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Why did Boeing workers reject a new contract? · The Financial Exchange Show

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This is the financial exchange, with Chuck Zada and Mike Armstrong.
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Speaker 2: Kicking off our number two of the financial exchange stocks. Well,
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if you look at the indices of them, they're up.
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The Dow Jones Industrial Average up a third of a
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percent one hundred and twenty eight points, SP five hundred
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up three quarters of percent forty four points, and the
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NASDAQUA or NASDAK up two hundred and fifty four points.
1:33
Are about one point four percent. So all three major
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US indices with some green on the board. Heading into
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the weekend. We get the ten year US Treasury flat
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at four point two percent. That's right, no movement on
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that front.
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Speaker 3: Today.
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Speaker 2: Oil West Text Intermediate up seventy two cents a barrel
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to seventy dollars and ninety one cents the triple A
1:50
national average for gas prices still drop.
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Speaker 3: In trip trip trip trip trip trip trip trip drop.
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Speaker 2: It's down another six tenths of a cent to three
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fourteen and four tenths of a cent. And we've got
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gold today up two dollars and fifty cents announced to
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twenty seven to fifty one and forty cents. Mike earlier
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this week, maybe it was yesterday, can't remember. They all
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kind of blurre together a little bit. We reported that
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Boeing workers had rejected the newest contract offer from management
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by a sixty four to thirty five percent margin. I
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know that only adds to ninety nine percent, but that's
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what's been reported everywhere. So there's some rounding going on,
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or maybe one percent of people just said maybe yeah,
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vote occurred wednesday. We reported on it yesterday and just
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kind of rounds out a garbage week for Boeing after
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about five years of garbage for Boeing, garbage and garbage out.
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Speaker 3: They say they reported a six billion dollar loss for
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the quarter they lost on the pension vote. Here to
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the union who voted against the deal, and I don't know,
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it doesn't seem terribly clear where this goes next. The
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big thing it doesn't appear to be the wages that
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are the hold up right.
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Speaker 2: It appears to be retirement and specifically so John Holden,
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who's president of District seven fifty one of the union, says, quote,
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I believe all workers deserve it to find benefit pension.
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It wasn't right to take it away, and it's a
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righteous fight to try to retrieve it back.
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Speaker 3: So let's give some context to that. In twenty fourteen,
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Boeing approached the union and effectively, well effectively threaten them
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to say, if you do not vote with us to
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get rid of this pension plan, then the next jet
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we make is not going to be up here, it's
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going to be in non union South Carolina. And they
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kind of held that over them and got rid of
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the pension, or at least froze it and removed it
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for all new employees. So that's how recent this was.
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Speaker 2: So here's there's a few different avenues that we can
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go down on this, and I think they're all were
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worth exploring. The first is let's talk about the pension
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and whether pensions are good or bad.
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Speaker 3: For the company.
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Speaker 2: The reason why companies have moved away from defined benefit
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pensions is pretty simple. Uh, it represents a risk in that, hey,
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you need to fund that pension a certain amount and
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if the investment returns aren't there. Remember, pensions in a
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lot of cases historically have been invested in bonds and
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so at least a big chunk and bonds, and so
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when bond yields go down, it becomes harder to fund
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that without greater contributions, and so as bond yields fell,
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in particular in the you know twenty tens, but you
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will get the twenty tens when yields got down to
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like one percent. In particular, Boeing sitting there like, yeah,
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this is a huge liability. We need like seven percent
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returns if we're buying bonds. Now we're getting one and
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a half two percent, Like, we can't get there. So
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that's why they moved away. Now interest rates have moved
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back up, not to where they were in the nineteen
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seventies and eighties. You're not seeing you know, bonds at
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fourteen percent, but you are seeing you know, long term
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bonds depending on whether you want treasuries, Muni's corporates. Hey,
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you can get long term bonds between four and seven
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percent now, depending on the level of risk that you
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want to take on. And we actually saw do you
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remember IBM about a year ago announced that they were
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bringing back their pension did And the reason why they
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announced that they were bringing it back is because now
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it has become cheaper for them to fund that pension
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as opposed to funding four when K matches and so IBM,
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who is Look, they might not be great at computing
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these days, but they are financial engineering wizards. I mean
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like they got all kinds of magic spells and stuff
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they do. It's it's kind of wild what they can
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do there. And so IBM moved in that direction, and
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I made a remark at the time, I said, I
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wonder if this is kind of a watershed moment that
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if any other companies decide to do this, because hasn't
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been so far hasn't been. But I do wonder about this.
