1 00:00:02,640 --> 00:00:05,320 Speaker 1: Welcome to the Bloomberg Penl podcast. I'm Paul swing you, 2 00:00:05,360 --> 00:00:07,680 Speaker 1: along with my co host Lisa Brahma wits. Each day 3 00:00:07,720 --> 00:00:10,240 Speaker 1: we bring you the most noteworthy and useful interviews for 4 00:00:10,280 --> 00:00:12,520 Speaker 1: you and your money, whether at the grocery store or 5 00:00:12,560 --> 00:00:15,480 Speaker 1: the trading floor. Find a Bloomberg Penl podcast on Apple 6 00:00:15,520 --> 00:00:17,959 Speaker 1: podcast or wherever you listen to podcasts, as well as 7 00:00:17,960 --> 00:00:21,520 Speaker 1: at Bloomberg dot com. Well, retail sales came in this 8 00:00:21,600 --> 00:00:24,959 Speaker 1: morning a little bit better than expected. January came in 9 00:00:25,000 --> 00:00:28,080 Speaker 1: at plus zero point two percent. The consensus was flat 10 00:00:28,160 --> 00:00:31,560 Speaker 1: zero point zero percent. That's certainly an improvement from December 11 00:00:31,560 --> 00:00:34,080 Speaker 1: when that number came in at minus one point six percent. 12 00:00:34,200 --> 00:00:36,000 Speaker 1: So to help us dig into the retail sales and 13 00:00:36,120 --> 00:00:38,800 Speaker 1: all things retail, we're still in retail eLearn experiod, believe 14 00:00:38,880 --> 00:00:40,760 Speaker 1: or not, I would bring in our friend Sema shaw 15 00:00:40,800 --> 00:00:43,640 Speaker 1: seem as a consumer analyst for Bloomberg Intelligence. She joins 16 00:00:43,720 --> 00:00:47,680 Speaker 1: us here in our Bloomberg Interactor Broker studio. So, Seema, welcome, Um. 17 00:00:47,720 --> 00:00:49,599 Speaker 1: What did you see in the retail report that came 18 00:00:49,600 --> 00:00:51,360 Speaker 1: out this morning. I'm the biggest thing was that you 19 00:00:51,400 --> 00:00:54,200 Speaker 1: mentioned that was December was revised down forty bases point 20 00:00:54,280 --> 00:00:56,640 Speaker 1: to minus one point six. So we've already heard from 21 00:00:56,640 --> 00:00:59,080 Speaker 1: the retailers that are reported that December was really bad. 22 00:00:59,120 --> 00:01:02,360 Speaker 1: We had two weeks at the government shutdown. January did 23 00:01:02,400 --> 00:01:04,800 Speaker 1: beat expectations, but I don't know that it's that good, 24 00:01:04,840 --> 00:01:07,360 Speaker 1: considering December was revised down, so there might have been 25 00:01:07,400 --> 00:01:11,960 Speaker 1: some pent up demand and big categories continued to be weak. Furniture, 26 00:01:12,040 --> 00:01:15,800 Speaker 1: autos Um sima. What would you say to people who 27 00:01:15,880 --> 00:01:19,080 Speaker 1: say that these numbers are backward looking and don't really 28 00:01:19,080 --> 00:01:22,679 Speaker 1: tell us anything that we don't know, um, particularly in 29 00:01:22,720 --> 00:01:24,520 Speaker 1: this case where we're two months behind. I would say 30 00:01:24,560 --> 00:01:28,120 Speaker 1: that's absolutely true. Um. But I'm still surprised that people 31 00:01:28,160 --> 00:01:31,600 Speaker 1: are surprised about the the way the numbers are going, 32 00:01:31,640 --> 00:01:34,200 Speaker 1: because if you've listened to any of the calls, December 33 00:01:34,360 --> 00:01:36,760 Speaker 1: was really bad across the board. Okay, so was it 34 00:01:36,880 --> 00:01:39,600 Speaker 1: just December or do you get the sense that there 35 00:01:39,680 --> 00:01:43,600 Speaker 1: is something sort of deeper here, a weakness that could 36 00:01:43,680 --> 00:01:46,920 Speaker 1: be seen throughout the year. Um? Definitely, I think there 37 00:01:46,959 --> 00:01:49,880 Speaker 1: could be, because we're seeing a slowdown in the housing market. 38 00:01:49,920 --> 00:01:52,720 Speaker 1: That doesn't necessarily affect home depot and low so much 39 00:01:52,720 --> 00:01:55,120 Speaker 1: as their focus on renovation. But again, if the house 40 00:01:55,360 --> 00:01:58,680 Speaker 1: home price appreciation seems to plateau, people might be less 41 00:01:59,240 --> 00:02:01,720 Speaker 1: inclined to a wealthy same with the stock market. And 42 00:02:01,760 --> 00:02:05,120 Speaker 1: I'd also say that, um, the fact that tax refunds 43 00:02:05,120 --> 00:02:08,560 Speaker 1: are expected to be lower than they were and delayed, 44 00:02:08,600 --> 00:02:10,919 Speaker 1: I think that could especially hit the low end where 45 00:02:11,280 --> 00:02:14,600 Speaker 1: that little bit of money spending. Lisa what I like 46 00:02:14,639 --> 00:02:17,240 Speaker 1: about seem as researches. I think she's consistently had a 47 00:02:17,240 --> 00:02:19,880 Speaker 1: more conservative call on the consumer than you what your 48 00:02:19,919 --> 00:02:21,600 Speaker 1: read out on the street, and that's a It's a 49 00:02:21,600 --> 00:02:23,480 Speaker 1: great way to balance kind of what we're seeing out there. 50 00:02:23,680 --> 00:02:26,840 Speaker 1: So seem we're you're always an earning season. It seems 51 00:02:26,880 --> 00:02:28,520 Speaker 1: like your companies are always kind of reporting you have 52 00:02:28,520 --> 00:02:31,480 Speaker 1: a strange schedule, but you you're through the majority of them. 53 00:02:31,480 --> 00:02:34,200 Speaker 1: What did you take away from this quarters results? And 54 00:02:34,240 --> 00:02:36,400 Speaker 1: maybe more importantly, kind of what the tone of the 55 00:02:36,400 --> 00:02:38,519 Speaker 1: outlook is for a lot of these folks, right, I 56 00:02:38,520 --> 00:02:41,480 Speaker 1: would say across the board, if you exclude the math 57 00:02:41,560 --> 00:02:43,400 Speaker 1: guys who really took the bulk of the share over 58 00:02:43,480 --> 00:02:47,079 Speaker 1: holiday and continue to seem very bullish, I would say 59 00:02:47,080 --> 00:02:50,560 Speaker 1: the bulk of the retailers, from department stores, even to 60 00:02:50,840 --> 00:02:53,960 Speaker 1: some like home deep and those they had more tempered 61 00:02:54,040 --> 00:02:57,119 Speaker 1: feeling about what's coming going forward. I think that even 62 00:02:57,160 --> 00:02:59,480 Speaker 1: the home centers, while they're bullish, it's certainly not as 63 00:02:59,480 --> 00:03:01,839 