20 Episode results for "Constellation"

Ep. 297 - Data as the Newest Financial Instrument w/ Constellation Network

CRYPTO 101

52:34 min | 11 months ago

Ep. 297 - Data as the Newest Financial Instrument w/ Constellation Network

"All ride what is up all you good beautiful wonderful citizens of CRIP nation. It's your host Bryce Paul and today I'm not joined by my compadres Padre Pizza Mind. He is M I a He's actually in Texas right now But we have a special announcement If you guys have been tuning in you will know that. We have the Crypto twenty twenty summit that we are hosting this is going to be January twenty nine th to January thirty first got over sixty of the biggest baddest baddest speakers in crypto presenting on their projections for twenty twenty with their projects are going to be doing all sorts of fun forecast. It's going to really really be amazing and the best part of it all is. It's free and it is online so go head to. Www Dot crypto twenty twenty summit Dot Com and register for your free ticket and we hope to see their today we are joined by two co founders some brilliant chaps this Benjamin Jorgensen the CEO and Co founder of Constellation Network and Materiel Goldman. Who is a CO founder and VP of Finance at Constellation Network Work Ticker Dag? Gentlemen welcome to Crypto one two one. Thanks bryce really great great intro. We like to keep the energy really high here because we kind of are operated in the most exciting space in the world I would say would you guys agree. I totally totally agree You know it's funny. We have a coin name for people that are so energetic in the space become crypt electricals. Ooh I like that what we call we call everybody here at ENCRYPT nation CRYPTO. WanNa one we call crusaders or citizens because we like to make sure that everybody is is included in this movement and on a mission so just to kick things off Muttiah at a high level. Why should the average Joe Care Care about cryptocurrency? Well person for almost. Thank you for having us here. Bryce it's it's a pleasure to be to be on your show and yeah why. Why does it really matter and I think cryptocurrencies are one of the most exciting developments on technological but also on a sociological level of our times? Right now and and You know if you want to be at the forefront then it always pays out to to pay attention to what's going on and that's just on a very broad scale and Ben what do you think what what what is so novel about cryptocurrency or Blockchain or in constellation networks case. The directed a cyclic cyclic graphs. which is kind of an analog to block chain will what does this all unable? Yeah Bryce I think it's a great question and I have apt to back with Matijas said there is a there is like a social movement. That's a huge component of crypto. That people don't really talk about because communities communities talking about the technology and they're in like how it works and what it does and describing the how and we stopped at think we stop. Stop to see what the movement is but how generations are coming together to to partake in this game vacation of a digital currency in future vision for what connected technologies looks like it actually becomes a very simple play up. People like to watch movies like blade runner that talk about this futuristic world that we live in and they love sci-fi Star Wars and how all these new technology's come to life so what if there's actually it would if we we've actually created this reality of a world That can be possible. And it's it's not. It's it's crazy to say this but we don't really watch like James Bond movies from the past you go. Wow that that cool new gadget. The James Bond has ask and then like ten years later. We have the same thing but we're actually living in so yeah. You know what what Constellation with the Dag that the DAG is just an architecture or directed cyclic graph and this architecture allows for a big data processing in the Organization of big data. And what what that really means. That's actually nothing novel. It's actually done in centralized computing or distributed computing systems and we're bringing it to the CRYPTO. Space Collect CRYPTO and blockchain. See Reality so you mentioned big data and that's something that we don't actually talk a lot about on crypto one zero one but it's something the thing that is so integral to the space into you know technology at large. Could you kind of break down. What is big data? Big Data is like everything data. Just call it everything big like. You're living in service being consumed by data just day in a very out. We put up so much. Data the average consumer Sumer puts out one point seven megabytes of data every second holy crap the average consumer will have four devices That are putting out they own Ford devices in roughly three years. That'll be the average across the glow that is so many data points whether it's like clicking a button on a website or its process senior credit card at the coffee store walking in the door at a store or buying something you're creating so many different data orients into producing using large amounts of data. And so we've we've all heard about artificial intelligence will. Artificial intelligence is like the food is big data and artificial intelligence is like the animal right and so how healthy. How healthy healthy do you WanNa make this animal right? He could feed it. A bunch of Junky. Feed it whatever you want or you could feed it like a lot of plants and it's going to be healthy and it's GonNa give big. The artificial intelligence is running our our world and it feeds off a big data. Artificial intelligence makes recommendations on what to buy on Amazon or it helps identify fraud on your credit card. Har There's big data produces odd insights of our digital world today and so I noticed A WE'LL I've seen you guys speak and I read your site and you know I see that you guys talk a lot about you. Know good data versus bad data and kind of like the Constellation Network being. I mean the the way to get good data and ensure that data is not bad. I mean what does that mean yet. I don't think they're actually. I don't mean to correct you. Bryce but there's there's actually really no bait bad data it's about validating data so when you look at data as valid versus invalid right so when you look at you could save added. Data is some the doesn't meet your threshold right. Ben Ben Lives in. San Francisco is in San Francisco shopping. Right now we'll that's not true. I'm actually in London right now. That's an anomaly. But yet I'm Ben Jorgensen right doesn't make bad. It just makes an anomaly. So what constellation kind of focuses on and. I don't WanNa get too in the weeds of this. But we're focusing on validating data that comes into the system right like it's terrible when we get a recommendation for some clothing line and it's for a female for female female and male right necessarily bad. It's just an anomaly. So there might be something wrong with the data that's coming in okay interesting in So Constellation is a solution for that. Or how does that work. So consolidation is providing governance of data or validating data asset. That come in there. If it recognizes an anomaly we can signals signal that data set to correct and so really what constellations value proposition to kind of bring it back is to validate and secured data so that people don't tamper in spoof that that data to provide false insights into that data set so that we get better data than we get better and better intelligence you you think about an autonomous cars producing or card generals producing tons of data every second. That what you need a mechanism awesome in place to make sure that there isn't some sort of tampering or putting fake data into a system because back take derail the car and then the car is is gonNA crash into a building in is GonNa blow up in what constellation does is we provide security around big data sets that people. Can't tamper with that. And you can see the prohibition of artificial intelligence so you kind of get like an audit trail of data points in because all of them are linked together. I guess by Hashes if a certain piece of data is tampered with than it throws off the entire chain of data and you could kind of say. Hey this says where a fraudulent or a a spoof piece of data came in or is it how it works and that's exactly right. That's right on the point like we're creating a mutable audit trail right in so you can think about like what where has blockchain technology bed today. We've we've created a cryptographic wage. Secure a ledger bounce. And we focus on transactions because it's a very binary exchange I give you something I have something in my wallet to give you. You receive it and a whole network. Validates will what constellation saying is is that we think data by giant bats of data like facebook and Amazon produce should be governed by people we should all be able to say. Hey that is my data set and I can give you that data set so takes you know we go. We're evolving looking at a cryptic graphically securing a ledger ballots and evolving to cryptographic secure complex data sets. Okay so I I think I'm understanding the so so Matisse this is Kinda wear Decentralized data marketplace comes in right that's correct exactly and as Ben said I mean there are several aspects that play into that right not not only should people have authority and thus actually sovereignty to to determine whether data goes right because with data everything everything becomes transparent to third party. And that's exactly how most companies in the digital space make them money these days as and Just to help help you. Matiz is saying basically that we look at data marketplace's today and it seems to be the natural sure way to go right. I WANNA sell my data set to an advertiser. In this advertiser like Nike is willing to pay for that data set because I'm ten times more likely Alito by something that Matijas but in order to sell that that data you have to make sure it's valid it's clean. There aren't any anomalies for that person to buy that so before we get to a data marketplace. We have to make sure it's clean insecure and we know that nobody tampered with it and and then we can sell that data enjoy marketplace. Does that make sense. Yes absolutely it kind of sounds like you know me as an average consumer I could you know opt opt out of the general or the traditional ways and I kind of opt into the Dag that you guys are putting together and I could start to monetize the data that I produce. Yeah absolutely I mean think about it one perspective. This is kind of like an eye opening moment. Is that when we signed. We download an APP and we confirm. Confirm a terms and service whether it's facebook or instagram. Or all these APPs in terms of service basically says that we're giving up our user data our behavior savior what we'd Click. How Click how frequently we click how much we spend? They can sell it. So there's this whole other marketplace going on and we blindly blindly give them acceptance to use their application. Because we say that to use that APP is really that that's worth it but we don't know is how how much our data is being sold on the back end. So what if there is a mechanism whereby which we could secure all of our behavior and had our our our patterns of clicking and purchasing in be able to monetize our own data and actually sell that and then we could actually progressively we We can actually earn money towards the tour are terms in service in understand that fair value exchange that could occur and thus creating a viable marketplace. Oh it does like it definitely Everybody says Oh. Data is the new oil and data's becoming more valuable so kind of analogy algae that I just thought of or you inspired is like how data is to Or sorry oil is two cars as data is to algorithms where algorithms rhythms are. Powering everything that we do online for our recommendations all sorts of stuff just like how Data is the only way that an algorithm could learn who we we are just in the same way that the only way a car could move is with oil John. I mean that's actually really brilliant. That was great so tell me a little bit about the Dag token in like what is it's role because I think a lot of people get tripped up here Just in general with like okay. Cool you guys have You know there's a blockchain there's this distributed database. But why can't I just use my Visa Card or why can't I get paid in cash or why can't I even get paid in Bitcoin. Point for instance. So so. What's the DAG Jokin right? And maybe maybe I can shed some light on that and they're really different aspects to that right so the fundamental question business. Why are we using a token at all and the answer to that is we We have developed a new infrastructure as Ben said that can validate big data sets. And we're not just running off of an existing network like Assyria or Bitcoin. So that's one of the main reasons that we use our own cryptocurrency cryptocurrency and in order to secure such a network you have to have Bala Deger's and nodes and miners as they're called another networks and and these need to be incentivised right so that's one of the reasons of why we have our own currency because we have an incentive mechanism that's built into the network truck infrastructure that aligns the incentives of all participants in real quick. Let me stop you just for for the listeners because you say validates And basically what the validate are doing and correct me. If I'm wrong is just a green on the state of the network right. Could you do that a little bit more. Yes so so the validates or nodes codes as they're called in other networks day validate the transactions that happen in the network and the mechanics by which that happens is a consensus census mechanism audit consensus protocol and a consensus protocol. which in our case is proof of reputable observation to be technical which is a reputation based makes sure that all transactions in the network are correct and ballot and nobody spoofs tampers with the network integrity? Okay very interesting and are there applications for this You know kind of like in the OT space. I feel like that would be really really applicable bulls. You know you have all these devices on the edge like for instance. I heard a story a couple of years ago about somebody hacking. In through an Iot she device at and they stole a bunch of money from a casino but the Iot device was a water temperature thermometer in an aquarium and it was just happened to be Internet connected did but there were some type of vulnerability that a hacker could gain access to the entire network through this. So is there a way that something like a constellation network would be able to mitigate that kind of risk a never heard that that use case pretty amazing use case and I just learned today so absolutely networks have a lot aww boehner ability and when we think of Iot were thinking you know how you know. The Internet controls our thermometer thermostat in in the house or turned on her lights. And that's how we we see Iot and he's connected things but really IOT hasn't really evolved for the past twenty years. There's and some of the reasons it hasn't evolved is because of the security threats crowd networks like you just pointed out and those networks works have have data that are transacting amongst devices in real time right and those networks are pro to to a lot of threat vectors. So what Constellation would do would actually protect the data. That's being transacted between those different devices in Iot network. Okay very cool is that where like data sovereignty enforced by infrastructure. Comes in. Yes that's it that's exactly where it comes. So for example we're working with the United States Air Force. The department defense and data sovereignty for them is about making decisions in the field. So if you're creating all this data in the field that doesn't have time to go back to to a server and be stored in secured and then analyzed and then produce logic even though we're talking about maybe you know minutes in or even Mike tens of thousands of seconds Those seconds are incredibly valuable when you're talking about human lives says dated needed data sovereignty kind of exist amongst the ability for data to be freely exchanged amongst devices. Okay so it's kind of bringing security take to the edge. That's exactly the best way to put it love it. That's really cool. Do you a friend WHO's interested in getting into cryptocurrency. Oh you but they don't know where to start building their portfolio. Well we have the answer. It's called copy trader by Toro with copy traitor you can automatically copy copy every trade of editorials top crypto traders just like myself or bry Sur Kevin at the exact price point and in real time no need to study up on the markets are develop your own strategies simply to sign up and copy our trades any profits that we make you do to perform to your investment of course with Toro you get access to the world's most popular cryptocurrencies with transparent trading fees. All in one easy to use APP copy the smart money with E. Toro so join now at editorial dot com slash crypto. WanNa one. Thank you so now I kind of want to get into just like who you guys like. I'm curious like how did you guys meet meet like in of all the companies. You guys could co founded together. Like what made you guys. WanNa co-founder this. This awesome awesome company. Wow So do you want to jump in or you want me to well so I mean that would be a really long story but I tried to make it short so I moved to the bay area about route three years ago. And I'm I've been you know having my tabs on the crypto space literally since day one and I'm always interested in in and seeing what's interesting exciting thing and being in Silicon Valley you know you meet people and and the minute I met wired and that was even before installation was founded. It drew me in because the breadth and the width of that idea and the applications of Adak infrastructure and. I'm being very very technical here. But but just thinking that also threw in what that means as third generation blockchain technology for the world at large that that just blew my mind and And then you know getting to know the team closer You know I was I money into the project and then it became very clear. Clear that over time that we actually have to co found and work together as well and Yeah amazing I think what you'll find is that we all we all invested invested in this project and we all met each other in San Francisco in very different paths and I would say that You know I personally. Yeah I was looking for the next big project had sold by Ad Tech Company in Twenty fifteen and was doing a bunch of angel investing to kind of understand some humility of myself was was I good leader. Do I know how to grow a business and you don't when you're building something. You don't always have that introspective moment. And so when I I I met Matisse at a co working Spot in San Francisco that was kind of trying to build a community why our CTO. Joe and co-founder kind of the brains behind the network. I met in the same light. Somebody introduced me to miss this great new platform or in great right you idea. That's evolving blockchain technology today. And then Benjamin giggles our other CO founder. I actually met at my the previous company And he was at Oracle and we might company at a time did an integration with Oracle. And that's how I got to know him on a working level double that over the past couple years we all kind of came together at different stages to build this vision. That was you know. Two years years ago in two thousand seventeen you know going on three years it was a different vision of what blockchain technology was a different style to it. Yet there's different technical Nicole limitations and all sorts of crazy stuff like I love. I just get so inspired because this park has been around since June of twenty seventeen. So we've just been able to speak with so many different People throughout the years. And you know it's just inspiring to see that even though whatever prices are really low compared to the old days the technical breakthroughs that we've had and all sorts of different you know building and not even just the technical breakthroughs but you know the liquidity that has come into the market is so so much more robust and you know the financial infrastructure and the rails in order to have all these traders and stuff. It's just really really inspiring. It's it's pretty cool to have gone through the I. We all met right around that same time and it's very interesting space of people that believe in a future. That are optimistic. That want to learn they wanna be a part of something big and they had had the opportunity to be a part of something big and unfortunately angel investing is taken a different. Turn in it's very difficult to get into the right projects of angel investing and that's often procured for Elites in San Francisco yet they have access to the best deals and there's a barrier to that will what would crypto blocking spaces. Offer is a completely different different paradigm shift in. It's not just it's not just about the crypto currency in the social movement but it is about a future technology and EH future platform. That doesn't fit the mold of of Silicon Valley absolutely. Yeah I'm curious about like your guys management in style. Just you know out of my own personal curiosity you know Ben. I imagine you manage different people than Matisse does but ben how would you describe Matisse's management style. In how would you describe Benz Management Style. Oh man don't pull Eddie Punches. Wow you know you want to know there you go I go. Ah We operate with Humil- one of our major principles and when we're Right it's we need to give each other accolades an and acceptance in praise. And when we're wrong we need to call each other out and provide that open forum You know it's like Ray Dolly wrote a lot about his principles in managing bridgewater capital a fund. And a lot of talk about whether I agree with them or not as they talk about humility and being able to call somebody out regardless of their rank or where they fit in it and to have that open dialogue because it comes from A place of of solid intention so the way that we that that I personally manage is to let I want people to figure out their own shit shit. I actually say that it figure out your own shed and own it own own own. What you do? Well only do wrong come to the table. Do Your Post this morning how did you what did you like about this. What didn't you like about it? How would you do it in the future? And and what risks you WANNA take. So we also very encouraging of doing experiments experiments all the time I mean. We are in experimented in so many different. bitcoin is still an experiment The holy man it totally is and if you don't if you think of yourself in these rigid format of how do you manage in You know we do have. KPI's or key performance it's indicators and other ways of assigning goals but you have to be very malleable to be in a space like this because milestones technology communication styles change rapidly and it's for us as leaders to be able to figure out how to communicate effectively actively and that's our number one rule is communication Around Constellation. How can we communicate effectively in that drives humility and and being humble and being honest about what we want and also being very vulnerable were very vulnerable team? which were we? We don't feel heard or seen And that allows us to build really great things and persevere in very uncharted water territory. Sure I like that Matija. What do you have to say on that? Yeah I mean that's a very broad topic in because it touches so many aspects of social social interaction. And how did you know associated with Al Personal Style Management Style and everything and as Ben has put it very succinctly thankfully we have we have a set of values a set of norms. Debbie have actually coded fide in Constellation Constitution and Yeah one of them is humility and others You know truth. And openness self reliance these are all aspects that we came to realize about ourselves selves and our management style that Kinda like percolated to the surface often going through so many rations and experiments and changes changes not only with the technology and but also who we are as a team you know. Remember the bear market was very brutal. A lot of companies didn't make it through and that puts a lot of strains on on on teams on projects on companies and that all has been the furnace through which we developed ourselves. How which we you know fashioned division in a much more precise and clear narrative how everything has developed in and these values are the ones that came up and we are centered around those and you know we call each other out on things that don't work but we also give each other praise on the things that do work and Ben couldn't have said it better? I mean we are in that sense. You know CO managing aging. We are managing to gather. It's it's really in the spirit of of the team it's like weird that unified entity you know it. It goes back and forth and instead fluid motion between people that want to make something happen in this world and that's what projects into Our wider community so weird at quo group and and these values and behavior patterns day then reflect into our community and they see that in our daily daily interactions in the way we speak in the way we behave and they pick that up and they go like. Hey actually I like how those guys role I can associate. She ate myself with at an equates that infectious moment were you realize. Oh wait a second what we do actually resonates with other people and then it creates creates that self awareness and awakening. Where where you actually are at the at the seat of a of an entire movement and that's really one of the things that I love and what is so unique about crypto? Is that community aspect in that almost call and response type relationship whereas you you know there we you know. Everybody knows that when you're older of token you're not an equity shareholder And you don't have those rights however The companies or the projects that do succeed in this crypto space treat their community like they are equity shareholders. They do they do allow them that call and response relationship so I mean as co founders of this decentralized community you know how do you manage them and like how big is it and could you just give us a little color around around your guys relationship with the community. Yeah we've had. We've had an interesting evolution of our community and we were very silence for a while in the beginning as we wanted to figure out our own identity and who we are as a team as a technology as an ecosystem and ad then we could come out of the Plato's cave if you will stealth mode yeah come out and be like. Hey this is who we are. This is our message and by the way we have something to say and I think that a lot of companies come out. They miss identify with who they are. And they're supposed is to be something just because they raise money or because they live in a certain town or they're doing something that's not it at all in our community we actually took a very serious approach to it where we said we had to be quiet for awhile. Came back when we listen to what they had to say. We took a lot of phone calls with individuals that had names. Like you know crypto and we would take a phone call a what not to say or crypto headroom and if they had something to say we listened to it and the way we build trust was we would listen listen to them and then we would. We would implement some changes in the way we conducted ourselves or a business or how we are ticketed. Stop and then we would tell them what we're working on stuff. That's very secret. And we'd take time and we would leave. They would share that in some capacity for better or worse and so we did this dance back and forth the built this kind of trust Amongst each other that allowed us the safe spot to go. Hey this is what we're working working on. We need help here and most entrepreneurs fail. It doesn't matter if you're if you're doing an equity business or or a community driven business like crypto. Most companies failed because of their lack of humility. That's good that's good stock of asking for help. I don't know how to do this. Yeah and and I see it time and time again. I've invested in over fifteen companies personally and I see it time and time again. I've seen companies just closed their doors whether they have been. They don't have a crypto currency. That just like they tell us. Everything's great and then they run out of money and they're like why too much pry. What who's there to support you? If something goes bad in our community we did have a community. We've got you know about a little over ten thousand people on Telegram But you know we've got one hundred thousand people on facebook that really matters because I look at all the other communities and I see more engagement in our community and just in our than and I do a whole day across many of the larger cap projects and I see a our community. That's that expresses themselves in a tent tenth to learn what our technology is. We don't have moon boys in that. Your own component. But I often get a new people come community and they're like dude. There's no moon boys here and I was like no there I was I was just GonNa say like such a unique makeup of your community. How do do you think that happened? Did you guys make a point to market to certain people or was it just a natural thing that you guys have some kick ass community managers who we are I. I mean like we're not moon boys and we asked we want to create a professional edge because we want real adoption and so the way that you know they always say that culture always starts at the top You know it's like we lead by example ongoing like hey this is what we we WANNA do. Do I think we need to have more fun. Sometimes sure and not take ourselves seriously because at the end of the day people want to have fun whether it's in their day to day jobs and your boss says hey it's Friday we're going to go to a bouncy room You know something at the end of the day WANNA feel appreciated. They WanNa feel heard and they wanna have a good time because life is stressful man. Yeah life is short short life is short and you know when you stop putting steps saying. That's good behavior or like endorsing behavior when Moon. It's like get out of here. You got other things we've got to change. You know what the world's not change it if you're just going to say what we want you to understand what we're building and the way that we did good. That was that we went into a few leaders in our community. And we said Hey we want you to understand the impact of what we're doing will give you information in like a very very one on one basis and spend one on one time with you if you can tell our story better than we can and that and that's how we really built that trust trust and we built a voice in a very active community that I think really believes in us and you can just go there and check it out and we call ourselves the the best of the best community in Crypto. I truly believe it. It's pretty awesome. I love it and for those of you listening who don't know the term moon wound boy. this is just a a kind of a funny little slang in the The the Crypto community were people back in two thousand seventeen the ICO uh-huh days. When the everything was crazy things would moon and you know mood? Is You know a ten x one hundred x return on your investment. And you know. Then you'd get all these weird little people coming in your telegram group just saying you know when moon and when pomp and all that kind of stuff. So that's what a moon boy is and you don't want to be associated fitted with them and you don't want to be one yourself And they're just you know helpless Speculators that they don't do anything they're just they're looking for for price appreciation appreciation and they're not actually interested in you know the people behind the project or the project itself at the technology and change in the world it's just the selfish mindset so it's good to hear that you guys like to kick those guys out. Yeah I mean you know. There is a lot of people that in twenty eighteen The believed the project and we get a private presell and some of them still believe in the projects. And there's a lot of people that just didn't bother to ask us if we need help. And you know that you know being in San Francisco and being in a community of startups. You always ask for help. Oh Yeah and the ad to see see that that that dynamic going like Oh these were these this this group were moon boys. They never they were never really in it And then there's this group that really WanNa make this happen and see us through. It's kind of one of those moments when you go. Wow who is with us through the thick and thin. The it'll make the good the times that much sweeter wants the full raging bull market comes back and everybody's having a good time in the sun you say okay you were around you were around and then you guys could all celebrate great together. What side of the fence do you WanNa be when things when work out like you know you you know you so you WanNa have an endorsement by the team that still be like? Oh yeah that person was a good person and I think this goes back to integrity and we look at like constellations doing this kind of building data integrity okay. How good is your data? Well how good is your community like. Do you have integrity at the end of the day. Can you show up and be like like. We treated that person while well and that's how we WANNA be treated in life. And that's that's why I don't I don't you know it's it doesn't have to be more complicated and be like. Hey we want to be treated with respect right. Yeah Yeah so so. Let's bring it back you know. We're we have got a few more minutes here and I want to bring it back to the Constellation Network and I know you guys. I have so many initiatives going on I you mentioned the Air Force and the Department of Defense and quant and I'm sure there's several others But what would you say is the most critical initiative that you guys are tackling right now and kind of. How are you guys going about that man? I I've Matisse I have a couple of things to say and I know There's a few things in his thoughts on this and I would say first and foremost is education which is understanding what we're doing. We can all be a little too technical and make it sometimes difficult to understand on what we're doing so educating people on the impact that we're trying to make is such a powerful for full leded that that's what we're focused on you know yes of course we're here to build the business. Yes of course were here to to sign people to use our network and build community but really we wanNA educate ourselves and our community and it goes two ways because this is uncharted waters Mentioned the other major component I would say is governance and I'd love for us to talk a little bit about that right. Yeah I mean totally I mean governance and says one one of the important topics for us and we had an at a very interesting point because as as we mentioned before governance plays into that that whole notion of sovereignty that then plays into the notion of you know what we're doing at the core of our protocol which is data sovereignty and data So so how does that all play into how we govern ourselves and and right now we're at a very interesting stage because we're you're not quite governed unchain yet and in cripple terms that means that you have your governance and voting decisions basically notarized on on the blockchain itself and you have a management dashboard where you can see what the Pasta votes are. We're not quite there yet. Even though we are developing into that direction action. So we're in in a in a moss off approach at this point. Were what we call emergent governments so we have collected in in all these communications that growth process that we have been describing a in this conversation that there have been many people coming to the forefront. front-row really want to contribute on a fundamental level to what we're building right and they have different expertise. They bring to the table. Some very every technical some are more from investments in some oil from a legal stand on and some have run other governance projects in other blockchain companies. And so there's this wide variety of people that came to us and and it in co- emerged basically. It was clear that these people want to contribute and we formalize that in in governance group that has house rules that that has voting rules and and we governing ourselves and consolation has just one seat in that early governance chamber basically. And we've already voted on On a couple of a pretty fundamental decisions and once we have F- conducted the token swapped we will formalize that even more in the sense of on Chen governance where everybody can see the voting proposals. And what is up for vote and and and that's on the technological side but we also have a much broader vision off governance because is in essence. What what you see abducted already a lot again because it's such an exciting topic but but if you think about governance and especially governance so crypto currency projects you can think what what does that network do? You have a global network that has governed by by its it's participants and and what our participants that could be node. Operators that could be you know people that are actually affected by by the network either as a user as a customer as as somebody who's in some form or fashion affected by the network. Should they have a stake in deciding what's going on in the network you know. They are a lot of interesting questions that have not been finally fleshed out and again. We're here at this point where you know once you make a step into something that hasn't been done. Before and crypto currency and blockchain is definitely. It's not one of these steps. And we're we're at that you know at that forefront than a lot needs to be fleshed out and thought out and an address from very different angles on a global scale because never in history before did we have such a globalized movement offers technology but also people that then can decide how. How do we actually govern ourselves? How do we WANNA work with each other? How how is this GONNA play out? And how does that play out with existing legal frameworks and limitations. You know how does that play out with different countries and and and all these things so it's a very very interesting place to be an. I could go on for hours about this but I don't you know I realized realized that we're running short on time so I'll stop here. No I think it's a great point and it just makes me feel like we're in. I'm almost like the colonial days right when we were you. Know ratifying the declaration and the Constitution and you have all these little different states coming up with their own laws ause and how do we govern people on you know local basis sees and also on broader basis. So it's just a really exciting time and you know it's not something that we really spend much time I'm talking about here on Crypto one but it's such an important time because it it's truly historic and we're going to remember these things like these stories. We're going to tell her grandkids. Because you know we're going to be governed burned by blockchain's and all of our machines and devices are going to be governed by blockchain's in the future and we're here in the making And so you boys are doing. The lords were instantly. That we're definitely pushing the conversation a little different. Hopefully this With your listeners is a kind of. Here's a little different town excel expression absolutely so so I have I've three questions left and these are generally questions that we you know. Ask everybody who comes on the show. And so you know Ben. I'll start with you of all the companies in the space besides constellation network. Who Do you think is having the greatest impact in the crypto in the UPDO space that's tough. I I would have to say that I feel. This is super bias but the quant team Network and working with Gilbert Radian. They have expressed ben complete complete professionals and what they're building is an operating system that that kind of seamlessly allows developers to use use different protocols. They take agnostic approach focuses around interoperability amongst protocols And I think that their ability ability to articulate the message to enterprise customers is very fascinating narrative. Amazing Okay and Matiz. Let me ask you a different question. You know if this is the first podcast that somebody was listening. To in the CRYPTO space. Right they never really heard about crypto. Oh and they're just starting to dive in what's one word of advice that you'd give them one word not one word one one. At least that's my word. Don't while the one word would be learn But on a wider sense to really make sense of this movement. And that's an advised. I've given to a lot of people is if you really want to understand what is is happening here. You have to Soom out a on the historical timeframes. We're moving in because we tend to be so tied down in our current now life situation ensues zoom out a little into the historic perspective. And then when doing that there is a a very good book recommendation. it's by Canadian in a PhD. is named Frederick Lalu. And he wrote a book highly awarded it's called reinventing organizations and it lays is down some organizational principles. But also you know sociological mental principles of how people can work and govern each other and that ties very tightly and neatly into the technological aspects of what blockchain an infrastructure is enabling so If you understand that sociological side than it makes it much easier for you to understand where we're destroying is going and what technologies capable of expressing awesome. It's called rethinking organizations. By Frederick the Frederica Rick Lalu Lalu reinventing organizations perfect. Okay well I just wrote that down. That's on my list. I Love Book Recommendations. I'm a big reader so and then the last question I have for you folks today is who somebody. That's really inspired you and it. It doesn't have to be in the CRYPTO space. Just anybody like who's a role model for you. How man another Tuffy still think of we don't think about these things you know every day and I love asking people because it just provides so much color into into the people that are building the future like just really a question? Yeah you know man I could. I can go sentimental and say my grandfather was like first generation ration- into the United States and he went onto the CFO of of a huge motor company called Packard Motor again wire company copper wire company that sold the United Tack. You think about these people you know. And there's a picture of him growing up in a clay high North Dakota Eh. It's pretty wild but I really think any explorer. I feel like all these are kind of cliches that Like the like Lewis. And Clark that came across America you think about the terrain and how these people didn't have maps and like they're approaching cultures that they didn't know existed stood and they don't speak the same language like food they don't know what you know environments that they don't understand that there's like a certain intestinal essel fortitude that exists amongst these people that persevered ear anything that we can comprehend today. I think that's great. I don't don't think any of that's cliche. I mean it relates so much to the life of an entrepreneur in somebody who's also getting their feet wet in investing in the crypto space. You you know people get into all sorts of different environments and uncomfortable positions and new things. So I I think that relates really well to what we what we discussed today so gentlemen thank you so so much for Spending an hour with me today and you know where could the good citizens of crypt nation. joined that big wonderful wonderful community of yours. Yeah as you say get the the actual link to to our community but On telegram were were on telegram and in our community it or you can go to telegram. It's T. Dot me slash the constellation community. You can find us on twitter our pretty vocal across all these different platforms. But I would say you can find some telegram mm-hmm or find us on twitter. You can see our impact of our community and the materials and how we express open. Innovation really comes alive cross. Twitter Telegraph have discord and then always our website constellation network dot. Io that we have all of our resources partnership. Bob Papers are announcement with the Department of Defense that we were closely with and any information running out on our network will perfect i. I can't wait for To hear some feedback from the community and I hope that they get some color in your lives. They haven't heard before from the show. I hope so too. Thanks bryce really appreciate it. There's been a great experience and a great interview. You conduct a really strong interview and I can't thank you enough. That means so much. Thank you thank you Ben Thank you. Bryce was a pleasure trip nation just a friendly neighborhood reminder to go to. Www Dot crypto twenty twenty summit Dot Com and register for your free conference pass to the online online summit crypto. Two Thousand Twenty seven. We got sixty speakers who are given their bold predictions for prices and bold predictions for a technological developments in this crazy crypto space. So if you want to be the first to know the big news and you WanNa make sure that you're in touch and into tune go to crypto twenty twenty summit Dot Com right now in register for free.

Constellation Network Constellation Ben Ben Lives Bryce Paul San Francisco Crypto twenty twenty Matisse facebook Benjamin Jorgensen CO founder twitter Silicon Valley CEO and Co Matijas James Bond
Its time for B-commerce (Booze commerce)  Constellation buys Empathy Wine. Alibabas stores from the future. YouTube TVs price jacking.

Snacks Daily

18:52 min | 5 months ago

Its time for B-commerce (Booze commerce) Constellation buys Empathy Wine. Alibabas stores from the future. YouTube TVs price jacking.

"Nick this Jack and this is snacks daily. It is Thursday. July second. Happy Fourth of July Nicholas. Wait a minute. What Day is the fourth of July this year? Was that a sparkling water? Do we have a third co? Host tells sparkling water full disclosure fourth of July is technically Saturday on a weekend, which brings up the all talking about Friday that we're taking offers it. Monday that we're going to take on Wall Street had no idea they flipped a gold coin decided to go with Friday. We kind of preferred a Monday right. Markets are closed tomorrow on Friday which is the federal recognition of this federal holiday, so we're taking the after that means this. This is the last part of the week. Good timing for our best podcast. Ever Jack for story. Constellation brands is a liquor alleged, and its stock jumped seven percent yesterday because of its latest acquisition empathy wines, tiny wind startup founded by Gary V and twenty, nine thousand nine good vintage, vintage, second-story Alibaba, and beyond me are teaming up to sell plant based meat in China, but the way more interesting story we noticed Alibaba's retail stores that came from the future, actually sell the plant based on third and final story. Youtube TV just pulled a move straight out of the cable TV playbook. Jack up prices and annoy customer so easy. Yeah, it could be coming out to the rest of tech and the rest of the disrupting products that we love now snappers before we throw in the tank tops and enjoy the fourth of July holiday. We're all celebrating a little bit differently this year. Well, it's the age of Kovin, so outdoor hangouts are good. Bob Bobbing for apples, bad bad, but share Disney, plus account is good. Yes, reminder to everybody tomorrow. Hamilton comes out on Disney plus so if you spent two hundred fifty dollars a ticket to. To fifty thousand, you better brag about that right now. Because everyone will see Hamilton starting tomorrow I had a cousin, a new guy who killed a dragon I got to see it in person, no big on Broadway all you need to watch. Hamilton is a buddy who's got a Disney account, but if you're not Hamilton probably gonNA become a verb a couple snappers are celebrating something a little extra. This holiday weekend Jack The honors getting hitched six feet apart, staying together forever full image on Friday is the zoom wedding of smackers Lora Beth Andrew. We'd love Zoom Lick. Plus one. Virtual raw bar. Saturday we got Scott From Scottsdale Pledging Holy, matrimony fellow snacker, Jordan Arizona is officially the home of the self-driving wedding registry. We're going to take six four made out of silver and a Tesla Lora, Beth, Andrew Scott and Jordan. We are honored that you told us about your matrimony and congratulations to you all to the rest of snacker nation Happy Independence Day to the rest of the country. Daily. We got. About the Hamre Food said Candy. They don't reflect the views. Family is still informational just so. Recommending any security, it's not a research report or investment, advice, offer or sale of a security. Next digestive business news you. Financial LLC member FINBAR's less S. I. P. C.. Four! Story Jack The to canner. Constellation brands just jump seven percent after its earnings report the highlight, though isn't the earnings at all. It's the fact Constellation is acquiring Gary, V's one year old direct to consumer wine startup smackers, constellation is Ben big on the old be Commerce Jack Translation be commerce. We're talking booze commerce. That's right. Direct to consumer now smackers. Constellation, it's a liquor company with a thing for alcohol and to think for name dropping ballast point beer. That's Constellation High West Whiskey constellation funky Buddha I. Know it well constellation exactly they have acquired a lot of companies. Let's go back to two thousand, four great vintage Jack What happened then constellation into by a big wine brand. So why else go, but the godfather of Napa Valley Wine Robert Mondavi? They spent one billion dollars on that company. Jack like you gotTA. Give you gotta give a disclosure here. Full disclosure on the member of the Robert Mondavi Wine Cloud I. Get a box. A quarter saggers nothing. Jack talent more than Jimmy. Chianti from Robert Mondavi I'll tell you nick if it doesn't have reserve on the bottle of not drink and it's so true. Tony Fifteen constellation then spends three hundred fifteen million dollars for me. Oh Me's wind brand accompanied doing a million cases of wine a year, but that's not constellation, which is a publicly traded big boost stock decided this week to buy. Empathy winds a one year old. Start up. That's only selling fifteen thousand cases of wine a year. Yeah, and they're doing four million dollars in revenue. That's like a single olive garden over a single. Single our in a single town. It's a tiny company, but it's got big implications now snacker. Let's talk about empathy winds here. A company CO founded by Lao, jets, Fan, and media. Personality Gary Viner Chuck Aka Gary V. I'll be honest I don't know why Gary V is famous and has a podcast. And now we started a wine company, and it's kind of a buzzy wine. Company is first on success. We looked it up. His Dad's wind Biz from like three million to sixty million in sales, and I needed some other big things. According to my buddy, Nikki founded a company called. Razzie which helps you get table reservation. Good Point Jack here's what's wild snappers. Constellation isn't just buying empathy. The Wind Brandt it's buying an entire business model direct to consumer. It hasn't really happened yet in wine, but you can get a subscription and then get like a box of wine every month. Exactly that comes from empathy, and it's going to be there like white or Red Arosa. AROSA, they're keeping it like Henry Ford style here. They're keeping like that restaurant and my cousin, vinny, which only has breakfast, lunch or dinner on the menu, not too sweet, not too dry, but definitely not dissuade not to dry empathy read pairs with the delicious range of wide food. That's because it's just read actual quote from the website Super Tuscan Schmoozer Tuscan over there, so empathy is not vineyard. They don't grow grapes there. Simply buying up red, white and Rosa wine and slapping a label on it and selling it online, but here's why. Why Constellation was so interested turns out ninety percent of constellations. Business comes through restaurants and bars and wine stores. We're talking middlemen. It doesn't have to come through middlemen. Though, because forty six states allow alcohol to be shipped directly to your door through ECOMMERCE so empty looking at the situation, they're trying to cut out the middleman dollarshaveclub style, but with booze subscription. Check out the website. It's like sixty bucks or three bottles. Do you want red, white or rosy? Those the only option B. Commerce booze commerce so jack. What's the takeaway for our buddies? Buddies over at Constellation and empathy, any fragmented industry like alcohol brand matters extra more snacks. We saw this in mattresses. How about this? SEALY CERTA sleepy's sleepnumber, all the mattress brands, and that's just the S.'s back in twenty eleven when I just graduated, I walked into a mattress store. In my one goal, I remember not get ripped off because I have no idea what mattresses are good, and which ones aren't. Then Casper came around built a brand. You could trust and went completely direct to consumer and think about it. Wine is the ultimate. Industry most young drinkers can't even remember a single wind brand, and they're lost in the wind. You can't even pronounce half the vineyards anyway. That's what the fat Jew saw. When he created the White Girl Rosa brand a few years back and spoiler. White girls trusted that brand. Yep, and he was able to sell it for one hundred million dollars to budweiser just last year, so gary is no wine. Wine connoisseur. He's in the fields picking the peanut now just to celebrity who created a label and the direct to consumer model builds your relationship with that label for our second story. Youtube TV is better than cable TV, but it's prices have doubled in the last three years now snacks talk about a story that's driven by an industry treats customers, horribly cable TV which is an infamously pros before. Jack. I'm so glad you said it. Classic pros for course putting profits before the customers we see it. We got a call it out I they make you sign up for a twelve month contract, and then they jack up the price when that Promo promotion is over. Oh, you're trying to cancel. That's a five hundred dollar fee. Oh, you canceled over the phone that six ninety five, because he did it not on the Web I. Don't want to cancel on the phone. You're making me cancel love. This phone call is gone for four minutes. That's. Four four-minute production. Then they're going to charge ten dollars a month to rent. They're terrible equipment, which is mandatory. Another ten broadcast TV whatever that is, but then after you canceled. They're going to call you in one month. It's fifty bucks by the way. Is Happening automatically in September sneakers? If you're thinking about connecting the cable cord again like I would just was whatever price they quote you. You might as well just double it after the. Jackson lost a blood cell over there now snacker is you hear the word gig throwing a lot these days? That's like number one word up here in Silicon, Valley but Jack. What's number two chord? Let's talk about the dictionary of cord quarters out there in the economy. He got the cord cutters. Who are those who canceled cable? They use Netflix instead and they love telling you. Yeah, we just cut the cord, and then you've got the cord nevers. We're talking Gen Z. who've never even considered paying the hundred dollars a month for cable? Though probably watching blogger on youtube, just show them what court they literally think. It's a snake. Real thing we've tried it. And then you also got cord forever. We're talking to people who love switching on. The TV can't imagine coming home without immediately turning on Sportscenter something creepy about the surfing culture that they just love seeing what else is a potentially on discovery channel, but cord replacers is something you don't talk about quite as much. They're the ones who want cable TV, but they WANNA be treated with respect Jack Beautiful Transition. TV and Hulu Plus live TV pretty much cable, TV, but through the Internet, and they're not harassing you with fees, so it's knackers if you're not with Youtube TV. Here's how it goes down. They offer. You're eighty five channels, and they're all live. You can watch through your smart TV or your Roku. Apple TV, whatever is connected to the Internet, peanut macadamia nuts walnut chestnut. Nick does this thing have live sports? Yet check twenty four hour. Cable News Schick hgtv shack that all sounds incredible, and it was only thirty five bucks a month back in the day it launched in two twenty seventeen at that incredible price, which was probably humiliating to cable companies, offering a worst product triple. The price xfinity didn't even like acknowledge their existence, not a thing. You couldn't even say it there, but then came the news this week. You to TV has raised prices again again and now they're up to sixty five dollars a month, sixty five dollars a month, still a big improvement from one hundred and eight bucks a month that. That the average cable user was paying nick. It's only been three years, and they are very close to doubling. Their prices feels like three years. You shouldn't be double. This isn't like my puppy river. WHO's growing at that faster rate? You can't sustain distinct, but apparently they can so jack. What's the takeaway for our buddies over Youtube? The price reckoning of our favorite tech products is coming snacker. Big Tech of eventually has to stop losing money on things like this, and that means having to raise prices. Think about it's Nagara so many innovations we love have been making losses for the companies that own them. Fairly making a profit guber Netflix's Harry's razors, any company that off banks invested in the whole list, investors have subsidized products especially Softbank to let themselves an incredibly low price case in point, east scooters, one dollar a ride. They're basically charity organization for Urban High Income Millennials, eventually a price reckoning will come to easters because the companies need to at least try to make a profit for Youtube TV. It's already here for our third and final story alibaba usually trails Amazon in everything, but the Amazon of China has two hundred futuristic stores that make Amazon look primitive smackers. We've got to bring on a journey through. Jackson is heads. We saw a headline yesterday that. That made us jump, so we jumped on it. It said beyond meat was entering China through Alibaba's partnership with a brand called for ship. Now we're beyond me shareholders, so we were curious about why beyond got added to this. Chinese grocery store list which we dug further on, we decided the beyond story wasn't worthy of this pod today. I know we stumbled into some details about for. Chicago and we had to tell this knacker's for ship. The retail chain owned by Alibaba. Now you've heard of Amazon. Go futuristic stores with like no cashiers and no humans Ali Baba's for ships stores I like Amazon go if they got bitten by a spider man's spider. alibaba lunch for ship. Oh back in two thousand sixteen to pioneer a new thing. They called this new retail. They had a tagline for it the boundary between online and offline. Disappears so snacker. Each of these two hundred locations service both stores and warehouses, and that's important because sixty percent of purchases for Chicago happened online for delivery, and it's good to have a lot of warehouses to distribute from, and this is out there guaranteeing thirty minute delivery if you live within one half kilometers for ship thirty minute delivery that is truly insane. You think of the item boom. It's in your closet all right. Now if you live further than one half kilometers from this distribution site, let's say up to three kilometers. They guarantee it in sixty minutes. Yeah, because three kilometers is like Madison. Square Park, Columbus Circle, it's a good amount of terrain. Right there, so if you live a Madison Square Park to Columbus Circle distance from one of these. You're getting whatever you order in sixty minutes. That's impressed. This makes Amazon primed two day delivery look like Cam across in the Silk Road Really does sixty minutes versus two days now. That's for sure. DOES ONLINE OPTION FOR CHICAGO offline? Their physical stores are insane. Those two hundred locations talking about that also distribute for online sales. Their physical experience is like a Disney ride. A futuristic epcot center literally have restaurants that are run by robots who deliver food. I watched the video of somebody order an online sandwich from the. The subway, and then they get off their stop in a rush to get to work so on their way past for Shipu checkout locker to thirty one scan it with their phone, and they're hot sandwiches waiting in there. They don't even answer the door you walk in you. See a thing a corn. You can scan the Barcode on that corn. Decide if you want it to. To be delivered to your home or take it out with you, and then you walk out of the store, they scan your eyes. You paid for the whole thing again. It's like Amazon Goes Human Lewis contactless stores, but the superpower version of that kicked up twelve notches and get this. It has two hundred locations already that come in six different sizes. You got the five hundred. Hundred. Square Foot Bodega store so that they can thrive in urban inner cities, but then they hired like starchitect to come up with forty thousand square foot mall size stores with schools, movie theaters, sixty retail stores, and a kids zone in there, and that bigger version can thrive in China suburbs by the way nick. Did you say stark attacks? Yeah, like Tony Stark I did I? I think it's a beautiful portmanteau. Good one so Jack! What's the takeaway for our buddies over at Ali Baba's for Shipu Alibaba hasn't made it to the US, but it's Chinese. Customers and its stock are available in the US that's because it is nine hundred and sixty million active customers their word mostly in China. Okay so to get nine hundred sixty, one million active customers they. They could compete against Amazon and Walmart here in the United, states. They're like looking at the geography here and they're like you know. We'll just target the other seven, hundred million other Chinese. We have here in China. Yeah that we haven't got to yet, so Alibaba isn't coming to United States right now, but they are letting American businesses sell their products on Alibaba DOT COM in. In China! It's also letting Americans by its stock which IPO in New York in twenty fourteen. The stock by the way is at a record high right now, so Baba's stock could be priced too high and it could fall. That's a real thing we'll. Reality could happen, but we think Alibaba is truly the Amazon of China for ship solidifies that Jack up the takeaways for us. US before the three-day Weekend Constellation brands is a big booze stock, but they just bought a tiny Weinstein up in a fragmented industry brand matters extra YouTube. TV has nearly doubled. Its price is in under three years and could be the start of a price reckoning. INTECH ALIBABA showing the world. What the future of retail looks like just not having in the USA quite yet though. Now far. Our snack factor today sent in from Nick at Berry College in Georgia. Delicious Okay Nick points out that Ford. Motor Company was the last American car company to go public with an IPO way back in nine fifty six, until Tesla which IPO to twenty ten, and is now worth more than all three of the Big Three Detroit Bake three car companies combined. Tesla is also as of yesterday, the most valuable car company in the world after passing Japan's Toyota Oh and by the way while we're throwing out medals over here Tesla's now worth more than Exxon Mobil, which was the most valuable company in the world when Tesla. Jeez Kraut. To edit that out because curse were what that was. I love it reminding now before you happy. Thirtieth birthday to Anthony Dangelo of Toms River New Jersey which I think is most famous for winning the Little League World Series twice way more than once also had birthday to John from Portland. Oregon, because we mentioned the Pacific northwest like daily now, happy thirty ninth birthday to Rick Dog in Chicago, Real last name on that and then happy birthday to snacks. Snacks News, AUTORITE A REBECCA! Moretti celebrating in Italy Rebecca the third snacker. I don't know how to say Happy Birthday in Italian. I think it's both companies or aniversary Belichick. Go with something and ends in Avowal Jack Snag Irs. If you see a buddy across the grill, this weekend doesn't snack. Please ask him a twice twice Dixville. Be Confused, so then you'll have to say. Have you had your snacks daily? We'll see Monday have a great weekend if you know. Now. By the way snacker, this is Nick and Jack and I both own shares of beyond meet Jacqueline. Shares of Amazon I own shares of Alibaba, the Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robinhood Financial Llc, and does not reflect the views of robinhood markets, INC, or any of its subsidiaries or affiliates. The podcast is for informational purposes only in not intended to serve as a recommendation to buy or sell any security, and is not an offer or sale of a security. The podcast is also not a research report, and is not intended to serve as the basis of any investment decision Robin Hood Financial LLC member Finra as IPC.

