35 Burst results for "Cash Flow"
SAP Shares Collapse After Lockdowns Force Cuts to Revenue
"SAP. The Enterprise Software Group based in Germany is having its worst day in more than a decade shares of sap are down more than twenty percent after the company cut revenue and profit guidance for the year. Jim. They're saying that corona virus lockdowns would affect demand well into twenty twenty one. What do you make of this? Because I I'm sort of struggling with. two competing ideas and one is that sap is right. In terms of overall demand and if they're right than that probably. Bodes ill for a number of cloud base stocks out there. The other idea is that this is an sap thing. This is just confined to them. Yeah and I think you're right to have that kind of of two minds response. Unfortunately, I, don't have a definitive answer. Of course if I did have a definitive answer, I probably wouldn't be here with you today I'd be on a beach earning you know whatever? You look. As anyone who's ever been part of an sap implementation I think you probably taking a little shot in Florida. Today I know I am has as I might prior career I got to be part of. One of those experiences and sap implementation tends to take at least twice as long as they originally tell you and cost a lot more, and so I'll just leave it at that. I also used to you know if I heard a company with implementing sap. Generally throw them out of my research cue for at least a year because. I've seen that movie. Yeah earnings were not well received about forty billion plus this morning off the market cap. They did try the old lipstick on the pig routine did talk about strong double digit growth and earnings per share. Growth cashflow they talked about their operating cash being up fifty four percent year over year free cash flow up seventy, nine percent year to date. But the problem is you know. And is reminiscent of IBM a number of years ago or IBM would talk about having these goals and certain twenty fifteen goals and twenty twenty goals years before. SAP has had what they call the twenty twenty three ambitions. and. They reaffirmed these twenty twenty three ambitions last quarter, which would be the quarter where corona virus and cope nineteen really got traction. And without so much a by your leave this morning, they have thrown out the twenty twenty three goals replaced them with twenty, twenty, five goals. The twenty twenty three revenue expectation, and the previous goals are answering ambitions. Was Thirty five billion now, two years out for twenty twenty five that ambition is for thirty, six billion. Okay they've. That looks like a slowdown to me sap. Certainly. They have reduced a bunch of. Components of their guidance perhaps, they shouldn't have been giving guidance during pandemic that might just be a little suggestion. Some somethings I've seen. You know th, the stock wasn't horrifically priced before this I believe was about eighteen times EBBA enterprise value to. About five five and a half six times sales there are certainly richer companies out there. But? When you have this kind of growth slowdown and it comes kind of out of nowhere I, can see why the markets puking puking it out. I've seen some suggestion that former CEO bill McDermott. Who I think has a an exquisite sense timing. He left about a year ago to go to service now. There's some suggestion that he had this big long acquisition string under his belt. Then, he left in these acquisitions. All in their own little personal fiefdoms within sap, they're not well integrated. So he's kind of handed these ambitions and this integration work to the next guy. I think there's a lot of work to be done here but. Really, the the serious reaction here certainly has to be that. Oh. Yeah. Reduce Guidance Change Ambitions like like you've just thrown out a multi year plan and it's kind of replaced with another one and you're hoping no one's GonNa notice. All they noticed. You know whether it has implications beyond sap. If I was a salesforce or an oracle shareholder, this morning I might be a little nervous. Now look that said we we know that the cloud based. Transition which we've seen other companies do very successfully autodesk and adobe being I, think exhibits one in one. Where shift from selling the You get the big revenue and earnings hit upfront because you sell the license for X. number of years, and then you do your services revenue. Going over to. This cloud where you get a subscription fee every month and it's supposed to be. More predictable results we know it works when done well as I mentioned adobe and Autodesk. Seems that it's not working quite as well with sap. and. We'd like to see I think you need. More quarters sap but I'll if I was a cloud I'm not really a cloud guy. So I find it interesting but I'm not remotely equipped to understand most of it. You know I'd be a little worried going forward the rest of this earning season to be
Think Twice Before You Eat That Halloween Candy
"The urban legend of Razor Blades in your Halloween candy or poison hidden behind the sweet taste of a snickers bar has been around for decades to this day. Parents are still worn to inspect all candy give into their children to make sure that it's safe for consumption quoted from a mental floss article written by Ethan treks quote it's easy to see how urban legends have taken hold because they're so terrifying after all parents Ben Three hundred, sixty, four days of every year telling their kids not to take candy from strangers precisely because of might be poisoned. Then, give the thumbs up to taking snacks from every house in the neighborhood on Halloween, and that's so true and it also calls to mind the whole idea of like when we re under it, we were told not to talk to strangers online and not to get in cars with strangers, and now we literally use the Internet to summon strangers to get in their cars yet. So. Weird. It's crazy. So in one, thousand, nine, hundred, five Joel Best, who's a professor of sociology and Criminal Justice at the University of Delaware publishing article that reviewed reports and press coverage of candy tampering in the United States between nineteen, Fifty, eight to nineteen eighty-four during the search he found a report as early as nineteen fifty nine where children were falling ill after a California dentist named. William. Shine had distributed four hundred fifty candies laced with laxatives. Two Children Jesus thirty of these children were actually affected by candy tampering and he was later charged with outrage of public decency and quote unlawful dispensing of drugs for a dentist. A dentist, a nine, hundred, sixty, four in New York a forty, seven year. Old Woman named. Helen feel was. Annoyed by the Halloween custom of handing out candy to children especially to children who she felt deserve to be given free candy for she handed out bags of treats including ant poison and dog biscuits while when she was confronted about her actions she said, she was doing it as a joke and only gave the items kid she felt were too old to be trick or treating. Is later reported that she was admitted to the State Hospital for mental observation. Good. God right. You don't know what their issues and why they're treating, and even if they don't have an issue like who fucking cares don't be so stingy. Yeah. Like would you want them taking part in egging in toilet paper toilet paper people's houses or would you like them going door to door and get some candy? Just let them go home with bags of candy and then do whatever they're going to do at the house. They're not gonNA come back at midnight to your house. They've if you give him dog biscuits. Yeah. It's like you just set yourself up for some mischief right in one thousand, nine, hundred, Sixty, eight, Toronto police had discovered razor blades and noodles and Halloween apples. The footage found in the CBC Archives Showed Police Displaying Candy that was supposedly poisoned in nineteen seventy, five year old boy named Kevin Dotson from Detroit died after supposedly eating heroin laced candy diseases. After news media outlets had a field day with telling all parents to dispose of their children's hard earned cash flowing treats. It was later discovered that the parents of the child were trying to hide the true events led to his death apparently the uncle of the boy. had a heroin stash in his home and the little boy had gotten into it and ingested a capsule filled with heroin. The parents sprinkled heroin on the boys Halloween candy after he had died as a cover up to protect the boy's uncle God. But that also kind of reminds me of the the thing that goes around of Lake don't watch out people are putting edibles in your candidate and like no nobody's giving you hundreds of dollars of drug senior kids. In two thousand and Minnesota a forty nine year old man named James Joseph Smith was charged with felony for tampering with candy after a fourteen year old boy was pricked with a needle after biting into a candy bar. Lou. He apparently had put needles into snickers bars and handed them out on Halloween. Night. He was charged with one count of adultery in substance with the intent to cause harm illness or death new four other boys were found to have the needle lace snicker Bar, but the only one boy was harmed. In Two thousand sixteen in Nova Scotia a twelve year old boy was injured when he reached into his candy bag and was cut by a razor blade poking out of a kick cap arc. In two thousand, seventeen multiple reports come out of Ontario Canada where eleven year old girl underwent surgery at U. ship it into recess peanut Butter Cup containing a metal object although it was unclear if this was a result of candy tampering or a manufacturing incident. And other eleven year old boy was also reported to have received a Tutsi roll containing melatonin pill before. Tone of all things so. Yes. So harmless but just go to sleep in two thousand, nineteen in Connecticut thirty seven year old Jason Racks was arrested and held on a two hundred fifty thousand dollar bond after the parents of at least two trick or treaters found razors in their children's candy bags. He was charged with risk of injury to a minor reckless endangerment and interfering with police officer apparently did not go quietly when arrested and he also stated that the razor blades were accidentally spilled into the Cannibal for boxer razors who just happened to have next to it. Yes. Yep Yeah I totally believer like you do a later unrelated incident involved someone handing out THC laced gummy candies in their Halloween trick or treaters. Each of the bags contained colorful gummy cubes each packed with ten milligrams of THC. It was stated that it was unknown if this was intentional or from might have been an unintentional oversight by the person handing out the treats but the packaging was obvious enough that it shouldn't be consumed by children Marcos is probably high end didn't notice it air probably high and just in the bag knows because there's pictures of it and that looks like little gummy little gummy bear bags. Yeah. So again, the joke comes up though that nobody's going to willingly hand over yet. They're edibles. Yeah. At the conclusion of Joel Best Research. So get it only went from nine, hundred, fifty, nine, thousand, nine, hundred, eighty, four, and a lot of these cases. I, told you about were in the two thousands So, this was his conclusion with his research at the conclusion of Joel Best Research into candy tampering incidents. He concluded that the vast majority of reported about seventy five percent who were either hoaxes conducted by children or their parents or didn't result in serious injury interesting. He also stated that contemporary legends are ways that society expresses anxiety and urban legends like Halloween Sadism could've stemmed from societal grievances like nineteen, eighty, two with the cyanide laced tylenol incident in. CHICAGO? The September eleventh terrorist attacks and subsequent Anthrax scare and of course now with Yeah. which actually plays into what you were saying. Devil's night about the depression and the war and how people just kind of like did what they did on Devil's night as a reprieve or as Cathartic. Occurrence. Yeah. So yeah, and that a lot of these urban legends Kinda just stemmed from people just having so much anxiety about the world in the world's problems. Yeah. Yeah. He has stated quote is it possible that someone maliciously passes out treats with the intent of harming children at random of course but this raises the question why they're usually aren't multiple reports from the same area effectively saying that the urban legend is just that nothing more than a hoax or scary story to tell her on time we're anxieties already
Netflix's Q3 demonstrates the dreaded 'pandemic pull-forward in demand'