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When you're talking about Boeing Bank of America, they estimate
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that offering the defined benefit plan would cause Boing somewhere
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between three and four hundred dollars three and four hundred
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million dollars more than what they spend on their four
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to one K today. So at least for Boeing right now,
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at these rates, it still would be an uptick in
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overall cost.
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Speaker 3: The other consideration is I don't think they want to
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do this for all employees. And that's pretty tough. If
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you're telling, hey, okay, machinist union up in Seattle, Yeah,
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we've agreed to your terms and we're giving you the pension.
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I would think that that puts your workers down South
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Carolina at a bigger threat of unionization in the future.
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You better believe it does.
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Speaker 2: And so the other question then goes to the worker,
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which is, Okay, we've kind of gone through the math
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and the calculus for the company, what about for the
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worker pension versus four to one K. On one hand,
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the pension, look, this is what you're going to get
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in retirement, Like, you don't have to worry about managing
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the investments, you don't have to worry about how much
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risk you're taking. The company handles all that. And based
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on the pension calculations, you work for X number of
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years at X at Y rates, you get paid out
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Z per month. I don't need to choose a fund
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within my four oh one K. I don't need to
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know whether or not I'm going to be good with
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the four percent rule when I get to retirement. It's
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kind of taken care of for me by my company.
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Now there's downsides too, traditional pensions, no inflation benefit, no
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inflation rider on them. Typically your traditional corporate pension, you
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get what you get and you know, make it up
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in terms of inflation from Social Security or something else.
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So Hey, do you think the next thirty years we're
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going to experience more or less inflation than the last
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thirty That could be a compelling reason to not really
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want the pension. What about the bankruptcy piece.
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Speaker 3: Don't have to tell anybody around here that work for
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Digital or Polaroid or you know, any of these big
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companies around here that experience bankruptcy underappreciated risk, what that
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was like. And think about that from the you know,
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new union member at Boeing. Let's let's take a twenty
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two year old at Boeing. If you are saying I'm
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signing up for that pension, you've got to have confidence
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that Boeing is going to be around in its existing
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format for sixty years. It's a lot of confidence. Now
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there's insurance that the Pension Benefit Guarantee Corporation does back
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up those pensions. Those same people who worked for those
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companies that will tell you that. But it doesn't cover everything.
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The PPGC does not cover one hundred percent of benefits
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when a company goes bankrupt.
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Speaker 2: You know, look, here's what excuse me, Here's what I
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do know is if you ask, I know, there is
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no average American sure you know, aside from maybe like height,
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but like that doesn't really do us any good. If
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you ask the average American, like a pool of you know,
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Americans that are kind of in, you know, near the
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median as far as income goes, the biggest thing that
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you tend to hear from them is that the economic
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uncertainty that they feel is that they're not sure how
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they're going to make ends meet for the long run.
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They might be making fine money today, but a lot
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of times it might be paycheck to paycheck and they're
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not sure how long it's going to last. And having
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something like a pension in place takes away some of
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that uncertainty, even though there still are things that are
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uncertain about it, like the health of the corporation and
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things like that. It removes some of that long term
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uncertainty from from the mindset of how you're trying to
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get through your day financially, and quite honestly, that can
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be stuff that weighs on you a lot.
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Speaker 3: Yeah, you know, it's like it's something that is meaningful.
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I think on the balance where I land is look
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for the last decade, those Boeing workers were probably a
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lot better off with their four oh one K than
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they would have been with the pension with market gains
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of what they've been over the last decade, Like, pretty
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tough to argue that they'd.
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Speaker 2: Us they were invested all in Boeing stock. Yeah, that
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would be bad, which some probably were not. Actually, I
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wonder how it's done for ten years. I'm honestly curious,
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just because.
