1 00:00:03,160 --> 00:00:07,440 Speaker 1: Broadcasting live to New York, Bloomberg eleventh Rio to Washington, 2 00:00:07,560 --> 00:00:12,560 Speaker 1: d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:12,680 --> 00:00:17,680 Speaker 1: Bloomberg nine to the countries Channel one nine and around 4 00:00:17,720 --> 00:00:21,080 Speaker 1: the globe the Bloomberg Radio Plus app and Bloomberg Got Gone. 5 00:00:21,360 --> 00:00:25,000 Speaker 1: This is taking Stock. Coming up on taking stock. When 6 00:00:25,040 --> 00:00:28,760 Speaker 1: Americans fix up their homes, they turned to the chief 7 00:00:28,800 --> 00:00:31,479 Speaker 1: executive of the next company will be speaking about treks, 8 00:00:32,040 --> 00:00:36,520 Speaker 1: and you're the inventors of composite decking made from recyclable materials. 9 00:00:36,560 --> 00:00:39,440 Speaker 1: We're gonna tell you all about treks and trends in 10 00:00:39,600 --> 00:00:42,199 Speaker 1: the home remodeled business. We're else can be taking a 11 00:00:42,200 --> 00:00:44,519 Speaker 1: look at the markets and some big eco reports this 12 00:00:44,560 --> 00:00:48,080 Speaker 1: week Pan Manufacturing. That ties right into our guest as well. 13 00:00:48,360 --> 00:00:50,639 Speaker 1: Now let's get to Charlie Pellett. He's in the newsroom 14 00:00:50,640 --> 00:00:53,680 Speaker 1: with a Bloomberg business land and I thank you very much, Kathleen, 15 00:00:53,800 --> 00:00:56,560 Speaker 1: thank you him. Welcome back from Bermuda the DALV SMP 16 00:00:56,720 --> 00:00:59,600 Speaker 1: NEZ back all moving higher. We are brought to you 17 00:00:59,680 --> 00:01:05,959 Speaker 1: by the American Arbitration Association. Business disputes are inevitable, resolve 18 00:01:06,040 --> 00:01:09,720 Speaker 1: faster with the American Arbitration Association, the global leader in 19 00:01:09,800 --> 00:01:14,119 Speaker 1: alternative dispute resolution for over eighty five years. Learn more 20 00:01:14,360 --> 00:01:18,000 Speaker 1: at a d R dot org a rally and Crewe prices, 21 00:01:18,040 --> 00:01:22,880 Speaker 1: boosting energy shares. Apple also jumping after Berkshire Hathaway disclosed 22 00:01:22,880 --> 00:01:25,759 Speaker 1: a stake in the iPhone maker. Apple up now by 23 00:01:25,920 --> 00:01:28,920 Speaker 1: four percent. Oil trading at a six month high, as 24 00:01:29,000 --> 00:01:32,840 Speaker 1: Goldman Sachs said the market moved into a deficit earlier 25 00:01:32,840 --> 00:01:37,440 Speaker 1: than expected following supply disruptions in Nigeria along with an 26 00:01:37,440 --> 00:01:41,679 Speaker 1: increase in demand. Will Kennedy covers oil for Bloomberg News 27 00:01:41,720 --> 00:01:44,959 Speaker 1: in London. In the last few days, Nigeria has been 28 00:01:44,959 --> 00:01:48,760 Speaker 1: the big story. We've seen a resurgance of violence in 29 00:01:48,800 --> 00:01:52,160 Speaker 1: the Niger Delta, where rebels have always wanted to try 30 00:01:52,200 --> 00:01:54,240 Speaker 1: and get more oil revenue out of the central government. 31 00:01:55,000 --> 00:01:58,160 Speaker 1: Right now they've attacked several oil platforms throughout the vision. 32 00:01:58,200 --> 00:02:00,640 Speaker 1: And that's not six hundred thousand piles at a straight 33 00:02:00,640 --> 00:02:03,760 Speaker 1: out of the market taken Niga introduction to twenty a low, 34 00:02:04,080 --> 00:02:06,960 Speaker 1: and remember that comes out of existing atoges in Canada, 35 00:02:07,000 --> 00:02:09,640 Speaker 1: which is still trying to recover from the wildfire in 36 00:02:09,720 --> 00:02:12,720 Speaker 1: Venezuela where the claps. The economy is having an impact, 37 00:02:12,840 --> 00:02:15,160 Speaker 1: and right now crude oil up three and a half percent, 38 00:02:15,400 --> 