"Netflix's just reported in its worst ever earnings MISS INVESTORS BANS quarterly results from the streaming giant Jillian. Boston's on the West Coast this morning joins us with what went wrong in Q. Three. Was it Netflix's or wasn't the analysts Julia? How well expectations that were certainly high and then? Netflix shares today we see them plummeting on the biggest earnings myths and snatch flicks went public those earnings falling nineteen percent short of those analysts expectations now with Netflix. Of course, always about that subscriber number, it fell short of the companies already lowered expectations the company outages two point. Two million subscribers in the quarter in guided the addition of fewer subscribers in the fourth quarter then anticipated. Now, that's not all looking ahead to next year. NETFLIX's warns of some very tough comparisons but co-ceo hastings saying he's not concerned about competition we compete. So broadly, we compete for time against you know tiktok to as well as HBO as well as I tell really, the limiter for us is you know what's the quality of our service How often how many nights you say Oh my God I want to go to Netflix and and watch the next show. In contrast to Netflix snap shares soaring after beating expectations about twenty one percent beating expectations really across the board snaps revenue growing fifty two percent more than double the growth rate than analysts projected with a surprise profit of one cent per share that's compared to the five cents per share loss than analysts anticipated. Now, Becky what's really interesting here is that snap has really benefited from Kovin pushing advertisers to try their augmented reality ad formats and also guys there was a subtle dig at facebook sounds like they may have benefited from that facebook ad boycott well. Julius stay here we want to bring in another voice to the conversation as well. Rich Greenfield joins US right now he's of course, partner and Co founder light said partners and I want to start with Netflix's first. Then we'll get back to the snap story, but but Netflix, you say the real story here is that the bear story is gone. What do you mean these are disappointing numbers, but it does come after a very strong first-half for the company for for a subscriber ads. Yeah. Look look I heard the commentary that you were just talking about in terms of like the biggest. History of Netflix. But remember this is a company where again people are very focused on the subscriber trends and the subscriber trends in the first two quarters far out seated in terms of the beat far outside at Amiss here I think the real story that people should be talking about is that not only are they generating substantial free cash flow this year, but even next year as production is in full swing again, they're talking about that they may be at break even free cash flow and so the financing the sort of the bear thesis on Netflix for years was that they. Don't have the money to finance all of this content they're going to run into capital, they won't be able to finance. They won't be able to raise capital and that was sort of the the the bear thesis that's been ongoing for years and years. They're basically self financing now. So the view that Netflix has a capital raising issue is now gone, and if you start to look out over the next few years in terms of their pricing power and you're starting to move up price in Canada recently in Australia, we think the US will happen either in or early Q. One. Pricing Power and all of a sudden you don't have any cash flow needs in terms of having to raise capital. This thing's going to generate dramatic free cash flow and you're going to see the scale to billions and billions of free cash flow a year. That's what people should be talking about look beating lieutnant missing numbers is never a good thing for stock I get why it's down today make sense that it's down at Ted a huge run this year but I think this is more about consolidating as it continues to move higher. into. The point I think the company said on the call that if there had been another forty eight hours in the quarter, they would have met their projections or even exceeded some of the projections on this. But but when you see a pullback of about five point, three percent today does that represent a buying opportunity to you given how much the stock is already run this year? Absolutely because I think the thing that you need to be thinking about Becky is when you think about what's happened over the last sort Of like six weeks, what's really become clear one, the pandemic isn't just disappearing. You're seeing it flare up again in the US you're seeing flare up across a lot of Europe it even parts of Australasia like this is not going away. So we're all going to be more homebound or in terms of you know kind of entertainment activity for a longer period of time unfortunately over the course of the next six to nine months at the same time, the movie calendar has cleared out like all of the movie studios have. Essentially delayed all of their content two, second-half twenty, twenty one if not into twenty, twenty two, and so the path for Netflix's the runway has been completely cleared. They were going to be putting out movie after movie they've got a Ron, Howard movie hillbilly comes out in a few weeks an animated feature over the moon there's just a ton of content coming and really no competition and so I think that's GonNa really well,
Netflix Subscriber Growth Slows Amid Heightened Competition
"Of Netflix in the premarket right now down about 5% after the streaming service came out with earnings that missed estimates when it comes to a new subscribers and the forecast for future subscriber growth, a sign That the post pandemic future for the streaming company may be a little more cloudy than expected a foursome insights we welcome Eric Hagstrom, forecasting analyst at E Marketer. Good to talk with you this morning, Eric. What's your takeaway from Netflix Earnings should be thinking now that this company is in a better position when viewers have fewer options and her sort of shut in Well, let's let's look at the big picture. First off, they've added more subscribers so far in the first three quarters of 2020, then they did all of last year 2018 and those were their two best years ever in terms of music. Hi, Brad In total. Now, when you look at their major markets like the U. S, where there are already over half of all household in the U. S, described Netflix and more than half You already have access to it via password sharing things like that growth in subscribers. I always love And now this is something that Netflix was cautioning against in the first half of this year, where they saw really, really strong subscriber adds worldwide, so they missed their subscriber guidance by about 300,000 drivers but again In context they have just under 200 million subscribers. So it's not a massive change against expectation. So where do you see Opportunities for growth for the company. Now is it reached a saturation point when it comes to subscriber growth. Well, there certainly is a little bit more room for growth in the U. S. In terms of subscriber growth. There still is a good amount of room internationally for subscriber growth, and they are investing in new originals and knew what Contact to really help grow their base internationally. But in some of their more developed markets like the U. S. They are going to have to drive revenue growth by driving prices higher and they do have a significant amount of pricing power despite the competition, But again, subscriber growth could be a lot slower moving forward in the more developed market. As economy start to reopen that opens the possibility for Netflix to begin ramping up production. How crucial is that for the company in terms of getting back on a firmer footing for investors? Well, ramping up production is very important for Netflix. But Netflix does produce the show's on a pretty long time line. So, according to Netflix, at least their constant relief schedule won't be affected until sometime later next year on Dis stands in stark contrast, many of their competitors like Disney or Warner Media. You work in a much shorter production timeline and are already experiencing production delays and content release place as a result. Picnic corona virus and related shutdown. So any, you know, re certain production for Netflix really won't hit their service until sometime later next year, or even in 2022, so they're pretty set for the near future, At least any sort of research and production will be very good for, you know, kind of the mid term for them. Does the restart of production raise cash burn issues for the company. I know on their call last night, they said that they're in a good position and won't have to tap capital markets in our last minute here. Do you buy that? I do To certain extent, they borrowed a significant amount of money to fund future investments in media but again You know this is a company that has been profitable on in a bit of basis for awhile, but they have had negative cash flow, and that situation has been improving with time on Daz the growth subscribers as they drive prices higher. I would expect that that free cash flow issue becomes a lot better over time.
Should I Use My Employer's Car Lease Benefit?
"Ethan is in Detroit High Ethan. Welcome to the Dave Ramsey show. Doing great man how can we help? I word for an automotive maker manufacturer and engineer there. Can One of the company perks or benefits I guess. That they offer is a employee leaf option, right? So I I can get a vehicle. It's a one year lease. Yep a London Mile with insurance included YEP and repairs. Repairs Maintenance wrinkly Irish included everything's included. Yep and prior to. Working there I was paying around two hundred insurance. Idea of And I'm debating. So my current payment is around five fifty and actually brought my wife's and on the program recently. I'm debating even worth it to carry that. The Fowler. The lease on your employment on your employees deal. Yeah Okay. You're on and you're driving a nice car. Yeah it is. It's a truck. You you didn't take. You didn't take the cheaper chicken you got the big dog. Well Who is Ford. Our Jeanne outs. I. Chrysler Oh. Okay. All right. Well, I've looked at several of these Nissan is here in our neighborhood I've looked at the Ford one. I've looked at the GM. Went off the top of my head but most of these have nothing to do with a traditional card lease. It's an employee benefit program. You're basically got a car completely furnished miles everything insurance everything's built in at five fifty. You can't touch that truck for that. Truck goes down five, hundred, fifty dollars a month in value if you own it. And you got insurance and maintenance and gas and everything they include gas don't they some of them Goodson doesn't okay but it's got everything is maintenance included. All maintenance. So car breaks, you just take it in. Yeah. So this is not a this is an employee benefit. This not lie to Lee. Not, Your Evil Carly's program right that the other side of your company sales. But this is a great deal for you Ethan driving around. Yeah. It's a round. where? I, thought you were thought. Dadgum usually, it's not five fifty. It's usually like three hundred when I'm running into these things but you got your driving seventy thousand dollars truck. That's the thing. So good for you. You cannot touch that truck for that kind of money it's six grand a year and everything's G. if I worked there I would do that deal. This is not a finance plan. This is not a lease. This is a simple employee benefit and it is a killer employee benefit do it I guess we're kind of debating knows. So my wife is on it too. She has a wrangler. Yeah, and I'm wondering if it's worth to have two vehicles on that, we're trying to get something cheaper off. Let me try this again, you cannot operate a vehicle for three times what you're paying. Car Think. About. It add insurance. Maintenance depreciation. In value right now, put those three numbers in the calculator. Do the truck you're driving it takes fifteen, hundred, fourteen, hundred dollars a month to replace it. Okay because a stupid things going down in value more than you're paying a month, not counting the maintenance in the insurance. And the same for her now. The question is. Can you afford? Are you? Are you biting off too big a bite of the apple here is your household income, support these payments but the bottom line is if you if they support these payments and you were to buy this vehicle, you're going to have three ex in the vehicle what you're paying. Okay so it's a great deal. Do as many as you need to do as long as you can handle the cash flow out of their income, which is unbelievable. So would a situation like this? Dave, if you were to leave the company, you're just turning in the vehicle. Yeah you lost it. You lost your employee benefits. You lost it. Okay. And you and you do need to flip it every year because they're they're flipping these things out that you know it's a small percentage of their total production under the employees right but the Nissan plan is very similar. Right down here, the road from us the the Ford is very similar. I've seen those and BMW's and other one's got. They've got one that's pretty similar to the guys over in south, Carolina that listen to us over there at the beamer plant It's got the same option and driving a stink in beamer for a third a fourth of what it would cost you. Anyone else. To buy it outside of that employees listen everybody out there that's listening real quick. We're talking about an employee benefit program not nataly idolise yeah, I. Don't don't don't blow up men box with this It's an employee benefit plan, which is why people were able to do that. So it's part of their recruiting. It's part of the benefits that they're given to their team members. So just wanted to clarify that. Yeah. In his case on that layer worth hit the employee benefit. The value to him is around a thousand dollars a month because it'd be fifteen hundred to replace what he's doing for five hundred. Oh. Yeah. His truck payment. Yeah Without A. That's another twelve thousand dollars a year in income are effectively his benny package is adding. Another two thousand dollars a year to his value again, assuming you can support that level of truck with your income. We not ask Denka I got sidetracked on that. But as Chris said, it's very, very, very smart to say. out loud. We are not saying it's okay at least a car this is not leasing a carton. This renting from your employee employer has a benefit that's all as they call it a one year lease, but you can turn it anytime. You want I don't even hold you to that on this. Very, very good.