Speaker 1: strong as it was last year. And I think you're 64 00:03:01,840 --> 00:03:05,240 Speaker 1: seeing for the department stores and sort of those other 65 00:03:05,440 --> 00:03:09,799 Speaker 1: specialty retailers, competition continues to pressure them. So I guess 66 00:03:09,960 --> 00:03:14,000 Speaker 1: I'm wondering with the breakdown of online versus brick and mortar, 67 00:03:14,160 --> 00:03:17,400 Speaker 1: if you're seeing the bifurcation continue to increase, or whether 68 00:03:17,400 --> 00:03:20,760 Speaker 1: you're seeing stabilization, in other words, some sort of uh, 69 00:03:20,800 --> 00:03:23,760 Speaker 1: you know, gains being made among the healthiest of the 70 00:03:23,800 --> 00:03:26,600 Speaker 1: brick and mortar, and you know, a stabilization in the 71 00:03:26,720 --> 00:03:30,079 Speaker 1: rate of the right of the increase in online use. Well, 72 00:03:30,120 --> 00:03:33,400 Speaker 1: online news does continue to go grow rapidly, but the 73 00:03:33,400 --> 00:03:36,560 Speaker 1: ones that haven't established and I guess I would say 74 00:03:36,560 --> 00:03:39,400 Speaker 1: a good infrastructure in their store base are the ones 75 00:03:39,440 --> 00:03:41,480 Speaker 1: that are saying the biggest gains because they're able to 76 00:03:41,600 --> 00:03:45,080 Speaker 1: have buy online, pickup in store, and other different fulfillment 77 00:03:45,120 --> 00:03:47,760 Speaker 1: services that could help mitigate the gross margin pressure from 78 00:03:47,840 --> 00:03:50,600 Speaker 1: online growth. But I still think that online as a 79 00:03:50,600 --> 00:03:53,440 Speaker 1: whole in mobile commerce continues to grow, but it's still 80 00:03:53,480 --> 00:03:55,680 Speaker 1: again as we said that less than mid teens percentage 81 00:03:55,680 --> 00:03:58,120 Speaker 1: of allive retail. It's interesting. It's so when you think 82 00:03:58,120 --> 00:04:00,840 Speaker 1: about the Amazon of the world, how much have they 83 00:04:00,880 --> 00:04:04,200 Speaker 1: gone into how much of their business is apparel versus 84 00:04:04,280 --> 00:04:07,360 Speaker 1: just buying gadgets and stuff? Right, I think they're increasing. 85 00:04:07,400 --> 00:04:10,040 Speaker 1: I certainly know that they're increasing their apparel assortment. I 86 00:04:10,080 --> 00:04:12,840 Speaker 1: mean there's been different players who have sized it, but 87 00:04:12,880 --> 00:04:16,520 Speaker 1: they are going I think into more basics. Um. But again, 88 00:04:16,600 --> 00:04:19,360 Speaker 1: the risk to brands when Amazon brings into private label, 89 00:04:19,400 --> 00:04:21,280 Speaker 1: and my view is that they have the placement, they 90 00:04:21,279 --> 00:04:23,880 Speaker 1: can put their brands top of mind and you see 91 00:04:23,880 --> 00:04:26,359 Speaker 1: that also. I think with like supplement and they have 92 00:04:26,400 --> 00:04:29,240 Speaker 1: private label across the board. So I think that's a risk. 93 00:04:29,279 --> 00:04:31,120 Speaker 1: I don't think for the high end are really branded 94 00:04:31,120 --> 00:04:35,599 Speaker 1: product that Amazon's private label is going to push it out. Okay, 95 00:04:35,600 --> 00:04:38,200 Speaker 1: this is totally off top and I'm gonna this is 96 00:04:38,200 --> 00:04:41,359 Speaker 1: gonna be absolutely a wild card that you're gonna have 97 00:04:41,440 --> 00:04:45,400 Speaker 1: to deal with. Huts and Yards is opening this week 98 00:04:45,600 --> 00:04:48,480 Speaker 1: and it's going to be a retail hub with lots 99 00:04:48,520 --> 00:04:51,599 Speaker 1: of new brick and mortar retails. Do you think that 100 00:04:51,680 --> 00:04:55,560 Speaker 1: New York City can absorb a huge chunk of additional 101 00:04:55,760 --> 00:04:58,360 Speaker 1: retail brick and mortar. I think if you have enough 102 00:04:58,400 --> 00:05:00,720 Speaker 1: food and stuff, you'll get the traff back in there, 103 00:05:00,760 --> 00:05:03,240 Speaker 1: But I don't know that it's going to really drive 104 00:05:03,320 --> 00:05:05,640 Speaker 1: up the sales. Also, just in my opinion, it's pretty 105 00:05:05,640 --> 00:05:09,040 Speaker 1: far west, and as a person who builds my life 106 00:05:09,040 --> 00:05:10,840 Speaker 1: around the train and stuff, I feel like it's a 107 00:05:10,839 --> 00:05:14,040 Speaker 1: little bit far to go. And we already have, you know, 108 00:05:14,080 --> 00:05:17,280 Speaker 1: the Time Warner Center, So I'm not sure that it's necessary. 109 00:05:17,279 --> 00:05:18,840 Speaker 1: But if they have a good enough experience, they at 110 00:05:18,880 --> 00:05:21,520 Speaker 1: least get the traffic, you know, for food and things 111 00:05:21,520 --> 00:05:24,520 Speaker 1: like that. Senior consumer analyst for Blubberg Intelligence. Thank you 112 00:05:24,600 --> 00:05:28,080 Speaker 1: so much for being here with us. It's always time 113 00:05:28,120 --> 00:05:30,080 Speaker 1: to talk donuts, and here to talk donuts with us. 114 00:05:30,760 --> 00:05:33,280 Speaker 1: Is the very best person or people to talk about 115 00:05:33,320 --> 00:05:36,360 Speaker 1: it with us. Buzzy good Old and Nancy Goduld. Buzzy 116 00:05:36,360 --> 00:05:39,800 Speaker 1: Godult of course runs Cougar Capital. He left Wall Street 117 00:05:40,200 --> 00:05:43,359 Speaker 1: uh and and is still managing money. But he was 118 00:05:43,600 --> 00:05:48,400 Speaker 1: the super trader running herzog Hein Godult before it was 119 00:05:48,560 --> 00:05:52,640 Speaker 1: sold to Merrill Lynch in two thousand. He founded his 120 00:05:52,720 --> 00:05:56,520 Speaker 1: own donut shop and he is here with Nancy, who 121 00:05:56,640 --> 00:05:59,280 Speaker 1: is of course the manager of a new donut pub 122 00:05:59,320 --> 00:06:03,240 Speaker 1: because donut is expanding. Buzzy. Let's start with you, thank 123 00:06:03,279 --> 00:06:05,080 Speaker 1: you so much for being here in our Bloomberg Interactive 124 00:06:05,080 --> 00:06:08,240 Speaker 1: Broker's studios. First, can you just give us a refresher 125 00:06:08,400 --> 00:06:11,560 Speaker 1: and how you went from Wall Street two donuts, back 126 00:06:11,560 --> 00:06:13,840 