1 00:00:02,720 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,600 --> 00:00:14,560 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,640 --> 00:00:18,560 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business app. 4 00:00:18,640 --> 00:00:21,920 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:21,960 --> 00:00:23,520 Speaker 1: us live on YouTube. 6 00:00:24,040 --> 00:00:26,040 Speaker 2: Anra Agrana joins us here as a tech analysts for 7 00:00:26,079 --> 00:00:30,400 Speaker 2: Bloomberg Intelligence Core Weave. Anrara, can you we've been talking 8 00:00:30,440 --> 00:00:32,440 Speaker 2: about core weef today. I need a better understanding. Just 9 00:00:32,440 --> 00:00:36,600 Speaker 2: give me the the dees function kind of definition based 10 00:00:36,680 --> 00:00:39,400 Speaker 2: definition what core weave does and what's going on with 11 00:00:39,440 --> 00:00:39,800 Speaker 2: the news. 12 00:00:41,360 --> 00:00:43,599 Speaker 3: So in the most simplistic way, they are renting out 13 00:00:43,640 --> 00:00:46,560 Speaker 3: GPUs for people who are you know, looking for any 14 00:00:47,120 --> 00:00:50,160 Speaker 3: anywhere to run their AI workloads. That could be training 15 00:00:50,159 --> 00:00:52,120 Speaker 3: of the models or that could be you know, the 16 00:00:52,159 --> 00:00:55,639 Speaker 3: inference workloads from the applications that you're running. So very 17 00:00:55,640 --> 00:00:59,120 Speaker 3: simple business model. They buy, they are a partner with 18 00:00:59,240 --> 00:01:02,720 Speaker 3: Nvidia and Vidia also investor there. They buy their chips, 19 00:01:03,000 --> 00:01:05,120 Speaker 3: they put it in a data center and people you 20 00:01:05,160 --> 00:01:06,280 Speaker 3: know rented out from them. 21 00:01:07,200 --> 00:01:09,280 Speaker 4: So when I look at the stock performance for core 22 00:01:09,319 --> 00:01:11,000 Speaker 4: we you of course we know what iPod back in 23 00:01:11,080 --> 00:01:13,080 Speaker 4: late March, we're seeing shares that are up about two 24 00:01:13,120 --> 00:01:16,480 Speaker 4: hundred percent, But I want to know, why is there 25 00:01:16,520 --> 00:01:19,360 Speaker 4: this conversation about the rally sputtering out what's really weighing 26 00:01:19,400 --> 00:01:20,120 Speaker 4: on the stock here. 27 00:01:21,520 --> 00:01:23,080 Speaker 3: So when you look at it and you go back 28 00:01:23,120 --> 00:01:25,120 Speaker 3: to March, when the IPO was coming out, it was 29 00:01:25,200 --> 00:01:28,360 Speaker 3: actually really poorly received it. You know, one could argue 30 00:01:28,400 --> 00:01:32,520 Speaker 3: it was underpriced because not looking at the growth prospects 31 00:01:32,520 --> 00:01:35,600 Speaker 3: of the company, but focused more on the capital expenditure 32 00:01:35,720 --> 00:01:38,039 Speaker 3: and the expense and the laws and they have to 33 00:01:38,040 --> 00:01:40,360 Speaker 3: go out to debt markets to issue. So that was 34 00:01:40,400 --> 00:01:43,320 Speaker 3: the sentiment back then. And certainly within a two three 35 00:01:43,560 --> 00:01:46,080 Speaker 3: month period all of that they've operated and the stock 36 00:01:46,120 --> 00:01:48,520 Speaker 3: went up to you know, one sixty or so. What 37 00:01:48,560 --> 00:01:51,440 Speaker 3: we're seeing as of last night is fundamentals are strong. 38 00:01:51,520 --> 00:01:53,960 Speaker 3: They're still getting a lot of bookings people you know, 39 00:01:54,080 --> 00:01:57,279 Speaker 3: using their cloud. But everybody's now certainly again worried about 40 00:01:57,560 --> 00:02:00,840 Speaker 3: interest expense and you know, capital expense and so forth, 41 00:02:01,080 --> 00:02:03,320 Speaker 3: and that's the growing pain. I think this company will 42 00:02:03,360 --> 00:02:06,880 Speaker 3: have to endure being a public in public markets, because 43 00:02:07,160 --> 00:02:08,880 Speaker 3: you know, you could do that as a private company, 44 00:02:08,919 --> 00:02:11,920 Speaker 3: but very difficult. You know, people will get excited and 45 00:02:11,960 --> 00:02:14,679 Speaker 3: people will you know, worry about one thing or the other. 46 00:02:14,720 --> 00:02:16,040 Speaker 3: At one point, all. 47 00:02:16,080 --> 00:02:20,600 Speaker 2: Right, I have to ask ellad just about what we 48 00:02:20,680 --> 00:02:27,000 Speaker 2: saw yesterday about refreshment memory on this whole Google Chrome thing. 49 00:02:27,040 --> 00:02:29,880 Speaker 2: Who's put a bit out there? Give us what's going. 50 00:02:29,760 --> 00:02:31,760 Speaker 4: On out there that just kind of jumps We need 51 00:02:31,800 --> 00:02:32,760 Speaker 4: to know what. 52 00:02:32,680 --> 00:02:33,040 Speaker 2: Do you know? 53 00:02:33,320 --> 00:02:39,320 Speaker 3: Yeah, it's asking. 