I wouldn't go near this with YOUR money
"Continues. I've seen the ETF INVESCO SOLAR THE TICKER SYMBOL IS T. A. N. I've seen this increased significantly this year it follows stocks such as soon technologies n Phase Energy and son run inc.. I'm wondering if these stocks are goodbye and if they are still good at these prices given their recent release. Given their recent increase. I will just point out. Just. A time stamp this this ETF INVESCO solar hitting a year high today. Yes do you want the short answer the long? Well, this is a friend from Calgary. So I felt Canadian I'M GONNA. I'M GONNA go along how about the medium answer? Okay. I love this question. I am a big proponent of solar I have solar on my house, which helps the power mostly electric car I'm a big fan here. I wouldn't go near this ETF if with your money Chris. So. So here is, here's the problem I off This is a this is almost a textbook example of investing in the rear view mirror or using the river mirror to govern are investing I'M GONNA since we've already talked before being recorded about a little bit of history and Black Friday I'm even another little piece of history. Okay in two thousand. Nine one thousand nine was the the the apex of the Great Tech Bubble. Okay. The Nasdaq index was I believe a up over eighty percent that year and so now you're in two thousand and I'm GonNa get a Canadian cut here Canada we are retirement accounts RSP's we tend to tell you big marketing push to fund your RSP around February. Okay. So the first two months of the year. Would you like to hazard a guess at what industry was the single greatest and it's not close the single greatest benefit Sherie of new money flowing into the market in February of two thousand. And if you said Tech. Gold Star. Most of the money that came in that year went into tech funds because they had done so well, the year before the two years before. This is easy. Money right it. Of course, the bubble popped in March of two thousand starting off touched off grinding down market from March two, thousand, October two, thousand and two that killed the Nasdaq I believe over sixty five, seventy percent over that time I, could be wrong. So the point is. This the people who are going into tech funds at that time were investing in their review. So this ETF said hitting multiyear highs today Chris. The one year performance with this fund is about one hundred and twenty percent which. Not, not, by coincidence is roughly the one year performance of the index purports to track the global. Solar. Energy. Index okay up about one hundred, twenty percent but dial out. Don't look at one year look at five years five years the performances annualized roughly. Twenty percent now, five years twenty percents still, pretty good. Right. But realize you're getting this last year, which is not one hundred twenty percent is influencing those five years. Okay. So it's probably had a bunch of flat to negative numbers in the first four and then attack one hundred and twenty percent on an annualized that and he got twenty percent dial back out even further. The ten year performance for both the index and this ETF is negative. Okay. So to put it in perspective ten years ago, Chris you and I go put ten, thousand dollars into the market you today you have about twenty four and a half thousand dollars I go ten years ago and I put ten thousand dollars into this ETF? I have roughly ten thousand dollars. Okay. So this has not been a long-term this the performance in the last year solely because people have kind of gone a little crazy chasing these solar companies now again, I mentioned I have solar install on my house. Okay and I will tell you the single biggest risk factor. You should be worried about when you put solar on your house or you look at solar as an investment. Is that you are highly dependent on the subsidy programs within the jurisdictions where these companies sell their products because frankly solar commodity invaders, nothing special Mike Panels, versus yours is about my versus yours or my racking systems or whatever. Okay. In my town. I got I get a little bit of a benefit because I put it. I do we have what's called net metering so I put some of my generating energy back into the grid I get some credit for that It's not great but it is what it is and I put it on my house because I. My background bioengineering couple of degrees. In that thing I spent a decade in practice This is kind of what I like so I took the opportunity we put on. I can tell you friends of mine before the government changed the rules to go two net metering friends of mine put solar on their house. They're getting a nice fat check every month because their system is grandfathered. Okay. It was so generous that the people who put solar in at that point in time got these generous pay offs. The government said Hey we want to stop giving generous payoffs and so they changed the rules to go two net metering I. Don't get a check every month. That's fine. It's okay. But I can tell you. Speaking. To The installer for the system when he put on my house just over a year ago, I asked him how's business and he basically said when the government changed the rules. The number of installs we did dropped by almost ninety percent. So if that happens in any of the jurisdictions where these companies, he mentioned solar edge and faith son run. These are really expensive companies on in terms of their valuation. I. Think I look Sola registrating almost seventy times free cash flow. You had best hope that wherever they are selling their products they don't change the rules because if you do that stocks go a lot cheaper
Delta CEO on what the airline industry needs to survive
"Is reporting a larger than expected $5.4 billion loss in the third quarter compared to a $1.5 billion profit in the same period last year. CEO at Bastion It's going to take some time you know into the spring early part of next year before we start to see Profits and as well as cash flow. Delta has taken steps to reassure passengers even as the company hemorrhages cash, pledging to block middle seats through at least early January. Even as most major airlines have returned to full capacity. Delta is generally regarded as one of the best run airlines in the world. And they reported a blockbuster loss even as they tried to reduce costs. What does this mean for the airline industry as a whole? You know, big picture. This means the airline industry really needs the bailout. NBC's Blaine
Trump Pushes for Covid-19 Relief Measures After Shutting Down Stimulus Talks
"Trump is sending mixed messages about a possible Corona virus relief bill. He says he supports help for airline small businesses. Another stimulus check for individuals, but he also Broke off talks on a wider relief bill live on our news line Now is Bloomberg reporter Olivia Rockman. Olivia. Does this mean talks are back on? Are they off? Where do we stand? Well, it's pretty clear that Democrats don't really support a piecemeal bill, which means they wouldn't want just individual measures like that pass. So it's really unclear to us whether something like that would go through and even if it does, we don't expect that it would take place before the election on November, 3rd. So as you analyze this what kind of help Exactly is the president in favor of and what parts of it does He not like. It appears that overnight he switched his perspective on airline support, as well as stimulus checks to individuals which would near the $100 check that one out earlier in the pandemic. But beyond that doesn't seem like he's included state local government or increases to unemployment benefit, either. What are the consequences? The Fed is warning about. If there's no more help for the millions who are hurting because of the pandemic, what could happen? Right. So when you don't have additional money and people talking, so there that's from an employee benefit or people just not being able to stay afloat and then support their employees. That just means that there's less cash flowing through the economy, and that limits economic growth in the form of GDP, and it also leaves many people and needed additional welfare. So I guess the big question here in the one that people really want to know the answer to is What's goingto happen? There are a lot of people listening right now. Who say I could use that stimulus check? Am I going to get one? How do you read the tea leaves? Many economists have told us that they expect some sort of stimulus will happen. The big issue is the timing, So will that be before the end of the year? Will that be after the inauguration in January? On the other issue is what that will look like. So could it be a stimulus check? Maybe. Could it be additional unemployment benefits? Perhaps where did not sure where the talks were going to go? And I think You know the next coming days until Friday would really be a telltale signs of what might happen. Olivia. Thank you. That's Olivia Rockman at Bloomberg.
The Obviously-Going-To-Die Stocks
"We're going to start with the stock of the day. Don't call it a comeback bed bath and beyond has been here for years. It's just all that time someone else was running the company but now that Mark Trittin has been in the Corner Office for about a year. We're seeing days like today second quarter profits came in exponentially higher than expected. Same store sales were positive for the first time in four years. The stock is up more than thirty percent this morning. I'm assuming at least part of what we're seeing with the stock is some shortsellers saying that's it. I. Think. I'm. Probably. Bed, bath, and congratulations to march written and Beth by best buy bed bath and beyond. For this quarter, March, written formerly of target, of course, and a few other places before that, I think Nordstrom's and I believe. He had a stint at Nike to could be misquoting. This bed bath and beyond is in a group of companies retailers that I like to call the obvious obviously going to die crowd. And the funny thing about companies that are obviously going to die when they get the right mix of management decision making and in some help from the environment and you know just a little bit of because no one's more aware of a company's struggles at least no one should be more aware of a company struggles then the people inside the company. And that's when you plan your strategy. What are our tools? How can we navigate our way through whatever we found ourselves in business is not easy and certainly for this group retailers that I'm Gonna I'm GONNA hold up. Bed Bath and beyond as one Chris. But you know how about Game Stop Game Stop. The seller of video game systems and Software that of course is going to be the next blockbuster. Right if they writing that headline since two thousand and nine, how `Bout Michael's the craft store everybody knows I. Y has an Amazon run over. And the granddaddy of all of these. Companies that are obviously going to fail. They're obviously going to be taken bricks and mortar is dead is best buy which just before the podcast we were talking about how? How many listeners? Realize, that best buy has been at ten bagger over the past decade they went through some struggles they brought in new management. WHO had a plan? and. I'm sure they were mocked and I'm sure people were skeptical and they executed on that plan and best buy, which was a sub twelve dollar stock in. Two Thousand Ten two thousand eleven is today roughly one hundred twenty dollars stock. And so when you see. I'm a kick myself a little bit on dust by iron best buy bed bath and beyond his too many bees. Bed Bath and beyond. I actually did a little bit of work about a year ago as I was discussing with one of our with one of our foolish coworkers. About this basket of Taylor's who are sure to die. And we had this one. We had game stop we have Michael on the docket and I went through you know what this company's history of cash flow was and what they've done with it and how they've raise capital, and this is before Mr Trenton came on but I. It laid the groundwork for someone with. A better vision to come in and knocked the ball out of the park which you've seen today and and best bed bath, and beyond is as we speak it's now a six th bagger since March of this year and so in the a roughly a year ago when I did my work because I was vigorously debating co I pointed out that in the previous six years here was bed bath and beyond had produced four point two, billion dollars in free cash flow. They had also issued one point five billion dollars in debt and debated smart about the debt because the debts. Basically staggered I think is a ten twenty and thirty years. and. They have to pay it back anytime soon, and they had gone on a massive buyback program. They've they've retired a ton of their shares. Now. Slowly melting ice cube no one's going to want to own this business what have you. But at the time the stock was about ten eleven dollars the company is training but four times enterprise value of free cash flow. that. That is rock bottom fools that is something that is going to go away. That's what the market is telling you. Flash, forward, to today and oh positive cops. Oh. We have a plant. They've they've suspended their dividend they've they've halted their. They've halted their. They suspended the dividend halted their share buyback plan I believe in. April. But with this. With this. report, they have generated a ton of cash flow. They've deployed it smartly they took down some temporary which they had out as part of the PARCO vid. They have bought back twenty percent of that long dated not in any danger to come calling debt they bought that back at a discount. Which is brilliant. They. So they're down to their down net debt down by about thirty percent from where they started the year. They have a store optimization program, which is something that a lot of these retailers the slowly melting ice cube crowd will call them. They are reducing their store count 'cause they don't need it because they can move to ECOMMERCE, which they've done a little bit they can move to. The geography is able he served by less stores and you see a lot of. Traffic that previously went through one store transitions to another and. They are steal a Ron grosses them here they are firing on all cylinders and I'm not sure. Anyone. Thought is coming. I am I am both thrilled that they are doing this they're having success because everyone loves a comeback. I'm less thrilled that you own it and I don't. But. That's mainly because I had this in my hand a year ago Chris and I'm holding it up. The skull of York. And and I'm looking at it and I didn't at least put a little field position because as I said, at the time training for four times free cash flow that is close to no-brainer territory for me. So two other quick data points before we go to our next story. Not. Surprisingly digital sales of big driver this quarter. That goes hand in hand with the store closures so Another smart move by Trittin and his team. And also Happy to see that they're you know suspending the dividend that they're. Suspending the sticking with the we're not going to buy back shares. I'm also happy to see they're not offering guidance. Their New Orleans. No need to at this point. Let's move on the third quarter sales, for Pepsi, grew five percent and. Kind of like we saw three months ago snacks and some of the beverages particularly the Seltzer. Part of their portfolio helping to make up for the fact that somebody restaurants are closed. So many sports and entertainment venues are closed and. That's that's the stock is basically flat and this kind of flat for all of twenty twenty but. Nice to see that the the salty snack part of the business is making up for the sort of the tried and true Pepsi part of the business. Gilead household particularly the soon to be sixteen year. Old Member of the Gillies household has been doing his part to. To to help with the salty snacks portion and shareholders. Thank him. Yeah I was GONNA? Say. You know dude. There are other food groups other than Doritos. Look it was a perfectly acceptable boring quarter from a perfectly acceptable boring company and and I think you know Chris but maybe some of the listeners not know. For, me to call a company perfectly boring from for me. That's a compliment because I like businesses that are boring. Not Terribly exciting person myself I enjoy. Investments in companies that just actually do what we expect them to do, and essentially just get it done quarter after quarter. Pepsi is not GonNa. You know if you'RE LOOKING FOR PEPSI TO BE A. Ten bagger. You know anytime soon like the aforementioned by we mentioned earlier. That's not gonNA happen. They are just a steady bedrock performer for your portfolio and we all need a few of those. So we can go after the more exciting things in our portfolio. Yes. So it was it was A. It was a boring it was a boring quarter but boring is nice because boring boring says, oh, we end up four four plus percent on. Organic revenue growth total revenue growth went up five plus percent. EPS Is up ten percent year-over-year just for the quarter. It's still down for year to date, but of course, Mindy Stan why because the previous quarter? Cova. no-one no-one was new what was going on? So we kind forgive that. They are they're pointing towards the full year. They did give guidance their point point to a full year of approximately four percent revenue growth approximately five fifty core earnings. Stocks at about one hundred, forty bucks. So it's not cheap. But it's not terribly expensive, and again, this is one of those widows and orphans stocks. You can buy put it away and we'll see you when you retire. Hugh Johnston, who's the CFO at Pepsi? Granular on CNBC this morning talking about because when you think about all of the food and beverages they have across their portfolio he got granular talking about the new cheetos macaroni and cheese saying you know they're trying to keep up with demand as a fan of both cheetahs and macaroni and cheese I haven't tried it yet but I can see why it's popular. Any. Do they give any color on the? Two. Portals that they were direct to consumer sites that they launched earlier this year snacks dot com and Pantry shop dot com. Sadly, Chris they did not at least in the conference call or the press the presser maybe in the ten Q I haven't read the ten q yet obviously but. Yeah no snacks dot com I can confirm both of those sites are open and accepting offers as of this moment. SNACKS DOT COM and Pantry shop I think is an interesting one because they are. You know you are buying your you're you're buying all of your Pepsi Slash quaker products. Simultaneously in in in the various groups. So if you want your everyday Pantry, you want to get your your oatmeal and your healthy. Your healthy Chia bars and your rice cakes do people still eat rice cakes and if so why? You can get all those delivered at the same time or your snack package your breakfast package You know it's it's interesting to to have it delivered. I I'M NOT A. I I'm one of the three people in North America is still doing own