Speaker 1: to Wall Street, back to donuts again and are now 127 00:06:13,880 --> 00:06:17,359 Speaker 1: expanding expanding it. Actually it started with doughnuts long before 128 00:06:17,360 --> 00:06:21,480 Speaker 1: Wall Street, like a backtrack. I had Wall Street for 129 00:06:21,520 --> 00:06:23,719 Speaker 1: maybe a few months, got fired for my first job, 130 00:06:23,800 --> 00:06:26,680 Speaker 1: filed with my second job, and the nineteen sixty one 131 00:06:26,800 --> 00:06:30,120 Speaker 1: ISH went into the donor business with my brother, and 132 00:06:30,480 --> 00:06:34,240 Speaker 1: nineteen sixty eight Ish Wall Street. My brother decided to 133 00:06:34,240 --> 00:06:40,719 Speaker 1: go back to Wall streets, hold off four stores that 134 00:06:40,760 --> 00:06:43,599 Speaker 1: we had four stores, we sold off three. I wanted one. 135 00:06:44,320 --> 00:06:46,760 Speaker 1: He went back to Wall Street. I would bake in 136 00:06:46,800 --> 00:06:49,240 Speaker 1: the morning, take the trainer down and just kind of 137 00:06:49,240 --> 00:06:52,279 Speaker 1: hang around post these positions orfer the job. And that 138 00:06:52,400 --> 00:06:54,560 Speaker 1: was it. So from sixty eight to two thousand, that 139 00:06:54,720 --> 00:06:59,840 Speaker 1: was in the Harzack. It's so Nancy. So now yet 140 00:07:00,000 --> 00:07:02,520 Speaker 1: are you're you're expanding right, We're expanding donut pub right, 141 00:07:02,560 --> 00:07:04,960 Speaker 1: So tell us about that? Yea, So we're opening UM 142 00:07:05,000 --> 00:07:08,880 Speaker 1: the second location since nine on Astar Place in Broadway. 143 00:07:09,400 --> 00:07:11,760 Speaker 1: So I'm super excited to be involved and to be 144 00:07:11,840 --> 00:07:15,760 Speaker 1: continuing the legacy. So how is the doughnut business in general? 145 00:07:15,880 --> 00:07:20,160 Speaker 1: People health conscious process or health conscious? But they still 146 00:07:20,200 --> 00:07:26,400 Speaker 1: eight donuts donuts, So we're business fifty four years. At 147 00:07:26,440 --> 00:07:27,920 Speaker 1: the end of twound the eighteen it was the best 148 00:07:28,000 --> 00:07:30,440 Speaker 1: year we've ever had. And why is that dealing? What's 149 00:07:30,720 --> 00:07:34,040 Speaker 1: changing do you guys? I think I think people enjoy 150 00:07:34,200 --> 00:07:37,440 Speaker 1: an inexpensive treat that puts a smile on their face 151 00:07:37,520 --> 00:07:39,880 Speaker 1: and don't let's go back in vogue. And we have 152 00:07:39,960 --> 00:07:42,960 Speaker 1: become a destination. So on weekends you'll see people from 153 00:07:43,280 --> 00:07:46,920 Speaker 1: Japan and Germany and Holland basically all over the world 154 00:07:46,960 --> 00:07:49,560 Speaker 1: and all over the country. It's a destination point. And 155 00:07:49,600 --> 00:07:51,840 Speaker 1: the product is a great product. We make three times 156 00:07:51,840 --> 00:07:55,760 Speaker 1: a day. It's so refresh So, Nancy, where's the new 157 00:07:55,800 --> 00:07:59,240 Speaker 1: location and what's the client's hell that you're looking for? 158 00:07:59,680 --> 00:08:04,000 Speaker 1: So new location is Astro Place in Broadway, So UM 159 00:08:04,040 --> 00:08:05,880 Speaker 1: it's gonna be a super busy area. A lot of 160 00:08:05,920 --> 00:08:08,720 Speaker 1: students from n y U and Pratt and the New School. 161 00:08:08,720 --> 00:08:11,880 Speaker 1: So we're hoping to get UM a younger clientele and 162 00:08:12,040 --> 00:08:14,720 Speaker 1: some more college students in the store. You know, Buzzy, 163 00:08:14,800 --> 00:08:17,240 Speaker 1: I want to ask you something about the connection between 164 00:08:17,280 --> 00:08:21,360 Speaker 1: Wall Street and donuts. Is there? What you know, business 165 00:08:21,440 --> 00:08:23,560 Speaker 1: is business and I learned how to run the brokerage 166 00:08:23,560 --> 00:08:26,160 Speaker 1: firm by running a donut shop. And there's a very 167 00:08:26,160 --> 00:08:29,400 Speaker 1: little difference. You've got clients and both you want to serve. 168 00:08:29,960 --> 00:08:32,560 Speaker 1: You want them to leave, whether they're buying or selling 169 00:08:32,559 --> 00:08:35,360 Speaker 1: a million shares of a security or whether they're buying 170 00:08:35,360 --> 00:08:37,679 Speaker 1: it doesn't don't that you want to leave this This 171 00:08:37,720 --> 00:08:39,959 Speaker 1: was the right place I went to. So it's all 172 00:08:39,960 --> 00:08:42,719 Speaker 1: about product and service and I learned how to do that, 173 00:08:42,960 --> 00:08:45,160 Speaker 1: and they don't the shop. So Nancy, as you guys 174 00:08:45,240 --> 00:08:47,200 Speaker 1: think about your opening up this a new store at 175 00:08:47,240 --> 00:08:50,760 Speaker 1: astra place, what's the competition Like with the big donut 176 00:08:50,960 --> 00:08:53,040 Speaker 1: national chains and things like that, you try to put 177 00:08:53,040 --> 00:08:56,120 Speaker 1: a store where there isn't another donut store. So there's 178 00:08:56,120 --> 00:08:59,040 Speaker 1: actually a story about how a couple of Duncan Donuts 179 00:08:59,040 --> 00:09:02,280 Speaker 1: opened next to the original location of the Donut Hub 180 00:09:02,360 --> 00:09:05,400 Speaker 1: and they have since left, which is good for us. 181 00:09:05,440 --> 00:09:08,120 Speaker 1: But I think we're pretty different from the like huge 182 00:09:08,240 --> 00:09:11,480 Speaker 1: chain stores where everything is baked fresh on the premises. 183 00:09:11,920 --> 00:09:14,320 Speaker 1: All of our donuts are hand cut. Um, so in 184 00:09:14,360 --> 00:09:16,240 Speaker 1: that way, we're still a very old fashioned and I 185 00:09:16,240 --> 00:09:21,000 Speaker 1: think people appreciate that authenticity in that freshness. Buzzy, am 186 00:09:21,000 --> 00:09:23,720 Speaker 1: I correct in thinking, So you were the main baker. 