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Speaker 3: Boeing stock or the markets.
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Speaker 2: Yeah going, I know it's been like not great recently,
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but I'm curious. Let me look at I'm just gonna
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look at you two.
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Speaker 3: Charts here while you talk, so you know, for me personally,
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when I look at this, I probably, on the balance,
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would prefer the four oh one K over the pension
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for the average person out there, For most Americans out there,
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I think that you would do much better with a
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pension on average, right when we consider all the other
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factors of mistakes made with four oh one K investment options,
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when we talk about moving from one employer to the
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next and abandoning four oh one k's or not contributing
10:56
enough or taking withdrawals out, I think that on the balance,
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I probably land a little bit closer to most Americans
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being better off with the pension. Even with that uncertainty
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around inflation and the corporate security down the road.
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Speaker 2: Fascinating data here. So if you will get the last
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ten years, the S and P five hundred's total return
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over that time a little north of three hundred percent.
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If you will get Boeing stock over that time, forty
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six percent is its total return.
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Speaker 3: So it hasn't been good recently.
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Speaker 2: But if you've been looking at the last twenty five years,
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I have data going back to OHG, I don't know,
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October of two thousand, so twenty four years.
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Speaker 3: If you take a look.
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Speaker 2: There, S and P five hundred over that time total
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return of actually, hang on, sorry, I had the wrong chock,
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wrong ticker in that was the S and P five hundred
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growth index. So ten years, sorry, S and P five
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hundred has done two hundred and fifty two percent. Uh
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the last twenty Actually, oh I got more data going
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back further now I'm going back thirty one years. Its
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perfect ninety three S and P has returned two thousand,
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two hundred and sixty percent. Boeing on four hundred percent. Again,
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that's just one stock first the index.
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Speaker 3: But interesting though, I guess.
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12:47
Speaker 2: Stick with a little bit of food conversation and let's
12:50
talk about McDonald's and their E coli outbreak. They appear
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at least McDonald's is saying that they appear to have
12:57
honed in on these from Tailor Farms of Salinas, California.
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Uh that uh, that is the cause of the E
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coal i outbreak. It's the onions from Taylor Farms, which is,
13:10
by the way, had coal i problems once before, according
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to this reporting. Now again, if you're supplying onions to
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like a good chunk of the fast food industry, I
13:20
suppose you're going to have potential contaminations every once in
13:25
a while. But yeah, McDonald's has very rapidly figured out
13:29
what happened here and how to fix it. So if
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they have one more, is that gonna mean that it's
13:34
a three coal eye problem.
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Speaker 3: Oh, is that the truck crashing? Ah? No, I think
13:42
I think that. I think it's pretty I thought I
13:44
landed that. I think it's pretty good. It's not. Young Brand's,
13:50
owner of Taco Bell, Pizza Hut, and KFC, has also
13:54
said that they have, out of an abundance of caution,
13:57
removed fresh onions from select products. Restaurant Brands International, which
14:01
owns Burger King, said that five percent of its restaurants
14:04
use onions distributed by Taylor Farms Colorado one as well.
14:08
Speaker 2: They also said that their restaurants get deliveries of whole
14:11
fresh onions and its employees washed, peel and slice them.
14:14
Speaker 3: This the onions were presliced, I see. So look, a
14:19
lot's been talked and written about this. Quite frankly, everybody
14:23
that looks at this has been absolutely shocked that it
14:25
occurred to McDonald's because there's almost no restaurant out there
14:29
that has a better food safety reputation the McDonald's. Few
14:33
that have a worse food health reputation the McDonald's, but
14:36
food safety like they pretty much check all the boxes up. Well.
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Speaker 2: This then gets us to this piece from Bloomberg Opinion.
14:42
It's titles McDonald's missed one lesson from Chipotle's E. Coli crisis,
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And it's like two and a half pages long, and
14:49
the first two pages are all about how much McDonald's
14:51
has done right. Yeah, like, hey, we're identifying the problem quickly.