54 00:02:37,240 --> 00:02:39,280 Speaker 2: That question, So just tell us what the news is. 55 00:02:41,120 --> 00:02:43,880 Speaker 3: Well, so what's happening is there is again you know, 56 00:02:43,919 --> 00:02:47,320 Speaker 3: the DJ case that's happening with Google and the whole decision, 57 00:02:47,360 --> 00:02:49,640 Speaker 3: you know, the argument of trying to break it up 58 00:02:49,720 --> 00:02:53,440 Speaker 3: and why chromism monopoly in the whole thing. Perplexity on 59 00:02:53,480 --> 00:02:56,959 Speaker 3: the other hand, as also a search AI search product 60 00:02:57,360 --> 00:02:59,960 Speaker 3: and one way they can gain a lot of users 61 00:03:00,080 --> 00:03:03,079 Speaker 3: if they have ability to control Chrome. But practically speaking, 62 00:03:03,120 --> 00:03:05,200 Speaker 3: I mean, if you look at you know, some other 63 00:03:05,280 --> 00:03:08,000 Speaker 3: paperwork that was filed as part of the DJ case, 64 00:03:08,440 --> 00:03:11,600 Speaker 3: that product is probably worth not the fifty billion dollars. 65 00:03:11,639 --> 00:03:14,240 Speaker 3: And I have no idea why company that's probably you know, 66 00:03:14,320 --> 00:03:17,760 Speaker 3: that's probably valued at about eighteen billion or so wants 67 00:03:17,760 --> 00:03:21,560 Speaker 3: to buy this asset. And you know, it just sounds 68 00:03:21,560 --> 00:03:25,200 Speaker 3: a bit you know, strange or a bit unusual for 69 00:03:25,360 --> 00:03:27,760 Speaker 3: us to even for them to even be talking about it. 70 00:03:28,120 --> 00:03:30,519 Speaker 4: Am I the only one that didn't know that Google 71 00:03:30,560 --> 00:03:31,440 Speaker 4: Chrome was up for sale. 72 00:03:31,960 --> 00:03:35,240 Speaker 2: Well, it's not that's it's normal a browser. 73 00:03:36,080 --> 00:03:36,520 Speaker 5: It's just right. 74 00:03:37,320 --> 00:03:40,640 Speaker 2: It may be deemed a remedy that will be ordered 75 00:03:40,680 --> 00:03:41,440 Speaker 2: by the judge. 76 00:03:42,320 --> 00:03:45,000 Speaker 3: It would be too harsh. But you know, again, this 77 00:03:45,120 --> 00:03:47,560 Speaker 3: is one of the hypothetical twenty things that can happen. 78 00:03:47,720 --> 00:03:49,600 Speaker 3: But at the same time, I mean, let's I'm just 79 00:03:49,800 --> 00:03:52,720 Speaker 3: you know, making this up. Google may decide, you know what, shareholders, 80 00:03:52,720 --> 00:03:55,280 Speaker 3: you can have this as a you know, separate company altogether. 81 00:03:55,320 --> 00:03:57,360 Speaker 3: That would be so much more powerful, you know, with 82 00:03:57,480 --> 00:03:59,840 Speaker 3: Gemini and all that stuff. But again, you know, from 83 00:03:59,880 --> 00:04:02,760 Speaker 3: our ex boots, we don't think that's gonna happen or 84 00:04:02,800 --> 00:04:05,960 Speaker 3: on the table, but yes, it is expected, you know, 85 00:04:06,000 --> 00:04:08,560 Speaker 3: in the long laundry list of things that can happen, 86 00:04:08,800 --> 00:04:10,800 Speaker 3: this is one of the things that people have talked about. 87 00:04:11,560 --> 00:04:12,240 Speaker 3: Stay with us. 88 00:04:12,360 --> 00:04:14,720 Speaker 2: More from Bloomberg Intelligence coming up after this. 89 00:04:16,880 --> 00:04:20,599 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 90 00:04:20,680 --> 00:04:23,760 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 91 00:04:23,760 --> 00:04:27,080 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 92 00:04:27,120 --> 00:04:30,240 Speaker 1: you get your podcasts or watch us live on YouTube. 93 00:04:31,600 --> 00:04:33,120 Speaker 2: In other news, we had a little m and a 94 00:04:33,279 --> 00:04:36,240 Speaker 2: trade here today which I think is very interesting. We 95 00:04:36,320 --> 00:04:39,320 Speaker 2: have Guilden, which is a Canadian company buying Haynes brands. 96 00:04:39,360 --> 00:04:42,240 Speaker 2: Like I'm the underwear company two point two billion dollars, 97 00:04:42,320 --> 00:04:45,200 Speaker 2: Abagail Gilmore and joins us here Bloomberg Intelligence. But we're 98 00:04:45,200 --> 00:04:48,120 Speaker 2: an at leisure analyst here, Abigail, thanks for joining us 99 00:04:48,160 --> 00:04:50,600 Speaker 2: here in study. Can you tell us who is Guilden 100 00:04:50,640 --> 00:04:52,520 Speaker 2: because I don't think a lot of people know of them, 101 00:04:52,560 --> 00:04:54,800 Speaker 2: and why are they buying an underwear company? 