00:02:19,200 Speaker 1: closer to forty eight dollars now four hired by a 39 00:02:19,320 --> 00:02:23,720 Speaker 1: dollar sixty three on West Texas Intermediate Delta Airlines will 40 00:02:23,760 --> 00:02:26,680 Speaker 1: trim plan growth for the second half of this year 41 00:02:26,680 --> 00:02:29,760 Speaker 1: and delay delivery of four jets as the carrier attempts 42 00:02:29,960 --> 00:02:33,120 Speaker 1: to reverse a revenue decline that has extended more than 43 00:02:33,160 --> 00:02:35,840 Speaker 1: a year. Delta shares up now by three and a 44 00:02:35,840 --> 00:02:39,040 Speaker 1: half percent, Dow indust reels up one night eight, SMP 45 00:02:39,240 --> 00:02:41,639 Speaker 1: up twenty two, and gold up a dollar eight e. 46 00:02:41,800 --> 00:02:44,280 Speaker 1: Now let's look at other news from around the world. 47 00:02:45,040 --> 00:02:47,960 Speaker 1: Thank you Charnie from the Bloomberg news room. I'm Sherry Anne. 48 00:02:48,360 --> 00:02:50,560 Speaker 1: This news update is brought to you by the Jute 49 00:02:50,560 --> 00:02:54,040 Speaker 1: Grand Cherokee, the most awarded suv ever. The Grand Cherokee 50 00:02:54,120 --> 00:02:57,080 Speaker 1: continues to raise the bar with this luxurious interior and 51 00:02:57,200 --> 00:03:00,959 Speaker 1: legendary four by four capability. Drive one at your local 52 00:03:01,040 --> 00:03:05,520 Speaker 1: Qute dealer today. Three Santa Monica, California police officers who 53 00:03:05,639 --> 00:03:08,720 Speaker 1: responded to a deadly rampage at a community college are 54 00:03:08,720 --> 00:03:12,680 Speaker 1: among thirteen law enforcement officers being honored with the medal 55 00:03:12,720 --> 00:03:16,040 Speaker 1: of Valor today. President Obama spoke this morning at a 56 00:03:16,080 --> 00:03:19,080 Speaker 1: ceremony at the White House. The public safety officers we 57 00:03:19,120 --> 00:03:23,560 Speaker 1: recognized today with the Medal of Valor found courage. Not 58 00:03:23,720 --> 00:03:27,680 Speaker 1: in search of recognition, they did it instinctively. In an 59 00:03:27,680 --> 00:03:30,320 Speaker 1: interview on i t v S Good Morning Britain, Donald 60 00:03:30,360 --> 00:03:33,160 Speaker 1: Trump was asked how he felt about the British Prime 61 00:03:33,160 --> 00:03:36,600 Speaker 1: Minister's criticism of his call Front band on Muslims entering 62 00:03:36,640 --> 00:03:39,440 Speaker 1: the US. Well, Number one, I'm not stupid, Okay, I 63 00:03:39,480 --> 00:03:42,400 Speaker 1: can tell you that right now. Just the opposite number 64 00:03:42,400 --> 00:03:44,240 Speaker 1: two in terms of divisive. I don't think I'm a 65 00:03:44,240 --> 00:03:47,120 Speaker 1: divisive person. I'm a unifier. Unlike our president. Now, I'm 66 00:03:47,120 --> 00:03:50,560 Speaker 1: a unifier. A cruise ship has docked in Galveston, Texas 67 00:03:50,640 --> 00:03:55,000 Speaker 1: minus one of its passengers. Samantha Broberg, apparently fell overboard 68 00:03:55,040 --> 00:03:58,560 Speaker 1: from the Carnival Liberty into the Gulf of Mexico early Friday. 69 00:03:58,800 --> 00:04:01,240 Speaker 1: The Coast Guard called off the search after looking for 70 00:04:01,280 --> 00:04:03,920 Speaker 1: the thirty three year old for more than twenty hours. 