14:54
Here's what we're doing, like all the stuff that Chipotle
14:57
didn't do back in twenty fifteen when they were havingving
15:01
like outbreaks of everything every week.
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Speaker 3: Yep.
15:03
Speaker 2: Then you get to the last page of this, it's
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it's literally one paragraph and I'll quote uh the company.
15:11
They're talking about how how seriously they take food safety.
15:14
That message would have been more powerful if it came
15:16
from the company's CEO. But what was oddly missing from
15:19
both communications was any sort of acknowledgment or apology to
15:23
those who are sickened by eating its food. That's likely
15:26
the work of McDonald's legal department. So here's the thing
15:30
I'm putting myself. Let's say that I was one of
15:33
the people impacted by this, or a family member.
15:35
Speaker 3: Was, Yeah, somebody died, Like, we shouldn't diminish any of that.
15:38
Speaker 2: No, I'm I'm look, if I had a family member
15:41
that was killed by McDonald's E Coli. An apology doesn't
15:45
make it better, Like you can't say sorry about that,
15:51
so I don't think it matters whether or not. Besides this,
15:54
corporate apologies are the most vacuous, heartless and useless.
15:58
Speaker 3: Things in the world.
15:59
Speaker 2: They they're not worth the paper that printed on They're
16:02
not worth the electrons that show up on your little
16:03
computer screen.
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Speaker 3: And I'm sorry, but that's the state of legal things
16:07
in this country where any lawyer anywhere will tell the
16:12
CEO do not apologize for anything that ever happens.
16:16
Speaker 2: And honestly, I'm fine with it at the corporate like
16:18
I don't want a corporate apology because they don't like
16:22
it's not something like what does it matter? Do you
16:25
remember oh McDonald's apologize, What that makes it all right
16:28
that someone died?
16:29
Speaker 3: No? Exactly. Remember when BP went on that corporate apology
16:33
spree after you know, spraying all the Gulf Coast with oil.
16:38
Does anybody feel like that improved anything? The main thing
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I remember it at South Park, just ripping it to
16:44
shreds during an episode. I don't know that BP did
16:48
anything to, you know, change the public viewpoint on them
16:52
after that event.
16:53
Speaker 2: Do you remember the name of the uh, the drill rig, No, Tucker, uh,
17:00
deep water horizon. Yeah, there we go. Huh yeah, you
17:03
can't teach that.
17:04
Speaker 3: No, that's pretty good. Yeah, so what I'm talking about.
17:07
Speaker 2: So, in any case, I don't care that McDonald's didn't apologize,
17:11
because an apology doesn't help the person who died, like
17:15
it's just and a corporate apology is useless.
17:18
Speaker 1: Anyways, bringing the latest financial news straight to your radio
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17:53
Speaker 2: Let's see what am I going to talk about?
17:55
Speaker 1: Oh?
17:55
Speaker 3: Here we go. Money.
17:56
Speaker 2: That's right, that's that's what we talked a whole premise
17:58
of this show. Actually, I mean I wouldn't say it's
18:00
the whole premise.
18:02
Speaker 3: Yeah.
18:02
Speaker 2: We talked about food a lot too, at least half
18:04
the time, usually in this hour on a Friday.
18:07
Speaker 3: Yeah, yeah true.
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Speaker 2: Any anyways, piece and CNBC, do I have enough money
18:13
to retire? Ask yourself these three questions to assess whether
18:17
you're ready.
18:18
Speaker 3: So let's start with their three questions, Can I live
18:22
on four percent of my portfolio? That's number one? Two?
18:25
When should I claim so security benefits? And three how
18:30
will I withdraw money in retirement? So before we even
18:34
get to answer this to these are these the right questions?
18:36
Are these the best three questions you could ask yourself
18:40
to assess whether you're ready for retirement? No? Okay, what
18:44
are your three? Do you have?
