkling bubbles which happens to be a stock market term that indicates a disproportion in the market. When investors overvalue stocks in large numbers, it can create a bubble of value in the stock market that isn’t realistic. Stocks rise in value far above what they can reasonably return. When the actuality of the stock sets in, the bubble bursts and the values of stocks drop. Hence, the term Bubbles used to indicate bursting.
Incidentally, I learned about stock market bubbles through my Wall Street Anagram Word Game. Just like O’Champagne was made-up from the MTCH-UP CHG stocks AMGN + APO + EHC, one day, while I was matching-up stock market changes the word Bubbles appeared from my medley of Ticker Symbols. Stock Market Bubbles involve equities which are shares of stocks that rise rapidly in price. An example of a bubble is the Dotcom Bubble of the 1990’s. These Tech companies achieved multi-BILLION dollar valuations when they went public.
A book recommendation: The Day the Bubble Burst: A Social History of the Wall Street Crash of 1929 by Gordon Thomas and Max Morgan-Witts released in 2021.
On to the history of Champagne: It began in the 5th century by the Romans who selected France’s northeast region known as Champagne to plant vineyards. The early wine from this region evolved from a pale pink still wine made from Pinot noir to a sparkling wine. During the cold winters of the region, fermentation would halt and left dormant yeast cells that would rejuvenate in the Spring and start fermenting again. One of the byproducts of fermentation is the release of carbon dioxide gas, which, if the wine is bottled, is trapped inside the wine. Consequently, the pressure inside the bottles would sometimes explode the wine bottle. The wine containers that survived would contain bubbles. Champenois wine makers considered this situation a fault and over the centuries tried to solve clearing the bubbles from their wines.
While the French still preferred their Champagne to be still the British were enjoying entertaining with this new festive bubbly wine. Monks worked on perfecting the carbonation process including the famous monk Dom Perignon. This sparkling version of Champagne grew in popularity among the wealthy and was used in celebrations. As the Champagne Industry flourished, the controlling of the process and the strength of the containers to withstand the pressure had been a problem until the 19th century when the Industrial Revolution improved the methods of controlling the bubbles and the containers and made the production of sparkling wine more profitable. Champagne Houses of Krug (1843) Pommery (1858) and Bollinger (1829) grew fortunes in the Champagne Industry until the 20th century when two World Wars made the vineyards of Champagne a battlefield.
After WWII, Champagne began to prosper again. The 1950’s Champagne saw a steady growth. However, since COVID-19 like many industries Champagne lost some monetary momentum. Champagne ranks 3rd in Liv-ex secondary market share of trade behind Bordeaux and Burgundy.
Constellation Brands is one of the world’s largest publicly traded wine companies listed on the NYSE:STZ. Revenue is approx. US$9.355 BILLION employing more than 9,300.
The richest vineyard owner is Bernard Arnault & family which controls the Luxury Goods Company LVMH (Moet Hennessy Louis Vuitton). As of this year (2024) Bernard Arnault is reported to have a net worth of US$212 BILLION.
AMGN is Amgen Inc. a Biopharmaceutical Company that focuses on Scientific Innovation. The company was formerly Applied Molecular Genetics, Inc. that started in 1980. It trades on the NASDAQ under the Industry of Biotechnology and is headquartered in Thousand Oaks, CA.
Revenue is over US$28 BILLION and employ almost 27,000.
Traded Today @ $276.54
APO is Apollo Global Management Inc. an alternative asset management and retirement solutions firm that trades on the NYSE. They provide private equity funds, credit funds, real estate funds, alternative investment, leveraged buyouts, growth capital and venture capital. The company was founded in 1990 by Leon Black, Josh Harris and Marc Rowan. APO’s headquartered in the Solow Building - NY, NY.
Revenue is more than US$32 BILLION and employ approx. 2,900.
Traded Today @ $109.94
EHC is Encompass Health Corporation trading on the NYSE. It is one of the largest providers of post-acute healthcare services in the U.S. that includes Rehabilitation, Home Health and Hospcie. EHC was formerly known as HealthSouth Corporation HLS which changed in 2018. The Industry is Healthcare and was founded by Richard M. Scrushy in 1984 and is headquartered in Birmington, AL.
Revenue is more than US$4.5 BILLION and employ approx. 43,000.
Traded Today @ $76.95
Company/Corporation information from Google - Wikipedia and Britannica