It’s the first of the month — a big day in the 7investing universe — and we’re really excited about our March picks. We’ll celebrate by talking about the new Johnson & Johnson single-dose vaccine that the FDA just approved and we’ll look at whether it makes any sense to move into “recovery” stocks as the economy begins to move more toward normal. The answer isn’t simple and it probably isn’t what you’re hearing elsewhere.

Transcript:

Samantha Bailey  0:15

Welcome to 7investing Now, a show that teaches you how to take a long term view on investing by better understanding what’s happening in the market now.

Dan Kline  0:25

Good afternoon 7investors and welcome to the Monday edition of  7investing now it’s the first of the month. That is a big day for us here at  7investing. That means our new stock picks are out. So if you’re not a member, what are you doing? Go join 7investing.com slash subscribe. We’ll wait for you we’re gonna we’re gonna vamp a little bit at the top of the show. So you have a few minutes to go join $49 a month or $399 a year. That means two months free. I’m joined today by Maxx Chatsko. max, how was your weekend?

Maxx Chatsko  0:55

Pretty good, pretty good, hectic end of the month for us. You know, we’re trying to get everything ready and on the website and everything but it’s all there for everyone to look at. So go check it out.

Dan Kline  1:04

We’ve asked the US government to make the first of the month always like a Wednesday or something convenient for us. But it falls on holidays like I was shocked at New Year’s Day fall fell on the first of the month this year. Like that was very inconvenient for us. And two months in a row falling on a Monday, which caused me to get I don’t know 85 slack messages after 10 o’clock last night. And I gotta say I’m not the most functional person I was trying to make sense of the Golden Globes. I’m pretty sure and Max, I know you’re not super into pop culture, I am pretty sure 60% of the movies and TV shows that one are nominated for Golden Globes aren’t real, because I’d never heard of any of them. Emily in Paris, that is not a real show. There’s no possibility. That’s a real show, but Maxx before we talk about our two big topics that we’re going to talk about the new single shot Johnson and Johnson vaccine, then we’re going to talk about what I think of as the myth of recovery stocks.

But before we do that, you’ve all heard me complain about customer service on this show. And I want to share sort of a positive story. So I shared on Twitter that I love Starbucks, and I tweeted this to Starbucks, I love I love Target. But how come when you put a Starbucks in a target, it is the least competent Starbucks there ever is. And there’s a reason for those employees are target employees, not Starbucks employees. But within maybe 10 minutes of me sharing that I got a message very quickly from the people at Target from the as target group. And they asked me to DM them what store I was talking about and what my complaints were. And I sent them the information I said I don’t want to get anybody in trouble. It’s it’s, it’s always the fact that there’s only one person working that’s not the person’s fault.

And I said like if you go during a busy time in the morning, it always takes forever because there’s one person so he or she has to take an order fill an order. And when I went in on Sunday, there were two people working. They told me they would solve the problem. And I believe they actually solved the problem. Maxx you’re not a coffee guy, right? But you’ve been in a Starbucks, right?

Maxx Chatsko  3:01

Yeah, more of a more of a tea guy. But I am one of the ways that one of the many ways I let my team down here at seven investing, I only drink decaf. So

Dan Kline  3:09

Yeah, that that’s disappointing. I’ve tried to cut back I only drink one cup of caffeine a day, I actually make my own decaffeinated cold brew, which is just embarrassing. But that being said, I like that at Target has a whole team that addresses problems. That’s what more companies should be doing. We talked about earlier last week that I had an issue with Doordash where they brought two of our three entrees. And their solution to that wasn’t going to pick up my third entree it was to refund me for the third entree and I live tweeted at them and I tagged them in my tweet, and they did not answer and that tweet is a dozens of responses. Terrible, terrible customer service. But Maxx we’re gonna pivot Our top story today. Part of it is the new single dose Johnson and Johnson vaccine. Why don’t you give us a quick overview of what happened over the weekend?

Maxx Chatsko  3:57

Yeah, so on Friday, I don’t know why they always tend to do these on Fridays. They seem like big events, but an FDA panel recommended the Johnson and Johnson vaccine for the new Coronavirus chain for approval. Then over the weekend, the FDA gave it the green light, the emergency use authorization that is it’s not formally approved. Neither are any of the other vaccines for that matter, but now it can be distributed as the important part. So that should be coming out this month rolling across various places the United States.

Dan Kline  4:24

So Maxx You know, I’m vaccinated because I went and volunteered and some states of Florida has just moved to 65 Plus, with a note from a doctor, if you’re younger, you can get vaccinated if you have a serious health issue. Connecticut just moved to 55 plus, which is likely the biggest group of people so it’s absolute chaos. How quickly or when are we going to move from this like competition over getting vaccines lots to walk into just like you would a flu shot, walk into your local CVS and there’s a vaccine there or go to a hospital that has the facilities needed for the Pfizer or the moderna vaccine and you can get it pretty easily How close are we to that?