102 00:04:54,880 --> 00:04:56,600 Speaker 6: Yeah, definitely, that makes a lot of sense. I think 103 00:04:56,640 --> 00:04:59,080 Speaker 6: a lot of people probably own Guilden and don't know 104 00:04:59,160 --> 00:05:03,360 Speaker 6: it right because it's really a basic apparel manufacturer. So 105 00:05:03,480 --> 00:05:05,640 Speaker 6: they create the T shirts that then they sell to 106 00:05:05,720 --> 00:05:08,120 Speaker 6: your favorite sports teams or to Walmart, and then they 107 00:05:08,120 --> 00:05:10,240 Speaker 6: put the logos on it. So they're heavily in the 108 00:05:10,279 --> 00:05:14,240 Speaker 6: printware space. They do have exposure to innerwear, which is 109 00:05:14,240 --> 00:05:16,920 Speaker 6: what Haines is. Haynes' is, you know, the basics underwears, 110 00:05:16,960 --> 00:05:21,440 Speaker 6: bras teas, and they used to be in active wear 111 00:05:21,480 --> 00:05:25,240 Speaker 6: un till they spun off Champion so they're very complimentary. Yes, 112 00:05:25,279 --> 00:05:26,760 Speaker 6: they spent off Champion about a year ago. 113 00:05:26,880 --> 00:05:29,960 Speaker 4: Okay, interesting, and I definitely remember Gilden, as you mentioned, 114 00:05:30,000 --> 00:05:31,680 Speaker 4: when you just start to look into the tags of 115 00:05:31,720 --> 00:05:34,039 Speaker 4: your T shirts, you'll start to see the name pop 116 00:05:34,160 --> 00:05:36,960 Speaker 4: up there. But I mean, what's the latest with consolidation 117 00:05:37,160 --> 00:05:40,039 Speaker 4: more broadly in your industry. I know you have a 118 00:05:40,080 --> 00:05:42,039 Speaker 4: lot of names that you cover that are doing a 119 00:05:42,040 --> 00:05:42,760 Speaker 4: lot of mergers. 120 00:05:42,839 --> 00:05:44,760 Speaker 6: Yeah, definitely, I think you know, it comes out of 121 00:05:44,800 --> 00:05:49,039 Speaker 6: time with tariffs and costs looming as well as I 122 00:05:49,040 --> 00:05:52,359 Speaker 6: mean for this acquisition, I think it's been considered for 123 00:05:52,360 --> 00:05:54,640 Speaker 6: a while as actually there was a whole proxy battle 124 00:05:54,680 --> 00:05:57,120 Speaker 6: about it a few years ago where they actually ousted 125 00:05:57,120 --> 00:06:00,320 Speaker 6: the CEO over it, and then he has returned earned 126 00:06:00,800 --> 00:06:03,880 Speaker 6: since then and they completely changed the board over So 127 00:06:04,400 --> 00:06:08,440 Speaker 6: this didn't come completely out of nowhere. But I think 128 00:06:08,440 --> 00:06:10,159 Speaker 6: it makes a lot of sense just in terms of 129 00:06:10,200 --> 00:06:13,440 Speaker 6: you know, Gilden's building out their whole manufacturing footprint, and 130 00:06:13,560 --> 00:06:16,080 Speaker 6: it's once again really complimentary. They already kind of make 131 00:06:16,120 --> 00:06:18,400 Speaker 6: everything that Haines does, but on a larger scale at 132 00:06:18,400 --> 00:06:19,120 Speaker 6: a lower cost. 133 00:06:19,720 --> 00:06:23,560 Speaker 2: And Haines Brand's based in Winterston Salem, North Carolina, yeah, 134 00:06:23,600 --> 00:06:26,560 Speaker 2: I'm sure Sarah talk to us about You mentioned that 135 00:06:26,600 --> 00:06:30,120 Speaker 2: the tariffs. How is it impacting your world, because I 136 00:06:30,160 --> 00:06:31,440 Speaker 2: would think that would be immediate. 137 00:06:32,000 --> 00:06:34,680 Speaker 6: Yes, so it definitely is impacting my world with you know, 138 00:06:34,680 --> 00:06:38,200 Speaker 6: the footwear brands. But for Guilden and Haines, actually Guilden 139 00:06:38,279 --> 00:06:41,960 Speaker 6: is one of the largest users of US cotton, so yes, 140 00:06:42,080 --> 00:06:45,080 Speaker 6: they are probably one of the largest ones, and so 141 00:06:45,720 --> 00:06:48,120 Speaker 6: that is actually going to help them not have to 142 00:06:48,160 --> 00:06:50,400 Speaker 6: deal with as many tariff costs just since the US 143 00:06:50,480 --> 00:06:53,359 Speaker 6: the products are made with US cotton, so they're subject 144 00:06:53,360 --> 00:06:55,360 Speaker 6: to a lower tariff rate, so that's actually something that 145 00:06:55,400 --> 00:06:58,359 Speaker 6: they can benefit from. They also are less exposed to 146 00:06:58,480 --> 00:07:01,839 Speaker 6: Asia and more in Central America as well as Haynes brants. 147 00:07:01,880 --> 00:07:06,480 Speaker 6: Their manufacturing footprints are very complimentary and overlap, so they'll 148 00:07:06,520 --> 00:07:08,960 Speaker 6: be able to kind of mitigate that pretty well. But 149 00:07:09,040 --> 00:07:12,080 Speaker 6: for Haynes brands, it guilding gives them a much more 150 00:07:12,120 --> 00:07:15,880 Speaker 6: financial stability and opportunity for that I. 151 00:07:15,800 --> 00:07:18,120 Speaker 4: Want to quickly move to on holdings kind of. This 152 00:07:18,160 --> 00:07:21,960 Speaker 4: is also a company that you cover, Sneaker firm. They're 153 00:07:22,000 --> 00:07:24,640 Speaker 4: basically seeing analysts and Jeffries that are saying that twenty 154 00:07:24,720 --> 00:07:27,760 Speaker 4: twenty five will mark the peak in the company's sales, 155 00:07:28,400 --> 00:07:30,920 Speaker 4: and I want to know what is your reaction to 156 00:07:31,520 --> 00:07:33,520 Speaker 4: this downgrade here. 157 00:07:33,840 --> 00:07:36,280 Speaker 6: Yeah, I don't think we've seen the peak of on 158 00:07:36,560 --> 00:07:39,680 Speaker 6: I think they're just starting in apparel. Apparel. They actually 159 00:07:39,720 --> 00:07:42,880 Speaker 6: sold more units of apparel this quarter than they did footwear. 