You Gotta Fight for Your Right... to Repair Your iPhone?

Biden’s cracking down on Big Tech, and it’s good news for investors.

Posted November 29, 2021

The Genius Bar may need to start serving alcohol.

The whole “genius” behind Apple’s (NYSE: AAPL) in-store repair shops was that customers physically weren’t capable of repairing their own Apple products.

By design, the company created an ecosystem that only it could maintain, and that spelled consistent cash flow.

So when Apple announced that it’ll begin making and selling parts and repair manuals to customers, investors took note.

There’s something big going on here...

The aptly named "right to repair electronics movement" has gained momentum recently, showing that we have the ability to crack down on Big Tech.

The Repair Association claims the following:

The presence of technology parts in modern equipment has enabled manufacturers to reduce access to repair by proclaiming that repair might violate their “Proprietary” rights. This is a marketing ruse and not grounded in law. Manufacturers do not have any rights to control property beyond the sale.

The more we come to rely upon technology in our daily lives, the more important it is that the technology be readily restored to function easily and locally. We believe that manufacturers that help their customers enjoy the use of their investments for the long term will be rewarded with higher customer satisfaction and brand loyalty.

The 2020–2021 European Investment Bank Climate Survey found that nearly all developed nations want to reduce tech waste by creating repairable products...

repair

It’s a simple concept with big implications for the tech industry and the world.

Manufacturers will no longer restrict how customers repair products after they’ve purchased them. Once the end user purchases a piece of technology, it’s their property and they have the right to repair it themselves if it breaks.

That means no more having to take a trip to your local mall late at night to fix your busted MacBook or iPhone.

And, in the case of McDonald’s, it means the company can’t restrict who repairs its broken ice cream machines.

I mentioned a few weeks ago that the Federal Trade Commission (FTC) is investigating McDonald’s over the broken machines, and it’s moving swiftly.

That’s because President Biden signed an executive order in July promoting competition in the American economy with the intention of preventing “unfair anticompetitive restriction on third-party repair or self-repair of items.”

Two weeks later, the FTC released a statement saying it was ramping up law enforcement against illegal repair restrictions.

Watch out, Big Tech, Big Brother is coming for you.

But like most things government-mandated, companies will find ways around the restrictions. They’ll do the bare minimum to pull the wool over the government’s eyes.

The announcement by Apple goes against everything the company was founded on: a revolutionary closed-end operating system with irreplaceable hardware components like batteries and video cards soldered into the frame.

So no, Apple isn’t doing this for the benefit of the customer, but at least it’s a step in the right direction to keep Big Tech in check.

Latest Insider Trades

We’ve had a turbulent couple of weeks in the markets.

And when the seas get rough, I find comfort in knowing what the insiders are buying.

Reading through Form 4 filings, I found some recent cluster buying in Maryland-based Rekor Systems (NASDAQ: REKR).

Cluster buying refers to when three or more company insiders purchase stock at similar times for similar prices, and it’s a widely held bullish indicator.

Insiders aren’t in the business of losing money, so when you see large purchases, you want to pay attention.

Rekor CEO Alan Berman, CFO Eyal Hen, and director Glenn Goord purchased 87,000 shares at an average price of $6.86 on Wednesday, November 17.

The stock dropped 30% two weeks ago on an earnings miss. Rekor came up short in revenue, reporting a loss of $0.23 per share on $2.6 million in revenue compared with Wall Street’s estimates of a $0.12 loss per share on $5.01 million in revenue.

But insiders saw this drop as an opportunity to get in on the cheap.

A day later, Rekor popped 15%, hitting $8.21.

These are the types of real-time trades I’m working on bringing you very soon.

The company has some momentum behind it, as business is picking up after the new infrastructure bill was signed into law.

Rekor provides “intelligent infrastructure solutions” using data analytics.

The company sets up roadway cameras (many that run on solar power) that livestream traffic. This allows the company to gather real-time traffic data to determine patterns and trends that the Department of Transportation, engineering firms, and law enforcement agencies can use when devising infrastructure plans.

Revenue increased 23% year over year, and the company's transitioning to a subscription-based model for its products.

And if we know one thing, it's that Wall Street loves subscription services.

After the insider buys, momentum turned lower, but the stock’s still hovering around oversold territory, especially since it was trading around $24 not six months ago.

Next, we have Canoo (NASDAQ: GOEV), or what I call the next Tesla.

Three weeks ago, I wrote this about the company:

Call volume is directionally bullish, as Canoo just announced a battery deal with Panasonic (OTC: PCRFY). Vanguard, Blackrock, Bank of America, and Citadel have all increased their positions this year. In total, hedge funds have increased their positions by 100% in the second quarter of 2021.

We also know from Form 4 filings that Daniel Hennessy of Hennessy Capital Partners purchased 500,000 shares at $10 for a total of $5 million.

Canoo announced that it’s moving its headquarters to Walmart’s hometown of Northwest Arkansas while building more facilities in Oklahoma. These sites offer $100 million in economic and tax incentives.

The company beat third-quarter earnings estimates, losing $0.35 a share instead of the estimated $0.44 a share.

It also said it would begin production of its "Lifestyle Vehicle" sooner than expected, before the fourth quarter of 2022.

Canoo calls it a loft on wheels.

canoo electric minivan

Investors had the same bullish sentiment as the insiders, as the stock hit a low of $8.05 on Nov. 10 but then rocketed to a high of $12.43 on Nov. 17.

That’s a 54% gain in one week!

If you got in on Canoo, please write in and let me know and I’ll be sure to feature your testimonial.

Monday Trades

Finally, I mentioned Volta (NYSE: VLTA) back in September, and it unfortunately took a tumble in October.

But it’s since soared after Biden signed the $1.2 trillion infrastructure bill, gaining 64.47% for the month.

I still like the company, as it’s a leader in the electric vehicle (EV) charging space.

The big infrastructure hurdle for EVs to compete with fossil fuel-burning vehicles is to have available and reliable charging stations.

According to the American Petroleum Institute, there are 150,00 fueling stations in the U.S. but just 43,000 EV charging stations.

The positives about EV stations is that they don’t take up a lot of space, there’s no need for tanks filled with gasoline underground, and they are more nimble, so you can install them in parking lots, shopping malls, or apartment complexes.

Volta now offers advertisers the ability to promote products on their charging stations while drivers charge up. The charging stations feature digital screens that let advertisers engage potential customers before walking into a store.

Advertisers are seeing green...

volta

The company notes that, “Our stations double as an ad platform that increases the value of real estate by engaging new audiences and telling high-impact stories using sustainable technology.”

According to Volta’s brand studies, advertising increases awareness, consideration, and purchasing intent, which means companies will pay big bucks to advertise on the platform.

Call volume is above normal and directionally bullish for the stock. Bank of America, Citadel, and UBS have all added to their positions for the recent quarter, so institutions are starting to get on board.

Insiders own 17.9% of the shares, and insider transactions are up 26% in the recent quarter.

Additionally, Volta announced partnerships with AMC (NYSE: AMC) and Topgolf, so its future revenues are locked in.

Movie theaters, golf, shopping... It’s crazy to think about the world going back to normal. It's slowly happening, but it’s all predicated on destroying this pesky virus.

And this little-known company might be the silver bullet that finally ends the COVID-19 pandemic.

The company's trading for less than $1, and its product could soon be in every medicine cabinet in America.

FDA trials are already underway, and if the drug gets fast-track approval, this biotech stock could hand early investors a windfall by next year.

To your wealth,

Alexander Boulden
Editor, Outsider Club

After Alex’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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