Maxx Chatsko  5:02

I think we’re probably still a month or two away from that, but it’s only going to get easier every week. I mean, we have you know, moderna and biotech and Pfizer, each respectively making you know more of their supply available. And now, of course, we have Johnson and Johnson, you know, with a whole new vaccine entering, and that’s going to change a lot of the logistics for vaccine, you know, rollout broadly for the whole country.

Dan Kline  5:26

So we would love your questions and comments, in theory, wherever you’re watching this, if you share questions here comment, we’re going to be talking recovery stocks later in the show. And then in the last segment, we’re gonna do no stupid questions, which is really where we just take your questions from Twitter from the live audience and whatever you want to ask us about, we will try to talk about it. So the reason we’re talking about vaccines isn’t just because, you know, Maxx has a biomedical background, it’s because the sooner 70% of the population and Maxx correct me if my numbers are wrong, has the vaccine or has had a serious case of the of the Coronavirus, we will be approaching herd immunity or at herd immunity.

And that’s when we can hit normal. So when we talk about recovery stocks in the next segment, that’s going to mean things like okay, I might still have to wear a mask, but like I could go visit a group of people, I might be able to go to a concert, I might be able to go, you know to places that you know right now casinos might be able to allow eight people at a card table instead of for whatever the numbers are. So that’s why we’re talking about this. But Maxx there are three different vaccines and you see all sorts of percentages and numbers. This is 65%. This is 95%. The Johnson and Johnson one in the surface reporting has lower numbers. But are these apples to apples comparisons? Are people missing something?

Maxx Chatsko  6:41

Yeah, it’s really tempting right to look at, you know, the numbers in the in the headline, and to look at the efficacy rates and compare those across all three vaccines we have now. And that’s not really the way to go about it, you know, for one thing, you know, the moderna and the Pfizer vaccines, each required two shots, so they’re gonna have higher efficacy and effectiveness just right from that. Also, these studies were conducted different points in the pandemic, you know, Johnson and Johnson didn’t start each trial until July or September, you know, so it started its major vaccine trial, when more contagious variants were spreading, right, we’re at a different phase in the trajectory of the pandemic. So that affected some of its its numbers as well. But the important thing is that, you know, the Johnson and Johnson vaccine is effective, it’s safe.

You know, the, from the phase three trials said it was 72% effective in the US. And it was less effective in other countries, right. They ran trials in South Africa, and other one in Europe, I think. And those were less effective, not because the vaccine was less effective against those variants necessarily, but also because of the the delivery technology that the Johnson Johnson vaccine uses. So some people were just naturally resistant to that delivery technology. So the vaccine didn’t even get a chance to, you know, do its thing within their bodies. And we just born that out at the FDA said that over the weekend. And last week, you know, the Johnson Johnson vaccine is actually the most effective one we have now, against some of these emerging variants. There’s a South African variant UK variant looks like California and New York might have their own variants now. You know, so this is a very big, you know, development here, not just having three vaccines, but this one can be shipped and stored at, you know, refrigerator temperature. So, you know, I see this maybe shuffling where the supply for the other two vaccines end up going right? You know, Walmart’s going to become one of the largest vaccine distributors, you know, in the whole country, and it’s in rural communities, right? out of places that, you know, the bio and tech and the Pfizer vaccine, or I’m sorry, the moderna vaccines can’t get to you necessarily, it’s not very easy. So I see Johnson and Johnson, maybe going into more of those communities. Maybe the you know, the the Pfizer in the moderna vaccines go to more suburban and urban population centers, where it’s, you know, they have more infrastructure in place for the the freezers and things like that. So this moves a lot of the logistics out both directly and indirectly, Dan.

Dan Kline  9:09

So to put it short, this is really, really good news, great economic recovery. And I’ll quote indirectly, Dr. Fauci a little bit, the best vaccine for you for like 99.8% of people is whatever vaccine is available, because as we look at these different efficacy rates, what they’re missing is the Johnson and Johnson vaccine is, I’ll say nearly even though it’s actually 100%, but it’s nearly 100%. Because I have the data to actually say 100% able to protect you from severe cases of the illness and death. So here’s the reality, if you can take something that turns what would have been a severe debilitating bout of COVID-19 that might put you in the hospital, which increases your risk and all sorts of other areas with infections and who knows what going on and turns it into an annoyance where like you don’t feel great for a week or two. That’s not fun, but that’s Great, like if you told, you know, if you told me I could get a terrible flu that might turn into pneumonia, or I could have the sniffles for two weeks, I’m obviously going to opt for the sniffles. So if you can get the Johnson and Johnson vaccine, get it don’t go vaccine shopping try, the more of us have this faster. And it’s worth noting that they’re doing trials of a second dose, a dose of the second dose of the Johnson and Johnson vaccine at 57 days. And the idea is to see if that boosts the efficacy, we might see with all of these vaccines, that there’s a third dose of the ones that take two or a second dose of the one that takes one to deal with variants to boost immunity. There might be people who when they go to their annual physical, the doctor takes their antigens and the levels aren’t high enough.