160 00:07:43,360 --> 00:07:45,680 Speaker 6: I grew over seventy five percent, and they're really just 161 00:07:45,720 --> 00:07:48,040 Speaker 6: getting started with that. They're also really just getting started 162 00:07:48,080 --> 00:07:51,600 Speaker 6: with their DTC expansion, opening stores as we've seen in 163 00:07:51,600 --> 00:07:53,720 Speaker 6: New York a few pop up, but they're doing really 164 00:07:53,760 --> 00:07:55,320 Speaker 6: well with that, so they I think to have a 165 00:07:55,400 --> 00:07:56,680 Speaker 6: long runway for growth. 166 00:07:57,000 --> 00:07:59,960 Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after that. 167 00:08:02,280 --> 00:08:06,000 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 168 00:08:06,080 --> 00:08:09,440 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 169 00:08:09,560 --> 00:08:12,640 Speaker 1: with the Bluemberg Business app. Listen on demand wherever you 170 00:08:12,680 --> 00:08:15,640 Speaker 1: get your podcasts, or watch us live on YouTube. 171 00:08:16,560 --> 00:08:18,240 Speaker 2: Well, you know what I'm doing, I'm finding myself doing 172 00:08:18,240 --> 00:08:20,320 Speaker 2: more and more, which is just a self checkout, you know, 173 00:08:20,320 --> 00:08:23,200 Speaker 2: whether it's at the supermarket, going to the self checkout line, 174 00:08:24,120 --> 00:08:27,920 Speaker 2: scanning your thing, paying airports you know they don't have 175 00:08:27,960 --> 00:08:29,800 Speaker 2: cashers anymore, and you go, go, go get a snack in 176 00:08:29,800 --> 00:08:31,400 Speaker 2: a bottle of water. So more and more, and I'm 177 00:08:31,400 --> 00:08:32,679 Speaker 2: always wondering who. 178 00:08:32,520 --> 00:08:33,160 Speaker 3: Does that stuff? 179 00:08:33,200 --> 00:08:34,319 Speaker 5: Who does that behind it? 180 00:08:34,480 --> 00:08:36,200 Speaker 2: I think the next guest can help us out here. 181 00:08:36,240 --> 00:08:38,640 Speaker 2: So get Minor joins us. He's a chief and actual 182 00:08:38,640 --> 00:08:41,360 Speaker 2: officer in the company's name is NYAX. It trades on 183 00:08:41,360 --> 00:08:45,760 Speaker 2: the Nasdaq NYAX market cap about one point six billion stocks, 184 00:08:45,840 --> 00:08:47,800 Speaker 2: up about forty seven percent year to date. They reported 185 00:08:47,800 --> 00:08:50,959 Speaker 2: some numbers I believe yesterday or today, Sgiate, thanks so 186 00:08:51,080 --> 00:08:53,040 Speaker 2: much for joining us here. Tell us what you guys 187 00:08:53,080 --> 00:08:55,840 Speaker 2: do at NIAS. How are you guys in that kind 188 00:08:55,840 --> 00:08:59,040 Speaker 2: of self service space in the fintech space? 189 00:09:00,360 --> 00:09:01,040 Speaker 5: Good morning. 190 00:09:01,840 --> 00:09:05,120 Speaker 7: So we are actually the global leader in payment and 191 00:09:05,240 --> 00:09:07,679 Speaker 7: management solution for the unattended market. 192 00:09:07,880 --> 00:09:09,760 Speaker 5: And what does it mean unattended? 193 00:09:10,240 --> 00:09:14,560 Speaker 7: It's really the vending machine massles jail ivy charges when 194 00:09:14,760 --> 00:09:17,400 Speaker 7: it's just you in front of the machine, does not 195 00:09:17,520 --> 00:09:22,080 Speaker 7: a shield in between. And in fact, if you bought 196 00:09:22,120 --> 00:09:25,800 Speaker 7: a drink in a vending machine lately at the JFK, 197 00:09:26,320 --> 00:09:30,440 Speaker 7: you probably used one of our Nayaks yellow devices. So 198 00:09:31,480 --> 00:09:34,440 Speaker 7: we have more than hundred thousand customers. We sell our 199 00:09:34,480 --> 00:09:37,080 Speaker 7: product in more than one hundred and twenty countries, and 200 00:09:37,120 --> 00:09:40,160 Speaker 7: we have a very simple mission statement. 201 00:09:40,160 --> 00:09:42,000 Speaker 5: To help our customers grow their business. 202 00:09:42,040 --> 00:09:45,520 Speaker 7: What does it mean, increase their revenue, decrease their cost 203 00:09:45,960 --> 00:09:50,160 Speaker 7: and through loyalty, create that stickiness with our customers with 204 00:09:50,200 --> 00:09:51,199 Speaker 7: their customers. 205 00:09:52,960 --> 00:09:56,720 Speaker 4: How do you stay ahead in today's fintech landscape? Of 206 00:09:56,720 --> 00:09:58,400 Speaker 4: course there's a lot of players now. 207 00:10:00,160 --> 00:10:04,000 Speaker 7: So actually in our area there's not a lot of 208 00:10:05,800 --> 00:10:09,080 Speaker 7: not a lot of competition. I'm talking about the payment 209 00:10:09,679 --> 00:10:14,000 Speaker 7: and in the unattended space. So in fact, you know, 210 00:10:14,080 --> 00:10:17,679 Speaker 7: we are the only global, as I said, a player 211 00:10:18,160 --> 00:10:25,440 Speaker 7: in this unattended space. It's a very fragmented business and decentralized, 212 00:10:25,640 --> 00:10:28,640 Speaker 7: so there's a lot of small players and we are 213 00:10:28,679 --> 00:10:34,640 Speaker 7: with our global solution basically integrated hardware, payment and services 214 00:10:34,679 --> 00:10:37,160 Speaker 7: all together, we can bring that to the local market. 