Jack The Alibaba Nick Amazon Constellation youtube China Constellation brands Hamilton Disney Ali Baba United States Gary V. Chicago Robert Mondavi Netflix Gary INTECH ALIBABA Kovin
Daniel Adamson  Innovation from Asset Giants at Capital Constellation (EP.136)

Capital Allocators

1:03:55 hr | 7 months ago

Daniel Adamson Innovation from Asset Giants at Capital Constellation (EP.136)

"Hello I'm Ted Psyches and this is capital allocators. This show is an open exploration of the people and process behind capital allocation through conversations with leaders. In the money game we learn how these holders of the keys to the kingdom allocate their time and their capital. You can keep up to date by. Visiting Capitol Allocators podcasts. Dot Com my guest on. Today's show is Daniel. Adamson the senior managing director at Wath Roth and the President of capital Constellation a joint venture between mega asset owners in Europe North America and the Middle East that invest in the next generation of private equity managers are conversation focuses on this innovative joint venture and how a group of large asset owners came together to scale their resources we touch on a host of issues relating to the formation and implementation of the business. The many possibilities that are arising from this novel setup and the serious challenges in bringing it to fruition. I suspect we'll see more efforts by acid owners to disintermediated pieces of the investment value. Chain although as you'll hear it's a lot easier said than done. We recorded this conversation before the pandemic too cold rest assured Daniel and his colleagues global travel. That you'll soon hear about says turned virtual with the rest of us. Today's show is sponsored by northern. Trust Front Office. Solutions sophisticated multi asset class investors speed high tech and high touch data management solutions for the front and middle offices further. Trust Front Office. Solutions Combines high powered functionality with exceptional client to help asset allocators efficiently evaluate their portfolios accelerate their insights and mitigate their operational risk visit northern trust dot com slash solutions to learn more. Today show is sponsored by canoe. Intelligence Canoe transforms documents. Tha Data and data to know. It's the first purpose built technology that automates document management and data extraction for alternative investments. And it's used by the likes of Hamilton Lane Steph Stone Group Lexington partners and other sophisticated investors if you're an alligator or service institutional investors and want to automate your investment operations. I highly recommend you. Check out canoe. Visit Canoe. Intelligent DOT COM to learn more. Please ENJOY MY CONVERSATION WITH DANIEL. Adamson great to see you. Great to see you too. Why don't we start with where the seeds of your interest in this work began? That's a challenging question because you couldn't imagine a childhood that was further for my current pursuits than the one that I actually had so I was in school until I was twenty six. The child of of two academics. I didn't even know what business was. Remember asking my dad growing up so who live in all these nice houses and he really know either when both of your parents do the same thing whether they're doctors or professional athletes. I think you just assume that. That's what all adults do. And I was an only child until I was nine. My folks were as I said. We're both academics and very academic academics. If you know what I mean a history professor and a developmental psychologist. Their friends were academics. Their kids were my friends and so I was in this kind of guild. That was focused on the life of the mind not the life of commerce and it took me through my early twenties to begin to realize that as much as that was the only life that I'd known wasn't really the life that I wanted. I think the commonality between that upbringing and the world of investing is that both of them are lenses on the whole world. So if you're a philosopher you get to think about everything through the Lens of philosophy and if you're an investor you got to think about everything through markets and a while even at twenty six twenty eight. When I was at McKenzie Twenty nine when I was at Lehman getting my real education I still might not have said yet that investing was for me. I was looking for the same kind of thrill that I had. In the academic world of getting to see the whole world my desk. What was the most influential part of your academic career on your window into how you think? Today when people see my academic background law school philosophy graduate school. Econ as an Undergrad people. Assume that while law score must be relevant to an investment career and an ECON surely that's relevant and they almost brush the philosophy degree under the rug as a kind of sightly embarrassing two years of of John. Through the world of ideas rather than anything practical but actually that was the most helpful because especially the type of philosophy that I studied which was contemporary analytical philosophy and I studied at all souls college at Oxford and I had just the most rigorous experience imaginable. What you're doing is you're questioning basic assumptions. And you're doing it in a not necessarily a data driven way but a rigorous logical way coming to conclusions that you share with very smart peers and colleagues and get them to pressure. Test them for you. That's great training for investment. Because the quickest way to lose money is to go into a situation being sure that you're right and if you learn one thing as a philosophy student is that you're probably not right and so where did your half take you to leading up to what became you know where you're sitting at. Wofford and capital consolation. Sure so with that realization that I wanted to do something. Entrepreneurial and global coming out of Yale Law School. This is two thousand three. I joined McKinsey and Company. For the reasons anyone should join. You get to see the whole world. I thought they were going to send me to Paris and and Tokyo. Actually my first Mackenzie assignment was in Rochester. New York which was lovely and then my second was in Rochester Minnesota. So it wasn't exactly the Ron of world class cities than I expected but I learned a lot and then from there. I had the wisdom and foresight to join Lehman Brothers and two thousand six which while obviously a disaster in terms of what happened with the business turned out to be invaluable to me personally in my education so my job there was to advise the suite of hedge funds on corporate enterprise value creation. So how do they raise money? How do they think about the market for selling G. P. Stakes was really just emerging around two thousand and sixty thousand seven? How do they think about talent? How do they think about their competition? And then of course with Leeann itself imploding and creating a slew of problems for the very managers that I was there to advise as a twenty nine year old. Got An incredible education in the challenges of forming any kind of partnership or doing anything. Entrepreneurial I remember one of my my professional mentors at the time said Daniel if I could teach you one thing it's that all partnerships fail and I thought wow what a grim lesson in life and I certainly hope that's not the case and and a lot of the work that I've done since has been motivated by that idea that not all partnership should fail that we can build a more enduring form of partnership so thinking a lot about governance thinking a lot about how you you structure something internationally to create a positive sum game where partners benefit from working together and from Lehman. Oh so from Lehman. I joined bridgewater up in Connecticut which was incredibly eye opening. I worked for Ray who is amongst the most unique and insightful human beings you could possibly come across. It wasn't for me as I think. Many people will say is true for them. And that's by design so I quit after about a year so I left bridgewater. Very amicably wound up running my own firm for a few years before joining. Aries where I got to be a head of investor relations and support the firm through the transition from a privately held company to a public company. We went from forty billion and am. And how I think it's a hundred and fifty or thereabouts. So the transformation which was fascinating to witness and then from there. I had the Great Good Fortune. We had our kids moved back to the east coast looking for something here and I'll tell you About WOFFORD and constellation. Yeah well why? Don't you dive right in sure? So when I joined. Wat Phra which is a twenty five billion dollar alternatives manager based on on Park Avenue with offices around the world but headquartered here New York. I'll confess that I had not heard of it. I was picking between a couple other professional opportunities. But a good friend of mine who's now the CIO of Wa Fra. When I presented him these other two opportunities that I have a third idea for you. And why don't you come in and sure enough? Two weeks later I'd seen the light and I'll tell you what I saw which is going back to that philosophy training. There's this distinction that people make between L. P. and GP which has its uses for sure but Wafra has the benefit of being a bit of both so twenty five billion as GP. Wafra invests in everything from alternative twenty-first-century real estate to alternative finance to private equity. We have a big strategic partnership business. Which I'll talk about. In the context of Constellation we do liquid ALZ hedge funds etc. But we do it. In the context of a kind of balance sheet entity that grows its capital on the basis of good ideas that type of entrepreneurship in the context of a thirty five year. Old Institution with twenty five billion dollars is very rare and it comes from the special relationship that will offer has with its capital providers and that was something that we wanted to replicate at a higher scale with multiple partners in constellation. When you were coming in to offer what were you coming into do initially? I'm so grateful that Wofford took the chance to hire me when it was absolutely unclear. What specific value I was GONNA add. Think folks thought this is somebody would like to work with. And let's see what happens. Which incidentally I think is the way. A lot of great professional relationships began rather than filling a particular box. I didn't come in with an idea of constellation nor was constellation. My idea alone and I wanNA talk about the collective effort that went into putting it together. Both with uaw-ford team that had already for a decade been doing GP steaks and GP SEATING. Which is something that people should understand in order to understand constellation and then the work that our partner asset owners like Alaska and rail Panin Sweden and the Kuwait Investment Authority others contributed. We'll certainly get into specifically what you're doing with constellation. There's been this shift in these asset owners sort of shifting the way they invest in the markets. We hear about it with the Canadian plans. Otherwise what have you seen as these kind of trends in the seats you've had leading into this about in particular those pools of capital. I'd like to start with three trends. That have popped out for me in the last ten years. The first ten years ago we weren't talking about asset owners people talked about pensions sovereign wealth. Funds was becoming a term of art and started to be picked up in the press around a decade ago whether it's the financial crisis or other awakenings within that community of state affiliated pension affiliated asset allocators a number of institutions were born around two thousand eight thousand and nine two thousand and ten that brought together sovereigns pensions in new ways. You had the international forum. For SOVEREIGN WEALTH FUNDS The institutional investor roundtable the fiduciary investor roundtable for cooperation. And Partnership. I will not bore you with the acronyms for ten more of these. But the amazing thing is there's about let's say one hundred trillion of institutional. Am in the world which to help people figure out what that means. I like to say look world. Gross Product is eighty trillion sixty trillion depending on. Who you ask and how you calculate it so you're talking about more than one year of world. Gross product saved by institutions. And if you look at the concentration of that capital you've got twenty or thirty groups that have the ability to move mountains to move tens of trillions of dollars in a concerted way and those groups were getting together. So I'll come back to this when we talk about. Her Constellation was started but I met a New Zealand in two thousand sixteen with about fifteen trillion of acid owners. We were in that room because of offers affiliation with acid owners in Kuwait and I was talking to Angela. Rodale the CEO of the Alaska Permanent Fund and later met. Paul Bishop the head of alternatives at reopen and it was this first generation of institutions really convened people. And by the time I arrived on the scene in two thousand sixteen there was some frustration that that convening hadn't lead to concrete formal joint ventures between acid owners on different continents. So there was a real desire to do something. The second megatrend if you will that. Fed Into Constellation is if you look at where the smartest the best minds in the developed world go in the Nineteen Eighty S. It was so many of them at least went to Wall Street. It was the birth of large alternative investment institutions if you look at blackstone blackrock kkr Carlisle Apollo aries etc. They were all born a generation ago. Their founders are still there and they're all well north of a thousand people at this point so whereas in the nineteen fifties and nineteen sixties. I think the American dream if you were well educated kid was to write the great American novel or to work for NASA in the eighties. A lot of people went to Wall Street. And so you have this amazing brain power. That's now possessed by people and training. Who are in their fifties and sixties. Who have the track record the personal resources the networks the credibility the savvy to do something entrepreneurial if they choose and at the same time those large itunes are dealing with succession challenges and trying to restructure and then the third piece is we've seen the birth of a new type of organization in the last twenty years. I would argue not so much in our industry but elsewhere whereas in the twentieth century the archetypal business was Kodak One Mainframe One business card one brand one corporate strategy and say what you will of the big P. shops and asset managers. They're born in that century. That's how they operate they have a hierarchy that leads up to a single. Ceo What we've seen in other industries and AIRBNB is a great example of this but there are many many others is entrepreneurs working together through a kind of virtual company through tack through governance enables animal spirits to flourish and creates a kind of framework for in the best scenario for people to to run their own businesses. And we haven't seen that in finance. I'll talk about constellation. The context of those three trends. Yeah well I mean that's where we're GonNa go where we you've laid out is a group of large asset owners labelled as such who. WanNa do something together. Talented people and the potential to work together in a different way than sitting on the same office. So you bring that together and how do you get from there to something actional with a great deal of effort suffering long plane rides conference calls across multiple time zones so the origin story for? Constellation is twofold. First we had an amazing team at Wa- FRA that had been acquiring stakes in GP's and seating new GP's especially in private markets since about two thousand eleven. And I won't go into them here but a lot of household names in terms of the groups that we've partnered with so a great deal of expertise on the team that predated me in how to innovate in terms of structure. And I think a lot of the the greatest innovations in financial markets have come not through technology changes but through structural changes. So that's one piece of the story. The other pieces. I mentioned that trip to New Zealand. Which was really memorable because I I sat next to Angela rotel. Ceo of Alaska Permanent Fund. And I asked her. What's your five year? Strategic PLAN FOR ALASKA. And she said well we'd love number one to get more into private markets to go truly global at our focus across segments of that market from private debt to private equity to infrastructure to real estate. We're in Juneau. We have a small team. We have sixty five billion of. Am We need to be in private markets in a bigger and bigger way? We have some very talented people. But my sense and this is Angela. Talking is that we need to partner with other institutions to do this right and so she was already thinking about the positive sum model for sovereign to sovereign pension pension partnership and then. We were fortunate enough as I mentioned to meet Paul Bishop from Rail Pan which is a venerable UK pension system. And he too had this attitude that we should collaborate and we had the makings then of a of a true partnership between three groups on three different continents each of whom had different deal flow different internal capabilities and we decided. Let's start with three because you add more partners to mix like this and it just becomes exponentially more difficult and we spent a year together thinking about what would a new business that's owned pro rata by each of our entities. Look like and we call the Constellation as the name suggests bringing stars together from from a vast geographic base and in terms of what we would do with Constellation as dedicated pool of discretionary capital. Seeding the work that offer had been doing since two thousand eleven backing new managers seemed like a good path to improving knowledge flow deal flow expertise across all of our all of our institutions. So the vision early on was if we're seating three or four new managers a year and doing it in this shared framework. Already we've seeded for and we're under exclusively with two more so if we keep at that pace imagine we have ten fifteen twenty thirty fifty managers across every major asset class across every major geography. Who are feeding us. Co-investments fund vintage opportunities and who we are aligned with because we own a piece of their business. What can you get out of that distributed brain that kind of high mind? I think we're only beginning to see that today. Now there's been a lot of excitement here in our second year of doing business together. But that was the core idea of partnership and to use that partnership to create better alignment with asset managers. And so there's there's so much to dive into this. And why don't we start with the selection of the investment opportunity in the sense you mentioned offer was doing the seating but a lot of what we hear about is this move to get closer to the underlying security so whether it's co-investments with private equity sponsors even led investment so as you're forming a new organization headed you think about weird start on that investment activity if you're building sort of a new team and why not go all the way to the end and do direct deals first of all. I Wa- FRA. We do sometimes to direct deals but I think any responsible pension cio or CEO will tell you if they have the governance to do what the Canadians have done or the Singaporeans of non and really build what you might call a non for profit GP in the context of State plan. Alaska doesn't have that capability rail. Penn doesn't have that capability Sweden and Kia just art. Structurally built to do that. And so in some sense either if you want to say that the Canadian model is the most idealistic. I think it is. Our model is a step in that direction but one in which we recognize that as acid owners. We're going to continue to need to work with the most talented. Gp's we want better alignment with them so that we're getting better information access to deal flow. Yes there's some complexity around creating that alignment but in the end. We're trying to build a throwback relationship to a simpler era in which GP's and LP's trusted each other in a different way. I was listening to a recent version of your podcast and there was a mention of a company that helps. Lp's validate the fee and Kerry that they're paying GP's. I think to me that was emblematic of a breakdown. In trust which we've seen since the financial crisis and we wanted to return to simpler way of working together so to answer your question. I think the core part of what we do as seating is ask in most investors. Start with the question. What should I own? What should I pay for it? When should buy it? Where should I buy it? Those SORTS OF QUESTIONS. We start with the question. Who should I trust who is excellent in this area so most of what we do is a bottoms up approach rather than thematic and we're looking for truly outstanding investment talent and business building talent who we want to partner with and in consolation? Yes we've done for going on six of these partnerships prior to that in Wa- from we've done twelve so we're now up to about sixteen to eighteen of these partnerships. They're all going well. So if you remember that that senior partner who told me all partnerships fail you know not necessarily if you structure it the right way if you've got the right spirit in terms of how you're going to work together and add value to each other. You know from the perspective of an asset manager we have a trillion dollars of 'em amongst our partner institutions and. That's just today with the five that we have. They should be focused on doing what they do. Best which is pick securities as you put it. The ability to add value in both directions is so obvious that if we just clear. Our minds of other distractions and focus on making the flow of ideas and capital happened between those two groups. The opportunity for value creation on both sides is enormous to get there. You mentioned structure a few times. So why don't we start with? How did you structure and staff constellation the first thing people talk about seating? Obviously I know you're very familiar with hedge fund seeding and that was where these things began. I've been surprised over the years that acid owners big pensions and sovereigns. That is have done more to not just seed managers to create new ones that they own one hundred percent arguably that's what owners. Gic into Mosig and others have done but with a one to one relationship between the GP and the pool of capital. There's been press that of calpers in the last couple of years about creating an internal. Gp If you can do it and not everybody has the governance to get it done. What a great way to become aligned you give the GP. The Flexibility to operate commercially outside. The the reach of the politics of whatever government is leading the particular pension or sovereign but you also align them with the goals of the end constituents so when we set up constellation our first challenge was to set it up in a way that had those benefits as a new. Gp Constellation should be owned in equal parts by Alaska Rail Pen and Piphat us in Kuwait. And it's as simple as that. Its own thirty. Three percent by each group we then structured it in such a way that other investors such as the Swedish and the Kuwait Investment Authority who who by regulation generally don't own an operating company could come in parallel and with that structure. We continue to grow. And we continue to grow in a way that if enterprise value is really created in this which we expected to be over the next five or ten years who gets that you know when blackstone builds multi billion dollar institution and then it goes public. None of the pensions put money into blackstone in its early days get any benefit directly from its IPO. In fact you could argue that creates misalignments and confusion because now blackstone has two master's their shareholders and their. Lp's here we wanted to keep it simpler where if constellation as a GP grows and creates enterprise value and this is not a negligible point right. There's fifteen trillion dollars of enterprise value held in asset management firms. Compare that to one hundred trillion of a Um held. Institutionally you realize this is a massive migration of value from institutions to the managers that serve them so getting a fair piece of that number. One Constellation should be set up to benefit the asset owners. That set it up a number two. When we see new manager we become their partner for life so yes. They still control the majority of their economics. They probably actually get a better deal than they had when they were at Xyz large shop in the house took fifty percent but the deal that they get aligned with us and that enables a really different sort of relationship when it comes to co invest or or support to them on value creation activities like form Capitol or underwriting new deals so there's certainly an elegance to the flow of value creation in that economic structure to those asset owners though ultimately you and your team or individuals working for these acid owners. And so how do you get aligned? Inure incentives as individuals as the people doing these deals and creating these economics has to work and we started with a white blank sheet of paper on that point and because we had the benefit of three parties around the table and a year to build this right. It was crucial to us that. We have the right long-term alignment you can't forget about management our principles there were. It should be very long-term alignment so ten years plus it should still be a situation in which the vast majority of the enterprise value created is owned by the asset owners. That set us up so we kinda started from the opposite end of a typical GP so on a typical GP set up the founder one hundred percent and maybe they get deluded later by selling a piece to a large acid owner. We started with acid owners on one hundred percent and management confessed in if certain milestones are reached over a very long period of time to something that will be meaningful to them and keep them part of the fold. And I think that's the up and down. Consistent with our philosophy heard about our sponsor adam finance in past episodes. Well the team just created a custom promotion code for listeners of the show get free immediate access to Adam Plus Adam pluses Adam finances premium content offering that includes key excerpts and professional commentary from company earnings calls in-depth analysis of corporate actions in highlight two research reports for major banks and firms. You can access atom plus using the coupon code capital a that C. A. P. I T. A. L. A. and visit. Adam dot finance to sign up cool. Let's get back to the conversation and had us the management structure work so clearly. You'RE PRESIDENT OF THIS ORGANIZATION. Who else is involved and from which institutions? Well first and foremost our board so. We have a board of the three founding acid owners. Paul Bishop who's the head of private markets? At Railfan Steve. Bosley who is now the deputy cio of Alaska and Russell Valdez who's the CIO of Wafa or three founding board members. It couldn't be simpler in terms of structure one organization one vote and because everyone put in an equal amount. It's very very straightforward. And we like that. I think what our best move in building? Constellation has been the choice of partners both the individual people and the organizations then because I mentioned that we wanted to accommodate other organizations outside those three. I think the ultimate goal would be to have. Let's say ten to twelve acid owners part of this beyond that I think we start to get diseconomies of scale and it's harder to share information to me. The analogy has always been should feel like a seminar. Not Lecture people are really exchanging ideas back to that philosophy degree so we created a strategic committee which includes Sweden and the Kuwait Investment Authority. And we'll continue to grow from there so that's the simple governance piece in terms of team. Each of those organizations is really involved so rail pennants contributed a great deal when it comes especially to things like sustainable ownership where they have a lead. Alaska submits countless potential seed and growth stage. Gp steak opportunities for us. The Wafra investment team has a mandate to source diligence and execute seed and growth stage. Gp State transactions on behalf of Constellation. So we have the benefit of thirty seven person investment team that's led by Russell Valdez. Who's one of our board members? Connor Stuart others who are who are intimately involved so one of the benefits of bringing together so many institutions if you build it as a virtual company is that while each of those groups short-staffed which is a common problem in the pension and sovereign world collectively. If you do it right you have the resources and bandwidth to do so much more and we get together all the time. It helps that Stockholm. It's amazing in June and so is Alaska and London is pretty much great anytime of the Air New York so we get together at least four times a year all over the world. We've met in Tokyo if Matt in New Zealand. We've met in Amsterdam to exchange ideas both within the acid owner and with the asset managers and so on a day to day basis. Is it then the WOFFORD team? That's doing the meetings conducting due diligence raising priorities for the decision making unit. Yes so you can think of us as the management group. Sometimes people ask me. Why is this the only example of a sovereign the sovereign pension pension collaboration? That has discretionary capital. And we're at a little over a billion of discretionary capital at this stage. Why is it so hard other people seem to want to do it? And I think you either put the partnership together and then go find a GP which can be challenging because investment committees. Don't want to improve an idea until you have. The team or one group can contribute a team to the partnership which is also challenging. Because if its going well as an investment strategy why should one sovereign or pension WANNA give it up and so I think the hardest conversation that we had along the way was to talk to Kuwait about look. This is investment strategy. That's going very well but think about it if you're a new P. and you're interested in taking one hundred million dollars to be backed by Kuwait. How much more exciting would it be for you to be backed by a North American sovereign a UK pension a Scandinavian pension too large Kuwaiti institutions. And then you've got three continents and by the way that proposition is growing and they have a total of a trillion of am. That's a different conversation and it's not one that are presumptive competition in the seedings base can have with you so the view us. This is an asset class where teaming up make sense. I think there are some other ethic classes where that's true but this one it's very obvious. Wisit tricky at all with any of those other partners in constellation that wanted their own. Say in the types of managers that you had back. So there are certainly some sovereigns and pensions. For whom this sort of partnership would not work if you have the luxury as a GIC Tomasa homers to effectively operate as a large non for profit. She with well compensated direct investors. You may decide. You don't need to ask the question. Who should I partner with? You should ask the question. What should I buy and then go buy it in our case? Most pensions and sovereigns don't have that luxury for all sorts of reasons. The highest paid person in Wyoming is not the guy that runs the twenty billion dollars statement. Our Wealth Fund is the college football coach so their compensation issues globally. There's talent retention. These entities are not generally located in financial capitals. So there are reasons to pursue this kind of joint effort even if that means giving up discretion to a group. That's based in New York that can manage the capital collectively. What I will say though. Is that twenty three months ago when we set out to do constellation we thought we were getting into the seating business jointly and we have done that but taking a step back two years later. There've been a few surprises. That speak to your question. I we've noticed that slightly more mature. Gp's that might have two or three billion am are still interested in this value proposition. Because if they can get a catalytic investment from their their ideal client base which is large pensions and sovereigns globally groups that can serve as a kind of golden reference in each geography that they need to build their business in that Scott a lot of value even at that stage and the second more important realization. Is that while? We're very excited about. Seating and working with entrepreneurs is a great joy seating. Let's be honest is a fairly niche business. We will never be deploying tens of billions of dollars in this way At least not in a year. But what that seed gives you access to is all these different asset classes across illiquid private markets all the co-invest all the special situations all the potential for warehousing deal to support the manager and the asset owner to give them more time. The potential for direct lending that sponsor originated to the underlying portfolio company. What could we do in secondaries? I mean we are just now thinking about how to connect this network of asset owners and asset managers. And it's going so one of our managers in the fall. Did a large high profile financial services transaction. Pfizer was bought by motive when they did that. We HELP THEM. Warehouse the transaction others from our investment community the acid owners. Bein constellation came in took pieces of the CO invest in addition. And so we've created this kind of beehive of activity and a lot of our job is just to not mess it up because we have smart people around the table and so while Waugh for maybe making the decision around seating. You're opening up all these other N- much broader asset classes for ease of use for all the sovereigns and pensions. That are involved. How does the decision making process work on the Individual Investments? For any of these opportunities. Well if it's a seed it's in wofford's discretion to pull the trigger and if it's something else then it goes to our board and I mentioned our board is the three people that speak collectively for our balance sheet and this is part of the challenge of setting up something like this is the regulatory challenges of Managing Third Party capital the fiduciary obligations that. Come with that. That's why it took us a year. And that's why we benefited so much from what I started by saying you know wofford unusual where a GPS and LP so we're able to have conversations with other LP's other asset owners on a peer to peer basis. But we had the infrastructure of a GP as a SEC registered investment advisor to manage capital. And we'll continue to innovate. Structurally so we can keep pace with with a set of opportunities. That's coming out of this ecosystem that we've built. Have there been any differences of opinion about pursuing either a specific investment seed or strategy within that poured structure as of yet not within the board structure by the time. Something's gotten to that stage. We've we've previewed. We've talked about it. The boards been involved and meeting the manager looking at a particular deal where I think there's constructive tension in in. If we didn't have this it would be a shame because if you're bringing the best minds together from around the world and they don't occasionally disagree. Then what's the point? Our mandate is broad we can do anything in illiquid ALZ from infrastructure to private credit to private equity to real estate stuff. That doesn't have a name. We can do it anywhere in the world we can at times do it directly in the form of co-invest or we can do it through a manager that we align with to date. All of our deals have been in the US and Europe. I don't think anyone surprised by that. We've looked at opportunities in Asia and Africa and Latin America. Those are research projects for us. Now I think where there's sometimes constructive tension is. How quickly should we go into those markets? And can we time our entrance into those regions with a new partnership with an asset owner in that region? So what's the phrase? Never bring a knife to a gunfight. You know we're going to do something in a region we wanna be partnered with somebody. That really knows what they're doing. I maybe a better analogy is. Don't be the dumbest guy around the poker table if we're in Asia. How much would benefit from a sovereign that has the local knowledge there so this is a big strategic priority of ours is to continue to build out our our base of owners not with a view to Raising A. Um because there's plenty in our current partnership group with a view to increasing our expertise and then increasing the aperture of investments that we can consider as a result is that balance sheet structure. A capital call is commitments in capital calls. Yeah and then is it. As you invest that capital you go out and see. Who's interested or in contributing more because you think about a billion dollars in the context of our many trillions or on the balance sheets of these institutions still is a drop in the bucket absolutely. And that's why we've been very cautious and conscious that to that point about partnerships. And how difficult it is to succeed to start with measured steps so a lot of people would look at. I think we're about one point. Two billion right now look at. That is terrific first effort. It's off the charts but the reality is in light of the hundred trillion dollar problem that we're trying to solve which is how to empower asset owners to get better access better intelligence. Their fair piece of the enterprise value created within. Gp's it's a drop in the bucket. And that's why we WANNA use seating as a wedge into a more aligned relationship between GP NLP that can lead to all these other non niche broader classes. That can work together. And we have no specific. Am Goal for constellation. Our goal is to solve a certain type of problem for institutions to get them better deals better access better economics. You're still early in the interest of these investments. And today you could go and present to a new manager and say you know we have effectively permanent capital. There's no need to sell our stake down the road at some point in time. It's likely that one of the partnerships that you back we'll fail. I mean in theory. All of them failed but many have. How have you thought about what the messages are? Asset owner base has a generational timeframe. Most of them are cash flow positive through twenty. Sixty two thousand seventy if I had to list of kind of fourth megatrend back when we're starting our conversation I would have said. It's a move to longer duration capital that matches longer duration underlying opportunities blackstone. Spend working at this. You see new structures all the time. It is hard for conventional. Gp's to operate in that way because they're looking for a crystallization of carry after five to ten years on the asset class. In our case the opposite is true it would be hard for us to operate if our plan was to sell in five seven years. Because if you think about GP's the kinds of groups that we back their other family owned businesses are closely held partnerships not to knock Goldman or Morgan Stanley R. J. P. Morgan. But if you're a family owned business who do you want as a partner? Somebody that's going to come in for five or seven years and force you to restructure. Maybe sometimes if especially if you're looking for the best price but what we find is a lot of folks are looking for a generational timeframe partner. So what that means. Is that in terms of the structure of our capital. It has to be Kwasi permanent. Yes there needs to be away for the investors. Eventually pull money out. Or what's the point but on the flip side? It can't be tied to a specific arbitrary deadline if it's eight years or it's ten plus one plus one so in our model when we back a new manager or a next generation manager that may already have a couple of billion yuan we think of our return stream as well. There's the L. P. commitment that we've made to them that will self liquidate touch wood and then we have our GPO ownership which grows as their business grows and becomes this kind of growing annuity which we can hold indefinitely and yes at some point they may come back to us and say Gosh. This has gone better than we expected. We'd like to buy that piece back from you or it makes sense for us to sell it to some third party or finance. Come up with some financial solution that allows us to return capital to our asset owners but the the basic view is people. Talk about getting feed discounts. That's probably the most common way of of approaching an early stage next generation manager LP investment in our case. We're looking for alignment that could lead to effectively kind of negative fees in the long run. Where as the manager grows we have this other return stream which can add significantly to to our bottom line which is to say giving acid owners their rightful piece of the enterprise value. They helped create by catalyzing these businesses. I'm still curious about the structure of your team. And you mentioned that the management team can kind of earn their way into ownership of constellation. How about the people below the Management Team? And how do you compensate someone in a competitive world for talent? I'm proud to say that because we had really smart people around the table as we're designing the governance that we built something that has a lot of flexibility in and so every year the board gets to decide. Who's contributed and we also have flexibility which we plan to exercise to build Advisory Council send to bring in industry leadership from around the world to support what we're doing. We have a kind of convening function within constellation so that that extends to more junior professionals that we want to ensure can grow with this business and it has to do with ensuring that we're working closely with the asset owners up and down their mastheads and with others who can support us and because we were born out of institutions like the international form of sovereign wealth funds. And the WER etcetera. There's just a natural community of people that we can draw on and where appropriate compensate to help build something you mentioned at the onset this notion of this activity being positive sum and that is something you don't hear that much about it's a nice ideal but in a lot of capital markets and a lot of these pools of capital individuals incentives. People are compared to others. How have you tried to engender that positive sum game across these constituents? I think the easiest way to do it. I mean look one of my biggest pet peas. Is that people tend to look at financial markets as either zero sum or even negative. Some and I think that comes from the fact that we were raised to view public markets as the archetype of how things are done and I win you lose you when I lose and that is the case if I'm writing an option and you're on the other side one of us is going to do well the others not in private markets. First and foremost things are very different. This is about value creation fundamentally and I think that's never been more true than today given entry multiples typically ours that you have to have a value creation story with respect to GP's that we back and who are essentially. The portfolio companies have constellation. We have to have a value creation story around them and with respect to the asset owners that partner with us and have been the owners of this new entity we have to have a value creation story for them which may go beyond what we do specifically within constellation where we're helping them in other source other deal opportunities and improve their ability to execute in a range of markets across the world. So what I typically do is instead of attacking that bias that people have in some sort of philosophical way is. We'll just give a real world opportunity one of our managers that you by the way as an asset owner own. A piece of their business has a five hundred million or billion dollar I fund and they're trying to take down one hundred and fifty million dollar ticket. How can we all do something? That's to our collective benefit well that what's the managers problem. It's he needs to be good on that deal or else he's going to be elbowed out by some other GP and it's too big for his fund and everyone knows that so we can come up with our balancing and say here. Seventy five million you put in seventy five million from your fund go pursue the deal huge help for him by the way that helps us because we own a piece of his firm so already there. Some Mutual Ism then once that warehouse is put into place. It's famous that asset owners have is that are bigger than their stomachs when it comes to co invest. They just can't move at the pace that these deals move and get things done in two weeks. What if we could give you a year or six months and hold it on our balance sheet while you and your team of valuated in Juneau or in Sweden. That's better for you. And it's also better for the asset manager too because now they can think strategically about which co-investors come in. Maybe they WANNA think about stapling that co-invest to future fund vintage investment. There's freedom to be creative. When you have balance-sheet combined with the linemen combined with smart people working together is the likely outcome of that situation can be a positive sum. I think yes when you get outside of the ecosystem of these asset owners. Four one of the managers you've backed there's always this question about the next L. P. And how do they perceive the outside owner of a GP? How did you think through the amount that you'd be willing to own constellation of a GP and the incentives as someone else investing in one of the managers? You backed so. We're very mindful of that point and I think the first the first thing that has always given me reassurance is that the managers alignment to performance which is a big issue is almost always better under a constellation partnership than it would have been for them back when they were at XYZ household. Name Private Equity Firm. Where at a big shop? You're contributing to the overhead. The founders are still there in essentially every situation so it varies firmed firm. Let's say it's fifty percent gets kept with the team and fifty percent goes up while each of our partnerships is negotiated individually. We're always way below that level where a significant perpetual inority owner but. We're not interfering with the upside economics and in fact a lot of managers that work with US would say we're accelerating that upside and so they're getting a smaller piece of pie coming out of the oven faster. Also we really try to earn our keep so if I'm a potential and a manager and I see that. A percentage call at ten twenty thirty percent of the manager is is owned by a third party. Who is that group? Is it just some passive minority interests? That does nothing. Well that's could be a problem. If it's a group of peer acid owners that are actively credentialing that manager supporting them in these areas we call core capital formation operations risk management and enterprise strategy. Maybe a positive because the big risk when you're an LP why is it so hard to raise a fund one or a fun two ribbons sometimes a fun three despite the fact that you know we did a study with MIT last year that argues that those vintages tend to out perform? Why is it so hard? It's operational risk or the perception thereof. And so if we can come in and show through facts that over time we've been able to de risk these situations and allow the entrepreneur to focus on investment performance. And that they have succeeded. I think the view is that we're adding value for our peace just as any other partner should and so I think while asset owners may need to get comfortable with the notion that another asset owner who came in earlier got a bit better deal than they did as long as they can get past that ego part of it and really look at the value. They're getting in my view. They should be happy with coming into a manager. That has the support that our constellation managers have would have been the biggest challenge that you faced either in the formation of this or the implementation far. Well I talked about that. That gear that we spent really getting together in person weekly which may not sound like much. But you're talking about three continents in. Juneau is not an easy place to get to Nora's Kuwait City London and New Yorker it easier. That was brutally difficult. I joked that I'm only twenty five years old and I just aged by two decades over the course of that time. It wasn't difficult because anybody didn't want it to happen. It was just difficult to do. It was difficult to find a solution that could work for the regulatory tax and other jurisdictional considerations the bespoke bylaws that this group has or that group has fortunately we had really involved people and I think it's starting a partnership like this is going back to where we started our conversation with my academic background. You know it's a little bit like riding a PhD thesis. If you're not super into it when you get started you probably not gonNa Finish and we were super into it. We wanted to do this to to be kind of standard bearer for a new type of institution that was owned by by capital. I'M NOT GONNA say. Capital of the World Unite. You have nothing to lose metro chains but there was a real to to do something innovative that would benefit pensions and sovereigns who are in frankly. Tragic circumstances in terms of shortfalls. This is an experiment which is going well. So far in terms of a new model. That could work one. We hope among many but if I had to say whether I think there will be many followers I think the answer is probably not because it's so hard to do now because it's not a good idea. Just put some color on that. You mentioned weekly face to face meetings. How much time did you spend so we still meet all the time? I mean not just once a quarter for our strategic committee meetings or every other week on a phone call but just catches catch can and In cities all over the world and up and down our respective organizations and now with our managers eventually there may be technology that helps us connect capital and opportunity and more efficient ways. But for now. There's no substitute for shoe leather. So we are on the road a lot actually making the human connections down in some cases all the way to a deal opportunity not just to a manager and not just to the C. Suite of the asset owners but up and down the masthead. So you know we got together as I think I mentioned in places like New Zealand Tokyo Amsterdam The Hague Stockholm London. La San Francisco New York all because we might have been looking at deal. There was some event there that we wanted to go to or just because we had to get together so we decided to get on planes and I think any entrepreneur will tell you that they feel lucky because they they happen to kind of hit the straightaway on the the Daytona five hundred. Just when their car was humming and they could make great progress for us. It was this incredible alignment of smart people. And I've mentioned their names. But Russ and Paul and Steve and Angela and others who were at a moment in their careers where they could do. This wanted to do this often for no personal gain economically but for their institutions and took that kind of Herculean effort to get their fantastic Daniel. Before I let you go. Let's turn to some closing questions. What's your favorite hobby? Your activity outside of work and family. I play the cello. I grew up performing and Actually went to the school of music at Yale. In addition to Undergrad a lot of my friends have gone on to be professional musicians and I both envy them and don't envy them because it's a really tough life but they get to be surrounded by incredible art all day long. I don't play as much anymore but my boys are five and six and our oldest is starting to get into music so whether it's something like the star wars theme or the Harry Potter theme where she plays the piano and we're starting to play together. That's great you mentioned it. Investment pet peeve. What's your biggest overall pet peeve? I hate the kind of tribalism that leads to so naturally and quickly for people to me versus you mentality. We see it in politics. We see it in global politics with bridges between countries directly being. Burned down these days and going to your questions about positive sum game versus zero sum. It just frustrates me. That for whatever reason human seemed hardwired to create clans and and find success in a narrow way and this is the problem of our generation is how to think globally. And it's a pet peeve in it it feeds into investment pet peeves too because people tend to think. Well I WANNA pick the best stock or I want to pick the best deal as against taking who should I partner with because the latter question implies that you're trusting and relying on somebody else in a way that people are often not comfortable? How do you use social media professionally? This will be our first attempt to do that so not well the short answer. We've been like a lot of folks skittish about social media but I think we will make careful calculated attempt to share our message that said the nature of our business is not one where we need to connect with a wide audience. We don't view ourselves as influencers on fashion or vacation destinations. So I'd say we've used conferences and individual networks much more than social media. What do you do for self growth? You know. I read a lot? Nothing that you wouldn't hear from a lot of folks try to exercise. Spend TIME WITH FAMILY BE OUTDOORS. Soak up the sun enjoy natural beauty. But I've always been a voracious reader. It just coming from the family that I do and mostly nonfiction. What teaching from your parents as most stayed with you so I describe my folk? Says academics academics. I mean these are as a history professor and developmental psychologist which is always a good line for joke which avoid here but what comes with that is love of the life of the mind so growing up. We weren't focused on wealth but things were stable. They had lifetime tenure at their universities. And that just that combination. Let us travel through ideas and that's been a great contribution. I think that together with the kind of training that got in philosophy and law. School and Undergrad. Led to a kind of contrarian thinking not so much in the way that you would use it with investments if everyone else's viewing one thing. I'M GONNA go the opposite which it can be very valuable that I'm not so much built that way. But I am contrarian and thinking about structure I don't accept the false distinctions like LPN GP for example as somehow set in stone. And that comes from my folks. Yeah all right Daniel last one. What Life Lessons? Have you learned that you wish you knew a lot earlier in your life? If I could send a message in a bottle back to me at twenty eight I think I would say have kids earlier. First of all it's just great joy in life to have a family but more than that brings you out of yourself and so much of trying to accomplish. Things is not actually about yourself and the sooner you realize that in life I think ironically the more successful you can become great Daniel. Thanks so much. It's been a pleasure. Thanks for listening to this episode. I hope you've found a nugget or two to take away and apply in your best thing and your life. If you'd like what you heard. Please tell a friend and maybe even write a review on I. Tubes you'll help others discover the show and I thank you for it. Have a good one and see annexed.

Constellation GP partner Gp Kuwait Investment Authority Alaska Kuwait Paul Bishop New Zealand Wofford Wa Daniel McKinsey and Company Sweden Alaska Permanent Fund Lehman Juneau New York
Beyonce signs with Adidas, Coronas owner pops 7% for quitting wine, and why Tesla fell 9%

Snacks Daily

13:16 min | 1 year ago

Beyonce signs with Adidas, Coronas owner pops 7% for quitting wine, and why Tesla fell 9%

"The. This jet this tax daily. It is Friday the fifth which rolls off the tongue, and we have whipped up the best snacks daily ever stocks rose for their six day in a row for the same reason as last couple of days doesn't stop for autographs between the United States and China and the trade talks rate catering. That's what gets that done. Now, we have three wonderful stories. We whipped up the American parent company of corona constellation brands. It's ditching it's cheap wine in favor of expensive stock rose. And it's basically, thanks to three trends, you are probably causing. And then tesla surprise surprise. The stock has no chill on critical quarterly report and Alon musk showed up physically in person to court for his tweets. Third and final story. Adidas stop. What you're doing? Sit down just signed beyond say calls a beehive of partner. Call the beehive, by the way, this means big things for the future fashion markets knackers. We have some breaking issues we want to quit. Share before the this is something to listen to Bloomberg is reporting that Amazon is making a rival to Apple's air pods. It's going to be a quipped with Alexa. And that got Nick and me thinking, it's so lane all these virtual systems, only have female voice, and makes no sense. We jumped into next I'll classic snack style. Turns out that Siri actually comes in a bunch of like, what would you call it Anglo English voices different English accent? If the Queen or the Commonwealth was involved in the country. There is a seri- voice accent for this is a gem. I can't believe all iphone owners need to know that I had no idea we're gonna play a couple of the options that you have of sleaze with these. We'll start off with British male. I'm seri- system. Idea that was happening. Sounds like a move again to Australian female Siri, you'll vitual assist you catch the gist credible. There's also Irish and South Africa. How do we not know about again, the whole Commonwealth representing the more you now now before we hit the rest of snacks daily. Listen up to this key announcement. We gotta get out the way. Hamre food is candy. They don't reflect the views family, just so get out. Out recommending any securities. It's not a research report or investment advice. Digestible business. Financial LLC member. PC four our first story corona owner constellation brands jumped seven percent yesterday. And the company was highlighting beer sales. Not wine sale beer sales jumped for constellation brands by nine percent last quarter. Not too bad. Not too bad. But we like one particular thing, they're celebrating. Incredible. We jumped into the earnings or broaden, we found this jam company highlighted their one hundred fifty million beer case mile shipped out. This is Capicik style beer celebration. Right wedge master CEO announced that one why not on the other hand. They were morning winds. It wasn't pretty wind. Sales dropped by eight percent. Now, the third leg of the stool barstool at constellation doctorate is liquor liquors doing fine. We're going to focus right now on wine and beer. And when we're talking about wine, we gotta talk about the wine sale of the century. This was like clearance dot happened Wednesday night constellation sold off its entire vineyard wine cellar portfolio of cheap wine. We're talking if you're a. Label under eleven dollars. Even if you've got a great design label, you were sold off all that. Trader Joe's stuff is gone done to shift wine at constellation is gone because that's actually a tough market right now. So it sold those winds for much less than it was it sold them for one point seven billion dollars. It was hoping to sell them for three billion dollars. But constellation is keeping high end aged very nice soft -able was stuff that you need like obscure adjectives for so three key trends here that are basically driven by our generation that caused all this dictating constellations business model the first consumers are drinking less, Nick. There will always be social pressure to drink. But there's a lot of sober curious people out there, exactly. And then trend number two when people are opting to drink their drinking, the fancier stuff, so the drinking less, but they're spending more exactly and then third and final. There is a fast growing category of non alcoholic and low calorie beverages. That's what people are interested in when they're outside. Socially? So jack. What's the takeaway for corona crushing constellation constellation is a pivot master when trends change it? Pivots fast and constellations quickly refocused from wine to beer, this company is as nimble as a cat. Okay. We just mentioned drinking less and lower calorie trend next year, corona is unveiling corona refresh ska which is the first non beer seltzer corona option. That's like if you mix together all those three trends, let it ferment sit and just turn into a new. I gotta share another gym with this knack community which Jack loved Ronan. Go Rona is pretty much if not completely gluten you wouldn't expect it Jack loves secret. Now, this means that constellation is pivoting away from wine and really focusing on beer because it's going to spend more on corona and Modell and another pivot cannabis is the big thing Coronas parent company. Constellation now owned thirty eight percent of canopy growth canvas. For our second story. Tesla just had a really bad day. And the stock fell eight percent, but it's also classic tesla. Classic tests. I oughta motive one oh one, please. Our companies have to quarterly reports in lightness. I is a few days after the quarter which was yesterday is the production report and the profit report the earnings report only comes in like a few weeks, which one's more fun without on a Sunday. I go production all the question. It's both. So we just learned late Wednesday that tesla produced seventy seven thousand cars, but only sold sixty three thousand cars last corner. A little bit of math there and we whipped out like a TI eighty three. And did it that means fourteen thousand extra cars exist that weren't sold? Like where are they? It's actually interesting where they are. We'll get to that. And we can't wait now when we looked at the numbers a little more. Here's the other interesting thing there were fewer model threes sold than the previous quarter fewer model S's fewer model Xs all tesla cars had fewer sales, which means there's probably some concerns here about demand and interest Intesa cars, and that's why stock fell by eight percent, which is really bad. But it's like kinda just another Thursday protested tesla being tesla over here. Now when we jumped into this report. Here's the interesting thing. The I sixty words were about results. It wasn't until word sixty one that they started with the excuses. So here's excuse number one the first quarter of two thousand nine. Was the first time they were selling the affordable model three to Europe and China. So it takes a lot of time to ship a car their cars can't drive there. And that's actually where those fourteen thousand cars there on ships on the way across the ocean. Now, the second key excuse here is that the government subsidy for electric cars, so making it easier and cheaper feta bind electric car just got cut in half. Yeah. So it's tougher for the third excuse tesla didn't say this at all. No. But this is a snack originally this original there's cannibalisation model three is the new cheaper car, and it's eating into sales of the more expensive car. So buyers are basically saying why am I going by an asteroid acts when I can buy this one instead and this one the model three is like just as good. So Jack, what's the takeaway for our buddy LAN and the team at tesla? Tesla stock has zero chill every quarter. Feels like the biggest quarter of Tesla's life in the most crucial thing ever. And that's because investors either hate or are completely obsessed with tesla. So. Fans, they think it'll be like the only car company of the future to ever exist and Elon Musk should run a religion. And as a genius and haters think tesla is about to run out of money. It's about to go bankrupt. And that musk is insane. Just as an example simultaneously yesterday. When this report came out musk was literally in court dealing with issues around his tweets like ego packed tweets. Each time a quarterly report like this comes out. There's a vote is musk genius. Or is he insane. And the stock reflects it. Oh and full disclosure. This is Jack and I own some tesla shares through our third and final story. It's irreplaceable. Adidas just signed beyond say as its creative partner. Yeah. This is a big sign for the future of Atlantic apparel. It's huge big deal. There was a halo cast on data shares because beyond say up one point three percent yesterday. And this is perfect timing. Because just good just last month. Adidas warned investors. They weren't thrilled to. But that two thousand nineteen sales will be lower than two thousand eighteen we got it back up for a second to talk about the first lady of everything. Beyond say launched IB park, her own active where brand with top shop British based company in two thousand sixteen. Now, if you haven't worn or seen it we're talking like twenty five dollars tanks or like three hundred dollar bodysuits. This isn't your typical athletes if you wear this at the gym, you you will get looks. They're more like walking billboards, the words Ivy and park were blasted on these we're talking like triple larged extra sized mesh jerseys. It was more about looks than performance. Exactly. It's beyond as part of a Dita's will design a little more athletic in mind with parks. Now what we thought was interesting was beyond say's quote here on the partnership. Yes. This is posted right on beyond say dot com slash Ivy park. This is the partnership of a lifetime beyond says, it puts creativity growth and social responsibility at the forefront of the biz and beyond say still owns Ivy park completely. She's not selling to a it's just a partnership now, it's time for the take. But this is like a big takeaway. Yeah. So we would suggest sitting down pulling up something nice to eat. There is a transformation from athletic two athletes in these companies, and it's shown in the endorsement Vladic retailers aren't signing athletes at the same pace, they used to be no instead, they're signing. Celebrities all goes back to riana in twenty fourteen. She signed a creative partnership with Puma, and it's just blown up since then who did Puma sign recently beyond as hell B J Z, which is kind of awkward because Puma and the Dita's are archrivals based in the same small town in Germany started by brothers who hated each other in the forties. Yes, now for wral Carly Kloss Konya beyond say, they've all signed with Adidas under armor. They've got a bunch of non athletes to you got Giselle as apparati and Dwayne Johnson. Aka the rock Nike has got to pick up its game in this is still pretty much athlete. Only Nike has a requirement that your blood pressure. Look all of. Athletic apparels clothes. It's not about performance and competition as much as it's about just looking good and brunch. It's a little less at a little more leisure. Just no longer technical apparel. Jack, one are you with the takeaways for us constellation is a pivot master chasing your drinking habit, and I'm gonna officially keep track. Every time Jack reminds us that Coronas gluten-free everyday Tesla's stock just tipped negative because the latest earnings report, and it's just another day for test. And finally Adidas is transforming and we see it in the celebrity endorse less more leisure. All right time for our snack fact of the day, Jack drops numbers net. Flex the Silicon Valley. Based tech company has one hundred thousand movies and TV shows available. If you're willing to wait for the DVD, that's way, more than the six thousand elbow for streaming. And you're probably wondering who's waiting for the DVD like a lot of people two point seven million Americans. Still subscribed to DVD service through the mountain, and we're not talking like the middle of nowhere with no internet access net. Fix claims. These are people living in the bay area and the east coast. It's a bold claim it's natural. Now, a couple of other great stories we're covering in our snacks newsletter. You gotta check snap just announce something new which badly needs a bit Mogi based game. You can plans nap in the Amazon story. Everyone was waiting on. Jeff Bezos and his wife have finalized her divorce, and he is keeping seventy five percent of their stock and voting control of her shares. You have one hundred percent love of our shares. We love you guys. Thank you for listening. Have a great weekend. We can't wait to talk to you Monday. The Robin Hood snacks podcast. You just heard reflects the opinions of only the hosts who are associated persons of robinhood, financial LLC and does not reflect the views of robinhood markets Inc or any of its subsidiaries or affiliates. The podcast is for informational purposes. Only is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood, financial LLC, member FINRA as IPC.

Tesla Jack Constellation constellation brands Adidas corona constellation brands Alon musk Amazon Nick financial LLC tesla corona Alexa China Siri United States Robin Hood partner Apple South Africa
Mad Money w/Jim Cramer 01/09/19