So this is an emerging science, even though we know a lot about vaccines, we don’t know an enormous amount about the long term effects of these particular vaccines, or how they react. So next, we’re gonna pivot to recovery stocks. So let’s talk about what a recovery stock is because I find this whole notion, silly. So the idea was that during the pandemic, everybody invested in tech companies that like, wow, we’re all stuck at home. So I’m going to buy zoom and teladoc, and Microsoft and Apple and who knows what, almost all of those, in fact, all of those really good companies, no matter how you look at it, and then post pandemic, I’m going to pivot to hotel stocks, airline stocks, cruise line stocks, and maybe like, you know, event based stocks. And here’s the fundamental problem. Most of those are bad businesses. So I find these ideas, this idea that there’s going to be recovery sucks. Maxx I find this inherently flawed. Do you disagree?

Maxx Chatsko  11:43

No. Yeah, I agree. 100%. Like you said, how many of these were good businesses before the pandemic, you know, they might get a boost for a quarter or two, maybe and investors might get a little overexcited about those things. But a lot of these were not very great investments or businesses prior, right? I mean, my example would be natural gas, right? We use natural gas for everything heating homes, it was 40% of our power mix last year. Good luck trying to find a good natural gas stop for the long term. And most of those just lose money. It’s a commodity, it’s everywhere. I can drill a hole in my backyard and probably find natural gas. Here in Pittsburgh, we’re sitting on tons of it. So it’s just the whole recovery stock ideas. Not a good one, I don’t think

Dan Kline  12:26

Yeah, and let me give you a good example. So Starbucks, during the worst of the pandemic, sales were down about 30%, they did a pretty good job of pivoting very quickly to a curbside pickup drive thru delivery model. So you look at Starbucks and go, Wow, they’re gonna have a lot of sales when they can reopen their dining rooms, which are in some cases, like here, there’s tables outside, but you can’t eat inside. And there are places where Starbucks dining rooms are open. But if you look at their stock price, it’s hovering around, it’s 52-week high. So any recovery, you’re gonna see, there already was, and it’s one of those scenarios where, Max, do you believe that? You know, maybe for a few weeks, there’ll be a bounce back where Starbucks does, you know, 20% better than it normally would have in terms of customers just rewarding themselves? But do you think people are going to drink a lot more frappuccinos on an enduring basis? Once they’re allowed to go back to normal?

Maxx Chatsko  13:19

No, no, that’s, you know, I like again, this summer might be pretty fun, right? For some people or whatever, right? People are gonna be going out, go to concerts if they can, or maybe that’s in the fall? I don’t know. But you know, it’s going to be temporary. It’s going to be a temporary tailwind, just like the pandemic was a temporary headwind, right. So yeah.

Dan Kline  13:36

And so people are very excited about airlines. And here’s the reality with airlines with the exception of Southwest. And some people say Alaska Airlines. I don’t know that one that well, but of the major airlines, they’re not great businesses and Maxx, you can weigh in on this in a second. So you had to this summer, they might be able to raise prices for later book travel. Right now. It’s very inexpensive to book travel, I have a trip coming up in a few weeks. And I needed to make a change to that trip. And Southwest actually gave me money back. Because when I went to rebook the new flights, which were more convenient flights, under any circumstances, were cheaper than the old one. So if you’re selling airline fares for $59, or $79, that you’re usually four or $500. That’s not going to really be a comeback. And Maxx there’s reasons these aren’t great. Airlines aren’t great businesses, right?

Maxx Chatsko  14:29

Yeah. Again, you know, whatever recovery stock you want to look at, or industry, what were the metrics that mattered before the pandemic? You know, for airlines, it might be things like, you know, customer service, or oil prices, right are probably in this decade, like greener routes and more efficient airplanes. So that doesn’t change just because more people will might be flying suddenly for a few months, right. I mean, so again, it’s all pretty short term thinking.

Dan Kline  14:54

And gas and oil prices are relatively low right now but we are going to see as we open up More people go back to work, we’re gonna see a demand driven increase whether supply is actually constrained or not, there’s, there’s an ability to raise prices, the more people want something, gas prices often are based on demand. They’re not always based on demand. Sometimes they’re opportunistic in terms of their ability to get them. So I would be very wary people ask me about casinos a lot. I love to play in casinos, I don’t generally consider casinos all that great a business, it’s very capital intensive. You have to keep innovating digitally.