71 00:04:04,920 --> 00:04:08,080 Speaker 1: Utilities and their labor unions are asking state lawmakers to 72 00:04:08,200 --> 00:04:11,920 Speaker 1: make it a felony when anyone attacks utility workers. They 73 00:04:11,920 --> 00:04:15,720 Speaker 1: say the legislation is necessary as a deterrent, particularly for 74 00:04:15,760 --> 00:04:18,280 Speaker 1: those in the field restoring lost power who are on 75 00:04:18,440 --> 00:04:21,880 Speaker 1: high risk of violence. Global News twenty four hours a day, 76 00:04:21,880 --> 00:04:24,600 Speaker 1: powered by our two hundred journalists in more than a 77 00:04:24,680 --> 00:04:27,200 Speaker 1: hundred and fifty news bureaus around the world. From the 78 00:04:27,200 --> 00:04:31,719 Speaker 1: Bloomberg News Room, I'm sharing an Charlie, and we thank 79 00:04:31,760 --> 00:04:34,680 Speaker 1: you and again recapping S and P five hundred index 80 00:04:34,760 --> 00:04:37,719 Speaker 1: up twenty one points, a gain of one percent. I'm 81 00:04:37,800 --> 00:04:42,720 Speaker 1: Charlie Pellett and that's a Bloomberg business flash. You're listening 82 00:04:42,720 --> 00:04:45,719 Speaker 1: to Taking Stock with Kathleen Hays and Pim Fox on 83 00:04:45,760 --> 00:04:51,640 Speaker 1: Bloomberg Radio. Welcome back to taking Stock. We're going to 84 00:04:51,720 --> 00:04:56,080 Speaker 1: be looking now at an alternative wood decking company. If 85 00:04:56,080 --> 00:04:58,040 Speaker 1: you've put in a new deck lately or tried your 86 00:04:58,120 --> 00:04:59,880 Speaker 1: parent old when, I bet you're thinking, gee, I do 87 00:05:00,000 --> 00:05:02,400 Speaker 1: didn't know this existed, or maybe wishing you'd given a look. 88 00:05:02,600 --> 00:05:05,720 Speaker 1: Jim Klein is President and CEO of Treks. That's t 89 00:05:05,960 --> 00:05:09,360 Speaker 1: R e X located Winchester, Virginia, joining us in our 90 00:05:09,400 --> 00:05:15,440 Speaker 1: studio today. So Jim, welcome, thank you. So alternative wood decking. 91 00:05:15,520 --> 00:05:17,800 Speaker 1: A lot of people have their you know, their pressure 92 00:05:17,839 --> 00:05:21,400 Speaker 1: treated wood. They have their cedar. What is alternative would 93 00:05:21,440 --> 00:05:27,000 Speaker 1: ducking like? Basically? It offers advantages that would can't offer. Uh, 94 00:05:27,040 --> 00:05:30,960 Speaker 1: it requires significantly less maintenance and will last for over 95 00:05:31,040 --> 00:05:35,960 Speaker 1: twenty five years. Is it more expensive? It's a little 96 00:05:35,960 --> 00:05:39,160 Speaker 1: bit more expensive depending on the quality of product you buy. 97 00:05:39,240 --> 00:05:42,599 Speaker 1: It will be about ten to twenty more than a 98 00:05:42,640 --> 00:05:45,599 Speaker 1: pressure treated deck. What does it look like? Uh, it 99 00:05:45,720 --> 00:05:49,000 Speaker 1: will It will look very similar to wood, but it 100 00:05:49,160 --> 00:05:52,479 Speaker 1: is made from recycled paul ours is made from recycled 101 00:05:52,480 --> 00:05:56,279 Speaker 1: polyethylene and sawdust. So the combination of those two give 102 00:05:56,320 --> 00:06:00,719 Speaker 1: a fairly realistic would look to it? Now, just to 103 00:06:00,760 --> 00:06:04,000 Speaker 1: go over the details, right, saw dust, wood palettes, wood chips, 104 00:06:04,040 --> 00:06:08,760 Speaker 1: would fiber then also polyethylene. You just described you want 105 00:06:08,800 --> 00:06:11,760 Speaker 1: to go after not just the market that you've got, 106 00:06:12,040 --> 00:06:14,640 Speaker 1: You want to go after the market that includes the 107 00:06:14,680 --> 00:06:20,479 Speaker 1: traditional all wood planking and decking material. Correct. Absolutely right, 108 00:06:20,640 --> 00:06:22,440 Speaker 1: And and the reason we want to do that is 109 00:06:22,760 --> 00:06:26,600 Speaker 1: eight percent of the lineal feet sold or would either 110 00:06:26,640 --> 00:06:31,880 Speaker 1: pressure treated or hardwoods. Alternative wood products are only about 111 00:06:31,880 --> 00:06:35,640 Speaker 1: six For every one percent we can move to alternative 112 00:06:35,640 --> 00:06:39,240 Speaker 1: wood products, it's fifty million of additional sales to us. 113 00:06:39,279 --> 00:06:42,760 Speaker 1: So you joined Tracks in two thousand