187 00:09:23,840 --> 00:09:26,520 Speaker 1: You you're the one who actually made the donuts. Well, 188 00:09:26,520 --> 00:09:30,000 Speaker 1: back in the day, I did baking, a dressed the donuts, 189 00:09:30,000 --> 00:09:34,079 Speaker 1: which was putting the icing, filling the jelly, et cetera. Yes, 190 00:09:34,640 --> 00:09:39,160 Speaker 1: So what's your favorite donut? Black or white? Boston Cream? Okay? 191 00:09:39,360 --> 00:09:42,680 Speaker 1: And right now, so how do you how do you 192 00:09:42,720 --> 00:09:47,839 Speaker 1: divvy up your day now between managing money and making donuts? Well, 193 00:09:47,880 --> 00:09:50,000 Speaker 1: the only thing I do with with donuts is on 194 00:09:50,160 --> 00:09:52,520 Speaker 1: Saturday morning, if I'm in town, I stopped by that 195 00:09:52,559 --> 00:09:54,480 Speaker 1: there on the shop, I have a cup of coffee 196 00:09:54,520 --> 00:09:57,440 Speaker 1: with the guy who manages critique the chalk that may 197 00:09:57,480 --> 00:09:59,480 Speaker 1: not be shiny enough where he has a new idea 198 00:09:59,520 --> 00:10:02,439 Speaker 1: for a new that that's my involvement. Now that we've 199 00:10:02,440 --> 00:10:04,800 Speaker 1: got a new store coming, I've been involved in the construction, 200 00:10:04,800 --> 00:10:06,520 Speaker 1: which is the fun pot for me. And then after 201 00:10:06,559 --> 00:10:10,200 Speaker 1: that I'll turn it over the nacy and manager. Do 202 00:10:10,240 --> 00:10:13,160 Speaker 1: you actually make money from it or is it something 203 00:10:13,200 --> 00:10:15,360 Speaker 1: that is enjoyable to do you actually now do make 204 00:10:15,400 --> 00:10:19,360 Speaker 1: money from it? Yes? The reason as it's like it's 205 00:10:19,360 --> 00:10:23,719 Speaker 1: tough to make money right, absolutely, I have to ask you. 206 00:10:23,840 --> 00:10:26,600 Speaker 1: So you sold your specialist firm to Merrill Lynch at 207 00:10:26,640 --> 00:10:30,120 Speaker 1: two thousand UM top of the market. It sounds like 208 00:10:30,120 --> 00:10:32,200 Speaker 1: to me, I remember two thousand kind of peaking in March, 209 00:10:32,280 --> 00:10:35,080 Speaker 1: so hopefully that worked out. Um, what is the state 210 00:10:35,080 --> 00:10:38,080 Speaker 1: of the specialist business today? Are there specialists left? I 211 00:10:38,120 --> 00:10:40,480 Speaker 1: think they're a specialist, but it's not the business anymore. 212 00:10:41,200 --> 00:10:43,240 Speaker 1: I think it kind of topped out short after we 213 00:10:43,360 --> 00:10:50,080 Speaker 1: sold between decimalization limit or the protection uh electronics, etcetera. 214 00:10:50,440 --> 00:10:53,720 Speaker 1: Is electronics. You know, when when we made markets, there 215 00:10:53,760 --> 00:10:55,880 Speaker 1: were spreads, so you're rather if you could make some 216 00:10:55,920 --> 00:10:57,960 Speaker 1: money out of spread. Now the spreads are a penny 217 00:10:58,000 --> 00:11:00,679 Speaker 1: and things trade in between that penny. It's just not 218 00:11:00,800 --> 00:11:03,400 Speaker 1: a business, so what I mean? So again, most of 219 00:11:03,400 --> 00:11:06,199 Speaker 1: the trading today is electronic. It's off off the exchange. 220 00:11:06,240 --> 00:11:08,240 Speaker 1: So are there how many did you have to offhand? 221 00:11:08,280 --> 00:11:11,199 Speaker 1: How many specialists are left on the New York Stock Change? 222 00:11:11,480 --> 00:11:14,160 Speaker 1: I don't but I can't imagine it's anything like whether 223 00:11:14,200 --> 00:11:18,320 Speaker 1: it was in the for these fifties sixties seven. So 224 00:11:18,360 --> 00:11:20,960 Speaker 1: as you manage your own money, given your extensive experience 225 00:11:21,200 --> 00:11:25,480 Speaker 1: in markets, where are you seeing the opportunities right now? Well, 226 00:11:25,480 --> 00:11:27,240 Speaker 1: you know, it's a market the stocks which is a 227 00:11:28,080 --> 00:11:30,480 Speaker 1: kind of saying, but it's true, it's not a stock markets. 228 00:11:30,520 --> 00:11:34,280 Speaker 1: So there's there's opportunities always, and whether it's biotech, whether 229 00:11:34,320 --> 00:11:39,880 Speaker 1: it's technology, whether it's retail, there's always opportunities. So, Nancy, 230 00:11:39,920 --> 00:11:43,000 Speaker 1: getting back to the topic at headhand, donuts, What are 231 00:11:43,040 --> 00:11:46,320 Speaker 1: some of the best selling donuts right now? Um, that 232 00:11:46,480 --> 00:11:48,560 Speaker 1: coming out of your store? Um? So I think the 233 00:11:48,600 --> 00:11:52,120 Speaker 1: classic donuts are always top sellers, like glazed Boston cream. 234 00:11:52,160 --> 00:11:54,679 Speaker 1: We do a black and white Boston cream with half analyzing, 235 00:11:54,720 --> 00:11:57,600 Speaker 1: half chocolate. Um. And then the croissant donuts, which are 236 00:11:58,000 --> 00:12:03,120 Speaker 1: a sort of recent addition. Those are croissant donuts. Yeah, 237 00:12:03,240 --> 00:12:06,560 Speaker 1: you're basically doing everything in your power not to say cronut. Right. 238 00:12:06,800 --> 00:12:09,240 Speaker 1: Oh yeah, that was very well, I'm not allowed to 239 00:12:09,240 --> 00:12:13,959 Speaker 1: say literally, that's that's that's trademarked. Oh yeah, okay, I'll 240 00:12:13,960 --> 00:12:17,280 Speaker 1: say it for you. Coronuts, croissant doughnuts. Give me a break, 241 00:12:17,760 --> 00:12:20,679 Speaker 1: just real quick, Nancy, how many people are actually worried about, 242 00:12:20,760 --> 00:12:24,280 Speaker 1: you know, calories and health or are we moving to 243 00:12:24,320 --> 00:12:27,040 Speaker 1: a phase that's that's different in a different sense where 244 00:12:27,040 --> 00:12:30,720 Speaker 1: people are basically saying, uh, they want to be more gourmand, 245 00:12:30,880 --> 00:12:34,199 Speaker 1: they want to support or be involved in an experience 246 00:12:34,360 --> 00:12:37,480 Speaker 1: in a local shop. I think that people are super 247 00:12:37,520 --> 00:12:41,359 Speaker 1: health conscious, but they also appreciate these sort of small 248 00:12:41,640 --> 00:12:45,120 Speaker 1: like luxuries of having once in a while, you know, 249 00:12:45,120 --> 00:12:47,080 Speaker 1: a sweet treat. So I think, you know, it's a 250 00:12:47,120 --> 00:12:50,600 Speaker 1: combination of both. And I think people appreciate how fresh 251 00:12:50,600 --> 00:12:53,280 Speaker 1: our product is um so maybe it makes them feel 252 00:12:53,320 --> 00:12:56,280 Speaker 1: a little bit less guilty about it. That's a great story. 