Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. I want to get
Speaker 1: to a NASDAK guest. Lauren Dillard joins us now. She's
Speaker 1: head of Intelligence investment Intelligence at at NASDAC, where she's
Speaker 1: an executive vice president. And Lauren, You've got a lot
Speaker 1: of great experience, including um working at the Carlisle Group.
Speaker 1: But you know, the the NASDAC name jumped out at
Speaker 1: me today because of UM, the rotation that we've been
Speaker 1: seeing lately and then the huge jump today. Do you
Speaker 1: have any thoughts on value versus growth, Nasdaq versus Dow,
Speaker 1: um Tech versus old economy. Well, first of all, thank
Speaker 1: you for having me, and I am am Apell, a
Speaker 1: time user and they joined the Nazack one hundred at
Speaker 1: the end of last year, so let's make sure we
Speaker 1: speak to that first. UM. Look, I think a couple
Speaker 1: of things, UM, what you're certainly seeing our investors expressing,
Speaker 1: you know, concerns around rates UM frankly, some uncertainty and
Speaker 1: moving maybe into more cyclical sectors that were out of favor.
Speaker 1: If you look back to March of last year, UM,
Speaker 1: the NAZAK composite has almost doubled. So UM. That was
Speaker 1: certainly an expression of a belief in what we would
Speaker 1: call the you know, the digital economy that people certainly
Speaker 1: believe in. NAZAC one hundred represents UM. We saw position
Speaker 1: degree brillion of influence. But I think what you're seeing
Speaker 1: now is is a broadening expression with some of the
Speaker 1: uncertainty that's going on. So, Lauren, one of the things
Speaker 1: we've really seen over the last twelve months, it's really
Speaker 1: been fascinating, has been the really the surge in specs UM.
Speaker 1: They you know, started out with a trickle and we've
Speaker 1: seen specs over the years, but it's been really a
Speaker 1: small part of the market. It's just exploded over the
Speaker 1: last twelve months. What do you make at it from
Speaker 1: your perspective at the NASDAC, Yeah, Um, you're exactly right.
Speaker 1: I think in two thousand fourteen we had a stat
Speaker 1: that they counted for about three percent of the deals
Speaker 1: and year to date, in one we have welcomed a
Speaker 1: hundred and forties six packs once the NAJAC. So UM,
Speaker 1: it's definitely, ah, you know, a significant way that UM
Speaker 1: people are accessing the public markets. I mean as a
Speaker 1: market provider, I think, you know, we saw several years
Speaker 1: and the States back of course too to my time
Speaker 1: at the Carlover where companies were staying private longer UM
Speaker 1: they were in the hands of private investors, and that
Speaker 1: was certainly a trend we were seeing. Now you're seeing
Speaker 1: companies accessing the public markets, whether it's via I p
Speaker 1: O s, whether it's via direct listings. And then of
Speaker 1: course back I think, of course there's an important sort
Speaker 1: of education UM market understanding underpinning that that is there
Speaker 1: by it UM. I I actually believe if you think
Speaker 1: about value creation UM for companies, that accessing the public
Speaker 1: market and allowing those companies to be in the hands
Speaker 1: of investors during more of the value creation is a
Speaker 1: long term a good thing. I think it's theoretically to
Speaker 1: me it's so cool because it's like the democratization of
Speaker 1: earlier stage investing, or it's someone called it a poor
Speaker 1: man's UM pe uh you know, I'm not going to
Speaker 1: be able to get into a private equity deal. I'm
Speaker 1: not a sophisticated investors, so I think it'd be sweet
Speaker 1: to take a shot at a couple hundred of a spack.
Speaker 1: The thing is, Um, it's it's gone beyond Haywire at
Speaker 1: this point. I mean, there's a company called just another
Speaker 1: acquisition corps Um. The numbers that you named already, Laura, Laura,
Speaker 1: are are huge. And you know C C I V,
Speaker 1: for example, trading at like seventy dollars um for a
Speaker 1: while and then dropped like sixty the deal was announced
Speaker 1: with Lucid. Isn't this a problem for retail investors? I mean,
Speaker 1: aren't they getting in a little too deep? I mean,
Speaker 1: I think it goes back to market education. It will
Speaker 1: be interesting to see what our regulators decided to look
Speaker 1: at their obviously looking at some of the trends going
Speaker 1: on with lit markets, um with intelligent ticks if you
Speaker 1: want to get into some of the market structure. So
Speaker 1: you know, the regulators will have to decide where to look. Again. Um,
Speaker 1: I think you're probably right. There's a fine line between
Speaker 1: accessing the public market, which is a good thing. I
Speaker 1: mean our whole belief at Nasadak is championing inclusive growth
Speaker 1: and prosperity. So it aligns with market access, and it
Speaker 1: aligns with getting value creation into the hands of investors.