eight as the 114 00:06:42,800 --> 00:06:47,479 Speaker 1: CFO chief financial officer. You're now the president and CEO. 115 00:06:47,640 --> 00:06:49,880 Speaker 1: What kind of background did you come from and what 116 00:06:49,960 --> 00:06:53,960 Speaker 1: did you bring? What attracted you two Tracks? Well, prior 117 00:06:53,960 --> 00:06:56,599 Speaker 1: to coming with Tracks, I had worked for the new 118 00:06:56,680 --> 00:07:01,279 Speaker 1: CEO of Tracks for about twenty years, and so I 119 00:07:01,400 --> 00:07:05,320 Speaker 1: had a fair amount of experience in finance. When UH 120 00:07:05,839 --> 00:07:11,120 Speaker 1: the president slot opened up, I was offered the president 121 00:07:11,200 --> 00:07:15,240 Speaker 1: slot of a division of Harscoe Corporation. UH worked there 122 00:07:15,280 --> 00:07:18,000 Speaker 1: for two and a half years, culminated in a sale 123 00:07:18,000 --> 00:07:22,720 Speaker 1: of that division. I found myself retired and I got 124 00:07:22,720 --> 00:07:25,400 Speaker 1: a call from an old boss. He suggested maybe I 125 00:07:25,480 --> 00:07:29,160 Speaker 1: might be interested in working as a CFO for him. 126 00:07:29,280 --> 00:07:31,400 Speaker 1: Right now, what are we talking about? An annual run 127 00:07:31,520 --> 00:07:34,320 Speaker 1: rate I believe of around four hundred and fifty million 128 00:07:34,360 --> 00:07:37,960 Speaker 1: dollars something in that range. And what the net income 129 00:07:38,040 --> 00:07:42,120 Speaker 1: of nearly sixty million? Uh? That's right. Our sales have 130 00:07:42,200 --> 00:07:44,560 Speaker 1: been growing at an average compound growth over the last 131 00:07:44,640 --> 00:07:50,880 Speaker 1: four years. About earnings, Eva daw about thirty. As far 132 00:07:51,040 --> 00:07:55,600 Speaker 1: as the technology that goes into making this h can 133 00:07:55,600 --> 00:07:59,040 Speaker 1: we call it a composite? Would that be accurate? Okay, 134 00:08:00,040 --> 00:08:02,280 Speaker 1: You've got something special, which I believe has to do 135 00:08:02,320 --> 00:08:04,960 Speaker 1: with having invented it at tracks. Does this mean it's 136 00:08:04,960 --> 00:08:08,800 Speaker 1: patent protected? There's no patents on the product we manufacture. 137 00:08:09,560 --> 00:08:14,200 Speaker 1: We are a recycled product. Our deck boards are recycled material. 138 00:08:14,880 --> 00:08:20,000 Speaker 1: Waste polyethylene such as grocery bags, shopping bags, saw dust 139 00:08:20,040 --> 00:08:24,200 Speaker 1: from cabinet and UH flooring manufacturers are combined to make 140 00:08:24,240 --> 00:08:30,600 Speaker 1: our product. So you have longstanding relationships with some of 141 00:08:30,600 --> 00:08:34,160 Speaker 1: the big national retailers like Walmart and Target. What is 142 00:08:34,200 --> 00:08:37,240 Speaker 1: the ambition that you have to for Trecks? Do you 143 00:08:37,280 --> 00:08:38,520 Speaker 1: want to grow? Do you want to get into different 144 00:08:38,600 --> 00:08:41,240 Speaker 1: kinds of products? What are you know where? What's the 145 00:08:41,480 --> 00:08:44,880 Speaker 1: what's your dream? What's your vision? Well, we certainly are 146 00:08:45,360 --> 00:08:49,240 Speaker 1: have our roots UH in recycling, that was the origin 147 00:08:49,280 --> 00:08:52,600 Speaker 1: of the company. But Trecks is a typical manufacturing company. 148 00:08:52,640 --> 00:08:55,000 Speaker 1: We're trying to make the right kind of return for 149 00:08:55,040 --> 00:08:58,280 Speaker 1: our shareholders. So to do that, we believe growth is 150 00:08:58,320 --> 00:09:00,640 Speaker 1: a key component of that. One of the ways we 151 00:09:00,679 --> 00:09:04,520 Speaker 1: get there is by converting people from wood products to 152 00:09:04,679 --> 00:09:08,040 Speaker 1: what alternative products? Do you have any trouble finding skilled workers? 