grocery shopping. So I'm probably target here but I know a lot about the people how to use it and I think probably if I let my as I mentioned a sixteen year old note that this thing existed. It might be his only source of nourishment. So yeah, don't don't. On, the first time I went to that website I kind of went crazy to the point where in the box showed up to two days later even my kids were just like. This is a lot of snacks and was like, yeah I may have ordered too many but but I regret nothing. Playboy. Enterprises is returning to the public markets after nearly a decade and because I was are out of fashion, playboy is going to be doing this through a speck. Mountain Crest acquisition is a current special purpose acquisition company that is going to be taking playboy public through a reverse merger and wants to deal is done that company where the ticker is MC. ABC? Is. The playboy name and the ticker symbol P L B Y? I guess I, I saw this story and I thought, okay I'd that's one way for playboy, which is a private company and has been since twenty eleven. I. Guess That's one way to raise money. I, I, I'm hard pressed though to think that. The second round of playboy being a public company is going to go any better for the company and for investors than it did the first time around. That was my initial take as well, and you say it's one way to raise money I'd say it's one way for insiders to cash out. Tomato Tomato. The more I think about this though. I could be spectacularly wrong and it wouldn't be the first time. This might be quite this might be interesting I can see. I can see a number of thing, and I just find this interesting from a number of re. I as you point out. Yes, playboy. Is private the SPEC the Special Purpose Acquisition Company Mountain Crest Acquisition, company. It's out there. Now it's got. It's a walking wallet got a bunch of cash their stocks over ten dollars specs go at ten bucks. There's nothing you can. You can go buy today Chris if you want. And You can just sit there and wait until the transaction is completed in q one. If. You WANNA own playboy. So, playboy today is not playboy of the past for thing, magazines have died. So, there are no issues of the iconic famous magazine. These no regularly published issues and I believe they went to quarterly publishing versus. Monthly publishing before that. So what playboy is trying to be or this new iteration trying to be a licensing company and they're calling it across four major categories they're saying sexual wellness, which I'm just going to skip to the next one, which is style and apparel which is. Apparel. and accessories for men and women globally gaming and lifestyle also digital gaming hospitality and spirits. So you can get yourself some playboy-branded Bourbon. And beauty and grooming, which is fragrance skin care grooming cosmetics for men and women. Okay. That sounds interesting. They're not a publishing company more avoiding that and I guess they have a bunch of online stuff as well which. Tell people they can go look on their spare time but. They are calling themselves a streamlined high growth business. The company has four hundred million in cash flow contract through the next eighteen years. and has products available for sale and in ten thousand major retail stores. In the US, this is a brandon company. Now, now, what you think of the brand and what you associate with the brand, the iconic a bunny ears brand, of course. Is Is. is going to be probably a nuanced and varied. I can understand why some people. Would not want to do with this brand I completely understand that is not. Bend the most shall we say progressive brand in history? It has fostered some. Attitudes, particularly women that. I think it's fair to say some would find distasteful and I I completely understand why? And for those people, they're just not going to be shareholders and that's that's fine. But what I find interesting about this if this, if the licensing deal and we have, we've already had a certain dry run of this in. Do you know the magazine Maxim? It was. So it's a men's lifestyle magazine, girly pictures, and whatever it was bought by an entity called big holdings. I'm going to say eight nine years ago. With the goal of they went into change it from the the lad magazine into more of a lifestyle brand licensing deal what playboys doing. Now. I mentioned earlier it's important to have You know leaders businesses, you respect and trust big lorry holdings is not one of those businesses but I do know that they even though they're circulation sales are down significantly there they have turned that profitable on a small scale with the licensing strategy. I suspect the playboy will do a better job. And It will depend on the valuation coming out but you know when analogy I might throw up as. As a comparison is. Franchising businesses in the in the restaurant space. So a restaurant brands international, which owns importance and Burger King. Dunkin brands, which of course owns your beloved Dunkin donuts. Those are those are check cashing businesses, they they sell the franchise to a Franchisee. And then take tax six percent of their gross sales and royalties every month plus x percent for advertising they sell you a system and so those are very asset light cash-rich capital Genita- businesses. And part of me wonders here it's obviously not the same as selling. Coffee and whatever. But part of me wonders if that is what this business will look like, and if they are truly in the growth business and the cash generation business, this might be an interesting opportunity. And you just hit on what I think is the most interesting thing to watch. Once it becomes a public entity again, the high growth aspect of this because now we're going to see Now, we're GONNA see through quarterly reports. Okay. Are you growing? Because that's one of those things where we investors and the market in general get to decide what we consider to be high growth And I again I had I had your initial take which was. Oh please. Like if it didn't work the first time. It's going to work less well this time. The more I read about like. I'M GONNA keep an eye on this. Curiosity. Jim Gillies always talking to you. Thanks for being here.
When in Doubt Prospect
"What to do go out and Prospect two of the greatest quotes from one of the greatest leaders, when you think about great quotes from great leaders, you might be thinking about FDR JFK MLK or maybe Gandhi and Churchill. I'm sure they all said some good things. But what the heck did they know about selling the farmer's livestock producers and agribusinesses and exactly not very much. That's why I like to reflect back on some of the great leaders and sales people. I had the privilege to be around. They provided some great inspiration this particular quote resonated stuck with me and has served me well for over twenty years and I want to share that with you. It just shows the power of what you might say as a leader and what you might take away from your next sales meeting. Well the 35 or so sales people. Eating for the first time as part of a newly merged business unit. Now this merger and acquisition brought three different business units together. The newly-appointed general manager was giving his an introductory speech on the first day of a three-day monthly sales meeting. Yes, there was a time when we had monthly sales meetings the teams were a Motley Crue some old-school some were cutting edge Tech package and there was a completely separate division that wasn't related to the group that all one of the main reasons for the merger was of course performance sales had stagnated for the old school team gross margin had slipped for the techie group in general. The three separate teams had fallen into a pattern of relying on current customers to provide their results. The struggle was that Kirk customer base was dwindling or the margins were dwindling and some cases both were joined billing. The sled of profitability was pointed down hill and picking up speed to get this units to merge. That's where we were dead. At that September morning as we gathered to hear the new manager give his rah-rah speech my thought at the time was let's get this over with as fast as we can so I can get back out there and sell something. I mean, isn't that what all of us and sales think when sitting in a meeting we don't want to be in well little did I know that this opening speech would bring a one liner to me that has helped me in many times over the years for the office new manager of this Motley Crue. This wasn't his first leadership challenge. He had been through some of the toughest business units in the company and turned them around the primary tool in all of these turnarounds was prospecting in agribusiness sales. We get busy very busy. We serve our customers well and during peak season. It's all we can do to keep our current customers in product which leaves a little time to go out Prospect for new customers the challenges that when we fail to pick back up after the busy season is over and get our prospecting back online. Well, this would all be fine if customers never quit or wage. He didn't retire or they didn't switch to competitors or they didn't die. But that's what all of them do. They do all these things and without a solid prospecting program our territory slowly kind of spiral down a little gradually just drifts away. Well after a short explanation of the most recent p&l the profit-and-loss statement the new manager began his one step process for getting us back on a track off of profitability and that included prospecting he ended his presentation with this one line when in doubt about what to do go out and Prospect now as a new sales person. I had a lot of doubt about my skills about what how I was going to be able to sell. Where do I go in my large territory? Who do I call and how do I plan my time? Well, this quote would often pop back into my mind as I tried to figure out how to spend my time as an egg sales professionals who office out of our homes. It can be a challenging task to figure out where to go each and every day when we fail to plan it out. We'd default by going to current customer. In particular we go to those closest to us or that we like the most so today as you start planning where you're going to go tomorrow next week or next month. Remember when in doubt Prospect month as Paul Harvey used to say and now the rest of the story will in little less than a year after this meeting. We went from being a moderately profitable business unit to being in the top running for business of the year. And am currently we grew sales and our margins and the impact of this growth was that it allowed for more financial resources in our business. This included new facilities upgraded equipment hiring more people in purchasing some other companies these successes required more than just new customers. It took sound financial management actively collecting on our accounts receivables and changing some of the business practices. I did. However, the one thing that was needed was a steady cash flow to finance at all prospecting and selling new accounts were the fuel for that engine of growth will join me
Simple Rules of Personal Finance Part 1 - burst 02
"When you start out in life then. You'RE NOT GONNA run end to the problems of people experienced today. So while I was trying to pondering what this episode is, GonNa be about I came across U2 that were people were talking about how they lost all their money. Course, they never said how they gain all their money, but they were Dr by how they lost their money. And it comes down to they didn't have a financial plan. They had no clue what the do when they came into a large sum of money and they dispend it all they was spending way more than what they should of where they could have been set for life they end up struggling. Because they spent all the they had didn't save any didn't invest anything didn't plan ahead a live for today and and then tomorrow they were struggling. Kind of be the Gesta this what what does financial plan look like? Well financial plan as a comprehensive pitcher of your current finances. Your financial goals and any strategies you set to achieve those goals. Good financial planning should include details about your cash flow. Savings. Debt investments insurance. Anne other elements of your financial life. Well. That's in a nutshell that definition of what a financial plan should be, and you could probably just google what's the financial plan look like and something to that effect will come up. But what does that mean? I we all know you go to work. So you have income. We all know you live somewhere and you got bills to pay. Well, that's your cash flow. Money and money out. So what else do you do? Well, known instead of all one hundred percent of your money going out you have savings. You have payment on that. You have investments, which is once you're saving Sir over certain point, you can then invest money. You have insurance to help. We covered at an early episode, Debt and insurance will help you from A. Catastrophe. Keep you from losing things helps protect you from financial ruin when a event happens. So that that's what a financial plan or personal finances is really all about step one. is to write down what your financial goals are. Have this in writing and have it in front of you.
I'm Having Boundary Issues With My Parents
"Scott is with us. In Atlanta Georgia, Hi Scott what's up man? Hello Dave a doctor Doni Personal Dave. Congratulations Faculty is such a great addition to the lineup. We'll thank you we agree. Brother Scott and your check in the mail rather. All right waiting for that since I'm on. Right, now, so anyway, to my question my wife and I like I said, we're on baby step two. We've got a ways to go currently cash flowing kids through college my parents who are eighty years old never saved for retirement They've I called in last. Ti- last year You help me guys guide through bailing my parents out of a financial prices and then you send them through FPU and set them up with a financial coach they fully completed both and you also sent me boundaries which I read. last month, they called me to tell me not ask me that they needed need to co-sign a loan for them because my mom wants cosmetic surgery, they can't afford. At eighty though. Yeah. I don't even WANNA ask Ya. Yeah I I could make it exciting but it's It has to do with dental work. So I told them I was not going to dismiss the principles I live by to enable their behavior especially after they have sensibly learn the same thing. I did anyway my birthday was August thirtieth it came and went without a caller card. My father now spends time posting passive aggressive stuff on facebook about how children are supposed to treat their parents. Now I know I'm right by co-signing. And I'm not sure from a relationship standpoint what I'm supposed to do here I wouldn't let them starve or be thrown out on the streets but this is a want not a need. we're all angry obviously one of us who's right. But we're at astounding. Hurt, so bad I'm sorry. Ask got hate that for your brother. So. Here's the deal when it comes to what's the right thing to do financially of course, you know that you're right men when it comes to the right thing to do relationship of course, you know you don't need validation but you're right you drew a boundary that was best for you and for your family and you held them to it and I'm proud of you for that and you're getting to see what the other side of a boundary looks like when Someone Ping's off your the walls or the fences or the boundaries you drew and they choose to react immaturely and the hard part. Is You love your parents. You Love Your Mom you love your dad individually and together, and they're choosing to make their own path as adults are able to do, and that hurts in that stinks and you're going to have to grieve that But the reality is there eighty they're allowed to do whatever they want to do and I would suggest you turn off facebook and don't listen to the nonsense and you continue to be mature and you continue to be adult and yes, you send them cards on their birthday because children honor their parents and you make sure they are included when it's appropriate but. You'RE GONNA have to grieve this part of man because I just stinks. I'm sorry. Hey, for the only the only recompense you've got this, there's only one kind of a relationship that requires money to be transferred. It's called prostitution. And so if your relationship is money dependent. You're in that class. You don't have a relationship in other words. Because that's not a relationship that's a transaction agreed. I agree and so. I'm just saying it's the only way you're. You have to get your brain around Oslo. It's chapter two. I believe maybe one even in boundaries. That says you're not crazy. Remember that chapter. You're not crazy you because when you get this paying off the boundary, John described it. What you start to feel is is that you're crazy like you did something wrong I, a- bad son and my being a legalist being too hard core and so forth, and it's like No. Sky You're just asking how to deal with this. Well. Yeah. I, mean nobody wants to pick up the phone at this point. In so here's the deal call men and check in how's everybody doing. You can be the mature grown-up when there and if they choose to respond in immature ways, then then you can begin to develop new boundaries against that. The challenge with boundaries is we feel so good and we finally draw and we forget that boundaries do have consequences and boundaries do have emotional and feeling you know responses and sometimes people don't respond well to our boundaries and it hurts boundaries when someone feels like they're boundaries, me someone feels like they're entitled to something of yours that they're not entitled to. And you tell them that. Almost, always, there's a response of anger but I think we get so excited that we're drawn boundary that we feel good and we do it and it's like. We forget that tim be up against it and say, well, then you're not my son I, don't love you or if I really do cocaine and the living room. Dad Than I just won't let you be my dad if you're going to throw me out for doing that. I'm sorry we don't do cocaine. We're living room or it's going to be your fault that my. Kids are GONNA fill in the right. So people get to respond to that going to respond grandchildren are going to be hungry because of you because of you giving this thirty six year old without job for two and a half years any money you know this kind of thing and so your it's your fault. Somehow it's not your fault man I'm it does hurt when. It does breaks your heart, and so but I agree with John I mean just call them and have a conversation but here's the thing. Don't try to call them and fix it now doesn't fix they can't they're not there's no fixing this they're just going to get over it or not. Yeah I. Always want to encourage people to be mature party respectful party the relational party, but also protect yourself. Don't keep putting yourself in harm's way. For Scott.