MAD MONEY W/ JIM CRAMER

45:00 min | 2 years ago

Mad Money w/Jim Cramer 01/09/19

"This podcast is brought to you by TD Ameritrade when it comes to investing education, one size doesn't fit all TD Ameritrade helps you learn. Whether you're just starting out or an elite trader choose from articles, videos, webcast and more. Visit TD Ameritrade dot com slash education, member SIPC. My mission is simple to make you money on here to level the playing field, all investors. There's always more work at summer. And I promised help you find it may have money starts now. Hey, Kramer, welcome to a very special. San Francisco addition of mad money. Welcome to Kramer, are the people and make friends of just trying to make some money. My job not just entertain educate. Teach. So call me at one eight hundred seven for three CBC or tweet me at Jim Cramer. He can't wait for all clear side when you think a troubled business is ready to turn around you need to buy stock before the bad news comes on before. And that's the takeaway from today's fantastic action with down getting onto points be point four one percent. But the NASDAQ jumped point eight seven percent, it's good instructive. Take away. The must be put in context for you to understand and profit from the best example, look at the semiconductor stocks. We've seen a remarkable reversal in this leadership group semi's lettuce down last quarter. And now, I think they have the Bill is higher this quarter. Although a lot of people might find that hard to believe. The Lynch put it a Centaur move is Micron the commodity chipmaker this morning all week. Thanks to a pair of upgrades. One Monday in another day with a common theme. You can't wait for the price of de Rams. That's microbes main product to bottom yet to get in ahead of the bottom these analysts been upgrading. They are. Absolutely, right. The stock market is a four kissed machine tends to look out about six months. People buying Macron handover frisked here because they expect the company being a better place in the second half of the year big sense to me, especially since microns currently selling for just we're point four times earnings. They get the cheapest doc in the S and P five hundred you heard me that cheapest stock in the book, there's one problem before we get to the second hand we need to play through the first half and microns next quarter is going to be ugly. How ugly earning slash ugly. Lease buyers really be able to pass that went Micron reports in late March had they steal themselves for some severe number cuts. They're going to get. Or will they panic stopping this entire rallies firms? That's the dilemma, and I think it's a perfect allegory for the broader stock market. So let's teach what first of all why did my crank it obliterated in the first place supply and demand. Specifically a ton of new supply coupled with lack of demand they Mike d-rams and its flash memory chips as the basic building blocks of the new Konami, just like paper and chemical. So the basic building blocks of the old Konami. The new economy was already in the doldrums before fed chief Jay pal came out in early October and promise four more rate hikes. Those contact is in accelerate sending the whole tech sector into a tailspin. Plus, the intensification of the trade war with China, shoot it. Nope. That making matters worse demands seem to peak just when lots of new supply was coming online for some flash. It's relatively easy for Micron and its competitors chiefly its competitors to build new factories, and whenever that happens pricing tends to get crushed. That's why when my karma Puerto last month the company had to slash its forecast telling us that inventories. We're not we're not leave not in balance that the David Morgan had gone from tight tug fluff used to say the stock did not react. Well, so why the heck is it rebounding? Like crazy when a few weeks later management just told us businesses awful, aren't these Bush, and what's jumping the gun. Sure. If you're only thinking about the next quarter. But like I told you before this rally is about a turn in the second half. If you believe the trade war will simmer down. If you bleep fed chief Jay Powell hold off on raising interest rates that will make decisions based on the actual data. Like he told us this week. Then the worldwide economic expansion can. Start and basic building blocks like microns chips can make a comeback in pricing. It's definitely not gun jumping. If you listen to what Sanjay Marotta Micron CEO told CNBC's own John fort this morning at the Consumer Electronics Show in Las Vegas. Smartphone, June it demand just stepping. But what's important to understand is that the content within the smartphones amount of memory amount of flesh students that is needed actually continues to go up because of multiple cameras because of air driven features in the phones. So yes, I mean near-term some challenges Micron continues to execute well on its plans, and we do expect demand environment. Improve in the second half of twenty nine hundred. What a great interview. And that's exactly what we want to hear the pin action from Micron has the entire co- or get this last night, scoured solutions chip make worth a lot of cellphone exposure pre-announced a big shortfall yet. It stocked rallied. Nearly four percent today yet another illustration that you can't wait for a turn. You have to buy ahead of time. That franchise is totally intact. How about broadcom exploited hire more than four percent? What did I tell you about hot can't he's money, then there's Invidia this? Former market darling has been cutting cath, thanks to an immature graphics cooked accords. What's form of chip which are also used for crypto currency mining? Remember Invidia couldn't really figure out whether customers were using its chips for gaming we're for crypto mining turns out the crypto exposure was larger than anyone expected fair enough. But that extra cemetery is being worked off too. So the stock is bouncing jersey yesterday and analysts put out a note and the note to argue that you would be gun jumping ahead of a bad quarter. If you buy Invidia now that costs a one day so off now the bars right fat betting. You can't wait for all clear. Sign from Jensen Wong and videos visionary CEO head by the time. We know for sure that businesses turn you have missed the move. I like Invidia here the company just cut prices. I knew touring line of chips. One reason I leave their doctrine we far more rapid than Wall Street expects plus inventing never lost its hold on Thomas driving machine learning data center. This strengthen those areas has just been obscured by the crypto collapse or how about one of my theories Lamour search Hiller exits Dr capital equipment play lambs machines helped manufacture all these chips. That are currently in glut. This stock always always always bottoms well before matching tells us that your from weakest now, I don't expect this quarter to be anything to write home about. Right. They're going to say things aren't so good. But that doesn't matter and that's why the surge plus by two percent today because the current quarter seems odd, but it's not it's what you have to do to get ahead of next year's numbers. Again, this move is all about anticipation, or as Tim curry put it in raw walkie our pension show anticipate. Patient. Now, these semiconductor names are microcosm for the rest of the market. They're not alone. Many copies of linked Glen this quarters bad. But it'll be good next year. I've been pretty bought them the housing stock number since tau put the guy boss on vast swath of the economy in October shoot up this morning, the largest home builder in America Lenore reporter shortfall yet. It stock ended up rocketing. Eight percent what is that about? Let's because in the conference call chairman, Stuart Miller said that traffic rates have improved since the peak in interest rates CJ. This is what I'm talking about housing accounts for ten percent of the economy, but it puts his well above its weight. If it's improving that is very good news for the US economy. And I want to let it happen. I'm sure some of you are thinking, wait a second. Jim Bo, we've just had a fabulous jobs number. How the heck should we even be thinking about our recovery? When economies barely begun to slow down. It's more complicated than that. It's more complicated than just employment during the fourth quarter with so real breakdown in many different parts of the economy and even before then housing and orders for rolling over. I think the fed it has cooled things jus-. Just enough that they can afford to take a breather. When it comes to more rate hikes member favored the last night. But now they breather which gives all these stocks more room to rally, but one if you wait for iron clad proof that a troubled business has turned itself around you'll miss most of the upside from that turn that's why these remarkable rallies and stocks like Macron makes sense to me here and the next time stocks drop, I'm you should think about this group. It's bottomed and the rally it's just beginning. Let's take calls. I wanna start with how MARCY in New Jersey. Marcy, Jim, thank you for taking my call. So I watched you and Larry cudlow faithfully, and I made some good profits. So on your loyal fan. There you go. That. My question is simple. Jim what is your forecast for Boeing considering its recent precipitous drop get yesterday delivered eight hundred six planes will it stock rise like a rocket ship? If there's a deal with China or their other variables to consider before adding more to my position in bowling MARCY. The weights in the Chinese to be able to come to the peace table and get things rolling used to say, you know, what we are quarter of Boeing's planes. That is true. And we went double the number of planes. They need that would be the signal. I say. And by by to the greatest manufacturer in America Bowie may I speak to Nancy in Oregon, Nancy. I love your show. Thank you. The the question. I have today is on Altria with ultra cigarette. Volumes Jones their big investment move with Cronos marijuana company. They're divided loyalties. With Philip Morris over easy and the IQ us electric, cigarette. Do you think they are by or not in one? No, I think you should be buying constellation brands which owns a force. Superior Crohn's is a good company. It's number two to number one. Okay. Which is canopy. I think you wanna own canopy through constellation now that stock is clean cut by so much. And you're getting canopy for free. Wow. How about these viewers members me from Kudlow and Kramer? Those are ancient and then Oregon where might go on lives. Today's theme is you have to buy ahead of the bad news. You can't wait for the all clear case in point the semi's. Oh, man tonight. Today's drop and constellations Z me you needing drink. But I'll find out at the decline in corona Medella was a red flag or a buying opportunity. Then with news it. Apples reportedly cutting production by ten percent, really scary as the sun set on the greatest bowl creator of any company on breaking down the latest athlete to my interview last night and camping is surging today, but it could deliver a lasting hot. But we got to check in with the CEO stay with Kramer. Don't miss a second of that money. Follow at Jim Cramer on Twitter. I have a question. Tweet Gramer hashtag mad tweaks sin Jimmy mill to mad money at CNBC dot com or give us a call at one eight hundred seven four three CNBC miss something Ed to med money. Dutt CNBC dot com. Do you love? Bravo. So do I I'm Megan cigarroa, host of the daily dish Bravo's official podcast in each episode. I'm breaking down the biggest moments of the show. Plus, I interview the Bravo labs at the center of the drama. Subscribe and listen free on your favorite podcast app. Okay. What the heck just happened to the stock of constellation brands as easy this Kramer Fe boost company. Best known for selling krona Modesto here in the US. They also have a bunch of wine liquor band. So it stuck it obliterated. Take down more than twelve percent. Lake of foot. Everybody pant disappointing quarter. Well, customization sales reach both came in higher than expected. There were some real hair on the results from Morgan Rosen, beer, business disappointing vibes, and wine and spirits. But really the stock was the guidance matching slash full year earnings forecast from nine dollars and sixty cents to nine seventy five per share down nine twenty nine thirty. I can say Ouch. We've got to get to the bottom of this. As constellation stock is come down thirty four percent from its highs this October these levels babies to keep doing nor do not take it from me we need to dig deeper. So let's check in with rob Sanz, the outgoing CEO of constellation brands and Bill new ones is the president chief operating officer who takes over CO in March, Mr. Sanders. Nunes, welcome back to make money. Thanks. Okay. Rob. We're gonna come. You first magnitude of the Kline an overreaction, given the fact that you still made the quarter. Yeah. I think it's a total over-reaction number one. The quarter was a great quarter. I would say the total reaction is to change in our guidance was which was really from nine thirty five to nine fifty. We changed the guidance to nine twenty two nine thirty. So the guidance that you quoted included twenty five cents, which we had said a long needed to be deducted from the guidance. But but that said it's totally a function of the change in our guidance and the change of our guidance is also totally a function of I would say a disappointing or are an -ticipant, adding a disappointing year on the wine and spirits side. And I think even more specifically, okay where the disappointment is is in the low end of our wind business, and that's our portfolio of wines. That are under a. Eleven dollars, basically, which that segment of the wine industry is performing very poorly. It's something that we identified actually several months ago, and we said that we were pursuing strategic alternatives for that segment of our business. And in fact, we are and expect to come to some conclusions relative to that in the near future. So I guess I would just conclude by saying that the business the growth even the margins are one hundred percent intact, except for as I said some disappointment in the low end of the wind business. We did have a little bit of margin dilution on the beer side, which was really due to a one time expense in the third quarter and other than that we're expecting margins to remain flattish at at at the very high level of roughly thirty nine percent. Okay. Well, it'd be a Bill Bill in the conference. Call Pablos wanna who happened to be on CNBC earlier today. He's talking about in beer, corona extra court brand down about ten percent. Colonel light Dan about twenty percent Madala a special cannibalized from familiar. I mean this man came on air, basically and said, listen, it's not just wine and spirits. It's actually beer and beer starting to turn into the beer company that other beer copies or can you? Give us a little more perspective because you're growing a lot faster than the other beer companies. We certainly are Jim when you look at our beer business are year to date depletion are up nine percent. And as we said on the call our December depletion 's which represents sixty percent of the coming quarter are actually up higher than that amount. So we're very pleased about our beer business. You know, one of the things he was alluding to is the introduction of premier which has gone exponentially. Better than anyone intimidated, we've done roughly twice the amount of premier than we had expected to do and that has certainly had some attachment to our other beer portfolio. But when you think about the fact that the corona brand franchise is up eight percent depletion Jere today. We've got an extremely strong brand family. Well, he also looted to what I wrote down the term because I know the kind of cash flow, you have he says, listen, you gotta worry about balance-sheet rifts Bill. I don't know. I mean when I seen the amount of money to throw off I'm not concerned. But maybe you could address it. Well, what are the things we also announced today? Jim was the fact that over the next three years, we're going to return four and a half billion dollars to shareholders in the form of either dividends or share repurchases. This is on top of any any of the exercise of the warrants that we have in canopy. So this remains a strong cash generation business and one that frankly, I don't understand that question. We're in a great position we continue to be in a great position and the strength of our beer business is going to continue to have us in a great position going forward. And we added Jim that we were we added to that that we would also get back into our target debt to EBay range of a three point five to four zero. While we were returning the four point five billion to shareholders and on the assumption that we exercise the canopy warrants. So I mean, I would say neither Bill nor I understand. Exactly what Pablo was saying in that regard. Right. Fair to rob. Look we the elephant in the room actually a positive elephant. I think have canfield tonight. You can't be stopped this up. Huge the numbers. There are extraordinary. You have bought in at a great level. Should we start thinking about the let's say the the growth of canopy and stop worrying about this low in spirits, where maybe people are just trying to get high from low end spirits, and you've got both bases covered. Well, I think two things. Okay. We do think that the the health of the base business. And in particular, the beer businesses is critical. And I think the good news. There is that it's extremely healthy with as Bill said nine percent growth year to date and even going into December double digit depletion growth. So we're very confident about the beer business. And where that's heading. There's there's literally no change there. As far as cannabis goes. I mean, I think it's all a good news story. I mean, there's there's there's been a lot of I would say negative press and Hiber Purba -ly about it. But the truth of the matter is is the Canadian government has just come out and said that the run rate currently is roughly six billion dollars, which is exactly what we said that it would be we have a roughly twenty to thirty percent share of that. And we're anticipating the canopy is going to be a billion dollar in revenue business in the next twelve to eighteen months, and in addition to that. Okay. We said and we still stick by this. Because as I said, there's no change the news is actually getting even better that the canopy deal would be accretive by twenty twenty one. So. I think we've got all the bases covered. Tidy honest truth and the one source spot in the business, the low end wind business, I can assure you that that that issue will be dealt with. And in fact, we were already as I said pursuing strategic alternatives relative to that even before this quarter. So I'd say way oversold the stock is an absolutely fantastic value. In fact, my brother, and I acquired one million shares in the last week or so. Well, there you go a million shares of their mouth. Billion not a million dollars. Jim a million shares actually one point one. Oh, there you go. That is the most statement by that's ever come on man bunny. Rob sans, the outgoing CEO constellation brands Bill new ones, the president keep operating officer who takes over CEO in March more than a million share by what can I say that says more than anything we say on air man monies back after the break. If you do out into the future, and you look back, and you ask the question what was Apple's greatest contribution to mankind? It will be about health. Our business has always been about enriching people's lives, and as we've gotten into healthcare more and more through the watch in through other things that we created with research kit and care kit in putting your medical records on the iphone. This is a huge deal. That was yesterday. How do we evaluate a stock? Like apple today. Do we judge it for what it is? Now, a tech hardware company that we just learned maybe cutting its iphone production by ten percent over the next few months or do we judge apple for what it could become based on the strength of its ecosystem just show walked away from my interview with apple CEO. Tim cook firmly convinced that this is worth owning down here at eleven times. Next year's earnings because the story is much bigger than the company has credit for but the stock has come down dramatically from its highs in the slow drip of bad news continues. So is it possible that I'm just digging in my heels in her name that simply doesn't have what it takes anymore. Am I holding onto apple like an old lovey blankie that gave me comfort owed for so long? No, I'm gonna tell you what I heard about the ten percent cut to the cell phone. Where's this morning? The only thing analysts seem to care about is the iphone accounts from within sixty percent of its sales. Even though it was actually old news and cops my apples preannouncing already. I think that apple stock with open down down at some point, regardless of what Tim cook told us last night. That's. Exactly what happened initially for dramatic turn to fifty cent increase by the close. Then a few minutes after that ten percent cut story broke this morning. You know, what happened us watching squawk in the medical expert came on? Yeah. Kind of Dr Paul Freedman. He's the head of cardiovascular medicine at the mayo clinic smart, play smart guy. It talked about how they're using artificial intelligence to predict heart failure by reading a patient's electrocardiogram EKG, this technology. He said could save millions of watts, but how do you get that EKG? Well, you could go to your doctor request one kind of a hassle or Dr Friedman said you can get a smart watch with an EKG app, and that right there within the span of ten minutes is why apple such a conundrum if you want an EKG apple watch is better than going to the doctor's office because you're constantly wary. It's a much more accurate than you would if you just come in fresh to the doctor yet the apple watch combined. With the mayo clinic neural network could potentially save seven million laws. That's number. Dr Friedman said could be at risk for heart failure in this country. Need to set up that handshake keep talking about? So apple can pass along your EKG results to the right person in the medical system. Why doesn't the handshake exist right now? We're on question. We shouldn't be asking. When as in when it happens and this rolls out. It's not like they're seven million Americans who should go by the watch. There are three hundred eighteen million Americans who should get tested. If it makes sure that they don't have it. And that means if you do that you got to buy the watch. And if you buy the watch, of course, you gotta buy the phone if you buy the phone, then you're part of the ecosystem there are roughly one point four billion people worldwide who can avail themselves of all these incredible services that ecosystem offers and by Vail themselves. I mean pay apple for the privilege. Of course. I don't expect this story. We'll move this DACA. I'm not right now. Not ninety minute comes to you get that handshake to connect. The watched mayo clinic's neural network in something like that. And I bet that bruises some positive headlines, which could potentially change the era of until then though, the stock will. In every little data point that gives us some insight into the iphone hardware sales. The thing is it's not just about the usefulness of the apple watches he g app for this one program. At the mayo clinic, that's one example, I happen to see on television. Just this morning. There are tons of other uses put them all together. And you get the bountiful service revenue stream that I keep telling you about the one that gives apple razor razor blade business model, but as long as I phones make up more than sixty percent of apple sales, Wall Street will only care about the razors, not the razor blades, that's wrong. But that's why spectacle, sokoll stay marred at this level either. Until the phone biz picks up again or the service is gross to the point where it can no longer be ignored except as I said at the top of the show, you won't be paying one hundred fifty bucks for this stock when that happens we pay well in excess of these levels when the services revenues funding crossover to be the main thing we talk about when we talk about apple. Oh, other than the number of lives that the company will have saved. Let's take calls. Let's go to Anthony in Florida. Anthony big day. Fled a in that I'm in San Francisco. Good to talk to you. You get to talk to you. My question is about the of with the new Jeeva out. How do you expect that to benefit? Because I think that they just simply can't execute one five G I'm gonna give me one that's incredibly cheap and now battle-tested because of an estimate cut this morning sky works solutions. That's right. Skyward solutions is the way to play five G it's been dearest because it just pre-announced bit numbers and the stock went up anyway, the sun is not say on apple, unfortunately, though, the truth. Does it matter? You orders control the stock for now much money exclusive with a red hot one up twelve percent. Canopy growed we've heard constellation brands discusses partnership with the candidates company. But how you feel I got exclusive then decks comes sort of a one hundred percent in two thousand eighteen alone. Could move continues in the new year on talking with the CEO and your calls rapid fire tonight. Tradition round. So stay with Kramer. Earlier in the show. We talked to rob Sanz, the outgoing constellation brands suppose, incoming CEO Bill Nunes about their relationship with beer, and of course, cannabis now constellation stock got think badly on a trim forecast. But at this price, you know, what you're getting their forty percent stake in the number one Canada's company in the world by market share. Kennedy quoth pretty much for free. No what no wonder rod just put more than a million shares. Look the best of green marijuana outfit known for both medicinal and recreational cannabis is on track to hit its billion dollar revenue. Run rate target within eighteen months, and it's entering into the red hot CBD market here in the US something that was just legalized by less by the form. But last month what last night we had a chance to sit down with Bruce Linton. He's the co founder chairman CEO of canopy, growth Corp, take a look. Bruce. It's happened the JP Morgan healthier conference the most important healthier coverage in the world, and they invited you and canopy how come well. I don't know. I think when you get four billion, maybe your I q and looks go up. But really that was kind of a big breakthrough in August. Because it said Morgan Stanley advised. Constellation and Goldman Sachs was around and sure Goldman Sachs advise Morgan Stanley's around JP made sense. And last year. I wanted to come this event. We were not welcome. You weren't well now because you know, what is this marijuana come from Canada? But now are dance card has been chockablock because everybody who's in pharma who is sort of indifferent plays or saying, well, what are you doing about pain? Where do you play into things like mood where do you fit on the whole neurological disorder spectrum? What's a sleep, Charlie? You have oh, you have an animal products said that you're trialing now too. And so there's a little bit of disruption for a lot of players, even though it was constellation which you knows Medella and crony game the money you've been really deeply deeply connected with the Illitch will property that is needed to do real medicine. Yeah. Because at the end of the day, the best recreational products are going to be informed by science and science if done properly should turn into protectable IP, Ryan. So we filed about one hundred and forty patents. We file US. I and now we're diligently working away to validate them, but that's the moat. You have to dig if you're actually going to have a preserve future. Now, there's been some backlash. We see some articles that talk about maybe we don't know that much. Let's just go down. And you tell me about what cannabis can do versus what we're taking traditionally sleep traditional. I'm always worried addictive you. How about you? Yeah. So. The way we looked at. It was we ask our patients so think about eighty-five one hundred thousand patients we have information. So we can ask them. We can say why do you buy cannabis? What ailment what frequency do you dose with which ones what time of day? And so what we try to do is go after like what are called orphan drugs. While indication we said, no, we're going right up the middle. And so let's pick with the plant dies. Let's take the plan apart recent assize, it put it into a mechanism of delivery and say people buy for sleep. And what they you know, who can't sleep you and me, you know, why it's called. Well, you it's because you work all the time. But for me, it's called essentially we wake up thinking about work and you have in your sleep. So we can work on that. It's a huge segment and you look at the incumbent products. Nobody's running around saying I love Ambien. No. And so the opportunity is to disrupt an existing business with a large cohort of people who all have the wealth to pay and what they can't get a good sleep. Now, we also know that these people who'd be me naysayers. How what are they thinking about? Say opioids painted diction opioid versus say what you're offering. So we got a bunch of things around that space. I there's a bunch of indications you probably don't need to be given opioids. So if you or I were going to go off and get hip surgery. I think I would only want a cannabis base first line. Don't put me on the heavy stuff. But if you're going to go on the heavy stuff, why don't alkaloids which create opioids become friends with cannabinoid. So that maybe I can give you a concoction that results in having low rings -iety. So you don't think about the pain and extended the ratio. Reverberations, we do that. And then we've got about a two and a half million dollar academic study on how do we weaned people from opioids using cannabinoid and we're doing that at university of British Columbia. And so there's a whole don't start them. Don't take too many of them. And if you're stuck on them, how do we get off the bus, and I think that that is a very purposeful well-thought-out plan and at the end of the day. I think we're going to be rewarded commercially, and probably society, I think so now you are what I regard as being the expert on this. And therefore, we just got a hint fill in this country pass. What is it noon for canopy? Given the fact that you grow in candidate. You gotta grow in US. Yeah. So we announced we're coming in on the hemp Bill, but people should be very clearly understanding that you can now grow him. But if you extract CBD, which is the primary active ingredient people want out of it. The FDA has not said they've been very clear this is not yet ready for human consumption. And so what we are working on. Is how do we get the data to help make sure that this can be an approved the livered whether it's something you're eating putting on his topical. But the infrastructure to process it is very similar to that that will mean to process cannabis. And so we think it's a really good time to come in take our science moved to finish products whether therefore dog, so they don't have anxiety for geriatrics, but get really ready for the next wave. Now, I would believe that there are a lot of crops that aren't making much money. A lot of farmers going to switch to growing have. It's going to lower the price of him. What does that mean, why think is soon as you get it from hemp it's probably about one one thousands of the price of getting CD from cannabis like one one thousands. So it's going to mean is that unless you actually have a plan to create finished goods, the people stand in line to buy the ingredients aren't the value? But you know, that like how many people get super excited about sugarcane? But there's a lot of stuff we buy with sugar, and that we pay a high price for it. And so I think that you're gonna find with hemp. It could end up being accidents, very disruptive to other things. Like if the cost of the hemp plant is so low what happens to cotton. Where where else does? So I think what people should look at is. There could be all kinds of unintended consequences of hemp becoming the the disruptor to sectors other than just CBD. We're following now. I think that maybe the most exciting thing is when you've taught me that people don't talk about international again. Yeah. I I'm a big and eightieth even be here in San anything because I like people to just stay focused on the US but globally in the fall, you know, Malaysia said we're going to regulate. I so East Asian first Muslim-led country that says this is let's look at Thailand, I think the vote was like three hundred and eighty two zero opposed to it Columbia all through South America. We've got Poland. Now structuring in Italy. Really? If you look at Europe England's on this. Now, the only place is not really playing in Europe is germ areas, France. And so the whole world is coming around to good public policy, the good public policy tends to be largely driven by how the Canadian experiments and so for us if we are going arrive at a country, and what I need to do is change the language in which we educate the doctors, but us all of the same materials that we've used sixty thousand doctor visit in Canada. It's a pretty good job. And so that's going out. Well, I gotta tell you. I, you know, I this is the only one I'm recommending, and I also like constellation. You've got the cash, then you've got the experience as Bruce Linton. He's the chairman CEO canopy, quote, the simplest CG. It is listed on the New York. Dr Seuss code you work. And then. The fact that this about. Bye bye. Social stuck with to remember saying to my Tampa originally. And then the lightning rounds over. Are you ready Steve that it's eight Indiana? Andy. The grammar. I've got a pair. And I love him turtle beach symbol H E A or stock has come down a lot. I think it's actually okay. You know, look at Logitech to that is really gotten hammered. Let's go to Bob in south on Bob. Eight years. Hits and day. One. Need an informed and shipping it. On on my Chevy run. But BP was on the couch touching follow between the actual dot com. Ep announce a billion bow fine. I'm trying to get my Geeta Gillian, the let us get down there. And look at that fine, which apparently not that bar from grand isle. BP as the woman. Six percent you. Let's go to Mike Mike, Mike and Michigan, Mike. Hey, Mike, the motor city love the show for time. Call or we on getting golden paid the eagles. He's going to take you guys to another Super Bowl agreed on my back is CNC seventeen. I'm a novice investor wondering if it's a good time to buy now or do I wait for the best? Foreign spawn one forty eight twenty teen Michael monarchs incredible. I think it is a terrific by I would buy it right here. This one's not going to ban. Soft twice in the goalpost. Let's go to Steven Florida. Steve. Shovel hold CPS. I like CBS let me throw a little curveball here. I think the better by is fire Kahn, which is come down a lot and Bob backers had some very good things to say by two point seven six percent yield down to twenty nine. That's the one by Kevin in my home state of Pennsylvania, Kevin tighten them. And to you at this point to know Churchill Downs incorporated, eight Diene during the stock market. If has been a fabulous stock for multiple years. And I don't think that's going to change. It has ups and downs vicissitudes. But I like it could've Arlene in Illinois orlean. Hi, jim. Liked to know what you think about auto auto zone has got the best buy back of any cutting. You have ever seen slowly methodically pool stock in I've been recommending the stock since the buyback began. This is a great level to buy even up here. Just sixty seventy points from its high a lot of stocks were up. What did since the year began? This one's down. I like that Bill in Florida Bill. Jim happy buoy up for two thousand nineteen. That's our your choice. I'm watching the energy stocks, and they're they're going positive. However, I've taken a position and and link bitch strain, and it's often low payment dividend of well Levin point four. Should I buy sell or hold? Okay. I was with Ben stone, and we've got to be able to dead, and I he's a research rector. We've got to be able to do thing on the end up these which tell you which ones are games, which aren't because he handled peak group is starting to rally here big. It's been the best performing group of the entire markets year beginning let me do some more work planet whether that dividend distributions they call it to Jimmy and New York Jimmy Jin, Jimmy both New York City first time. All right wanted to get your thoughts on gaming TY. Ooh. I like that stock now why because I like gaming companies that are not leaving to China and Boyd gaming certainly as end that plays legit. How might be round is sponsored by TD Ameritrade. Every year the JP Morgan healthcare conference the woman, flew all the way, out sip. Cisco to cover their always a few companies that really stand out because they tell such fantastic stories. So who made it to the winner's circle this year about decks com one of our faves? Here's a company makes continuous glucose monitoring devices. It's essential. You stick on yourself to measure your blood sugar. These things rapidly becoming the standard of care for patients with diabetes because there's so much more convenient and constantly pricking your finger take a manual reading. When dex Cup ended on Monday, the company pre-announce, some fabulous fourth quarter revenue numbers and also issued full your guidance for twenty nineteen they came in. Well, well, well ahead of what the answer looking for businesses could. So it's still wonder the stock rally to spectacular nine percent this week, but can keep climbing. Let's say closer look with Kevin series. The executive chairman presidency of decks con get a better read on what's driving this performance. Mr. say, I welcome back to have money. Thank you. Jim. It's good to be here, sir. I was looking for. I mean, he's numbers are staggering two hundred eighty five million. You think revenues could exceed three hundred. And thirty one million. That's the biggest beat I've come across this year. It's a big beat. And it was a lot of work. But our new g six platform is such a strong and powerful onto the people have spoken. Well, they really want the technology. I think they spoke it because this gate slide is entitled no finger sticks should mean, no finger sticks. Explain that to us our devices as labeled for no finger six and literally what the what the FDA labeling says is if your symptoms are different than what our number displays, you should take a finger sick. Or if you can't see anything on the screen. You should take a finger sick other than that. You can rely on the technology and other technologies have not achieved that goal we have the the the prime position with respect to censor performance in this market. Well, you're changing people's lives, and he met with a lot of companies. And I look a lot comes. You're trying to. Get chronic care for cancer. Most companies are some people are working on a couple of other things involving other parts of the body. This is an epidemic. Oh, I mean, how many people can be screened that might have this that could really benefit from years. I think the big question Jim is how many shouldn't shouldn't be screened anybody when you get to a certain age the risk of type two diabetes or prediabetes is very large. And over time as we move our device into more of an analytics and diagnostic product as technology becomes more disposable and again easier to use it it should be part of every physical. Let's see what's happening with your glucose values. We have Michael coz phase we've been talking about this on my phone today. Ever example, had a very big glucose bike because I was rooting for Alabama and was very upset. So wait a couple of brownies. Jim. It was not a good thing. That was a. There's a slide in your deck g six direct to watch capability IB watch yesterday, we out with Tim cook. I have the watch. I get EKG. I can't imagine a better partnership frankly index common apple it's a very good partnership of our phone users largest portion of our users who use the mobile app, use the iphone in the system. We're now working on architecture to send that signal directly to the watch. So a patient doesn't even have to carry their phone and with the new seller watches with our share capability patients able to share that data with other people just wearing the watch rather than carrying the phone around with him. It's going to be a wonderful applicant. I think that's terrific. But you also have a relationship with Google without the bit with Varley a lot. They were saying well when is this going to develop something it sounds like they've got it a pretty good relationship with you. We have worked very hard. We restructured our agreement earlier this year to make things a little clear, we originally started with a long term plan, and we're following that the ultimate product we expect a lot with them is much smaller than. In the current product. You will have a longer life. It will be disposable. It will also be lower cost. So we'll have more flexibility to go to other markets. We're very excited about it. It's all hands on deck. We've announced too late two thousand twenty launch of this technology initially with the full roll out in two thousand twenty one and we're working hard. How could get smoothness? Electron exchange dramatically over time. We've learned a lot with this, for example, as you look at the size of this product our current product offering there's a transmitter inside of that censor the barely product all the electron IX are built into one unit and went housing with the same collectively the same power the same bluetooth experience that patients have today, and we've been able to shrink this because that's what happens the electron IX world, but why wouldn't it transfer that to to unions? We don't talk enough when my business channel about what lives people say talk too much about per share, your saving some lives children's. We it is the most gratifying place when could ever work. I got a letter from a patient that long ago, a sixth grade patient who had to write about her hero Spencer, the sensor and talked about the glucose sensor that saves her life every single day, and we go to banquets and stuff, and we all get hugs from strangers. We've never met because of the wonderful. Work that our engineers are our team has done in developing this technology and get it out there. It's very gratifying. You were telling me in the elevator in this building. Just in the elevator. Actually, we're we're having our means. But yeah, somebody said you're from tex- com. You've you save my daughter's life. I mean, it's like that all the time. And this technology is just it's what we always envisioned. It would be well, I also want people know what you can get automated Email SMS updates. Parents can get these things to right? I mean, it's you've really figured out the way. I mean, look there's Hooper. Okay. There's Airbnb and then there's decks. We hope so we have a bright bright big future across the number of markets. Not just the market we serve today. Wouldn't I be oh, we think related to diabetes, but we believe glucose as a health sign as well. All twain this product can become a product for prediabetes in a diagnostic eighty million. There's a lot of people that could be screened. That's a lot of sensors to build. Well, they'll keep them remarkable things. And thank you for all the people. I know in the same same thing. Same position say thank you to when you see this. Kevin Sara Lee executive chairman president CEO of decks, which was the winner the best presenter if the whole JP Morgan conference bunch back. I keep thinking and video it's the right level Intel right level AMD. Lisa sue one today, fantastic interview right level, all because they are just now going to reflecting what's going to happen later in the year. Now, I want to talk about constellation for a second. I know this dachshund down. But you hear that rob Sanz? What were the million shares? I mean, he bought it before even this number today, doesn't that tell you something to me it says if you want to own cannabis you own it through s t z because rob Sanz put his money. Whereas now is it like sit as always I. And I promise Chuck find it just for you right here, man money. I'm Jim craven. I will see you to Morrow.

Jim CEO Apple US cannabis Constellation Kramer Micron constellation brands Bill apple rob Sanz China TD Ameritrade Jim Cramer Kevin Sara Lee CNBC JP Morgan
 Corona's $900M wounded soldier  A canceled Mexico brewery. NYTs pod acquisition. The economys Two Paths.

Snacks Daily

18:47 min | 8 months ago

Corona's $900M wounded soldier A canceled Mexico brewery. NYTs pod acquisition. The economys Two Paths.

"This is this is. This is snacks. Daily Tuesday march twenty four staggers. There was a time when a three percent drop from the Dow would've been huge but yesterday's was like bite-size welcome to the New Economy the Corona Conrad Jack. What happened yesterday? There was uncertainty about whether the government will rescue the economy with point eight trillion deal or something smaller something bad when you get into the trillions. Those rounding errors kind to make a difference. You're on the Air I origin story. Which part of the best snacks daily we've ever done. This is the best one yet. The only store you'll hear all week about corona that has nothing to do with virus. We're talking about the brew. Master Constellation Brands. The owner of corona beer was building a one point four billion dollar brewery in Mexico. Now it's been canceled and the stock fell love percent. Jack and I jumped stories about political risk and lobbyists second-story. What HAVE WE GOTCHA NEW YORK? Times has just acquired a startup called autumn. You can read about it in the New York Times. It's all about taking those really long text articles and making them feel and sound like a podcast. Didn't throw in like a little bit of a pinch of Hollywood. So wonderful thing. Our third and final story. Us policymakers are at their Robert Frost. Moment back two roads diverged Eddie. Yellow Yellow Wood is out. Isn't for my. It's kind of a weird thing. Where Rob was going with that body with. The government policymakers are choosing between saving the economy. I took the one less traveled by. We're saving human lives as that. Made all the difference by the way that you say difference like that when you're reading a Robert Frost now SACRI- before we jumped all that. We got to wish a happy teaboy Tuesday to basically everyone who's listening right. This is the last full week of March. But I gotta say yet month. Didn't feel like a normal jacket. It kind of felt like unusual. Mark is actually the worst march ever not just to thirty two birthday on. March fifth was like a random number. That's not special. For other reasons. He can around the key. Reason march was different this year. There was no march madness madness. There wasn't the official trademarked March. Madness tournament no brackets. No desperate number twelve seed trying to beat a number five. Spending weeks agonizing. If you'RE GONNA make sure that the woman nine seed beats number eight seed in your bracket because that's always the inevitable disappointment that Kansas is going to win because Kansas always win joke. It's like a broken watch right twice every if they seem to win every three years and my wrong. Are we wrong? What's GONNA smackers? We're serving you up our own march madness bracket for this Nash Yakin. I whipped up the prophet puppy madness. Here's how it goes down. We have thirty two teams broken into four divisions the first retail and fashion and you got tech and media industrial and finding and then you got food and Beverage Jack Can we talk about the unreal matchups within each of them. We got eight companies and eight profit puppies in each of those four divisions that makes thirty. Two Prophet puppies total. Battling against each other for the crown you can pick your own bracket and you're GONNA have matchups to determine like apple air pods first. Domino's take hey pals versus Casper's wave mattress and we talk about matches tinder plus for its Ford's F. One fifty truck dating adverse a pickup truck. That's a weird match now. The only thing we didn't cover we're like energy healthcare and like utilities companies in this what full disclosure of those sectors are a little less digest. There's definitely some like oil and gas commodities down in. Houston listening to this podcast right now. Who threw his phone against the wall? When aired the beards knackers the winner of this March Madness Prophet? Puppies edition is whoever gets the most vote? We're going to be doing four polls per day on twitter at robinhood snacks and you decide which profit puppy wins which match right now. We have thirty two teams next week. Sixteen teams the sweet sixteen and the elite eight in the final four. Then the winner vote at Robert Snacks on twitter. Happy teaboy Tuesday. Let's it or three stores daily. We gotta get some rain. Food is candy. They don't reflect the views of robinhood family just so get no when that recommended Guinea securities. It's not a research report or investment advice off pro-war sale of a security snacks digestible business. News view rabid financial. Llc member Finbar's last PC base is a wild mix a story today for our first story. Constellation brands plummeted twelve percent. Because it's one point four billion dollar Mexican brewery. What's the status of this? That's not happening. This story has got a lot of corona so true virus. You'RE GONNA see out today like this Jack. Can you kick it off to players in this beer pong showdown of the store? You Got Constellation Brands. Which is the third of biggest beer producer in the US and he got Mexico which is the world's biggest beer exporter in the entire oral not too shabby number one of imports from the United States Number One China number one for UK. It's not Germany. Who's winning that competition with backs and it's not kidding with Labatt. They are far behind Nexico. No no no no no. No Mexico is winning with Takata Delo and Pacifico which it's shipping all over the shockingly. None of those companies have the letter X in their names. I feel like usually with Mexican imports. That's the case. Shockingly they all taste better with a wedge of line now snappers if you're wondering what constellation brands is because its name is highly ambiguous and sounds like a Harry Potter character. It's because it's basically the company controlling your parents. Liquor Cabinet owns high West whiskey. It owns Robert Mondavi wide of Napa Valley yet the Pino ow God sped ca vodka and nick. That's just one of like a fifty page alcohol menu that Constellation Brands. I just want to make that clear guys. Jack had a bad experience with Cabernet. He is definitely a peanut nick. Despite my highly acclaimed career is olive garden. Waiter great career. I'm not the guy. Picks the wine the prophet puppy when it comes to constellation brands? Is it's Mexican beer label. You probably know constellation brands. Best from Corona and modell the two Mexican beer brands that constellation cells in the United States and user so successful for the company that half of their workers are based in Mexico Jack. Let's traveled to Mexico for the rest of the story. Well the conflict is over. A new constellation brand brewery. It was trying to build in the Mexicali Valley of Mexico. Great Name Mexicali. By the way that brewery was gonNA get seven hundred fifty jobs to the area and was going to cost one point. Four billion dollars to build the whole basically this would brew all the Future Beach Beers that you're going to drink this summer and they would all get export to the United States. That's where they were gonNA come out but the problem was that local farmers claim was going to hog up all the local water. Which you know is kind of important. If you're going to feed everyone in the Mexicali Valley yeah kind of an awkward situation. All that Mexican water would be converted into Mexican beer the brewery right which would be sent to the United States for Americans to doesn't really add per makes sense now. The issue manage to find its way to a ballots than Mexicans could actually vote directly on the decision. Whether or not to even have this plan in the first vote was a referendum went down this weekend. Seventy six percent of the Mexican voting voted. No they do not want the borate. App Constellation Stock had dropped twelve percent on the new because it already poured nine hundred million dollars into this facility. That's GonNa counting is going to have a horrible week now Jack. What's the takeaway for our buddies over? Constellation shocked this up as a huge failure by constellation brands. Lobbyists knackers imagine spending on a wedding cake. A wedding band. The food the venue the RSVP's the person who licks the envelope so the VP's and then the venue contracts never got signed places actually book. Do you think the weddings tomorrow. The place book you forgot to sign the venue got a fire. That wedding planner. And you better do a kind of yesterday's current how feels but the lobbyist constellation brands. Who let them build a factory halfway done? When it wasn't st four percent of the plant was paid for. Marcus had already ordered like the ribbons and cakes for the celebration when they come to thing and open it up now. We don't know if constellation brands can salvage any of the nine hundred million that was spent on this factory. No but the lobbyist job to look at what permits are needed. Yeah run some ads. Make sure the thing gets approved. Hell your congressman. To say see survey say would have been Broomhall Campaign. That would have won the whole thing. Oh the lobbyists should have been all over this election and made sure they got it approved so that constellation brand can build this per whether or not the Burri should have happened the bottom line the lobbyists are the ones who dropped the ball and it cost nine hundred million dollars for our second story. Jack and your awkwardly full that thing over to be thirty two. Those fourfold papers are brutal. You need to tag team. This New York Times just acquired an APP that reads articles to you pretty much takes really long articles and turns them into delightful podcasts. Yeah we thought the New York Times report is like busy covering pandemics and they had but then he got a whole floor full of lawyers. That are crafting an airtight acquisition contract. And that's because the New York Times acquired autumn which is a small media tech startup. That happens to be able to do a magic tricks knackers. They turn long form journalism. That's like seventeen paid too shabby into Hollywood quality audio for eight ninety nine a month now autumn was founded by a couple of Columbia. Grads back in two thousand fourteen because the pair happened who've noticed a probe observation number one you only read the New Yorker cartoons because the long articles are way too long the New York. You'll be able to tell people you get the New Yorker but reading the New Yorker is a whole different story. Anyone could take reservation. The challenges the whole the reservation observation number two. You're listening to more and more podcast. Every year OGM solution is to transform really long articles into audio articles which are pretty much just podcast. Basically podcast Jacqueline notice. Something fascinating about the company here. Autumn added a dash of Hollywood because they had to differentiate themselves in their tech crowds. At first essentially they needed people to read articles into a microphone. They voices pretty much went on craigslist. And they're like ten bucks an hour if you come and read articles in your microphone. Forest Siri Alexa. What are you doing these days? That's even worse. They might even get Robo voices like Siri and Alexa to in an automated way read like a row. Today is August eighteenth. Mongolia's shopping cart manufacturing industry continues to grow. It gets bad from their exactly so autumn version. One point out simply solve the problem of being too lazy to read a fourteen page magazine are then they had the creative solution to add in some entertainment and that's what separated them from the rest of tech doing text to audio. This was brilliant. They've hired celebrities to read the articles into the microphone. Which is way better than the voice in your head or the Syrian Alexa robot voice plan. We know you're not gonNA get like Samuel Jackson snakes on a plane style rating you. That article Odem says they have award winning narrator so think like David attenborough from planet and. That's why boom too long to read. Articles suddenly become hilarious. Podcast when you do them with auto so we expect the New York Times to take autumn and basically podcast defy more of its long article. Then monetize that for eight nine thousand nine a month and then maybe become a platform for other magazines and other newspapers to do the same. And The New York Times can take tiny cut of magazines like the New Yorker. It's like a circle of life in text to audio. So Jack what's the takeaway for our buddies over at autumn and the New York Times The New York Times just doubled its content load with one small acquisition snacker. Jack and I have mentioned this before he could stick it out. A T shirt media comes down to two factors content. That's one BICEP distribution is. I think it's safe to say the New York Times already dominates the content. Talk Porter's politics like seventy five million Pulitzer Prize. You GotTa Pulitzer the other day. Because they have so many of these things. This acquisition was all about adapting to the modern preferred distribution channel of our generation cock-up podcast podcast though autumn essentially clones existing. New York Times content. Into another distribution joke daggers. Jack and I like rehearse that coughing thing about seven hundred dives before hit this body. It's repackaging content that already exists in the texts medium for an audience on a new medium. Podcast it's a super lean strategy that lets the Times doublets content with one small acquisition for our third and final story. The economy's Bassett's Robert Frost Aka Bobby Frost moment two paths one path. You save human lives the other path you save the economy happy quarantining by the way we know many of you have been endorsed since Monday of last week. California we feel. Yeah we know it's been the longest four California was leader. There are now fourteen states as of Monday afternoon. At six o'clock eastern time boob ordered stay at home for all non essential works tossed to more up on the whiteboard. Welcome Indiana and Virginia. It's very warm in here. We hope you enjoy now. We've all been tagged on Instagram by like fifty eight friends with some sort of a fitness or food challenge wind. You've probably responded to between zero and two now. This was not the order of the White House now. All of us having to stay no instead. Their order was a little bit more vague a little bit more broad fifteen days to slow the spread. I think there were like five key rules. One of them was wash your hands like every second day. Six feet away from people the other was. Don't go to work if you're saying if it didn't have a number associated then you couldn't really do it and it didn't really matter but to fifteen days to slow. This brad is almost over March. Thirty first is the end of the fifteen day. Now the White House is signaling. What comes next and now we are now. A two roads diverging within award. Which brings us back to our Buddy Bobby Frost Robert Frost either way. Who Owns Robert Frost like Vermont New Hampshire Massachusetts? It's unclear depends on the season kind of I'm going with like the regional play that the New England Patriots Duke. Just go with the broader area in this case. The funny thing though both of the paths are less traveled. That's nice and they're both really bad past really bad pass for how we can handle the corona virus situation. So let's start off with really bad option option age. Would we got in? The option is pretty much what fourteen states have decided to do. Aggressive social distancing let the disease pass minimize infections and minimize the number of deaths downside option. We badly win the economy. There's a great recession. Potentially and things could get worse material. Things are looking bad and we're kind of do an option right now but option B. is the new one that trump is kind of hinting. At which is less aggressive social distancing than we're doing now we quarantined just those the most vulnerable the elderly and those with pre existing conditions. We keep the people at home who were like seriously lives in danger if they encounter krona virus but those were young and healthy can keep so that we keep the economy goes down side option B. You get more infections and you'll probably get more debt. And if option B. goes badly we might have to revert back to option a social distancing for everyone and that would stinks. It's like we make a u-turn go back from option B. starting at the same roads but this time we gotta do option as so Jack. What's the takeaway for our buddies? Who are staring at this road. Who WERE POLICY? Makers is more valuable human life or a strong economists knackers. It sounds aggressively profound. And it's this type of uncomfortable question. That economists love and everybody else pretty much hates but we have to decide this break clearly. Want to avoid deaths. Everyone wants to avoid desk. But at what cost? Are Those deaths come? The cost coronavirus to the economy could be very very bad. According to statements this week from the president of the Federal Reserve in Saint Louis already percent unemployment fifty percent smaller. Gdp all that happening beginning in the next quarter Thursday. This week we learn how many people got laid off last week and Goldman Sachs thinks two million Americans have already been laid off because of the shutdown in the Korean economy. We're talking big numbers here and ECON damage isn't technically death. But if like a thousand people lose half of their income that how many lives of damage is that actually equal to? That's why the economists love this kind of thing. That's why everyone else hates this kind of thing. And we'll see what trump his advisors recommend on March Thirty First Jack Annual whip up Tibo Tuesday takeaways for US. Please CONSTELLATION BRANDS ALREADY. Built sixty five percent of brewer in. Mexico. Now it has to stop. We call this. The biggest wounded soldier ever also blamed the lobbyists on this one. Just playing the lobbyists second-story The New York Times has incredible content. But it's mostly in the form of really long. Article sewed acquired a company that transforms articles into podcast text audio third and final story. The trump administration's fifteen days to slow the spread is almost over. And now we're facing two paths in a poetic way. Both are less travel. Save lives or save the Economy Now. Time for our snack factor. They've had jackknifed knock night this thing reads like a history thriller Senate by Seraya Hernandez Psoriasis from Chicago. Illinois town in One thousand nine hundred ninety three. Oh Yeah. Caleb Davis Brad. Hey name created something. Called Brad's drink now again. This is eighteen. Ninety three sounds like the kind of thing that would spin off into a direct to consumer company like last year and get fifty million dollars in venture fund attack. Brad's drink. Pratt's trick is a lot of potential. Just saying well breads. Drink was a mix of sugar water CARAMEL LEMON OIL NUTMEG. And some other natural additives yeah. That's always a red flag but in eighteen ninety eight Caleb Chad at the change things up renamed drink get this Pepsi Coal and he believed that this drink was actually healthy. Not Horrible for your health like we know today claiming that it helped deal with indigestion which is actually called dispatch as nobody knows except for one friend who still claims they took Latin high school dispatch has something to do with indigestion name Pepsi Pepsi Cola. It actually has meaning smackers. Loved being with you for teaboy Tuesday but now we gotta see you over on twitter at robinhood staff. Yes march madness. Prophet puppy edition. We need your to see what is the best profit air pods fifty truck? What's going to happen to Poland's a lot of crazy? We'll see you at Robin Hood. Snacks on twitter the Robin Hood. Snacks podcast. You just heard reflects the opinions of only the hosts who are associated persons of Robinhood Financial Llc and does not reflect the views of robinhood markets inc or any of its subsidiaries or affiliates. The podcast is for informational purposes. Only is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis any investment decision Robin Hood Financial LLC member Finra as IPC.

Constellation brands Conrad Jack The New York Times Us Mexico Robert Frost corona the Times Master Constellation Brands twitter Caleb Davis Brad Hollywood Mexicali Valley YORK Constellation Stock Bobby Frost indigestion Mexicali Robin Hood
Teslas Double Trouble

MarketFoolery

18:06 min | 1 year ago

Teslas Double Trouble

"It's Thursday, April fourth welcome to market flory. I'm Matt Greer. And joining me in studio, we have motley fool analysts, Emily flippin in Andy cross, welcome. How are we doing this Thursday? Well, I am Lee Mack. Good to see y'all. Well, we have a show we're gonna talk some beer wine cannabis and Warren Buffett, and those are two different story filled right there, but buffet is not related to the beer wine and canvas I want that clear yet yet, and we will get to that. But we begin with tesla the ongoing drama soap opera story that is tesla shares down big on Thursday after tesla reported that first quarter deliveries fell short of expectations. Now, this is just one of the storylines playing out. Yeah. The other storyline is today. A judge will hear oral arguments as to whether Ilan must should be held in contempt of court over a tweet that misstated. A number of vehicles that tesla expected to produce this year. So all of that you throw it together. Tesla shares down around seven percent right now, Andy what he makes let's break up. The for the two pieces of news there MAC. So when it comes to the orders, the the quarter was was much less than what analysts expected was down. Thirty percent on the delivery side from the fourth quarter, which was a record delivering more than ninety thousand. Now, they're around sixty three thousand down significantly they pointed to this massive buildup of demand. They're seen in Europe and China and not being able to deliver that so they did allow us in the in the release did say that they still expect delivery of three hundred sixty thousand four hundred thousand total cars this year. Now, there isn't debate maximal talk a little bit about that debate about what what number they really are looking for because he Llamas have been a little bit all over the place. But the quarter was not that great. So investors, I think are reacting to that. And wondering, hey, wow. If this is. The more of the future for what we will see from the the challenge they have with the model. Three is that going to impact long-term profitability for that car, which really is going to be a big driver of the next five years of what Tesla's value will be to shareholders. So they have to get that. Right. Clearly right now, there's demand, but they're kind of struggling to operate operationalize that into productive deliveries. Yeah. And that's a hard problem to have. Because it doesn't matter. If the demands there if you're not able to fill that demand, and in the past we've seen people wait, a very very long time to have that demand filled by tesla because there is so much value in owning tesla. And it's surprised I think a lot of analysts to see that demand. Stay up, regardless of their inability to quickly deliver vehicles. So it'll be interesting to see in the future if it continues, and I'm definitely carefully watching their Shanghai plans. We saw tesla have a lot of problems getting a plant up and running here in the US and getting that up to scale. So it was producing on a regular basis and last year was full of issues in that process. So it'll be interesting to see if they're also capable of replicating that model in China, which is arguably a little bit of a harder place to maybe get those cars produced, but if they're able to do that they'll be able to more quickly meet that demand. Well, and they do have an advantage there because they they they have gotten friendly reception for building that plan where they can go in and they can own the entire process. There's as opposed to doing a joint venture the market in China as Emily referred to is gigantic last year. I think they did more than a million electric vehicle sales compared to three hundred and sixty thousand here on the USO. It's three times the size of the largest market in the world. It's already Tesla's second largest market. And we saw this quarter that has they are trying to ship the cars over there because they don't have the Shanghai plan built yet. That's a struggle. I mean on his talked about this the challenge they've had with getting parts in the right spot. Dot and bringing parts from China into the US shipping. The car is back to China. And how inefficient that is. So the China plan is one thing that I'm really watching the investment there. Emily like you mentioned, but this quarter with a drop in the tax credit, and that's going to be phased out here in the US. You know is our investors reacting to the potential this is more of a normal case with with tesla when it comes to the quarterly sales and deliveries than what they were expected it along those lines, Andy I was asking the investing team. What their biggest question was about? Tesla in Ben's question was what's the average selling price of model threes over the last quarter, and what are the gross margins of the lowest price model two big questions there that we don't know the answer we haven't we haven't gotten the the result. They did say in the released today that this is going to the quarters drop of the unexpected or the drop in model three sales and total deliveries will impact net income for the quarter. So I think Ben's question is really good because the model three which is what along. Trying to sell to the masses. Really? And this is really they're they're gentle mass market car and dropping the price from sixty grand of forty four grand may Bill all the way down to thirty five grand. Obviously is the price goes down the gross margin, potentially goes down. So they really have to get the scale right to make that really profitable for tesla shareholders. And that still is now going question outstanding question, and what about the second piece of this story? The court hearing over Ilan must tweet that misstated the number of vehicles that tesla expected to produce this year. This whole debate about what is material what is non material is this legal overhang? Is this an issue that tesla investor should be worried about well, we saw today some analysts pointing out that it was kind of an I should say yesterday. Interesting day to release the production information the decline in deliveries because their reaction that we've seen today to the stock kind of proves that that information is material. Right. I mean, investors obviously care about tesla. Ability to produce and sell their vehicles. So incorrect tweets this would seem to go for evidence that heavy. Yeah. That's that's material information, but honestly with the legal system things are never really quite known. And it all comes down to some of the most miniscule wording of the tweets and the the legal ease. So I'm excited to see what happens is normal thing to say, but it'll be fun to watch. And it seems like just with all of the social media tweets that Alana's had over the years. He's always had some threaded explanation of what he really meant. And whether it's a it's a total number for the year of deliveries of five hundred thousand or more of that is the weekly rate that I meant which is so he has mixed nations. I think this will be turned into a lot of he's said, and what does the interpretation of that? And ultimately, I think while investors do care about the forecast is endless Ed because they were expecting seventy five thousand I think this year this quarter. Tesla did not deliver that I think ultimately the proof is going to be in the pudding. They actually deliver. That's going to drive the share price, and let's move on to constellation brands. The beer wine spirits and cannabis company. Constellation is the mother ship for corona and Modell beers those barriers doing very well. The stock up today on earnings on Wednesday, y'all constellation announcing that they had agreed to sell about thirty brands from their wine and spirits portfolio. So the business changing a bit, and this is a business Emily that last year bought a thirty eight percent stake in canopy growth, Canadian marijuana company. So we've got beer wine and spirits. We've got cannabis. How are things looking at constellation. Well, unfortunately, feels like I'm not going to be getting my cannabis infused wine anytime, I'm sorry to hear that. So investors are holding out for constellation brands to really deliver on its partnership with canopy growth to make that cannabis infused beer alcohol beverages. Which are expected to be loosened and Canada later this year with regulatory loosening and in the fall, so either really kind of putting a pin in in that investment until they're able to actually get off the ground and selling those sorts of products and Canada, if that successful than it opens up a lot of opportunity for other companies, you know, we've seen Anheuser-Busch possibly getting into the same space. So if they're successful that really sets Plainfield for what could revolutionize alcohol industry, what why the investment that constellation has made in canopy. And I think it was four billion dollars. I move. It was significant is new look at the US alcohol volume market last year was it was down point eight percent. The year before that down point seven percent beer was even worse. It was down one and a half percent. Even though constellations having some successes in the beer market beer was down one and a half percent. Last year. Volumes are down one point one percent. In two thousand seventeen the trend for the alcohol market is really not in the favor. There are. Are some bright signs out there in these things called? Like soda infuse alcohol alcopops as they may call it that seems to be a market that the biggies are investing Diaz yo has has invested in those and that they've had some successes they are. So clearly a lot of these big alcohol branded companies are looking for other ventures in different ways to grow because we're just not consume as much beer and spirits and wine is used to and constellations a great example of that, you know, they're kind of getting into these Hillary's spaces. But it's worth noting that corona and Maddelo are still really strong brands while you know, growth in those industries hasn't been particularly outstanding corona is is going to surpass cores as the second largest beer brand family in the US and Medella is the number one. Sorry, corona is the number one most love to beer among Hispanic consumers. So there's obviously demand there Medella has seen doub double digit growth over the last twenty six twenty seven. Orders. So that's huge. It has forty percent of the total category growth and high end beer. So all of this is really going to say that beer as an industry isn't down and out is not in actually Sam Adams, Boston beer, the maker of Sam Adams, actually, seen some depletion Grissom, some volume growth, kind of come back after a couple years of some struggles really the the companies that are starting to suffer on this really the very large you'll mega breweries as they are as as companies kind of start to struggle about. Gosh, we're just not consuming as much beers used to the US or maybe globally and the likes of a Boston beer constellation brands, corona to be able to finally start to take some market share back, and we should add that constellation is not getting out of the wine business, instead, they're really focusing more on higher in wines. Andy cross, how would you define a higher end wine. I guess it maybe on a dollar amount. So what does that maybe higher higher than twenty? Buck. A bottle twenty five dollars a bottle. Maybe I'd say I didn't realize that people bought wine that wasn't in boxes. Maybe we don't see so yours your definition of a higher. End wine is in a box. It's two buck. Chuck right bottle or comes actually bag in a bag in a box bag in a box. Or where do we think? I don't think you can put it just into the well, actually, maybe can put in the new boxes. The new boxes that the socks water has really done. Well, maybe boxed wine is ready for a comeback. Three ING back the boxed one. Okay. Well, our final story here. And there's no real hook for the story. Okay. But we just thought it'd be fun story to talk about in his annual letter to shareholders back in February Warren Buffett said that he was looking to make a quote elephant sized acquisition in quote. So this is great time to basically speculate on what that acquisition may look like we've got the Berkshire annual meeting coming up in may. So you know, we we've got to speculate. And again, I brought it to the investing team. And as y'all think about what the next buffet acquisition could look like here, three answers. I've got ready. Jason Moser says McCormick. That's his prediction. I'm shocked to go to a little bit up. Jim Gillies says Southwest Airlines, and Tim Byers says Salesforce. Wow, the Salesforce one would be amazing. If you cited to do that. Elephant probably. Yes. Dollar company. She's jokey. So Andy cross buffets next elephants size. Acquisitions it just for some context here. Mac so Berkshire the their last big big acquisition was precision cast parts for thirty to thirty five billion dollars back in two thousand fifteen. So when he talks about going after these large acquisitions that are meaningful like, I'm thinking like thirty five fifty billion dollars market cap of the one that I was thinking that that would be a good fit with immature Williams. So you think Sherwin Williams as the paint company, they're global company generate more than seventeen billion dollars in sales per year. They vary. Hi, which equity pretty consistent profit margins. Stocks done phenomenally well to recommendation of ours and sock visor, it's a kind of business and buffet and clearly understand they have Reto component of they've wholesale component. I'm I'm guessing maybe one of his houses probably has from Sherwin Williams paint there. So I'm saying Sherwin Williams. Okay. Emily, what do you think? Well, I have to have one that. I just want them to do. I don't think it's realistic. It's kind of you know, buffet style. But I'm just so desperately want buffet to revolutionize healthcare. Our our country needs it. So I would love it. If it were to acquire a company like Tele doc in really, just raise awareness of telemedicine pay you to say that or did, you know what he often just sit next me? So it's hard to avoid the Tele talk every day. So I'm sold at least he's in the space though, with the merger Hathaway P Morgan Amazon initiative to try to change health. He's thinking of it. And that's what gives me some hope right yet. Because it's it's clearly on the top of his mind, and he's made comments in the past about, you know, investing for the purpose of of changing industries of doing good and that's bit of deviation from I think the w-. That he's invested in the past. So fingers crossed more realistically. I see buffet investing in a company like Ross or Burlington. It goes back to really understanding the business. I mean, these are businesses that serve the average American consumer and they've performed really really well and actually a lot of these businesses even though they're retail. That's an amazing job of managing their inventory of meeting consumer demand. And I I would be hard pressed to think that that hasn't crossed buffets mind. Okay. So interesting ideas, my dream, probably not realistic. But my dream, of course, is Costco, and he can pick it up for the low low price of a little over what one hundred billion or so market cap. Yeah. Is there any chance that could happen or that just doesn't doesn't fit? You think? Do I need to give up. My Costco dream. No, I don't think. I mean, they have they have Berkshire has more than one hundred billion dollars a cash balance sheet, they have three hundred fifty billion dollars in shareholder equity not cash, but that shareholder. Equity. They're only ten companies in the world that have a market cap of three hundred fifty billion. So there's a lot of capital for Warren Buffett to us with insurance business, and their cash one hundred billion dollar acquisition would be a m- that would be a pretty big one, but dollar fifty hundred drink that got he's got guys gotta love that. It's got. I guess you don't have to buy the entire company to get that though. Looks at a person who had shop at Costco, right? Is that is that that's a compliment. Right. Of course. It's a compliment. They don't scare me. Although he had he has said I buy expensive suits. They just looked cheap on me. I don't have expensive suits. I mean, I don't I don't think the last time. I bought a suit. I was my parents bought it for me. It's like probably probably kosco. Yeah. In the seventies. Okay. So the desert island question as we wrap up again, don't invest this. Don't invest this way at home. It's just kind of fun. Question if you're on a desert island, and you've basically got nothing to do because well, you're on a desert island. So you're there for five years, and you've got to buy one of these stocks. What are you going with? And you've got to own it for the next five years. Let's go tesla. Let's go constellation brands or Berkshire Hathaway in cross gosh, I would say for the next five years. I'm gonna tesla. I'm going butcher, by the way. Birgit full disclosure. Berkshire Hathaway's one of my largest, personal holdings. But I think five years I'm to roll the dice back with Ilan and Rolla dice. Okay. Well, I'm gonna take a little bit of a riskier choice here. Stick with the opportunity for growth, and I see the most growth opportunity with constellation brands. If the investment in canopy growth does well, and they revolutionized the space that can mean amazing things for their business. And if it doesn't, and it really just falls flat. At least you still own shares of really solid company pays a study. Dividend. Can't be upset about that. You've got the high end wines. You're not on your desert island. You're gonna have a lot of fun. Okay. I like it. Well, you can always Email us at market full dot com with your questions your comments with your desert island picks, Andy, Emily, thanks for joining me. Thanks as always people on the show may have interest in the socks. They talk about. And the motley fool may have formal recommendations for against so buyer sell stocks based solely on what you hear. That's it for this edition of market. Fully the show is mixed by Dan void. I'm Matt Greer. Thanks for listening and we'll see tomorrow.