You have to keep you know revamping your hotel rooms every few years building new properties going into markets. These are very, I’m not saying there aren’t winners in this space. But we don’t see a lot of questions and comments. So we would love we know a lot of you were watching, we would love your questions and comments on recovery stocks. But let me make a case for one airline max. And you could tell me if I’m crazy, just Southwest has traditionally been the best managed airline. And I think they’ve done a great job with their employees, their employees have been part of the discussion.

Should we all take 20% pay cuts to get through this to some people want to take furloughs so other people don’t have to, they’ve been very open and transparent. They’ve also maintained a pretty solid balance sheet, even though they’re lost money for the first time in their history for obvious reasons. And they’ve been able to capitalize and move into new routes and marketplaces. So I would argue that Southwest was a fringe investable business pre pandemic. I think it’s possible. And this is not an investment I’d make until we see what the recovery looks like and how, you know, have people found that they like traveling in their RV and they don’t want to fly as often or business meetings truly become more zoom based. But I do think Southwest if we return to some sort of normal, has picked up some very profitable areas, and might be the one airline that comes out of this measurably stronger Maxx. Is that crazy?

Maxx Chatsko  16:52

I guess that makes a lot of my wheelhouse but Sure, yeah, you know, there’s always differentiators. And that’s important to like you pointed out, even if we think airlines as a whole might be not a great idea for like long term investing. There’s always opportunities within each industry. Right. So we’re not saying like, never buy an airline?

Dan Kline  17:11

That, uh, yeah, in general, I say never buy an airline. But I know there are exceptions to that. And Maxx, do you think tech companies, you’re a user of tech companies? Do you think tech companies are going to like have some sort of massive crash once this ends, like, we’re still gonna, I’m still going to use my Mac to do this live show, we’re still going to record team calls on zoom. We might have some in person meetings, but I don’t see this, like massive like, we’re not all of a sudden going to start like making fire with like a flint and a rock. Like, it doesn’t make any sense to me.

Maxx Chatsko  17:41

I’ve been learning how to do smoke signals all pandemic, Dan, you wait. Yeah, no, I agree. I mean, that’s another reason that some of these recovery stocks are like, people think they’re gonna transition from tech stocks to recovery stocks and try to time it that way. Or there’s some play there to be more defensive. And it was kind of flawed. I mean, a lot of tech companies are great businesses before the pandemic, during the pandemic, after the pandemic.

What I see then is probably that the pandemics accelerated some trends that were already in place, it’s more likely that, you know, it’s pulled some of these trends and accelerated them by a year two or three. It’s not that we’re not going to use zoom anymore, we might use it a little bit less. But I think it’s pretty ingrained in and how business gets done now. And that’s not going to change just because, you know, we can go out to a restaurant or see a concert

Dan Kline  18:28

minesh gammie asked a question that fits really well with where we were going anyway. What non recovery stocks and trends Do you see enduring and what impact in this have on recovery stocks? So we both made a list here and I look at I say strong companies showed their strength, Amazon, Walmart, Target, apple, Disney. BestBuy did a good job, Dick’s Sporting Goods did a great job. So it’s one of those scenarios where this accelerated part of the story Disney plus would not be whatever it is 90 something million subscribers, if we hadn’t all been locked in our house and really looking for things to do, wouldn’t be there now.

But would it be there 18 months from now? Yeah, absolutely. You can’t skip one division or fat Winter Soldier and the Falcon or, you know, the Mandalorian or re and the last dragon which comes out in a couple weeks. Like, if you have a family, if you like that kind of content, you are going to get those channels at some point. And I think the same is true for everything that Walmart Amazon target are doing with, you know, accelerated delivery and curbside pickup. We’re seeing the trend accelerate, but winners are winning Maxx, you have some companies in your list as well.

Maxx Chatsko  19:36

Yeah, Dan, you took all the easy ones. So I went with, you know, I think electric utilities, right? When the in March, like everybody was like, Oh, you know, how’s this going to affect? Last March rather? Oh, man, it’s already March 2020. Wanna? So last year like when the pandemic hit, nobody knew how it’s gonna affect anything. There’s so much uncertainty. But you know, people are at home using electricity still. Yeah, there’s like less revenue coming in. from industrial and commercial customers, but there’s higher margins on residential customers anyway. And you know, those are big, stable businesses, they have a lot of interesting trends to that they have to invest in, in this decade, right renewable energy, they also have to invest in electric vehicles to prepare for the more, you know, more power sales, they have to come up with more supply. And also they’re going to own a lot of the infrastructure, charging stations, new transmission lines and distribution lines. So I think electric utilities are going to be just fine. After the pandemic as well. I also chose Johnson & Johnson and not because it is a vaccine manufacturer here, that’s one of the most important companies right now for the pandemic.