Oracle Results Bolstered by Cloud-Computing Growth
"Peleton and Oracle both on the move. After results we got full team coverage. Let's kick things off Josh Lipton. Oracle's quarter Josh. So Melissa I caught up with Kirk turnover at ever corker covers oracle I to his quick taking solid top and bottom line results driven says by licensed revenue beat and lower operating expenses. Key questions on the call queue to guides, which we just got now relate to you all more color about its competitive position in the public cloud market. When is EPS Growth Kirk wants? To translate into cash flow growth. Of course, another big question is Oracle's in Tik toks US operations. Kirk is actually previously written about says, it could make sense of Oracle. Sees that as more of an investment meaning, find a partner and then spin out the business and that scenario he says, oracle would run TIKTOK instead, it really just gains a new Internet customer for. Its cloud business co soffer cats also giving some color here saying our infrastructure businesses are also growing rapidly as revenue from zoom more than doubled from four last year to Q. One and this year I have a high level of confidence. She says that our revenue accelerate as we move on past covid
How To Consistently Reach Your Sales Quota
"What's up? Everybody Needs Kevin Daisy. So we are fairly new at sales as far as the station is concerned having professional. salespeople. We're about, I guess a year and a half into it I. It was Eric and I always sell in the business. then. We had a Glenn who came on about. Not, even a year and a half ago. Now, if our sales professional and we're looking to hire more so we're kind of quickly scale on this up. But we have a very basic system as far as what we're looking for. What the monthly quota is. An and they should be bringing in and it is super basic and as for me, it still works I know we might get more sophisticated as we grow in the teams grow and we have managers and things like that. But right now it's it's super basic. So interesting lay it out for you. and you can see how all this may be different than your model or if you don't have a model because you're disowned for yourself. something you can think about doing. SARS is very. Is. Five thousand dollars a month. In monthly reoccurring revenue. That's the theme here monthly reoccurring revenue five grand every month, not five gram once or twice or ten times, and then Kinda sit back. Five men every month. That's all we care about. We want those results. If you do the math on that, if you're GONNA do five grandmothers salesperson. Times twelve that sixty thousand dollars of monthly reoccurring revenue. So that means a month thirteen. We've collected sixty grand. From the clients that you've brought in as a salesperson here. At Mont Thirteen but take that that book of business. Times another twelve and that seven hundred, twenty, thousand dollars. So a very successful salesperson in their first year should be over half a million at least. And that's what looking at. That's the kind of success we need to grow this business. Now we do have ramp up period. said. You come on with us for as a salesperson which we're hiring right now as recording this for sales. There's a ramp up period so The first few months. Washington. The first four months or not one hundred percent of that. So we actually sort out with about a two week training period. A month is twenty, five percent of five grand, which is twelve fifty. Then he gets to fifty percent seventy percent and then the fourth full month. After a two week. Period you're expected to bring in five thousand in monthly recurring revenue. So right now, this is a very basic system and it works. We don't care about how many phone calls you made. We don't care about how emails you sent. I don't care if you want to network in meetings or not doesn't matter to me. It's. Can You bring in five thousand a month in New York consistently. And again, this reoccurring. So this is contacted. Using on twelve month. So, as predictable cash flow that we can count on for at least next year. So. That's really how we're building up our sales and growing the company. In if I can just hire another person and they can achieve that. Five thousand per month each. Then, we're in really good spot and we're growing very quickly. So. That's what we're trying to do again right now is very basic, but it works for us. We've had other people tell us different things and don't do like do it like this. Do like that. But for us is working out, well, we also pay salespeople a salary plus the commission net. And we do the life for that the life of the account. So. We've got a pretty good system going also the salespeople here they're not account managers. So they can build a book business and then keep building it not managing. There's accounts. Our operations team which according to the episode on that but. Operations seems takes over that relationship and the responsibility. So the salesperson continued yourself. Now, they can touch base and and reach out of the client of course, but it's not really the responsibility so. They Cabal. You know what you're tracking with sales was important for us the results, how much can you bring in per month and for us the minimum is five grand per month. And that's going to set us up for success. We were
Tesla's $5 billion share offering to be priced 'at the market'
"Today we are talking about Tesla's possible equity distribution of people have been calling the capital risk today and it may very well be, but we'll go into the details on that. Also, the implications that that may have four, S&P five hundred inclusion, and just a quick update on how that looks after the stock split, and then we have a been a news on model y out of Shanghai as well. So Tesla stock on the. News today was down four point, seven percent to four hundred and seventy, five dollars, five cents but a pretty steep drop from the after hours trading yesterday in the pre market trading today where tussle actually peaked around five hundred and forty dollars per share still though even with that drop today. TUSLA still up post split remember the split happened around four hundred and forty two dollars per share. I've gotten a lot of questions on why it would drop. Today I never know you know you can't you can't know for sure but it did drop on the news of the potential capillaries, which will obviously go into more detail on here. But many brokerages have seemed to have some issues with handling the stock split, which has made in some cases trading unavailable for some people. So there may have been a decent amount of shares locked up yesterday seems like a significant amount of that has been freed up. Today so many of those people in those circumstances may have decided to take some profit off the table after the run that we've seen the last couple of weeks, there's been some theorizing around the Internet that may be some of those brokerage issues were caused by naked short selling, which essentially means your selling a share short that you have not actually borrowed from anyone. You're just sort of creating your little share to sell to someone with the expectation. Being that if you would need to actually deliver that share at some point, you could go and borrow one. But the theory is that the split caused some problems for people in that position because of the need to deliver the four extra shares which has then resulted in some of the scrambling that has caused some of the share lockup for this period. Personally I am relatively skeptical of that theory the only reason that I really bring it up. Is because number one I've heard people having issues with their brokerages the last couple of days and number two to provide an example of things that may not necessarily be known. That could also influence the stock price rather than just the news of the equity distribution today are getting into the possible capital raise. Then I'm sure by now most people have heard that this morning tell disclose in a filing that they have entered into an agreement that will. Allow them to raise up to five billion dollars in cash through a follow on offering of Tesla stock. So that means Tesla can sell share of the market they keep the money for those shares and use that for their business purposes those shares if and when they are sold our newly issued shares. So that ends up increasing the outstanding share count deluding existing shareholders but for the exchange of the new cash coming into the business which can increase. The value of the company. Now in this case was particularly interesting is that normally when capital raises happen, follow on offerings happen there is a fixed price fixed number of shares. So company is going to say, okay, we're going to sell twenty million shares for one hundred dollars a share and raise two billion. That is not what Tesla is doing here. So this is an equity distribution agreement also known as an at the market follow on offering which means. That Tesla as the issue or can work with the banks that are helping facilitate the transaction ten for banks to decide based on the price that day if dessel wants to sell any of this offering all tesla spells this out very clearly in the filing saying quote, we will designate the maximum amount of common stock to be sold through the sales agents on a daily basis or otherwise as we sales agents agree and the minimum price per share. At which such common stock may be sold and quote. So Tesla could end up raising zero dollars from this. If they don't like the price that they're getting from the market that could also raise five billion or any amount in between and they to make this decision on daily basis or even more frequently as they say, they are if they agree to that with the banks facilitating this offering, Tesla just set the minimum price that they'll take and. If it doesn't hit it. Well, that's fine. Tesla doesn't need to raise capital them. Tussle highlights this point in the use of proceeds section. In the filing saying quote, we may issue and sell shares of common stock having aggregate sales proceeds up to five billion dollars from time to time because there is no minimum offering amount required as a condition to close this, offering the actual total public offering amount commissions and proceeds to us if any are not. To terminable at this time and quote as far as what Tesla would actually use any capital wrist four, they say quote, we currently intend to use the net proceeds from the offering to further strengthen our balance sheet as well as for general corporate purposes and quote. So personally I am thrilled with this Tesla now has the ability at any given point in time any single day to raise up to five billion dollars if the stock price surges in any. Particular Day for whatever reason Tesla can offer some shares opportunistically raise some money maybe they decide they wanNA raise a billion or two billion. They have that flexibility. The only real disadvantage of this kind of structure that you're not getting that fixed price you leave yourself vulnerable to a falling share price. So if you actually need the capital, sometimes those fixed prices can be better because you're assuring that you will get that capital, but if you don't need. It and you're just trying to raise opportunistically than this is a perfect structure. My point of view has mostly been that tussle doesn't really need to raise capital. They've got a lot of cash on hand and I think free cash flow is about to start to really ramp up is next few quarters. So even with the market cap being what it has been, I've basically been of the mind that if dessel feels like they need to raise the. Capital all support it, but it doesn't look to me like they need to. So I'm just as happy if they don't and this seems like a perfect middle ground, I liked the amount as well. Obviously could be anywhere between zero and five billion dollars. But even if it is maxed out at five billion and even if it's roughly around the share prices that were at today, let's say five hundred dollars a share. That's ten million new shares Tesla. After the split has about nine hundred and thirty one shares total outstanding. So that's about one percent dilution only that you're looking at to raise possibly five billion dollars even if you don't think Tesla needs capital Beth such small delusion having cash on hand as Tesla said, would improve the balance sheet that can go a long way in improving their credit ratings that can allow them to access cheaper debt there can be a lot of benefits of that cash. I wouldn't advocate for it, but they could use that to pay down some of their outstanding debt, cut those quarterly interest payments that we talked about last week, which would lead to tesla retaining more of their cash better profitability whether they just let that flow through all the way to the bottom line or reinvested elsewhere in the business.