253 00:12:56,640 --> 00:12:59,840 Speaker 1: Buzzy Cadeld and Nancy Cadeld. Nancy's a VP and manager 254 00:12:59,840 --> 00:13:01,959 Speaker 1: of new Donut pub opening up on Astro Place and 255 00:13:02,000 --> 00:13:05,000 Speaker 1: Buzzies the CEO of Cougar Capital and founder of Donut 256 00:13:05,040 --> 00:13:07,320 Speaker 1: Pub way back in today. Thanks so much for coming 257 00:13:07,320 --> 00:13:09,480 Speaker 1: in and joining us. I don't know about you, Lisa, 258 00:13:09,520 --> 00:13:11,560 Speaker 1: but I mean I'm gonna head down to the fourteen 259 00:13:11,600 --> 00:13:14,200 Speaker 1: Street and take a look, because I haven't been. Someone 260 00:13:14,240 --> 00:13:17,480 Speaker 1: just tweeted at me, do they have diet donuts? I'm 261 00:13:17,480 --> 00:13:23,320 Speaker 1: going to answer that no, that doesn't happen. Actually, Buzzy 262 00:13:23,320 --> 00:13:27,960 Speaker 1: says they're all diet donuts. There you go. Interesting. Ethiopian 263 00:13:28,040 --> 00:13:31,240 Speaker 1: Airlines flight three zero two crashed over the weekend, killing 264 00:13:31,280 --> 00:13:35,120 Speaker 1: all one fifty seven people on board. Africa's biggest carrier 265 00:13:35,160 --> 00:13:37,800 Speaker 1: decided not to use its seven thirty seven Max eight 266 00:13:37,880 --> 00:13:41,720 Speaker 1: planes until further notice, while China and Indonesia also grounded 267 00:13:41,800 --> 00:13:44,640 Speaker 1: seven thirty seven Max jets. So to get the latest 268 00:13:44,720 --> 00:13:48,360 Speaker 1: on this developing story, let's bring in George Ferguson. George 269 00:13:48,400 --> 00:13:52,040 Speaker 1: is a senior aerospace, defense and airline animals from Bloomberg Intelligence. 270 00:13:52,200 --> 00:13:54,640 Speaker 1: He joins us on the phone from Bloomberg Intelligence HQ 271 00:13:54,880 --> 00:13:57,920 Speaker 1: in Princeton, New Jersey. George, thanks for joining us. It 272 00:13:57,960 --> 00:14:00,240 Speaker 1: seems like, you know, the stock is bouncing back a 273 00:14:00,240 --> 00:14:02,120 Speaker 1: little bit, down about six percent. It had been down 274 00:14:02,120 --> 00:14:07,240 Speaker 1: about earlier in the day. How material is this growing 275 00:14:07,320 --> 00:14:09,800 Speaker 1: issue with the seven thirty seven Max to the company. 276 00:14:11,320 --> 00:14:14,120 Speaker 1: So look, any time anything happens to the seven thirty 277 00:14:14,160 --> 00:14:16,640 Speaker 1: seven to a seven thirty seven, it's important to Boeing 278 00:14:17,000 --> 00:14:21,360 Speaker 1: because it's the most important program, accounts for over thirty 279 00:14:21,440 --> 00:14:26,480 Speaker 1: percent of revenues, probably over of operating income. But I 280 00:14:26,480 --> 00:14:29,160 Speaker 1: think what we're gonna find out here is that UM 281 00:14:30,320 --> 00:14:32,240 Speaker 1: and the Bowling has made some changes to this jet 282 00:14:32,320 --> 00:14:35,880 Speaker 1: since the previous version, the n G, and they pushed 283 00:14:35,880 --> 00:14:38,840 Speaker 1: the engines forward, and they've they've changed the physics a 284 00:14:38,840 --> 00:14:41,360 Speaker 1: little bit. And when they did that, they changed some 285 00:14:41,440 --> 00:14:45,600 Speaker 1: of the program that the computer and the airplane that 286 00:14:45,760 --> 00:14:48,840 Speaker 1: helps ensure that the pilot doesn't pull the airplane up 287 00:14:48,840 --> 00:14:51,560 Speaker 1: too fast and stall the wing. And so I think 288 00:14:51,600 --> 00:14:54,920 Speaker 1: what we're gonna find out is UM, we're still bowing, 289 00:14:54,960 --> 00:14:58,320 Speaker 1: still not getting enough training into the into the market 290 00:14:58,360 --> 00:15:02,440 Speaker 1: for pilots to understand that and disabled that. So I 291 00:15:02,440 --> 00:15:05,200 Speaker 1: think this is going to end up being a training issue. 292 00:15:07,080 --> 00:15:09,600 Speaker 1: But almost like a George, if it's a training issue, 293 00:15:10,240 --> 00:15:13,800 Speaker 1: that's actually that could go back to Boeing and Boeing's 294 00:15:13,840 --> 00:15:17,400 Speaker 1: liability because wasn't that part of Boeing's push here that 295 00:15:17,520 --> 00:15:22,280 Speaker 1: this was not a craft and aircraft that required substantial 296 00:15:22,480 --> 00:15:26,960 Speaker 1: increasing in training for pilots just to reduce the cost 297 00:15:27,160 --> 00:15:30,720 Speaker 1: and better to compete with the Airbus. Yes, so I 298 00:15:30,720 --> 00:15:33,880 Speaker 1: think there's gonna be a debate about that, UM, about 299 00:15:33,880 --> 00:15:38,320 Speaker 1: whether or not this was Boeing's responsibility or the airline's responsibility. 300 00:15:38,400 --> 00:15:40,840 Speaker 1: But I totally agree. I've heard from a number of 301 00:15:40,840 --> 00:15:44,160 Speaker 1: pilots in the industry who are concerned that Boeing sort 302 00:15:44,160 --> 00:15:47,360 Speaker 1: of soft pedaled the training pilot needed to get the 303 00:15:47,360 --> 00:15:51,040 Speaker 1: transition to the MAX because they want to make the Energy, 304 00:15:51,120 --> 00:15:53,720 Speaker 1: which is the previous version, and the MAX looked like 305 00:15:53,960 --> 00:15:56,640 Speaker 1: very similar airplanes in an airline suite, and they want 306 00:15:56,720 --> 00:15:59,400 Speaker 1: to minimize the training between the two. So Georgia this 307 00:15:59,480 --> 00:16:01,920 Speaker 1: early stage age, is there any sense of the exposure 308 00:16:02,320 --> 00:16:06,520 Speaker 1: to Boeing. Yeah, you know, we're always we're always sort 309 00:16:06,560 --> 00:16:10,000 Speaker 1: of quite sensitive about that, given lives are lost here. 310 00:16:10,560 --> 00:16:14,080 Speaker 1: But um, I mean airline crashes happen an occasion. They 311 00:16:14,080 --> 00:16:17,680 Speaker 1: don't they don't put those companies out of business. You know, 312 00:16:17,920 --> 00:16:20,200 Speaker 1: I think that attorneys will probably sit down and think 313 