tesla Emily flippin constellation brands US Warren Buffett China Ilan Andy cannabis Costco corona Matt Greer Andy cross Mac Lee Mack Berkshire Europe Shanghai Sherwin Williams
Ep58: Jigar Raythatha

The Long Run

1:11:50 hr | 1 year ago

Ep58: Jigar Raythatha

"Welcome to the long run. This is a podcast biotech adventurers. I'm your host Luke Timmerman. Today's guest is Jigger. Retha jigger is the CEO of Cambridge massachusetts-based Constellation Pharmaceuticals. This company is built to develop drugs against epigenetics targets simply put this is a way to turn genes on or off without altering the underlying DNA. The pharmaceutical industry. Fancy this idea about a decade ago as a way to shutdown specific disease processes but by binding with enzymes that can be reached with classics small Molecule Chemical Compounds that the industry knows quite well concept however soon fell out of favor. Some of the early compound scooped up by big Pharma. Never lived up to the hype. Exciting new modalities like gene. Therapy and cell therapy emerged win. Genentech constellations big partner walked away from an option to acquire the little company in two thousand fifteen consolations suddenly had a lot of explaining to do jigger entered this situation as CEO in. May of twenty seventeen raise money crafted a new development strategy brought in some new blood and took the company public. This year. Constellation burst back onto the biotech main stage with some preliminary clinical data for a drug candidate for Milo fibrosis the compound. Cpi Oh six. Ten is a Bromo domain extra terminal domain inhibitor. It has been tested. In a phase two study known as manifest as a single agent and in combination with excellent nab the Jack Inhibitor marketed by insight as Jack Affi- Constellation has looked at treatment refractory patients as well as people getting their first treatment. The results are striking as I discuss with. Jigger in the latter part of the show more than ninety percent of patients are seeing improvements in spleen volume reduction in total symptom scores while also seeing their hemoglobin counts which were depressed. Come back closer to normal results. Were even better. In the first four treatment naive patients you can see the abstracts published on the American Society of Hematology website in advance of that medical meeting December. Four to seven twenty nine thousand nine in Orlando Constellation will be presenting updated data at that meeting. Constellation stock. Touched a low of about four dollars a share this year but as of this recording heading into the ash conference the stock is worth forty six fifty six share a market valuation now exceeding one point five billion. That is the turnaround. Now before we start the episode. I'd like to tell you about the newest sponsor of the long run. Precision systems is lowering the barriers to developing gene and advanced therapies precision. Nanna systems is a global leader in technology and solutions for developing Arnie DNA crisper and small molecule drugs rapidly taking ideas to patients in working with over one hundred bio pharmaceutical companies. Globally precision NANNA systems expertise and proprietary. Technology is at the heart of many of the leading gene therapies underdevelopment today precision NANNA systems nanomedicine development and manufacturing platform and reagents provide outstanding reduce ability versatility and scale ability with an intuitive workflow. That requires no prior expertise. Precision NANNA systems can partner with you to bring your programs to patients successfully to learn more about precision systems please visit www dot precision anna systems dot com. And Are you a marquee service provider eager to your name out in front of the biotech leaders who listen to the long run Stephanie? Barnes can help you learn more about sponsorship opportunities find her on the contact page on. Timmerman report DOT COM. And if you haven't already now is also a good time to subscribe determine report for you. Do take a look at the testimonials page. You'll see industry leaders who have subscribed since the beginning in two thousand fifteen as Bob Nelson of arch venture partners. Put it quote. Timmerman is always ahead of the game. And so what are you waiting for go Tim Maroon? Report Dot Com and hit the green button that subscribe groups that meet. Certain conditions are eligible for discounts. Ask Me Luke at remain report DOT COM to report DOT COM slash subscribing. Please join me and Jigger Retha on the long run welcome Jigger Rafa to the long run. Thank you very much for having me. Look so jigger. I'm really excited to speak with you today. there's a story here about a company turnaround as well as some really interesting data from your lead drug candidate heading into the American Society for Hematology meeting up the ash meeting coming up so lots to cover here as you know from listening to this show. I like to talk a little bit about who the person is before we get into what they do. So where does your story begin? Where did you grow up? So I was born and raised in New Jersey actually born in Hoboken New Jersey and lived my formative years in The Central and northern New Jersey. Most the time actually in a town called Edison And you know growing up We were a family of four. My parents had moved India in the early seventies and my sister and I were were really kind of a first generation Indian Americans in the in New Jersey and this is Greater New York New Jersey. What did your parents do for a living? So they were business people They owned a small business. They had A few actually retail stores of Ladies Clothing Stores Actually. She spent a good a good chunk of my Youth helping them out And in various ways in In that business and it was it was probably a very formative experience for me in terms of learning a variety of different things that that probably helped me today but but certainly Times it was a struggle and so also learned a lot about resilience from that experience to but but they they were. They were business. People At one time they had up. You know three different retail stores. You know at their at their of their peak of that interesting. So how young would you've been helping out around? Oh Jeez I was pretty young. Probably Spicer in helping them. When I was a six or seven years old I remember taking trips to the with them to to New York City in our station wagon to the garment district at the wholesale stores and and would pick up boxes and boxes of women's clothes and haul them back to Toward Stores New Jersey. And then those might be my job to To open them up and hang them and over time actually One of the things that got pretty good at talking to people and and trying to I mean. Is this little kid and eight years old and go up to You know some of the customers stores. Hey that dress looks really great on you. Know as a as an eight year old kid and so But I think that that actually taught me a lot about you know how to think about talking to people and relating to people and In selling to people actually a lot of what we do You know these days actually is telling the story on helping people understand what you're doing Itchy point back to that experience quite a bit as a formative experience in in my career very fundamentals of business. And did you stick with it? Did you stick with it like going through teenage years? How much yeah I mean. They wound down the business. It got pretty tough after a while. Especially when in the nineties there was a bit of a recession Nearly wound down the business kind of in the mid mid nineties or so but Yeah helped him. All the way throughout Spent a Lotta my weekends. You know working with them in various different capacities Trying to try to help them out. So you decided. I guess that you like this business. You decide to go to rutgers and I see that you majored in biochemistry and economic. Yes it looks like so I can imagine this is sort of. Like in retrospect an ideal sort of back to going. Yeah I attack the plan from the beginning. It certainly wasn't the plan. I think you know like most most most kids in College. I was figuring things out You know I liked science. I was good at it as no in In High School A lot of my peers. Were also my good friends. Were also Becoming scientists and and so that they felt like a natural thing to do but also Again me needed a little. Bit of war shadowing One of the things that that I become quite good at it I think is is putting together information from a lot of different areas. And that's been a theme. I think in the various career choices I've made And so I was just interested in a lot of different things and so You know I took all kinds of classes. I actually I if you if you saw my transcript Load up my class schedule. Every every semester with Almost a maximum I could take. I took classes in philosophy. I took classes in communications into classes in economics and science and I was working in the lab and you know kept super busy and so it was just one of these things where over time I had just accumulated a Lotta credits. Also an economics and so it it was just sort of fell into it. But you know looking back. I guess it was a pretty good combination for what I'm doing right now but that wasn't you know a specific program that rutgers offered to you know aspire to just kind of it kind of happened. I wish they did actually have actually reached out in a couple of times help. Help think about how to help. Students navigate their careers if they if they realized they don't WanNa be laboratory scientists in which they do. But I'm still working on that. So was there a point when you decided the lab? Science wasn't really for me. How did you get on the track toward you know? Business of Pharmaceuticals or biotech. I learned pretty early on in college. That be you know being a laboratory. Science wasn't wasn't GonNa be for me. You know I I was doing research actually all four years. I was in college but I was not not good at it at all. I think a lot of it has to do with fundamentals of the the patients that it takes to to stick with convey it very detailed scientific question over the course of many years and I was always much much more Kind of bigger picture. I guess in a way I thought about things in a routinely I routinely messed up the experiments as working on and it was. I found that to be very very challenging so it became clear to me that working working in a lab. Just wasn't the right place for me to excel. I still enjoyed science though I did well. In my science courses A I thought about different different ways but that that was actually working in the lab and not being very good at. It actually helped me to think through. Well we'll what can I? Is there a way for me to then combine kind of an interest in science with with something else And that's eventually led me down the path that that that went down so you you finish your degree at rutgers you go on to get an MBA Columbia. What was the thinking there? We'll in between I actually before I went to Columbia I spent a few years. My first job at a college was working at a consulting firm call T Kearney And it was typical management consulting. I think the first Prejud- worked on was at NABISCO and we were working at plant operational improvements in next project that got assigned to was actually at Roche. I was super excited with maybe get to combine science and business but but it was very very much Not really science at all actually So then after about a year of consulting I wanted I actually proactively decided to Kinda make a move to try to break into the biotech field And I didn't really know exactly how to go about doing that. And it got a little bit lucky. We're we're biogen was recruiting For for an analyst level role in their near New Planning Group And I was lucky enough to to to get hired into that group and it was Looking back it's kind of a. Who's who in that was in that group Carry feffer bill did but you know Katrina Bosley. Was there a stewart? Polar getting core were Steve Till crinoids. It was it was a very solid group of people that that I got to learn from and I spent four years working at by. Jin doing arrange different things and that was a tremendous experience because it was a a real golden age Abidjan where we were just a couple of years past. Avonex launch company was fully integrated global and and there was just a lot to do. And if you're young and you initiative recently smart you got to do a lot of cool things that you may not get to do In a much bigger company or a much smaller company where the opportunities might not be there and so so before going to Columbia Business School I worked at I worked at biogen for four years and We're going to rain different things that were that were really really educational. Yeah Yeah and this would have been late nineties early two thousands as you say. Avonex was just then taking off and biogen had to figure out how to maximize that and also you know. Keep the pipeline moving along and build like a bigger sustainable company for long-term yes. There was a lot of strategic thinking that went on in that group that I worked in Was kind of the nerve center and in the way that I approach. Things was really being an information node. You know to get Scientists and business people and clinicians in manufacturing folks talking in the in the with the right language And and actually the the job that enjoyed the most there was actually a program manager program leadership type. Aerobics allowed me to really dig into He could've drug and move forward Which was quite gratifying. Also did some really interesting deals and things of that nature but but the program leadership The program management piece of that was tremendously educational and biotech. It's something that people should really consider doing at some point in your career. Okay now this is actually funny. You mentioned for years. I notice a pattern here somewhere about four year. You work in four year chunks and then you move on that about but my wife was Was asking news yesterday. She how long have you been back at? Constellation coming up on three years and she's a year ago and I was like no no. That's not that's not the plan it's just a I guess You know it certainly not the plan going into it But I guess it's enough time where these can change in grow when you can have a real impact and it's a good moment to think about where you are and reflect and whether you have an opportunity to keep growing in the role that you're in It just so happens. It's happened to me every four years but But certainly not the plan and certainly not what? I'm planning right now. So you have this experience at biogen is a good one. You learn a lot. You're in your twenties and you're thinking okay. This biotech thing. This is for me for the long term. Is there anything of great importance going to Colombia? Or is that just like getting a credential and learning a few more things to advance longer term? I guess I never took the step of getting advanced degree in science. Although I was I was really capable at communicating Along those lines I I did think that having some type of advanced degree would be important. It looking back a mature. It's crucially important but I but I definitely did learn a ton of Columbia. I met a lot of great. People Broaden my horizons a bit And you know got to live in New York City for a little while to and so so that that was really the thinking behind that But I I did go into business school with a plan which was I wanted to graduate and get a job in venture capital And a half. It wasn't for all the right reasons. It was really for probably all the wrong reasons because they just let it was a really cool job to have And that was the plan. And that's that's what the planet went with going into it. And what what I coming out of it wrong reasons like what well you know it just it. It sounded to me like it. Was You know you get to decide whether you're going to invest in these companies and you get to make all these great decisions and Invest Capital and in? That just seemed very very fun and energizing We truly having understanding of what that was all about at that time in my mid twenty S. It was definitely a learning experience. A good job to have But again From the kind of you know when when folks asking you know talk to me about their career choices I always talked about like why do you WanNa do it? What makes you happy? And that certainly wasn't the thought process that was in my mind as we made the choice Not to say that it ended up being a bad experience at all. They can also make a good amount of money to you probably. That's right that's right. Yeah that's right. Yeah and it's just looking back I think You know sometimes At least for me. I spent four years doing that as well at some point. Isolating and I found it also A bit a bit too on the surface These these the with the type of investing was doing it right abby And so I felt like I needed to go much deeper And and so really reflecting on what you're good at. What makes you happy I think is a crucially important thing to do. Not just focus on you know the the cachet of career or just a financial aspects of it. Yeah Yeah so. You went to read. Abby actually got a Kauffman Fellowship which is a pretty prestigious thing. I mean as a young guy I I would imagine like. That's a that's a ticket to. You could continue on in on that track if you wanted to. But what kinds of things did did you invest in an or science or companies that you got exposed to that interested you during that period. So Red Abby it actually was a relatively small fund grew out of there to To folks who were business partners Frank Bond Soul in Philip Frank was one of the original three partners at any a Ann. Philip was a scientist. He trained under Sydney Brenner. Actually And then Eric Del so he you know he had a very strong scientific background. He also came from a very very wealthy family and And he moved to Baltimore and And he hooked up with Franken together they were investing in scientific entrepreneur activities. In part of that was a co-investing You enter the. Lp's in in several funds that you know can nea. Inner West Polaris Domain funds. Lp's and every now and then they would co invest alongside with their own capital and that that co-investment piece cut to be large enough that that they wanted to make that a A freestanding independent fund And so so that. That's that's what we started. And that's that's what I joined. It was a small team. It was myself Phillip Frank and a couple of folks that were that were involved in that we also. I guess today we call crossover investing. We didn't call that back then but we did do. Mostly you know series B. or C. Rounds where we try to find very interesting companies that you know other. Vc's had started up We also did invest in public companies. But more through private negoti deals either pipes or registered offerings and so Got a good exposure to both Private investing and public investing and we were fairly agnostic to Therapeutic areas also invested in some devices so it was actually a looking back. It was a wonderful opportunity to get a lot of exposure to a lot of different Different types of companies different people as well as public and private investing in a very interesting time in the market actually It's something that I I remember very clearly because you remember that that was a very very choppy time in the market. Which years are you talking about here in venture capital two thousand five to two thousand nine? Oh Yeah I remember that. Yeah and you'll in the public markets. Were actually working in companies. Were getting public. They were raising money but it felt a little bit like like two thousand sixteen right all the time where you're just making it out and And it wasn't you weren't really creating a ton of value and it was hard to really grow a business and sometimes you meet people who have been investing. These days. They weren't they didn't really remember those times. And you can. It can get quite hard and we really need to be mindful that it's not always going to be probably this this easy to raise capital and so we have to keep in mind as we're as we're growing our businesses. Well Yeah Yeah. The financial crisis hit hard in two thousand eight people. Forget but that was that it wasn't it wasn't easy. I felt like two thousand five six seven. We're not easy times sir. No No no the number of IPO's in those years was oh. It was minuscule compared to what we see today. A dozen companies will go public all year and and yet and then the financial crisis hit and all kinds of investors turned conservative. And so what happens to you? Then it's sort of like the first thing yet to to get rid of so. It was a very hard time but you know I was paying attention. I was writing then and there was a whole lot of cool science the science. Yes that's right wing to make progress and you saw this to this. Is What was Constellation. Right. That's that's right. That's right and it's funny was what's new now was new back then too. So it's a lot of a lot of things that were just actually starting to take form can cell therapy was starting to foreign back then and no one was really paying attention viruses and gene therapy normally pay attention that stuff back then and now and now people really are But that's right. That's it was from that experience that a decided to to move back into the operating world You know where where I found myself was particularly with the kind of firm. That Red Abbey was It was hard I felt like it was hard to have a true impact And and while I greatly learning about a whole host of different areas and in meaning a ton of people both investors and entrepreneurs. I really long to get deeper into things And it was very difficult you know. We had twenty five different companies in our portfolio and We're relatively small investors well and even the bigger investors I felt like had a tough time getting overly deep And so You know I had actually called one of my one of my one of the folks that actually hired me by a genetic Kerry feffer You're asking for some advice in an. He told me shut down his consulting practice in join this new firm that he started up by a third rock ventures and they launched a couple of companies in One of them was constellation. And they're looking for someone to do all things business and I flew up to Boston. I met the team and it was incredibly exciting. Mark was the interim CEO and Bob Temper with UNUM CIS OH and The new exciting here of epigenetics endless possibilities and we're super early and it was a it was opportunity for meter really stretch into an area that that was very different. I hadn't worked in small molecules really before You know directly in certainly not at this type of early stage and so it was a great opportunity to really really spread into a new area. Now what was it about epigenetics? At that time. It's ten years ago. I remember lots of interest in the science. This idea that you could control. Gene expression turn genes on or off without altering the underlying DNA. So you didn't need to do gene therapy. You could sort of silence jeans without doing complicated gene therapy. You could do it with small molecules. Yeah and I think it's still a tremendously exciting area. That is is not at its infancy. May maybe were more toddlers or or maybe getting into the tween years now in terms of understanding. What these targets are. What they do. We still don't understand is is how to had consistently link the biology to patients and that was a big theme in a media. Foreshadow again to to win came came back to constellation something that's become a very important piece of our strategy but but precisely. I think The the notion that we could essentially Y- conduct this orchestra of genes. That are creating GonNa the the music of how how everything's supposed to work on her body with with small molecules. That can they can tune things in the right way. I think it was a tremendously dig idea and Instill has a huge amount of potential. And there's only been a handful of targets where we really have mind and explore the potential in a in a deep way. And there's a there's a lot more there. Yeah so at that time there would have been you know a couple of programs that were pretty far along the H. Dak I believe from Merck histone deacetylases inhibitor. There was one that Gloucester I think got acquired by cell gene so there were a couple programs that were pretty far along or maybe even FDA approved but then there was just this whole like greenfield space that a few third rock and and a couple of others EPI Zein was another contemporary of Constellation. Trying to figure out like okay. Where would you? What were the right targets? And what patients could you? Could you help? That's right? Yeah Yeah so. It really got going when Actually One of our founders Danny Ryan Berg Was was really intent on trying to launch a around. This and currently our chief scientific officer was a post doc in his lab and the two of them were GonNa hit the road In were pitching the idea of creating a small molecule discovery company around this in the column group on the West Coast and Bob Dave Goodell who really Really believe that could happen They wanted to put the company in the East Coast. And so that's how third rock involved in. So obviously Dave in Mark Levin knew each other quite well Third ROCK IN IN THE COLUMN GROUP. Really carry the weight to To build a company in Van Rock also join in those early days to the company going. Okay so you join. Two thousand. Nine company is like less than a year old. I mean how many employees were there. I was probably in the first twenty. I was the first business person that they hired. Okay and so what was your mandate everything from you know thinking about How TO DO BUSINESS? Development deals and kind of sell this is again. Mark Levin was the the CEO was legendary doing And so I think he had a vision of recreating millennium in some ways. And so really thinking about a business. Development Strategy was was front and Center. also You know thinking about how to build a this is one third rox first forays to into company building so really they were Honing their craft there too. So we were gonNA thinking about work. Didn't work in. How do we think about follow on Financing's at syndicate do not syndicate business aspects? Were things that I had to deal with. As as well as a lot of operational issues like real estate and You know a little bit of financial planning And basically anything that was not directly related to move into science forward but also even though I was gonNA perfectly helping on that with Building the story that we were in that we were working through this getting deep in the weeds. You wanted to get deep now. You're getting deep now now. I'm the that's right and but also working with a Mark Levin who is famously visionary and seeing the bigger picture you've got exposure to both big picture and the details that's right that's right. Yeah so it was again a tremendous time. So you're there for four years and then you get that edge again to go do something else. You went to what what prompted that. Yes so You know just kind of While we were working through the building the science at at Constellation We started to get traction run a couple of new targets. One was quite When was quite a competitive was each to where there was a handful of companies that were not and it was? It was challenging and difficult from a drug discovery perspective. We were making headway there. And the other was the best family of proteins and that the scientists could have exploded all around us and You know really Jaber Anders Lab IN GS K We're really driving to the forefront of the biology around Benton addition And the discovery was certainly more tractable around Ben Hitter in. It was around things like each tour mental transfer raises So those two programs ended up being the lead programs in our portfolio in and we got to a point. Maybe what three years into the company where we had a line of sight to development candidates and potentially moving into clinical development But we also had a lot more that we need to do and so we were pretty active on the Business Development Front which which was quite hectic at that time anything at all the big Pharma companies were looking for a way to build an epigenetics capability internally in most either doing it on their own or trying to ill partnerships to do it In around two thousand eleven We were in very very active dialogue with multiple different companies in one of those which then tech and this is very famous deal that we ended up doing where you know. Genentech had prioritize. Different Areas Immuno Oncology and then epigenetics as if you truly oncology pipeline and they hadn't made a lot of investments in epidemics internally. They really had hired a couple of folks that cared about it. A Lot And so so they worked with US To essentially help them build that And so we put in place a three year. Collaboration where you everything we did was with Genentech. And they brought fifty scientists. The table we've worked with the scientists the table And and really focused on your new target discovery in in early chemistry But but then there was the the lead programs that we had that That we didn't want one include in that deal in. Genentech really wanted them in the deal. And so the way that we squared all that was with an option to buy the company and we we prebaked that and that was going to be triggered with the first phase one data from either one of those programs and so once we put that deal into place You became a new very much execution mode on on the the science and you're driving something clinic and through the phase one and delivering that package. Genentech and so from a business perspective. I I I. I wasn't fully fully utilized and so Agean I didn't. I never really wanted to leave constellation but but I just didn't have a fulltime role anymore and so I spent half my time working with third rock to incubate new ideas in one of those ended up being John's precision. Nanna systems is lowering the barriers to developing gene and advanced therapies. Precision systems is a global leader in technology and solutions for developing our DNA crisper and small molecule drugs rapidly taking ideas to patients in working with over one hundred biopharmaceutical companies globally precision. Nanna systems expertise and proprietary. Technology is at the heart of many of the leading gene therapies underdevelopment today precision NANNA systems and nanomedicine development and manufacturing platform and reagents provide outstanding reduce ability versatility and scale ability with an intuitive workflow. That requires no prior expertise. Precision systems can partner with you to bring your programs to patients successfully learn more about precision Anna Systems. Please visit www dot NANNA systems dot com so twenty eleven two thousand twelve. We're still in a downtime for biotech venture capitalists are not looking at some rose the IPO market. Or you know even multiple bidders like even if you've got good science so there was a concern like okay if we're going to put in X. amount of money how are we going to get y out and and the words around this time some deal structured that you know me could make you could cap your upside so to speak so you can kind of become a research wing of Genentech essentially a for epigenetics and if you hit certain milestones you could reach a predetermined acquisition price. Which would make the investors reasonably happy. And the you know the quiring company could be reasonably confident that they've got something that they can pick up and then run with but that's not the kind of deal that you would do today in a hot market. You don't want to limit your options right. That's right. Yeah that's certainly true. I think I think that was part of the Calculus was that we believe that there's a lot to do And you're already raised by that point. Seventy five million dollars in back back. In those days. That was quite a bit of money. For preclinical stage company to have raised and the prospects of of a newly investors achieving some type of liquidity through a public market was non existent And Working with a partner where there was some reason. Possibility that can lead to A multiple on investment acquisition. I think was was a was exciting As well as being able to work with a very strong scientific partner in Genentech who really understood Cancer and drug discovery quite well to serve multiple factor leading to take that route. So genentech. It's you know this great science based organization on the West Coast. It's also like very strong and biologics not so much small molecules at least in those days three year deal. You're going to come to a fork in the road and they'll decide whether they want to acquire the H. Two program or the bat the Bromo Domain Extra Terminal Domain Inhibitor Program. Right yes so. Their option was to acquire the company. So that's it was triggered by data from either one of those two programs but they had to take the whole company or or not. Okay so how did this partnership go from the outside? I do know we're aware that after three years were up. Genentech decided to walk away. Yeah so I was there for maybe the first almost a year of it and certainly After that I wasn't I'd never front row seat to it but I think it was a challenging It was it was a fruitful partnership where there was you know very very good science that was generated but I think it was challenging for sure I think for for both sides. I would likely say where. Constellation had a very We were used to doing things the way that we wanted to do. And all of a sudden we've got. We've got someone that we're working with and you've got a really GonNa bend to a little. Bit of the compromise of what their their needs are too and this is one of the things that companies need really need to keep in mind as you're entering partnerships. Is that anytime to working with a larger company even even through the best of intentions. They've got likely a much larger portfolio in a much different set of decisions that they're managing than you are and And that certainly was the case with which Where where we felt that you know. Hey We've got this great program that moving forward we want. We want unleash Resources in a way that we would have done narrowly in a much more Much less risk averse manner and for Genentech it was like well we gotta take it to the RC. And and you know it's GonNa Compete against you know everything else portfolio before we decide to kind of in these those resources and so certainly Issues like governance and things of that nature became quite clear as the importance of of of those types of things and I think those those ends up being challenging for constellation engine intact to really align on over the years and while. I don't think anyone really likes to say this. But probably had some impact on on why they chose not to acquire the company to its natural tension between small and large company. You've got a couple of programs that are your your bread and butter and it's like do or die with and there's an. There's an urgency and speed a focus that comes with and and that's just not not the nature of of a larger company. But as you say they've got other things to do but but okay so three years come up and then they walk and I remember now. You weren't there at this time. You had left as you said you had found some other things to do with third rock and there was this company jounce. I don't really want to spend any time on your period at jealous but constellation a they. They held like a little independence party in tweeted about fifteen and I remember like I think a lot of people looked at like. Wait a minute and then tack walks. That doesn't really look good like maybe maybe it's just not that power promising right. I mean really hot stuff. Genentech would've bought the company. Wait a minute you guys are having a party. What's that about. Yeah Yeah so. Probably NOT. The best choice of means to us But but just knowing with the company was going through. I understand why that happened. At the way the deal was structured. Genentech trying to figure out which was going to do for quite some time. and Genetic every last second that they could take and so You know which was probably quite frustrating for the folks that Constellation An you know especially going into through two thousand fourteen fifteen which was the some of the hottest capital market years in the public market in having that kind of pass them by was probably quite frustrating to see so I understand it You're probably not the the the wisest choice of Internet. Memes the US though. Okay so you in two thousand thirteen. Just as a short detour. You go to John's. You're one of the very first employees. They're building up. That Cancer Immunotherapy Company. Cross town really grew that up into a nice success so one hundred employees took that thing public but then twenty I guess twenty seventeen. You get a call from someone. I guess on the Board at Constellation like Hey. Hey Jaeger You WanNa come back so we actually had a It was it was one of those moments again whereas quite clear that after four x four and a half years at a challenge. We did a really nice deal with cell gene And we took the company public And so you for from a strategic perspective I felt like I had accomplished a lot. And where the company need to go was more? I guess experts in certain areas. You know things like You know financing an execution mode and that's kind of where I was at least at that time and so it. It just became apparent to me that you know it was. It was likely the right time to look something new and so I talked about it actually pretty openly with the leadership at at at Johns as well as Some of the board members at at Jounce one of those was Bob Pepper in. Bob Was a common board member between Constellation and Jones And we talked about a number of different things. I talked about You know joining up with Iraq Becoming ER and helping them launch new company and then in those discussions. Bob Said you know. Hey Bill you know your old company doesn't have right now and things are a little bit complicated and You know really we can maybe use some new leadership in help To to get things on track and you know this would be an opportunity to To jump into something. That's not a nascent idea. But rather you know pretty mature organization and if you can get back on track it'll be it'll be pretty significant pretty quickly and probably more quickly than than Brand new idea that you work with us on and so so really it great. I mean you know Bob said you can do either one You Love we love to have either wine and It wasn't the obvious move. I think You know most most most folks probably would have said I WANNA go do the the hot new star Trek but but remember. I actually never wanted to leave. Constellation to begin with. I still had a lotta great friends there. I really believe in science so I decided to dive in and learn about what was there and You know what what went wrong and You know after doing working kind of looking at that for a few weeks. You really got the conviction that we could Figure things out And probably rather quickly as well so I took on that challenge. You were the chief business officer at jounce so the senior leadership team but this also represents the chance to come in for the first time as a CEO to to really put your stamp on things. Run things and by this time. You're you're about forty I guess about that. Yeah Yeah so. He almost own the. I just turned forty. That's right so you're right. You've got enough experience. The right kind of experience. You know this field well this this appeal to you and but by this time epigenetics is kind of old news right. Everybody's like hot over gene. Editing and gene therapy is back again right so this was like not the obvious. Hot New thing. Yeah you know but but I I actually have a really good perspective on that sort of thing. I mean I remember when I first started working in the Biotech Industry Cell Therapy Gene. Therapy were dirty words. You wouldn't you wouldn't go near that stuff with a ten foot pole in so I sorta felt like we were in the early innings of understanding. What the power of epidemics could be In in the main thing that I thought was missing and this was actually a great lesson I learned from my climate giants was. We were all about translational science at Johns Linking linking patient populations to biology in the drug discovery was the piece that was more enabled in certainly molecules. It was readily enabled But we were missing you. We had interesting targets. We had a very very interesting biochemistry and even early biology but we were really feeling our way through the dark on who the patients were that we're going to benefit from this and the early clinical testing was was really kind of Not really driven by the suspect by Margaret Strategies. In the ones that were that were there weren't necessarily You know deep enough or through well enough to really kind of pan out and so what. I noticed that we had we so we had multiple programs that were active as single agents New but we weren't seeing the blazing signals that you'd see in your targeted oncology like In the cases where were the driving mutations and that's not necessarily gonNA see in genetics but there but I did feel that. There was a way to to identify a biomarker driven context of drug development and it will take more effort and it was taken investment earlier. The situation that you entered here taking the job in two thousand seventeen coming back to be. Ceo At constellation mostly preclinical. Had there been some some clinical work done with these two programmes. Yes so actually. So I mean that was the beauty of it. It means so here. Here's a company that Has Two programs that are in the clinic that had shown single agent activity in cancer in so so? I found that just kind of on on on the face of it to be very attractive. Rates of the challenge was in what? Constellation didn't do a good job of coming out of the genetic partnership was really define. Hauer going to get these drugs. Approved that the mindset that we were in was more enroll patients in looks look for signal in them will figure things out. Rather than going to mapping out a true strategy but how to get a drug approved and we didn't really have the team to do it either. We had a a clinical development team of three people And so it was. It was really not very clear that the strategy was to sell the company to Genentech when that didn't pan out You the more F- into independent companies. All right it was still. It was still chugging along with that same strategy but without without the option to be acquired So I saw that as a very clear Just by just what needed to be done with so clear to me We had programs in the clinic. They were working. But but we didn't have the right after registration mapped out. You needed to zero in specifically on the right indication or the right patient population within an indication. Yes that was the fundamental piece of it. So so we a leadership team You know he said look. We're about ten years old at the time. Were coming up on our tenth anniversary and so we were not in a place where we were going to be able to take a long time to figure things out and so one of the things that we wrote out really a one-sentence vision statement captured. Everything that we would do In that was part of that was to launch a drug in the next five years And then also have a pipeline that was translation -ly driven where we'd be able to identify who the patients were n be able to have the biomarker strategies in place to pursue those first trials. We passed that we were out of the gate already with that needs to programs so we have to backfill some of that and that was the mindset that we went out with and everyone bought into that but but that made it super clear then so okay we want to launch. In five years the lead programs were both being developed and lymphoma. This was in two thousand seventeen. Your car keys. Were about to be improved Episode was ahead of us in in infomer- freeze each to their multiple different combination studies at Ron. Going WITH. You know different different arguing so it just became clear that if we're GONNA launch dragging five years. It wasn't going to be well and you've she put you've got other things to worry about too. I mean you got you know no more money. Research Support Conference Genentech. So you got a raise some money. You got to recruit some people in clinical development in particular. And you've got to I. I would imagine deal with all this external negativity in the world because I bet I like the first six months or a year. The first question anybody wants to ask you is like why did GENENTECH Walk that question? The other question was how is this different design and I don't get those questions at all anymore and so really happy that we were able to kind of you know traverse through that. But but you're right I mean but in part of getting folks to You understand in one invest in the story was to demonstrate that we could execute on the New Vision. That did require You know substantially more thing. The team You know we we brought in a new. Cmo We brought in a new head of business development and you. Cfo New legal We promoted somebody from within the CFO in so is pretty much. A brand new team Almost top to bottom except for a couple of exceptions and you needed to do a couple bridge financing. I mean how much money was in the bank. Run on fumes after a while. Yes so I mean. The great news is that we had very very committed. Investors in particular of the column group was Was tremendous and they you know. They had strong conviction that the science underlying science at Constellation was strong. And they were gonNA stick with it and not only did they stick with it but they actually Put together And this is even before I got there a syndicate investors of their their own limited partners to support the company. And that was that was a blessing and a curse at the same time because I think it also It didn't put pressure on the management team to really figure things out You know without that that that kind of cushion that they had there but they had raised post Raised one hundred million dollars Or at a year and a half period. You're not in danger of running out of money. Yeah but we didn't have a year of cash either so we had to figure things out quickly and we did have to raise extra capital and so so one of the things that had to do was to get these various In the three major investors in the company were still in the Column Group Third Rock and Rock and they all have very different ideas about how to create value And and getting them all aligned around a strategy to To ESSENTIALLY RECAP. The company was not simple and had to prove to them. That wasn't going to be possible to finance the company the way that we had been all the while In the science we had to you know get moving into clinical development to get moving in your direction to actually attracting capital But but you know I play ball with them to to to try to raise capital at kind of a flat round You know we weren't gonNA be able to do that and so we did. We did eventually you know could have all the same time kind of lightning struck a bottle we had new important. Clinical data emerge from One of the programs that were in the clinic At the time that we need to raise money And we were able to pull together. Probably it was the in two thousand. Eighteen is by the biggest crossover round in year. One hundred million dollar round and in an I drove up. Personally evaluation down Because I because it to get to where we need to get to Targeting hundreds of millions of dollars and I needed evaluation to be in a place that it could support. Not just that round but the future around the IPO. In onwards right. Because that was a crossover around you're aiming toward an IPO hopefully later in the year correct. Yeah that's right okay. Okay so what was that piece of data does that gave you. And the investors confidence there in early eighteen so this was a new direction that we took our easy extreme program into CPI 1205 and we recognize that That prostate cancer was an indication. Where it easy to end Hypersensitivity guess where we're there was synergy between engine receptor signaling Took us to thinking about where we can apply that tune. That was in second line that static castration resistant. Prostate cancer in once a patient fails and they are therapy. Usually take another one doesn't work that well and with a synergy that we're seeing in the preclinical work that we had done. That was a good application for that. That was outside of infomer- where where competitors for and You know the the first three patients that we treat it had these blazing responses they had their. Psa drop eighty percent in one patient. Had their own mess disappeared had A partial response by resist which is quite rare to see in prostate cancer. Not got it went pretty pretty excited okay. So and those are well established drugs. And if you're showing benefit above of aberration or ends Luta Meyde like that's pretty clear big market prostate cancer. A lot of people understand it that that's a story you can tell okay. But what about this bet program? And how did you end up on Milo fibrosis as the the right indication? It's in the meantime we had in the background we had we had this data and after merging and it was a little bit less slow-burn so we we were you know the the Achilles Heel venevision has always been on target cumulative irreversible And that's why we haven't seen more Advanced the clinic thrombosis Pini for those unfamiliar. It's like a decrease of platelets bleeding can lead to bleeding episodes. That's right correct. Yes and so we will. We noticed with. Cpi Zero six ten is that we had a very different profile. We did see on target beside opinion. Play the reduction but it was not irreversible it was not cumulative and we had a nice window to work with where we saw activity at a whole range of doses below the maximum tolerated dose where we saw You decided Pena as those toxicology and so we dug into investigating can what was behind that and that led led us to The biology behind a myeloid cells And specifically the differentiation. A MINUTE CELLS INTO MILITARY SITES. A military sites are the key cells that create platelets the ones that are that are being inhibited by bet nutrition but but there was an insight there again this is going back to the translational mindset that those are also the cells in the bone marrow that are proliferating that are crowding unhealthy cells that are damaging the environment by spewing out kind of inflammatory cytokines. And so that if we can if we have this window that we can take advantage of that no other Has been able to that. Maybe that maybe we could We could provide a respite to the bone. Marrow to heal in articulated that One of the clinical investigators was working with us a runoff in Mount Sinai said it was really Enticed by the idea in order to try it we we we. Kinda we Kinda took a flyer on it and we modified our anal- trial which we're about to bring to a close end. Just let him enroll patients in those patients all started responding to so we had these these two programs which were Kinda struggling to find a footing now. Both of them were seeing these blazing responses into different areas. That we cannot conceive before and Milo fibrosis for people not familiar. I mean it's just like the name Sounds Milo. It's the blood. Forming cells fibrosis scarring or damage. That happens in the bone marrow and it's often been thought of as a pre leukemia syndrome. But I don't think people call it that anymore. I mean it's it's really like its own form of cancer in early cancer and its effects quite a few people a tens of thousands. It's not a very very tiny indication and there's not a lot there I lot of people have tried there's Jack Affi- now the JAK inhibitor. But not a lot more so like I. I'm sure he's sizes all up and thought maybe there's a role for us. Yeah absolutely especially with the results that we were seeing. I mean the patients that Ron Hoffman and enrolled in the study. Were probably the sickest of the sick patients in these all these patients most of them had mutations that predict for non-responsiveness to Jack Affi- You know these patients were a very very poor prognostic factors role anemic. One of the four patients was transfusion dependent getting transfused as a result of their their bone marrow. Not doing its job. They were unable to produce. Enough red blood cells they relied on blood transfusions. Every every three or four weeks that patient is is now you know the last time we reported results in this patient was April. Seventeen than this patient was sixty nine weeks without a blood transfusion and counting At least six months now so so So that's been a those are the results that we're seeing But you know remember this was. We took a flyer on this. We amended our email protocol. It wasn't quite ready to be a full-fledged Ms Study we kind of we had one site. When investigators enrolling patients we really had some operational work to do to get that kind of moving in the right direction. But but jigger pause here you through studying your the cleanliness. Let's say of the side effect profile. Is that how you came to better articulate that mechanism about the activity with dampening down the NF Cap Abi and the Tgif Beta signaling? Which is a big part of the problem. Yes so precisely. I mean one of the things that we do know about about innovation that does have an effect impacted. Inflammation and inflammation is a big part of of m. f. But but the new insight was really this insight around Myeloid cell differentiation and The the the cells that are responsible for reducing platelets are also the cells responsible for a driving disease or causing the disease in. So we've we if we have a window there Where we can affect those cells without having rampant opinion without without was the key insight. And that's that's really played out where we're actually modifying patients. Disease in fibrosis is reversing Scarring the bone. Marrow is actually getting better which is a very rare to see So so it's really. It's really going to play out in the exactly the way that we hoped it would well so this you started with the science. I mean you had people who had been working for long long years on the science and now you're you're finding a patient population that that looks promising. And that's when you decided to prioritize this manifest study with multiple cohorts both the sickest patients and some who are treatment naive and this is the data that you are now preparing to present here at Ash. The abstracts are up. There live on the website. You've announced it. And this is the part that made me and I think the stock market say wow for for people who who have not seen it. You're looking at a variety of different end points. Here it's a little different with mile fibrosis than your typical cancer. Looking at tumor shrinkage. You're looking at things like spleen. Volume reduction total symptoms scores. But you're seeing ninety more than ninety percent like twenty nine of the. I thirty one patient seeing spleen volume reduction and total symptoms score. Two Thousand six hundred twenty eight patients seeing improvements in their symptoms ninety three percent. I mean wow and not just a little but like a lot of improvement. Yeah and so. These are the patients that have specific data referring to are the patients that have already failed Jack Affi- and really don't have any other options. I mean there's there's recently at another Jack Inhibitor. That was approved that looks very similar in. They have a bit more of a safety hurdle. So so there's really not much available to these patients And and sort of see these types of effects none not just in the spleen symptom but symptoms but also reversing their fibrosis in the in the bone marrow and then also seeing that translate into natural improvements in hematology function like hemoglobin increases now. These patients aren't as tired as they were. They don't need to get transfused as often patients have become completely transition independent And so those are pretty striking effects. The challenge In that context is that there's nothing approved in this post Jack Affi- setting in. So how do you think about the right? End Points How do you think about you know the right studies to do to get a drug approved even though we have really striking compelling data is not simple and we do have We do have things that we think our path forward there. But but that's kind of what led us then thinking about well We've got this ability to to have this impact on patients we at. You've already shown that we can combine six ten with Jack Affi- And have an effect and also do it safely and so that leads the Aha moment that we should perhaps not just focus on the jacka fi failures as our primary strategy. But rather shift or primary strategy to Jack Jack inhibitor naive patients so essentially move frontline and try to establish a new standard care and so there was a second abstract also published that showed our first four patients in the Jack in Hebron is setting all had a response both on spleen and symptoms in those. Those are the points that you'd use for an approvable study and so now all of a sudden it became crystal clear how to get the drug approved As well as a much larger opportunity to change standard of care and really essentially grow the IMF You know the you know the the number of patients that could benefit from therapy. M F canal grow Exited the number of patients who can't tolerate Jack by now now. We pitching access those patients and provide them therapy. And so I think that's the major excitement is all about. I think people really really excited about the second line data but the possibility of of doing something new in the first line setting even though it's a small number of patients I think has gotten really really everyone's attention treatment naive patients. Now it's still as you say. Small numbers four out of four four patients but That's really encouraging. And you're seeing a greater magnitude of improvement on the screen volume reduction and the total symptoms. Then you did. In the sicker patients which again is encouraging. And as far as safety goes the throne beside a Pina and the anemia that you might expect it's it's down. Below fewer than ten percent of the patients assessed yes point. That's right yet again. Speaks to the the differentiated profile of six ten versus other bet inhibitors and also versus Jacka. Fine I mean so one of the things that you'd expect with Jack. Affi- is at forty five percent of patients would have grade three four India in the first few months of treatment and insofar were worse. We're somewhere on ten percent And these were actually patients that were anemic to begin with And so again the that if we're we're actually able to Help the main reason. We're one of the main reasons why patients don't buy that. Could that could be tremendously helpful to expand the opportunity in okay. So you're going to present an updated cut of this data at ash correct. That's right yeah more patience with a little more follow up. Is that what we can expect? Yeah so what we'll have in the. We'll have two different presentations. One will be oral presentation. They'll be focused on our Jessica fire resistant. Second Line patients and in there. We have a very nice mature. Data will have forty plus patients that have no longer follow-up we would see the ability of the effects of six ten in a larger number of patients And then we'll have a first glimpse was in the ash abstracts in we'll have now ten to fifteen maybe closer to fifteen patients worth of data in the Jack in Hebron context as well. Okay Okay and this is setting the table for an ambitious new clinical development program like a pivotal set of studies in twenty twenty. That's right we're we're we're gearing up right. Now we're doing all the blocking tackling in the preparing to launch a pivotal trial or a phase three study in mid twenty twenty We also did announce that we've expanded a number of the cohorts in the face to study so there could be upside opportunity. The where or those two cohorts could lead to some regulatory interactions. That means still exploratory. But there could be offset opportunities but the base cases that we'd start a phase three in mid twenty twenty. I mean it's really all happened pretty quickly. I mean you know you've only been here for two years in your return or two and a half years coming up in three years yet. You know this thing. Was you know it was kind of a little drifts for a while? You know it got on track. You took this thing public at fifteen bucks a share. I think as of this recording or somewhere around forty. Maybe you've got a clear path. Forward here with Milo fibrosis. We haven't even really talked about easy. H. Two but that's still alive to. Where do you think this thing is going to go here in the next four five? You're not going to quit after four years. I I tell you. That's not the plan. That's not the plan. The most proud about really is is the team that we built I mean it's truly a remarkable group of people That we have you on the executive team as well as You know people supporting them. and we all get along really well We all understand each other. We have our moments but everyone knows becoming a good place in the all rely on each other and help each other And that's a major portion of the culture in a major major reason. Why I think we've been able to Chievo achieved and the goal is to keep pushing that Where we've could transition the company into from early development too late development last couple of years. The goal is to take the next step into going to build out internalized Those late development pieces also think about commercialization And so so. That's what we're building towards you know like several other companies ahead of us have done and so there's a roadmap. I I think to follow their but but You know building that team in having the Sustainable Jin and you're right. We haven't talked much about easy to have multiple each two inhibitors. That are now in the clinic as well as a discovery pipeline where we Reimagined rethought some things but we think that it's sustainable and so our vision is to create the next flea integrated by company. It's really awesome to hear jigger and I can hear it coming through your voice that that resilience in that it takes to get to get through a rough patch because all companies through it at some point or another. Yeah that's right and then the enemy comes from those early days. Spent in my parents store the resilience aspect of it. Well thanks very much for joining me. And Best of luck Hadash. Okay thanks a lot. I really appreciate it. And and good luck to you on your Your next flying. Okay thank you. Thanks for listening to the long run. A production of report or Assad of stepper media was the sound editor. Music comes from. Da Wallich see you next episode.

Constellation Genentech CEO scientist Nanna systems rutgers NANNA systems New York City partner New Jersey Luke Timmerman jigger Mark Levin US Columbia DOT COM Constellation Pharmaceuticals
Closing Bell Brief for Monday, October 7th

WSJ Minute Briefing

01:25 min | 1 year ago

Closing Bell Brief for Monday, October 7th

"Are you hiring with indeed you can post a job in minutes set up screener questions than zero in on your short list of qualified candidates using an online dashboard get started today eh indeed dot com slash W. J. that's indeed dot com slash W. S. J.. Here's your closing bell brief for Monday October seventh three million businesses for hiring post a job today at indeed dot com slash higher twenty six points and the S&P five hundred was down thirteen the SNP was weighed down by losses among shares of food and drink producers constellation brands fell two point many also slipped more than expected in August and shares of GE closed virtually unchanged following news the company plans to freeze pensions for about twenty thousand employees. We have more details on today's market activity plus market analysis at wsj.com and the WSJ APP indeed used by they are willing in the newsroom of the Wall Street Journal in New York. The Dow Jones industrials fell ninety six points and closed at twenty six thousand four seventy two the Nasdaq finished off in six percents while lamb west and holding slips two point four percent and Mandalay international finished down one point six percent economic data released on Monday heightened investors worries about the direction of the global economy European auto parts maker continental is closing production plants in several countries factory orders and.

