#1. What is going on

Dude! Your getting a handout. This thread is for the recent announcement of stimulus checks to California residents, and although I stated Cali Bros, the California Girls are always welcome. If you ain't from California, stick around and you may find a play that tickles your non-beach havin' fancy. I would also like to talk about some plays to hedge. Let's get to it:

California is an unusual state. I live here, I drive here, I know lots o' folks both in NorCal, SoCal, Bay, and the State of Jefferson. California has many different Geological formations and this results in different needs per the region, this results in higher cost of living in some areas and lower cost of living in others, and it isn't a small variation. Luckily, I have found that counties are a good way to try and put some numbers together.

High as Giraffe Pussy: San Francisco, Los Angeles, Orange

High: Sacramento, Santa Rosa, Placer, Monterey, San Diego

Low: Fresno, Kern, your mom's house

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So, Getting back to the matter at hand, the handout. Gavin Newsom and his team have decided upon the following:

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Actual footage of California's budget team after long hours presenting the decision to the treasury secretary

#2. Some Numbers

So, a few more numbers to get a better picture:

Average gas in the state right now is HIGHER than $6.06/Gallon. This number comes from GasBuddy, which after looking into a little bit I find that they choose the cheapest gas stations in an area. Congrats if you have a Costco Card. What I find very surprising is how little this gas cost changes within counties. The cost of gas only deviates about $.02.

https://www.gasbuddy.com/usa/ca

But, as I said, this is taking all of the cheapest gas stations. A little field trip around my neighborhood has gas at around $6.30 at chevron, but I am NOT going to adjust these numbers because I don't need to. I am also not taking into consideration the higher grades of gasoline, or Diesel, which is more expensive and you can calculate that on your own next time you are at the pump.

($ amount of check you are eligible for) / ($cost of gas you are paying)=(gallons of gas you can afford)

Gas has gone up about 50% and this is important as we compare to other commodities.

With a cost of gas average of $6.06/ gallon, and a check of $350, the amount of fuel you can buy is 57.7 gallons. To spoon feed you, in an average 16 gallon tank, that is ~3 fill-ups.

The bay area notoriously has long commute times. The average commute can be anywhere between 1-2.5 hours single trip. That is 2-5 hours every day. I would love for some bay area native to let me know how often they fill their tank up, but also consider that a lot of these jobs have moved to teleworking. Optimistically, you are looking at a Czech that will cover 3 months of gasoline.

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#3. Calls on Moving Trucks? Also Tickers

Even though this is how far your check would go if spent on gasoline, there are other things being affected by inflation, and with the rise in telework, gasoline is luckily not the only places these table scraps will fall:

• Meats, poultry, fish and eggs: 14.2% increase
• Fruits and vegetables: 11.8% increase
• Electricity: 12% increase
• Utility (piped) gas service: 30.2% increase
• Airline fares: 37.8% increase
• Household cleaning products: 9.9% increase
• Rent of primary residences: 5.2% increase
• Corn has hit all new high
• Wheat hit an all new high

In higher cost locations, these checks don't mean much. I believe that it would be best to start on the low cost areas as they will have a bigger disposable income based on the brilliant idea of making a one-size-fits-all distribution of funds.

First,

Meats, poultry, fish, eggs:

FSTR = Foster Farms chicken: located in Fresno, CA (lovingly referred to as the armpit of the state). Stock is down, and a great investment for economically stressed times. Take a look at the chart. Got hit real hard with some of the pandemic stuff. Bird flu or whatever. I don't really know.

CPB = Campbell's soup: Would be great if they got their shit together. I can't believe the inability to outperform the market while a world wide flu was going around. I could make an entire post about this company. They're marketing is all wrong, base of operations screw up, upper management mistakes, mis-allocated funds, nepotism. The competition is fierce and Campbell's allowed it to happen. However, CPB may not know what they are doing in a global plague pandemic, but they DO know what they are doing in a global recession/depression. I am eagerly awaiting some kind of action from the board. My Father was a Campbell's soup man, and told me EVERYDAY as a child how bad things were at the plant and how it was all somehow my fault.

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Me and My Dad

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Electricity and Utility Gas:

PG&E is mostly owned by the governor and will not be going out of business anytime soon. That zombie will be propped up on strings and paraded around for decades. They raised their rates 18% last year and something similar the year before, and need to retrofit almost their entire grid with no money. The stock was a titan at one time. Now it is just cursed and doomed to walk the earth and live in the darkness of the shadow it created. Solar companies are running them out of business, and getting paid by the federal government to do it. Again, could make a whole post about this as well, but no. Not a good play. No puts or calls I'm afraid. Theta would be a good play. Also, Electric bills are the first thing people stop paying when under economic pressure.

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Rent of primary residences:

I look forward to your comments.

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Airline fares:

No one is going to spend their stimmy on a flight out of CA. They may pay for a u-haul though. IT's like Jim Morrison said "But I've never been so broke that I couldn't leave town"

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That is about all I have for now. I've given you the run down on who is eligible, where the pain is, and some companies that may benefit from some stimulus during a time of economic downturn. I'm labeling this as Discussion, though I feel like I should label it DD.

If you would like to research more: this is being called the "Inflation relief check" in some circles, and the "Gas Stimulus/relief Check" in others. Yes, there is a fart joke in there somewhere that I am too classy to make.

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tldr;

Spend your Stimmy smartly if you don't need fuel.