5 Often Overlooked Business Mistakes
"Guest today is Patricia stalwart. Patricia. Otherwise known as the prophets teaches business owners, how to get back to basics. Plans to make the money they had in mind when they first started their business. She says that four out of five businesses will fail and the majority of the failures won't be related to money issues. Patricia is the CEO of PS worth the author of the Prophet, Handbook and the host of the so boss three sixty podcasts. Thanks so much for joining me today Patricia. Having me. I am thrilled to have you here. We are going to be exploring the five costly mistakes that business owners make. That are so costly that they can not only at cost the money, but could potentially cost them their business as well. And when I read your bio I, read the US say the four out of five businesses will fail I. think that is a staggering statistic. But that's not really the end of the story. Is it? No I it it's. It's really not the end of the story. The other statistic that sort of buried inside of that is that. Over the past few years. sixty, six percent of businesses either did not make a profit or just broke even. Wow yeah, that's staggering when you is the only a third of the people in business actually made money. On my goodness. Okay how do you survive? So so yeah, those going out of business. That's the end of the story. The story continues on for those. Who Survive in a sense you know. Yeah. Yeah. But not well, and not for very long I mean my gosh how long can? You go I guess you could go for a while breaking even, but then you have no money to invest in your business no money to invest no return on your investment. Remember Your Business is really an investment in an. And if you're just breaking even you're not making any kind of return on your investment. Wow. No kidding. Yeah. Oh my goodness L.. Well. having said that let's jump into these mistakes. So what is the number? One mistake? You see business owners make? Well, it's kind of hard. They're all almost. It's hard to know where to start but I'm just gonNA start with with the first one I thought of and that's Just not understanding where you are related to your goals that is not understanding what's coming in what's going out and where it's going. And what's leftover? We might have an idea of what's coming in. And I have a lot of I mean I talked to a lot of business owners who tell me you know that gut? They know what's going out you know and they know where they stand, they know what's leftover. But when they look at the reality of it, their gut is generally off a little bit. You know. They don't really have much left over as they think they have leftover because they forgotten about all those little expenses that keeps creeping up. And they don't take those things into account. So it is really That's that'll get you right away. If you don't know where you stand at all times not having you know they talk about cash is king and I say cash flow as Queen and if you don't have a King or Queen then. Then you're really sunk your. Yeah. Right. Your Kingdom is falling down absolutely how And so wow, I mean that's that's just I gotta think that then they are just amazed. When they actually seeing what the numbers really are. Yeah, and the here's the issue. Most of them don't want to look at the numbers. I mean nothing like I've talked I've talked to, in fact I to a woman today was a business owner and she said. I can't under I I. Don't see why understanding my numbers would help me Oh my gosh. Yeah. It's like, oh Okay. I have this other philosophy and this philosophy is my job is not to convince you. Or my job is to inform you and if you don't want to take that information, then I'm okay with that. Because, as I always say once I've told you something, you cannot even hear it. So if you don't make your numbers are that important to you find I have no issue with that I have told you and that's the. Wrong. Oh, my goodness. I have so many questions. Okay. Because I mean. I would think that someone would like that would become really really important when some expense out of the blue popped up. And they couldn't cover. Well you know here's the thing. They've done studies and they've they've shown that in in terms of personal finances the average person could not cover a four hundred dollar. You know expense without going into debt using credit card or something like that. The same thing happens to business owners unfortunately there in the same boat because generally the way you manage your personal finances is the same way you manage your business finances and vice versa. So most business owners are right there on the cusp all the time you know anything could just knock them off of that in point
Rob Maurer Of Tesla Daily And David Trainer Of New Constructs
"Everybody, Rob Power here. Today we have the good fortune to be joined by David trainer of New Constructs David. Put out a note last week with his team on Tesla that was relatively bearish. So I thought it would be a good opportunity to have somebody on the podcast. Maybe give a different perspective than what is sort give day to day and hopefully. We can both learn a little bit throughout the course of the conversation So David a former analyst with credit. Suisse. And then for the last couple decades, he is the founder and CEO of new contracts on investment research firm so David Nathan, you want to add to that in terms of your workings INS specifically this note on Tesla. Yes sure. No. We we're an independent research firm. So we don't doing any investment banking or trading There was a time when I ran a hedge fund will be don't do that anymore. So there's there's no short position in Tesla and honestly there's there's no axe to grind here. I'm flattered to to you on the show and I'm also a big fan of cars and I think beautiful. And I think would Elon Musk has been. Has Been Great for our world. I. Think he was really a tipping point in enforcing the big autos to to move more toward electric vehicles. What let's face it. You know one has to question why they never really wanted to do it on their own how they needed external government pressure to to increase gasoline efficiency. When that at the end of the day, we just lowered the cost of ownership for their product, which is a good thing but yet they didn't do it want us to wonder why that is. So I think he lawn. With respect to Tesla Electric Vehicles and our environment has done the world huge service. Insides one lead that fan I think the cars are beautiful. I wish I had one of my kids always rave about how much how awesome they are when they ride in one of their friends parents Tesla's it's funny in in. So I think there's a lot of good that has come out of what you musk is done at this space as well as other spaces. And the beautiful green cards. So you guys are kind of approaching it from a just an overvalued perspective on the company right now. Yeah. It's it's really kind of an old school throwback to the fiduciary in investor as opposed to the speculator the trader. Look there's no doubt you know as Jim, Cramer said he he's a fan test left for the last eighteen hundred points right? I mean look the momentum. The trading aspect here's Banal and it's been a huge wealth creator. An Art perspective is very narrowly focused on the fiduciary and decide the of risk. In, a market that's been such a strong performer. Since the The deer in in March you know, I think some people we got some feedback that people were kind of looking at how to manage whether or not we're at the top or or not in this market and we thought you know look. The first thing you do is identify where there's the most risk in your portfolio. So we kind of went through we cover around three thousand stocks as well as ETF's mutual funds and we looked for like, okay where's this? Where's the where's the risk extreme and then you know especially with Tesla, you gotta take into account all these sort of the optionality, all these great things that that Tesla might do. To, justify the future cashflows embedded in the stock price. And we went through the checklist and we thought, okay, we think there's a fair case to be made here for those with fiduciary responsibilities and produce responsibilities. To Take into account. Or. Consider. The risk in the stock relative to fundamentals. Sure. I know that that's a big part of your note later on. So definitely get through to some the valuation stuff So I thought probably the best way to kind of just kind of structure. This was to go point by point. I've had a lot of listeners that have read your note and have sort of asked me to give my my thoughts on it. So I thought you know what better way to do that than have the man himself here to discuss with me so Sweet. So you've got a lot of I mean this is probably a few thousand word article here. So let's just start right at the top. So you start off by saying. Really comparing the devaluation of tesla per car sold versus other automakers. I wanted to just sort of get your thoughts on this because I think you know this perspective or this this particular metric in isolation to me isn't all that particularly meaningful us are wanted to you just sort of get your take on why Joseph Start off with this and then get sort of my thoughts as well. Yeah, we're just sort of a level center to get a sense of how rich the expectations are and in just to give some perspective our approach valuation is is as I say, tomato analysts. Would you rather be a fortune teller or critic before to tell her and we see Mr Market or the stock market is a fortune teller. Here, she is giving us a price every day, and what we do new constructs is reverse engineer what the future cash flows, the revenue, the margins, the capital efficiency, the business, all that we reverse engineer with those need to be to justify the price and so. What we like to do is kind of begin be objective perspective on evaluation is and that's what we see in this chart like there's a big disconnect. It's not to say that Tesla can't achieve these expectations but for right now, there's a lot of credit given to what the company will do in
More enhancements for Google Podcasts
"Has more visibility for podcasts from. Google today. Google podcasts now in the APP switcher that's on every Google website and it's more improvements for Google podcasts for Web as well. According to nine to five Google however android. Final Beato, which will be the next version of android still does not have google podcasts as a default APP although Google play music has been removed Apple iphones have apple podcasts, preinstalled, of course. Competing APP for Google. KOSPI'S PODCAST addict. An update has been rejected by the Google play store because quote of a policy violation no details of actually been given of what the policy. Violation. Is the APP has been removed multiple times by Google in the past if you'd like to help them this time willing to all eighteen thousand, one, hundred, twelve words of the developer program policy in our show notes and our newsletter today. Says launch audio go a self serve ad buying service to connect small advertisers with launch audio publishers. The IRA have announced their final sheduled Abe podcast upfront southern Cross stereos podcast one Australia grew its revenue in the year ending June, the thirtieth by ninety six percent. The division is now cash flow positive according to the company. It's brought in three point three million US dollars last year that's less than one percent of total revenues for the broadcaster however, and they fell by eighteen point two percent. The BBC launching a new topical comedy podcasts Comedians versus the news it'll be hosted by to New York comedians the show which will also be carried on BBC World Service radio at the end of August and you serve is Cam flair has been launched calling itself. The easiest way to record and receive video uses a web browser and wed camp to get anyone to record video and audio for you can extra dropbox as well and it's free. This year echo verse has been launched. It's a next generation content studio makes. PODCASTS, it creates premium Sifi supernatural and fantasy audio dramas in India podcast producer sooner India has received funding from tully would movie producer shou-po, Gada, and podcast movement virtual has unveiled the platform they'll be using for their event in October and Paul Cost. News hospitality forward is in new podcast talking to journalists to discover how they generate story ideas and how hospitality and travel experts can get on their radar by sharing their own newsworthy stories in a compelling way,
"cash flow" Discussed on The Dentalpreneur Podcast with Dr. Mark Costes
"Purchasers of securities during the worst times in the history great depression all the different crises in crashes in the market the people who were at the top of the food chain people who were the richest people made all purchasing decisions during this time. And I feel this this. The setback is not going to change history again. I think people with with with a lot of money With with with who have been wanting to come in In Warren Buffett says right he he he loves to buy companies when there is a forced sale and I think emanate activity will will increase not right now but in another two to two to four weeks where people will come in to find good deals in this business and I think it might it might. I hope not In in terms of I think if you want to be an independent practice you should absolutely be and there is no doubt I. I'm hoping that all independent practice is going to help the can but unfortunately some practices will make the decision to sell and it might accelerate the peace of the consolidation wave. Had the at the end of this only because there will be a lot of practices that will not be able to make it. It would not have. They would not all PHI for loans. And if they don't do that there might be some some consolidation going on for sure so I think there's both sides there's product where the money is going to dry up a little bit for for people who already in it but I think there's new players will come in will want to see this as an opportunity to to buy Vitamin dislike. What happened in two thousand nine real estate Was You could you could go to the banks and by the floor closures. There's GonNa be some people that might enter the market with some new money because they know that. Oh my God we could be able to buy this at a better price. So whether it's good for the industry or bad I'm not sure yet but but I think will see both things happen. Thanks for the insight on that so you and I are about the same age. I think we have kids about the same age so you have been in business long enough to have experienced one significant recession. She doesn't seven two thousand eight As I have it's funny I think that a lot of people that are listening to our voices right now. A skew on the younger end because people that The typical podcast listener Is a little bit. More tech savvy a little bit younger than than us. Maybe even Right so many people out there listening to our voices right now have never been through a recession and it's interesting to to to to to look back and say hey you have to have been in practice for longer than eleven years to have experienced any kind of of of market correction or a bear market which we are smack in the middle of right now and it doesn't look like it's going to be correcting anytime soon. regardless of the Optimism of you know the talking heads on CNBC etc What do you think is going to be the impact of our ability as regular people to borrow money from banks because we do remember In two thousand nine two thousand ten. It was very very difficult to qualify for a loan. It was almost an over reaction to how easy it was prior to that during During the lead up to the global financial crisis so do you think it's going to be very difficult even though the interest rates are really low if nobody can get their hands on that money it's going to be really hard to To to take advantage of those low interest rates and I think I think the banks. It's a great question because the banks are taking awake. Watch approached this time That is why I said. Nope borrow money when you don't need it because when you need it may not have it So if you have a line of credit right now for a hundred thousand dollars that's already you've not drawn upon it. I would draw on it right now. because we don't know we just don't know in it. The money could dry up at depending. On how law distinct lasts If it if it's under control in the flattening of the carbon happen sooner than later what banks may not make me choice but I think all the credit committee that banks are talking about this right now. What do we do especially with businesses? That have severe impairment of their revenue. Where you're kind of blowing blowing the covenants. Basically you're not. You're not even meeting the ability to do that service so so I think dental practice is today. They need to look at their debt. That's available to them if possible And you may not need the money today but you might need the money tomorrow and Before things again you've got to expect the