18:46
Speaker 2: I don't know, but it's not these because these are
18:47
basically all three variations on the same question. Yeah, so
18:52
one like the first, like the first one, the first
18:54
one is literally the exact same as the third. Can
18:56
I live on four percent? And how will I withdraw
18:58
money in retirement? Yeah, asking the exact same thing. So
19:02
can I live on four percent of my portfolio? Honestly,
19:06
is a pretty decent starting point because it encompasses so
19:09
many pre questions that you have to ask yourself, how
19:12
much am I going to spend? But what's the difference
19:14
of my spending going to be? But see, those are
19:16
the ones you need to ask because like now you're
19:19
asking three questions, it's really five ten. So I guess
19:22
if you had to pin me down and come up
19:24
with it, right, now, question number one, how much money
19:27
do you need each month? It's the first question you
19:30
have to ask. Question two, do I have places that
19:34
I can pull that money from, so, security, pension, wherever
19:37
it might be? Number three? If there's a difference, how
19:41
do I need to change my lifestyle on the short
19:43
term and or long term to bridge that gap?
19:45
Speaker 3: Yeah? Yeah, Look, whether you look at it from that perspective,
19:51
whether you think the four percent rule is good or bad, which,
19:55
by the way, a lot been written over the last
19:57
few years about the four percent rule maybe not be
20:00
being able to hold true with you know, Goldman Sachs
20:01
predicting only three percent returns over the next decade. Guess what,
20:04
four percent ain't gonna do it? If that's what you
20:07
experience over your lifetime of retirement, and so that haven't
20:12
been said. Sometimes we absolutely criticize an article. No, this
20:15
one gets at a lot of the important points of retirement,
20:18
and I think asking yourself, certainly, if you can definitively
20:22
look at that four percent rule and say, yeah, I
20:25
am definitely going to be okay if I can, you know,
20:28
with four percent, then that's a really really solid starting
20:32
points to be able to approach your time, and I
20:34
think that is if you're trying to just look at
20:36
this with one simple question, that's a pretty good line
20:39
in the sand, a fairly good benchmark. But there is
20:42
a lot that goes into this, and I think one
20:44
of them that's underestimated is how your expenses are going
20:48
to change in retirement. I think gets overlooked pretty frequently.
20:53
You know, everyone spends all this time daydreaming about not
20:56
working anymore, but very little thought or exercise actually goes
21:00
into what that lifestyle is going to cost. Sure, I
21:04
know things that people hate talking about, but you know,
21:08
according to the Boston College Retirement Study, most people are
21:11
going to experience some sort of long term care need
21:14
down the road too, So all of these things come
21:17
into play. It's not as simple as saying how much
21:21
of my income wiould I replace? You know, stick my
21:24
finger in the air. Can I get to eighty percent
21:26
and I'll be fine. That doesn't do it anymore, especially
21:29
with the number of Americans bringing mortgages, for instance, into retirement.
21:33
That's a big change from you know, thirty years ago.
21:37
If you are sitting there assessing this question on your own,
21:40
like I said this piece from CNBC, I don't think
21:42
it's complete garbage and that four percent. You know, if
21:46
you can honestly take a look at yourself and say, hey,
21:49
I can live on four percent or less of my
21:51
portfolio per year when I add in my other income
21:53
sources to cover my expenses, then that is a big
21:57
step in the right direction. But it doesn't answer every
22:00
single question you might have. And if you're looking to
22:02
make that assessment for your own personal situation, the Armstrong
22:06
Advisor Group would love to help. It really comes from
22:09
a starting point of assessing your personal needs, your personal expenses,
22:13
rather than looking at the averages that are out there.
22:15
Because the averages are just that we talk about this
22:18
all the time, they're not relevant to every individual. If
22:21
you have questions along those lines, and we'd like to
22:23
sign up for a free consultation at any one of
22:26
our New England offices from Portland, Maine out to western
22:28
Massachusetts down to Connecticut, we would love to sit down
22:32
with you and chat with you about your financial future.
22:34
The phone number for the Armstrong Advisory Group is eight
22:37
hundred three nine three for zero zero one. We offer
22:41
free retirement consultations across New England and further too. Plenty
22:47
of folks that we talked to over the phone or
22:49
via zoom to try and assess these things with them.
22:51
That phone number, once again is eight hundred three nine
22:55
three four zero zero one.