215 00:10:37,800 --> 00:10:40,840 Speaker 5: It's also a very highly regulated. 216 00:10:40,800 --> 00:10:43,720 Speaker 7: Market, so there's a lot of barriers to entry, so 217 00:10:44,559 --> 00:10:49,120 Speaker 7: whether it's a regulation on payment, whether it's privacy, and 218 00:10:49,200 --> 00:10:53,400 Speaker 7: with our global solution, with us being there for twenty years, 219 00:10:53,640 --> 00:10:56,360 Speaker 7: we were able to overcome that. We look at ourselves 220 00:10:56,360 --> 00:10:58,480 Speaker 7: as a payment company and what do you need as 221 00:10:58,480 --> 00:11:01,440 Speaker 7: a payment company? You need basically three things. You need 222 00:11:01,440 --> 00:11:05,559 Speaker 7: the trust, you need the scalability and you really need 223 00:11:05,600 --> 00:11:06,720 Speaker 7: the easy doing business. 224 00:11:06,880 --> 00:11:10,240 Speaker 5: So from a trust perspective, we build that trust. 225 00:11:10,000 --> 00:11:13,120 Speaker 7: Over the twenty years. We have a very strong brand. 226 00:11:14,080 --> 00:11:16,720 Speaker 7: Look now for the yellow devices. You would see that 227 00:11:16,960 --> 00:11:20,920 Speaker 7: everywhere from an easy to do business with it's again 228 00:11:21,000 --> 00:11:22,800 Speaker 7: it's a bit to B to see. So we have 229 00:11:22,880 --> 00:11:25,320 Speaker 7: a very you know, it's a high profile company. You 230 00:11:25,440 --> 00:11:27,880 Speaker 7: go to whether it's the cow wash to the vending 231 00:11:27,920 --> 00:11:31,360 Speaker 7: machine and you see us. So B to B it's 232 00:11:31,400 --> 00:11:35,320 Speaker 7: all about regulation and we were able to overcome that. 233 00:11:35,880 --> 00:11:38,160 Speaker 7: When it comes to B to see, as I said, 234 00:11:38,160 --> 00:11:40,720 Speaker 7: it's in front of us and you want that in 235 00:11:40,760 --> 00:11:43,760 Speaker 7: a nanosecond to get your snack, to get your coffee. 236 00:11:44,520 --> 00:11:47,400 Speaker 7: So on scalability, this is where we are focusing right. 237 00:11:47,440 --> 00:11:50,680 Speaker 7: This is what takes time to build. And we've showed 238 00:11:50,720 --> 00:11:53,840 Speaker 7: that we are using more than eighty distributors all around 239 00:11:53,840 --> 00:11:58,040 Speaker 7: the world right so we are stetying our products straight 240 00:11:58,080 --> 00:11:58,800 Speaker 7: to the OEM. 241 00:11:58,920 --> 00:12:00,360 Speaker 5: So when the vending machine, the. 242 00:12:00,320 --> 00:12:05,040 Speaker 7: Massage sare the key to ride are coming from the manufacturers, 243 00:12:05,240 --> 00:12:08,480 Speaker 7: it will already bring that NIX device. 244 00:12:08,920 --> 00:12:11,880 Speaker 2: Talk to us about the EV business, electric vehicle business, 245 00:12:11,920 --> 00:12:14,760 Speaker 2: how are you guys approaching that? What is your expectation 246 00:12:14,920 --> 00:12:19,960 Speaker 2: for how that business will grow for you, So great question. 247 00:12:20,080 --> 00:12:24,199 Speaker 7: Iv is definitely one of the three main growth drivers 248 00:12:24,280 --> 00:12:28,240 Speaker 7: as we look into twenty twenty five and even beyond. 249 00:12:29,040 --> 00:12:30,559 Speaker 5: There's a few elements there. 250 00:12:30,679 --> 00:12:34,720 Speaker 7: It can be as easy as any unattended verticals that 251 00:12:34,760 --> 00:12:38,959 Speaker 7: we're already in and we're already working with the ivygo 252 00:12:39,080 --> 00:12:43,800 Speaker 7: Electrified America, Electrifiic Canada where we are providing the payment device, 253 00:12:44,600 --> 00:12:48,200 Speaker 7: but it can also be where we are developed the 254 00:12:48,800 --> 00:12:52,079 Speaker 7: management suite, the electricity management suite that has a lot 255 00:12:52,120 --> 00:12:55,960 Speaker 7: of regulations around it, and we were able to accommodate 256 00:12:56,320 --> 00:13:01,480 Speaker 7: data as well. And then for small businesses, which I 257 00:13:01,480 --> 00:13:04,160 Speaker 7: haven't mentioned that, but most of our customers are small 258 00:13:04,200 --> 00:13:08,280 Speaker 7: and small and medium businesses. That's where we provide the 259 00:13:08,360 --> 00:13:14,400 Speaker 7: old solution, the hard well, the management electricity basically as 260 00:13:14,440 --> 00:13:17,679 Speaker 7: well as payments. So Ivy we just signed a couple 261 00:13:17,679 --> 00:13:22,720 Speaker 7: of days ago announced the agreement with Hotel which is 262 00:13:22,960 --> 00:13:27,680 Speaker 7: a potential of one hundred thousand ivy charging stations to 263 00:13:27,760 --> 00:13:31,520 Speaker 7: be deployed in North America and also in Europe. 