00:16:20,200 --> 00:16:23,600 Speaker 1: about how much every life on the airplane is worth. It. 314 00:16:23,680 --> 00:16:26,040 Speaker 1: Sort of hate to get juma commists, but you could 315 00:16:26,040 --> 00:16:29,000 Speaker 1: find five or ten million dollars a person could be 316 00:16:29,000 --> 00:16:31,520 Speaker 1: a liability. Bowing may have some insurance policies to help 317 00:16:31,560 --> 00:16:34,440 Speaker 1: cover some of that. It's nothing that would am Bowling 318 00:16:34,480 --> 00:16:36,240 Speaker 1: is ten billion dollars in the bounty. I think it's 319 00:16:36,280 --> 00:16:40,080 Speaker 1: nothing that would that would put the company out of business. Well, 320 00:16:40,600 --> 00:16:42,400 Speaker 1: it doesn't have to be putting the company out of 321 00:16:42,400 --> 00:16:45,120 Speaker 1: the business. I mean it's the biggest uh, it's the 322 00:16:45,160 --> 00:16:47,880 Speaker 1: biggest share in in in the Dow Index. I mean, 323 00:16:48,000 --> 00:16:50,080 Speaker 1: it just has to go down a substantial mouth. There's 324 00:16:50,120 --> 00:16:53,520 Speaker 1: also a question, of course, reputational risk as well as 325 00:16:53,800 --> 00:16:58,320 Speaker 1: whether a nation like China, which accounted the orders I 326 00:16:58,320 --> 00:17:01,600 Speaker 1: believe of this new seven thirties seven uh, if they 327 00:17:01,640 --> 00:17:05,480 Speaker 1: could use this as an excuse to reduce the number 328 00:17:05,520 --> 00:17:09,520 Speaker 1: of aircraft that they order from Boeing for whatever reason, 329 00:17:09,640 --> 00:17:13,200 Speaker 1: whether it be that they want to reduce their exposure 330 00:17:13,200 --> 00:17:17,640 Speaker 1: to US companies or what have you. I think there 331 00:17:17,680 --> 00:17:20,639 Speaker 1: could be agreed at least I think there's there's the 332 00:17:20,640 --> 00:17:23,000 Speaker 1: potential that some of that could be going on in 333 00:17:23,080 --> 00:17:25,800 Speaker 1: the backdrop, because I would note that the largest operator 334 00:17:25,840 --> 00:17:28,919 Speaker 1: the airplane is Southwest. They fly thirty four of them 335 00:17:28,960 --> 00:17:31,960 Speaker 1: by my last count. They're flying them every day. They're 336 00:17:32,000 --> 00:17:35,639 Speaker 1: working fine in the fleet, um, you know, and I 337 00:17:35,680 --> 00:17:38,800 Speaker 1: would say the US and Europe, we haven't seen any 338 00:17:38,840 --> 00:17:41,920 Speaker 1: of those regulators come in and try to temporarily ground 339 00:17:41,960 --> 00:17:45,720 Speaker 1: the airplane. So it seems to me like the biggest, 340 00:17:46,040 --> 00:17:49,439 Speaker 1: the most safe markets in the world have been the 341 00:17:49,440 --> 00:17:53,400 Speaker 1: airplane is good to go and so yeah, because there 342 00:17:53,400 --> 00:17:55,680 Speaker 1: may be a little bit negotiation behind the scenes here 343 00:17:55,760 --> 00:18:00,639 Speaker 1: from from airlines in Indonesia or in China that might 344 00:18:00,640 --> 00:18:02,560 Speaker 1: give them some legal room to take some orders off 345 00:18:02,600 --> 00:18:05,160 Speaker 1: the book it. Frankly, I think the Chinese probably need 346 00:18:06,000 --> 00:18:09,360 Speaker 1: the airplane flow to to grow their their airline industry 347 00:18:09,359 --> 00:18:12,320 Speaker 1: as much as they want to. Um. Look, there's only 348 00:18:12,359 --> 00:18:16,440 Speaker 1: I think, you know, I looked there's probably thirty orst 349 00:18:16,440 --> 00:18:19,760 Speaker 1: flying inside of China right now, So it's not it's 350 00:18:19,800 --> 00:18:22,440 Speaker 1: not a huge ask for them to pull them out 351 00:18:22,440 --> 00:18:25,840 Speaker 1: of the fleet temporarily, you know. So I don't think 352 00:18:25,840 --> 00:18:28,360 Speaker 1: it's Um, I don't know that they're going to shut 353 00:18:28,400 --> 00:18:31,719 Speaker 1: off the pipeline and Boeing, but they may use it too. 354 00:18:32,080 --> 00:18:33,800 Speaker 1: So so in in the U S. Here have we 355 00:18:33,880 --> 00:18:36,840 Speaker 1: yet heard for the fa A about whether they want 356 00:18:36,880 --> 00:18:42,040 Speaker 1: to temporarily ground these planes. So I've heard nothing at 357 00:18:42,200 --> 00:18:45,320 Speaker 1: at this stage. Um. You know, look, we just we 358 00:18:45,359 --> 00:18:48,320 Speaker 1: went to the Indonesia crash, and I would remind everybody 359 00:18:48,480 --> 00:18:52,360 Speaker 1: that the Indonesia crash the Lion Air crash. I think 360 00:18:52,359 --> 00:18:54,480 Speaker 1: what we've learned so far was that an angle of 361 00:18:54,520 --> 00:18:59,399 Speaker 1: attack indicator wasn't properly maintained and the pilot wasn't fully 362 00:18:59,440 --> 00:19:04,360 Speaker 1: trained on how to shut off this nose over computer control, 363 00:19:04,600 --> 00:19:07,199 Speaker 1: so I wouldn't see anything from that would lead me 364 00:19:07,240 --> 00:19:10,960 Speaker 1: to believe that the FED would want to restrict flights 365 00:19:11,080 --> 00:19:13,880 Speaker 1: for this, the seven thirty seven Max. And look, they've 366 00:19:13,880 --> 00:19:16,880 Speaker 1: been looking at that data since the Lion air crash occurred, 367 00:19:16,880 --> 00:19:18,240 Speaker 1: like the FAE has been looking at that and they 368 00:19:18,280 --> 00:19:21,240 Speaker 1: haven't ground the airplane. So again I think that we 369 00:19:21,280 --> 00:19:25,600 Speaker 1: won't see a grounding out of this crash. George Ferguson, 370 00:19:25,720 --> 00:19:27,560 Speaker 1: thank you so much for being with us. George Ferguson, 371 00:19:27,560 --> 00:19:32,639 Speaker 1: Bloomberg Intelligence, Senior Aerospace defense an airline analyst, talking of 372 00:19:32,680 --> 00:19:38,600 Speaker 1: course about the tragic Boeing Max UH crash which took 373 00:19:38,680 --> 00:19:41,680 Speaker 1: the lives of nearly two hundred people crashed in Ethiopia. 