Speaker 1: But they are they are riskier and people have to
Speaker 1: understand their rights. Lauren, what's the outlook for I p
Speaker 1: O S in one. It looks like, um, you know,
Speaker 1: the stock markets at a near all time highs seems
Speaker 1: and we have an economy reopening. Seems like conditions will
Speaker 1: look pretty good. Yeah, the pipeline is incredible, really strong.
Speaker 1: Um And already, frankly, have we've seen more companies UM.
Speaker 1: I think it's a hundred and forty eight and I'm
Speaker 1: quoting that number UM Access actually the public the public
Speaker 1: markets year to date, so it's we've already are seeing that.
Speaker 1: I think that's a good thing. Again, going back to investors,
Speaker 1: UM And and certainly you would argue the window is
Speaker 1: open and we still have a strong pipeline. UM. I
Speaker 1: just want to quickly ask you about trading. What are
Speaker 1: your thoughts on the whole pay for order flow situation?
Speaker 1: Since we're talking about this already, might as well get
Speaker 1: get into it. UM. You're a market provider. This touches
Speaker 1: obviously everything that you do, UM does. Does that worry
Speaker 1: you or do you think we're going to be able
Speaker 1: to find a decent solution to it? So I mean,
Speaker 1: as a capital markets operator, we believe obviously in fair
Speaker 1: and open markets and form all market participants. So we
Speaker 1: have been saying that the rise of the retail investor
Speaker 1: participating in our markets is a good thing UM, and
Speaker 1: it's certainly reflected in UM in the numbers we've seen
Speaker 1: and frankly, in a time if you look back from
Speaker 1: a year from now, the volumes of that have that
Speaker 1: have transacted on the markets between equities and options, it's
Speaker 1: extraordinary and we as a market provider are very frankly
Speaker 1: proud of that resiliency. UM. It's something we've invested in
Speaker 1: as you look forward for retail, for retail trading and
Speaker 1: the discussions that the the SEC and SENERA are looking at.
Speaker 1: You know, we've engaged with our regulators for close to
Speaker 1: two decades on you know, very arguably esoteric but really
Speaker 1: important market structure concepts, having lip markets, having price discovery UM.
Speaker 1: We're obviously subject to regulatory oversight. UM Intelligent tixs you
Speaker 1: heard in the SEC discussions around tick sizes, um and
Speaker 1: all of that is with with the lens of making
Speaker 1: you know, price discovery. Financial markets serve all investors, including
Speaker 1: retail investors, so without into the nuances of payment for
Speaker 1: order flows. I think broadly speaking, we as a capital
Speaker 1: markets provider want there to be fair and transparent markets.
Speaker 1: We would like these investors to stay in the market
Speaker 1: long term. I think that's very important to us. Hey, Lauren,
Speaker 1: thanks so much for joining us. We appreciate it. We
Speaker 1: always like speaking to smart people that come out of
Speaker 1: the Robin School of Business at the University of Richmond,
Speaker 1: my alumn I'm an alumnus there, so it's great to
Speaker 1: speak with you. Lauren. Lauren is the e d P
Speaker 1: Head of Investment Intelligence at the NASTAC Private What a
Speaker 1: cool title. What a cool I mean, what that's an
Speaker 1: awesome title. I'd love to have that, But also what
Speaker 1: a cool career. I mean she managed more than thirty
Speaker 1: billion dollars in assets across six international offices at the
Speaker 1: Carlisle Group, which is already an incredible name, and then
Speaker 1: moving on to Nasdaq, which is kind of the you know,
Speaker 1: the modern story of equity markets. I mean, the old
Speaker 1: stuff is like old. And you know I was talking
Speaker 1: about the Dow Jones Industrial Index earlier. The kids don't
Speaker 1: even don't even talk about that. John Farrell, Yeah, you
Speaker 1: can't talk about you can't quote the down joys industrials
Speaker 1: to John Ferrey gets all upset. So we'll have more
Speaker 1: coming up. This is Bloomberg, all right, Matt Miller. I'm
Speaker 1: gonna tell you one of my bucket list items which
Speaker 1: you probably wouldn't guess, and that is to take a
Speaker 1: trip on one of those big ocean going cargo ships,
Speaker 1: you know, the ones to see out there on the
Speaker 1: ocean with a container ships stacked like twenty high. I
Speaker 1: have no idea how those things float, how they don't
Speaker 1: tip over, how the cargo doesn't fall into the sea.