But you know, it’s it’s played its head very well during the pandemic made a lot of really smart partnerships and some future oriented industries and technology platforms, right with smaller companies in genomics or multi omics or cell therapy. So it’s, I think, well positioned for the future. And as the largest healthcare company in the world, you know, it can raise a ton of money, and maybe go make some acquisitions. Even if some of these smaller companies have some frothy valuations. You know, if Johnson and Johnson can issue some stock at all time highs, and it might be a good idea. And

Dan Kline  21:13

Plus, Maxx a lot of pandemic babies at Johnson and Johnson has no more tears shampoo market absolutely cornered.

Maxx Chatsko  21:20

That is true. That is true. Yeah. Wait, thank you for supporting my argument there.

Dan Kline  21:24

You also want to talk about Microsoft is having a pretty major healthcare opportunity.

Maxx Chatsko  21:29

Yeah, Microsoft, you know, that did well during the pandemic for tech reasons. But what doesn’t get talked about a lot is, you know, it says your platform is actually used a lot in healthcare applications, right? This is powering a lot of the, you know, we call it the genomics revolution, or whatever you want to call it, I think it’s more of a multi omics play. And you know, Microsoft’s very well in green, they’re quietly kind of powering that digital transformation for a lot of those businesses. So I think Microsoft’s can be a good company here, coming out of the pandemic, for reasons that maybe aren’t so obvious right now.

Dan Kline  22:02

You’re watching  7investing Now we’re gonna take some of your questions in a few minutes that are relevant to this segment. Then we’re gonna have a quick Happy Birthday seven investing message from our founder and CEO Simon Erickson, then we’re gonna come back with a segment Maxx named it’s called no stupid questions, and I asked this morning is that Maxx saying, Hey, don’t ask us any stupid questions? Or is that saying there are no stupid questions? And I would argue having worked in retail for a few years, there are definitely stupid questions. But not of course, from the seven investing audience, Maxx, are there any pandemic winners that you think are really going to struggle when we get back to whatever normal looks like?

Maxx Chatsko  22:41

Yeah, I chose Moderna as the obvious one, right. I mean, its market valuation is its price as if it’s like, a giant, massive, you know, drug developer, and obviously, is going to do pretty well, because of its, you know, technology platform and making a vaccine here for the pandemic. But it still doesn’t have any other drugs approved. It’s, it’s going to have others but it’s going to take some more time, you know, and it has a very diverse technology platform. I don’t doubt it will succeed. I just think its market valuation is a little ridiculous. And you know, it’s possible in my mind, if you invested right now, you might never see returned or you know, maybe not for five or 10 years. It’s just drug companies in this state of maturity that moderna is in are not ever priced, where this company is priced at. So there’s just too much optimism right now. baked into those shares.

Dan Kline  23:36

Yeah, I’ll throw one out that’s doing really well. And I’ve mentioned it before, but it’s Kroger. And it’s not that I think Kroger is a badly run business. I think they were testing some interesting things with food halls and ways to turn it its grocery stores into destinations, but they’re coming up against the buzzsaw, that is Amazon, Walmart and Target in a business where those three major players don’t have to make money. So I don’t feel great about any grocery pure play. But I do think Kroger has been artificially doing very well because basically any place that has paper towels is going to have you know people storming in and trying to buy supplies.

And I don’t necessarily think they’ve built that loyalty where people are shopping there because they want to go to Kroger, they’re either going to Kroger because it’s closest and that can be displaced by delivery or they’re going to Kroger because wherever else they might go to was out of their kitty litter or their dog food or the exact you know, cut of beef they were looking for. So I think Kroger is gonna have a very difficult road and I’d love to say you know that Papa John’s has had an artificial rise where pizza delivery has done very well but I’m not going to go quite on the limb because I do think Papa John’s use this as a as a chance to, you know, no longer be the racist pizza company and have like, like a whole different take him that wasn’t their slogan, but that was clearly like what they become known for in the public eye. So Maxx, I’m going to throw out a question that obviously you’re not a doctor, I’m not a doctor. So we’re gonna relay things we’ve read on this question. Drew blust 22 says, Do vaccines help prevent transmission? to other people? I will say that what I’ve read is anecdotally, probably is that is that correct? Maxx?