worst and plan for the worst and expect the best weather And in in you got a plan for that so so yes. I think there is a chance that it could dry up just in although the Federal Reserve has done a lot of stuff to make liquidity available to banks. But this because that's available doesn't mean the banks GonNa make an irrational decision to lend money on to a practice. That's bleeding a lot of cash right so so so you've got to worry about that. I understand you've got to keep your team members. That's why it's important to make the right decision about your payroll at this point The good news is I think if this legislation passes which again hopefully sooner than later The the unemployment benefits are going to be pretty decent for most people there that six hundred dollars extra on top with the with the regular benefit is and some people might make fifty thousand dollars up on annualized basis Would with unemployment. So so I think you've got to really have a heart to heart saying what can I do to survive in the least amount of money because of the ban comes in and says what is your plan? You want to be able to say ears. I've cut down my expenses inaugurating much but if the line of credit dries up you won't have enough money to last at least for the next ninety to one hundred twenty days interesting times right. It's funny because I just got off a consultation call with with a member of ours. Who is who is in contract to sell a practice and in contract to purchase a practice right now like right now probably the worst possible time. Ever because the way that they valued the practice to sell was at the peak of the market and the way they valued the practice that they're purchasing was at the peak of the market. So everything is going to be upside down here for a little bit. They're asking me should. We proceed with with the purchase and I said well first of all you have to see if the buyer of your practice is still going to be interested in buying the practice at at what evaluated at two weeks ago And you had to see if you think it's worth it to buy the practice that you have an l. a. y. on right now at the valuation that you agreed to pay for it because I mean right now. Nothing is worth anything when we're not producing any dentistry so we have to wait and see how long you know we're not going to be able produce. We have to wait and see what the climate is for the banks as far as whether or not they're going to be lending the money under the same conditions and under the same guidelines and then we have to wait and see if the valuations are fair after the market corrects itself. It's very very very interesting. Time a lot of uncertainty and I my my advice to them was was just kind of wait for the dust to settle reassess in a couple months and see if you're still if you still have the will to buy that practice and if the if the the buyer is still still has the well to buy your practice you know yeah. I completely agree with it and you know I think the psychology is so important. One of the things I've been telling people and show you are discussing this on your podcast to is is. I think it's it's really important for us to take care of ourselves. I Our mind our families our team members. Because we've got a rise up today and to to that leadership position where we are being the COM- In the midst of the storm You know human psychology is like we always over-exaggerate book emotions. If things are bad. We think they're really bad. And when things are good with they're really good and and there's gotta be some sort of a Ah For us to say that in a wet as bad as it seems today It's not going to be bad forever. And as an we're going to keep working on things that we can control versus thinks we cannot And I think I think a lot of there's going to be leaders. Who are going to be judged on on how Swirl in industry leaders their practices. They're GONNA be judged on how you acted and reacted during this crisis. Time in in in so so it's it's super important to make the right decisions because you've you built a great practice. It's going to be back. It's just a matter of time in so you WanNa make sure that you you kind of give that sense of calm to your to your team and be there for them. Be there for your family. Obviously be there for yourself protect yourself. I think that's the only message that I feel is not. I'm doing that myself. It's very hard. It is hard. It went when when you have a fires burning nonstop. I get called every single. Half an hour from practice or group practice that That is shutting down. Only seeing this and they're in crisis mode and it's difficult because your cellphone crisis note. You're helping people who are in crisis mode and and it wears you down mentally. Oh Man. Isn't that so true. Like just two weeks ago. Things were relatively normal but when other people are having to go to a skeleton crew in work fewer hours you and I have been our hours have quadrupled and even though we're just talking on the phone a lot of times or having virtual console console talking on Zoom webinars. Something it's exhausting. I don't think there's anything more exhausting than not. It's it's they. Call it compassion fatigue. Because you're so concerned about so many people about so many things like you said there's there's there's fires burning all around you and you get to the end of the day and you just feel like you can barely walk out of the office. It's crazy absolutely absolutely right. But but we're gonNA continue doing this you and I both And as as new information comes about a I'm going to try to reach out and seek out anybody who can help. Our clients are dental. Folks are her. Hygienists are assisted anybody who can help anybody. We're GONNA go talk to them in. We're going to push it out there as fast as we can My my marketing team. I gotta give them bets Bibi Marketing in the tied teams. Are The dog refer. They're so focused. Working Fifteen hour days to produce this content that really doesn't add new revenue to us but we feel we have an obligation to our industry that supported us in loved us so much and we will continue doing that until this crisis over. Well I can't thank you enough for being on the podcast today. A mall and for doing what you're doing for our profession. I've always respected your lot for your entrepreneurial spirit and the way that you care for your.
"cash flow" Discussed on Before the Millions
"The money doesn't mean as much you know i i wouldn't do it for the same amount of money if it was difficult on me i'm doing it because i really enjoy during at at a money's just a really cool cool segment that i get a selves the i couldn't have designed any situation better not us with your arms just enamored with where we are at power how things are progressing suspect into the money which are outlook on what i mean what money means to you likes are as far as what was more important to you if its cash flow or if its net worth because on this all we like our cash flow because that leads to be oats mo lifestyle design the you want one inau from your perspective where your outlook is well i think cashless definitely important i think it depends on which situation urine and i think cashflow early on yes is definitely very important capital allows it allows for freedom freedom is let we need we don't we are what what the average person what we interpret is being freedom versus security right security we may talk about that but ultimately i think everybody really mean freedom to do what they want to do is less a security of thinks a cash flows definitely going to provide that it allows you to take your make your decisions but at some point capsules great then we we talk about how do we reinvest that castle high we keep that cash though stream invested to the point where it's still gonna bringing returns and that's where you look at your downside and say they've made a lot of money now it's really time to keep it right you can invest in a lot of really great cash ling entities that are their selfless short limited what are we going to do with it when it gets to that five you're process of we planned for the next you know the next type a transaction and that's where networth comes in because you can have a great cash ling entity in a very little networks hottie sustain that though he hopefully reinvest that cash flow to improve your net worth to be able to do those other things to again at the end of the day evac ashley judd so i love cash flow i mean that's where i do and i think net worth is just a it's a sideeffect of had a great cashflow relate.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"I i say when especially when the market is where it is my chances of competing with professional real estate investors is slim to non real estate is never going to be my fulltime business real estate is my investment vehicle if where i want longterm wealth in cash flow so it's my job to vet the people that i'm investing in and to court those relationships and in to invest in the professionals that i feel comfortable with and enjoy the cash flow in the upside that i might get from a syndication or investing in a fun near and that allows me to be an investor without making it my business and that frees up me to just focus on making my money in my business your real estate professional mean your business is real estate so i wrong or you just bias because your real estate professional well no i mean you know i think part of the issue is the you didn't say this but i'm going to guess that you meant it to some extent in that is that you know when you say you're never going to compete with these people is that it's like you're competing for the best deals i think that's what you might be saying night which is kind of like in the stock market i mean certainly you can't compete with on announce a giant industry of really really expert people you know the quads the high frequency traders the you know all the insiders i mean that that interest rates impossible to compete and that's why i hate stocks generally but you're trying to invest with if that's the if that's kind of thinking you're trying to invest i getting the deal that nobody else can get an ice age just get a good deal or the property makes sense the day you buy it in don't don't expect to sell it you don't need to sell things that produce a good yield just be a yield investor versus a capital gains investor on the capital gains side you know you could do some speculative stuff like you said take ten percent of your money put it in bitcoin hate.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"Tax benefits are actually accelerated because because we have things like roads and fences and lightings you can actually depreciate those at a faster rate than a traditional building that would you take your 27th you would you would depreciated over a longer timeframe when you're depreciating a road for example at the time brains much lower and that was later ultimately sold me on on this type of structure knowing that i could be a passive receiver of cash flow but on my tax returns show that i am actively depreciating costs threat is yep that is that his heaven for for someone lyonais that's one nice things about using structures like limited liability companies not to get to tech knew about with llcs they're basically pass through entities and so all everything all the prophet losses depreciation pass through that entity is almost disappears in that ends up in the personal tax returns of wherever the owner is through what's called a k one but that's ultimately how it gets reflected so i believe the fast sign of financial freedom is to build a business invest the profits into other forms of cash flow and in in my experience by making that money in putting in a place i'm going to get a predictable return freeze me up to grow the business even more and then take the cash flow and put it back in two two more areas that a and then it compounds time if you run those numbers over ten years it's almost frightening but it can look like year your business is the real estate peace right right is being involved in this business where are you investing your profits.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"So let's make this super practical and actionable for those of you who are desiring cash flow because what i want entrepreneurs and high achievers to know is that these types of funds exist and can be a part of them of your portfolio in full disclosure these types of funds including baristas fund are a major focus my portfolio in fact i i think i have more allocated for cash flow funds than anything else in my portfolio so this is something i believe and this is something that you look at my balance sheet i have a significant amount of interest in so full disclosure i invest very heavily in these types of funds so i don't think most people think about putting your money with businesses that are funds that out their investors as our primary way of investing because when you think about investing in real estate you think about doing it yourself as well as we'll think about rain orbiting about investing and really any asset class the temptation especially for entrepreneurs to say i'm gonna go out and learn how to do this and so we could on these radicals of though that's a good idea your business looks pretty good i'm going to pursue this o how does it actually look to invest in in one of these funds because obviously you don't take investor cash and payout investors unless you are making a profit right and you yet asset classes only as good as the businesses that are in it because behind every investment is a business yo how does actually look.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"White white departments haberer the singlefamily homes because they can't afford it so you can only charged is as much as eur you know your tenants can afford and they're in the top situations so they can't afford more than whatever their opinion so they haven't gone praise lee up and so they're not going to congrees down and dissolve is gonna be more added it but in addition to that they're not building more mobile home parks ran it there's there's a stigma to it the communities don't wanna have mobile home park in their communities and so you would expect with this demand and i work on explosive demand but certainly an increased demand for mobile home in affordable housing you don't see that corresponding supply of homes that you would expect in a typical you know our economy every investment book that i have ever read has read like a howl to guide on how to invest in certain assets are sources of cash flow yourself and when i work with entrepreneurs they often feel like they have their business and they're going to take their profits and start an entirely new business that invests in real estate or whatever investment that they're excited about noone told me that there were opportunities to just partner with other businesses that specialize in certain sources of cash flow so i could participate in the benefits of that investment without actually having to be active in that business i wish someone had told me that these types of opportunities were available so i asked marie co two talk about how funds were structure how investors partner with these types of businesses and where it might fit into an entrepreneurs and an investor portfolio here's what we discuss.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"Private equity firm that are going in their pension fund that are going on in there that don't necessarily care too much about the returns they care about the return of their capital and so if they end up getting a two three percent return they're happy so you that's kind of the last phase of of a of a bubble or when it's going to go down and so just about educating and then obviously once we find an opportunity we built teams and we we have a uh an entire acquisitions team on on on are on our own grew in our team and that's all they do is they they source deals and once we identified the biassa class owes that's what they do so not my opinion my i don't know if you would share me a professional investor as much as this just are my strategies to invest for cash flow but my opinion based on my experience has been that when the market is high like it is at the time of this recording it's stupid nash unwise but stupid for me to go out and try to be a real estate investor right now because there are other people whose fulltime business is be going out and getting deals before i find him right and when the market is down and all the money is scared that's the time that i want to be an investor so the strategy for me is when times are really good to go trust people who are always on the lookout for those sources of cash flow and give him my money to them rather than try at spend my own money on a business that i am not an expert in when you buy at the bottom any idiot can make money so even idea and make money rent during an economic recession if i buy the bottom ray things are at the top it's stupid for me to do anything else than to partner with the people who are good at this who have people always pounding the payment looking for deals.