Speaker 1: But maybe our next guest can help me hit your
Speaker 1: ride there. Gary Vogel, CEO and director of Eagle Bulk Shipping.
Speaker 1: They're based at Stanford, Connecticut. Boy, it's a public company
Speaker 1: trades on the nastac on aner the symbol e g
Speaker 1: l E. The stocks had a great run as economy
Speaker 1: start to open up, up eighty six percent year to date,
Speaker 1: up eleven percent over the trailing twelve months. Gary, thanks
Speaker 1: so much for joining us here. Boy. When we talk
Speaker 1: to you, Gary, we get a great, great bird's eye
Speaker 1: view of the global economy. What can you tell us
Speaker 1: about global shipping and what that's what that's telling you
Speaker 1: about the global reopening? Yeah, well, as you said, it's
Speaker 1: it's really is about this UM. This reopening, I mean
Speaker 1: was severely impacted. It was a tale of two halves
Speaker 1: the first half of the year, a real UM a
Speaker 1: real demand shock. Uh. You know, dry bulk is highly
Speaker 1: correlated to global GDP. We actually don't carry containers. Are
Speaker 1: ships carry you know, bulk cargoes commodities such as grain, minerals, cement,
Speaker 1: and fertilizer. But but really you know, building building products
Speaker 1: if you will, for the global economy. And so, but
Speaker 1: what we've seen is by the fourth quarter UM a
Speaker 1: real return and many many of our commodities to pre
Speaker 1: COVID levels. And uh, that's that's also continued to into
Speaker 1: the first quarter. And that's also on the back of
Speaker 1: what's been fairly muted supply growth as well. On terms
Speaker 1: of ships. So, but these are ships that I mean,
Speaker 1: you send them a long way, right, they go all
Speaker 1: the way around the world. Um not just like from
Speaker 1: uh Charlotte too. I don't know absolutely do you ever
Speaker 1: have stowaways or do you Is there a way for
Speaker 1: Paul to to just buy a ticket and take a
Speaker 1: ride from like the Horn of Africa to I don't know,
Speaker 1: Um Australia, is that is that a possibility? Well, we
Speaker 1: we don't. We don't take passengers. They're they're on occasion.
Speaker 1: There are issues with stowaways, but but the industry deals
Speaker 1: with that. But we don't take passengers on board our
Speaker 1: ships now, so sorry about that. Gary. You know, one
Speaker 1: of the things we've seen, and again I'm really fascinated
Speaker 1: by the global shipping business in the big ships that
Speaker 1: you guys operate. Uh, but I've seen, you know a
Speaker 1: lot of stories over the past a month or two
Speaker 1: about ships having a hard time unloading their goods in
Speaker 1: various ports around the world, perhaps due in part two,
Speaker 1: you know, that just aren't enough workers there, maybe due
Speaker 1: to COVID to to you know, unload things and load things.
Speaker 1: And what are you finding in that regard? Yeah, I
Speaker 1: think what you're speaking to again is the headline has
Speaker 1: been about the container industry and and and significant congestion.
Speaker 1: You fortunately dry balk we go to different terminals, and
Speaker 1: notwithstanding certain areas of congestion, in general, UM the trade
Speaker 1: flows have been fairly normal, and so we've been able
Speaker 1: to to meet demand, increase demand, and and and get
Speaker 1: cargoes on and off ships. Now with the exception really
Speaker 1: of the second quarter into the third quarter of last year,
Speaker 1: as as countries you know, send people home to stop
Speaker 1: the spread of COVID nineteen. But we're really operating, you know,
Speaker 1: quite efficiently. Now. You know, one of the one of
Speaker 1: the challenges last year, which if I can take a moment,
Speaker 1: it was the humanitarian crisis of trying to repatriate our seafarers,
Speaker 1: our crew on board the ship. We typically work about
Speaker 1: six months, and as countries enacted these trade travel restrictions
Speaker 1: excuse me, um, you know, these people were unable to
Speaker 1: get home and and so there's been a real push
Speaker 1: within the industry. We were fortunately able to to you know,
Speaker 1: UM return to normal by by November, and the industry
Speaker 1: is focused on it now to ensure that doesn't happen again.