153 00:09:08,040 --> 00:09:10,240 Speaker 1: You know? And and and how about this strong dollar? 154 00:09:10,280 --> 00:09:12,160 Speaker 1: That kind of those kind of macro forces we talk 155 00:09:12,200 --> 00:09:16,240 Speaker 1: about all the time on this show, especially for manufacturers. UH. 156 00:09:16,480 --> 00:09:20,120 Speaker 1: Tricks has manufactured in the United States. We do have 157 00:09:20,160 --> 00:09:22,440 Speaker 1: an international business. It's a little bit less than ten 158 00:09:22,480 --> 00:09:25,440 Speaker 1: percent of our sales. Uh. Certainly that is created a 159 00:09:25,440 --> 00:09:28,400 Speaker 1: head wind because it makes our products more expensive overseas. 160 00:09:29,480 --> 00:09:32,680 Speaker 1: You also have the Transcend product line. Correct, this is 161 00:09:32,880 --> 00:09:35,600 Speaker 1: uh something that you've introduced I guests over the last 162 00:09:35,600 --> 00:09:40,120 Speaker 1: five or six years. Uh, that's correct. The Transcend product 163 00:09:40,160 --> 00:09:43,280 Speaker 1: is a second generation product that offers a much more 164 00:09:43,360 --> 00:09:47,280 Speaker 1: resilient product that requires dramatically less maintenance than any of 165 00:09:47,320 --> 00:09:53,559 Speaker 1: the predecessing products. So uh, in terms of recycling, and 166 00:09:53,600 --> 00:09:56,840 Speaker 1: this is saying that's with the company's roots. Uh, what 167 00:09:56,920 --> 00:09:59,319 Speaker 1: are are you pleased? We haven't been in the industry 168 00:09:59,360 --> 00:10:01,440 Speaker 1: for so long seeing what you're seeing there? Are we? 169 00:10:01,640 --> 00:10:03,720 Speaker 1: Are we doing enough? We're moving enough in the right direction. 170 00:10:04,720 --> 00:10:06,080 Speaker 1: I think we have a long way to go. If 171 00:10:06,080 --> 00:10:09,240 Speaker 1: you look at the amount of waste poly ethylene that's recycled, 172 00:10:09,280 --> 00:10:12,640 Speaker 1: it's a small percentage, So we could all do more 173 00:10:12,760 --> 00:10:16,560 Speaker 1: in the recycling. A lot of people are are not 174 00:10:16,640 --> 00:10:19,440 Speaker 1: as conscious as they should be with regard to going 175 00:10:19,480 --> 00:10:23,040 Speaker 1: to recycling centers and depositing their plastics at recycling centers. 176 00:10:23,640 --> 00:10:25,760 Speaker 1: Thank you very much for spending time with us. Jim 177 00:10:25,840 --> 00:10:29,400 Speaker 1: Klein is the chief executive of Treks, a company. They 178 00:10:29,400 --> 00:10:33,520 Speaker 1: are based in Winchester, Virginia. Thank you, thank you. Shares 179 00:10:33,600 --> 00:10:36,200 Speaker 1: of Treks right now up thirty two cents or forty 180 00:10:36,240 --> 00:10:39,360 Speaker 1: one eighty six cents. The stock is up a little 181 00:10:39,360 --> 00:10:43,200 Speaker 1: bit more than ten percent so far this year. Coming 182 00:10:43,280 --> 00:10:45,960 Speaker 1: up on taking stock, We're we're speaking with Brad McMillan, 183 00:10:46,040 --> 00:10:50,520 Speaker 1: chief investment officer for Commonwealth Financial Network. Find out what 184 00:10:50,600 --> 00:10:53,600 Speaker 1: you should do with your money. That's next right here, 185 00:10:53,720 --> 00:11:03,240 Speaker 1: I'm Doomer Radio. Down day for you, as government bonds, 186 00:11:03,320 --> 00:11:07,640 Speaker 1: as stocks move one percent higher across the board, what 187 00:11:07,720 --> 00:11:09,880 Speaker 1: do you have to be on the lookout for this week? 188 00:11:09,880 --> 00:11:11,920 Speaker 1: We're going to find out, coming up right now on 189 00:11:11,960 --> 00:11:12,880 Speaker 1: Bloomberg Radio.