Maxx Chatsko  25:17

Yeah. Dan, you’ve asked me a couple of times. So I actually looked into it recently. That is the case, it does look like that is likely that’s but of course, this is science and health. So we have to actually test that within, you know, actual studies before we go out there and say, hey, look, it doesn’t, you know, you can’t transmit it anymore. Because if we’re wrong, whoops. So it looks almost Yes. Probably data from a study. So I’ve

Dan Kline  25:43

read up on this extensively, because I’m vaccinated and planning to travel and my wife is not in my 17-year-old son is not and probably would be like the last one. And from what I can take it is it’s less likely I pass on a severe case. But that certainly means I need to take all precautions wherever I am. So masks and distancing. And, you know, when I get home, like you technically don’t have to quarantine if you’ve been vaccinated. But I probably will maintain a distance just to, you know, just to make sure, because, frankly, we’re all sick of each other anyway. So me going away for a week and then staying away for another week is not is not the worst thing in the world.

Maxx Chatsko  26:17

Yeah. If I can add, yeah, just based on how, you know, the immune system works and biology works. Or it’s almost certain that that would be the case that if you’re vaccinated or have been infected, you would not transmit it in the future. Not a severe case. But like you said, I think some of these behavior changes are going to stick with us. Maybe for the next year or two, or maybe longer. I mean, I could see myself wearing a mask next winter just to play it safe. Even you know, I don’t want the flu either. Right. So

Dan Kline  26:42

I have to say, I’ve made a mild change Maxx I now when I’m walking outside, carry my mask. No, no, I carry my mask. And the second I see someone because I live in Florida. So nobody in my complex walking their dog is wearing a mask or going to the pool is wearing a mask, but I carry my mask. And as someone gets within 30 yards of me I put it on, but I no longer keep it on for my entire walk. And that’s only because there’s not a lot of people outside when I’m walking. It got very, very hot here. And there’s nothing worse than a sweaty mask.

So you know, that’s a slight change. But that’s not a change to safety. That’s not a change to respect for others. Justin Lam says up in the Pacific Northwest. Alaska has been known to have the best customer support similar to the type of comments you make in regards to Southwest. I’ve heard that as well. I’ve heard Alaska Airlines has a lot of those consistencies. I’ve never flown Alaska Airlines. So it’s one that I’m not going to consider an investment in an airline until I’ve used it. There’s only I think it’s four states I haven’t been to maybe it’s five, North Dakota, South Dakota, Hawaii and Alaska. There’s one other Oregon I want to say.

So perhaps at some point, I’ll get to fly Alaska Airlines to go visit to cross that off. So Max, as we close up this segment, I’ll throw it one and then you can throw out a few. What should investors Be wary of in the coming year? And for me, it’s beware of how comparisons are made. So we love in retail, we love in tech, you know, comp sales, what did we do last year? And what did we do this year in retail, I think it’s gonna be really important to look at margin.

Because if you sold a whole bunch of rice and beans and paper towels at low margins, and then next year, you sell a lot more steak and other things and lobster and whatever, that’s higher margin, but your overall sales are down. If you made more money, you made more money. So I think we’re gonna have to throw out the cursory look at some of these numbers. We’ve had a lot of stocks fall, those numbers are great, but what will the comps be? Not like next year? Who cares what the comps are like? You’re right. We all bought laptops and desks and things like that. So is that a big question from Best Buy in a way fair it is, we’re all still going to eat next year. So we’re still going to need to go to grocery stores, we’re still going to need to go to restaurants, but what we buy may change. So you really need to look at sort of the underlying numbers, not the top line numbers. That’s what are you looking at? That’s going to look a little different?

Maxx Chatsko  29:08

Yeah, I would say that and from a different angle. So this is going to be a tricky like year or two period where investors can’t just look at your growth percentages. Some are going to be down because last March and last, you know, first and second quarter of 2020 we’re we’re pretty terrible for some businesses and more so for some industries, so it’s going to look bad or better, for that matter, you know, this year next year. And additionally, I mean the companies that are still riding you know, pandemic tailwinds company, I own replicant it makes products for manufacturing biologic drugs. So, it’s sold, just you know, goes just gangbusters equipment sales to you know, vaccine developers and antibody developers for the pandemic. And it said this year, it’s still riding that still gonna get like 20 25% of its total revenue this year, from basically, you know, pandemic drugs that are being manufactured. But eventually that bill is going to come due. Maybe you chose 22 or chosen 23. I mean, it’s still good business, it’s still growing. But eventually that’s going to fizzle out and kind of roll off the the income statement. Another thing I’d like to touch on, Dan is, you know, there’s a lot of speculation in the market.

Now. I talk about that a lot. But you know, eventually that bill is going to come due to there, there’s a lot of companies going public that no revenue, and maybe you just hear about on social media. Or maybe the technology is not even that good. But they tell a really good story. And they have some really, you know, swanky looking investor presentations. And it’s very difficult sometimes for investors to tease out, you know, the signal from the noise. And, you know, one great example, this has been Nikola. You know, people were sent critiquing that for a while, and people just kind of cast aside bad information and negative information. And then later it came out that Yeah, maybe Nikola did hype itself up a little bit too much.