22:57
Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
23:00
registered investment advisor. Nothing in the ad or in any
23:02
Armstrong guide a specific financial, legal, or tax advice. Consult
23:05
your own financial tax into state planning advisors before making
23:08
any investment decisions. Armstrong may contact you to offer investment
23:11
advisory services.
23:13
Speaker 2: Mike, you excited for the World Series to kick off.
23:17
Speaker 3: A little bit?
23:18
Speaker 2: Do you know what sport the World Series is?
23:19
Speaker 3: Baseball? Got it?
23:21
Speaker 2: So need that one in terms of what we have
23:24
here the uh look, you got the Yankees and the
23:27
Dodgers kicking off tonight. It's what is an eight o'clock
23:32
ita eight? There you go, So eight pm. You got
23:35
this series kicking off, and look it's it's a dream
23:39
from Major League Baseball from just about every perspective. First,
23:42
you get the two largest markets in the country, LA
23:44
and New York yep. Second, you have the biggest star
23:49
in the game and show Aotani on the Dodgers.
23:52
Speaker 4: I'd say in sports, I wouldn't say in sports the
23:55
top five, top five, Yes, but I would not say
23:59
top And you see the media scrum today trying to
24:02
get the show.
24:03
Speaker 2: Totally agree. But I think if if I'm going like
24:08
when when we're talking top like biggest name in sports,
24:12
are we talking what, what's the metric that we're using
24:15
for that? Pure? International? Pure?
24:18
Speaker 3: Are domestic and international?
24:21
Speaker 2: Are we using like endorsement money? Like what what? What
24:24
are we using here? Because I find it kind of
24:26
hard to top Patrick Mahomes right now.
24:29
Speaker 4: Oh, he easily surpasses Mahomes. I don't think so, it's
24:33
not even Mahomes Mahomes.
24:35
Speaker 3: I don't know about I'm.
24:36
Speaker 2: Saying Messi is probably number one. I think he's more talented.
24:39
I think he might be the most talented athlete in
24:41
the world right now. But it's it's tough for me
24:44
to say anyone has like a bigger profile than Patrick.
24:47
Patrick Mahomes won the last two Super Bowls. It's MVP of.
24:50
Speaker 3: Both of them.
24:51
Speaker 5: Yeah, but international, that's my point.
24:55
Speaker 3: Well, I mean, if we're talking international, it's a soccer player,
24:57
not Messi's number one. I don't Yeah, it's.
25:02
Speaker 2: Probably still true. Yeah, Anyways, where I'm going with this.
25:05
If you're trying to get tickets to any of these games,
25:07
the prices are literally double what they were last year.
25:11
The average ticket to get in right now is seventeen
25:14
hundred dollars. That is also more expensive than the previous high,
25:18
which was back in twenty sixteen, when the Cubs made
25:20
their first World Series appearance in seventy years.
25:23
Speaker 3: What do you think average ticket sale price? Where's Game
25:28
one LA average ticket sales price? I would love to
25:32
know this versus Taylor Swift LA concert Swift was higher
25:36
average price?
25:37
Speaker 2: Yes, not even close. Really, it's not seventeen hundred. Get
25:40
in the door to Taylor Swift was twelve to fifty. Wow,
25:46
Taylor Swift, all of these people, it's not even close.
25:51
Speaker 3: And think about how many more shows there were.
25:53
Speaker 2: But that's the thing is you had hundreds of them.
25:55
This there's gonna be a most seventy between these two teams. Oh,
25:58
it's incredible and like they actually win something. It's not
26:01
just the same show that you see each time. Yeah,
26:03
like you never know what you're gonna see. You can
26:05
see show Ayotani hit eighteen home runs tonight.
26:07
Speaker 3: Now, isn't that wild to just think about how much
26:10
Taylor Swift, Trump's anything else that you can buy. It's
26:14
not even close. It's not even close.
26:16
Speaker 2: Let's take a quick break here. When we come back,
26:19
Paul Lamonica is going to join us to talk about
26:21
how big of a stadium he can fill up.
26:23
Speaker 1: Right after this, if you missed any of today's show,
26:27
catch up whenever you want on our YouTube page. Find
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Financial Exchange Radio Network. Ladies and gentlemen.