Speaker 1: But that was probably the biggest challenge we faced as
Speaker 1: an industry last year. Terrifying. Actually, there's a Bloomberg Business
Speaker 1: Week story about not shipping employees, but cruise employees that
Speaker 1: faced really traumatic conditions. UM. Glad that's over for for
Speaker 1: your people, Gary, and that the um that the industry
Speaker 1: seems so healthy right now. I wonder what the biggest
Speaker 1: concern is going forward? What are the headwinds so to speak?
Speaker 1: There's literally no pun intended. But is fueling an issue?
Speaker 1: Is the greening of the earth a problem? Or is
Speaker 1: the way you can is there a good way you
Speaker 1: can work with that? Yeah? So a few things to unpack.
Speaker 1: Their one is um, you know that the the you know,
Speaker 1: challenge for for shipping rates historically has been an oversupply
Speaker 1: of tonnage. In fact, dry boat demand has grown in
Speaker 1: eighteen of the last twenty years, the two out hours
Speaker 1: being the financial crisis and last year COVID, So we
Speaker 1: haven't had a demand issue. It's really as I mentioned,
Speaker 1: linked to global GDP growth, So supply we've had an oversupply,
Speaker 1: but at the moment, supply of ships is actually at
Speaker 1: a twenty five year low at just six percent of
Speaker 1: the of the on the water fleet. So I think
Speaker 1: that boads very well as you have you know, demand
Speaker 1: and GDP growth coming back with a limited amount of
Speaker 1: ships supply coming in and you mentioned the greening. I mean,
Speaker 1: you know, emissions reduction and decarbonization is on the forefront
Speaker 1: of all the discussions within shipping and and dry bulk
Speaker 1: is no exception. And and as as we are looking
Speaker 1: towards zero emission vessels to get to the I m
Speaker 1: O targets of a reduction of fifty by fifty and
Speaker 1: so because of that uncertainty about what future regulations will
Speaker 1: mean is also uh, you know, a reduction of ordering
Speaker 1: because of that uncertainty. Right, It's it's an impediment to
Speaker 1: ordering because you simply don't know how long the vessel
Speaker 1: you order today will actually be allowed to trade due
Speaker 1: to emissions regulations. All right, It's really interesting and we
Speaker 1: could do that's another thing. We could do a whole
Speaker 1: show on right now. And I talk so in go.
Speaker 1: I talked to a lot um up here well up
Speaker 1: in Copenhagen, and he talks a lot about the fuel
Speaker 1: issue as well. Gary. It's been great to have you
Speaker 1: on the program. Thanks very much. It's a bummer that
Speaker 1: you don't even let a few people travel as passengers,
Speaker 1: because I know, Paul, it's not just your dream a
Speaker 1: lot of people want to get on a shipping, a
Speaker 1: container ship or a dry good ship and and take
Speaker 1: a long trip, maybe as a stowaway. It's a little
Speaker 1: bit easier, Gary Vogel there from Eagle bulk Shipping. Let's
Speaker 1: get back to the markets, because, of course Greg was
Speaker 1: talking about the rally that we're seeing in equities and
Speaker 1: not the chicken sandwich maker. David Dietz joins us right now.
Speaker 1: He's managing principal and senior portfolio strategist at Peapack Private
Speaker 1: Wealth Management. David, Um, I I wonder when I look
Speaker 1: at this, and I've been asking all of our guests today,
Speaker 1: um is the rotation that we saw, kind of a
Speaker 1: surprised rotation over from UM from growth to value as
Speaker 1: we see the NASDAC today rally and dow UM not
Speaker 1: doing nearly as well well. Certainly, UM, what's been driving
Speaker 1: the tune tune here is this rapid rising interest rates
Speaker 1: from the start of the year with the tenure treasury
Speaker 1: below one percent, got up uh close to about one
Speaker 1: point six percent, and that did feed this huge rotation
Speaker 1: into stocks that will do well with the economic reopening.