And maybe GM didn’t do enough due diligence. So I think that was just the first example. I think there’s gonna be quite a bit more of those examples. This year, and in the next year, you know, and we’re gonna see it when they’re reporting earnings. I mean, are they growing sales at the numbers, you think they’re going to probably not some of these and, you know, people aren’t going to pay like 200 times sales or more, or, you know, sometimes these companies don’t have any sales. So eventually, people are going to get bored, and it’s might not be good.

Dan Kline  31:24

I also think we’re gonna see it with some of the SPAC and direct listing companies. And it doesn’t mean these are bad companies. But Maxx, if you and I started a company, we fully believed it. And we know we’re three years away, but somebody comes to us and says, it’s really easy to raise money now, go out and raise $2 billion, and guarantee that at least you’re gonna have enough money to get your vision out there. That’s gonna mean a couple of years of quarters, we’re like, yeah, still working on it, thanks for the money.

You know, and that’s what a lot of these very speculative plays are going to be. That’s not true of every SPAC, that’s not true of every direct listing, but you are seeing companies come to market that are not ready to come to market because the money is easy. We saw this in the 90s. The difference is you can see a path to profitability for many of these companies. And the cost of computing pre cloud in the 90s meant that it didn’t matter how great your animation, you know, delivery company was the technology on the consumer end and on the cloud on the hosting end did not match up to profitability. That’s not true right now.

But if you throw out the word sports betting, somebody throws you $2 billion. Like and you know, if I said, Yeah, it’s gonna be a cloud based sports betting, tied to pizza delivery, totally, I get four or $5 billion. And that would make no sense. So you got to be really careful. If you believe in something long term, that’s great. But that means long term, I own most of Max’s picks for the last six months. And I look at them and I don’t worry that they’re down. 10%, down 2%, up 3%, whatever the number is, because I didn’t buy them. Based on the short term investor sentiment, I bought them based on what they’re if there’s a drug company, what’s their pipeline look like? Where are they going to be in five years? I don’t care what they are based on speculative investors right now. But Maxx, it’s the first of the month, our new picks are out. So let me do a quick word on that we spend every month researching our best idea, each one of us picks our best idea. So I might have three things I want to invest in my pick this month, is the number one thing I put my own money into, or tell my friends and family about. We are really proud of it. And you can of course, subscribe at seven investing.com slash subscribe. We’re going to be talking a lot more about our picks what goes into it, we’re going to be talking about the amazing new search engine in our site powered by Yext, which, if you go, Hey, I think Dan and Maxx talked about the maternal vaccine, you’ll be able to search on our site, and you’ll get to see all the show transcripts where we in fact, talk about the moderna vaccine. But before any of that happens,

Sam Bailey It is our birthday and we have a message from our CEO Simon Erickson.

Simon Erickson  34:03

March 1 2021, will mark our very first birthday with 7investing. One year ago, we founded the company to empower you to invest in your future. And we’re doing something fun all month to celebrate this event. We’d like you to submit your stories of how seven investing has helped you on your investing journey. Do our stock recommendations give you actionable ideas to put into your own portfolio?

Does our podcast and live stream give you up to date developments on the important business stories that are going on in the news? Or is there something else that we’re doing that’s helping you to empower your financial future? Please submit your ideas to us either on Twitter by tagging us @ 7nvesting, or by sending us an email to info@seveninvesting.com. At the end of the month, we’ll be pulling seven of these stories and awarding a free one year subscription to seven investing. Thanks again for sticking with us this past year and we’re really excited to see what future will hold. We’re here to empower you to invest in your future. We are 7investing.

Dan Kline  35:07

Wow, Maxx that is exciting news, we’ll have more details we’re gonna have Simon on. I don’t know if it’s Wednesday or Friday, but we’ll be talking about our birthday, we’ll be doing a whole celebration where all of us are on. So there’s a lot to come. But we are now for the last segment of the show. We’re gonna do no stupid questions. So if you have some more questions you’d like to have us answer off, feel free to put them in the queue. Justin will buy the beer. If I ever make it to Oregon. I will be more than happy. The other two North and South Dakota convinced me why I need to go there. Like I said a lot of places. I am not sure I need to hit those two. And as much as Hawaii seems nice every time I see guy for Yeti on there, the restaurants always making spam. And that makes me very concerned about the underlying culture. I’m

Maxx Chatsko  35:52

kidding. Wait, you’ve been to Montana?