264 00:13:32,360 --> 00:13:35,120 Speaker 5: And many other contracts like that. 265 00:13:35,120 --> 00:13:38,360 Speaker 7: That shows the potential with the fact that we are 266 00:13:38,400 --> 00:13:41,880 Speaker 7: a global company, so it can be done in France 267 00:13:42,120 --> 00:13:46,240 Speaker 7: or in the state of California, and you have the 268 00:13:46,320 --> 00:13:51,000 Speaker 7: same exact product all around the globe. 269 00:13:51,280 --> 00:13:55,640 Speaker 4: Are there any particular market gaps or audiences that are 270 00:13:55,880 --> 00:13:57,720 Speaker 4: underserved that you're targeting right now? 271 00:13:59,200 --> 00:14:03,760 Speaker 7: So you know from from in the unattended space, which 272 00:14:03,800 --> 00:14:08,840 Speaker 7: is the majority of our revenue today, Definitely there's a 273 00:14:08,880 --> 00:14:12,760 Speaker 7: place on the EV to grow and the electric vehicle charges, 274 00:14:12,960 --> 00:14:18,960 Speaker 7: smart coolers is a very fast growing area parking as well. 275 00:14:20,440 --> 00:14:21,280 Speaker 5: Micro market. 276 00:14:21,360 --> 00:14:24,680 Speaker 7: So this is in the unattended, but we also are 277 00:14:25,560 --> 00:14:30,000 Speaker 7: stepping in into more of areas like as you said, 278 00:14:30,000 --> 00:14:33,040 Speaker 7: the EV charger, that is beyond the payment or even 279 00:14:33,040 --> 00:14:35,720 Speaker 7: the retail. What we've learned over the twenty years that 280 00:14:35,760 --> 00:14:39,520 Speaker 7: we're doing businesses with business with small businesses is that 281 00:14:39,560 --> 00:14:43,120 Speaker 7: they're still in the attendant, inside the store, inside right 282 00:14:43,160 --> 00:14:46,720 Speaker 7: the the whatever it is that that you're selling. 283 00:14:47,200 --> 00:14:48,080 Speaker 5: There's not a. 284 00:14:48,040 --> 00:14:52,800 Speaker 7: Good product for those small businesses, and we are as 285 00:14:52,800 --> 00:14:59,720 Speaker 7: we speak and expanding that into other countries as well. 286 00:15:00,520 --> 00:15:03,680 Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this. 287 00:15:05,800 --> 00:15:09,520 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 288 00:15:09,600 --> 00:15:12,680 Speaker 1: weekdays at ten am Eastern on Apple Coarclay and Android 289 00:15:12,720 --> 00:15:16,000 Speaker 1: Auto with the Bloomberg Business App, listen on demand wherever 290 00:15:16,080 --> 00:15:19,720 Speaker 1: you get your podcasts, or watch us live on YouTube. 291 00:15:19,840 --> 00:15:21,400 Speaker 2: Well, the only time I get to ask the question 292 00:15:22,080 --> 00:15:24,120 Speaker 2: how's a US farmer doing? It's usually when we're talking 293 00:15:24,120 --> 00:15:26,760 Speaker 2: to somebody from like you know, Deer or Caterpill or 294 00:15:27,000 --> 00:15:29,000 Speaker 2: something like that, the people who make all the equipment 295 00:15:29,040 --> 00:15:31,040 Speaker 2: for But we want to go right to the source. 296 00:15:31,080 --> 00:15:33,640 Speaker 2: And boy, do we have a source on the ground. 297 00:15:34,080 --> 00:15:37,120 Speaker 2: Ryan Hefty. He's a co host of ag PhD TV 298 00:15:37,200 --> 00:15:41,240 Speaker 2: and radio and CEO of Hefty Seed Company. He's coming 299 00:15:41,280 --> 00:15:46,000 Speaker 2: to us from the Hefty Farm, which is located near Baltic, 300 00:15:46,200 --> 00:15:49,480 Speaker 2: South Dakota, which is about ten miles from soup Fall, 301 00:15:49,560 --> 00:15:52,520 Speaker 2: South Dakota. And he sent me a zoom map. Man, 302 00:15:52,680 --> 00:15:55,000 Speaker 2: there is nothing butt farm out there. 303 00:15:55,080 --> 00:15:57,160 Speaker 3: Holy Now, look at his background. I love it. 304 00:15:57,280 --> 00:15:57,760 Speaker 1: It's awesome. 305 00:15:57,800 --> 00:16:00,040 Speaker 2: Brian, Thank you so much for joining us here. I 306 00:16:00,080 --> 00:16:02,960 Speaker 2: really appreciate you taking the time. You referred to me 307 00:16:03,000 --> 00:16:04,800 Speaker 2: as somebody who's just the expert on kind of give 308 00:16:04,840 --> 00:16:06,440 Speaker 2: us a sense of how things are going out there 309 00:16:06,480 --> 00:16:08,760 Speaker 2: on the farm. So give us a sense, Brice, how 310 00:16:08,840 --> 00:16:10,560 Speaker 2: is the US farmer doing these days? 311 00:16:11,960 --> 00:16:13,560 Speaker 8: Well, first of all, one of the things you didn't 312 00:16:13,560 --> 00:16:15,960 Speaker 8: mention is we do farm. We farm about thirty five 313 00:16:16,040 --> 00:16:18,200 Speaker 8: hundred crowd acres, and I would just say, right now, 314 00:16:18,800 --> 00:16:21,920 Speaker 8: the farm economy is not real great, mainly because commodity 315 00:16:21,920 --> 00:16:24,400 Speaker 8: prices aren't good. They haven't been good for the last 316 00:16:24,400 --> 00:16:28,240 Speaker 8: couple of years. We've