"cash flow" Discussed on Freedom Fast Lane with Ryan Daniel Moran
"What's up fastlane irs ryan daniel moran here you might have heard me say in the past but i believe the fast lane to financial freedom is to build a business and invest the profits and also it's not cash that makes you free its cash flow that makes you free and we're gonna be hitting that today with the savage of cashflow rolled in cash flow savage so or here in costa rica at one of our backroom events the backroom is our mastermind we are growing to ten million and beyond a lot of our members get together and sell their businesses sometimes we do rollups because when you partner businesses together you increase their evaluation which allows them to get more money for the exact same business and now we have a different set of problems the different set of problems is when you get all of this kashmir running a successful business or selling your company what do you do in order to create cash flow because what i sold one of my companies what am i fallon ours was like what what are you going to do for flow now and it never occurred big says i want have all this cash in the bank so what does replaced that check it seems like a silly question because it was all this money in the bank but ito as science has taught us that predictable cash flow is what actually makes us feel free to pursue the things that we want i just sexy it up that science but.
"cash flow" Discussed on Bloomberg Radio New York
"Year in addition to paying a two point seven percent dividend bryant do do you is your screening process such that you look for companies that have been increasing dividends or you doing this sort of income statement work to recognize that some costs are going to go down or or or were profits going to grow enough of they'll be able to too great question there we do both we do think that the management philosophy epa complicated task to have to give it in as a priority for excess cash flow we do do a lot of income statement and but more typically cash flow analysis make sure that give it he can be paid by internally generated cash were not interested in companies that have to go out and borrow or issue equity after meet the give it in obligation what about in in terms of sort of a capital expenditures and driven through acquisitions i are i know i've never love the district the classic definition of of of cash flow a free cash flow would be you know capital from operations a minus the of the cost of cap backs but it doesn't use include in the summer chebanene these days the lotta cover i sort of true free cashless could have hidden yeah you raise a great point now ago no excuses here we all cap act has to be included here repurchase have to be included emanate has to be included get pay down have to be include and we want money leftover to pay the dividend again we think that the management philosophy in mindset around the dividend is key that's why we in an interview oliver management let's be clear google could pay a dividend if they chose to facebook could pay a dividend if they chose to but but they frankly have investment that may have higher rates return and they may have decided you know we would prefer to pay a dividend down the road and not immediately so the management team has to not only half the cashcall viable dividend but also power ties to dividend in order for it to happen let's interesting now in terms of screening process how how do you start to identify these companies that that maybe were given its change right a certainly a history of dividend.
"cash flow" Discussed on Outliers
"And after taking your product it has got explains why that is meant now that would not necessarily mean that the length would be generated for the fox all the investors but here's the he's the provisional vegetation than i would always lay people dependable first leave your customers must have a to dimensions of if they're the customer sequenced him had to the cash flow of x after adding your product that should immediately google expressway so you are immediately released solve the customers free cash flow problem therefore to knitting them for them secondstage is if your investors had a creek cash flow of said and you're able to do it plus w then it is a good idea so second status for investors to be able to make the money you are the founder by the way would get to eat last okay so you're being but you get your team should get it before you because your team has believed to do so the wind generation is adverse psyche all for the benefit generation generations you are the ones in in the biggest benefit for their customers then for the investors then firmed life invasive so the where the mission to you if if if you will have become rich at the founder and the ecosystem hasn't benefitted davis investment benefited it's a selfserving said fish business this doesn't sound six this this this assumed business if you wanted to create a sustainable longterm business for which you will be able to write a book wendy.
"cash flow" Discussed on Before the Millions
"To a place where we feel pretty comfortable about and efforts that we use that the monies we spend our productive it it it's a constant cash flow is is king it's absolutely king and there there was that point in time where i i wasn't sure we were going to make it through because a expenses were were greater than the remember there is is one conversation i had with my broker at the elevator like i think i want to go into management i am are loggers lies very could brokers about by brokers services and but if the at the end of the day i realize that back to those you started me out you know where by childhood i mean i was like now i'm really an entrepreneur i'm really not a manager and i am smart i'm resilient i'm a survivor i will thrive through this and i'm gonna figure it out and so it was making that decision but they were there really was a a and a pity moammer as like maybe i should find something another career and and i stood decided to gift expenses in line and then be dairy strategic about any expenses going forward in clearing up bozo the moments through define mus literally like you know you had a decision making you know whether or not you wanted to go back into management and possibly you know sell off your skills or be or or or continue beyond your entrepreneurial journey which you know as a great entrepreneur which you know has many peaks and valleys so i'm glad you circuit through and you were able to see your company through the recession now let's let's transition little bill as fast ford a little bit to the inception the maybe not even this inception europe's transition to the to the building up of your book because i think that i believe that you know there was a there was a a long time gap between you actually.
"cash flow" Discussed on Starting From Nothing - The Foundation Podcast
"And i think you know agency businesses are difficul any day of the week for anybody like i i think they're just by their very nature a challenging business i think some people are very good at running them and they know what they're doing they know how to utilize people get you know billable hours under control scope creep have a good sales process be able to manage their cash flow and collect invoices faster we were shit and all of that stuff we really bad at it we would you know have these long sale we you know projects went over budget all the time we need hiring mistakes so it was we were just really i think bad at running agency business and also we weren't specialized because in two thousand nine you were we could go and say locally hey we're really good web design agency and we could get some clients but then as the wickson square spaces the world came out as every every buddy in their dog became web design agencies it became really tough to stand out without a very strong focused s in a strong knee shor vertical market it or something like that we were just very generalist nice nice of shubra generalist you're doing a little bit of everything you don't necessarily have the systems in place it can make everything tight end in terms of running something like really really tightly us to the prophet can skills and you end up making the same amount of money with ten employees as you are when you're a solo freelancer just working on your own as honorary.
"cash flow" Discussed on Talking About Business
"What is cashflow one of the most important concepts when it comes to your businesses cashflow its most basic definition cash flows the total amount of money being transferred into and out of a business in other words it's the money that keeps flowing through the business to make sure the light stay on and you're getting paid can you see why keeping track of cash flow might be a good idea cash flow as the measurement of money coming in and going out of business the money coming in includes things like clients paying you for your work customers buying your products affiliate commission d received for promoting other people's products advertising revenue residual income for books you've written rent for property you own and rent out interest earned on interestbearing accounts it cetera think of all this money flowing into a bucket on the other side money also comes out of the bucket to cover your expenses and your salary the phone bill you pay every month the virtual assistant you hired the business course you just signed up for the office you're renting the new computer you just ordered all come out of company funds as a business owner it's your responsibility to make sure those expenses are covered your cash flow goal should always be to have some sort of a balance between money coming in and going out you don't wanna continually spend more than you have coming in your bucket would run dry quickly putting you out of business at the same time you don't want a bunch of money just sitting in your company it doesn't do you much good there yes you want a bit of a safety cushion to help you through some lean months but his general rule you one either reinvest your prophet or take it out to pay yourself cash flow is a money management tool for you as well as an indicator of how well your company is doing it also helps you plan what you can spend down the road to expand your business upgrade equipment or give yourself a raise if you're not already keeping track of this vital measurement now's the time to start doing so it's a powerful tool to have in your belts and one of the best ways to make sure your business days viable and profitable for years to come.
"cash flow" Discussed on Talking About Business
"How'd attract cash flow for your business setting up a cashflow statement for your small business may seem like a daunting task in something best left to a professional accountant in reality it's fairly simple to do and there's a big benefit in doing yourself you'll get a much better idea of how you're businesses doing what's actually working and where you may need to tweak things are reinvest if you've ever created a personal budget to keep track of your household income this is going to be very similar think of it as a budget for your business instead of your home you may have a few more entries but the basics work the same open a spreadsheet or grab a notebook and let's get started tracking money coming in start by listing out every single source of income you have it helps to break it down monthbymonth but depending upon your business a weekly or even daily cashflow statement may be appropriate if you're not already tracking monthly income and expenses these statements will also come in handy come bookkeeping and tax time unlike with regular accounting though when it comes to your cashflow statement you're only tracking actual money coming in don't count the bills you sent out to customers our clients until they're actually paid again this is pretty common sense stuff right down everything you do to make money and how much you had coming in any given month tracking money going out next were tracking money going out those would be your business expenses the list can be pretty short if you're working for yourself out of your home or can be quite lengthy if you're dealing with inventory buildings utilities employees and the likes this may seem like a daunting task at first but for many of us quite a few expenses are fixed and occur every single month for example you may pay a monthly fee for your phone and internet service or there may be services are memberships you subscribe to once you get those expenses written down you can copy them over for monthtomonth this will make your cash flow tracking going forward much easier.
"cash flow" Discussed on Talking About Business
"Tracking cash flow to increase profits are you tracking your cash flow if not it may be in your best interest to do so you can find out some interesting things about your business by crunching the numbers more importantly you can analyse the data and find little tweaks you can make here and there to increase profitability if you know what money you can expect to come in over the coming days and weeks you can better plan future expenses by looking at your cash flow statement or even better your cash flow forecasting you can decide if you can go ahead and buy new equipment or hire someone new as you track cashflow over time you'll start to see patterns emerge you may find yourself making more at the beginning of the month and seer profits dwindle down towards the end of the month as bills keep coming in our maybe there's a special promotion you run every may and as a result you see lots of positive cash flow in the early summer months tracking cash flow in recognising these patterns will help you determine how much profit you can expect and when you should reinvest that money to help grow your business and thus future profits after a while you should be able to not only track your cash flow but also forecast what you can expect to be doing in a given weaker month that's good at a half and it will help you make smart decisions in your business like ordering extra inventory are hiring parttime staff during busy periods at the same time it also help you scale down to the bare basics during slow times reeve and give you an opportunity to be proactive and drum up a little extra business tracking where the money is going also helps you avoid hitting financial bottlenecks you don't want to have to hold off on buying products for your business or hiring a copywriter fear latest promotion because you didn't have the money to pay them.
"cash flow" Discussed on Talking About Business
"The difference between flow and prophet one of the biggest misconceptions out there is that large cash flow means big profits for a business that isn't always the case in fact you could have a business with a lot of cash flow the on the verge of shutting down the difference between cash flow and prophet is an important concept to grasp so let's take a closer look cashflow simply tracks how much money you have coming in and going out profit on the other hand tracks what you have leftover after you take the income and then subtract all expenses it sounds very similar to the idea of tracking cashflow but timing is what makes the difference here let's take a look at three different scenarios to get a better idea of how these two accounting concepts differ company a the ideal flow and prophet example let's pretend everything goes perfectly for company a they have plenty of clients our customers and expenses are well under control each month there's plenty of cash coming in and after all expenses are subtracted there's a nice profit left for the business owner the company is in good shape to keep running smoothly company be huge cash flow but no longterm prophet company be is a different story things haven't been going well for a while and the owner decided to close shop i though he selling off all is a quick men and assets as a result there's a lot of cash flowing into the business and for a month or two there may even be some decent profits on the books the problem here is that this obviously isn't sustainable in the business isn't planning on having any longterm profits this is a good example of how positive cashflow isn't always a good indicator of the viability of a business.
"cash flow" Discussed on Talking About Business
"Positive cashflow versus negative cashflow cash flow is the amount of money that flows through your business positive or negative denotes whether or not you make a profit in the end if you earn more than you spend you have positive cashflow if you spend more than you earn you have negative cashflow in general terms your business profit is what you have laughed after you take what you earned and subtract what you spend when you look at it in those simple terms positive cashflow generally major businesses profitable on negative cashflow means you're in trouble at least in the longrun of course things aren't always that black and white tracking cash flow is simply a planning tool and there may be times winner intentionally sacrificing present a prophet to grow your business and make it more profitable down the road the majority of the time you want to make sure you have positive cash flow in your daytoday operations not only does it mean your business is doing well and you can cut yourself a paycheck at the end of the month it also means that you have plenty of cash on hand to pay your bills higher help and buy more stock positive cash flow will keep your business running smoothly now let's look at negative cashflow while the name sounds bad it isn't necessarily a bad thing sometimes we have to invest some money and even go into debt to help us grow compared to buying a house with your personal life you take on a mortgage in between pain that often all the other costs associated with owning a home you usually end up spending quite a bit more each month and you would renting an apartment.