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Speaker 1: This is taking Stock. Coming up on taking stock. When
Speaker 1: Americans fix up their homes, they turned to the chief
Speaker 1: executive of the next company will be speaking about treks,
Speaker 1: and you're the inventors of composite decking made from recyclable materials.
Speaker 1: We're gonna tell you all about treks and trends in
Speaker 1: the home remodeled business. We're else can be taking a
Speaker 1: look at the markets and some big eco reports this
Speaker 1: week Pan Manufacturing. That ties right into our guest as well.
Speaker 1: Now let's get to Charlie Pellett. He's in the newsroom
Speaker 1: with a Bloomberg business land and I thank you very much, Kathleen,
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Speaker 1: at a d R dot org a rally and Crewe prices,
Speaker 1: boosting energy shares. Apple also jumping after Berkshire Hathaway disclosed
Speaker 1: a stake in the iPhone maker. Apple up now by
Speaker 1: four percent. Oil trading at a six month high, as
Speaker 1: Goldman Sachs said the market moved into a deficit earlier
Speaker 1: than expected following supply disruptions in Nigeria along with an
Speaker 1: increase in demand. Will Kennedy covers oil for Bloomberg News
Speaker 1: in London. In the last few days, Nigeria has been
Speaker 1: the big story. We've seen a resurgance of violence in
Speaker 1: the Niger Delta, where rebels have always wanted to try
Speaker 1: and get more oil revenue out of the central government.
Speaker 1: Right now they've attacked several oil platforms throughout the vision.
Speaker 1: And that's not six hundred thousand piles at a straight
Speaker 1: out of the market taken Niga introduction to twenty a low,
Speaker 1: and remember that comes out of existing atoges in Canada,
Speaker 1: which is still trying to recover from the wildfire in
Speaker 1: Venezuela where the claps. The economy is having an impact,
Speaker 1: and right now crude oil up three and a half percent,
Speaker 1: closer to forty eight dollars now four hired by a
Speaker 1: dollar sixty three on West Texas Intermediate Delta Airlines will
Speaker 1: trim plan growth for the second half of this year
Speaker 1: and delay delivery of four jets as the carrier attempts
Speaker 1: to reverse a revenue decline that has extended more than
Speaker 1: a year. Delta shares up now by three and a
Speaker 1: half percent, Dow indust reels up one night eight, SMP
Speaker 1: up twenty two, and gold up a dollar eight e.
Speaker 1: Now let's look at other news from around the world.
Speaker 1: Thank you Charnie from the Bloomberg news room. I'm Sherry Anne.
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Speaker 1: Qute dealer today. Three Santa Monica, California police officers who
Speaker 1: responded to a deadly rampage at a community college are
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Speaker 1: of Valor today. President Obama spoke this morning at a
Speaker 1: ceremony at the White House. The public safety officers we
Speaker 1: recognized today with the Medal of Valor found courage. Not
Speaker 1: in search of recognition, they did it instinctively. In an
Speaker 1: interview on i t v S Good Morning Britain, Donald
Speaker 1: Trump was asked how he felt about the British Prime
Speaker 1: Minister's criticism of his call Front band on Muslims entering
Speaker 1: the US. Well, Number one, I'm not stupid, Okay, I
Speaker 1: can tell you that right now. Just the opposite number
Speaker 1: two in terms of divisive. I don't think I'm a
Speaker 1: divisive person. I'm a unifier. Unlike our president. Now, I'm
Speaker 1: a unifier. A cruise ship has docked in Galveston, Texas
Speaker 1: minus one of its passengers. Samantha Broberg, apparently fell overboard
Speaker 1: from the Carnival Liberty into the Gulf of Mexico early Friday.
Speaker 1: The Coast Guard called off the search after looking for
Speaker 1: the thirty three year old for more than twenty hours.
Speaker 1: Utilities and their labor unions are asking state lawmakers to
Speaker 1: make it a felony when anyone attacks utility workers. They
Speaker 1: say the legislation is necessary as a deterrent, particularly for
Speaker 1: those in the field restoring lost power who are on
Speaker 1: high risk of violence. Global News twenty four hours a day,
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Speaker 1: Bloomberg News Room, I'm sharing an Charlie, and we thank
Speaker 1: you and again recapping S and P five hundred index
Speaker 1: up twenty one points, a gain of one percent. I'm
Speaker 1: Charlie Pellett and that's a Bloomberg business flash. You're listening
Speaker 1: to Taking Stock with Kathleen Hays and Pim Fox on
Speaker 1: Bloomberg Radio. Welcome back to taking Stock. We're going to
Speaker 1: be looking now at an alternative wood decking company. If
Speaker 1: you've put in a new deck lately or tried your
Speaker 1: parent old when, I bet you're thinking, gee, I do
Speaker 1: didn't know this existed, or maybe wishing you'd given a look.
Speaker 1: Jim Klein is President and CEO of Treks. That's t
Speaker 1: R e X located Winchester, Virginia, joining us in our
Speaker 1: studio today. So Jim, welcome, thank you. So alternative wood decking.
Speaker 1: A lot of people have their you know, their pressure
Speaker 1: treated wood. They have their cedar. What is alternative would
Speaker 1: ducking like? Basically? It offers advantages that would can't offer. Uh,
Speaker 1: it requires significantly less maintenance and will last for over
Speaker 1: twenty five years. Is it more expensive? It's a little
Speaker 1: bit more expensive depending on the quality of product you buy.