Speaker 1: UM banks of course can loan money at higher rates. UH,
Speaker 1: some of this uptick and interest rates is due to
Speaker 1: inflationary fears, and so commodities, energy industrial is doing well.
Speaker 1: And of course they rotated out of the NAZDAC the
Speaker 1: David territory yesday, David today. Of course it's going the
Speaker 1: other way around, David. Doesn't that march higher for rates?
Speaker 1: Doesn't it have a lot further to go? I mean,
Speaker 1: I've talked to a few people who are real outliers.
Speaker 1: Scott Minored, for example, thinks the tenure could go negative.
Speaker 1: But most other people are saying, look, with the incredible
Speaker 1: growth ahead of us. Bloomberg Economics UM did a survey
Speaker 1: UH and found seven point six percent expectation in nominal
Speaker 1: GDP growth, then rates have to keep going higher from here.
Speaker 1: You know. I tell my clients that said, there's only
Speaker 1: one thing more difficult than predicting the direction of the
Speaker 1: stock market, and that's predicting the direction of interest rates.
Speaker 1: But I'll tell you this, If the vaccine rollout continues
Speaker 1: to march along well, if the stimulus is well distributed
Speaker 1: and we see another infrastructure bill coming down the pike,
Speaker 1: If UM, the Federal Reserve does not try and somehow
Speaker 1: captorizing interest rates. If consumer confidence continues to go in
Speaker 1: the right direction, I do think there will be a
Speaker 1: normalization of the economy. That will mean a normalization of
Speaker 1: interest rates. Remember in two thousand nineteen interest rates range
Speaker 1: between two point eight and one eight. Why wouldn't they
Speaker 1: go back to those levels? So I think that's the
Speaker 1: path of least resistance, all right, given that bullish background, David,
Speaker 1: what are some of the names you like right here
Speaker 1: that you guys are working on. Yeah. Absolutely, So you've
Speaker 1: got to stay with tech. We've got the long term
Speaker 1: themes um uh tail winds for increase use of technology.
Speaker 1: We've heard about the chip shortage. So I want to
Speaker 1: go with the number one chip producer in the world,
Speaker 1: which is Intel. And what I like about Intel it
Speaker 1: has a cyclical twist to it because it's the chip manufacturer.
Speaker 1: It also has a value twist to it because of
Speaker 1: its valuation. You've got a too, almost two and a
Speaker 1: half percent dividend you're creating about twelve times earnings, is
Speaker 1: the largest in the world. And also it allows you
Speaker 1: for participation in for example, artificial intelligence, autonomous driving, uh,
Speaker 1: the movement to the cloud, and so you kind of
Speaker 1: have your best of both worlds. You've got the tech exposure,
Speaker 1: plus you've got your you know, your value exposure, which
Speaker 1: I think it's going to do well this year. I
Speaker 1: think I heard you mentioned the word infrastructure, and for
Speaker 1: me this is one of the most exciting things about
Speaker 1: the not too distant future. We all know the two
Speaker 1: trillion dollar fiscal stimulus package is going to be uh,
Speaker 1: we're we're likely to see it past in the next
Speaker 1: few days. But for me, even more exciting is thinking
Speaker 1: about what President Biden will do in terms of stimulus
Speaker 1: spending or infrastructure spending. What do you expects there? So,
Speaker 1: you know, I think that you know, once they notch
Speaker 1: this early win in the Biden administration under their belt
Speaker 1: with the near two trillion regular stimulus, I think they
Speaker 1: are going to push ahead and get something in infrastructure.
Speaker 1: What I think is going to be interesting here is
Speaker 1: there's not just gonna be bridges, tunnels, and roads. I
Speaker 1: think it's also going to include, um, you know, the
Speaker 1: expansion of the Internet to those who have less access
Speaker 1: to it. So my stock for my clients here for
Speaker 1: that is Verizon. Now, Verizon is the stock that still
Speaker 1: hasn't come back to where it was in late ninety nineties.
Speaker 1: But if you're talking about five G, Verizon is your play.
Speaker 1: They've just spent big time to get more spectrum um
Speaker 1: there by far the best wireless service out there, and
Speaker 1: so I think that you know, uh, with your four
Speaker 1: and a half percent divedn about twelve times, earning the
Speaker 1: Horizon is a low risk way to play expansion of
Speaker 1: the Internet that could be fueled by an infrastructure package.