Wall Street Journal constellation brands SNP GE wsj.com bell Mandalay international New York W. J. four percent six percent
No, the Corona Virus Did Not Sink Sales of Corona Beer

Business Wars Daily

06:25 min | 9 months ago

No, the Corona Virus Did Not Sink Sales of Corona Beer

"Usps increasing so now is the time to say with Sam pro online from Pitney Bowes starting at just four ninety nine a month get a free thirty day trial and a free ten pounds scale when you visit. Pba DOT COM SLASH VW daily From wondering I'm David Brown and this business wars daily on this Tuesday march tenth. Wow It's been a long few weeks as anxiety's been mounting over this corona virus no surprise that the viruses hit many businesses especially those with global supply chains in companies that sell rely on travel. But there's one company hit hard because of branding. Yes you guessed it that would be corona the maker of beer and hard seltzer. It's sales slowed tremendously because many Americans. It seems are confused about the association between the beer and the virus. Oh Com on. They are not the last couple of weeks. Misleading story went viral. It implied that Americans are so dumb. That many of us believe the beer can cause the virus that message spread by a certain less than honest public relations firm seemed to indicate that sixteen percent of us are confused about the relationship between corona the beer and corona the disease. That's killing people. It also implied that Krona's beer sales had fallen because of the virus. The story was so convincing that many major news outlets picked it up including CNN. The New York Post and vice among others not surprisingly twitter went Gaga over this story. None of it's true. Let's talk for a minute about the difference between correlation and causation. Shall we correlation means? Two things are happening Ed once but may have little to do with each other causation. Means well okay you get it. This is key to what happened. So a firm called Five W. P. R. published a poll of more than seven hundred Americans. That poll asked questions about the corona virus and about corona the brand one of the findings. According to this firm. Thirty eight percent of those polled said they would not by corona beer under any circumstances now as a writer for the Atlantic noted the PR firm then went on to state without proof. The reason these respondents won't buy corona is because of the virus not so in fact many or even all of those thirty eight percent may not have been corona drinkers to begin with as was reported in the Atlantic. They might not by corona regardless. But that's not how the PR firm chose to sell it in fact that firm trumpeted the so-called finding saying who would want to go into a bar right now in order corona well in in fact corona sales have fallen. That's in part because sales of many beer brands are down in China at a time. When beer sales usually climb we're talking about the lunar brew year a New Year Abn Bev which distributes corona outside of the US forecast day ten percent decline in sales in China because people are staying home. That's according to the fact. Checking website slopes so that particular sales declined does appear to be a corona virus effect. Just not related to the name of corona beer. What got much less play as a statement from Constellation brands which distributes corona inside the US in America Constellation said. Sales grew five percent in the four weeks that ended February sixteenth. That's double the sales trend for the last year. Snoops reported constellation clearly felt it was necessary to correct the wild misconceptions in a press. Release the firm stated that its customers quoting here understand. There's no link between the virus in our business. Exactly giving constellation brands even more headaches. However was the unfortunate coincidence between its long planned on brand marketing campaign for hard seltzer and the growth of corona virus. Constellation is spending forty million dollars on a marketing campaign to launch. Its New Corona Hard Seltzer in North America according to industry publication food dive. It's slogan coming ashore soon. The new campaign coincided with the first big warnings that corona virus was coming ashore to countries outside China including the US. Twitter of course reacted with many complaining. That coronas campaign was in bad taste. The hard seltzer market is booming however rival white clawed did one and a half billion dollars in hard seltzer sales last year according to CNBC and Constellation is sticking with its campaign but we bet that it's marketing folks have taken more than their fair share of headache medicine. Really as the corona virus panicked continues be on the lookout knock just for symptoms of the virus for symptoms of viral stories which may not be everything they claim to be from wondering. This is business wars daily. Hey listen if you like our show. Take a second subscribe that way. You won't miss a single episode. Thanks so much for listening. I'm David Brown. We'll be back with you. Biz episode business. Wars daily is sponsored by Centro online from Pitney Bowes. Usps shipping rates are increasing. So now is the time to save with sin pro online from Pitney Bowes. Starting at just four dollars ninety nine a month. That's right it's just click. Send and say for as low as four dollars ninety nine cents a month. You'll save up to forty percents off. Usps priority mail plus for being a listener of our show. You'll receive a free thirty day trial to get started and a free ten pounds scale to ensure that you never overpay. You can also calculate exact postage online print shipping labels and stamps right from your computer and scheduled packaged pickups and track shipments from departure to a rival. So you can avoid those time consuming trips to the post office. Believe and save up to five cents on every letter and up to forty percents off. Usps priority mail go to PB DOT COM SLASH VW daily to access this special offer for a free thirty day. Trial plus a free ten pound scale to get started. 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Barnes & Noble For Sale

MarketFoolery

18:56 min | 2 years ago

Barnes & Noble For Sale

"The episode of Margaret fuller is brought to you by slack slack as a collaboration hub for work that make sure the right people in your team or always in the loop and key information is always at their fingertips and you can learn more at slack dot com. It's Thursday, October, fourth, welcome the markets, Hillary. I'm Chris hill joining me in studio. Seth, Jason. Thanks for being here. You're welcome. Sorry to pull you away from lunch. We had a time mixed up. I was you were mid meal. I was like, did I forget to tell you the time to come chimney chango refried beans, reheated into my craw. We've got some earnings news. We've got to start with the stock of the day and miraculously. The stock of the day is Barnes and noble shares of Barnes and noble up more than twenty percent today on the news that the bookseller is looking to sell itself. They're basically putting together a select committee to evaluate offers, shouldn't have done this a while ago. Well, they tried to do it a couple of different times. They tried back in twenty eleven. They tried in twenty one at imagine that. Well, there were people interested, and I think it was not at a price. Ice that that the company was willing to sell itself out. So we've I'm looking at it this morning, wondering what the price should be. Usually there's something here, some kind of an asset that maybe you know your cigar, but picker uppers would be interested in, but you look at this and there's not real estate here there's, you know, least stores. There's, you know, there's some inventory and stuff I have. I looked at this. I cannot for the life of me figure out why anybody would pay more money for this. Now, the hope I guess if you're buying this is that you can somehow fix what's going on. Bookstores actually aren't dead smaller bookstores are doing well. And one of the reasons I think is that Amazon is terrible at books ironically, because they started with books, right? They stole their name from a bookstore in Minneapolis. Amazon was a bookstore also a river. Yeah, and but. The bookstore business that works right now is sort of small neighborhood, independent bookstores, and Barnes and noble of course, came along and clobbered a lot of them. So it'd be great if the the original owners who got killed by Barnes and noble businesswise were the ones getting revenge now. But I mean there was a couple of years ago, I guess Barnes and noble was maybe thinking about going this route, but really what they've got is sort of mall and strip mall, bookstore type properties, right? The big same old, same old. And I think that's, that's just toughened today's market. The sad thing is, I mean, I like going to Barnes and noble with with my kiddo because when we need book recommendations, we can get them there as opposed to Amazon where I get literally last time I try to find children's books for my kid. I got inundated with stuff that was like, rush, Limbaugh's children's book series, swear to God. Thanks a lot. Amazon for nothing. I thought you were going to say you were getting stuff like a gentleman in Moscow just like these like very well regarded adult books, clueless docile at. I mean, I, I'm stunned by how worthless Amazon is for finding books bookstores. And then unlike maybe a lot of Americans when the very good staff at the Barnes and noble up at Tyson's corner, help us find books. We buy them there. We don't go home and order them to try to save a few pennies at believe in paying the people helped you out. But I think for Barnes and noble work for from a buyer standpoint, and somebody buys a company is the I don't. I don't know where they go. I think you have to try that small format and maybe you need to somehow right size the the store base, but I don't know how you do that. The one, the one in Tyson's corner here in the DC area. Looks like it does fine. It's always full. The weird in an area where that mall is always fallen. As we know it across America malls are empty a lot more than they used to be well. And that was the case for a long time with Barnes and noble that they had certain locations, and I forget the exact address in New York City. But there was like one featured behemoth of a location in New York City. That was remember it was printing money essentially. And so for a long time that was the story with Barnes and noble like, gosh, if they could just look to get more efficient with their low locations, not expand everywhere. As you said right size, the business and. Stead, they, they went down the road of trying to compete with e readers. They had the whole investment in nooks and it was you had to try that. It wasn't a bad idea. They just couldn't pull it off. Yeah, and they knew it wasn't working years ago years ago and lost money for a long time. So and then the spun out the educational bookstore part, right? Which also wasn't been doing well, and so it's really tough. I think it's tough to do those big stores when people are not driving to the mall or to the strip mall for books anymore. In the newer kind of urban areas where people are buying books, they wanna walk past it in that means a small bookstore. Maybe there's room for a national chain, opening small bookstores who could probably do a better job of it, and maybe they should buy this Starbucks right there already have a relationship them and their what if they sold what Starbucks that we're going to open a chain of the small bookstores. Maybe they could do a better job because they've got their in these places in small. Okay. Nations they are, although as a Starbucks shareholder, I, you don't want them doing I I don't think I want them do in that. I feel risky there better ways for them to invest their money. I think there are, but I'm just pointing out that. I think that's the only strategy that's going to work, and I don't know if it works at the twenty percent premium price that Barnes and noble as commanding today, right? That's really the thing that's amazing to me is looking at Barnes and nobles market cap. This morning's like four hundred million yesterday or yesterday, four hundred million today. It's closing in on five hundred million and one hundred and there's for what is I guess? Amazon like burps one hundred million dollars market cap difference every five minutes, probably right. I think that's right. But I looked at this and I thought, gosh, if if the stock wasn't taking off, I could see there is a price at which Barnes and noble makes sense as an acquisition for some company. The fact that it's twenty percent higher, I think reduces the likelihood that they find a buyer. Yeah, it stuff to figure out. What's that name really worth? Do people really care? What is the expertise worth? Because there aren't a lot of hard assets underlying this, at least as far as I can see if somebody else knows what those hard assets are, please let me know. 'cause they sure didn't jump off the balance sheet at me. So drop us an Email market full, read full dot com. Title at Seth is an idiot. We'll go in the Ben with all the other side of the male. Exactly. How are we separated constellation brands up about five percent today? This is the parent company of a bunch of wine brands, liquor brands, probably best known as the parent of corona. You know, who likes drinking seems like everybody does a lot of people myself included second quarter results came in higher than expected. That's boosting the stock today. I'm curious what you think of this quarter because one of the things that's getting the headlines for constellation brands is they made that recent investment in canopy growth is looking into candidates and they went out of their way to highlight pot stock. One of the pot stocks extraordinaire which doesn't actually have much business yet because they're waiting, you know, for for the recreational market open up in Canada and then hoping in the US. Right? They have some medical marijuana sales right now, but I think it's canopies like eleven billion dollar company with sixty million sales or something. I mean, it's that was the thing that constellation highlighted, they said, oh, and by the way we have over one billion dollars in unrealized, James xactly from our investment in Bonn, some stock and they need to market up. So there's a billion dollars a fake earnings here unless you know they were selling into this, but they're not selling into this mania. Are they? They're gonna put four billion dollars more into the business right by four billion more. So as I understand canopy and I am a newcomer to canopy their idea, I think that the story they're selling and I say they're selling a story because I think that's what their main product is right now is that they want to be like constellation. Of of pot rate. So there if you look, they were issuing their issuing a press release every couple of days for a long time now, and you look at some of these companies, they were buying, don't do much in any look at the people behind some of these companies, and they look kind of suspicious. So I'm sorta on is that a little pot company you bought down there and Chile or this one up here in Canada, really such a great business, but everybody seems to go, you know, it's going to be so this is going to be the constellation of pot. We're going to have all these different pop brands and constellation wants in on that crazy thing to me is that you would take like four billion dollars if your constellation and put that in here. You've already got a pretty good stake in this company. If it by some chance turns out to be big and important. You own a pretty big chunk already. I mean, constellation, you look at their margins, they can sell anything to anybody, right? They have people drinking corona for crying out loud. Not a fan of God, so it's what it's the cores of Mexico or or is it the natty Boh? I'm not sure what it is, not sure, but people drink it so that obviously they can sell anything to anybody if it's as blue as they do a good job at they get great cash flow out of this by your own shares for crying out loud, you do a great job. I don't know why you need something is is as speculative as marijuana, especially with an investment that is to attempt to your current market cap or something like that. So that was the thing that makes the canopy investment all the more puzzling. When you look at this latest quarter from constellation brands. Beer sales on the rise shipments on the rise, same for wine and spirits. It's they're selling higher margin stuff. You'll Coronas expensive. I mean, it's basically water and it's expensive. I don't know why they're not sticking to their knitting on this one because they're doing a good job and it's not exciting. I well, I mean to your point, they already had the investment in canopy grow there. I'm not sure why they felt so confident in it that they felt the need to increase it to the degree that they did win. You know, some borrowed money. Sure. It'll all work out. I'm sure if it works out fine. Everyone will say, see you idiots. There didn't know anything. And if it doesn't work out fine, nobody will remember that we lightly pooh-poohed it constellation just sell the booze. Everybody likes everyone likes drinking. Well, there's certainly enough of it, but you know, here's here's a good thing as investors because like you. I'm not. I'm not an investor in cannabis. I. I am however, very curious to see how all of this plays out. And I think that's going to be one of the more interesting things to watch over the next twelve months as we're now what two weeks away from the legalisation kicking in in Canada. We have four more still trying call Canada for four more states in here in the US have various levels of legalization on the ballot in the midterm elections. And so now we're going to say it's like, okay, everyone. It's not just canopy growth. All of these companies have been pushing the story, pushing it a trend, and it is largely worked out for them and now it's to to use a tired glee shea, it's this is where the rubber meets the road. And we're going to see who who speeds ahead and who ends up as roadkill thing is with with with booze and with drinking. I, I used to brew beer beer is actually, you know, kind of tough to make, especially in the quantities. You might wanna drink it. Same thing spirits. You can't. Potus really easy to grow. It's a weed, and I don't say that because I'm growing pot. I say that because I, I ride my bike through Iowa quite often and on the small roads, you're still seeing ditch weed from the forties. You're seeing him from the forties. It is impossible not to grow pot, and so I don't understand why the marijuana industry doesn't just become a really fragmented. Everyone likes small brands now. Right? So if there's brands, why would it be big? Wouldn't it be a bunch of small, artisanal? Nobody can see my finger quilts in the podcast, artisanal brands and then and then the underlying product is just an agricultural commodity. I mean, if you're growing pot, you want to grow it in Iowa, you will have no problem getting the costs down a long way. Quick shot to slack for supporting today's episode of market fully. Slack is a collaboration for work, whatever work you do and with slack, the right people in your team are kept in the loop and the information they need is always at their fingertips. Teamwork on. Slack happens in channels and it lets you organize conversations and information around projects offices and teams. Because everything you need is in one place, it's faster and easier to get things done. And with slack, your team is better connected when Seth and I were working on stories today, we're doing on slack when south wanted to know what time we're going to start taping. She hit me up on slack and I stepped away from my computer and and didn't see that message, which is why I had to interrupt your lunch. You horrible. I look, I'm horrible for reasons far beyond anything. Reheated bounty. Slack makes it easy to share files whether it's documents, links to articles and it works with Google Drive and Salesforce, and you can tailor it to work with over one thousand APs slack where work happens, find out why at slack dot com. As I said before, our Email address is market full, read fool dot com question from Lance price, who as I always enjoy market, fluorine motley fool money. Will there be any podcast listener meet ups in Denver? Yes, there will be, but everyone's going to be so stoned that you won't get any questions answered. I guess. We'll see. It's going to be Tuesday, October twenty third. So if you are in the Denver area, Email us market fully at full dot com, and we will send you all of the details for our listener meet up. That's Tuesday, October twenty. Third in Denver, that really is one really is. I don't think those guys'll be stoned. Actually. I'm just my experience. My last experience in Colorado. I was out there to run pikes peak marathon. The hotel room is across the parking lot from a marijuana store, and the parking lot was so full all day that it really scared me. Did you partake to to help yourself with the run either before or after now? That is not something I'm interested in. I don't. I don't. Yeah, I bet someone did. I bet at least one runner was like, I'm in pain and I'm going to reduce the pain. There were plenty of people partaking downtown. I'll tell you that much earning season begins next week with as is the case the the big banks kicking off. And I'm curious as we head into the final earning season of twenty eighteen what if anything you're watching, whether it's a company or an industry or anything. I'm interested to see how much making America. Great again is going to. Have an effect on a lot of the companies out there. They're paying a lot more for steel manufacturers more for aluminum, they've got tariffs, and so I'm interested to see when that finally starts to hit home. I mean, you read a lot of stories now in the the various newspapers of smaller businesses that are struggling. And so I wanna see how that's going to flow through companies. Like, you know, titan international that tiremaker while rubbers expensive steals expensive agriculture is getting pummeled because of tariffs and trade wars. Steel and aluminum, you think there is an attractor and a tractor tire, or we will set there's a lot. So what is this going to do to some of these companies I'm going to be looking for that retail does not interest you at all? Maybe it's just me, but ended the the holiday season. I'm I'm getting the popcorn and I can't wait to see who's doing what. Yeah, we won't. We won't know much about that for another few months to see what's happening. But apparently Americans are big on buying everything right now. So I'm guessing that you'll see the usual headlines. I'm going to make an easy prediction which is at Amazon is going to come out with some kind of wacky news release about, you know, drone this or weird delivery that or something. You know, the kind of thing they always do right around the Christmas shopping season in order to get free press. We're going to see one of those. I think we're going to see one of those in terms of the second headquarter announcement, don't you? You think they'll, they'll tip it for that. I mean, they have maintained all along. It will come before the end of the. A year. I don't know why. Maybe that'll be the way they get the buzz. I mean, that's, I mean, certainly when you look at the betting odds and right now or I shouldn't say the last time I checked, which was a few weeks ago, northern Virginia which was was literally the betting favourite. And one of those locations, there are few approved locations in northern Virginia, and one of them is low. I'm going to say two tenths of a mile from where we're sitting right now. Which one is that it's over by the Hoffman over by the movie theater that that's big enough for them. Yeah. Yeah, really? Yeah. I thought that campus is bigger than that. That's my drive to work that's going to well, you know what? I would love it. If they actually one of the things that I would like about Amazon is it they say they want people to be able to bicycle and stuff if they moved there and actually get some bike lanes through, I live only ten miles from this location and I can't bike here because the roads are awful, and there's absolutely no way to get in here on a bike if they could do that, I would be so excited. You'll be singing their prices. I would. You'll forgive them for the book thing. You sent her law, forgive Jeff Bezos for his haircut anything. How dare you? How dare I dare you begrudge any person to Erica. I know I'm on my way to where Jeffs Harris you could see it. You could see now on the podcast. You can go to our YouTube channel and see. Thanks for being here. Welcome as always people on the program may have interest in the stocks. They talked about in the motley fool may a formal recommendations for against him by herself stocks based solely on what you hear. Let's going to do it for this edition market fully. This show is mixed by Austin Morgan. I'm Chris hill. Thanks for listening. We'll see you next week.

Barnes Amazon constellation brands marijuana Canada Seth Chris hill corona Slack Barnes America Starbucks US Margaret fuller Hillary Denver New York City Jeff Bezos Tyson
 Jamie Dimon = The last Targaryen  Buffetts smart money stock sale. Constellations booze blueprint. JPMorgans last dragon.

Snacks Daily

17:49 min | 8 months ago

Jamie Dimon = The last Targaryen Buffetts smart money stock sale. Constellations booze blueprint. JPMorgans last dragon.

"This is nick this Jack and this is snacks daily. It is Tuesday April seven. Great to be back. It's actually a short week. Friday is a religious holiday that we're using it as a public audience. So we're going. We're going to roll with it where you enjoy snacks. Four days at a five on this one. Meanwhile it's Tuesday. This is expected to be an awful week for America and for the World Public Health Wise. We're we're talking peak virus infections and deaths this week sadly in New York City and next week probably the rest of the country but yesterday was a great day to start the week. Stocks wise after investors are thinking. This week we could turn the corner with the virus. The Dow surged sixteen hundred points to start the week and Jack and I managed to whip up the best snacks daily. We've ever done our first story. Nick you're not bragging about your pre checker clear membership anymore are you? D- is a clear used to get me on the plane before I got at the airport with air traveled down ninety five percent in the USA. This past weekend berkshire-hathaway Jewish sold its docking in airline. We're talking about what it's like getting dumped by the smart money for our second story. We have found the last financial targe. Aryan well my driven ends J. P. Morgan Chases. Jamie diamond is the last ending bank. Ceo who reigned during the financial crisis. And he's finally commented on the current crisis for our third and final story. Constellation brands is the complete booze cabinet. I believe they liquor before beer before wine and you're I don't think that's how it is just runs. Whatever IT GOES. We are mostly ignoring its earnings reports. Because it's irrelevant. From Pre Corona virus and we're focusing on one slide instead from its presentation of with slide number twelve because constellation understands US period before we get into all that we notice something. Actually Nick notice something funny on Apple. Tv plus this past week. That's apples monthly subscription to its own apple created. Shows that like no one thought they'd be doing three years ago actually apple. Tv plus is also one giant and five dollars a month apple advertisement. Can we talk about episode two of the Morning Show on Apple? Tv plus? I watched this six months ago. Nick watched it last weekend. We're talking Steve. Corral and Jennifer Aniston. They're the anchors of a morning show. There's a lot of adorable tension between other people on the show but then we also noticed some very specific things co starring in the show. We actually noticed some very sleek and expensive tech gadgets peppered and salted throughout the episode. We noticed half a dozen iphones on this show. A couple macbooks and even an apple push notification strategically placed in one scene. We didn't think this was a coincidence. We jumped in snack style. Turns out apple products are visible in thirty two camera shots per episode on average for the TV. Show the morning not only that. An apple logo is visible in about a third of those shots. According to the Wall Street Journal Apples double-dip enough charging us five bucks a month and they're making his checkout apple ads every seen Tim. Thank you for snacking with us. Just let us know how you pulled off the most product placement apper. Let's get your stories daily way. Snack Foods Candy. They don't reflect the views of robinhood family. Historical information just so recommending any secured east. It's not a research report or investment advice to offer or sale of a security digestible business. News view financial. Llc member FINRES IPC for our first story. Warren Buffett just down airline stocks really aggressively. It's the biggest smart money. Move this crisis so far now Berkshire Hathaway. You may have heard of elusive name. Sounds like more like a like a Meat Company. It's actually company with a publicly traded stock and it's also including a lot of other publicly traded stocks within a publicly traded stock. This thing is like a really fancy smoothie March down to project juice and whip up the extra fancy like us I e Bow with the free range be pony unlike the Chia flax hybrid bland really expensive. And there's a lot of ingredients again as we had a bad experience getting a really expensive smoothing once and then we had to save it for like a week. Warren Buffett is the leader of Berkshire Hathaway. He is eighty nine years old. And he's a famous stock picker. Perhaps the most famous picker ever now with berkshires money. He's able to buy the stock. So if you own Berkshire you indirectly own a lot of companies that warns all of you owned companies in the insurance industry like Gyco Yonne companies in the food. Industry like Kraft Heinz or Oreo maker Mandala Berkshire hathaway you also own. Some finance companies like Mastercard and Goldman Sachs and Joan chairs and tech which. Actually it's basically just apple. It's the only thing NETAPP now. Warren's like where's the CD ROM in this ipod the only thing you could plug in so is the only thing he bought shares of Berkshire you also own stock of airlines like Delta Southwest at American Airlines. Jack what's going on with the last part of Warren's investments last week Berkshire hathaway sold four hundred million dollars of the Delta Airlines and the Southwest Airlines stock owned. Now you may be thinking. The reasons are obvious but the data. Reveal something even more shocking. Yes say the Transportation Safety Administration publishes every single. How many people are flying and going through? Tsa Security this is actually incredible. They do this and they don't take their belts off for quite diligent on Sunday. One hundred twenty two thousand Americans went through. Tsa Secure a year ago. Two point four million Americans went through. Tsa Security at the same day. That's right this past Sunday. Compared to the Sunday a year ago there was a ninety five percent drop in Air Travelers. And that makes it emphatically clear why. Delta stock is down sixty four percent last month and a half and southwest airlines is down forty seven percent so if Berkshire is selling after he's sixty four percent drop for Delta that means Berkshire is taking a huge loss on this investment. If Warren Buffett's Berkshire is willing to take a huge loss. That means they didn't think the rebound in airline stocks was probably going to happen anytime soon. Basically accepted a lawsuit Jack. What's the takeaway for our buddies over Berkshire Hathaway Warren Big Time Snack? Warren Buffett is the biggest financial influence or snacker when you hear a term associated with Warren Buffett smart money that's referring to experienced investors. We're talking Hedge Fund Managers Mutual Fund Managers Venture Traders. More money can also be your buddy. Who's smarter than you and you WANNA know every time they're about to make an investment so that you can make it too but the funny thing with institutional smart money like all those funds mentioned is you can't typically see whatever it is they're trained no but Warren Buffett is an exception because he runs Berkshire hathaway a publicly traded company and they're forced to disclose publicly when sell big things like Delta or South West Stock. So that way we know what the smart money is doing and Une Shockingly Word that Warren was bailing on airline stocks that made other investors on airline stocks to. We're looking for signs that the smart money is buying stocks. Not Selling for our second story. People are aggressively buying constellation. Brands is booze right now. But we're focused on one slide from the earnings report. That perfectly illustrates what consumers want right. Now No joke jacket. I printed this thing out. We're GONNA throw it up on the snacks fridge. But in the meantime can we talk about beer wine and spirits. According to Constellation Brands Research. Fifty six percent of American consumers are drinking at three right now. I'm only doing two out of three. I'm not telling you which isn't that convenient because funny thing about constellation brands. They make all three of those. How convenient oh by the way constellation doesn't judge what you're into so they also invested in a cannabis company. I think they need to morally bound themselves by selling produce juice cleanses in a few years in the meantime we checked out their earnings last Friday. Sales rose six percent last quarter. Honestly no we don't care because last quarter's earnings were from the pre corona economy world and that doesn't matter for companies any one thing we did notice though. Is that if you look at the data coming in the liquor sales right now. Constellations ENTIRE LIQUOR CABINET IS UNIQUELY FIT for the corona economy alcohol sales over on the US or fifty five percent in the US at the end of March and there are a few in particular that are living their best lives case in point. Let's talk about ready. Made cocktails up one hundred and six percent not totally. Sure what this means. Is this can marguerite in there. It's kind of like vodka rose as Spritz hard lemonade think I believe they say a smirnoff ice before Rosa. You'll be okay so ready made cocktails constellations winning now in the Beer Category Beers been losing shelf space for years but mainstream beer sales are up ninety percent right which fits really nicely for constellation. Because they're highly horrible. Twenty four packs and Medella Corona are flying off shelves people hurting their backs lifting those things. You need twenty four twenty four packs. You're supposed to lift with your legs. Not your bath finally craft beer sales. They're actually down seventy percent during the Korean economy because so many bars where most of their sales occur are closed. We're talking seventy percent of the income for craft. Beer comes from those bar and Constellation isn't selling the kegs of the extra heavy stuff that you pretend to understand what all those metrics mu. Hey Tony. What's the hops density on the quadruple? Again I'm taking notes over here so beer trends wine trends booze trends. They're all working for constellations. So Jack what's the takeaway for our buddies over at Constellations Constellation knows the five keys to a millennial consumer's hearts snacker Jack and I fell in love with slide twelve their earnings reports so much. So we will tweet this out when we're done getting an off of our fridge funny thing about this slide. It's pretty amateur. Powerpoint is like there's a lot of overlapping lines. There was no designer involved. The INTERNS OVER CONSTELLATION. May WanNA step up their game but this slide is entitled understanding the consumer. It's broken down into five elements better than any company. We've ever seen understand our generation of consumers so first element to understanding the consumer. Is THE UNIVERSE. People want to feel understood. The second is betterment you. WanNa be consuming things? That are both functional and emotional and their benefits. The third is constellation. Called the new value equation is not just pricing quality. It's social responsibility. Sustainability an ultra convenience. That matter the fourth is experience is everything. They want their brand encounters with their products to break up the monotony and stress of everyday life. Finally consumers want trusted transparency. Basically give me some honesty corporate. Bs Now we've seen other companies reported on snacks. Do some element of this like Nike or Patagonia glossier. All they do some part of it and we'll be watching to see if constellation can capitalize on all five of those elements in a single drink. The ultimate mixed drink if you're honest knacks challenge on a run right now. You gotTA turn around. Because we're halfway done for our third and final story. Jamie Dimon Aka last targe. Aryan just spoke out about Kobe. Nineteen and his bank J. P. Morgan Chase shows why this isn't a financial crisis that we're he were there by the way financial mic all. The dragons are dead looking around. I don't see any over here. Nobody is seeing a dragon in three hundred years. Actually there's one still left. The name is Jamie D. as in dragon diamond correct. Jamie diamond is the only big bank. Ceo During the financial crisis. Who is still in charge of one of America's top banks? We're talking about the kind of Guy. He's got a heart tattoo on his left. Calf Ben Bernanke. He's got one too. If you went through the financial crisis you got one. He saw the financial system. Break Two thousand eight Yep then. He saw the economy tank year late. Oh Yeah and then. He watched ten years of a slightly slower. Cover did it all as CEO of J. P. Morgan. Oh by the way. He is recovering from a fresh heart surgery but he finally spoke yesterday in a letter to shareholders about the corona economy. Nothing better than a goal fashioned Ryan on the pay per letter shareholders. That's right it wasn't a tweet. It wasn't a zoom. It was a letter to shareholders my old school. Atticus finch dad in Vermont. Keep it classy Jamie now. Here's the key thing Jack. I noticed this. He referenced. A bad recession potentially coming but he pointed out that his bank is ready for that battle. And that's important G. P. Morgan has simulated a quote unquote extremely adverse scenario. This doesn't sound verse at all very adverse if the economy shrinks thirty five percent this year which would be big J. P. Morgan would still be able to lend to businesses. That was encouraging. And that is why Jamie Dimon refers to his bank as a port in the storm. Jamie diamond loves saying things like old school expression. We're like you spend a little too much time trying to become a hemingway during this whole work from home situation. Jamie port in the storm is apparently like a refuge from chaos where you can find common comfort it's beautiful. We love the metaphor next time. Let's put this into more poetic prose where you're going Jamie diamond. Also stressed the importance of planning right. Now Yeah how and when the economy is going to get started because people need to get back to work if you're J. P. Morgan employees. Right now you probably WANNA hit up your team. And say hey. I'M GONNA need to expense a lot of things. I'm going to be comfortable in this office. And a couple of months now. He also stressed of course because he loves to Brag about his institution that JP Morgan is so strong he is not even going to consider cutting the dividend. No unless that terrible extremely adverse scenario you just described happens for the rest of this year. Quick Reminder the dividend that quarterly cash check that shareholders get sent from a company. Just like an Anna would give you in the mail but you only send dividends if you financially Ken if you have like prophets and plenty of also reminder. Jp Morgan is the second biggest bank in the US. The number one most I will bank in the US and the number one most profitable bank in the United States by the way before we hit the takeaway. We should mention J. P. Morgan Chase has been criticized for not ordering work from home sooner. They probably could have saved more employees from catching the buyer. Spoiler alert on that takeaway. Oh Yeah J. P. Morgan was a little too busy making record stock trading during that period. So Jack Let's take away for our buddies over JP mortgage banks make our dollars go further and we need that more than ever snappers. If you're trying to picture banks right now picture them like heart that pumps money through the entire economy so it can get to where it needs to go but nick last crisis in two thousand eight and two thousand nine banks were broken. They crumbled under losses and then they needed bailouts and then. Those hearts couldn't money throughout the economy. Now the silver lining to the terrible banks from the last crisis needing a bailout. Yeah is that intense regulation followed and now because of that. The banks are stronger than ever. We're talking fewer risky loans. More cash on hand to handle another crisis. They've got their Mojo back. They've done their ties. And it's a little more casualty office right now while the viruses here banks are crucial to lend out rescue loans. That businesses can survive until this is over and when the viruses gone banks are crucial for loaning out to businesses. So they can rebuild the one of America's biggest strengths to the survive. This crisis is our strong banks. Jack in your whip up the takeaways for us over there please irks. Your hathaway is a stock that owns lots of other stocks. It's also the smart money and the smart money just sold off its airline stocks. Yeah bad time for airline. Stocks are second-story Constellation. Brands is serving up. Just the right drink that people want in the Korean economy. They all so no lineal consumers. Better than millennials. No themselves very true. Third and final story J. P. Morgan Chase has this same. Ceo Today as it had in the last crisis Jamie Dimon Jamie Dimon. And he's proud that his bank is strong enough to support the economy when it needs it most a last target area now time bar snack fact of the day. This one came in a little battered with some chips on the side. A little bit of cod. And maybe some Worcestershire. Shaw are you running out of a British food things? I don't know how to Pronounce Bushmaster. From Henrik. Cain of Canterbury England. Who is a sixteen year old snacker? We are so thankful. You're listening any relation to hurricane the English soccer player and waited for him to answer on that. The answer sounds like maybe an I believe up there. It's pronounced Canterbury in Garland Adam Newman's fortunate. According to Henrik Kane has plummeted by ninety seven percent in the past year. We're talking about the CO founder. We work who went from having a thirteen point. Five billion dollar fortune last year to about four hundred fifty million dollars today smackers. You looked fantastic today if you're wondering what was that squeaky toy noise and yesterday's pod yes that was the official profit. Poppy of robinhood snacks. And you can check out a picture of river at Jack. That's my twitter handle. I'M GONNA tweet out of New York and we'll make sure we get you. Those Constellation slide number twelve the Robin Hood snacks. Podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Financial Alyce and does not reflect the views of robinhood markets inc or any of its subsidiaries or affiliates. The podcast is for informational purposes. Only is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision Robin Hood Financial LLC member Finra as IPC.

Jack Let J. P. Morgan Warren Buffett Apple Jamie Dimon Jamie diamond Constellation brands US Berkshire Hathaway J. P. Morgan Chase Ceo America nick Delta Airlines New York City Berkshire Constellation Brands Research Jamie D. USA.
FedEx, Airlines, Wine

MarketFoolery

15:09 min | 5 months ago

FedEx, Airlines, Wine

"It's Wednesday July. I. Welcome the Market Fuller I'm Chris Sale joining me today? The one and only Abby Mellon good to see you. Thanks for having me. We've got we got some stuff to talk about. We've got airlines. We've got alcohol, but we're GONNA. START WITH FEDEX, and for the first time in a while. We've got some good news out of Fedex fourth quarter, profits and revenue came in higher than expected. Stock up somewhere in the neighborhood of twelve fifteen percent so far today and Maybe, this shouldn't be surprising. Given the rise in boxes of stuff being delivered to everyone's home. Yeah I mean I think it's a fun one to follow today just given. This is the first time we've seen positive news from Fedex not really long time. I will sort of temper that news with the fact that it wasn't necessarily a knock it out of the park quarter for them. It was more of Expectations were very very low. exceeded that so. Like you said they did have peak level ecommerce volumes in the US which I think is a pretty interesting metric to look at But generally they spoke a lot about how commercial volumes were down, significantly business closures across the globe. Well and one of the things that you know. Fedex continues to deal with and and this is. Worth remembering for all businesses. Including the one we're GONNA. Talk about in a few minutes. Just the idea that acquisitions are hard. It's exciting usually when a business acquires another business, but that doesn't mean it's not challenging to incorporate an entire new business into your business, and in the case of Fedex. TNT Express based in Europe in of that integration. I think it's fair to say that's not going as smoothly. Or as inexpensively as Fedex and shareholders were probably hoping for. Yeah, I would agree with that I mean management commented on the call, a estimate it to be about one point seven billion dollar expense to sort of fully integrate that by twenty, twenty, two, the recognizing about one hundred and seventy, five million of that in the current fiscal year, so. They're really pushing off those expenses, which again I think when you're looking at this call if you compare their gap, reported to non gap or just numbers on, you're GonNa, see a pretty big difference and a lot of it has to do with not only just integration costs with TNT expressed, but also goodwill impairment as well as retirement plan contributions. Do. You think given the surprise results of this quarter. Do you think this raises expectations fairly or unfairly for what? They'RE GONNA report in three months. Good question I'm not sure about whether this sort of I must, it has to write. It has to raise expectations for three months, but I think generally speaking. I've said it before I'll say it again. Logistics is a very hard business, so Fedex's competing in a space that is A. Challenging best an increasingly challenging given the time that we are currently operating it with global pandemic, and so they actually mentioned about one hundred twenty five million dollar increase in cost was directly related to personal protective equipment and. Medical and safety supplies as well as additional security cleaning services so expect. Operating expenses to be. Sort of. Ramping back to what they were before this so in the full fiscal year, the operating margin actually declined from six point four percent last year to three and a half percent in this year again, not fully due to cove it, but I just think they're working with a lot of. Headwinds that I think are going to be very difficult to moderate in the future. Well in one more complicating factor that Fedex has to deal with when it comes to getting packages from point, a to point B is all of the investments that Walmart and target in particular have made over the last three months. To enable people to pick stuff up to enable that curbside delivery so that it is seamless and as smooth as possible. You know that's great for target and Walmart and they're doing the right thing for themselves and for their customers, but. Everything that gets picked up is one more thing that's not going to be shipped. I. Mean it's an interesting sort of. Quandary that they're in because so chiens strategic focuses right now are to manage network capacity to line with volumes in conditions as well as remaining focused on sort of that last mile on. So that is. What we're talking about when you talk about residential deliveries, and I think it's important to note you know those residential deliveries while they are driving the increase in volumes particularly in this last quarter. They do require incremental cost to serve right so that last mile is actually the most expensive to do just given. The book logistics of it so it'll be an interesting dynamic to see how this plays out going forward specifically in the margins for them. Let's stick with. At least part of a Fedex is realm and I'm referring to the airlines because United Airlines up with some news today they're planning to add twenty five thousand flights in August. This is another one that's going to be interesting to watch how it plays out because this also comes at a time where. United is boosting that capacity for. Forty eight weeks from now, but they were also quick to point out that they've seen a flattening of demand over the past week as Covid, nineteen cases rise here in the US. But for the moment anyway, just judging these two announcements by the movement of the stock, the boosting capacity in August appears to be winning out because shares of United Airlines up about three percent this morning. Yeah, it's a this is another industry man I am. I am not envious of the role that all of these executives player united here so. They're domestic schedule is now at about forty eight percent of the prior year's levels forty percent if you include international flights. And I think this ramping up challenge ramping back up to what was previously offered a sort of. It's GonNa be interesting to watch particularly across the competitive landscape. Well and it's also one of those things where. We've been looking at this for the past few months and getting a lot of questions from our members. About the airline's about the cruise lines, but we're not. We're not gonNA talk about the precise, but looking at the airlines saying look, this is a vital business. Of course it has to survive, but I think there's A. A desire on the part of some investors to look at all of the airlines as a group and just think okay well. They're all going to be like. This is happening with one then. It's GonNa. Happen to all of them and that's just not the case. Yeah that's a good point I mean generally speaking. Are It's a challenging business because they're asset heavy the capital intensive businesses have high fixed costs, and so I, think it's sort of a cheerful challenge rates, so you either you could ramp up too quickly. Which would? Mean that you're running too many planes at a loss so obviously demand is at to some degree function of pricing, but you're also seeing a travel restrictions in travel bands come into play, so that is something to consider right, but then on the flip side. If you ramp up to slowly, you could lose your market share to competitors, and there is a cost planes not flying, so they have to be stored somewhere for united. They store them at hub airports. Mainly, that includes one in forty planes at Houston's I H so It's just a logistically. Interesting and hard challenge to get their. Constellation brands out with a first quarter profits that were higher than expected. Constellation put them in the category of those companies where the underlying brands are better known than the name of the company itself. This is a a beer wine and spirits company. They've got corona beer Maddelo Mondavi wine. A number of spirit brands they also added to the wine portfolio by buying. A director consumer business called empathy winds. Look the first quarter profits. Those were Nice. I'm wondering if the fact that shares of Constellation up eight percent today maybe has more to do with the fact that they made this acquisition. Yeah I think I think it is a lot to do with this acquisition so like you mentioned. They're acquiring empathy winds, which is a direct to consumer wind business It started by well-known entrepreneur wine expert in media personality Gary Manner Chuck so there's sort of offering that jeeves sustainably raised wind delivered direct to consumers for about twenty dollars, a bottle, and so while the terms of this deal weren't announced I. Think the Strategic Movement for. Constellation brands is an interesting one. I'm always fascinated. Whenever the amount of money is not disclosed, it's a in part because I don't own shares of constellation brands, but just sort of looking at it like. Hey, you're a public company. This is not apple. This is not apple because we've seen huge tech companies make acquisitions. They don't disclose the amount and we know it's because we'll look on a material basis. It's pocket change to them constellation brands. It's not that size, so I am curious what they paid. My hunch is they paid a lot less for empathy wines than the investment. They made in canopy growth and this is. Really interesting to see how bill, Nunes, who is the CEO Constellation brands and he's been CEO for just a little over a year. He appears to be quietly. Methodically dismantling the moves that his predecessors made whether it's writing down the canopy growth acquisition whether it's you know this is. That was the thing at the time of the canopy growth acquisition where I just wait a minute. Why would you invest in that amount of money when you appear to do a pretty good job of getting these alcohol brands into your distribution network? Why not go back to that playbook it? It looks like that's what bill millions is doing with this acquisition. Yeah, I mean. They've recently made a strategic decision to focus on selling sort of those higher tier winds at the end of twenty nineteen. They sold off their lower priced wine portfolio to EJ gala for about one point one billion on. It's certainly a strategic decision. I would say and I think their their VP. President of wine and spirits interesting comments. About the adoption rate of. Purchasing alcohol direct to consumer in so pre-coded only about a third of people really knew. It's by APP hotline, but now that number's probably eighty to ninety percent, but I think. It's fair to assume that. This, acquisition isn't because of what's going on right now. Business, certainly a long term play for them, and so he talked about the acceleration in that direct to consumer channel, and that they estimate that direct to consumers growing at two times the rate of the general market so. I think part of this acquisition is just D-. insight knowledge data points A. Learning, they can get from direct to consumer channel, maybe exploring more to roll across other brands. Two quick things before we wrap up, I you go back to March and one of the things that we were all saying was as companies. You know were tripping over themselves to say we're not giving any Financial Times now we're getting into sort of the the summer round of earnings, and you know constellation brands, and Fedex both coming out and basically sticking with that course. Each in their own way set, you know. Saying, look given all of the continued uncertainty. In our business. Whether. It's delivery of packages or selling alcohol, both of them coming out and just saying yeah, no, we're not. We're not giving guidance. Right. The tries to not give. Is One that I understand right now. Certainly across a variety of industries I don't think constellation brands is necessarily the most unclear business that we have going forward, but I understand the choice not to. Last, but not least happy Bobby Baena Day. I don't know how big a baseball fan. Would you say that you are? Okay and also you're. You're much younger than me. So if you're not a big baseball fan, then chances are. You weren't watching Bobby. Bonilla played when he played in the nineteen nineties. But the reason today is Bobby Baena. Day is because July because he signed arguably the greatest contract in all major professional sports. He signed it with the new. York mets in the late nineteen nineties, and it does have an investing angle to it because basically the contract. Pays Bobby Baena who has been retired from baseball for a long time? It pays him one point two million dollars annually on July first. and. This will continue until the year twenty thirty five, when he will be in his seventies and the reason the New York mets gave him. This contract is because they were so confident with the money they were making off of their investments. They were investing with this guy who was delivering consistent returns year after year a man by the name of Bernie Madoff. and. So Bernie Madoff Ponzi scheme. Have a direct tie to Bobby Baena signing the greatest contract in professional sports so. Wherever I don't know how you're celebrating Bobby Baena Day. I know she's selling celebrating it by. You know getting that one point two million dollar check. Isn't that amazing? Yeah when an interesting collision sports in financing. History. I knew about the contract when it was signed, and this was well before I had heard about Bernie. Madoff and the fact that there's the made off angle just makes just makes the story all the more delicious anyway Melanie. Always great talking to you. Thanks for being here. Having been. As people in the program may have interest in the stocks. They talked about in the Motley. Fool may have formal recommendations for or against so by herself talks breaks down what year that's GonNa? Do It for this edition of market. to show is mixed by Rick. Engdahl I'm Chris. Hill thanks for listening. We'll see you tomorrow.

FEDEX Constellation brands Bobby Baena US baseball Chris Sale CEO Constellation brands Abby Mellon TNT TNT Express United Airlines Bernie Madoff apple Europe United Walmart Bernie
A Tale of Two Sales

MarketFoolery

21:05 min | 1 year ago

A Tale of Two Sales

"It's tuesday august thirteenth walking the market fully. I'm chris l. joining me in studio the one and only jason mazar thanks for being here. Thank you for having. I think we've got some earnings. We've got a couple of high profile sales that we're going to get to we gotta start with tariffs from the point where you and i started talking on this morning to like an hour before we were coming into the is like wow i felt like an entire day on by in just those couple of hours in yet here. We are tariffs markets up. Everything's fine because the tariffs are being pushed off to december at it's just i we're trying not to be exhausted. We're trying not to you know just get worn down by the trying not to be super skeptical. Exactly i really feel like history is going to look back at this point in time years from now and there is going to be one of the most egregious in massive insider trading scandals that dates back to this current time and in place this. I mean i it is. It does almost look illegal when you see how this news cycle resets every day it just as crazy. Well you know this is this is in response. I'm i'm by this. I mean this conversation. You are having this is partly in response to questions is that we are getting from listeners asking basically is this market manipulation. Although i will say reference issue years from now looking back on this time i just right before you came in the studio. I taped interview with david garner. It's gonna air on monday full money this weekend and one of the things he mentioned was he thinks we're going to look back years from now on this point in time and specifically with respect to the trade war you're with china and we will look back as investors and say oh that was the thing that happened back then but that's not you know that's not really a meaningful inning full now and it all goes under the umbrella of this is why we do what we do. This is why we focus on businesses because we have so much more control as investors when we focus on businesses because we can't control. We can't control the news cycle. We can control <hes> trade policy. That's precisely it and i'm glad you said that because i totally agree i think years from now and more time goes by you. Look back and you know there. There will be a little things that happen at history within those windows of time that maybe we examine but we'll look back at this. Yeah i mean we'll think that ultimately i i mean there's nothing you can do about it anyway. <hes> and i think it lends itself perfectly <hes> to why we invest the way we invest and i know that sometimes it sounds a little bit like a broken record coming on this show or you hear it all over financial media but i mean the fact matter is happening. Every day. I mean we have a whole world out there of people who are reather just trying to get into investing or want to learn more about it. <hes> and there are a lot of different ways to do that and and obviously we feel very strongly about the way we do things in in a lot of that comes down to the stuff. That's going on right now. I mean if you look at this from just the big picture view like this really does. Look i mean i it makes exp perfect sense. Why wouldn't you put tariffs on old. We're getting ready to come into a big holiday season. You want these companies to be able to get their products out there for shoppers to buy. I mean whether it's hasbro hasbro and mattel toys or apple iphones. I mean you know i mean you're not gonna cut your nose off to spite your face any think that i it. It's been a very <hes> crazy headline time over the past week with china trade war with hong kong protests with goldman sachs ratcheting back growth expectations more talk about recession recession concerns. I mean all of that stuff sort of coming together and then you know you see a headline like we did here before the market open and <hes> it it. It really does make you feel like this is just a lot of political posturing leading into the twenty twenty election and perhaps there are some parties on the other side of it who are trying to sort of use a little little reverse psychology and maybe goldman saying we don't anticipate a solution to this trade war before the election. Maybe they're kind of trying to use a little reverse psychology to prompt prompt some sort of a solution before the <hes> twenty twenty election. Nobody ultimately knows and and you know we could sit here and examining all day long or we could just find good businesses. This is invested in the studio. Hang out and talk every day. I like that. It's a lot of fun for me as do i <hes> let's move to some specific companies and we'll start art with advance auto parts. Let me preface this by saying. I don't own shares of advance auto parts and i have no feelings one way or the other about the business yes. That's my preface. Second quarter profits for advance auto parts were solidly below expectations. Their revenue was light. The company company cut the high end of their sales. Guys for the full fiscal year and the stock is only down about one and a half percent and i just look at all of that and blau this. This was not a good quarter. This is not good guidance. The management of the company is talking about how challenging the environment is. Why is the stock not being punished more it. Does i feel like it probably should be <hes>. I mean this. I will say i don't own shares either at it's very difficult for me to come away from looking at a business just like this with its performance of the last two years and feel like it's any kind of business you really want to own. I mean we've talked a lot about the auto parts market and how attractive it can be from its resilience. It's this huge installed base of cars out there on the road and those cars as they age. You need a little <hes> autopart fixes here and there but i mean it's not the only business in this market cricket in when you look at advance auto parts <hes> results i mean it is just a litany of mediocrity. Really i mean if you look at the stock performance over the last is five years. It's been it's been a volatile stock. There was a point probably around july two thousand seventeen where it would have been a a good bit to buy shares. I mean they were really <hes> in the basement back then in going back through those earnings releases in those calls. I saw a lot of what i'm still seeing now. Is this hope of some light at the end of the tunnel of perhaps turning on the recorder. It's like flat sales flat calms challenges <hes> and then you look at the competition in this space and i think go riley probably is the most obvious suspect they're they're basically for all intents and purposes the same size footprint wise. <hes> o'reilly riley is a much larger company market cap wise. They're essentially doing the same in top line. Sales o'reilly making basically three times the net income that advance auto parts making and consequently that trickles down to the bottom line and investors riley have been much happier with holding <hes> than investors advance auto parts or so to me advanced just looks like one of those perfect sort of value investment type situations <hes> in today specifically i mean i feel like it's a value trap. Not a value play. I would steer clear. No pun intended well. Maybe maybe a little punnet pension. Yeah i mean i you think i came away with a lot of what you're feeling. I would just add autozone in there as another company roughly roughly the same size market cap wise as a riley riley and has certainly done a better job of rewarding shareholders. Absolutely let's get through a couple of sales that are happening and <hes> i'll just we can take them one at a time time but let me mention them together. Constellation brands which is the parent company of a mainly a portfolio of wine beer and spirits they they are selling their canadian whisky portfolio for about a quarter billion dollars to heaven hill brands verizon is selling tumbler so tumbler term stomach tumbler which was bought by yahu back in two thousand thirteen yahoo paid one point one billion dollars for tumbler which is social media platform and verizon is selling tumbler for an an amount of money that is so small that the price and i'm quoting here is not material to verizon yeah. It's like basically a ham sandwich. I mean do anything for for their flames and i. I'm not sure which one i'm more curious. Slash puzzled muscled about because constellation brands <hes> i i understand heaven hill brands which is another spirits company <hes> they're better known for some of the brands under their portfolio evan williams elijah craig to the better known bourbons out there so i get why haven't hills is making this acquisition constellation brands. They they say okay. We're selling this because we want to focus on premium brands the last time they went out and spent a lot of money investing in a brand marijuana company and they invested about four billion dollars so i think think if if i were a constellation brand shareholder i'm not too thrilled with how the recent past has gone in terms of how the company is allocating capital capital. No i think <hes> you know when we were talking before taping and it it the concern. I think more than anything is kind of like okay. What exactly do you you guys are trying to pick a strategy and stick with it. Pick a lane. <hes> in i mean it is worth noting i mean they do. They do have a new c._e._o. In the executive suite there <hes> bill nunes who think he he started up as c._e._o. This year in march so he's relatively new to that position so he you you know he didn't have a lot to do with strategy there before <hes> at least not to the c._e._o. Level in so maybe he's decided to sort of the direction that he would rather take things as an <hes>. We've always looked at those investments in the marijuana space as you the more attractive to play the marijuana spaces to to invest in companies like constellation because they have the financial resources in the ability to make those investments without having to be pure play. I and i think we're still so early early. In that game <hes> you know i'm not i'm not gonna hold that against him yet. Because i think there's a lot more to come as states you know change their are there laws in it just becomes more widespread thing but but i do think with constellation i mean it it is it's imperative that they pick a lean and stick with it and and i'm okay if they want to do that. <hes> focusing just on premium brands i mean it's worth noting that eight decent slug of goodwill on the balance sheet represents about a quarter of total assets and so they've got a history of you know buying and that's kind of what these businesses do they buy new brands and the <hes> plug into their business model and constellation it sits. She knows distribution. They are pursuing kind of that premium style beer <hes> catalog corona maddalone pacifico and things like like that so the the liquor line would <hes> stay in line with that as well but yeah. I mean that ultimately pick a lane stick with. It and let's keep an eye on those acquisitions because it does manner. That's <hes> i'm. I'm glad you said pick a lane and stick with it because that's what i've always thought about constellation brands as a business and it's the same thing i think about a company like okay this is there is money to be made in this business. As long as you run it well and it seems like constellation brands ends has. I don't know if there's confusion or you know the the attempt. I'm not knocking them for the attempt to diversify into marijuana. I'm knocking them for the way in which they did it and the amount of money that they spent it feels like thus far. It's been a bit of a scattered strategy and so i would say that for investors investors in the business one thing to keep an eye on a one metric or measurable to hold management accountable to is going forward this the new c._e._o. Mr new orleans i mean is he's sticking to a clear strategy and i mean if just do what you're telling me you're going to do and if you're gonna change your mind. Make sure sure you give me some good reasons. Why you're doing it inside. Think paying paying a good amount of attention to his verbiage on the call here in the coming quarters is going to be <hes>. You know a good thing for investors to focus on so verizon buys yahu for four point four billion <hes>. If you know we still feels like a lot. I mean like let's be clear man. I you know who just isn't what it is. It wasn't it wasn't this. Today is not what it was. That's true although i was i was thinking about does and this is you know i know that there are great ceos that we talk a lot about and maybe for some of the listeners we talk a little bit too much much about them <hes> but if we do it's <hes> partly because i and i think this deal in particular illustrates what i'm about to say when we talk about great ceos who have led businesses is that over time have succeeded year after year. Maybe they have the occasional stumble but in general over decades they are doing well and above average bridge <hes> reminder that that's really hard to do. It's incredibly hard to do <hes> just to go back to the conversation. I had with david garner. One of the things we talked about was and how a._o._l. Is a brand that largely doesn't exist anymore and if you're a young enough person you're totally early forgiven for not knowing that in the nine hundred ninety s america online was not only one of the best stocks to own. It was one of the best companies he's out there. It was the clear leader in the internet revolution. I mean it helped. Get us to where we are today. Absolutely did and steve case did the amazing job leaving that company and there was a point in time when yahoo was an amazing stock to own it was a leader in its category gory and staying you know a leader for a long time is really hard to do and marissa. I mean when this deal went through the rising. Kim was selling tumbler for you know a bagful of nichols. There were people on twitter who were resurrecting the story from twenty thirteen eighteen when mercer mayer the c._e._o. Of yahoo at the time announced the acquisition were paying one point one billion for tumbler they were she was rightfully rightfully getting questions about evaluation you short you know and <hes> you know. Maybe it's easy in hindsight to <hes> to knock her for for that. <hes> and i'm not trying to just do it without any regard whatsoever but it's among other things. It's a reminder that when you go out and make an acquisition vision that only works if you can make it work you know there's an alternate universe where yahoo pays one point one billion dollars four tumbler and they actually actually have a strategy to make that work yeah well. There was no what next right and i think that like at the time i mean in we we always held melissa mayer fire to the benchmark that well organic growth was really going to be the sign that she was getting this thing moving in the right direction i mean even if you're gonna make some acquisitions you can then look at the company and start seeing is they're going to be or grand organic growth that comes from this because if you have a big networks and you plug other big networks into those big networks network effects sex can be extremely powerful. It does feel like the tumbler acquisition was one that was made a little bit in haste. I don't know oh really maybe the underestimated the power of the business the business they're in like facebook and instagram and i mean even twitter to a degree because when you look at these the if you look at tumbler as a social media type of account i mean it is one of the least used in the context of all of those other names. I mean it's just it's it's not it's not really relevant and so you know you're paying up a lot for that user base and thinking that you might be able to actually do something with that user base and in a very short period of time i mean the way that we access our information content that we're getting from those phones owns that just changed so quickly in yahoo was in this. They were at this point where they weren't. They weren't able to execute some strategy that they'd been thinking out over the past asked four or five six years or longer. I mean they had a new c._e._o. Is trying to figure out some sort of a magic bullet and she basically had a bottomless pit of money to try to do it and it didn't work. I mean it's not surprising it didn't work. I think it's a shame she she certainly made a lot of money evaporate in the process not from her account mind you because i'm sure sure she's doing just fine chris <hes> but yeah i mean it really is a i think for me. It's always it's a good example of look back to and thinking when you see these types of things happening. I hope for the best but i look at them with extreme extreme skepticism in i think that <hes> skepticism as probably i believe the better default in most cases on the flipside automatic which is the company that bought tumbler and i've never heard of automatic. I just he's learned this morning that it's the parent company of wordpress right which i'm in maryland. This is right in line with that business like oh. This actually seems like a brilliant move matic. It's it's right in their wheelhouse. They clearly paid very little money to get tumbler and whatever cancer associated with it so <hes> well well don automatic. Oh absolutely i mean you're picking up shares of something on the cheap and you're doing. You're bringing something into your wheelhouse right. It's like chick-fil-a throwing mac and cheese on the menu right. I mean that's something that. I don't think we're ever going to see chick-fil-a really through burger on their menu. In my lifetime right chris you just stick stick to what you know and you do it really well right and you can you can do a lot of powerful things with that <hes> so hey maybe there's maybe there's hope there for tumbler and more repress coming together like that. Maybe that's the chick-fil-a and mac and cheese combo that we're looking for in the blog world. I mean time will tell me email from longtime listener brent thompson subject line chick-fil-a mac and cheese fred rights. I work with a woman whose family runs a couple of chick-fil-a as in utah well done on. That's a hard job to get. She said they sold out of mac and cheese on monday. Just one data point but a promising. I believe i listen. I was going through and ah digging through mcdonald's numbers and kind of looking back what we're talking about of the show here a little bit before mcdonald's numbers came out. We were talking about that. Chicken sandwich deal and how franchisees aziz were like okay. We really need a sandwich to compete chick-fil-a in. I mean i you know listen. That was the chicken in the room right and mcdonald's management laid up big fat turkey. They didn't bring it on the call at all. Aw in now we look at this and chick-fil-a continues to control the conversation. It's not going to happen overnight but again you let a company like chick filet kinda going there and keep on doing what they do. Well and they don't have to worry about doing this. In the context of being a publicly traded company this is something that is going to challenge mcdonald's the year in the coming years they have. They have a good product. Mcdonald's would be wise to to get on this and figure something out. You gotta figure the margins on mac and cheese. He's gotta be really good and i mean like when you make mac and cheese at home. I mean the day after you throw that stuff in the fridge. Take it back yeah then you fry it up with some butter in the skillet yet fried mac and that not not yet. That's coming soon at your house. You leverage that work. That's already been one one of our favorites favorite properties in the visit that we cover right fried mac and cheese yeah. It's real well. Whatever i have lunch. Today is going to be a total disappointment now doc. Thanks jason. Try to help when i can as always people in the program may have interest in the stocks. They talk about the motley. Fool may have formal recommendations for against by ourself stocks based on what you hear. That's going to do it for this edition of markets hillary. This shows mixed by dan boyd. I'm chris l. Thanks for listening. We'll see you tomorrow yeah.