had rising costs as farmers, and 317 00:16:28,360 --> 00:16:31,240 Speaker 8: so we're struggling a little bit. But the flip side 318 00:16:31,280 --> 00:16:34,960 Speaker 8: of that is we're doing as farmers a phenomenal job 319 00:16:35,000 --> 00:16:37,680 Speaker 8: producing food for our growing world. We might have a 320 00:16:37,800 --> 00:16:40,960 Speaker 8: record crop this year in the United States. I mean, 321 00:16:40,960 --> 00:16:43,480 Speaker 8: a lot of people forget this. We have the cheapest, safest, 322 00:16:43,560 --> 00:16:46,800 Speaker 8: most abundant food supply in the world. So I mean, 323 00:16:46,880 --> 00:16:50,760 Speaker 8: from that respect, farmer's doing great, But yeah, financially not 324 00:16:50,920 --> 00:16:51,880 Speaker 8: the best right now. 325 00:16:52,640 --> 00:16:53,000 Speaker 3: Brian. 326 00:16:53,400 --> 00:16:57,280 Speaker 4: Are tariffs filtering into any of those increases and costs 327 00:16:57,280 --> 00:16:58,840 Speaker 4: that you're seeing that you just cited. 328 00:17:00,960 --> 00:17:04,280 Speaker 8: Not a lot, But I mean there's so much going 329 00:17:04,320 --> 00:17:07,040 Speaker 8: on with this whole trade thing. One day markets go 330 00:17:07,119 --> 00:17:09,680 Speaker 8: way up, the next day they go down. So it's 331 00:17:09,760 --> 00:17:12,520 Speaker 8: more impact on the markets in the short term. But 332 00:17:12,800 --> 00:17:16,399 Speaker 8: as far as our costs, the biggest thing would be 333 00:17:16,480 --> 00:17:19,320 Speaker 8: some crop protection products maybe up just a little bit 334 00:17:19,359 --> 00:17:22,960 Speaker 8: because of that, but not much. Fertilizer is really the 335 00:17:22,960 --> 00:17:24,919 Speaker 8: biggest thing right now that's gone up a lot. But 336 00:17:25,400 --> 00:17:28,360 Speaker 8: I mean, honestly, we source a lot of the phosphorus 337 00:17:28,800 --> 00:17:31,160 Speaker 8: right from here in the United States, and we're at 338 00:17:31,200 --> 00:17:34,639 Speaker 8: all at not record high or anything, but it's really high, 339 00:17:34,800 --> 00:17:37,480 Speaker 8: especially in relation to the corn price right now. So no, 340 00:17:37,640 --> 00:17:41,399 Speaker 8: tariffs haven't had an enormous impact to date, but obviously 341 00:17:41,440 --> 00:17:45,280 Speaker 8: we as farmers are very concerned about international trade. It 342 00:17:45,359 --> 00:17:47,720 Speaker 8: has a huge impact on our commodity prices. 343 00:17:48,160 --> 00:17:51,639 Speaker 2: Brian Matt from New Jersey mails in with a simple question, 344 00:17:51,880 --> 00:17:54,480 Speaker 2: till or no till. I have no idea what that means, 345 00:17:54,480 --> 00:17:55,720 Speaker 2: but I suspect you do. 346 00:17:57,640 --> 00:17:58,440 Speaker 8: I definitely do. 347 00:17:58,640 --> 00:17:59,400 Speaker 5: We've done both. 348 00:17:59,400 --> 00:18:03,119 Speaker 8: We've done every thing on our farm. But anyway, it's basically, 349 00:18:03,160 --> 00:18:08,320 Speaker 8: are you going to run over your fields and stir 350 00:18:08,600 --> 00:18:12,280 Speaker 8: in all the residue into the soil? So we as 351 00:18:12,320 --> 00:18:16,119 Speaker 8: farmers often talk about turning the ground black, So basically 352 00:18:16,320 --> 00:18:21,720 Speaker 8: tilling under working under that residue that we have, And 353 00:18:21,800 --> 00:18:25,320 Speaker 8: so years ago we had no other way to control weeds, 354 00:18:25,400 --> 00:18:28,320 Speaker 8: insects or diseases other than with tillage. Oh and prepare 355 00:18:28,359 --> 00:18:31,720 Speaker 8: a good seed bed too. Thanks to modern technology, we 356 00:18:31,840 --> 00:18:34,920 Speaker 8: don't have to do tillage. But the advantage to doing 357 00:18:34,960 --> 00:18:38,960 Speaker 8: tillage is the soil warms up more quickly. The disadvantage 358 00:18:39,160 --> 00:18:43,080 Speaker 8: is it's going to be more prone to erosion. Now, 359 00:18:43,160 --> 00:18:45,320 Speaker 8: one of the things that concerns a lot of just 360 00:18:45,760 --> 00:18:48,800 Speaker 8: non farmers out there is they get worried about pesticides. 361 00:18:49,160 --> 00:18:52,240 Speaker 8: And I would say, yeah, when we reduce tillage, we 362 00:18:52,359 --> 00:18:54,919 Speaker 8: have to use more pesticides. But the good news is 363 00:18:55,000 --> 00:18:57,800 Speaker 8: a lot of the dangerous pesticides they're off the market today. 