Making Waves. | Short $ETWO

Well folks, despite the riots in Mexico, the storming of the Brazilian capital and a meeting of three amigos, markets had a sluggish start to week yesterday with the S&P closing down just 8 bps – this was largely the case worldwide as European and Asian indices performed quite similarly. Regardless, alongside your daily morning brief, we have something special for you today – a deep dive into the augmented reality space with a spotlight on a Canadian firm making waves. Read that and more below within this 192nd Coachman’s Report!
Special Report: The Future of Augmented Reality, Today. | $NTAR
In the years since the Google Glass was first unveiled and Pokémon Go became a worldwide hit on mobile devices, the augmented reality (AR) industry has undergone a series of increasingly important incremental evolutions. While slowly adopted during the early to mid 2010s, extraordinary progress was made throughout the pandemic years as visiting physical locations, and interacting with various physical items became non-viable for extended periods of time across the globe. In addition to its pandemic successes, many have heralded AR shopping as the green method to combat mass amounts of returned items from e-commerce stores clogging up landfills worldwide. These factors forced many to realize the wide-reaching strengths that augmented reality bears across a vast majority of industries, one company that is fueling this innovation is our most recent partner; Nextech AR Solutions. Tri-listed on the CSE ($NTAR), OTCQX ($NEXCF) and the FRA ($EP2), Nextech currently has a market cap of $76.6M CAD and alongside their spun-off subsidiary, ARway, boasts that they are the first publicly-traded AR solutions provider! Click here for our full story on Nextech!
Markets in Review
The S&P’s price channel is squeezing and with traders growing evermore confident in a 25 bps rate hike on February 1st, the last indicator left to watch is Thursday’s inflation print – as such, this event could spark the strong breakout needed to substantiate the start of an upward trend within equity markets this year. That said, with Q4 earnings starting to trickle in, oil prices acting somewhat range-bound and the overall market’s P/E sitting at 20.24x, investor sentiment is still overarchingly bearish. In fact, 42% of market participants are in this camp, while almost the same amount are undecided, leaving only a meager 5th of traders and portfolio managers to fuel any buying.
Short: E2open Parent Holdings, Inc. (ETWO-NYSE) | Timeline: 2 days
E2open Parent Holdings, Inc. (ETWO), which provides cloud-based and end-to-end supply chain management SaaS platforms internationally, reported substandard results in their earnings report yesterday after the market closed. For the second quarter in a row, the company missed earnings and revenue estimates. This time, by -15.65% and -4.39%, respectively. (Full Story) Turning to the chart, the bearish narrative continues as the stock has been oscillating through a downward-facing price channel for the better part of this year, dropping from highs of around $10. That said, as the price has now retraced back to the channel’s upper end, not only has a flag formed but Stochastic RSI is bearish facing, carrying substantial momentum – making for a solid short opportunity for traders to capitalize on.
Zooming out…
Panthers on Canadian Soil
Yesterday it was confirmed that Canada will be purchasing up to 88 F-35 Panthers in order to replace the current CF-18 Hornet planes which have been in use for decades. The first order of 16 jets, which cost $7B, is set to be partially delivered in 2026, while the government has said another 72 will be ordered in the coming years.
It’s great that the RCAF is finally modernizing their fleet, however, for Canadian taxpayers, this deal is far worse than the one that was on the table under the Harper administration 12 years ago. In 2010 the government would have been able to procure 65 jets for $16B with all maintenance costs included for a delivery in 2016. However, that deal was stalled for years, then subsequently cancelled by the Trudeau administration when he took office in 2015.
Wolf Warrior Land Management
Former foreign ministry spokesman Zhao Lijian has undertaken a new role as a deputy director general of the country’s department of boundary affairs. Zhao is famous for being the face of Xi’s ‘wolf warrior diplomacy’, and for trolling American politicians on Twitter through his wide-reaching network of over 1.9M followers.
While some have claimed that this position is a demotion, and signals that Beijing is softening their foreign policy, we are taking another stance. In our view, putting a fierce nationalist as the deputy head of the land and ocean management department is very much connected to the country’s goal of ‘reunifying’ Taiwan by 2025.
Making headlines…
Coinbase to lay off 20% of workers in latest sign of crypto industry pain
  • Coinbase Global (COIN) said in an SEC filing Tuesday that it would lay off approximately 20% of its employees, or around 950 employees, as part of larger cost-cutting measures amid continued turbulence in the cryptocurrency industry. (Full Story)
Legal recreational marijuana sales starting in Connecticut
  • Connecticut’s first round of retail cannabis sales for adults 21 and older was set to begin Tuesday morning at seven existing medical marijuana establishments across the state, less than two years after Gov. Ned Lamont signed legislation making Connecticut the latest state to legalize recreational sales. (Full Story)
GM, Ford, Google partner to promote ‘virtual’ power plants
  • Companies including GM, Ford, Google and solar energy producers said on Tuesday they would work together to establish standards for scaling up the use of virtual power plants (VPPs), systems for easing loads on electricity grids when supply is short.
Trump’s longtime CFO faces sentencing for tax fraud scheme
  • Allen Weisselberg, a longtime executive for Donald Trump’s real estate empire whose testimony helped convict the former president’s company of tax fraud, is set to be sentenced Tuesday for dodging taxes on $1.7 million in job perks. (Full Story)
Chart of the Day: S&P 500 Today vs. 2001


“Don’t count the days, make the days count.”
— Muhammad Ali