Constellation brands yahoo verizon marijuana mcdonald david garner china riley riley jason mazar chris l. twitter chick-fil-a market manipulation hasbro autozone goldman sachs goldman hong kong
T+171: SpaceX, L3Harris Selected by SDA for Missile Warning Satellites

Main Engine Cut Off

23:12 min | Last month

T+171: SpaceX, L3Harris Selected by SDA for Missile Warning Satellites

"Big News Out of these space development agency that I WANNA break down here today on main engine cutoff, I'm Anthony, Colangelo. Let's dive in with the headline is L. Three Harris and spacex have been selected by the space development agency to build four satellites each for missile warning a new missile warning constellation. that. S. Space Agency has been working on So I want to start with some background on the space. Development Agency what this project is, and then I really want to dive into the space x side of this because for L. Free Harris this is great news. It's one hundred, ninety, three, million dollars that they're getting for four satellites. But this is in the realm of what L. Three Harris does. They certainly have done this historically and it's something that it's a market they're dedicated to for spacex they don't yet produce satellites for customers they produce them for their own Starlink missions, but they don't do this where they sell satellite buses. To customers either governmental or commercial, and that's a major major announcement there for spacex. So I want to talk about what that means and what they might do with that where they might go in the future and why it's important to them. But let's start with that context. The Space Agency was established back in March twenty nineteen. It's something that had been talked a lot about in the early days of the trump administration has space force was developing is there was a big struggle over exactly what the new organization would be but the intent it is to shake up acquisitions. There was a lot of talk about how the current era of. Within Department offense has been overly bloated and huge budgets and everything's over budget and over schedule, and it's really expensive and slow, and all this and the FDA was floated as a way to. Get around a lot of the existing structures. We've seen a lot with other arms of the Air Force. There's all sorts of different acquisition offices that always intend to do this, and it kind of is one of those situations, a link to an k CD comic about standards, how the fourteen standards and I've got it one to rule them all result fifteen standards and you kind of just added onto the stack sort of feel like that with this whole recurring talk of acquisitions that are too slow and too expensive. First you start out and you might actually achieve some cost savings by doing things a little differently. But eventually, you know you become just another agency that is. Big Budgets very slow, etc. Kinda just the life cycle these things. So we might see that in the future. But. Right now, that's that's the focus and the initial project that the FDA has been given is to create a small satellite constellation that honestly can do everything under the sun. The initial tranche zero as it's being talked about. Includes twenty satellites as a what they're calling transport layer, which is communications, Lockheed Martin and. I'm blanking on this. It was Lockheed Martin And York space that are going to produce ten satellites. For that transport communications layer, and then there's eight satellites here that we're talking about. That are for what they're calling the tracking layer that is the missile warning missile tracking. That is split between L. Three, Harris and SPACEX. So there's two thousand eight satellites that they're working on for this initial version of the Constellation there has been no. No fewer than thirty ideas floated for what this constellation could do things like space situational awareness GPS, alternatives if a satellite can do it, it's probably been theorized that the FDA could do it as part of this project for right now it's mutations and it's missile warning. Now, a couple of important things to note about the FDA. It is slated to become part of the US Space Force in October twenty, twenty two. It was sort of part of all of that discussion back in the day. And Mike Griffin was actually a major proponent of the space development agency. He was kind of spearheading it back. Then when there is a fight about the existence of the space force and Heather Wilson, who was at the time, the head of the air force was very resistant to the sti very resistant to space force mostly because those things threatened which she was in. Charge of the Air Force So there was definitely some you know inter governmental bickering happening there but importantly might griffin is now exited government work as of July. He left for the private sector and he was working in the office of the Secretary of Defense here in the US and he was seen as the major advocate within that office and with his departure. The FDA is seen without that advocate at the higher level. So it does leave the FDA fairly vulnerable as things are kind of still in motion with the formation of the space force what is and is not included obviously going through presidential and congressional elections this year so that could shake up. Any of the legislation that happens between now and October, twenty twenty, two, two, full years away that's a whole nother congress could change their mind on so not that this money is going to be taken away from L. Three and SPACEX, but the itself is vulnerable. So there could be future shakeups that you might just want to keep in mind as this project comes up through headlines over the next two years on its way to launch. Now, let's talk about the technical side of this tracking layer. Today, we use something called the space-based infrared system here in the US for missile warning missile tracking. Those are a constellation of six satellites in geostationary orbits. They are very expensive satellites. These are multibillion dollar depending on how you count. You could say the latest ones were about a billion dollars to acquire, but it's twenty billion over six satellites. So they're multibillion dollar satellites. And they're kind of the old model of a a few really expensive really big investments that do incredibly good job but you're left with huge risk because you've put a lot of eggs in few baskets. And that is kind of the old world mindset where. Launch was very expensive and satellites were very expensive. Now, we have cheaper launch in very cheap tech. So the new thinking is you could do a better job with a lot more smaller satellites. and. In the case of space development and one of the things they were talking up was that we could build things in different architectures that are more survivable to threats from foreign nations for an actors whatever it is. You consider the fact that obviously GIO is really hard to do this but you take out one of those cyber satellites and you've just taken out one six of your capability to track missiles. If you have a constellation of in this case, it's eight, but the ideal would be a lot more than that. If you have a huge constellation a lot harder to take out one sixth of those satellites and harm your capability. So that's something that was talked. Back then and that's what this product is trying to do trying to take this. This kind of technology and break it up into a constellation, make it more survivable against threats, and really just you know dispersed the risk among a higher number of cheaper satellites. This is very similar to a project that Darpa has going called the blackjack program. They're also looking at the small satellite constellations, four military uses, and there's actually a huge overlap. So I mentioned space-based infrared system is the current generation and missile warning the next generation of missile warning satellites that are being produced here in the US use something called the overhead persistent infrared sensors or OPR. So, those OPR satellites are going to be used by the air and space. Force on a next generation missile warning constellation of their own Lockheed Martin was awarded about three billion dollars for three geostationary satellites north of Grummin about two point four, billion dollars for two polar orbiting. So those five satellites are what the air and space force are looking to as their next generation missile warning satellite. The Darpa Program I just mentioned is also going to use OPR payloads Raytheon one about forty million dollars back in June to produce those payloads. And then this SDA project split between all three and SPACEX are also going to use OPR payloads. L. Three says they're going to be producing there's in. House. And SPACEX says they're going to get theirs from supplier. They haven't said WHO plausibly it could be Raytheon if they are making just the payloads for the Darpa Program for satellites of similar sizes, you know it could be that they are looking to work with spacex on we don't know who yet. So that's just kind of a theory based on the names that are being tossed about here. But you can hear these names, right? It's it's kind of the old standard. It's the military industrial complex and then space x who score coin for coming the military industrial complex but that's the side note. So before we get into the space x stuff, let's talk about the launch of these satellites and where they're headed the same day that the announcement was made that space x were selected the launch RFP went out and that is actually for all of the two thousand eight satellites that I've talked about the twenty in that communications layer and the eight in this missile tracking lehrer. These would be spread across two different planes of orbits nine hundred and fifty kilometers circular. Near Polar, they say they could have an inclination between eighty and one hundred degrees. And the two planes it'd be about thirty degrees separated from each other they say that the first launch has to happen in September twenty, twenty two and the entire constellation they as close to that data's possible. But no later than the end of March twenty twenty three and the rpo is open to whatever kind of launch architecture you want is at one, two, three, six launches you propose it and they'll make the selection among the things that they receive. This seems kind of like one of those launches is a dead ringer for SPACEX. Because is the biggest factor. It is as big as the other factors combined. So you know given the space development agencies charged for lower prices and faster access to space. That's it's one of those things that sounds right up spacex his alley, but we'll obviously see who ends up winning the launch for these satellites. Now, interestingly, in the RFP, there's a couple of documents attached. One of them is the Planning Info document. They give some stats for these different satellites and the for tracking satellites or the eight dragons satellites split into groups four are listed at one set of four, one, thousand, sixty, eight kilograms. Per Satellite, the other four are three, hundred, eight kilograms per satellite. So. If we use our mental model of what we've got going with starlink you, there was a source in space news at said, this is based on Starlink what spacex proposed for this and that's the obvious thing there's at spacex has all this all this experience making satellites for Starlink, they're gonNA take that production line build satellites for customers. But if you dive into details in these documents, there's another one called planning. Info document that lists those lower mass satellites actually showed them around two, hundred, forty, nine kilograms. That's right in line with what we know Starlink is today it's about two hundred, sixty kilograms. But in that they say those lower mass satellites use L. MP, three S for propellant. That is the green alternative to hydrazine eight is not what Starlink uses, which is crypt on gas they have hall effect thrusters. So there's two possibilities here. One is they created a slightly higher mass version of the STARLINK bus with. With this one of three s pellet doesn't seem that likely to me that sounds significantly outside of what spacex would do. The other option is they have a much bigger bus that they're selling about one ton to customers that sounds more plausible given a couple of things that I've heard over the past couple of months. It does sound like something that if you consider starling satellites, the idea there is they can launch so many of them that a couple of failures not a big deal. If they need to have military level of reliability for the satellites, they're probably gonNA need to add on a lot more systems that they have on the Starlink payloads. Obviously, there's going to be different requirements that the military. Needs that's going to bring with it different power requirements, different thermal requirements, all sorts of different constraints that they need, and maybe with all of that combined, they're going to push their payload sizes up a bit be a little bit more flexible with what they can put on there. What kind of payloads they can actually host on the bus and they end up with the bus that's about one ton. So I'm not exactly sure which of those options it is. Some of the things that I've heard. Make me lean towards the fact that SPACEX is producing a bigger bus but either way, this is not a straight off the production line Starlink bus that they are selling to a deep space development agency right here. This is something that is maybe leveraging things that they've done for starlink hardware-software production line, etc. But is definitely built for the purposes of this contract. Now I WANNA talk more about spacex where they're going with this kind of thing. But before I do that, let me say a huge. Thank you to everyone out there who supporting main engine cutoff every single month over at main engine cutoff, dot com slash support. Thank you all so much for keeping this single person operation going and I said it last show I'll say it again. Thank you for putting up with me through my paternity leave their all the nice notes you sent me saying take the time will be here when you get back. Thank you. So much for making this kind of thing, possible It is a weird world for independent space media but that's what we've got here. It's all funded by you out there listening. So if you enjoy this head over to main engine cutoff, dot com slash support and join up there, and you could be one of the thirty eight and executive producers who produced this episode of the show. Thanks to Brandon Matthew Simon Lauren Melissa Chris Pat met George Ryan Nadeem Donald Lee Chris Warren, Bob Russell John Maurice Joel Yon Grant David Eunice Rob Tim Dodd the astronaut. Julian enlarge from Agile Space Tommy Adam, and seven anonymous executive producers. Thank you all so much. Once again, if you want to join that crew, if you want an extra podcast a week in your feed head over there at three dollars a month or more I do a headline show every weekend. I. Run through every story of the week. Sometimes things just don't make it onto the main feed, their small stories I still have thoughts on those. So I do an entire separate podcasts where I run through all the stories that are worth talking. About that week give a couple of quick thoughts keep you up to date on space. It's probably one of my favorite things that I do because it keeps me and all of you really in sync with the space news and I had a couple of weeks off their first one back is coming up this weekend. So if you join up, you're getting three podcasts this week from main engine cutoff. So thank you so much for making all possible and I'm looking forward to what should be a good fall and winter here of space podcasting. All right. So speculation about exactly what this satellite bus looks like. Aside, spacex is now a a satellite producer. They are now selling satellite buses to customers right now they've got this military contract, but's it's not. It's not entirely unlikely that they are also going to be selling these to commercial companies or others out there in the industry they have a serious production line right now with startling, they're making about one hundred, twenty satellites a month for Starlink. So they've got a lot of experience they built the multiple different versions. They've obviously iterative quickly so they can react to changes very quickly. And if you know based on those differences that I was just reading, often the rpo stuff is true making obviously produce satellites that are outside of their standard size pretty easily even if they are that lower mass thing but they're using a green propellant rather than crypt on obviously shows that they can reconfigure a satellite bus as needed pretty easily on their production line. So either way it's showing that they are ready to kind of build to order. which is interesting for SPACEX. Much in the same way that I felt about dragon xl, which is their cargo vehicle that's going to go out to the lunar gateway. This is somewhat surprising that spacex is doing these things as that is a little outside of their primary mission North Primary mission. Has Been Guiding light for so long and if it doesn't fit into their kind of tech tree that leads them to Mars, it was something they're not necessarily interested in In this case in Dragon Excel's case, those are things that are very closely related to what they're working on already but are a little bit of a divergence and the common thread there is that there's a ton of money in those kinds of services. The Dragon XS L. stuff is probably a couple of billion all told. These satellites right here is already one, hundred, fifty million, and you could keep selling these things for tens or twenties of millions at a time and make a mint off of your starling production line when it's not necessarily needed for starling satellites themselves. To compare to one Webb, who is the other Mega Constellation working on satellite Internet. For a while they were really hyping their production facility down in Florida, they've built in partnership with Airbus that they were going to turn that into production line for other small satellite providers when they're not using it for their own satellites. One web is only going to produce a couple hundred satellites for their. Constellation, they orbit much higher at twelve hundred kilometers than starlings five fifty. So they are much longer lived satellites. They're already we're going to have fewer satellites on orbits or starlings going to have you know thousands that they're going to need to replenish much more frequently at that lower orbit. So. starling requires a much more ongoing production line than web does one web you know beyond the first couple hundred would have relied on these commercial orders of satellites whereas species is going to have there's open and operating, and if they can make a little extra cash on the side, if they can pay off some of the starling running and operating costs by producing things off that same line for other customers, that's a win win for all involves. And then you start considering the fact that they could bundle this with launch services, they could bundle it with the rideshare program that they've rolled out and they could have the sort of all in one price much. In the same way we've talked about with rocket lab and Photon you come to them, you say I need a satellite to this orbit. Great. Give your payload. will put it on our bus will put it on our rocket will launch space all in one price covered very easy. You can minimize the paperwork just a single point of contact that's pretty attractive for a lot of people out there and SPACEX could start offering that now alongside all of those rideshare missions assuming you're going to in orbit that fits that sort of thing. And you've created a pretty compelling self licking ice cream cone of some people like to say. Now I've heard some pretty crazy cost figures on Starlink buses, internal costs, spacex. I've heard figure. So crazy I don't necessarily believe it. I've heard figures on the order of a nice car. But more like a little bit more than a cyber truck and that is insanely low But then you consider the fact that space SPACEX launch and sixty of these time making one hundred and twenty a month. It can't be that pricey SPACEX is burning a ton of cash right now they've you've see this constant stream of money being invested in put into space x four both Starlink and starship. But you. So you know maybe that figure is accurate and if it is even if you consider the fact that they're making a much bigger bus for commercial companies and government agencies to buy. If, they're able to do at that same low cost. They can make a ton of money this way. So I'd really love to hear more about that side of things. No one's going to announce it publicly I assume that it's going to have to be. Hypothetically. Somebody out there listening that sends me an email or text or whatever says, this is not accurate. Hypothetically if you're that person me know. But. Yeah. This is just another business line here for SPACEX and they need money. They are cash hungry right now. So if they can open up these different lines of business, that's a really good thing for the future of SPACEX. Now. One last thing I wanted to mention that I just kind of find humorous I was thinking about this the other day when I saw this news whenever starship news. And Traditionally this has happened around when SPACEX had incidents like the explosion on the dragon two capsule and the static fire. People. Look at starship stuff and say what a distraction from the things that NASA paying money for. We've heard that less and less recently. But this is another example of the fact that space x is a huge company. They are a giant company with several different business lines and no one ever accuses. Startling side of being a distraction from the dragon line and I just wanted to mention this as a thing that it's a storyline that I was hoping would die and it seems to have died or maybe I'm just not reading the right or wrong spots. But. This is a really good example again of how much space X is involved in their launch services there in satellite production satellite operation, they're doing crude flights up to the ice s doing cargo missions to the IRS cargo missions to the moon, and then there's everything that happens with starship including human lunar landing system. That is in development right now they are doing so much. They are so expensive. That's a good thing. If they're able to keep all those plates spinning at the same time, it does introduce some risk. If one of those is significantly drawing more cash and attention than other and putting the others at risk doesn't seem like we're there yet. But. Certainly when you get into this many things at once it is something to be cognizant of. The other thing to consider as if they're making these satellite buses that are for uses that aren't Starlink, that's going to extend not only to the military, not only the commercial companies, not only to government agencies like NASA, that could extend all the way out to Mars and it's something we've talked often on about I remember talking about the original Falcon heavy. Launch. Hoping that spacex would shoot something to Mars on their own, right maybe some sort of relay satellite. This could be a thing that works all the way out at Mars as well. with those modifications necessary to operate in that different environment. If it is that big payload size, it would make a lot more sense while the pushing up into that territory. So, let's see what else they do with the satellite bus in the future and really all of the things I can come up with a really exciting. So I'm hoping at least a fraction of those pan out in the near future, but that's about all I've got here today on manage cutoff. Thank you all so much for listening. Thanks again for your support over at main engine cutoff, dot com slash support ends. It's good to be back good to be doing a couple of shows this week and I'm hoping that there's more news coming so we can keep talking about it but for now, thanks for listening, I'll talk to you.

spacex Starlink Constellation FDA SPACEX L. Three Harris S. Space Agency Space Agency US Air Force US Space Force Lockheed Martin Starlink STARLINK Heather Wilson Starlink RFP Darpa twenty twenty Anthony
6. High Speed Internet from Space  Kacific1 Mission Update with Kacific CEO Christian Patouraux

Your Space Journey

16:46 min | 11 months ago

6. High Speed Internet from Space Kacific1 Mission Update with Kacific CEO Christian Patouraux

"Welcome to your space journey where we venture into the future of space exploration and the incredible edible leaders who are taking us there. Here's your house. Feel hello thanks for joining me today for your space journey today. My special guest is Christian patrol the CEO of Kasich a broadband satellite operator. I was fortunate to meet Christian. At the launch of CA civic one aboard a spacex Falcon rocket on December Sixteenth Twenty nineteen ca civic. One is a next generation. Geostationary satellite that will stream high-speed low-cost low-cost ultra reliable broadband to rural and suburban areas of the Pacific in Southeast Asia Pacific. One will connect previously unserved or underserved populations with affordable high speed broadband for healthcare education. Government services businesses and disaster relief services was stimulate economic the growth and provide greater access to the Internet. Now before we get to my interview with Chris let's go to our segment called your space journey. This one viewers and listeners. Like you call in to tell us how their space began and what they're most excited about for the future of space exploration and today for the statement it's my privilege to introduce Dean Regas the astronomer for one of my favorite observatories the Cincinnati Observatory Center. My Name's Dean Regas on the astronomer for the Cincinnati Observatory also the Co host of the podcast. Looking up well. My space journey began In one thousand nine hundred eighty eight where I was working part time jobs. Various places and I got the hired at the for the Cincinnati Parks do a nature. Ed and one of the parks had a planetarium minute and show up to work and they say deemed grind glad to have need. There's the planetarium your run it. So that was my introduction. I had was forced into it very quickly. And I knew nothing about the stars and the planets I didn't even know where North Star was and I had to learn very quickly and in that planetarium I just fell in love with the subject when he put the stars on the ceiling. I thought it was the coolest thing ever and I turned into a career and twenty two years later here. I am super excited that the stars have changed my life. Well what I'm most looking forward or two in the future space exploration or well. It's hard to pick just one thing but I'm really partial to the Europa orbiter going back to the Europa sending unmanned mission out to the mood of Jupiter with This cracked surface of ice and looking under the ice to see if how much water liquid water on Europa. Ah That's my number one. I guess if I had to go number two I would be saying. Let's go on to Mars. Let's send some crazy people that want to go on this two year journey to Mars and back. I'm not volunteer and boy. I wouldn't mind watching from the sidelines. Your Space Journey. Thanks so much for sharing your story dean. If you'd like to share your story with us we'd love to hear it. Just leave us a voicemail but three one seven eight six to forty seven hundred or you you can email us an audio or video clip to send that email to info at your space journey dot com now to today's interview with Christian again Christian patrol is the founder and CEO of the broadband satellite. Group Christian has over two decades experience in the satellite industry prior to founding Kasich in two thousand thirteen he develops satellite offerings for new markets in Asia Pacific as head of special projects for me aside before that it was executive vice president and Chief Development Officer at at Oh three B. Networks where his work contributed to raise one point two billion dollars. He developed a global pricing demand model and initiated the company's Cruise Line Blah. Lobban service. Your Space Journey. Chris thank you so much for joining me today really appreciate it will come. Chuck Cathodic is your brain child. You helped found it in two thousand thirteen. I was just wondering for our audience tells a little bit more about the background behind get civic. Yeah Well I guess I before started because he had a career of about twenty years in in the satellite industry and and throughout my career realize that there's a lot of shortcomings in the industry. A lot of places de the the the industry doesn't call her and that isn't high needs for satellite connectivity and that is in Baltika lying in rural Oakland revolts areas of Asia and the Pacific So at the same time I felt like broadband a satellite broadband was not really Coming to Asia's it is in in North America and Europe even in Africa South America in Asia Pacific in the I guess the prevailing offering Westfield broadcast via satellite and broadband wasn't really there so I decided just to start it to To Design South Allied that would offer access is low cost and high speed per point of presence to remote and rural area. Where high heats for that and that? That's how it started it. It it seems to be the right thing to do because it snowball to a point that you know we managed to launch the satellite on sixteen December. That's incredible and and I was there with you and it was incredible and it just couldn't imagine what was going through your mind here. It is all this effort. Your effort your team. What was it like to finally considered one launch? Just over two weeks ago it was really surreal. I I just couldn't really believe what I was seeing. It was It was of course the combination lot of work but it was still a lot of stress and the last moments. It's all the things that happened On a lot of fun calls the last minute making sure everything was aligned. We had one hundred and sixty guests all day in Cape Canaveral. We have sixty guests watching it in office in Singapore so that added stress. I can tell you and and was the moment a went off a at an all. I two hundred pound way that just got off my shoulders. uh-huh and fellow and felts literally a really fat line. 'cause I just saw go off and that was it and there was is a lot of those worries that all of a sudden disappeared and it was the next step to take well. Congratulations to you and your team on that can ask houses. Doing right now is doing very well. It's a it has entered the overall it's on at its its final location at one hundred fifty eighty degrees east it's it's fully deployed and It's starting to being tested right now. So Great I was going to be just a little bit more about the specific mission. Objectives of Kocic won their objective is is to connect the like said connect the rural and remote areas of Alpha Asia and Pacific I would say that's the objective. Further objective is to connect you to feel the fundamental gap doc in In connectivity the digital divide that leads to a lot of suffering in remote and rural communities in in Asia and the Pacific and that is connecting for instance school. A police stations post offices but also health clinics Dispensary is that often see a lot of human dramas without connectivity. We've actually tested that. We tested the You know the the value proposition of connecting clinics like that Using K you. Dan Systems funds for the last three years waiting. Focus to be built. And I can tell you. We've already saved about thirty or forty lives Through the difference a the cleaning staff to be connected so I can only imagine that won this fantastic and when I guess when will it actually be online like women that first customer be able to connect so we will start bringing customers online on the twenty third of January as it stands today so as I told you the satellite is now on station and fully deployed waiting for. It's finally Nabi testing so we have all ground stations. That are ready to go. We're just waiting for the final destiny. And thus lowly bring the all fifty six games online So I'm as it is now we we all targeting coastal the February for Commercial Service. which is which is very facial time to imagine between the launch Donald Service? It would be only Multan. How absolutely as impressed? I was expecting a much longer. Your timeline. So that's very impressive. When you mentioned to the press conference I just wonder if you could share it again is just the download speeds? What kind of download speed? Roughly could the customers expect back. Well it really depends on on the size of the terminal that you using. So you know we we We could go up to one gigabit per second on trunking changed on four point five meter terminal but that is not really the the standard equipment that we're proposing although some customers have taken that option that the standard tape is more like the one point two meter the small terminals to deploy in those remote communities and on that we all bring something around of between one hundred and one hundred fifty fifty megabits per second. So it's really good good amount of of download something that you could expect from cable Internet. Absolutely which is impressive oppressive. Now one thing too at the press conference you mentioned the benefits of using the geosynchronous orbit satellite as opposed to the low-earth orbit satellites Trying to offer the same thing. He Tesla but more just about the benefits of the geosynchronous. Yeah so you know the geosynchronous is is I guess I see a twofold really the one that is very straightforward today the the the terminals on the ground don't move the fix seeks day You know they always pointing at the same location and because of that they are cheaper the the cheaper terminal that we we we could offer is below five hundred dollars even you know potentially below four hundred dollars so that that is just and all of the table for fall. Leo Audio Constellation because you you need a duel. Terminals need phased as the race. That's that's A lot more expensive and the second one second advantage is actually we have a very consistent service because it goes you always pointing the same points in space. And therefore you are once you installed a system you you make sure data data. You have a good line of sight but with Leo. Leo Constellation because especially Leo's You always have supper light coming from different indirection. That's are Kinda handover their service. So you need Canada. Coon of line of sides. That makes it a lot harder. In order to make sure that we had a consistent service and in fact what you'll have been D. and is a service that is similar to what you have in. GPS IN A high rise cities. Sometimes you have signals full signals. Sometimes you have no signal and there you are. You are stationary You know at the same location receiving at your home and you wonder why such accountable says some people have called its earth fade in the past half it goes. It's actually blockage from from This line of sight now criminally ask you this. Have you always looked up to space. What what sparked your interest in space in the first place I actually? I have a master in tubal machinery. So what's that's what my my. My first interest was in engines and propulsion. That's really where I come from and You know slowly. I guess I made my way through From propulsion I I was hired. SDS and started developing an interest in attitude control data processing some really. I don't have originally telecom background but then slowly than I developed a taste for business developments walkmans that made me really take an interest in the telecom side of the business and then developed an interest in in in broad and so no I I guess. At first I was more an `aeronautics engineer propulsion engineer. And it just slowly I I. I took an interesting space space. Oh no I I didn't. I didn't dream space when I was a kid. I was Mall Dreaming Engines on machines that made a lot of noise and smoke so and uh-huh and liquid her now which is incredible one last question if I may I know obviously we're working against specific one extra for your customers. What's next for Pacific? Is Your civic two in the works. What's next well yes? I guess the company realizes that in all the way we've gotten with Jesse is of course with a a lot of work a lot of a little bit of luck but also doing what is what is really all that the the the obvious thing is that there is a market for that kind of offer irving. You don't raise that kind of money that we raised You don't you don't get all these customers signing fall discount bandwith just by chance. There is a real market behind that And it's not limited to asia-pacific the market is Global You just have to identify five dose buckets of demands in rural and remote areas in developing part of the world and these developing countries. Are you know scattered around the world. So Oh definitely we are working already on to. We have new prints focused to most likely will be a satellite that will augment the capacity of Cacique. One bill also stops you know encroaching into larger territories wonderful Christian again. I just want to congratulate early to you and your team for this wonderful success when a wish you the best of luck in the future. Thank you so much for joining us. They really do appreciate it. Thank you very much. Thank you check your space journey. Wow I really enjoy my conversation today with Christian hoping to to he feel to find out more Rebecca civic just go to their website at KOCIC DOT com. That's K. A. C. I. ICY DOT COM. I WanNa think Christian for join you. Say WanNa thank you for taking. How about a year visit scheduled to join us today as well? We really do appreciate it if you like the episode today. We'd love it if you'd give us a five star rating on Apple podcast or give us a like if you're watching watching youtube or whatever. PODCAST application listened to us. We'd also appreciate it if you share this episode with a friend again. Thank you join a state. We'll see you next time. God bless uh-huh UH UH.

Pacific Asia Asia Pacific Chris Cincinnati Observatory Center Dean Regas Leo Constellation Southeast Asia Pacific spacex CEO Kasich Cincinnati Parks founder and CEO Europa Singapore Rebecca civic youtube
Constellation Brands CEO, Winners of the  Humanization of Pets Index, Homework: Sea Limited

MAD MONEY W/ JIM CRAMER

46:18 min | 11 months ago

Constellation Brands CEO, Winners of the Humanization of Pets Index, Homework: Sea Limited

"What is decision tech by fidelity? It's technology that can help you find a stock based on what's trending or investing goal. It's real time insights and information formation delivered in your own customized view of the market. It's smarter trading technology for smarter trading decisions and it's only from fidelity pretty open an account today at fidelity dot com slash trading fidelity brokerage services. LLC MEMBER NYSE SIPC. My mission is simple to make you money. I'm here to level the playing field all investors. There's always more work in summer. I promised to help you find. Money starts out crave Balkan money. Welcome Mark Cuban. My friends. I'm just trying to make some money by job is not just to entertain but teach educate coach calling one eight hundred seven three. CBC Or tweet consumer. What are you look at your resilience or complacency the averages staging huge rally last night's moment of crisis when Iran launched ballistic missiles at Iraqi airbases housing? US troops and no Americans were hurt. I'm marvel this markets ability to overcome even the toughest of obstacles Dow gaining one hundred sixty one points espy climbing point. Four nine percent Nasdaq four. Point six seventy although it was higher near other the say about an hour for close so is this book being resilient as or our investors being being complacent why not both yeah. That's what I think is it's a combination of these two forces and I think they've taken control i. Let's cover complacency. A few few days of the United States ordered the killing of extremely bad guy and Iranian gentle who've been the major architect of state-sponsored terrorism in the region. Now I'm not here to litigate whether or not that was not Michael. What matters to the stock market is that most commentators immediately assumed it meant we were headed for war with Iran? Do Not Pass Go. Do not collect two hundred dollars. There's took it as a given that. Both sides would keep escalating until all out. War became inevitable the price of oil oil and Gold Sore. We saw investors by ways of put options betting on a monster sell off but at the same time the stock market pretty much ignore though fractious evil. It became obvious the retaliation was imminent. Iran finally struck back last night when the market was closed they want more than a dozen ballistic missiles at air basis interacted house. US troops and the overnight a futures plummeted five hundred Dow points now and actually you know the president tweeted. It looks like there were no American casualties. And all was as well you can see the future star rally. Then a Boeing seven thirty-seven non maps from Tehran crashed after takeoff and the second wave of fear swept the market. But we're no. Further attacks came when the Iranian government tweeted that their message of revenge has been sent the overnight futures reversed the Pajama traders who sent the markets down to percents reveal to be just plain wrong. I've been telling you a week. de-escalation was always on the table. And that's exactly what both sides seem to be doing the scaremongering needed. Did you use disservice by playing down that possibility. Things only got worse for the bears when we got the the kind of Bush numbers that just finally staying the course but outright buying stock complacent going to the Iran crisis that complacency paid off when the president demonstrated restraint baffling his critics who simply can't conceive of Donald Trump with an olive branch instead of Zucca however such de-escalation was Asian that induce short squeeze that that was part of it but that was the bigger. We've got some genuinely good news. From individual companies as well Samak when formation mation and that helps explain the markets disease. Why don't we take them down our first? AP That's the nation's largest payroll processor. They should more than two thousand jobs created last month and its latest survey. Okay well any piece not the ultimate arbiter here. That's the Labor Department's nonfarm payroll figure that comes out through Friday. It showed that the Fed's cuts they're working. We also know the cuts working working because lenore gigantic homebuilder Elian reported today. Every single item was most important new orders up twenty three percent even better management told us to California California one fifth of the country but even large percentage of NASA's housing market has bottomed. It's been a lot of trouble that they're just numbers peaked. Little while ago. Now it's recovering that's all about J.. Pals rate cuts working their magic third. We got the same store sales number from macy's with remember not not as bad as feared the company use. Here's a close underperforming stores trimming its footprint to slept with mostly good stores and high quality are knows A or B malls. This smart strategy should have done a while ago just reminded that we could see he some much. Better numbers from retailers including Nordstrom perhaps home depot between the strength and the strength of the basis. I've got to believe that the housing-related chain chain can reverse its recent underperformance and enter the bell tonight Costco nine percent same sources. Nine percent of they did mazing ECOMMERCE afterthought for them. Well I gotta go to Costco someone. tweeded Kirkland has great locks doors curtain fourth catch been roaring or week but we needed some reinforcements forced to keep the ball rolling. And that's exactly what we got from Apple Apple holiday sales specifically cover lead some data on holiday APP sales ellsworth air pods numbers were staggering. It's not easy to move the stock for the world's largest company but this news love apple to climb nearly five bucks breaking through the level. Hey You oh my thesis. It really hasn't changed that much apple. Only this company is incredible track record of innovation and customer satisfaction. Let's keep monitoring their nine hundred twenty five million million iphone users now. Look I was going to be -cation recently seven other iphone owners all older models unlike me with my spiff eleven got the three camps spike. The continued carping from the naysayers would drive me crazy that there's nothing new under the apple son. I think everyone of my trip dates now feels the I need only iphone eleven. It's much leapfrog. Same thing with the twenty people in the box of the eagles lost last Sunday. We're only my phone was worth taking pictures with. Pictures came out to dark the other models so much for the no innovation. Wrap this steady drumbeat. We've had unbelievable coverage. CBC of Incredible Utilization Station starting to see these new technologies really pay off five G.. Zuma trying to show is just amazing this year. It's pretty similar to the up become turned we got last night from Harman's Winston East Powell. Did you catch that. He regale us about stories about products. That we've seen I think would have seemed impossible recently. Maybe he's a couple years though not enough good news for you happier story. Almost nobody noticed this morning. American Express finally got the nod. If years and years way to open up a Chinese franchise all on in its own no meddlesome joint venture partners here. Good news it. It's really kind of thing that I didn't expect to see right now. And I think China's hi China's going to follow through with its promise on the phase one trade. What does it mean for? MasterCard wasn't for visa for Goldman Sachs nose to find out they're just buying or how about the companies but he's that we're supposed to screw up a didn't this morning constellations brand symbol S. T. Z.. Reported very strong quarter fabulous consumption and not just from the middle and Corona we sell loyd Sim partially Miguel Mexican restaurant in Carroll Gardens Brooklyn. That wouldn't be so important if there hadn't been a story circulating yesterday. That constellation might have shortfall shortfall because of slowing beer sales. Sure bear beer sales. Will they not as greatest that they've been another another time but they were pretty darn good and compared to everyone the business these guys are grasping it. We do. Deep Dive Constellation later the show with bill. Nunes Fabio CEO. Let me throw more more. That's one that I've kind of bashed of late Rub. I've been extremely bearish on the online food delivery business. I think there are too many competitors and it's ripe for consolidation. The private tour dash already bought caviar from square. which which by the way is finally getting respect for growth posted departure from the amazing CFO? Sarah frier but dentistry needs more deals in today. GRUBBS said they're considering a merger but what are the stock roared award twelve percent. Here's an idea. They should be bought by door. Dash or by UBEREATS. Could've forty-five that happened. I would of course we still had one more day. We're Tesla's Seles steamrolled the shores thanks to some price target bumps. Netflix soared on note. That perhaps there's no churn coming from the Disney plus initiative the bottom line all these Bush notes it's create conviction which creates resilience and causes complacency keys potential sellers from selling. That's how stocks that's how they have a spectacular rally. Let's go to Joe in Pennsylvania. Joe Boulevard Jim. I'm a first time. Caller are long time listener. Thank you about nineteen months ago you had to show regarding the cloud princess. You mentioned that Cooper software was wonder under the best of the princess. The next day I went out and bought shares yesterday they made an acquisition of travelling and expense specialists come committee. They reached an all time high. Today I'm up a hundred and eighty five percent. You think it has more room to run or should I say I thought that was. It's very good. I think management is doing incredibly well bulls make money bears make money hogs get slaughtered so kick off a little the restaurant. It's a great story. Let's go to FILL IN NEW JERSEY. Police Phil boy adopted. Kramer how are you good. How about you Phil? I'm doing doing good. I'm glad to market came back. It's been a whirlwind overnight. But I tell you I took advantage after hours later. What some good stuff? So that's so great it more than that but anyways I wanted to talk about WorldCom. So you know they. I do my homework. They came out with it. Earning the company solid and now they're selling for semantic. WELL WE'RE GONNA semiconductors are going up this downturn. I bought some yesterday. You know I WANNA buy more. I'm not sure I should. The stock is is not die correctly. I think it can have much more room to run thirteen times. Earnings four percent yield really fabulous management. You're not making mistake. Brooke comes a winner. Have always had a ride in Wisconsin Rod. Hey that's right Big Deal from the frozen Tundra. It's Berber cold in Wisconsin. Well Goodbye Goodbye. You got a big guy. He got some big football coming up. What's going on? I'm a retired TEAMSTER bus driver I took a hold of a rocket called a line. Technologies technologies months ago right back in August it kind of thing. The market took a big bite out of it. So I like to follow rule so over the next couple of Months I bought twenty five dollar blocks. My average cost now is two hundred dollars a share. I sold half of it. Made a seventy five dollars share profit. I'm remaining under the other. Half earnings are coming out at the end of the month. I don't know if I should hang onto this rise. Get take four thousand dollars in by packers super bowl tickets it or hit. I love that call. I think the stocks had a very big run. I want you take a little more off the table. It is a competitive industry. And you've really made it's been a terrific terrific by goes through the tax. Is this market illustrating resilience for complacency. How both Ahmed tonight? What the dividend cut in core lab is a frequent guest on that money singles for the overall Wale Mark? Then pets aren't just for coddling. Ms Best Franken help warm your wallet. To a mining companies can help you make money off the trend in the new year and Constellation brands earnings. beat well what to say making one out of celebratory cocktail. I'm breaking down the numbers with the CPO. So stay with Kramer. They don't miss a second of mad money. Follow at Jim Cramer on twitter Abba question tweet. Gramer Hashtag Mad tweets in San Gemini Mail to mad money at CNBC DOT COM or give us a call at one eight hundred seven four three CNBC. There's something bad bad. Money Dot C. N. B. C. dot com. Take them troll of your financial future without about new mad money DOT CNBC DOT COM Kramer's exclusive C. E. O. interviews full episodes analysis. Even your own soundboard plus special access access to mad money one on one with rules and techniques to break down the market for all investors. The Red Flag that makes tropics stopped. Amelia's it's everything you need correct when you need it the new VAT money that. CNBC DOT com. What is decision tech by fidelity it's technology that can help you find stock based on what's trending or an investing goal? It's real time insights and information delivered in your own customized view you of the market. It's smarter trading technology for smarter trading decisions and it's only from fidelity open an account today at fidelity woody dot com slash trading fidelity brokerage services. LLC MEMBER NYSE SIPC and winter skin to market core. Labs told you everything you need to know. When and it slashed its dividend from fifty five cents to twenty five cents on the last year for its purpose? Fiscal Oil Service company out there. There technology helps producers find oil and get the most out of the reservoirs as the price of crude rises. The services become more valuable so with oil choline up rather nicely at least today's poodle reversal house business practically. It's the worst I've ever seen even worse than January. Two Thousand Sixteen royal briefly traded blow through yards about less than half word. What makes me say okay? Core has been mad money many times. It's a very thoughtful company. They make their decisions based on traditional metrics like for the return on Equity pie-in-the-sky forecasts drill for years of Dividends Been Sacrosanct Bash. Wouldn't unless they had some serious long-term concerns that the oil industry just isn't coming back in the supposed to. When the price of crude goes higher? The news was shocking devastating quarterly cut. Its earnings forecast for the latest quarter by roughly fifteen percent. Yet they cut. They're given by nearly fifty five percent that doesn't make any sense unless management's come Peugeot that the oil business has fundamentally changed at first first glance Kors explanation seemed innocuous quote the decline in. US on Shrek has proven to be more pronounce. Originally forecast in core labs third quarter earnings agrees with these from October. Twenty third okay but in many ways it speaks incredible valley despite an uncertain world where the straight of could be shut down by Iran. Anytime a work you work. International oil producers have let their wells went down drastically. I doing just isn't picking up in fact if you look at the Baker's Land Rotary recount my favorite indicate of joining demand in this country. It's actually collapsing. Your one thousand fifty rigs on land in this country. Now they're severs heavy three that staggered right especially you could see where it was fifty two dollars last year lower than it is by the way. That's why the stock market refuses to really freak out about Iran. These investors sell stocks of tension in the Middle East because this historically it causes well price despite that raw cost inflation and can devastate the economy. We slow it down a lot yet. That didn't happen this time around in the skew things well really is barely budged UAE. Because if you're used petroleum you know what you can lock in prices out five years there. That are much lower than the current spot. It's that bountiful. There are three the reasons for this one. The demand for oil seems to stop growing the world. Used only eight thousand bows per day last year. That it didn't twenty eighteen substitution conservation nations preservation. You name it. It's taking its toll on the growth industry to we have a tremendous amount of spare capacity in this country park because of all the shale fines for the last fifteen years and president trump has been incredibly Oil that spare capacity means. We have a much easier. Time absorb supply shocks three technology. The technology of Rick Redevelopment has producers getting a lot more oil per rig so when tensions there in the Middle East. That's not enough to send the price of crude surging anymore American producers. It's Charles Bigger problem solve. We didn't see a massive spike. If you're twenty five Jones plus half of Saudi Arabia's oil production in September. Maybe we can handle the whole country. SCOFFLAWS off-line for days or even weeks at a time plus not just America. The Saudis can easily prove another million barrels. A day. If they wanted to the Russians are eating up the SPLIT THEY WANNA encourage. There's simply oil oil everywhere and not a drop to drill when core labs the brain of the complex cut its dividend last week. They were telling you this. The situation is only going to get worse for the industry. Not Better and maybe that's all you need to know stipple criminal Jim Cramer. You're one of my heroes Laura Chick every weeknight. Thank you so much for helping beginning investors like me when you you talk about the market. I just believe that your spot all love and thank you so much. Every night we want to have learned and earned I'm a big believer in finding powerful long-term themes and then sticking with them maybe for years and years but that only works if you wanted to do the homework doc. You can't just bet on major trend forget about it. You have to keep checking in to make sure it's still playing out the way you expected which brings me to the humanization of pets. It's the idea that Americans increasingly tree compaign animals as part of the family like we do so we keep spending more and more buying them high quality food high quality healthcare. There's there's a fabulous story that's made our viewers a lot of money over the many years that we've been on but unfortunately this is a big but we always like to talk about what we get wrong wrong is what you get right. Last summer. We updated our humanization of pets. ETF that we created a list of eleven ways to play this team and we got to aggressive in the past. I've only recommended minute. A best of breed pet place with ATF. I decided to be like all those other. ETF makers and put them all in their little more risk Some tried true names aims and a few of them just constantly say they blew up in my face. Commit plenty of the pet stocks are still working here but there were some big individuals. That's why the bad money humanization of pets. ETF is only Browley half a percent from when I updated June to the end of the year versus I thirteen percent game for the five hundred. The same period in particular Henry Shine spun off its veterinary supply business as CO veterans and that thing has been an absolute dog down forty six percent chewy the ultrafast go online pet. Had Food retailer. Second was fourteen percents. Never all the close stocks fell from grace pet IQ and a prescription and over the counter drug maker focused on Alice. Pledge Nineteen percent set we cut pedicures. Wait half when we updated. Etf June because we knew something was very wrong. You're clearly we should have just taken it out entirely a long ago. You Louise Old. Animal will help to down six percent. Even Longtime Kramer fave I desk which makes diagnostic equipment veterinarians in the second half of last year as always bankable chairman was seriously injured in an accident and had to pass the range onto a successor. So what is the lesson here of this. ETF what's the lesson of a lot of UCF's frankly I'm kicking myself because the main lesson is something I should have known to begin with. It's much better on a couple of extremely high high quality stocks that you believe it then a broader basket mixes the good with the not so good. There are times when it makes sense to put your money in a basket of stocks. I will get straight stretch where you're speculating on. A bunch high risk reward names like biotech companies in which. I think we'll be able to see next week when Jane Morgan Healthier Conference but generally speaking trying trying to pick a few winners is a better strategy than owning an ETF even when created by yours. Truly if you're willing to put in the time and the effort needed to invest vest in individual com companies. Well that's exactly what you should do if you put most of your retirement money in an index on twitter people because I know that I'm Jimmy Chill now now. Please don't hit me and say he doesn't like index funds because I love index funds and my daughter called me jumbo chill this morning for complete story. So what do we do with humanization. Nj ship pet stocks going forward. I say let's go back to basics of folks from the best opportunity rather than a best. Buy Favorites you twenty twenty. Actually some of the worst performers executive team. But but I'm going back to the well because I believe in I'm going along co and I'm going chewing which has these portraits of your dogs since letters about them and stuff. These have a lot more room to run. I'm going to tell you why now. Let's start with ubiquitous. Chew you probably see their boxes. UPS guys always got him on the truck. That's the online online pet shop. That was spun off by Pittsburgh June to Kim public at twenty two then immediately shot to thirty five closed on the first day trading stock more time than mid thirties until September. When in a couple of Puerto what was generally viewed as a not so hot quarter and then the stock broke down by mid-november to come into claps? It's bucks in the past month though. It's made a major comeback. It's Kinda stocks are all coming back. It is voted to twenty eight dollars and change as of today. This is really kind of A. This is very typical ramp of a lot of the high growth stocks. That don't make money now. Why is we've been survivable? Well some that comes to time company came public June not long before the IPO window slam shop. At the time investors were still willing to pay fast growing but unprofitable enterprises like Julie by September though money managers had got sick. These high flyers and stocks late choice suddenly went out of style style and Wall Street fashion show. I'm always talking about the other culprit. I think choice results in widely misunderstood here consider the numbers that caused us. Dr Get hammered back in September. That time I'm chewy delivered better than expected sales of forty three percent year. I liked higher than anticipated gross margin three hundred basis points. So we're right I hear you. You're getting some really good news and people just hate it. That's when you had to be buyer. Even better management gave you Bush sales guides for the next quarter and they raised their full year forecast. The boop flying okay should we report a wider than expected loss. But to me that looks like a strong quarter member why we liked these stocks growth. So the same thing with the two we were put in December terrific sales terrific cross marks and raced full. Your forecast once again losses. We're bit larger than expected this time though this back only got dinged briefly before rallying rallying pretty furiously Chu is not an earning story people. You shouldn't be thinking that it's a sales story. But every other metric has been on fire for these guys most importantly you need to look at the percentage of customers who are getting their orders automatically shifted in my lifetime value. People who've signed up for occurring shipments in the latest quarter these automatic orders account for more than seventy percent of Jewish sales. That's incredible that's up sixty six percent of the year before this customers who are satisfied. It's used it. Means Jewish becoming more of a subscription play and that makes the stock much more valuable than all these one off different bus and look choose. Valuation is extremely reasonable listening. It's real trades. It only treats at just under two times next year sales for a company four percent growth that is a steel especially when you consider the two might be able to turn a profit picture. Oh and the lockup on insider sales expired lists monthly schmoozing huge overhang clear sailing my other pets pick things clear ceiling to it so long ago. It's an animal. We'll healthcare company that makes medicine additional feed additives vaccines anti parasite drugs more specialized treatment for comments among companion animals like us your osteoarthritis orthopedist. And you're infections. We use the stuff at home fraud mostly for Invidia. This stocks sold off hard over the course of July and August based on worries that Lanka's encores paying too much for bears. That's buyer B. Y.. You are the German thing and we'll help visit simplisafe billion but once people got their heads around the deal well. The stock was found. Its footing again. It was a great move as buyers motivated celery ISA raise cash to handle that massive one of the worst which is ever the by of Monsanto. You see those ads. Timing people look for other people just assume these guys full-time the deal makes a good around along. The world's number two animal health play play and substantially shifts their focus away from livestock and toward more pet exposure. No Wonder Lanka stock. Bob Shooting there after a couple of months ago the cut reporter robust quarters in annals has graded the stock. I think they illustrated an important change in sentiment here. Longest been a law. Guard Wilson Right now. Compared to the other other big animal health plays like Zo edis which has been so great an IDA which win over earlier plus Wonka was actually. It's really cheap. Stock currently sells for a little more than twenty wanting time six years or resentments. That's incredible bargain for company. That's expected to post fifteen to twenty percent earnings growth by comparison so at us which we know is really terrific. Kristen pack runs a gum. She's terrific now sells for nearly thirty times textures numbers. I think long getting discount I copy but along. His stock is too cheap bottom line. We WanNA to keep playing you musician pet story and I think we should. We need to get more selective focus on the stocks that could potentially have the best prospects. That's why I recommend dubbing damn right now on a long ago. They can't Missouri Tent. Hi Jim thanks for taking my call for some color crap so I got into it after. They've made some operational strategic changes over the past few quarters for still weekly stocks not getting trust and do continue to hall or do I cut and give up on the phone. I don't care for Kraft Heinz. I like growth and Kraft Heinz has very little growth. This is this show that is very much oriented toward picking stocks. And that doesn't have it. Let's go to Joe in Illinois. Joe I'm good L.. Let's it's going on first time. Caller longtime follower your. Show love that my question is about the Merck is The dip buying opportunities were bristol-myers. Still a better bet. They're both very very good. My Chapel Trust owns tomorrow and I think it's absolutely terrific but let me just make the case for one moment about Murph. They had a little problem with one key truth and try involving a particular kind of cancer but ki-choo to is a wonder drug and burqas marvelously. Run I say Merck is fine. Alright all right plenty of the pet stocks are still working. I think this is your double down on the best ones. And I'm like in this. Chew in a Lago. What for me? Money is canopy. The growth way on Constellation Brands Manasseh Pot thing stocks headed higher that way up to earnings. I gotTa ask you about one company. It's a company shares. Were up two hundred fifty five percent point. Nineteen you've never heard in our building named when I turned into night's homework it's wow it's a whopper. All your calls. Rapid fire tonight so stay with Roemer is that popping and fizzing the sound of Vista going flat. After earnings constellation brands his still keeping their spirits up but can the company claw their way back into the hearts and home gamers looking constellation insulation brands the stock war this beer wine powerhouse. Best known for Corona and Madel had written off and left for dead by many investors recently thanks to fears of slowing beer sales. ETA potential overpay for its marijuana's in two thousand eighteen constellation pumped four billion dollars canopy growth. That's a big Canadian cannabis play but over the course of last year the whole week court forgot what this warning constellation reminds us that marijuana's just a sideline for them when they reported a spectacular quarter and they continue to be pulling we'd the company posted a gigantic thirty percent earnings beat all the four basis and their sales came in substantially higher than anticipated. Takes you incredible strength in the beer. Business and better than feared numbers and wine and spirits on top of that management razor full year forecasts. No wonder the stock folded nearly seven dollars. Three point six percent so could twenty twenty terrific rebound year for these guys. Let's check in with bill newest all issues. The presidency of Constellation brands get better. We don't a quarter where the puppies headed Mr Newest welcome back. Didn't man money. Thanks good to be here. Hey Bill you're your quarter was really incredible and what I think people seem to misjudge. Is that as you said. You're just beginning kind of scratched. The surface and Sales Maddelo widen. Why do people not understand that? This is the only real growth in the beer category. Well Mandela Jim is not a one hit wonder when we think about the last decade you came out of two thousand nine at roughly thirty five million cases last year we did a one hundred and forty million cases. It's the number four or beer brand in the entire beer category and it's got tremendous upside. We're just beginning to tap into the general market opportunity around that brand so even I know it's been fantastic and has had thirty one consecutive years of double digit growth. We think the sky's the limit. You know I I don't want to burn lead it here but how people die if they your stock the last ten years well ten years ago coming out literally of December thirty first two thousand doesn't nine the stock was just over fifteen coming out of two thousand and one thousand nine hundred ninety so people would have made a thousand percent over over a decade and as always say we think there's a long way to go now when you've doing some exciting things. I hard seltzer is. The thing is taking Kim Braden this taking the whole market by storm. You said today that you're going to be offering a couple of flavors and you don't expect it to take share from your own beer. Only the domestic appears. How's that going to work well? The betterment category is one that the Seltzer group is really appealing to. And you know. There's there's nothing better when it relates to refreshment than corona so our belief is corona. Hard Seltzer is GonNa be a really important player in this market the market it was sixty mill almost sixty million cases last year. And certainly it looks like it could easily double in two thousand twenty and we're GonNa get a significant share of that market but you let to spend more to be in their correct we do. We're prepared to have one of the biggest introduction spends that we've ever had against a single brand but AH recognize we're spending against a franchise and that's corona so We're we're quite confident that we will get a significant share of this business and and we can't wait for March wonder all around well. I know it's popular particularly the millennials. Now let's talk about with David Kline's up to. He's going to canopy. You stuck by canopy today. There are some people who fear that. Maybe you overpaid kind of like what happened with ballast point where you admit yourself. Billion Dollars didn't work out. Can you reassure rus that you didn't overpay. And the prospects are bright for canopy. Well as as you know as well as anyone anytime you have a startup industry they're spits in spurts attached to it. What we're excited about? His canopy remains the share leader in Canada and the largest seller of cannabis this around the world. Now we're putting in place a person that you MC knowledged yourself is a great season executive who will bring disciplined and focus to the leadership of that the business so we remain very bullish about it. Admittedly there will be times when we get spits in spurts and the cannabis business. We think the long term play around that we'll be quite healthy. Well there's a lot of money in right now in the corporate structure of canopy. You've got kind of hard to understand warned situation if we're here to legalizing United States would you be able to Bible of canopy intake full opportunity for the money that you put in it. That's left well. We don't have any plans to do anything to put more money into canopy. At this point we obviously have worn opportunities and those are in the money we would certainly plan to exercise. This is those. But we're quite satisfied with where we are with our position owning roughly thirty seven percent of the company. But we're we're anxious to see what happens in the United States dates as you know we've introduced the first and free brand which is Base brand here in the United States that you can get through the direct website. So there's there's going to be a lot of opportunities going forward in the US whenever that is legally available to us and you've got to be happy about the way that it looks like the new Nafta's working working out not that you would be expected to be making Mexican Beer Michigan but the whole task situations coming together. Pretty well for you right. Well it has. And we expected expected as we've talked before that the tariff situation didn't make a lot of sense as it related to to Mexico and the United States very tight trading partners and and in fact the tariff issue has not been related to us in the least and we're pleased about that. We're we're just focused on making sure we're going to continue to bring great appear to the American public with our Miguel and corona brands in particular. All Pacific goes a good option to get speciale. We're waiting to get special. Buy Place Bill. Thank you so much for coming on this show. Great to see you good to see you. That's Bill Nunes. Presidency of Constellation Brands. S. T. Z.. People this is the only fear company that has any monies back into the brain. Is Tom the lightning round is over. Are you ready skiing. I definitely up with Diet and in New York. Diane Hello Sir. I'm interested in the names. Oh I think doc is part of the way to be able to keep costs down in healthcare and we've been behind the the J. Age icon Andrew President Kramer. I'm a proud of Resin Kramer. Well okay I'll take that creditors. Pretty vaunted position. What's up? Yeah Hey and just seeing what you thought about thicker K.. Art Becker the flag. That's mental health. No health is Homeless impossible to get right. It's a total spent. I'm not kidding everybody's trying to crack. Mental Health has really unfortunately failed. Let's go to Bob in Ohio. Ohio Bob Low Jim. I am a long time listener. first-time caller your show and your comments and suggestions I'm actually calling for my nephews. Finally I'm starting to get interested in stocks. Okay I opened custodial account for him. That's great When he was in his early king showed no interest now? He's First Year in college and he's taking computer classes and he's interested in the cybersecurity thirty space. Okay so one of the stocks that he was interested in was cloudflare. And I know you reviewed view get when it first came on right after the IPO. You weren't too excited a mile. I don't think there's much to Bob. I I was hoping you know I usually your nephew should do go over some of the stocks that we talk about a lot on the show like a cloud can be one of those. Things have been vetted invented indebted. I would feel so much better if he did. Doc Let's go to Ray in Pennsylvania Ray. Hey Jim probably all right all right are you Good pelous suitably APLA. Just doing an equity offering. I got a little thing and it puts up so much. I'm suspicious of the offer. I want you to wait. How about Brennan and Massachusetts Brandon going? Jim Really well but how about you a pinterest. Yeah yeah we were kind of Luke warm. We had such high hopes and it doesn't have the growth that we'd like to tell you. I prefer for twitter to it. I certainly prefer facebook by the way the reddening destroys well facebook lately. And don't you think that's one of the reasons why the stock is soaring. I guess the print Geis's kind of I guess I got tired writing about it. Let's go to Joe in Pennsylvania. Joe Jim Happy New Year to you. Hope you have a healthy happy new year. Oh Joe Thank thank you. Thank you For All you do Question is a company called the OH. That's peer appear gaster. He's the one who is a cloud based company that has done great things in healthcare. I would buy it right here. It's one of the stocks that I think is just about poise. It's unchanged change. It's almost unchanged to really to really make a move. Let's go to Mike in New York night. He blew same Alibaba Alibaba the Chinese recommend. Because it's kicking a day. It looks like Martin on these fast and sales and almost every company on earth sort of Nick and New York knick. Jim How're you doing. I'm doing well Nick Avenue doing good so I was wondering is Uber in trouble in twenty twenty no no need to give hooper sales they offloaded sell it to door dash merging with GRUB. How get it off the balance sheet and then one more? Let's Richie and Pennsylvania Richie They Kramer. How'd you go all right? How about you you got a document or incident it's called Cloudera the L.? Yes Business Club there. Here's the thing about. It's not as bad Bantus. It was that's enough to make you WANNA buy stock. That's fine with me and that pleasure out of Mike is sponsored by I to deal with the catch up. Does homework just before we went away for the holidays. December nineteenth. Cut this call from Doug in New York I had no see limited that symbols also s e for your home numbers and because I wasn't too familiar with us when a right of the bat. Promise get back to a sensational story but too too expensive stock. I want to be good about. This is a very big deal to Singapore based company. It's GONNA become the leading Internet plate in Southeast Asia. And you were talking about some very high growth aries Indonesia Taiwan Vietnam Thailand Philippines Aleisha and of course Singapore separately see limited has three main subsidiaries corinna Ashok and airplay greed is online gaming. Play the number one online gaming by market share in Southeast Asia. Red Hot thrown games especially mope against and they hold a bunch of exclusive licenses of games from other developers. Mainly Green is a platform that lets you play. Multiplayer Games online which is why they've got the region's top east ports business and that's a killer business to you know I'm a big big believer east sports. How about the other? Two divisions shop is an ECOMMERCE platform the number one commerce platform in the region region by gross merchandise value and total orders. Finally Air pay is a digital payments. Play put it all together and see limited. Looks like a like a Southeast Asian version Amazon pay pound on activision blizzard all rolled into one. And that's why the stock has been Sisli when Doug. ESPN belt this one. A few weeks ago she limit as Americans possibilities proceeds. It's were already up. Two hundred forty three percent for the year he'd been in the urine excellent and the darn thing finished twenty two hundred and fifty five percent. Now if you're such such a mammoth one. I don't WanNa upon the stock until this mysterious homework as far as his talks up so much. What the story okay? Initially after see limited started trading United States. There's a little over two years ago. This topic has died. Does splish had been there. The problem while the copy was experiencing some tremendous sales growth. Really one hundred percents. A lot of that was the financial equivalent of what we call empty calories as the company expanded into ecommerce online payments is gross margin. What it makes to the cost of good sold plunged from thirty seven seven percent in two thousand fifteen to just two percent? Twenty thousand retail payments are lower margin than gaming and a couple of spending a fortune to build out these businesses is it created quite a cloud of what was happening that was good. Meanwhile nominee American investors. Were going to get too excited about Singapore based company that might or might not work out see limit it was burning a lot of cash and there was no guaranteed strategy would work which is why the agr fell from fifteen in October of two thousand eighteen to eleven change at the end of eighteen. Well then the stock exploded hard last year because all those initials started paying off I see limited started picking up institutional supporters who argue that stocks the Vac the Bulls nailed it over the course of last year. The company reported a series of fantastic quarters. In February they posted hundred and thirty seven percents sales birth. Who'd he one thousand two hundred sixty two percent game for the ECOMMERCE business must see women is gaining this global? They started order. Selling your games outside of Southeast Asia Minute success they delivered another excellent set of numbers and while the stocks sold off reported in August. I think that had more to do with the markets rejection actionable things growth. Then with anything that happened. Here's C.. Limited pretty darn good when see living report again in mid-november well then they knocked it out of the park. Ah We're talking. Two hundred fourteen percent revenue growth driven by two hundred twelve percent gain in digital entertainment and two hundred sixty one percent game. ECOMMERCE company's quarterly active users rose from three hundred and twenty one million low company. No that's eighty two percent year. This is become gigantic platform. And they've had some huge response. This talk surged more than eighteen percent now every time. Seeing limited shot the lights out last year it picked up even more institutional support by the last couple months twenty nineteen it was a classic anointed winner. The kind of stock hedge funds by US. Everybody knows could finish higher and listen. This thing reserved rally everybody who got everyone who got behind limit at the beginning of your best your emitted brilliant call okay. There's just one problem. This is now gone from eleven dollars to forty dollars in the last twelve months. It's no matter how great the pisses you gotta get a little cautious after two hundred fifty five percent run. So where do I come down. Look see limited has fabulous fundamentals. There's no doubt this is a tremendous growth story. I am just worried that the easy money has already been made. The stock is not undervalued anymore. More and it's undiscovered anymore can go higher sure that it can. Also Lord this point and I hate to chase something that's tripled in less than a year. The other issue emerging the markets are inherently risky. When you buy see limit? You're not just making it better than the country itself. It wasn't betting on the Economy Southeast Asia that adds another layer of uncertainty. Even though I am bullish on that part of the world because now the twenty two thousand eight hundred I wouldn't be surprised at some of the institutional sponsors side this Guitar Ruin Register. Don't get me wrong. I think this stock is absolutely absolutely worth buying into any weakness but wait for me will pull back less than two points from its high. What appeared forty Bucks Joe? Thank lot of cheese Rica pepper on reported after the bell. It looks really ugly but give this guy. A chance. Shouldn't just got there. He's putting a new team. I continue to Nordstrom is a terrific opportunity. It's way hey down with a good deal. Cosco just blew the numbers. I am just staggered. Do nine percent this world war retailers in the world. And you know what I think both home. The people in Lewis are starting to do better lows have good management change the other day and Home Depot finally going back to where deserves the Alexei. There's always a market somewhere. I find it just for you right here on Jim. Karen I will see you to morrow what is decision tech by fidelity. It's technology that can help you find a stock based on what's trending or an investing goal. It's real time insights and information delivered in your own customized customized view of the market it smarter trading technology for smarter trading decisions and it's only from fidelity open an account today eh fidelity dot com slash trading fidelity brokerage services l._L._C.. Member N._Y._S._E. S._I._P._C..