26:55
Speaker 5: The weekend, the Ultimate Boston Sports Auctions benefit the Disabled
27:01
American Veterans Department of Massachusetts is coming soon. Your chance
27:05
to see the world champion Celtics, the Bruins, the Red
27:07
Sox and the Patriots, plus autograph merch from Pedro Martinez,
27:10
Chris STAPs, Porzingis, Brandon Carlo and much more. One massive auction,
27:14
four incredible experiences, and all to benefit the Disabled American
27:17
Veterans Department of Massachusetts. The auction begins November fourth at
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eleven am. That's Monday, November fourth at eleven am. Keep
27:25
it here on the Financial Exchange and help support our
27:27
great American heroes as promised.
27:30
Speaker 2: Joining us now is the one and only Paul Monica
27:33
from Barons.
27:35
Speaker 3: Paul, how you doing today?
27:37
Speaker 6: Good? Thanks? How you doing?
27:38
Speaker 3: Excited for the game tonight?
27:40
Speaker 1: I am.
27:41
Speaker 2: I think it should be a good series.
27:43
Speaker 6: I'm a little nervous though. That Dodgers lineup is stacked.
27:46
Speaker 2: It is, but that Yankees lineup no slouch is there either,
27:49
So it'll yeah, it'll listen. It'll be better than watching
27:53
the Red Sox was this year. We can agree on that.
27:56
Let's talk a little bit about Sam Altman and and
28:00
his push into nuclear power. So there's a company by
28:06
the name of Aklo, which is they're trying to build
28:10
nuclear power plants. And if there's one thing that I know,
28:14
Paul's been really hard to build new nuclear power plants
28:16
in the United States for about forty years. Are things
28:19
actually changing or is that still the base assumption that
28:23
we have to work from.
28:25
Speaker 7: You know, it's it's not as much I think that
28:27
they would be they would be building nuclear power plants
28:30
as much as supplying some of the clean fishing nuclear
28:33
power technology that some of these AI giants that need
28:38
nuclear energy for to satisfy the major energy.
28:44
Speaker 6: Demands that AI technology puts on the grid. It's really
28:49
more you doing that. So I think there's excitement about
28:52
this company, you know, which went public a couple of
28:55
months ago after a Spack merger, because of some of
28:58
the most recent deals we've had, where Microsoft is going
29:03
to be getting power from the three Mile Island plant,
29:06
which we all know is the site of a partial
29:08
meltdown in the late seventies, you know, from the Constellation Energy,
29:12
you know, major electricity utility company, so that stock Constellation
29:18
is served this year. Amazon and Alphabet are also investing
29:23
in nuclear reactors, So I think the hope is that
29:28
any company that has you know, nuclear energy technology could benefit.
29:33
But you know, Opro, despite having stam Altman and the
29:38
open AI buzz, it's a pre revenue company. They have
29:42
some customers that they've announced, but no stet deals in
29:47
stone just yet, so they're pre revenue let alone, you know,
29:51
pre earnings, and they are losing money.
29:53
Speaker 3: So this is a very speculative bet.
29:56
Speaker 6: I think it's kind of like a lottery ticket and
29:58
you know you've seen it with what the price has done.
30:00
It tanked after it went public in May following the
30:04
blank Check merger, and now it's come roaring back because
30:07
of this Microsoft Constellation deal.
30:09
Speaker 2: So like what, what exactly is the path to them
30:14
even generate Like where is the revenue going to come from?
30:17
Speaker 3: Then? Like what what do they do? Yeah?
30:20
Speaker 6: I mean the revenue is going to come from the
30:23
deals that they have potentially with data center companies to
30:28
sell power to data center firms and defense companies, industrial customers,
30:33
some utilities as well. So when you go through their
30:36
regulatory filings, they have a decent impressive list of some
30:41
companies that could be customers that they have signed up,
30:46
you know as potential deals. So that's the Idaho National Laboratory,
30:50
so a defense firm, data center company, Quintics, Diamondback Energy
30:56
of you know, oil exploration company. So there are real
30:59
companies that could potentially be generating revenue from but again
31:04
there are many other companies that are going to be
31:08
competing in the nuclear startup space. It is by no
31:12
means a guarantee that ACLOW will be a winner. So
31:15
this is just an incredibly speculative bed it's an early
31:20
stage firm that just happens to be a public company.