Speaker 1: About thirty seconds, I know, fightsers on your list, has
Speaker 1: this been a pre pandemic players? Is this your play
Speaker 1: on their their vaccine? Yeah? You know, I think it's both.
Speaker 1: So the stuck ran up to about forty three on
Speaker 1: the excitement of being the first to get the emergency
Speaker 1: use authorization from the FDA up there, and now it's
Speaker 1: back down to thirty four. Why is that because there's
Speaker 1: two reasons. One is, if we have this big economic expansion,
Speaker 1: what does that do to healthcare? Do people use more drugs?
Speaker 1: Probably not. Second, there is still concerned as to whether
Speaker 1: heavy handed legislation comes out of Washington, but I think
Speaker 1: that's well priced into the stock. Remember, healthcare is the
Speaker 1: other growth sector. You've got about a four and a
Speaker 1: half percent dividend on fires about thirteen fourteen times earnings,
Speaker 1: the best d pipeline, and also great exposure overseas who
Speaker 1: wanted the same kind of deluxe health care that we have.
Speaker 1: So I think this is a nice way to participate
Speaker 1: in continued growth in the stock market without taking a
Speaker 1: whole lot of risk. Hey, David, thanks so much. We
Speaker 1: really appreciate it. As always, nobody pitches a name better
Speaker 1: than David Deeds. He gets it all out there in
Speaker 1: twenty to thirty seconds. Nobody does it better David Deed's
Speaker 1: managing principle. And see your portfolio strategist at Pepack Private
Speaker 1: Wealth Management in Lovely Summit, New Jersey. Let's take a
Speaker 1: look at the auto business. Man, I know you're a big,
Speaker 1: big auto van gear head. Let's take a look at
Speaker 1: the car parts business. There's nobody better to do that
Speaker 1: with than Left Peaker. He's the CEO of car Parts
Speaker 1: dot Com. Love thanks so much for joining us here.
Speaker 1: We're Matt and I were just looking at the five
Speaker 1: year chart for your stock again. The symbol is PRTs
Speaker 1: Trades on NASDAK. It was kind of just, you know,
Speaker 1: almost a penny stock. Therefore, we're looking at the five
Speaker 1: year chart until you know kind of you know, kind
Speaker 1: of March of last year, and then it just exploded.
Speaker 1: Is this a pandemic play? Is that what your stock
Speaker 1: has become? Yeah, that's a common misconception. I think you know,
Speaker 1: the business wasn't really going anywhere for a long time. Um.
Speaker 1: You know, the company has been public since two thousand eight. Uh,
Speaker 1: didn't really grow for twelve years, and then an entirely
Speaker 1: new management team came in. UM I started in January
Speaker 1: of two thousand nineteen, and we executed a great turnaround
Speaker 1: plan focusing on solving a customer problem. And uh, last
Speaker 1: quarter alone, we grew nine For the full year, we
Speaker 1: grew fifty two fifty million, and so you know, we're
Speaker 1: we're executing really well. I'm really proud of the way
Speaker 1: the team is executing right now. And uh, wait, way
Speaker 1: beyond the pandemic now. But I mean, it can't be
Speaker 1: just a coincidence that your stock is trading for like
Speaker 1: two or three bucks for four years. I mean it's
Speaker 1: fair to say that you executed on a plan to
Speaker 1: even double revenue, but in March of you go from
Speaker 1: like a dollar thirty seven to more than twenty dollars
Speaker 1: a share. UM, that's gotta be more, have more to
Speaker 1: do with something else than just doubling revenue, right, I mean,
Speaker 1: what's your outlook? Yeah, so we just released a long
Speaker 1: term model UM, and what we believe is that we
Speaker 1: can grow at er over over the long term. We
Speaker 1: also believe that we can achieve the dumb margins, and
Speaker 1: so we have a really bright outlook. We're only limited
Speaker 1: by the inventory that we have. Uh, there's no no
Speaker 1: demand issues at all. Demand is really strong and so
Speaker 1: UM by positioning the inventory closer to the customer, we
Speaker 1: believe we can disrupt an industry where business has really
Speaker 1: been done the same way for the last shift. Now,
Speaker 1: are you're talking about the parts? Are you talking about
Speaker 1: the parts industry or electric car UM industry? Because I
Speaker 1: know you're starting an e v UM UH plug in
Speaker 1: hybrid hub as well to sell whole cars, right, correct,
Speaker 1: not to sell whole cars. You know, we're really focused
Speaker 1: on UH selling parts UM and so for us, disrupting
Speaker 1: industry means you know, selling selling more parts. I am
Speaker 1: going against the likes of Auto Zone and advances and
Speaker 1: so yeah, yeah, well for evs as well, of the
Speaker 1: parts that we sell our power train agnostic and so
Speaker 1: you know, the NYV vehicle has the same will hubs
Speaker 1: and shots and struts and control arms, um and bumper
Speaker 1: covers and mirrors. So a lot of the parts are
Speaker 1: really agnostic to the power train. And so we're just
Speaker 1: focused on solving the customer problem and getting them back
Speaker 1: on their oath. Uh, let's talk to us about the
Speaker 1: competitive position here. You mentioned a couple of your competitors.