374 00:19:43,560 --> 00:19:46,919 Speaker 1: You're listening to Bloomberg Markets with Lisa Ramo, Eds and 375 00:19:46,960 --> 00:19:51,040 Speaker 1: Paul Sweeney on Bloomberg Radio. First, Linton just walked into 376 00:19:51,040 --> 00:19:54,159 Speaker 1: our Interactive Broker Studios in a fantastic food as he 377 00:19:54,200 --> 00:19:58,800 Speaker 1: should because his company, Canopy Growth shares up more than 378 00:19:58,960 --> 00:20:03,000 Speaker 1: seventy scent so far just this year. They have been 379 00:20:03,040 --> 00:20:05,639 Speaker 1: absolutely on a tear. We are talking marijuana, and we 380 00:20:05,640 --> 00:20:08,800 Speaker 1: are talking of course the company uh that Constellation Brands 381 00:20:08,840 --> 00:20:11,080 Speaker 1: bought a share of and that last week. And as 382 00:20:11,400 --> 00:20:16,359 Speaker 1: a business partnership with television personality and lifestyle authority Martha 383 00:20:16,560 --> 00:20:20,320 Speaker 1: Stewart very much the Rage one of the biggest and 384 00:20:20,960 --> 00:20:24,520 Speaker 1: arguably most ambitious kidnabis companies in the United States. Bruce 385 00:20:24,600 --> 00:20:28,040 Speaker 1: joining us here as the CEO here in our eleven 386 00:20:28,040 --> 00:20:30,240 Speaker 1: three oh studio. So Bruce, first, I just want to 387 00:20:30,240 --> 00:20:33,720 Speaker 1: start with the Martha Stewart Association here. What is the 388 00:20:33,720 --> 00:20:37,800 Speaker 1: business partnership exactly? Just please explain. Yeah, no, and I 389 00:20:37,880 --> 00:20:39,920 Speaker 1: thought that bringing was great. You didn't actually use any 390 00:20:39,960 --> 00:20:41,440 Speaker 1: pot puns. I thought you're going to talk about the 391 00:20:41,440 --> 00:20:43,760 Speaker 1: stock high or something. So that was I think that's 392 00:20:43,760 --> 00:20:45,600 Speaker 1: been tired. It's you know, I'm going to give that 393 00:20:45,640 --> 00:20:47,359 Speaker 1: a T shirt, a T shirt to anyone who can 394 00:20:47,400 --> 00:20:48,720 Speaker 1: come up with a new one of those. And I don't. 395 00:20:48,720 --> 00:20:50,600 Speaker 1: I don't think I handle any T shirts. But this 396 00:20:50,680 --> 00:20:53,600 Speaker 1: is a real business. We can move away from the 397 00:20:53,640 --> 00:20:56,280 Speaker 1: puns to this is real business. Well, what's happened is 398 00:20:56,320 --> 00:20:58,960 Speaker 1: people needed puns when it was uncomfortable. Now what it 399 00:20:59,040 --> 00:21:00,960 Speaker 1: is is more than Curry City. It's a real business, 400 00:21:00,960 --> 00:21:03,400 Speaker 1: which is why you're gonna name like Martha Stewart coming by. 401 00:21:03,480 --> 00:21:06,359 Speaker 1: And what Martha saw is about three years ago. First 402 00:21:06,359 --> 00:21:09,040 Speaker 1: we associated with Snoop and it was his request. He 403 00:21:09,080 --> 00:21:12,080 Speaker 1: reached to us because he saw us doing brand right Tweed, 404 00:21:12,680 --> 00:21:14,240 Speaker 1: and then we worked with him for about two and 405 00:21:14,280 --> 00:21:16,399 Speaker 1: a half years and we got to know Martha, and 406 00:21:16,440 --> 00:21:20,520 Speaker 1: Martha's on ramp is really about wellness health advising us 407 00:21:20,520 --> 00:21:22,840 Speaker 1: and how we could actually focus on animal care products 408 00:21:22,840 --> 00:21:25,640 Speaker 1: which would incorporate CBD, and where we can do all 409 00:21:25,640 --> 00:21:27,840 Speaker 1: that work in America's right here in New York State, 410 00:21:28,040 --> 00:21:31,400 Speaker 1: because New York State figured out when the Farm Act passed, 411 00:21:31,800 --> 00:21:34,720 Speaker 1: how to create state level regulations that are very welcoming 412 00:21:34,760 --> 00:21:37,680 Speaker 1: to business. And I, as a business, don't need a 413 00:21:37,720 --> 00:21:41,280 Speaker 1: tax break. I need good policy. And so it kind 414 00:21:41,280 --> 00:21:43,280 Speaker 1: of makes me show up without having my hand out 415 00:21:43,280 --> 00:21:45,280 Speaker 1: because I just want to get to work. That was 416 00:21:45,359 --> 00:21:48,800 Speaker 1: a very subtle tag at Amazon. Did I do that? 417 00:21:49,040 --> 00:21:50,919 Speaker 1: Was that? If I was subtle in any way, I 418 00:21:50,920 --> 00:21:54,800 Speaker 1: apologize for being subtled. So interesting, I said, your business 419 00:21:54,920 --> 00:21:57,320 Speaker 1: is all in Canada? Now, is that right? No? So 420 00:21:57,400 --> 00:22:00,159 Speaker 1: what wait? It's starting Canada? But um I can as 421 00:22:00,160 --> 00:22:01,919 Speaker 1: a proud Canadian. Canada is a very good place to 422 00:22:01,920 --> 00:22:04,920 Speaker 1: be from and if you stay there, there's only thirty 423 00:22:04,960 --> 00:22:07,399 Speaker 1: six million of US. So we started there using the 424 00:22:07,400 --> 00:22:10,359 Speaker 1: public policy research, intellectual property development, and now we're in 425 00:22:10,359 --> 00:22:12,800 Speaker 1: more than a dozen countries any place that it's federally legal. 426 00:22:12,960 --> 00:22:15,760 Speaker 1: So in the US, in the US, we're only pursuing 427 00:22:16,359 --> 00:22:21,159 Speaker 1: CBD where it's governed federally. Butt in Germany to define CBD. So, 428 00:22:21,200 --> 00:22:24,360 Speaker 1: CBD is one of the two primary measured ingredients in 429 00:22:24,400 --> 00:22:28,640 Speaker 1: both cannabis and in hemp. And what CBD is associated 430 00:22:28,680 --> 00:22:31,040 Speaker 1: with is like neurological commings. So if you think of 431 00:22:31,040 --> 00:22:34,119 Speaker 1: a Parkinson's patient, they have money symptoms, one of them shaking. 