31:24
Speaker 2: Do Altman's connections that he might have built from any
31:29
of the other stuff that he's doing with AI and
31:31
the power demands of that industry, do they give him
31:34
any unique insight into the space or any unique ability
31:38
to run a company like this.
31:39
Speaker 1: Yeah.
31:40
Speaker 6: I mean, I don't think it hurts that you have
31:42
Sam Altman as the chairman of this firm and a
31:48
board member. Obviously a lot of expertise in the world
31:52
of artificial intelligence. He knows what the energy demands are,
31:56
and I think that is something that is a reason
31:59
why investors have been bidding up this stock. The same
32:02
company without the Altman imprint might not be doing as well,
32:06
particularly when you look at the financials as they are
32:08
right now.
32:09
Speaker 2: Paul, appreciate you joining us. Thanks so much for the time,
32:12
and I hope you enjoy uh the game tonight and
32:15
all the rest that come over the next week or two.
32:17
Speaker 3: Yeah, thank you very much, appreciate it.
32:19
Speaker 2: It's Paul Monica from Baron's talking about Aclow. How do
32:23
you think they came up with the name.
32:25
Speaker 3: I don't know. Some of These things are so such
32:28
bad names. I'm trying to see if the alo should
32:32
be something visual, trying to see what the uh what
32:36
the name comes from, but it's it's unclear. I want
32:40
to talk about weight loss drugs. Oh, here we go.
32:42
Speaker 2: The company's name is derived from Aclow, a region of Gabone, Africa,
32:46
where self sustaining nuclear fission reactions occurred approximately one point
32:50
seven billion years ago. That's better than I thought it
32:52
would be.
32:53
Speaker 3: Yeah, Okay, there's at least some some interesting stuff to it.
32:56
Speaker 2: I think I've talked about this before. Do you guys
32:58
know where the term bluetooth comes from?
33:00
Speaker 3: Like that name?
33:01
Speaker 2: No, Tucker, No, did? I haven't covered this?
33:04
Speaker 3: Then? I think you might have and we just forgot.
33:06
Are you familiar when you start talking, we just start
33:09
going elsewhere? Are you familiar with Harold Bluetooth?
33:13
Speaker 1: Yes?
33:13
Speaker 3: You have talked about this.
33:14
Speaker 2: If Harold was a Viking who his main goal was
33:17
to try to unify all of the Nordic tribes because
33:20
he believed they were stronger together. And so the person
33:23
or the people that came up with bluetooth named it
33:25
after him because they thought that it would bring devices
33:27
together and make them stronger. How do you think he
33:30
got that name, Harold Bluetooth? Probably because he had red teeth. Yeah,
33:39
what do you got from me, Mike?
33:41
Speaker 3: Big food seems to be learning how to handle the
33:44
weight loss drugs from ozempic and Manjaro. Interesting study that
33:47
was done of a thousand people on the drugs using
33:50
GLP ones for weight loss, a net thirty eight percent
33:54
said they were eating fewer cookies, pastries and cakes. That's
33:57
followed by carbonated soft drinks, chocolate, handy and fast food.
34:02
More than a quarter of folks in this survey of
34:04
a thousand people found that they were eating less in
34:06
those four categories. And it seems to me that the
34:10
food industry is reacting quickly. A number of different companies
34:13
putting new things out there. But I think my takeaway
34:17
is that smaller portions can probably be more profitable and
34:21
more poultry thinner portions fatter margins. The study found that
34:25
they were eating nineteen percent more poultry.
34:29
Speaker 2: Cluck, cluck, cluck. As we head towards the top of
34:32
the hour, the Dow is now down ninety six points,
34:34
the S and P is still up twenty six NASDIC
34:36
up two O two have a great weekend.
34:37
Speaker 3: We'll see a Monday