Speaker 1: Where does car parts dot Com stand in terms of
Speaker 1: market share in this business and kind of what you're
Speaker 1: your goals and aspirations. Yeah, so this is a really
Speaker 1: large industry um billion dollars um. We're a tiny company
Speaker 1: with only half a billion in revenue. And so you know,
Speaker 1: we think that by getting closer to the customer and
Speaker 1: we have a unique value proposition and that we get
Speaker 1: the parts from the factory, will put them in our
Speaker 1: distribution centers, and we'll ship them straight to the customers.
Speaker 1: So by cutting out all the middleman, we're able to
Speaker 1: pass on a lot of the savings to the customers.
Speaker 1: So most of our parts are you know, fifty to
Speaker 1: sevent cheaper than you will buy them at your local
Speaker 1: advance or AutoZone store, and so that's how we believe
Speaker 1: we can win by passing on a lot of the
Speaker 1: savings to the consumer and cutting out all the middlemen.
Speaker 1: Are you do you think that your customers are going
Speaker 1: to increase in number due to the pandemic in any way?
Speaker 1: I mean the idea that people won't want to ride
Speaker 1: the subway anymore or buses, They're gonna want to buy cars,
Speaker 1: and maybe the used car market is a huge part
Speaker 1: of that. Is that part of your plan that is correct.
Speaker 1: So a few tailwinds here. One is that you know,
Speaker 1: more people will be relying on personal mobility. Uh, there's
Speaker 1: going to be more used cars on the road. Um. Additionally,
Speaker 1: it's not good for cars to be parked for a
Speaker 1: while and driven, then parked for a whild and driven again.
Speaker 1: A lot of the rubber gaskets and things like that breakdown.
Speaker 1: People have been delaying some of the maintenance because they
Speaker 1: haven't been driving as much. UM. So all of these
Speaker 1: are tailwinds because eventually, you know, cars start breaking down.
Speaker 1: And there are a lot of cars on the road today,
Speaker 1: about two days seven million in the US UM and
Speaker 1: the average age of the vehicle is about twelve years,
Speaker 1: So a lot of old cars on the road. This
Speaker 1: is great for us. By the way, you used to
Speaker 1: be at RAMA, which if people don't know the U,
Speaker 1: the A V space and cameras, it's huge. So what
Speaker 1: are you bringing from Adderrama to car Parts? I say,
Speaker 1: get just a relentless focus on on the customer. And uh.
Speaker 1: You know, electronics is a tough space to be in
Speaker 1: because margins are so low, and so you have to
Speaker 1: find a way to differentiate yourself from all the other competitors.
Speaker 1: You know, Buz, Buy, Amazon, you have some some big
Speaker 1: guys in the electronic space. And so at the ROAMA
Speaker 1: we did that by focusing on the customer and solving
Speaker 1: our customers customer problem. That's what we're doing here as well.
Speaker 1: All right, love great talking you love peaker there um
Speaker 1: coming to us from car Parks dot com. Uh, and
Speaker 1: what an interesting story. The stock has jumped more than
Speaker 1: I guess tenfill over the last year. Thanks for listening
Speaker 1: to the Bloomberg Markets podcast. You can subscribe and listen
Speaker 1: to interviews with Apple Podcasts or whatever podcast platform you prefer.
Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller three,
Speaker 1: Opole Sweeney, I'm on Twitter at pt Sweeney. Before the
Speaker 1: podcast You Can Oh catches worldwide at Bloomberg Radient m