432 00:22:34,560 --> 00:22:36,960 Speaker 1: CBD appears to be effective and diminishing the shaking. But 433 00:22:37,000 --> 00:22:40,000 Speaker 1: if they need to deal with pain anxiety, maybe they 434 00:22:40,040 --> 00:22:44,080 Speaker 1: need THHD. So CBD comes principally from hemp. Hemp looks 435 00:22:44,119 --> 00:22:46,000 Speaker 1: like marijuana. It's a big plant. But when you do 436 00:22:46,080 --> 00:22:47,639 Speaker 1: it in the US the right way, as it's going 437 00:22:47,680 --> 00:22:51,159 Speaker 1: to happen. Now you extract the CBD, you end up 438 00:22:51,200 --> 00:22:54,439 Speaker 1: with this protein which is very digestible. So now we're 439 00:22:54,480 --> 00:22:56,679 Speaker 1: getting this protein available and you end up with a 440 00:22:56,680 --> 00:23:00,639 Speaker 1: fiber that could be very disruptive or impactful on places 441 00:23:00,680 --> 00:23:03,439 Speaker 1: that do cotton, and so there's a whole bunch of 442 00:23:03,480 --> 00:23:06,679 Speaker 1: things that happened when you let the government create a 443 00:23:06,720 --> 00:23:08,760 Speaker 1: policy so you can actually not break a lot and 444 00:23:08,840 --> 00:23:10,800 Speaker 1: use a plant, all right. So there's a lot of 445 00:23:10,880 --> 00:23:15,560 Speaker 1: optimism around cannabis and the entire industry around it, and 446 00:23:15,600 --> 00:23:18,000 Speaker 1: certainly that's been reflected in the amount that your shares 447 00:23:18,040 --> 00:23:21,199 Speaker 1: of Search can it be shares up nearly six hundred 448 00:23:21,320 --> 00:23:24,280 Speaker 1: percent since the end of two thousand and sixteen. A 449 00:23:24,320 --> 00:23:26,199 Speaker 1: lot of people have been saying that there is a 450 00:23:26,240 --> 00:23:29,960 Speaker 1: bubble in pot stocks. I'm wondering, do you think are 451 00:23:29,960 --> 00:23:33,400 Speaker 1: you concerned about how much your stocks have gone up 452 00:23:33,560 --> 00:23:36,399 Speaker 1: given the fact that there is still so much uncertainty 453 00:23:36,440 --> 00:23:39,360 Speaker 1: about the policy level of marijuana. Yeah, I would say 454 00:23:40,040 --> 00:23:43,119 Speaker 1: my concern is more for the portfolio stocks in the 455 00:23:43,119 --> 00:23:45,800 Speaker 1: sector than our specifically. Right. So, we have a lot 456 00:23:45,880 --> 00:23:47,760 Speaker 1: of capital. We're using that capital to do a lot 457 00:23:47,760 --> 00:23:50,040 Speaker 1: of research. We have over a hundred and forty patent 458 00:23:50,080 --> 00:23:53,080 Speaker 1: families that we put together. We've got a huge facility 459 00:23:53,119 --> 00:23:55,359 Speaker 1: that we're just finishing construction that will launch the first 460 00:23:55,480 --> 00:24:00,000 Speaker 1: real beverages driven by cannabis. So don't think beer, think tweet, 461 00:24:00,200 --> 00:24:06,080 Speaker 1: tonic um think very low dosage, no calories, always standard, 462 00:24:06,560 --> 00:24:09,880 Speaker 1: reasonably easy to sit and experience, versus have a drink 463 00:24:09,920 --> 00:24:12,000 Speaker 1: and wait forty minutes. So this is gonna be you know, 464 00:24:12,040 --> 00:24:14,560 Speaker 1: that kind of impact. So what you're having is a 465 00:24:14,600 --> 00:24:17,000 Speaker 1: company that's creating a lot of depth of value when 466 00:24:17,040 --> 00:24:20,320 Speaker 1: prohibition ends and patents can be made. But then you 467 00:24:20,359 --> 00:24:21,720 Speaker 1: have a lot of folks who feel this could be 468 00:24:21,760 --> 00:24:24,639 Speaker 1: a terrific get rich scheme, and so there's a lot 469 00:24:24,680 --> 00:24:26,800 Speaker 1: of announcements. I think the way I like determine is 470 00:24:26,800 --> 00:24:30,120 Speaker 1: there are several businesses in this sector and a whole 471 00:24:30,119 --> 00:24:33,439 Speaker 1: bunch of companies. Um, so investors should be cautious to 472 00:24:33,440 --> 00:24:35,440 Speaker 1: find the business and the company. Well, Bruce, how about 473 00:24:35,440 --> 00:24:38,680 Speaker 1: just just crossing the Bloomberg terminal? This morning was headlined 474 00:24:38,720 --> 00:24:41,840 Speaker 1: that Harvest Health and Recreation is acquiring closely held Verronto 475 00:24:41,960 --> 00:24:45,320 Speaker 1: Holdings for about fifty million dollars in the largest U 476 00:24:45,440 --> 00:24:49,520 Speaker 1: S pot deal. Uh. Do you expect more consolidation in 477 00:24:49,720 --> 00:24:51,960 Speaker 1: the cannabis business. Yeah, I think there's gonna be two things. 478 00:24:51,960 --> 00:24:54,240 Speaker 1: There's gonna be disintegration. So a whole bunch of companies 479 00:24:54,240 --> 00:24:57,480 Speaker 1: that are just throwing stuff around aren't gonna be bought, 480 00:24:57,480 --> 00:24:59,960 Speaker 1: they're going to disappear. Those would be the really sad ones, 481 00:25:00,000 --> 00:25:01,879 Speaker 1: and then there's going to be some consolidation. And the 482 00:25:01,920 --> 00:25:05,440 Speaker 1: reason for that is, um, we're running clinical trials. We're 483 00:25:05,480 --> 00:25:07,680 Speaker 1: chatting off fair about, you know, having five long term 484 00:25:07,720 --> 00:25:11,520 Speaker 1: care facility elders who will be on cannabis as an 485 00:25:11,520 --> 00:25:14,360 Speaker 1: alternate to a lot of the other medicines. Running these 486 00:25:14,400 --> 00:25:17,639 Speaker 1: trials creates intellectual property, but it's also a burden. And 487 00:25:17,680 --> 00:25:19,480 Speaker 1: if you're a little company or you're gonna plan how 488 00:25:19,520 --> 00:25:22,600 Speaker 1: we are really dominant three years from now, not likely. 489 00:25:22,600 --> 00:25:26,560 Speaker 1: So that's where you're gonna see consolidation. Interesting, Bruce, thank 490 00:25:26,560 --> 00:25:29,760 Speaker 1: you very much. Bruce Litton, Founder, chairman and CEO of 491 00:25:29,880 --> 00:25:34,000 Speaker 1: Cannopy Growth Corporation Simple c G c g C based 492 00:25:34,000 --> 00:25:35,800 Speaker 1: in Smith Falls, Ontario, but joining us here in a 493 00:25:35,800 --> 00:25:37,800 Speaker 1: Bloomberg eleven three oh studios. We can talk about this 494 00:25:37,840 --> 00:25:40,800 Speaker 1: industry all day. We honestly, I find it so interesting. 495 00:25:41,160 --> 00:25:43,400 Speaker 1: Thanks for listening to the Bloomberg P and L podcast. 496 00:25:43,560 --> 00:25:46,160 Speaker 1: You can subscribe and listen to interviews at Apple Podcasts 497 00:25:46,240 --> 00:25:49,320 Speaker 1: or whatever podcast platform you prefer. Paul Sweeney, I'm on 498 00:25:49,359 --> 00:25:51,960 Speaker 1: Twitter at pt Sweeney. I'm Lisa Abram woy It's I'm 499 00:25:51,960 --> 00:25:54,840 Speaker 1: on Twitter at Lisa abram Woyds one before the podcast, 500 00:25:54,880 --> 00:26:01,040 Speaker 1: you can always catch us worldwide on Bloomberg Radio speaking