Speaker 1: It will be about ten to twenty more than a
Speaker 1: pressure treated deck. What does it look like? Uh, it
Speaker 1: will It will look very similar to wood, but it
Speaker 1: is made from recycled paul ours is made from recycled
Speaker 1: polyethylene and sawdust. So the combination of those two give
Speaker 1: a fairly realistic would look to it? Now, just to
Speaker 1: go over the details, right, saw dust, wood palettes, wood chips,
Speaker 1: would fiber then also polyethylene. You just described you want
Speaker 1: to go after not just the market that you've got,
Speaker 1: You want to go after the market that includes the
Speaker 1: traditional all wood planking and decking material. Correct. Absolutely right,
Speaker 1: And and the reason we want to do that is
Speaker 1: eight percent of the lineal feet sold or would either
Speaker 1: pressure treated or hardwoods. Alternative wood products are only about
Speaker 1: six For every one percent we can move to alternative
Speaker 1: wood products, it's fifty million of additional sales to us.
Speaker 1: So you joined Tracks in two thousand eight as the
Speaker 1: CFO chief financial officer. You're now the president and CEO.
Speaker 1: What kind of background did you come from and what
Speaker 1: did you bring? What attracted you two Tracks? Well, prior
Speaker 1: to coming with Tracks, I had worked for the new
Speaker 1: CEO of Tracks for about twenty years, and so I
Speaker 1: had a fair amount of experience in finance. When UH
Speaker 1: the president slot opened up, I was offered the president
Speaker 1: slot of a division of Harscoe Corporation. UH worked there
Speaker 1: for two and a half years, culminated in a sale
Speaker 1: of that division. I found myself retired and I got
Speaker 1: a call from an old boss. He suggested maybe I
Speaker 1: might be interested in working as a CFO for him.
Speaker 1: Right now, what are we talking about? An annual run
Speaker 1: rate I believe of around four hundred and fifty million
Speaker 1: dollars something in that range. And what the net income
Speaker 1: of nearly sixty million? Uh? That's right. Our sales have
Speaker 1: been growing at an average compound growth over the last
Speaker 1: four years. About earnings, Eva daw about thirty. As far
Speaker 1: as the technology that goes into making this h can
Speaker 1: we call it a composite? Would that be accurate? Okay,
Speaker 1: You've got something special, which I believe has to do
Speaker 1: with having invented it at tracks. Does this mean it's
Speaker 1: patent protected? There's no patents on the product we manufacture.
Speaker 1: We are a recycled product. Our deck boards are recycled material.
Speaker 1: Waste polyethylene such as grocery bags, shopping bags, saw dust
Speaker 1: from cabinet and UH flooring manufacturers are combined to make
Speaker 1: our product. So you have longstanding relationships with some of
Speaker 1: the big national retailers like Walmart and Target. What is
Speaker 1: the ambition that you have to for Trecks? Do you
Speaker 1: want to grow? Do you want to get into different
Speaker 1: kinds of products? What are you know where? What's the
Speaker 1: what's your dream? What's your vision? Well, we certainly are
Speaker 1: have our roots UH in recycling, that was the origin
Speaker 1: of the company. But Trecks is a typical manufacturing company.
Speaker 1: We're trying to make the right kind of return for
Speaker 1: our shareholders. So to do that, we believe growth is
Speaker 1: a key component of that. One of the ways we
Speaker 1: get there is by converting people from wood products to
Speaker 1: what alternative products? Do you have any trouble finding skilled workers?
Speaker 1: You know? And and and how about this strong dollar?
Speaker 1: That kind of those kind of macro forces we talk
Speaker 1: about all the time on this show, especially for manufacturers. UH.
Speaker 1: Tricks has manufactured in the United States. We do have
Speaker 1: an international business. It's a little bit less than ten
Speaker 1: percent of our sales. Uh. Certainly that is created a
Speaker 1: head wind because it makes our products more expensive overseas.
Speaker 1: You also have the Transcend product line. Correct, this is
Speaker 1: uh something that you've introduced I guests over the last
Speaker 1: five or six years. Uh, that's correct. The Transcend product
Speaker 1: is a second generation product that offers a much more
Speaker 1: resilient product that requires dramatically less maintenance than any of
Speaker 1: the predecessing products. So uh, in terms of recycling, and
Speaker 1: this is saying that's with the company's roots. Uh, what
Speaker 1: are are you pleased? We haven't been in the industry
Speaker 1: for so long seeing what you're seeing there? Are we?
Speaker 1: Are we doing enough? We're moving enough in the right direction.
Speaker 1: I think we have a long way to go. If
Speaker 1: you look at the amount of waste poly ethylene that's recycled,
Speaker 1: it's a small percentage, So we could all do more
Speaker 1: in the recycling. A lot of people are are not
Speaker 1: as conscious as they should be with regard to going
Speaker 1: to recycling centers and depositing their plastics at recycling centers.
Speaker 1: Thank you very much for spending time with us. Jim
Speaker 1: Klein is the chief executive of Treks, a company. They
Speaker 1: are based in Winchester, Virginia. Thank you, thank you. Shares
Speaker 1: of Treks right now up thirty two cents or forty
Speaker 1: one eighty six cents. The stock is up a little
Speaker 1: bit more than ten percent so far this year. Coming
Speaker 1: up on taking stock, We're we're speaking with Brad McMillan,
Speaker 1: chief investment officer for Commonwealth Financial Network. Find out what
Speaker 1: you should do with your money. That's next right here,
Speaker 1: I'm Doomer Radio. Down day for you, as government bonds,
Speaker 1: as stocks move one percent higher across the board, what
Speaker 1: do you have to be on the lookout for this week?
Speaker 1: We're going to find out, coming up right now on
Speaker 1: Bloomberg Radio.