United States Jim Cramer Andrew President Kramer Joe Iran Constellation brands Nordstrom CNBC president NEW JERSEY Corona LLC New York Bush Costco Donald Trump twitter
Mad Money w/Jim Cramer 10/04/18

MAD MONEY W/ JIM CRAMER

43:40 min | 2 years ago

Mad Money w/Jim Cramer 10/04/18

"My mission is simple to make you money. I'm here to level the playing field all investors. There's always a bull market summer and I promised to help you find it may have money starts now. Welcome to make money. Welcome to Kramer. Other people wouldn't make friends. I'm just trying to make some money by job census team, but educating teacher. So call me at one, eight hundred seven, three CNBC or tweet me action Kramer it's official. This has become a good news, bad news market, the Dow plunge, two hundred and one points today. Plummeted point eight, two percent NASDAQ nosedive one point, eight one percent. Because we got the best jobless claims number forty, nine years economies too hot. So people worried about the fed justify and they're worried that long term bond yields are spiking and might not stop here. When you have a sell off of this magnitude, you kind of have to wait it out a little. I'm not telling you panic, but you definitely don't want to be at the front of the failures. This is not the time to be hero at moments like this. You need some touchdowns to figure out when the pain is likely to end. So I'm here tonight to give you some guidance. I paraphrase Tolstoy and Anna Karenina all happy rallies or like every unhappy selloff is unhappy in its own way. In other words, every decline is different from each other and when it comes to this decline, I think it's too early to be really aggressive, although I think it's okay tomorrow. If we're down for down to start buying slowly, why not be more positive? I am worried about your fellow shareholders. They're your worst enemy straight here. Many of them are people with big profits. Renters who are just along for the. A ride, they don't want to give up their games. So what they're thinking given the damage is. That rising bond yields can do the stock market. Well, they're thinking it's only day one of the sell off and it's true. We should have been down yesterday. Rate yields were spiking what the heck was that while we're up? So I'm saying, be patient certainly pick again if we're down you pick but don't try to call the bottom second. This climb, we're time maybe some price. It's going to take some time for these week. Candid sellers get flushed out regardless of how low ego we just been up for. So darn long. Investors are only now getting so memo. Considering the strength of today's jobless claims figures I gotta be worried that tomorrow we spoke at hot employment number at eight thirty AM, and that could spur even more selling and speedy a benign opportunity. So with those caveats, what do we need to see before we can be more confident that this I'm happy so of has run its course, and you have to use it to buy ten telltale signs I want. I'm watching free you. Okay, I, this is a sell off. That's led by fag Facebook, Amazon, Apple, Nep. Listen Google. Now. Alphabet in the past. FANG has always pounce back, but only it doesn't pass until only after the obituaries and finish the coroner's inquest. The problem I actually read one single death notice for FANG today, and that's very big news fan bottoms after journalist, Bill oceans of ink about how group is outlived, its usefulness. We need stories, but how pace books the canary in the coal mine how industry sources say that Apple's buying fewer components, how Amazon's margins are being squeezed by the fifteen dollar an hour, Gabe, how European governments are putting the jackboots on alphabets neck. Once we start getting those premature obituaries, then FANG may be ready to belts in even established a leadership role again. But for now it's not happening of these. By the way I told travel trust member actually, plus dot com. Club members this evening, Amazon's the most attractive. Second, the drug stocks have been rallying furiously for days. We've seen Algan March higher, Pfizer, Merklein no real news Lewis now at nearly twenty straight points spinning off a long ago and now a new drug, the combat. Obesity diabetes there too high. Why these big pharma names are bellwether inflation stocks. They all pay Gibbons in these dividends get less attractive when bond yields arise. So they tend to get clobbered in this kind of environment and haven't been yet. I feel more comfortable when Merck goes back below sixty eight and five or six below forty. Third on a similar note, dividend yields are offering no protection here because they're too small. The swath good stocks stabilized when their yields hit three point, five percent right now, it's up to be much of a cushion. Frankly, again, this is all about bonds. Many people expect the tenure will go from three point, two percent at three point, five percent in a straight line. So what good is a three point, five percent yield of a stop. That means the pain won't necessarily stop until bond yields stop going higher, or the dividend stocks go substantially lower fourth, you need the watch the Wall Street promotion machine for sign that things of bottomed. There's a very common trajectory. The market's going down. I try to keep recommending stocks. And they're going to be completely Noordh when they raise the price targets or even upgrade from hold the by and no one listens. They're going to switch directions and they're gonna start downgrading. When those downgrades stop sending stocks lower, then you'll know bottoms at hand, but we're not there yet. Fifth markets generals the stocks have been leading us higher, will they be marched out and shot. Lately cyclicals been the best leaders right? Because of a belief that we may be finally beating the Chinese in this trade war, but the Chinese Caisley hold out until the mid terms, and they may decide to do that since the polls aren't exactly looking all that great for the president's party. The truth is we have no idea what's going on with China. Most of what you hear on this issue is mere speculation. And when the market turns ugly, you better believe the speculation we'll get more negative. So we got to expect the cyclicals and the rails will roll over. I am concerned about the rails. Once stocks, your derailed will. Then you start thinking about buying them six when the market gets hit like this, the charter soul go negative because they're seeing double tops, Ed shoulders patterns. I reversal. We saw an AMD stock yesterday. And then again, today you wanna wait until they're negativities. Bake did seventh last week was terrific. Terrific for the cloud kicks, they all moved up in conjunction with Salesforce dot com's annual dream force conference, but that was a spike and I think the cloud stocks could easily see a ten percent correction here. I wouldn't touch them until they're maybe I'd say eight to nine percent from their highs. Although at this pace that compete tomorrow, worst case scenario, they don't go down that much and you miss a minor buying opportunity as much as I love the cloud companies. Salesforce service now Dobie VM where spunk the group is simply wait too hot right now. Let's them in cool. Eight oil needs to start Cohen. Lower today's to two dollars decline wasn't enough market. Doesn't mind higher oil prices as long as they rise slowly, but ever since the president reinstated. Sanctions when ran the price of cruise been roaring and that's brutal for the earnings of every company that consumes oil, which is most of them the put back to seventy four good start. But we need to see more weakness knife. I cannot stress this enough. Jay pal. Our new fed chairman has to stop talking about overshooting stop. Inflation list. Ninety said that that may need to rise, raise rates more than might be palatable. In other words, pal. He may need to destroy the economy order. Save it. That's deadly. The market camp bottom. When we're hearing this kind of chatter. Investors already justifiably of the fed pals adding fuel, the fire tenth, somebody needs to dethrone, king dollar numbers are coming down all over the place because the dollars too strong. We saw that from PepsiCo. Nobody kit that the problem was currency related. They acted so the weakest was organic. That was dreadful. The stock can't stop getting shelled. Now, there are a lot more signs that could be worth watching for the super red hot stocks like Roku square. Cool, that's good. Same goes for everything from the off price retailers to Twitter to my favorite in video toil. But the bottom line is that the long overdue, so of has arrived. If you try to pull the trigger, do some by before some of these boxes or check. I think you're I by won't be your only by so be patient pick if you bus, but leave plenty of room for still more than side garden variety, cleft correction. It's here Glenn in New Jersey. Glenn. Jim, thanks for taking my phone call. I really appreciate it. Absolutely hit my question. My question is about ticker symbol a. m. r. n. just had a real big run-up and I'm a long-time older. Accumulate in for the last six years. I got a lot of money, lot of profit and a lot of skin in the game. But my question is, should I buy. Your, you're takeout your capital, take out what you put in, let the restaurant, but please, please. Please do that spike Jerry in West Virginia, Jerry Jim mountaineer area. All right. Question Jim is on skyward solution. The latest pair of the apple phone, free chips. Sky work was in the phone. You'd think this is enough to get the stock. Now we're to wait on that one. We've got other semi descending doctors or down here. It's too early. It's truly by David. No, hi, David. Likely to take my call. Thank you. The new action alerts member. Thank you for joining up. You're just finishing up your get rich carefully book, and it's lightning. You also have a very professional, but a fun team behind you in the business best in the business. My question is about at the o. d. I liked your interview with the funny group doesn't feel as. And that story. Now with the announcement yesterday of it back position of clouds and its recent pullback, although I bought early and have been adding to my position on the way down, you think this is a good entry point or would you wait till now Wayne comes down with the kind of stock to cut down still more. I don't want you to buy anymore right here. Wait until comes, and that I think you'll do great. This is the long overdue sell off. That's okay. It's okay. We're gonna get together. I just start buying too early some hand sitting in boxes get checked, maybe pick on the way down tonight. My exclusive constellation brands Cup was able to brew profit in the stock soared on the news kid. Keep up the momentum, then it's national taco day. People got one way to sell, right. I'm sitting down with two police top executives to talk about the company's tour around and your stocks that what it takes us. The unknowns in this market they drop. I'll be the judge when we play. I do. I buy to stay with Kramer. Don't miss a second of that money follow at Jim. Cramer on Twitter. I have a question tweet graver hashtag mad tweets, send Jim Email to mad money at CNBC dot com or give us a call at one eight hundred seven, four, three CNBC miss something Ed. Tha mad money, Dutt CNBC dot com. Day in the stock. It's always nice to see a recently downtrodden dot catch fire, especially in this talk belongs to a high quality company constellation brands as it three years of phenomenal outperformance stock in start to lag over the past few months constellation, the beer wine and liquor company. You probably know as Kuroda Delo fell out of favor with Wall Street fashion, show import because the rest of the beer business to be slowing and apart because they made a couple of major investments in canopy growth. That's the best the Canadian cannabis companies. A lot of people thought constellations embrace of buddy marijuana business. As this time there's something was wrong, and the whole side of things turns out that couldn't be further from the truth. This warning constellation beautiful quarter and is a beaten race. Kuroda Medella growing at a ten percent clip in response to stock surge more than eleven dollars or five point, five percent remember. So really bad day for the market, I wouldn't be surprised more room to run. Don't take it for me. Let's think with rob say it's the sea of constellation brands to more about the company's headed Mr. sands. Welcome back to make money. Thanks, Jim. Okay. So rob, I listened to package good company package. Kuka me this thrill with three, four, five percent growth. How are you able to have double digit growth in a category that is not doing well in a group that has almost. Well, it's really all about the subcategories that we participate in gem. So we participate strictly an imported high end Mexican beer. Contrary to the performance of the rest of the category, do a lot to demographic trends and and and really the strength of our brand. This segment of the businesses been a very robust part of the business from growth point of view. And we, of course, have been leading that growth, but you've also introduced a new beer that is red hot premier. Also, some of your older brands like Pacifica, fict- Victoria. These are prints have been around the growing double digit. I don't even know. I don't know where these customers coming from for this. Well, you know, these are brands that have traditional following and Mexico. Victoria's one of the biggest brands in Mexico, for instance, and therefore gained a lot of popularity, especially with the Hispanic demographic in the United States. Pacifico is a brand that has really taken off in southern California and now is expanding throughout the rest of the country. So we've got a great portfolio of brands. We've got some very strong growth drivers. We've got great NPD, as you mentioned with corona premier, which is our low calorie, low carbohydrate version of krona and familiar, which is a very sort of traditional and retro package that is very popular in Mexico and has now become very popular in the United States. We also have, you know, a very strong wind portfolio with our premium brands. That's another segment that has very strong growth from a consumer products point of. You high single digit growth, and we have some of the leading brands in that category with brands like the prisoner and MIO me and Kim Crawford. You know, these are all stalwarts when it comes to growth. Well, there were two things that told me that the narrow Abacha companies very wrong one is that incredible numbers to you bought one point nine million shares of common stock during this downturn. That's four hundred and four million dollar purchase. Obviously, that shows the great faith. Yeah. And actually during the first half of the year, we but five hundred million four hundred million in the last quarter approximately. And yeah, we have a lot of confidence in the business. The first quarter. We told everybody what was going to happen in the first quarter in that we front loaded, our marketing, especially for our beer. New products are NPD premier and for millionaire. And so we expected to have a relatively muted first quarter and those investments in the first quarter paid off pretty much exactly as we expected if not better, you know, you look at our NPD again premier familiar air. Primarily the increment Taliban on that is well over seventy five percent, which for line extensions is almost unheard of in consumer products. Well, because we know you're doing well in that it's obvious that you're taking the offense, not defense when it comes to cannabis in your one of your presentations. Cannabis once a century disruptive market transition, you put more money in this category than all the companies combined, and you're actually talking. In this conference call that this is the future's now for these products. Well, absolutely. The future is now look, I said a couple of things that I think are important and you said it number one, we're playing offense. Not defense, this isn't this has nothing to do with the core business or defending against, you know, the potential cannibalisation of beverage alcohol by cannabis. There's really no evidence of that and our core business as we've demonstrated in the first half of the year and this quarter is stronger than ever. And really what we're trying to do is take advantage of our are strong position, our growth and invest in a line category, which we think is the incrementally will be one hundred percent and is truly a new frontier of a category that will be at least a couple of hundred billion dollars globally over the next ten or fifteen years. We also have invested in the largest producer of cannabis in the world with a leading. Brands, an organization that you know, I think will certainly be a leader in the industry going forward. So we couldn't be. We couldn't be more excited about our canopy investment. All right. So my partner, David favors what happens if you go get a CBD can of whatever is it water was seeming is it tastes thing, isn't mixed with why don't you tell us what will be able to do with the CBD something or other? If we go to a bar or go to convenience store. Yeah. So. First of all, most likely the products that will be produced as it relates to beverages will be non alcoholic beverages. There may be a beer analog. There may be a champagne analog. There may be a spirits analog. There may be a water analog at t. analog, etc. All containing some version of cannabis CBD. Interestingly enough as the non psychoactive component in cannabis, which we expect to become legalized potentially as soon as shortly after this election, because there's a, there's a provision in the farm Bill that will actually legalize CBD the non psychoactive component. And I think you'll see a lot of beverages introduced, probably non alcoholic or in I would say, most cases, non alcoholic. To take advantage of at least the CBD legalization THC containing cannabis. That's going to be some time off. But I would say that the political front is developing very quickly there, and I think that in the United States, you know, we believe that it's an inevitability that the cannibal cannabis will be decriminalized at the federal level. And as we already know, a lot of states have legalized. It recreationally. The majority of states have legalized it, at least for medical and. You know, there's a number of states that have recreational legalization on the Bill, this November, and there's quite a number of states that have medical marijuana legalization on the Bill as well. So it's moving fast. Also. I mean, I think you shouldn't lose sight of the international opportunity. There's huge countries UK's looking at medical legalization. Germany has already legalized medical marijuana. These are all places given our canape investment that that we can play. We think it's important to be able to play an all channels and all segments not just beverages that you're going to own that just recreational. You're gonna be owning it rob because you spent the money and you've got the share that's rob saints. Constellation brands. This stock is back. The company never left back into. Don't on integrity and cultivated with passion. This company has reinvented fast. After a chain of negative incidents. The stock has gotten scored with Chipotle. Looking fresh again, can continue to cook profits with a side of one. Make it to police earlier this year, the beaten down Mexican chain look like it was on the verge of having a remarkable researchers. If you're spending years in the wilderness, probably those Healthcare's twenty fifteen stocks. We're fifty percent for twenty. This gains coming after former Taco Bell. CEO Brian nickel took the helm on March fifth for while it's like it would be smooth sailing for the new in July Puerto fabulous plow quarter in the stock word to five hundred dollars by middle of this. It's highest level in ages. Then the company had yet another food safety system in Ohio causing multiple analysts to downgrade the stock which is now down sixteen percent from institute. 'cause that's always been kind of a battleground stock there. Plenty believers Blida sales, keeping Justin Shane coverage with an app performing last night. Also plenty detractors. So who's right? Longtime followers of the show, I feel like, but let's go right to the source effective with Brian nickel, police, new CEO, and Jack Carson, the chief officer to get a better sense of how companies doing Mr. Mr.. Heart-lung. Welcome to national talk. Day buddy to be here. Thank you spoken to Jack many times, welcomed the money. The first time I'm gonna go right to what you said has to happen, and you tell me how you're doing. Give me your report card in your July. I constantly said becoming more you want to be five, six becoming more culturally relevant, engaging brand, the bill's love and loyalty. Digitizing rotten ours, a restaurant experience hit them more convenient, enjoyable guessing spirits running, great restaurants, great hospitality throughput being disciplined and focused to enhance our powerfull economic model and building a great culture that can innovate next to across digital access menu and the restaurant spears. These are lofty goals. How you doing? What grade do you give yourself? I think we are well on our way in making great progress in each of those areas. We just came back from our manager conference and tell you what the culture of people were on fire. They are so excited about the purpose of AAA and they're so excited about our brand being more visible with our purpose, really engaging with folks on real ingredients, real cooking. And what they do in our restaurants every day. And we just released our most recent round of advertising, which I think our team members are hugely proud of. We got to go into a couple of restaurants and couple of guys had cut out the New York Times ad where it talked about, here's all our ingredients. The toughest ingredients pronounced police AAA, and it's hanging up on the billboard in the back of the restaurant. So guys are feeling great about the business and the commitment to purpose and getting much more visible about all the good things we're doing for food culture as well as giving people access to great right now, Jackson you throughout and Jack, I think that there was a period you and I talk a lot where the company did get defensive, even the loyalists didn't understand that. We insist it happens. It happens in this business, but the company stopped talking about how good the company is. Yeah, you know. Jim, we got knocked on her heels a little bit. You know, we've always been a company that's about food real food, real ingredients, real cooking and people making sure that we hire great people invest in them so that they can run great restaurants. We got knocked on their heels a little bit. So we stopped talking about the things that may police special, the great during now about since Brian joined, and we brought a new team together as we're back on our front foot. We're talking about our food at this conference. I talked to a lot of longtime managers. They're the most excited they've ever been. Dave come up to me and they'd say, Jack, we're back talking about food or back talking about culture. They're more excited about the future than ever and that that just warms my heart because it feels like we're on the right track. Terms of just being defensive. Also, I was going to ask you about minimum wage, but you know what you guys have always been above that and you've been educating people giving people all sorts of perks that other guys talk about, and there aren't as good as yours. Arly rate is over twelve bucks. Some of our minimum wages and areas of the country are at thirteen fourteen dollars per hour, but we give a lot more than just an hourly rate when somebody comes to portray, we give them a future will invest in them so we can teach them how to run a kitchen so they could become the kitchen manager, teach them how to, you know what great customer service looks like a service manager. We'll teach him about the business so they can become a salary manager. And that can happen in a matter of a couple of years. And you can go from an hourly of twelve or thirteen dollar an hour person up to a salary person. You get a company car, you can get options. We pay people bonus for delivering for developing crew into managers. And so there's lots of opportunities to have a long, healthful career at USC the same people, which is what I like. I don't want new people. Now, some of the things that you've invaded, I think as you go equal to your goals. You're starting to delivery, digitized and loyalty. I've always wondered where is a program late Panara where I get a meal free after spend a lot of money. So we're really excited. We just started our AAA rewards program. So the more you AAA, the more free chapel you can get. And that just got started in three markets. So we're in Columbus, Phoenix and Kansas City. And part of the reason why we're so excited about doing it. It's one of the number one requested things. People are asking about, like, how about a loyalty program, and you know we're early days on it, but what's great is it's bringing in some laps users new users to our business because we digitize the business, this mobile app that we have. People find it a very easy way to access AAA and with millennials and jen's e, it's frankly their preferential way to interact with AAA. And we have the second make line that that was a huge advantage where we can take these orders off. Of that frontline, put him onto the second line, and then we've got shelving so you can just walk in grab your food and go. I mean, the convenience level is phenomenal different from the old days very different than when you put on top of it. The idea that will reward you for accessing the brand through new channels. It gets really exciting for customers. Okay project because you've been through the worst so to speak. I see today police searching for new food safety head, James Morrison. I remember when he joined Kim cities, you really terrific higher, but it was time for him to move on. What happened is. Been great. You know, he retired. He was a professor right tired. We needed somebody like him. You know, he came on board helpless, create a food safety council. He's still going to be with us thrown into next year. He's still going to be honor food safety council. He's been fantastic, but he's gonna go back into retirement and so that's. We're lucky that we had them for the time that we had and a world class people in our safety council and food safety is going to be something that's always going to be a high priority for. That's not going to change. People always ask me. You came from Taco Bell where they do have preservatives in. Yeah, there's been you're you've been wore kind of, but never by the way. Never sly always tried to get into slide Taco Bell. You would never do it, but. So people say, well, that's why they never had a safety problem, but that's not true. It has nothing to do with preservative not preserver ingredient non-agreed. Right. Just doesn't. That's just a Canard. Yeah. Look, the thing that I've been most impressed with since joining AAA is the commitment to food safety. I believe this company before I got here had a passion to be a leader in the space. We're going to build on that and what we definitely are committed to doing is real ingredients truly fresh. And that does require different food safety standards to be in place. These wellness checks that we do in other protocols that we've execute. You're not gonna find that in a lot of other restaurants because we are handling fresh food and we're truly cooking every day in a restaurant. So just demands that we have higher level of commitment to safety, and we'll always have to be passionate about being a leader in that space. Shareholders Bill, ackman. All fine, right. Does check in with you periodically Lord shareholder? Yeah. Yeah, they've been great partners. Okay. And then finally, just in terms of of the zeitgeist of the company. I mean, I know because I don't Mexican restaurant. I mean, I've always felt that we try to get letters and you have those behind the counter you. There is an ethos to your company. It was never lost right? Because you know, I was a believer threat. I don't mind saying never lost faith, you know, but the has for being despite those the bumps the road. Yeah, absolutely. The the purpose of AAA doing, you know, food with integrity and the mission of cultivating a better world. It never stopped resonating with millennials in jen's e and a lot of our employees. I think fifty sixty percent of our employees are millennials. Jen's e and not surprising. We way over index with young people as customers, they just believe in the purpose. They love the food and then you know the strategies that we're implementing around how we're gonna turn around AAA. I think the more visible were on those purpose. You know, the more connected engaged will be with those young people. Consumer cares more than ever about their health. Absolutely more than they know more than ever they demand more than ever and the more they know about the more likely they're gonna convict poll. Terrific. Let's leave it at that. Thank you so much, Jeff, for being with us all through this for providing nickel new person coming in Brian Nichols g-o-v, Polly and Jack heart tongue. CFO thank you so much. Have you really appreciate it? Man, monies back after the break. As I told you earlier in the show, the warriors are making themselves known. And when you have a sell off like we had today, it reminds you that you have to build a portfolio that is prepared to handle anything. That's why we play 'em diversified this where you call you. Tell me your top five holdings. I tell you if you're portfolios, diversified enough, maybe mix up little. Why don't we start with a tweet Scott on Twitter at Ascott Kerensky who got right to the point. He has lows Disney, apple Alibaba, and activision blizzard. Okay, terrific. Terrific. Obviously, actual club name, same with apple. So we got entertainment. We have technology. We have retail more of Nelson's making major trait change there. We have gaming activists doing quite well called duty and Allie baba, which let's just call it a Chinese. Chinese retailer. So we have retail we've, but in China, retail America, do it yourself. We've got entertainment, tech and gaming. I think that's perfect. I really liked that port floats little gogo for my taste, but I do like it. Let's go to Greg in New Jersey, Greg. I'm Greg jersey Middletown, New Jersey on twenty three, and I wanna know if I'm diversified. Okay. I Google is ni Amazon AT and t. and mom, it's real estate investment court, mom, it's we had them on that's a long time ago. Okay. So all right. So you don't really need income right now because you're younger person, but that's all right. You got some gross stocks got some income players, Amazon, obviously, I think on web services, what I've been working. Fantastic. That's a great by ride your Disney, we covered that earlier. So we have retail and also tech. We've got entertainment telco. We have tech now I would tell you because of the FANG problem this, and this are little too much alike. You can keep the mammoths I would actually this point let you get rid of Google. Even though I've big position for actual orcs and Atta healthcare company, United health might be good opportunity. You're to clustered, even though you're young, you're still a little too. Cluster. Let's go to Charlie in Texas. Charlie. Jim. What the what the market daily do have some mad money tray with. But I have some off a longer term. Also one I call my super portfolio. Okay. Apple, Amazon, EP, and and adobe in two. Collisions on the pullbacks taking some profits when they run up what you. All right. Let's go to work power our favorite utility. So that's easy enough. Amgen, actually, Lord, Strug name, which is terrific was down way too much. Saves good opportunity. We talk about that tomorrow and now here's a problem. We've got at Amazon Apple and adobe. Now these are going to trade together as we saw today. So I would keep up. I would keep apple. I am. I keep Amazon. I know that's two together and then the other I would indeed toss. Okay. All right bowl that instead dopey that should go Amazon now can stay and David play my diversified monies back after the break. It is time. And then the lighting round is over. Are you ready skid that is over the live around because I'm gonna tell with Rico in California Rigaud. That that that. Extremely talented if I say so myself, what's up. Do I remember you? Of course, remember kidding me. It was like yesterday, the hell is this. The hell is this November. We were talking about that, but was member. I quit drinking put down them, but and I have my whole four one k. in that. I got you. So let's go to work. Let's work together. Well, what was his dog. Like cement heads. That's what we used to call them, and I was caught up with cement, it's okay. Listen to me and listen, good. We do not want anti Bush. What we want is constellation rans s. Really porter. You gotta be an SEC. That's the one that's going heart. John, Pennsylvania, John. Hi gain. Lem really concerned about the recent pick clients with some of the mid caps offer is service stock ethically. It's the Pacific Leigh's. The fifteen percent pullback in out Terek fund is run too far too fast shit up by more. Percent. It's almost thing I should institute some rules and it's up more the hundred percent mcadoo like, would it cool? I say this one is one of those that I talked about. The top of the show, seven to ten percent pullback totally realistic, let it happen and then do a little game. I need to go to Tony in Georgia, Tony. Hunker down. Welker done. Lot dotted in may fifty forty one. It's been going down the tubes about secondary percent since then. Three now? No, it doesn't have a good yield is isn't inexpensive stock, but I have no edge. No reason that I can think you wanna be a commercial real estate Pinson services. We like CBRE for awhile. That's okay. But we can't. It just doesn't have what it takes right here just doesn't. Let's go to Bill Missouri pill, hey, Jim. Bill. Listen. I've been looking at some five g. investments and I already own Invidia and Intel and Qualcomm and rice the AT and t. but I ran across this company called Zales z. y. oh, and I was wondering if you or with them. Dark fiber. I've gotta do some work more work on this. I keep hearing about an ongoing dark fiber shortage. Maybe Zale group is the way to play it. We will do homework and we will come back run in New Jersey, Ron Mulia. Hello, Jim. Hey, rod, great. Thank you for all your help with the home gamers. Of course, my stock is k. t. o. with, okay, this is very interesting one Crato we recommended it. Everybody pre out a lot of hate mail. Lott I hate tweets. A lot of people talking about, well, the stock has been just a huge over Cheever. But at this price. I don't need it, not gonna push it here would prefer to be in Raytheon. Jabba trust owns Raytheon. We'd be talking about this Tober thirteenth teaching. This is the cheapest defense. Why? Not dependent on US buying. It's much more of an international play by patriot missiles as the way to placate our president. Let's go to Maureen in Florida. Marine. Jim, are you for helping people like us get a better handle on our phasing on the same issue? I mean, I just wish her the show when I started what's going on. I started buying stocks and Seventy-nine what's up. Purchase Johnson Controls in the mid nineties by drip program, often stocks and I find it until I got a job with 401K. It served me well for years, but not so much lately. I just don't know if I need a push to sell it, or should I keep it what's. What's. Johnson control Johnston trolls problematic a series of bad quarters, new CEO new guy comes in that not demonstrably successful yet we see more tell you this is the proof is in the pudding. We don't have any proof yet. I don't like this industrials. One of the industrials that I'm just not a back rub go to Scott, Marilyn, Scott, Jim. Yup. Yup. Jim, I got trapped looks like a bad Sean pattern on neck tour therapeutics, and it's all over the place and I'm gonna house a pain, hold it or or a great spec. It's got a big pipeline and drugs. I look to speculate stocks aren't working well right now, but I don't want to sell the stock in your. I think that'd be big mistake. Let's go to John in Michigan. John. Jim, John. Thank you for everything. You do. I, but you're quite welcome. I wanted to ask you at what level would you by align technology? All right. A wind technologies, invisible line. This is the stock. Everybody knows. I like it's up sixty percent. It's only down a few percent from its high. This one has to go seven to ten percent. Let's say, now, you know the stock is too hot. I think it's got a good three. Fifty seven, three thirty five forty, but that's what I'm talking about. Just like I said, the toughest show stage by nothing aggressive. We don't know how long this is going to west and that Lynghjem conclusion of the lightning round. Mike big round is sponsored by TD Ameritrade. What did you think? What happened for heaven sake? When bond prices. Plummeting bond yields soar to Bill to go in there and to start buying slow. Slu willy nilly, queue up for Colgate, take even more PepsiCo down. No, that's not how it works. Nothing these off. Good staple companies do really matters her their stocks all trade like supercharge bonds that plunge right along with treasury prices. And hey, it makes perfect sense who the heck wants core ox with his puny two point, six percents yield. When you get nearly three point two percent from the benchmark ten year treasury, do you really want to pay twenty two times for company with a meager seven percent long-term growth rate at time when it's close, Morton's are under attack from commodity inflation and rising transportation costs. This thing is a bond market equivalent here and bomb market equipment, get slaughtered in this kind of environment. I liked the pips co quarter. Put that was reported the other day comfy saw an acceleration, the area we were most inserted about two quarters ago soda. Sure. Peps go had to spend to get growth up, but you're getting Guoqing in four point, nine percent much better than most other players category in a plastic bomb market. The stock would be worth buying only right here. Sadly this is not a possible market anymore. And pep has very few defenses against the rotation out of these kinds of stocks. This rotations happening faster than usual because we're not used to rate screaming higher, so rapidly, PepsiCo go has three point, four, five percent yield. The tenure gives you nearly three point, two percent and unlike stocks, it's risk-free. So peps go stock it Trump's like a stone. I don't know what to say about Colgate. Two point, five, five percent yield global volume of just one point, five percent and businesses. So Manningly inconsistent. You might as well buy something like they tenure. So the obvious question to ask is why not throw away these stocks? All of them. Why not just sell sell sell. So undersea might ask who needs corks measly dividends fill up shoes, tenure yield. Okay, we'll tell you why. I'll tell you why short-term these stocks are facing withering interstitial fire like soldiers in the first day of the battle, the song, and I can't ask anybody over the top that hail of selling boats when days like today. The only thing that matters is that bond yields are having their biggest one day move since President Trump took office and the bomb market is Mercifully whipping around the much more stock. However, bonds have a way of attracting buyers as they go down in price up and yield. They tend to quickly reach a level where money manager stop selling them on this or more accurately the computer stop selling. Then you have to look at what's been thrown away and think about what management can accomplish this environment active. We're being management. We don't think about that. When we look at Staples, I want you to think of it like this in nineteen eighty nine. I owned an apartment in Brooklyn. And I decided we, we had to rent it moved to the suburbs. We're making about six percent investment for the ram while I said that could be, I could return. So we booted the place for little more than we pay for my. Now we put the money with what's municipal bonds risk-free. What I didn't count on is the twenty five years later. The same apartment would sell for seven times what I sold it for because it appreciated in value. I thought it was six percent income stream better. It was the appreciation I forgot about. It's right now stockholders to deciding whether they went the two point, six percent return on the Clorox apartment or the nearly three point. Two percent return from the tenure looks like easy choice, but ten years ago, Clorox traded fifty, nine dollars. It's now at one hundred forty six and that's without calculating the return from the difference. Of course, that move came during a period of incredibly low interest rates. But how about this? When I sold at prime Brooklyn real estate in nineteen nine, you know, we're Clark. Stop is trading. Seven bucks it would have given you in nearly two thousand percent return over the past twenty years, including a lot of tightening cycles. You're never going to get that kind of game from bonds. Don't get me wrong. These market Turner stocks are behaving. Hideously recognize that the hedge fund playbook says, you need to stay the heck away from the entire group as long as it's just rates are rising on not telling you to try to be hero, please, as I said at the top of the show way for them to go little lower. But if you have a long term time horizon, if you're gonna Ford to be patient than you may want to think about buying the consumer packaged goods stocks Oso Quedgeley into this horrendous weakness again of rush, but remember the appreciation stream dividend street. That's the real pot of gold at the end of a very torture rainbow. You have my permission to pick, but only if the market is down hard otherwise missed it, there's what nature of the bomb markets billion stocks. So we don't want to be Christian. Let it come down. It's okay. It can come down like, so there's always more could summer I, I find it just for you right here, mitt money. I'm Jim Cramer, and I will see you to borrow.

Jerry Jim Apple Amazon cannabis New Jersey Twitter David constellation brands marijuana PepsiCo Kramer Google Jim Cramer Jack Carson rob saints Bill Obesity president
Why Inherited Family Trauma Matters & How to Spot the Symptoms