364 00:18:58,480 --> 00:19:00,760 Speaker 8: A lot of things we're using now what we call 365 00:19:00,880 --> 00:19:04,520 Speaker 8: more natural alternatives. So, for example, the most popular herbicide 366 00:19:04,520 --> 00:19:06,520 Speaker 8: in the United States are one of the most it 367 00:19:06,560 --> 00:19:09,480 Speaker 8: comes from a tree. The most popular insecticide it comes 368 00:19:09,520 --> 00:19:11,560 Speaker 8: from the chrysanthemum flowers. So we've got a lot of 369 00:19:11,560 --> 00:19:15,119 Speaker 8: these things where they're derived from nature, much much safer 370 00:19:15,160 --> 00:19:17,600 Speaker 8: to human beings. And I feel great because we work 371 00:19:17,640 --> 00:19:20,159 Speaker 8: with these things. Every day people talk about safety to 372 00:19:20,200 --> 00:19:22,840 Speaker 8: food and everything else. Well, don't forget as farmers, we're 373 00:19:22,840 --> 00:19:25,600 Speaker 8: the ones who have to work with pesticides. So we're 374 00:19:25,640 --> 00:19:28,520 Speaker 8: not doing dumb things. We're not using products that are 375 00:19:28,600 --> 00:19:31,320 Speaker 8: super crazy, dangerous or anything like that. Just a lot 376 00:19:31,320 --> 00:19:32,560 Speaker 8: of misconceptions out there. 377 00:19:33,600 --> 00:19:37,560 Speaker 4: Are there any concerns in terms of changes in the climate. 378 00:19:37,600 --> 00:19:39,560 Speaker 4: Is that affecting you at all as a US farmer. 379 00:19:40,800 --> 00:19:44,800 Speaker 8: No, we believe what's going on with climate is mainly cyclical. 380 00:19:44,840 --> 00:19:47,600 Speaker 8: But I will say this, I'm from South Dakota. My 381 00:19:47,680 --> 00:19:50,160 Speaker 8: dad was originally a farmer from Iowa. Fifty years ago, 382 00:19:50,240 --> 00:19:53,159 Speaker 8: moved here and at that time they weren't really raising 383 00:19:53,200 --> 00:19:55,520 Speaker 8: a lot of summer crops. And what I mean by 384 00:19:55,520 --> 00:19:57,560 Speaker 8: that is crops that grow all through the summer and 385 00:19:57,600 --> 00:19:59,320 Speaker 8: all end of the fall. There was a lot of 386 00:19:59,359 --> 00:20:02,760 Speaker 8: small green was produced. Those are spring crops and they 387 00:20:02,840 --> 00:20:04,560 Speaker 8: get harvested in the middle of the summer, so then 388 00:20:04,600 --> 00:20:07,199 Speaker 8: there was nothing growing for a while. Well, when you 389 00:20:07,200 --> 00:20:09,159 Speaker 8: talk about climate change, the biggest thing a lot of 390 00:20:09,160 --> 00:20:11,399 Speaker 8: people want is less carbon dioxide in the air. We 391 00:20:11,440 --> 00:20:14,639 Speaker 8: can do that with more plants and having more stuff 392 00:20:14,680 --> 00:20:17,560 Speaker 8: growing longer during the growing season. And because of that, 393 00:20:18,000 --> 00:20:20,600 Speaker 8: we have more humidity now in our region than we've 394 00:20:20,640 --> 00:20:23,840 Speaker 8: ever had before because of these summer crops. So you know, 395 00:20:24,040 --> 00:20:26,520 Speaker 8: there's some little changes like that, But otherwise, no, I'm 396 00:20:26,560 --> 00:20:29,240 Speaker 8: not worried about climate change as a general statement not 397 00:20:29,320 --> 00:20:30,320 Speaker 8: impacting farmers. 398 00:20:30,760 --> 00:20:34,320 Speaker 2: Brian, your top line obviously has depended a large part 399 00:20:34,359 --> 00:20:36,600 Speaker 2: on just kind of where commodity prices are not much 400 00:20:36,600 --> 00:20:38,720 Speaker 2: you can do there. How about on the cost side, 401 00:20:38,720 --> 00:20:41,720 Speaker 2: how's the cost of running your farm and for the 402 00:20:41,720 --> 00:20:44,160 Speaker 2: average US farmer, how's that kind of changed over the years. 403 00:20:45,440 --> 00:20:48,399 Speaker 8: Well, equipment's a lot more expensive, but the technology is 404 00:20:48,440 --> 00:20:50,800 Speaker 8: good to go along with that. Seed is a lot 405 00:20:50,920 --> 00:20:53,600 Speaker 8: more expensive, I mean way more expensive, but we have 406 00:20:53,680 --> 00:20:56,840 Speaker 8: a lot better seed genetics. The cost of just labor 407 00:20:56,880 --> 00:20:59,640 Speaker 8: in general much much higher. I don't like the fact 408 00:20:59,640 --> 00:21:02,920 Speaker 8: that costs are as high as they are right now. Granted, 409 00:21:03,040 --> 00:21:06,080 Speaker 8: historically they aren't like the highest level ever anything, But 410 00:21:06,160 --> 00:21:07,880 Speaker 8: I loved it for a long time, and we had 411 00:21:07,920 --> 00:21:11,160 Speaker 8: super cheap interest because me, just like every other farmer 412 00:21:11,200 --> 00:21:13,439 Speaker 8: out there, we borrow lots of money. So if we 413 00:21:13,440 --> 00:21:16,119 Speaker 8: can get those interest rates down even another one or 414 00:21:16,160 --> 00:21:19,040 Speaker 8: two percent, wow, that would make a huge difference on 415 00:21:19,080 --> 00:21:21,919 Speaker 8: the cost side. So, yes, our costs are dramatically higher 416 00:21:21,960 --> 00:21:24,680 Speaker 8: than they used to be, but that's just that's part 417 00:21:24,680 --> 00:21:25,680 Speaker 8: of modern life. 418 00:21:26,080 --> 00:21:30,800 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 419 00:21:30,960 --> 00:21:34,960 Speaker 1: and anywhere else you get your podcasts. 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