The Influencer Podcast

1:05:52 hr | 1 year ago

Why Inherited Family Trauma Matters & How to Spot the Symptoms

"When trauma happens it changes us literally changes <unk> causes chemical change in our d._n._a. And this can change range howard gene's function sometimes for for even generations technically. There's a chemical attack after an event dramatic event that attached restored d._n._a. And it tells the cells to us or ignore certain genes enabling us to deal with the trauma that just happen. Today's episode is seriously one of my favorites. I cannot wait to share it with you and for you to discover all about this author author and the book that has made a tremendous impact on me and my life mark woollen is the director of the family constellation institute in san francisco in is a leading expert hurt in the field of inherited family trauma. He's also the author of it didn't start with you how inherited family trauma shapes who we are and how to end the cycle mark specializes in working with depression anxiety obsessive thoughts fears panic disorders chronic pain and persistent symptoms and conditions ends. He is someone that has tremendously helped me over this past year and this is an episode where i get incredibly vulnerable. I talk about parts of my personal life and my upbringing that i've never shared publicly before and mark walks me through how to end cycles of trauma and really tells me how my family history he has shaped who i am and why that's important and most importantly it will also show you who you are. Why you may work the way that you do why certain things maybe limiting you are stopping you from achieving your dreams and how to overcome them. I cannot wait for you to dive into this episode. I also want to make sure that you have subscribed up to the influence or podcast. If you haven't done so already you can subscribe wherever you tune in from and please leave us a review while you're there make sure to screen shot this episode on your phone tag me on your instagram story and hashtag the influence or podcast. 'cause i really wanna know what you thought about today's episode and if there was anything transformative the happened in the way that you look at your life and how you show up if you're wanting even more influence or podcasts goodness after the episodes then please join our facebook community for daily daily tips on how to up level your life and your business and you get to chat with other listeners. You didn't go to facebook dot com forward. Slash groups slash influence or podcast to be a part of this wonderful wonderful community. Have you ever bought something online only to find out later that you missed a discount well with honey. You don't have to worry about that anymore. Honey is a free browser add on that finds me. The best deals online now. I've been using honey for over a year now and how it works is the app magically auto applies the best deal to my my car at checkout honey fines discounts and coupons to some of my favorite shops including amazon sephora nordstrom in so many more. I've bought everything from makeup up at sephora to office supplies from amazon using honey which saved me over thirty four dollars look. There's really no reason not to use honey. It's free free to use and easy to install on your computer in just two clicks so shop with confidence. Get honey four free at join honey dot com slash t i pee that's join honey dot com slash t._a._i._p. Honey the smart shopping assistant that saves you time and money when you're shopping online welcome to the influence or podcast. I'm your host julie salamon a marketing strategist brand building expert speaker and new york times bestselling wrestling publicist. This is where i take you behind the scenes with today's top influencers industry insiders and entrepreneurs as they share step-by-step strategies to help help you turn your online dreams into purposeful and profitable business. Hi mark thank you so much for being with us. Today i julian liam glad to be here. <hes> now as so many that listen to the show or follow me on social media and as you know i mean your book it didn't start with you is so so incredibly profound it has touched me and transformed my life and my work in in so many ways you know injustice such a short amount of time time and <hes> is truly one of the most highly recommended books i could recommend to someone <hes> i feel like i've unlike should should be the president of your fam- club because i've bought like ten of them and i just pass them out like candy. I think that it is so important that you know every every human being on this planet who breathes and who came from another human being to read this book so <hes> <hes> it's incredible so mark i know that you had a personal experience <hes> with kind of your discovery into the work that you do which we can talk talk about about in a little bit but i would love to know kind of what was that that <hes> tipping point if you will of when you really knew that this was something that a lot what if not everyone goes through whether they realize it or not and that this needed to be the message that you brought into the world you know many many two years ago i was working on as a young therapist and i i didn't have the concept of inherited family trauma back then yet here. It was seen clients <unk> that had symptoms. It couldn't be explained in the context of their life experience. They were carrying trauma but didn't experienced reince this trauma directly. We'll talk about this later. I'm sure how the stress responses ner of her parents and grandparents are heritable but going going back to this time it was a time when i was working with many self insurers <hes> many cutters in fact there. Was this one cut her. She she was a twenty four year old woman and she would cut herself in the most extreme way <hes> she would nearly bleed today to cut into her arms or legs eggs are abdomen. I'm so deeply that she would hit a vessel and our parents would have to rush to the hospital <hes> <hes> to to stop the bleeding and she would spend weeks at a time in a psych ward so one day we're in the office and you know showing me the scars on her arms and legs and i handed her a pen and i i'll call her sarah for the sake of the interview i said sarah i'm going to hand you a pen and envision the this is the knife that us and when you bring it to your body stop up there and tell me what's the first image what's the first thought what's the first dealing and she brings the pender arm and as soon as she gets to her skin when i say stop there what what's happening right now and she said i. I don't deserve to live and here. I am looking julia twenty four year old woman whose life has just gone and i said sarah will what have you done. Did you cause was an accident. Did you break up with someone at some try to take take his or her life <hes> and she said no nothing like that and so i did the things things that i knew how to do back then. I looked in her history with her family. I looked at a relationship with her mother and father and she had a wonderful vo relationship with a mother and a wonderful relationship with her father. She was able to take in their love and their nurturance and had just good memories so i did the other things i wanna do. I looked at the attachment with her mom. In here. She had a strong secure safe attachment a good berth good pregnancy everything everything was lining up. I was flummoxed. I had nowhere to go so thank god. I ask this question but i said tell me about your grandmother. Grandfather your grandparents and boom. She dropped the ball. Her father's mother had been an alcoholic and she was driving the car drunk and grandpa was in the passenger seat and she crashed into a pole and she survived but her husband went through the glass and got cut lacerated on the glass and lead to death before the ambulance could arrive an ant moment. Everything was clear she. You know my my client sarah. She was carrying this trauma of bleeding to death but wasn't just that. She also carried her grandmother's feelings of. I don't deserve to win. You're taking another's life particularly the life of her beloved and so in that moment i i i i knew where to go and we were at that moment. I had her visualize her grandmother and grandfather on father in front of her and <hes> tell her tell your grandfather what you do tell him that you cut your body and you nearly bleed to death away. He did lead took an and she did. This and i said what's happening and she said i can feel him there and he doesn't want me to do this and he's telling me that this doesn't along to me. You know like like the book title the book it didn't start with you and then i had talked with her grandmother mother and say grandma. I never understood this but when i cut myself i have this feeling like i don't deserve to and i can see this is the feeling that you had when you crash the car and took grandpa's light and in that moment in that session she she stopped cutting and i realized that way back when we had to look into the family history beyond the parents so we had to look at the traumas of our parents as well our grandparents perhaps even a great grandparents because we can be the unwelcomed beneficiaries cheers of these traumas that never belonged to us in the first place <hes> now i know how important is for you to reach the right audience the right way imagine the best place for that a place where you can connect to your idol audience or customer a place that has exactly the people that you're looking for for an even better. They're looking for you. Lincoln ads can help drive the results that you're looking for and that you care most about now. 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That's lincoln dot com slash influencer for your free one hundred dollar at credit terms and conditions apply so yeah i want to dive into more of that the what you said about you know the family their challenges their anxieties their experiences <hes> <hes> how is that possible for that to be inherited down to me. How does that happen and i know that you you mentioned this a lot in in the book <hes> with epigenetics could you break that down for us a little bit so we can wrap our brains around that glad to as the infant's we don't enter the world to use a computer analogy with clean hard-drive as an operating system already in place that contains the fallout from the traumas that people in our family history of experienced and here we are born with these fears and feelings don't want to us and we have to go into the science to to really break it down <hes> when a trauma happens it changes us literally changes us at <unk> causes a chemical change in our d._n._a. And this can change how our genes function sometimes for for even generations technically. There's a chemical attack after an event dramatic event that attached to our d._n._a. And it tells the cells to us or ignore certain genes enabling us to deal with this trauma that just happened and and then the wear jeans are affected actually changes how we act or feel for example. We can become sensitive. Take a reactive to situations that are similar to the original trauma. Maybe a trauma pass generation so that we have a better chance of surviving it in this generation. I'll i'll give you an example. If our grandparents came from a war-torn country they would develop and pass forward a skill set that that helps them survive this war trauma may be sharper harper reflections or or quicker reaction times. <hes> bombs going off. There's there's bullets. Flying is uniform. Men in lining people up in the square and grandparents are terrified so in their physical bodies. They're developing reactions to the violence to help them. Kim survived this trauma and that's what they're passing forward a a stress response so we can inherit the stress response of the problem is we we can inherited stress response with the dial set to ten and here we are continually preparing for this war this catastrophe that never arrives but our body doesn't know and we rarely make the link the our our hyper vigilance silence our depression. Our shutdown is connected to our family members. We we just think we're wired. This way. Julie you know august is just the way i am. I get nervous when a minute crowd of people or i get nervous. When i hear loud noises or or i get anxious when i see a dark car passed by yeah yeah. I'm afraid of flying roy moore yeah yeah oh you say and i'm on page forty six of the book winning tangled you unconsciously carry the feeling symptoms behaviors or hardships of an earlier member of your family system as is if these were your own now i it's it's strange but true and what's strange about it. Is that if we don't don't make this link we we don't consider that we are carrying our grandmothers or grandfathers trauma. Scientists have long suspected something like this this was happening but it wasn't until about thirteen years ago that a neuroscientist named rachel you gouda on mount sinai medical medical school discover the issues working with holocaust survivors in their children and she discovered this strange thing. She's found that the children were born with the same trauma symptoms as the parents specifically the low levels of cortisol. The stress hormone under gets gets us back to normal as after a stressful event so she finds this in the holocaust survivors and the children both is anxious or depressed both carrying the effects of p._t._s._d. She finds a similar pattern in babies. Who were i'm born to mothers who were added near the world trade center when it was attacked on nine eleven. Do you remember that study <hes> so she looks accent. Mothers were pregnant <hes> they go on to develop testy. Davies also go on to develop p._t._s._d. Not only that they were smaller further just they're just stationed wage and they were born with sixteen genes that express differently than babies who weren't at the autry <unk> in utero right center yup and also in the effects. I remember chernobyl. I mean not only did they. We have physical effects because of the amount of radiation but it was you know they're starting to see now because it happened in the eighties. I mean children that were born then that are now having children in just like even the children of were wanda the genocide on the children who weren't even there. They're experiencing thing the symptoms of terror that their parents had gone through just like you're saying genova iraqi. Huda tells us that if one of our parents add symptoms tombs of p._t._s._d. Post traumatic stress disorder that you and i are three times more likely at symptoms of it and we're returns more likely to struggle with if your depression mrs this is a major discovery in the last fifteen years epigenetics how it's out we're being able to link these feelings in our body with traumas occurred if or remain born and and i wanna talk about that a little bit more because i know that you had mentioned earlier that you know a lot of times we're completely unable to differentiate what is ours from what isn't because we don't know what we don't know. No and we just feel like you know where we were born this way or this is all i've ever known. If you you know you you you don't think to think outside of that box so to speak and you talk about unconscious loyalty a lot in the book and i would love for you to kind of share with us. What does that mean and how does this affect or influence. It's the way that we live and respond in the world so we know from the science that epa genetically we can carry birth events that took place prior to our birth so we can carry a stress response our mothers stress response our fathers stress response to an event that they experience but how do you explain and i love the question. How do you explain when our the mother suffers and we suffer similarly. Our father fails at age forty and we're already born but around the age of forty we start she metaphorically shooting ourselves in the foot on losing our money similarly <hes> our mother <hes> <hes> a is treated poorly in her relationship in we're treated or early in our relationship. Why is this and in science can't explain this though it's observed phenomenologically again and again <hes> there seems to be <hes> an unconscious loyalty the children have parents to suffer similarly and again they rarely make the link for example <hes> we repeat our moms or dads failed marriage. <hes> you know i i can. I can talk about in the book i do this. I talked at great lengths about a we carry is events generation louis but but you're right there is this. This concept upped that we can't backup hasn't been shown yet to exist in terms of science are the loyalty to suffer similarly. You know i talk talk about in the book. Something called the four unconscious theme yet and in the in the four unconscious teams. I talk about this ted great length how this this sort of an ancestral alarm clock it starts ringing as soon as we reach a certain age or <hes> <hes> ex- experience a similar event to one of our parents. It's like a a trigger gozo that sense the whole ball in emotion in my book. I talk about one of them. Is i talk about a woman who <hes> she loved her husband. She loved optima lot but as soon as she married him she felt trapped and when we looked at her family history we saw that both grandmothers or given away as child brides at nine and twelve so here she was connected with her grandmother's experience it happened before choose choose born we can in a week and look at a grandma would have <hes> may have developed a stress response to this feeling trapped in the marriage could be heritable or there's this unknown this unconscious loyalty but extends beyond the veil extends beyond <hes> <hes> the the experience experience of are being born or not born with a blank slate. You know when i in the book i talked about what happened with her sisters. They also carry the trauma but experienced experienced it in different ways to one sister married a much older man twenty thirty years older the grandmother and the other sister. I never wanted to be married at all. She refused to be married less. She'd be trapped. This many triggers <hes> i oh i can mention joy in a week moved to a new place and trigger. Suddenly we become depressed like our ancestors were persecuted enforced out their homeland or we get rejected by our partner and the grief in us is insurmountable and it takes us back to a much earlier your time may be too when we were an infant and we had a break in the attachment with our mother or we get pregnant and it's as though again this ancestor alarm clock starts ringing i i one time worked with this woman. She was consumed with anxiety but she had no idea why and she came and miles and i said let's. Let's go a little deeper. Do you remember when you first started feeling the sanctions and she said i. I don't know maybe six six six seven months ago and i what happened back then she will. I became pregnant back then and i. I forgot to mention pregnant when she came to my office and so i said what is it about that as you have you. Has you feeling edgy and she said i don't know maybe a harmless baby. I this this year. I'm going to harm this baby and i asked her if she or anyone in her family ever harmed the baby and she was about to say no and she said oh my god in it at jogged memory. She remembered that she heard a story about her grandmother. When she was a very young woman. The grandmother lit a candle and it caught the curtains on fire in the house on fire but the baby was upstairs sleeping and she tried to run up the steps they were engulfed in flames and she couldn't get the baby out and then my client said oh but we were never allowed to talk about this when upset my grandmother and then in that moment we made the link that she had an errand at this terror pattern from her grandmother and then we could break the pattern and work with it and i want to to kind of dive into some of those what those patterns could be your what you call you mentioned earlier the four unconscious themes what are the females <hes> and you mentioned for and i would love maybe maybe to go through each of them briefly for those listening that they should kind of look out for and then <hes> i want to kind of dive into you know more of the tolls of of how two we don't know free verse this is the right way but how do we get to a place of healing with the traumas that may be there that we may not even consciously no you know are are really influencing so much in our lives that are not going as we would like it to go the first one you talk about <hes> merging with the feelings behaviors and experience of parent <hes> it could also be a grandparent as you just mentioned in that story that you shared now so i agree kick down the merging and identification <hes> we when we merged with a parrot we we don't see ourselves as separate <hes> it's it's that that story of <hes> mom <hes> gives away her first child and we unconsciously aboard our first child not realizing that were merged or living a similar life often the similar misfortune so our again our dead fails a ah in his in his forties and we start to fail at the same age in one of the signs on that were merged is something happens around the same aged <hes> or i talked about earlier a similar event like getting married or or having a child or moving to a new place sore or what was the other one i mentioned <hes> i'm getting married <hes> having a child moving to a new place his <hes> <hes> oh or getting rejected by partner some of the signs of <hes> that that were carrying trauma that doesn't belong to us <hes> so the foreign conscious themes our theme number one. We've merged uncon- they're all unconscious. We don't understand the effects we've merged with a parent without making the connection that we're living similar life an unhappy life <hes> depressed life <hes> suffering in a similar way another theme is when we reject a parent we are or unconscious effects of that rejection for example the behavior that we liked that parrot. We can't see it in ourselves. We disowned it and it can express rest unconsciously and us in other words. We can't see when we're the saying or will pull in a romantic partner that expresses that same rejected behavior in other words. If mom was cold or pull in a partner who's also cold <hes> so we've another chance danced to heal that trauma <hes> or could even pull it a nice partner but turn them cold because we're hyper vigilant and cautious expecting them to to be caught expecting them to do to us what our parents did to us so or another way rejecting a parent can affect us as we <hes> the way they treated us the way we envisioned the way we <hes> <hes> believe retreated. We treat ourselves the same way so far. Mom and dad ignored us. We can ignore that young heart inside us or if dad was aggressive we can be inwardly aggressive research or mom was critical can be self-critical doing to ourselves what we believed. The parent did to us so i always say it's never a good idea if we can help it to continue this rejection and in fact there's even a study done by harvard called the harvard mastery of stress study that was it's done in the fifties. I talk about this in the book but i mentioned it here where they looked at twenty one year olds and they follow them for thirty five years and they asked asked one multiple choice question describe your relationship with your mom and your dad and they gave you warm warm and close one friendly was to <hes> tolerant was three and strained in cold. Hold was four and people who checked tolerant strained or cold thirty five years later later if they checked us about their mother ninety one percent of them had a significant health issue my neighbor fifty fifty six you know we're talking about coronary artery disease diabetes alcoholism <hes> and similar numbers with the father eighty two who in fifty percent <hes> so this was an interesting study and it. It's kind of lost in consciousness people <hes> i in fact i never heard of the study until i started to do the research and it was just assassinated. I see this bears out mostly to be true that we the more we reject apparent the more we can live an unhappy life similar to that parents in fact similarly meaning the more we reject them the more we can merge with them may which is also true and then those are the first two teams the third thing that's unconscious as when we have a break rake in the bond with our mom and and that can bring a whole host of <hes> unconscious experiences into our life for example when we if we've a break in the bond with their mama breaking the attachment it can be a challenge for us to feel safe insecure in life when mums connection is cut off physically or emotionally we can have difficulty trusting the feeling of who we are inside and that's because child's inner experience is dependent on mums tune-in so when we have a break with our mum it feels like a break with ourselves ourselves with our gut gut feelings with our core. The psychoanalyst heinz kohut talks about how the glean in our mothers. I is the vehicle or how a child develops healthy way healthy narcissism but when we're cut off from her mom's presence when that glean wasn't there because she was depressed that she was fighting with our dad. She didn't got a lot of atonement from her mother. A we can be cut up from our core. I mean i can go on and on yeah. Well and that's what i found so fascinating about this one because when i before i kind of read the book if if someone would have said did you experience an interruption in in the early bond with your mother i would say of course not my mother's great. She was always there. You know i lived with her. You know until i went off to college <hes> but then as i read the book i realized that it it's it doesn't necessarily mean a physical separation and that's what i was telling myself that it was like this it. It's it could mean that but it could also mean a emotional separation. Oh yeah mums depressed or not in sync with with with the baby the message the baby gets his something's wrong. Where where did she go or or if if mum's afraid i'm afraid or her attention gets diverted verdict because of stress trust because of her relationship with dad or stress because of attention going to another child or she didn't get a left in her mother. Weep panic back and this can be as early as in utero. Where did she go. I don't matter i'm not enough or i'm too much or ultimately. Something must be wrong with me. In his earliest in utah we can learn to organize around our mums dealings with with the idea that isn't even cogitate. It's it's a sort of a a a an migdal response that if i make mum feel okay i'll be okay and so we can re learn repeatedly early to leave our court to attend to her feelings to make because it's a survival mechanism. If i can make her feel okay she'll make lethal of k. but we no longer trust receiving from her and then we we we feel alone inside and we urine for the security that's missing even though she was is there technically dismissing from in the brain's reward motive vision circuitry and then we start searching outside ourselves woods missing alcohol or can be drugs or sex or t._v. or cell phones whatever it is that absolutely louis. You know that's that's what i wanted to call attention to the book as the third beam. Was there a break in the catchment physically physically or emotionally the disrupted our connection with our own inner core with our own gut feelings and can we get back to our got by healing this break in the bond. That's the third thing and then the fourth theme i talk about what what you mentioned an identification with someone other than our parents like grandma or grandpa like sarah cutter <hes> or the woman who was terrified that she would harm her baby baby. She was identified with her grandmother who had lost baby and the fire when she let let that candle so that's an identification vacation we can be identified with a grandmother a grandfather an aunt an uncle a victim or a perpetrator in the family a sibling who did poorly half sibling that was given away things like that have you heard me rave about the company making in style issues for women and girls out of recycled plastic water bottles and they're insanely comfortable and machine washable well if you haven't. I'm so excited to introduce you to rotties. Rossi's has quickly grown to a most love gotta have them brand and it's no surprise that they have over one thousand nearly perfect reviews. Rossi's are the everyday flats for life on the go. They're stylish versatile and they go with everything from yoga pants to dresses skirts now. If you've seen me on the graham this summer you have seen me wearing my roth these out. I have watched three times and they always come out looking completely like new it will literally blow your mind that these babies are fully machine washable. Every time you need to refresh you can just simply toss them in a washing machine and it's like getting getting a fresh pair of shoes every single time. Check out all the amazing styles available right now at rossi's dot com slash influence or go to rossi's dot com slash influence or to get your new favourite flats comfort style and sustainability. These are the shoes you've been waiting for head to roth these dot com slash influencer today so wanted to make sure that you knew about my brand new and free masterclass that i have going on right now over at pitch at perfect dot net slash masterclass now one of my favorite topics to dive into is pitching in that is exactly what this masterclass dives into even more here in this masterclass. I give you the five simple pit strategies that help you land your first five k. brain deal and i also give you five easy fixes that take you from. Hey nobody's actually responding bonding to me to landing bankable collaborations so all you have to do head over to pitch a perfect dot net slash webinar to sign up and you can get to watch it and i would love to dive in because it's it's it is so much and it's a lot to like sink in and to think about and again you i mean really you map it out so beautiful in the book <hes> but what really was fascinating for me and i know that we we talked before we got on this conversation to kind of map into this is once you kind of learn about these themes. The next step is is what you call the core language map and this is really you know how to uncover which theme you may be connected to unconsciously <hes> and i would love to kind of go through that and <hes> i'm happy to even use my own life experience and some of the stuff that i shared with you prior <hes> as we walk through this that would be <hes> a great example for those who are listening just because of how beneficial official i think it could be thank you that would be great yeah off the court language about what is so troubling and i've discovered that when a <unk> trauma happens it doesn't just create the stress response this this this change in her our d._n._a. But also leads clues behind in the form of emotionally charged words and sentences clues it. You know if we know how to look for it. Creates like breadcrumb trail and can lead us back to a traumatic matic ben and her family history or in our early history with our mom and when we know how to uncover this trauma which is unconscious language. It's like finding that missing piece of the puzzle. Let's the whole picture come into view and and can give us a context that it explains why we feel the way we feel so yes. Please tell me tell me about your trauma language. Yes let's dive into my trauma <hes> so when i was going through the book you know the first thing that that was it's kind of popping out to me and <hes> i went through the core complaint first and then the descriptors that you call them to really kind of describe that complaint <hes> and then and that leads into your sentence and what i really uncovered is that when i peel back all of the layers and all of the onions and even though it didn't make any sense to me because i'm educated. I'm self sufficient. I started in grew my own business. I have a family. I'm married on paper. Everything looks great but there is this visceral deep fear inside me that you know my my biggest fear fears is is that i would be left alone homeless under a bridge you know no one cares and it's like i server even existed. Okay yeah yeah yeah so when i hear that language <hes> no one will care. I'm <unk> homeless. I'll be left under a bridge on so the first thing as i start spinning a rolodex my you know or cadet language comprom- whose languages which is not even two things pop up for me the first thing i would ask somebody would be what i talk on the book what i call the book. The bridging question and <hes> would i would i would i would i would say is okay. Was there anybody in your family who was left who was homeless who wasn doesn't care for who lived under a bridge or on the street and i think i asked you that and you said no and then the second question that i would ask ask from that. Same language is telling me julie <hes> events that happened when you were small or in utero or i forget them now but you'll probably tell the listener on when you were young <hes> that would have occurred <hes> they were you felt disconnected alone left and when the word homeless doesn't always i mean someone in the family is homeless. It's held a baby would feel when there's a break in the attachment with the mother i would ask you those questions and it over from here yes so i mean the ages of from what i can remember. My parents divorced when i was seven so there was just a family break there. I i went to live with my mother <hes> i am. I have an even before you tell the rest of it. The ages going up to just seven three four five six seven. Whenever your parents were getting long would have also strained or stressed the attachment because mom would have been freaking out or or depressed or or anxious sad worrying about her relationship correct and and when they split i had an older brother who went with my father and then i had an older half sister who was my father's daughter who still dillas <hes> but she ended up not really living a great life. She became addicted to drugs at a young age which then caused is this basically schizophrenia and bipolar within her and she's been living in a halfway house for over a decade so so again you when we're looking at this <hes> this could be two things. This could be a language of a break in the bond. I'll be left. I'll be alone. No one will care which will be what the little girl. The toddler would feel if her mom and dad are fighting splitting up unhappy her. Mum's attention is taking coming up with a broken marriage so that's one place that exists addendum curious about could also be an identification with the sister so you have old was the sister when dad left that merrill lynch she was about two years old. Oh okay so now she he has a break in the bond because her are likely to have a break in nevada because her mother would have been stressing round this this marriage that's fallen apart. How mike gonna survive. I do have to work is is he going to be in the picture all those questions <hes> and if you tell me the sister didn't do well. The another question i have is too. I in some sort of unconscious sympathy heal these feelings along with her and that could be quite possible. Look would be in your early family history with what was going on. When you were little and the second emplaced i would look would be to this sister and <hes> how in an unconscious sympathy we talk talk about earlier unconscious loyalty. You didn't do well and i benefited by getting your father. He came into my family and you lost him and because i gained a new loss there's a part of an unconscious loyalty in me connected to you and so we might look in that direction too but again. I want to say for the listener. The first place i go in working with the healing would be in working with a mom may have been her attention might have been taken away when you were little and as early really as even before i could consciously remember it absolutely and so i would look at things that would you know when i'm working with awesome began look from conception to age ten to see to look at events that would have broken the bond that would have stressed the bond that would have had had the child pigewoman mom's here. She's here but emotionally. Maybe <hes> i don't trust that i can receive from her or close with her but i'm the giver or i'm really close with her but the bond is about me making sure she's ok rather than the bond being about i received from her and i trust her love nurturance and care so that's some of the distinctions we would look at is <hes> in question can i can i trust or nurtures and rec- or love and care or is it that i from a very early age learn to be the giver because she was stressed out great and when i think i think about the the ages of zero to seven as well with my dad and how stressed he might have been i mean he. We didn't have a lot of money growing up he came. He lived in poverty as a child. He was one of nine boys. My my grandmother had nine. She had ten children. Actually the last one was stillborn so she raised nine boys in poverty birdie and a two bedroom shack and so there was always this you know this feeling of detachment from him because there was this focus on him to just put food on the table. You know very blue collar. Working man didn't have a high school. Degree didn't have a college degree worked night shifts at a factory and so there was there was just the the i remember the feeling of the heaviness of that of the stress and anxiety and having us of that sure being one of nine children that's a lot of children and the may not have been enough mom to go round and that also construct lawn and the fact that she loses a baby <hes> her attention is diverted again in a what we know from this work. <hes> is one of the most replicated studies ladies in all of epigenetics is when baby mice or separated from their mothers they can see the effects. The stress response is carried for three generations and so that means that your dad's roken relationship with his mother is heritable and you could also have acquired <hes> you know they acquired in as part of your <hes> in your your essence since his experience of not getting enough from his mom you know it's interesting we can look at the studies in two generations in humans and you know we we. We do it all the time. <hes> we can see the you know the way rachel yehuda looked at <hes> holocaust survivors and their children in fact three years ago she discovered that traumatized survivors and their children they shared the exact same gene changes in the exact same region of the very same gene technically. It was the f. k._p. Five gene a gene involved in stress regulation depressive disorders <music> but researchers have looked to studies with mice because we cannot cause trauma to humans <hes> and so what they do is they have done this with mice were they've. <hes> caused a stress response by separating mice from them. Moms sometimes even just a short period of time <hes> and the effects could be observed three generations in my book. I i talk about. Let me see see if i can find you some page thirty five yeah yeah here it is here. It is in one such st. I'm going to read four lines from my book. In one such study researchers prevented females from nurturing their pups -rupt three hours a day for the during the first two weeks of life absorb just the first two weeks later in life their offspring exhibited behaviors similar to what we call depression in humans. The symptoms seemed to worsen as the mice aged surprisingly some of the males did not express the behaviors favors themselves but appeared to epa genetically transmit. The behavioral changes to their female offspring. Wow yeah yeah right they're needed or they're you know it could be. You know what happened to your dad when his mum's attention got diverted with the missing baby baby or what happened to your dad being one of nine children not getting a lot from his mom. You know that would be like also fathers who go off the war and they come back mum numb from the trauma daughters carrying their father's fight flight or freeze response is shaking breaking. His terror is shutdown in your case. It could be carrying this feeling of knowing there. No one cares. I'll be alone so that that could be feeling to our finding three different. Wets right three different stages from all all of these different layers. I heard a quote once and i don't remember who said it but it was <hes> what cannot be transformed will be transmitted. How how do we learn to transform to heal this trauma so we don't continue to transmit it good good yeah. I feel like <hes> the bearer of bad news. I've just been delivering you know all the bad news that were all in the same boat in its sinking it up and i'm not getting any of the good news so thank you <hes> <hes> yeah. There's there's actually a lot of good news. That's coming out right now in the research and and i'll talk about talk about the good news first and then i'll talk about how we're he'll <hes> so researchers are now able to reverse the trauma symptoms in mice and on the implications are pretty fast so they those mice. They're separated from their moms. Once they're placed in positive louis stress environments as adults the trauma symptoms reverse the behaviors improve and even the changes that they would <hes> ah the changes that would be transmitted to the next generation in the case of this one study changes in dna methylation <hes> this the changes which prevented the symptoms for being transmitted <hes> so there's lots of that going on now those his research showing that when <hes> my sir given traumatize mice are having positive experiences france's their trauma symptoms reverse and that's exactly what we do with you. It's how we heal. We've got to calm the brains stress stress response whether we've inherited it from her father or mother or whether it came from an early trump with our mom break in the bond we've got to calm the stress response and we do this by having new experiences that are powerful enough to override the stress response so it isn't just having new experiences. It's practicing the new feelings and the new sensations associated with a new experience for example. We might talk a lot about this in the book how we can experience how we can have positive experiences receiving comfort or positive experiences of receiving support from the parent or the didn't have a lot to give or even feelings of compassion compassion or gratitude arriving arriving feelings of compassion for our dad. When you were telling me the story about his life he might not have been able to have the parenting skills but when i hear that he was one of nine kids all of a sudden our hearts open with compassion say wow that's a lot of children. I wonder if he had gotten enough or even practicing gratitude or practicing <hes> generosity are loving kindness or mindfulness really anything that allows us to feel strength or peace inside and then when we practice these experiences we feed the prefrontal the cortex and it it's it helps with refrain the stress response so his chance to calm down <hes> and by doing that we not only create new neural pathways we stimulate the release a feel-good neurotransmitters like serotonin and dopamine mean few good hormones like estrogen oxytocin even the very genes involved in the kabbadi stress response. It can begin to function and improve way like those mice. They were transmitting it to the next generation so we've got to practice. We've got have new experiences and then we've got to practice the ideas to pull traction away from the mid brain. The limbic brandy grand the amid dula. I've gotta bring engagement to the fort brand specifically the prefrontal cortex where we can integrate these experiences and our brains can change. The one thing i've learned is we can't just practice for the sake of practicing because someone tells us to do it. The practice has to have meaning for us got to feel emotionally connected to it so sometimes <hes> i'll suggest a practice when i'm working with somebody and i'll see we're the we're the juices for the client where the juices like all that kills crater. Oh that really means something to me then. I know they're going to practice it and then with the practice because i think a lot of times somebody may say well. You know how going to practice this because i don't have a relationship with my sister or my mother passed away or i can't talk to my dad or you know whatever may be the the reason that they feel that that way. What can we do at that point. We'll see the a lot of times we both our parents have passed away or were not in contact with them or we don't feel safe making the connection with them so we've got to practice in our own inner in in our own inner landscape so for example <hes> a listener hearing this might wanna place a photograph of mom with whom she or he has a bad experience or a a childhood memories are great place the photograph of your left shoulder look at it before you go to sleep at night because at night this that's one of the most potent time for neuro plastic change until the talk talk to the photograph is though it's <hes> as though you're talking to your mum soul for example and say mom i can't do this in real life but please hold me in my sleep and he'll the break in the bond happened between us. Teach me how to trust your love how to receive it and how to let it in and if your listener does this or if someone does this they can heal the stress response <hes> and you know if mom is passed away and earth mom's alive all of a sudden relationship begins to heal and maybe maybe they can heal it in real life as well and i feel like <hes> it's it's practice like you said as well but ah not only can can healing this influence your success professionally in your business but most importantly in your life and your relationships with yourself and end with other people totally. I love you have the twenty one success questions towards the end of the book that i found extremely helpful and for anyone when listening who's going to pick this book up definitely check those out <hes> there's so many questions in here that allow you to kind of really dive into this and really peel the layers back doc in you may even have to take some time with it because it's it's really a incredible deep work <hes> but mark i would love to know <hes> it's a question that i ask everyone that comes on this show <hes> what does influence mean to you what does influence to that so interested in the field of traumatic influx. Yes i'm in a fee or we are influenced unconsciously. I mean that's my first answer. It's probably really not my creative answer for my own music or poetry my creative life that would influence me would be different there but let me start with this is because when i hear the word influence a m- always working with traumatic influence so i'm always looking at how we are being affected or influence by what we don't remember in our childhood as a baby in utero or what's not talked about in our family history in fact i i always find it. What make you asked this question. Why did traumas repeat why some people seem to relive and other people don't what makes them repeating what i found is traumas or talked about or when the healing her family's incomplete because the pain or the grief is greater or the people involved are rejected ejected by us or excluded then aspects of these traumas can chew up in later generations. You know unconsciously will repeat the pattern or as as i talked about earlier share a similar unhappy unhappiness until that trump has a chance to heal. I always believed that. The contraction of trauma is ultimately looking for its expansion in it will repeat in a family until that expansion happens you know i want to <hes> say that i created that thought that i didn't freud notice this one hundred years ago when he was talking about <hes> traumatic repetition repetition compulsion that the trauma is merely seeking an opportunity for a better outcome so he'll tailing ailing too it. Just i love that answer because it's just fascinating. Everyone has a different perspective of how they view. It based off of their work in in her life. <hes> what is your biggest. Hope for someone who takes this book and reads it and use it to heal. It's it's healing the ultimate. <hes> your barometer for success in this work. My hope is that they do the practices assists and do what you did your trauma language record language on because i believe that we all of a mystery that we live with and you know unexplained symptoms. We either inherit or that happened too early for us. To remember fears anxieties obsessive thoughts symptoms that we think our hours might my hope is the people <hes> or make links that that's my hope look and they go. Oh no. They never connected this. That's why i wrote the book i wrote the book because there are many of us who suffered with unexplained symptoms and we haven't been able to make the link link. I also wrote this book because in <hes> in in the field there hadn't been enough in my opinion enough <hes> research about about these epa genetic mechanisms and i love the that. I hope that the book is it's done really well and i hope it's been a influence her <hes> <hes> to help more. I'd like to see more studies. I'd like to understand as we talked about earlier. What is the biological mechanism. I call in a bio field but what is the biological mechanism that has this repeating the misfortunes of our parents that is not epa genetic see at the genetics it is just one piece of the puzzle embryologist have known for a hundred years that the female egg line stop dividing when our grandmother there was five months pregnant with her mother so when her mother with inside our grandmothers womb the egg that will one day become us was already. They're already present in her mother's womb and so that that's not epa genetic sets embryology when we look at that we have to ask this other the question of what does that mean grandma's thoughts feelings <hes> affected mom and affected the even us in the egg because bruce lipton his work went on to tell us that yes mothers emotions were chemically communicated to the fetus through the placenta and a bio chemically altered genetic expression. There's so many places to go with this and we're just barely scraping surface scientists third thirteen years old well. If if what we put in our bodies and the air that we breathe you know and the location nations that we live in when we're pregnant can have vast effects on the makeup of our child then why couldn't the emotional as well absolutely those chemicals that were that were breathing. It's all connected. Oh yeah you know facebook page. I a list all the new studies that have come out and <hes> it. It's every week. I post a new study on. I stayed very much on the science it. There's there's one recently in a journal of american medicine psychiatry followed mothers who suffer traumas children and found that their daughters were likely to struggle google depression and bipolar disorder and then there was this recent tufts university study that found that men who suffered trauma is children were able to pass anxiety onto their children through their sperm. This was the first study in humans that show that it humans sperm actually mirrored. The same changes same non-coding orrin a genetic. That's genetic material regulates each gene expression as the sperm in mice that were traumatized as pop so so much going on. It's hopeful because as i said earlier they're also so showing that we can heal through positive experiences and practicing feeling the positive sensations remark. Where can we find that. Do you have the facebook link. We can make sure to add it as well. If you know it i think they i think it's marlon and i think it's facebook. Slash mark will end. I think okay great and it's m. a. r. k. w. o. l. y. In in and mark woollen colin dot com mark will linda calms my website and <hes> yeah i eh julius so nice to meet you and talk with you and and this time with you as well and again thank you so much for your work in this book is truly truly transformative and phenomenal and eye-opening and and healing ealing and can do so much for those who read it so for all of those listening. I highly encourage you to go wherever books are sold and then pick up a didn't start with you. <hes> you know every friend and family member that i've passed along to has said the same thing of just how incredible the work is and bold and groundbreaking it is so i again i appreciate your time and i cannot wait to see you know all of the <hes> <hes> the <hes> <hes> moments and and and the things the triggers you know triggers are good because it's pushing you somewhere all of the triggers that may come up for some of these for some of those that are listening today <hes> even if it's resistance that may be kind of telling you something that you need to dive into so thank you mark for for sharing with us. Thank you for having all right that. Is it for today now as you know. Some of our conversations actually happen after the show so i want you to find me on instagram head on over to our facebook facebook group at the influence or podcast and let me know your thoughts about today's show all right. I will see you again same time same place next week next next time on the influence or podcast what i've found in my health pushing practice and how i've actually helped women make real change in their lives. The first step always has to go back to what you want want in the first chapter. Health habit is talking about people confuse outcomes and goals and that's why they never accomplished anything.

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Jupiters Great Red Spot Continues to Shrink

SpaceTime with Stuart Gary

41:23 min | 8 months ago

Jupiters Great Red Spot Continues to Shrink

"This is space time series. Twenty-three episode twenty eight for broadcast on the third of April twenty twenty coming up on Space Time Jupiter's iconic great red spot continuing to shrink. The new study confirms that Earth rotation is continuing to slow down and you comet is getting really bright really quickly all that and more coming up on space time. Welcome to space time. We'd Stewart Gary and you study is confirmed that Juventus conic great red spot is continuing to shrink. The guest giant is the solar systems largest planet with more mass than the combined in the rest of the solar system other than the sun it Spectacular Bay Salmon and Brown swirling cloud tops shaped by jetstream winds and vortices into numerous parallel bands in college cyclonic patches. One of which the great red spot clearly stands out from the wrist this earth sized atty cyclone as being a feature of the Jovian skies for more than three hundred and fifty years ever since telescopes will I pointed at the heavens but the great red spot is dramatically decreased in size of a recent is back in the late eighteen hundreds. The great red spot was estimated to be around forty one thousand kilometers wide big enough for the earth to fit inside it three times. In nineteen seventy nine next is twinned voyage missions on a grant or the solar system flew past the gas giant measuring the great red spot at a still respectable twenty. Three thousand three hundred kilometers wide but the vortex has continued to shrink with hobble space telescope. Image Taking Nineteen ninety-five measuring at twenty one thousand kilometers across and by two thousand nine. It had shrunk to odometer of just eighty thousand kilometers. Observations in twenty twelve revealed a noticeable increase in the rate at which? The spot was shrinking. Now by some nine hundred and thirty three kilometers per year and it was also changing. Its shape from an oval into a circle. The most recent measurements show that its rate of shrinkage is slowed down but it is still getting smaller. It's now at sixteen thousand five hundred kilometers across at its also change color from date bread into a Pale orange. The cloud layer is extremely paik making it hard to observe what's happening David Down now. Using a combination of ulibarri experiments and computer simulations Sintus with University of Central Marseille have been studying the dynamics of large vortices providing a better understanding of how they formed structured now based on studies concluded that despite its reduction in surface area the thickness of the great red spot has remained remarkably constant over time. The findings reported in the journal Nature. Physics will be compared to new observations of the great red spot to be undertaken by an SS JUNA spacecraft during its next fly by of the guests giant. This is space time still to come new evidence that stays getting longer and a new comet getting really brought really quickly all that and more coming up on space time okay. Let's take a break from our show for word from our sponsor express. Vpn rated number one by TEK radar. You may be wondering why you need virtual private network. Well it's in the name. It's all about privacy. Do you really want big brother? Tech companies hackers governments and who knows who else nipping in on your mind activities. Now you might not have anything to hide but it's to really creepy and it could be dangerous for you and those you care about. Also how often do you run across a website? You WanNa get information from it but you find out that they jeer blocked. It's all very frustrating and it's becoming an increasing problem and that's were expressed. Vpn can help you express VPN's a simple and efficient way to protect your online privacy. It's Internet without Borders from the world's leading VPN provider so particular online privacy today. And find out how you can get three months free at tracks. Vpn DOT com slash space vets try express VPN DOT com slash space for three months. Free with a one year package visit try express. Vpn DOT com slash space to learn more. And of course you'll find the link details in the show notes and on our website that strikes breast VPN dot com slash space. And now it's back to our show. You're listening to spend time with Stewart Gary. So how long is day on Earth? Well actually that depends on how you measure it. Most people think of what is technically called a solar day. The length of time it takes for the earth to rotate on its axis so that the sun appease in exactly the same position in the sky. That's roughly twenty four hours. Although it actually varies Julia intracity of Earth orbit the liquidity of the planets axial tilt in relation to the ecliptic and geological events occurring deep inside the planet. All of which can adults subtracts seconds. Another way to measure of stay away. Astronomers do is by looking at it side which is amount of time it takes to rotate an exact trained sixty degrees on its axis with respect to fix thousands sky which turns out to be around twenty three hours fifty six minutes and four point zero nine one seconds which is about four minutes shorter than the Solar Day. The difference is that as the Earth completes a full fringe and sixty degree rotation around its axis day. It's also moved degree along. Its orbit around the sun so to return the sun to the same position in the sky was the previous day means the earth is actually rotated three hundred and sixty one degrees in a solar day adding tool. This is the fact that Earth's rotation slowing down back during the reign of the dinosaurs seventy million years ago and the elect Cretaceous at day on Earth. Earning less than twenty three and a half hours that meant that an earthy back then lasted three hundred and seventy two days instead of today's Thuringia. Sixty five and a quarter. The slowdown is judy. Gravitational tidal interactions between the Earth and the Moon. Scientists have known about these years now and you study reported in the Journal. Patio Inaugura fee and Petiot climatology as used fossil mollusc shells to provide a new way of confirming. This fact the ancient. Bivalve molluscs from an extinct in widely diverse group known as rude as clams which grew fast laying down daily growth rings. The niece study used highly. Precise lasers the sample minute slices of the show and count the growth rings. More accurately than human research microscopes this incredibly precise county with the growth rings allow the authors to determine the exact number of days a year and more accurately calculate the length of a day seventy million years ago the findings also at the scientists understanding of how informed. And how close it's been worth of the four point. Five billion year history of the Earth Men System the office careful count of the number of daily layers. Found three hundred and seventy two. Hei Interval. Now that's not a surprise. Scientists already knew days short in the past however the result is the most accurate now available for the late Cretaceous. The length of the year has been constant of US history. That's because its orbit around. The Sun doesn't change but the number of days in a year is made shortly over time because days growing longer the length of the day's been growing steadily longer. Friction from Ocean tides caused by the Moon's gravity slows earth rotation. And the pull. The tides accelerates the moon a little in its orbit so is the earth spins slows the numerous further away in fact the moon's pulling away from the earth at a rate of roughly three point eight two centimeters per year. That's about the same speed. That which fingernails and hair grow precisely measurements of distance between the Earth and the moon demonstrated this increasing distance. Ever since the Apollo Program left helpful retro reflect on the lunar surface but the thing is scientists have concluded that the moon could not been receding at its current rate throughout history because by projecting its progress literally backwards in time at that rate would mean the moon was inside the earth. Just one point. Four billion years ago and that clearly wasn't the case scientists know from other evidence the moon's being with us ever since it was created out of a massive planetary collision between the early Proto Earth. Size planet called Thea. Some four point five billion years ago that impact turned birth the Proto worth unfair into a magma Russian while at the same time flinging debris checked into orbit which eventually coatless the form the moon. So this means the moon's read retrieves changed over time which is affected the length of an Earth Day to find out more entered. Ugly is speaking with Strana professor. Fred Watson a chunk of rock that has been buried in grand for millions of years has become a new clock. This is an ancient fossil from the Cretaceous period that they're about it It's showing up one interesting aspect of of the world from you. Know Seventy thousand over seventy million years ago. I should say the days were much shorter the Niagara now. We sort of knew that theoretically because the you know the day length is increasing as we speak which is why we have leap seconds occasionally. Yes and a lot of that is tied up with the interaction between the the mood. The finally the Moon's drifting away because he's taking energy from the US rotation and slowing the rotation down so we do know. That process is ongoing. But this I absolutely agree with Andre is a beautiful piece of work is they send Such a nice conclusion that strong and well. We've got a fossil of a shallow bivalve. Shell I think these things were probably quite a lot. Bigger than the molluscs. Where us to? Today I used to have one as a pet for it a fish tank and you fish tank. What was it cool Fred? I'm not joking you go. What a prescient name to give to your Bible. He'd lived under the gravel. And just you know cleaned up. I wouldn't set a cactus called plug actually belong to a friend of mine and eight bequeathed it to me and pluck lived on the kitchen windowsill for many many years. Anyway still the story. What's the story with the Bible? There's a bit like a vast with a vase if you're on the other side of the Pacific the wider and they've got this lead and were basically on ancient reefs this particular species. I'm going to attempt his name. Tony Sanchez -I anyway Cretaceous Paalea gene apologetic extinction this time. Basically when the dinosaurs were wiped out this particular species was also why towels their now extinct. They don't exist anymore but they are of interest because we have bivalves in the modern era. Nothing probably nothing quite as big as this but they really interesting aspect of this bivalve. This is common to the ones we see around today. They have a growth rate in shells. Which is one lap a day and that? That's the key to this research because it grows one lap a day just like essentially You know in the same way tree rings put on a new ring every year but these things have one lap day so you can almost count the days when you look at the age of them the key thing though as that they also respond to changes in the season example from Modern Day by a modern cloud when the when the big clam shells winter time. The last I put on a Daca on so the same is true of the Sanchez. T- sunset fossil that it had cut a gradations in. It's not tree rings but then it's lines of growth so not only. Do you have a laugh for each day? You've got a kind of marker for when the year changes for the good the seasonal changes and that as the crucial the smoking Mullah slurpee gum. That's right so first of all the team that analyzed this the team that did this work there. Actually I think the main chemists who's involved with this Is at a university in Brussels. Belgium is to give them a shout as well as to whether they are but they used these various leads to determine that this thing lived for about nine years. Yeah which is good. So that means that got nine years with information and they've got the daily Les- packed into that and the K. Thing is that they got. The daily has fifty two a year with not three hundred sixty five of them but three hundred seventy two so that means there are three hundred seventy two days in a year about seventy million years ago which is the fossil so had how long was a day. It brings it down to about twenty three and a half hours. Good so you lose. Yeah if you do the calculation three hundred and sixty five to three hundred and seventy two so if you go further back suggesting the days where even short on your were many more. That's right so this is a really nice snapshot of what things were like. Seventy million years ago when this fossil was laid down and it can sort of extrapolate back for the whole four point six billion years of the history. But you come to a time when it looks as though the day bicycling was very very short the best thinking on this which comes about from arguments to do with the rotational energy of the moon system suggests that the fastest ever rotated. This was probably not long after the moon was FG Was about once in four hours. Wow so like the four hours now hit by the probably after it was hit by here because not sort of extrapolating back from where we are now and this interests me as well from a historical point of view because there was a scientist by the name of George Darwin. It's got a very famous surname. Because he had a very famous father. George is the son of Charles. Charles worked on the origin of species. George worked on the origin of the mood. He was an astronomer at Cambridge and in the eighteen eighty S. I think it was developed this theory the very early in the history. They have been spinning so fast. The debris it's spot equator and that was what form that mood but it is a good theory. Yeah but the reason why I got knocked on. The head is to do that. If I remember rightly figures out that the S. would have to turn once every two hours and the evidence seems to be that it never turned that quickly. I'm not sure what that evidence as I think it might be dynamical rather geological but the thinking is that the F. could never have rotated quickly for that to happen and that's why we now have the the Thea- impact series you've just mentioned but that's not really anything to do with this but this bivalve study though. Is that really giving you a very nice pointer? Just a little measurement one period in the history when we can see without any question until the day was shoulder. An actually measure nothing. That's an astonishing thing to be able to do. Is nobody around with a clock. Seventy million years ago when this thing was living on its reef now date and I suppose over the course of time the rotation slide. The dice of become longer So he we are. We are the other thing of course. Is that the moon is drifted away. The Moon would have been much much closer in the early history of the Earth Moon System. Probably swim the calculations. I'm sure it's been done but I looked at it. It could work out how far away the moon was seventy million years ago when this bivalve was alive. So if you study a bivalve today you'd find three hundred sixty five rings dot is what you'd expect exactly give daily late laying down to the. Ring Nora of the show. That's Dr Fred Watson and astronomer within a pound of science speaking with Andrew Dunkley assist the program space nuts and this is space time. I'm Stewart Gary still to come and you comet getting really bright really quickly and our nearest neighboring star system Alpha Centauri the southern Cross Constellation are among the highlights of the April night skies on sky. Watch all that and more still to come on space time. A new comet discovered in the closing days of two thousand nineteen looks like it could put on a spectacular celestial light show over the next few months Comet C Twenty Nine Thousand Nine y four atlas has been getting really bright really quickly. Atlas was discovered at a distance of four hundred thirty nine million kilometers from the sun in the Constellation as a major on December. The twenty eighth it was detected by the asteroid terrestrial impact last alert system or Atlas. After which it's named the Robotic Survey System based in Hawaii is designed to search the skies for near objects on their closest approach at the time of its Detection Comet Atlas was an extremely faint magnitude. Twenty some three hundred ninety eight thousand times dimmer than stars visible with the unaided eye however as its move closer to the sun solar radiation has caused volatile gas turning. It was spectacular. Bright Green magnitude plus eight point five more than six hundred times brighter than predicted atlas. Rich Perr helium. It's closest opened position to the sun on. May thirty first when it will swing around the sun at a distance of just thirty seven point eight million kilometers that should be enough to increase its brightness by eleven magnitudes potentially turning atlas into a spectacular celestial light show easily visible in a small backyard telescope paranoid dealers will keep you informed list the space time and Tom outta check out the night skies of April on Sky Watch April's the fourth month of the year and the going calendar and the fifth in the early Julian calendar the Romans gave this month let name a parilla. Although the name's origins out certain traditional etymology suggests that it's from the verb a prayer to open as in being the season when trees and flowers began to open as the northern hemisphere moves into spring high in the southern skies in April is the Constellation seven cross. And it's two point stars Al from Betas Story. The more distant of the two point is is Addison Tori the nearest star system to our own located some four point three light years away. Allison Tori actually consists of three sties office and Tori. A in which over each other and Proxima Centauri sometimes offer Centauri. C orbits the pair and at four point two five light years. Distant is currently the closest out of the earth other than the sun ally is about ten trillion kilometres. Listen I can travel in a year. At three hundred thousand kilometers per second speed of light in a vacuum and the ultimate speed limit of the universe like the Sun Alpha Centauri is a special type G Yellow Dwarf Star. It has about one point one times. The Sun's mass and just over one and a half times Aussie astronomers describe stars in terms of spectral types classification system based on temperature and characteristics the hottest most massive amounts luminous stars and. The suspect will type Blue Stars. That's followed by spectral type. B Blue White Stars Vince. Petra type watched is spiritual type F Y Shallow Star's spectral type G yellow stars. That's where son is special type. K Orange Dies and the coolest and least massive stars are known a spiritual type 'em red stars each spectral classification then subdivided into a numeric digit to represent temperature with zero being the hottest nine the coolest and a Roman numerals to represent luminosity. So putting all that together our son becomes a g to five yellow twelve-star Stein also included in the stellar classification system. A SPECTRAL TYPES LT. And why which are assigned to failed STAS known as Brown towards some of which were actually born. The spirit type. Am Red Stars. Red Dwarfs that became Brown dwarfs after losing some of their mass brand-new really interesting. They fit into a category between the largest planets which about thirty times the mass of Jupiter and the smaller spill type 'em rid of stars which are about seventy five to eighty times the mass of Judah or roughly zero point zero eight solar masses getting back to Alpha Centauri the other star in the primary binary system is opposite Tori a special type. Orange DWARF STAR A little smaller and cooler than the sun with about zero point nine times. The Sun's mass and about half its luminosity Alpha Centauri A and B orbit each other around a common center of gravity. Every seventy nine point nine hundred earth years. The distance between them varies from about that between Pluto the sun to that of Satin The sun the third star in the system Proxima Centauri is a spiritual type in Dwarf Star with about one seventh that I am at about one. Eight the mass of the Sun. It takes him five hundred fifty thousand years to orbit Alpha Centauri A and B. The near of the two point started the southern Cross story also triple star system but located far more distant tramped ninety light years away all free a young massive Bluestar as far bigger and more luminous than the sun to of this dis named Betas and Tori A and a B orbit each other while the Third Peterson Tori beat orbits the pay every fifteen hundred earth years bits and Tori a an AB spectroscopy. Opening every three hundred and fifty seven earth days spectroscopy binary is a double star systems opening each other so closely and at such an angle that they can only be. Visually separated from our viewpoint on earth by spectroscopy signatures both the now nearing the end of their time on the main sequence and will soon run out of hydrogen for core nuclear fusion album. Betas and Tori a named after Shiraz the center at mythical Greek being who was half man and Half Horse. Shiran is said to have taught me the Greek gods and heroes that was placed among the stars after accidentally being shot with a poisoned era by Hercules. Next to the point staff is the magnificent constellation the southern cross crux. It's actually the smallest. But one of the best known of the eighty eight constellations in the sky. The Southern Cross is at its highest point in the southern sky this time of year and he's pointing directly at the South Celestial Pole during April. The southern cross lies on that side in the early evening. Peppy comes more opert-. As the night progresses the bottom and brightest star in the cross is Alpha crocs or aac rocks which is actually multiple star system located three hundred and twenty one. Light years away. It consists of three stars a one cruises which is a spectroscopy binary and a two cruises a two cruises and the primary starring a one crus- above spectroscopy Blue Stars with surface temperatures of Twenty Six and twenty eight thousand Kelvin respectively. The two components open each other every fifteen hundred earth years at an average distance of about four hundred and thirty astronomical units and that's nominal unit is the average distance between the earth and the Sun. Roughly one hundred and fifty million kilometres or eight point three light minutes. The two stars in one cruises thought to be about ten and fourteen times the mass of the sun the pay orbit each other every seventy six earth days at a distance of about one hundred and fifty million kilometres one astronomical unit the masses of eighty two cruises and the logic component of a one crisis are expected to eventually explode as core collapse supernovae ending up neutron stars while the smaller competitive a wind cruises shoot survive as a what off the left hand and brightest star in the southern cross is Beta cruces. It's also a spectroscopy binary consisting of two stars. They orbit each other every five earth years at an average distance which varies between five point. Four and twelve western article units cruises located about two hundred and eighty light years away. The Primary Star Beta Christmas is a special type. Be Bitter cepheids variable Bluestar. Which changes in Brian over a period of Ford? Four point six hours it has about sixteen times the Sun's mass and about eight times its diameter with the surface temperature of around twenty seven thousand Kelvin. The second star in the system Mita crispy is about ten solar masses while a third companion has been detected in the system need cruises. Is this spectacular? Young Open Star Cluster. Known as the Kappa Chris's Cluster N. G. C. Forty seven fifty five and more commonly called the jewel box and aimed given to it by the famous eighth century astronomer. John Herschel Open stock lost as a groups of stars which were originally all born at the same time in the same collapsing molecular gas and dust cloud. Os Somewhat still gravitationally bound. It's thought starting open. Clusters could eventually separate and move to the pats of the galaxy as the name suggests. The jewel box is a stunning collection of more than one hundred bright colorful stars. It's located some six thousand four hundred forty light away although its exact. Distance is difficult to determine because of the nearby Cossack Nebula which skew is some of the light. The cul sack is a dark nebula containing lots of gas and dust blocking out background stars in Australian Aboriginal. Dreamtime legend the coal sec form. The head of the Amy Constellation with the dark dust lanes of the milky way forming the amy's body and legs the central parts of the jewel box frame by bright stars making up in Asia. Astor's them these are among the brightest known blue white and red super giants in the Milky Way truly a spectacular sight with looking at Gamma crew. Assist which is located at the top of the southern cross is the third brightest star in the constellation. It's also one of the nearest red giants to our solar system located just eighty eight point. Six light years away visually. It's also the nearest star to the two point two stars although only thirty percent more massive than the Sun It's expanded outer envelope is bloated. After some eighty four times the sun's radius at its now radiating some fifteen hundred times the luminosity of the sun as a red giant. No longer on the main sequence gamma cruises is nearing the it's live. It's it's temperature. Three Thousand Six hundred twenty six Kelvin and it has a prominent Reddish orange appearance the star on the right hand side of the Southern Cross is Delta two cruises a massive heart and rapidly rotating star. That's now in the process of evolving into a red giant and will eventually end up as a white dwarf. The stars located three hundred and forty five light years away and as about nine times. The Sun's mass an eight times its radius it's presently radiating around ten thousand times. The luminosity of the Sun from its outer atmosphere at an effective temperature of twenty two thousand. Five hundred seventy seven causing it to glow with the. Blue White Hue. The smallest town in the southern cross is epsilon cruces which is located in the space between daughter and Alpha cruises. It's another ridge. I'd some two hundred and twenty eight light years away. It has about one point four two times the Sun's mass and some thirty two times its radius its surface temperature. Four thousand one hundred and forty eight Kelvin means it sometimes referred to as an orange giant. The Southern Cross is located within the Constellation Taurus the center which as we mentioned there is a half man half horse in Greek mythology. The creature is holding a bow loaded with an Arrow the center's front legs amok by the two point two stars Alfred Betas and Taurus. He's back then. Arches over the southern cross and just above this is a megan Tori spectacular globular cluster visible to the unaided. I from Doug. Locations globular clusters a tightly packs containing thousands to millions of stars. Which are all originally born at the same time in the same molecular gas and dust cloud and megason Tories about sixteen thousand light years away? It's one of the largest and brightest of the hundred and fifty or so globular clusters into orbit around the Milky Way Sin. Taurus was included among the forty eight constellations listed by the Second Century Astronomer Ptolemy and it remains one of the eighty eight Modern Day constellations the Constellation Orion the hunter is still clearly visible in the northwestern night skies with its rectangular a four star surrounding a central trio of stars which former Ryan spilt to the rider. East of Orion is the Constellation Gemini. And it's too bright stars. Paul Axon Casta this time of the year. The Jimmy Twins almost directly Jew nor for Southern Hemisphere. Sky Watches the higher. The Tuesday's polacks is a red giant. Some eleven times that I am under the Sun and located just thirty four light years away. The other stack caster is much further away. One light is now. Let's turn the ACED. You'll see the style regulars the brightest and the constellation of Leo the lion regardless which means little king is located about sixty seven light years away. And it's three point five times as massive as the sun at about one hundred and forty times. As luminous realist is a binary companion which takes one hundred and thirty thousand years to the primary to the right of regulars and visually Ju- eastern. The Sky is the stash biker located directly below the four stars in the Constellation corvus the crow it's the brightest star in the Constellation Virgo. Spiker also known as Alpha Virginis is the sixteenth brightest down the night sky and is another spectroscopy binary comprising two extremely close ties orbiting each other every four days in fact the two stars in Spike so close together gravitationally direction as coarsened become rotating loyal variables distorting them into the shape of a rugby league or Gridiron football light from the binary changes in brightness as the two stars orbit each other exposing their elongated hemispheres to us. Spiker is located some two hundred and sixty light years away and is some two thousand times as luminous son. By the way the wood's spot will it means ear of wheat which according to Greek mythology virgo is wholly in hand it surname because it marks the start of the harvest season in the northern hemisphere. The primary starring spiker is a blue giant variable Betas which indigo small rapid variations in brightness because the pulse Asia that the Star Service. These are thought to be caused by the unusual properties of I'm at temperatures of two hundred thousand degrees Celsius in this diller interior. The Star about ten times the Sun's mass at about seven and a half times. The ambassador wants a spiritual type. B main sequence blue white star. It's now some twelve thousand one hundred times the Sun's luminosity the giant stars now pulsating rapidly and rotating it over one hundred ninety nine kilometers per second over zero point one seven three eight day period. It's also one of the nearest us to Earth expected to end. Its life is a core collapse type two SUPERNOVA. The second star is also thought to be a spiritual type blue white giant about seven solar masses and three point six times the senator now going back to the southern cross into the ride or west of the cross. You'll see the stock canopus. The second brightest down the night sky after serious even though CANOVA's he's three hundred and twelve light years away. It looked so incredibly bright because it really is huge a spectral type. A White Star one hundred times that I am under the Sun and ten thousand times as luminous next week come to the Constellation Carina which together with two other constellations via the sales and Pappas. The stern were originally part of a super constellation code ago nervous or the ship. Argo which was divided into three in the nineteen thirties. When the International Astronomical Union defined eighty eight official constellations one of the most spectacular sites in argo nervous is the great Nebula in Carina. A massive cloud of gas and dust between six and a half and ten thousand light years away. It's around that truly massive at a Korean a binary star system itself located some seven thousand five hundred light years away the two stars in Carina at classified as highly luminous spiritual type of blue. Hyper giants the promise does estimated to be around one hundred fifty to two hundred times the mass of the Sun with some five million times the Sun's luminosity eight hundred times its radius and a surface temperature of summer up to thirty two thousand five hundred Kelvin. The binary companion style the smaller than the primary just eighty. Sola masters in two thousand times. The Sun's radius is even hotter with surface temperatures around thirty seven thousand two hundred Kelvin. The two stars orbit each other. Every five point five four earth years cocooned in the giant twin load cloud of gas and dust is the homogeneous nebula spectacular bipolar emission reflection nebula both stars and now nearing the end of their lives on the main sequence and are expected to go. Supernova in an astronomically short space of time when it does go Supernova. Edit Korean will become clearly visible in daylight and may even become brighter than the moon for months on end. This you sick and Major. Meteo show that Leonid will peak on April the twenty second and twenty third the Leonid Zepeda radiated out from the Constellation. Lyra close to the star Vega one of the brightest stars in the sky this time of year the source of the shower particles of dust and debris shed by the long period comet C eighteen sixty one. She won Thatcher Sky Watches in the Northern Hemisphere. Get the best view of the Lord's however those mid Southern hemisphere latitudes can also see the shower between midnight and dawn patient observers will be rewarded by route eighteen meteo now before dawn index guy locations and now with a look at what is happening in the April night skies. We're joined by Jonathan. Nellie the editor of Australian Sky Tell us go magazine. Well April. We're now sort of in the middle of autumn here in the Southern Hemisphere and spring up in the northern hemisphere and for us here in the south starting to shift from the summit constellations through the window ones so as not falls you'll be able to see the Milky Way which is our galaxy from the inside. You'll see it's stretching right across the sky from the South East to the North West during the first half of the Nice after sunset as few hours of anything. That's where you'll find the milky white but as the turns in the sky change of it so by the early morning. Allah's instead of the Milky Way going from the southeast to the northwest it'll navigating from the southwest to the northeast. But you still be able to see all of there which will be really good. Has the night rolls on after some of the more famous constellations that we've been we've had around During the southern summer over the winter will start to disappear. That'd be dropping view below the western horizon so we're talking about tourists Orion other ones such as Jim. Leo is still fairly prominent in the northern sky. I've seen from mede southern mid northern latitudes but give it another month or so and they'll be disappearing below the western horizon as well so in the early evening during April. We've got the southern cross NAS and high in the south. The brought stock can notice. Which is the brightest star in the Constellation Carina? And it's actually the second brightest out on the night sky it's even higher up so it's getting towards a head you can't Mexican opus and a little bit further. Higher Up is the brightest star in the sky which is serious which is the brightest star in the constellation. Kanus major the great dog in fact from the latitude of Sydney or any comparable latitude and other countries in the southern hemisphere serious is more or less directly. I've had now mentioned Carina. The Constellation Carina. Grab hold of a stop such as the one you can see in the Santa Spirit of every issue of Australian Scott Telescope and use it to find Carina very easy to find Vin. Grab yourself a pair of Oculus and start sweeping through the field in this area of the sky because they'll just take your breath away really is amazing. All these clusters of stars and you can see some nebulous as well. If you keep going to the left along the Milky Way you will soon come to the southern cross and if your binoculars a nice wide field you should be able to say the whole thing there and see if he can make a big dark nebula that sits just besides having cross. It's cold a cold sack for obvious. Reasons 'cause our big black hole in the middle of these fields then continue further along the same direction. Loan the Milky Way. And you'll get to the two pointers. Which are the stars? Alpha and Beta tour famous pair of stars and they called the two point is because they point the way to the southern cross. Basically it's a it's a they've quite broad and prominent quite together and you can use them to just point long ago along the same direction pointing and you get to the southern cross if you have trouble finding across just ahead of the two point. Is the Southern Cross Cross mixed up? The point is the way to differentiate between the pay. That's right that's right. Yeah the false cross it to a crucifix or kite sort of shape bigger than the southern cross. But that's what people actually get the two confused the The real southern cross false cross because when they when they go outside to see the trying to find the southern cross for the first time they expect it to be really be really really caught. But it's actually really small the smallest guy. Yeah Yeah so they see this other one nearby this collection of five stars and he that must be the southern cross but no the smaller wine is and the two point is point towards it. So that's the thousand the constellations things so let's talk about the planet. Venus can be seen in the West to sunset economies famous. You can never Miss Vane. It's never mistake or anything else because it's so big and bright but over the coming weeks it's going to be dropping closer and closer down toward the horizon before disappearing from view into the glare of the sun in the early part of. May So if you've got nice clear skies in the evening after the West that big bright light you see every day will be leanest. The rest of the naked eye planets are actually early morning affairs at the moment with Jupiter rising over the eastern horizon about one o'clock in the morning at the beginning of Eiffel and sat in the MAS. Come up together about forty five minutes later. Seven months that there are people quite close together at the start of the month. But you'll see them start to drift apart as the month goes on the other. Naked Planet Mercury. That'll be rising also in the early morning hours about five. Am The beginning of April. Probably in our side before the dawn light starts to come but as the days go on during the month you'll see victory. Also I like Venus in. The eighteen metre be dropping down towards the Eastern Horizon. As it's going along in its orbit and it will be lost in the door and glare of the sun by the last week of April. Finally there's a couple of interesting groupings to watch for between the planets and the moon the I will be in the early morning hours of April the fifteenth after midnight. We'll see the moon really close to Jupiter Moon there and it'd be a Bright Star in nearby that's actually the planet Jupiter. Okay the following night. I mentioned that Jupiter's coming up over the horizon followed by set in the mouth too much light on the following night April sixteen. You'll see Jupiter Saturn. The Moon and Mars will be almost all in a straight line. It should be really spooky to see Jupiter big bright widish sort of live Saturn Little Bit Finer Than Jupiter. And with a yellowish sort of change than the moon. And then MAS which is smaller than the other ones. But a really ready. Orange Reddish color should be beautiful contracts and a lovely to see these groupings incidently dominating scientifically. They just want us to fix but they are very very pretty to say molly the editor of Australian sky and Telescope magazine and that's the show now space-time is broadcast on site zone radio by the National Science Foundation in Washington. Dc and through both IHEART radio and tune in radio or you can subscribe and download space. Time is a free podcast through apple. Stitcher BITES DOT COM Puckett cast soundcloud spotify YouTube audio. Boom pod Bay android cast box from Space Time with Stewart Gary Dot com or from your favorite download podcast provider. 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Earth Sky Southern Cross Stewart Gary scientist Constellation Carina US Addison Tori Dr Fred Watson Tony Sanchez Proxima Centauri Southern Hemisphere Red Stars Carina Brown Northern Hemisphere