Dan Kline  35:55

I have. So I spent my early career editing trade magazines, and one of them was called band and orchestra. And in the year I edited band and orchestra I went to like band state band conventions in like 30 states. I’ve also done some pretty extensive driving trips where I’ve hit some states that I really didn’t spend a ton of time in. But I was physically in them. But in my early days, I did travel quite a bit. But we’re so we’re gonna do no stupid questions. And this one comes from solid what I hear on Twitter, what will happen next in the food delivery space, something has to change. No, my usual dish is $10. But on doordash, it’s $12.50. Well, third party delivery, always when wouldn’t in house delivery be more beneficial? So, Max, I don’t know if you order in as much as I do. But I order in a lot Do you order in sometimes?

Maxx Chatsko  36:44

Yeah. Every once in a while?

Dan Kline  36:46

Do you know if the food is marked up? Because it’s not always but sometimes it is? Do you have a sense? So you track it well enough to know that?

Maxx Chatsko  36:55

Yeah, some restaurants do. There’s a really good wings place here in Pittsburgh. And it’s actually in a couple different cities called wings over and then just whatever city name it is, and they are much more expensive on like Uber Eats or any of those services. So I usually just go and pick it up if I if I do order. We

Dan Kline  37:11

had a Wings Over Newington, when I lived in Connecticut. I have no idea if it’s still there. But we used to get the I think was the 747. They all had different plane names. Yeah, not not a bad wing. Yeah, I think the third party delivery model is broken. And it’s only going to work. If there’s more transparency, I need to know like when I’m on instacart, it tells me flat out prices will be higher. And that’s okay, because I order instacart when I literally need groceries and do not have time to go to get groceries. But I feel like if you told me doordash is always 10% more expensive, plus the delivery fee.

And then some restaurants would say hey, we don’t mark up our price, but we charge a higher whatever it is, it should all be transparent. I think you’re going to see more restaurants follow the Domino’s model. And that might require regional innovation or Shane’s partnering up you know, maybe a couple of like minded restaurants, you know, get together and say let’s hire third party drivers together, we’re on the same block. But Domino’s is super duper reliable. Doordas,h Uber Eats, Postmates, Grubhub. Here in West Palm Beach, we have Cravvy, the Delivery Dudes, I’m not making any of these up. None of them are reliable, and none of them are good. So yes, I think it’s broken. I think the pandemic has shown us that unless we had drones and fully automated driving, which I don’t think are going to be all that compatible.

Because even if you have automated driving, so I have to go to my driveway and get it out of what like a slot in the back. Like there’s a lot of this that just doesn’t play out. So Florida Boy asks, Do you do options trading? never done it before looking to start Max? Can you like burst into flames? or do something to show sort of dangerous? This is?

Maxx Chatsko  38:55

Yeah, I don’t do options trading. I don’t even know how it works, to be honest. But I wonder if this question, you know, on Reddit at least, and maybe on Twitter too. People post pictures and snapshots of like, you know what their options look like. And they’re up like hundreds of 1000s of dollars or millions of dollars sometimes. So I think that makes people ask questions like this, but you don’t see all the screenshots of people who’ve lost all their money, you owe a bunch of money on margin or something so

Dan Kline  39:24

So I’ll refer back to my friend and our former boss Anand Chokavelu. And Anand used to tell me that he doesn’t trust gamblers who only have winning gambling stories, because I don’t care how good you are at poker, which is not it is partially a luck based game no matter how good you are you and I could sit down and know the basic rules. And if we’re playing against the best player in the world, and we get dealt four kings and he gets dealt for queens, we win no matter how bad we are at the game. We’re good we are at the game. With options there is inherent risk, you can lose an unlimited amount Money. So I know that it’s always been said to me

Don’t even think about options to you’ve invested for a year. But I will argue Don’t even think about options until you’ve taken a repeatable course in how to trade options. And honestly, why would you do that the stock market’s not a casino it you buy good companies hold them forever stop trying to make the quick score. I know in the casino, I’ll always play some slot machines because it ups your comp points and there’s some benefits to it. And it’s dumb fun. But the vast majority of my time is spent is spent playing blackjack, which is a grinding game, you’re not gonna win, you’re not going to come home playing $300 a night and blackjack up $20,000 in theory could in other things. So you have to like the game. And for me investing is about liking the long term game, Nick says Domino said they never made a profit on delivery. So how can doordash make it more profitable than a company who has perfected? I don’t think they can’t. I mean, I think doordash is goal is volume. The problem is unless you had massive consolidation in the space, the ideal delivery for doordash is they pick up 10 things from a restaurant that are going to one or two buildings or a neighborhood. And you need such a massive concentration that might happen in New York City that may occasionally happen here in West Palm Beach where there are a lot of developments and buildings. Generally though, you can see what your doordash driver or your Uber Eats driver or any of them is doing. And I think it’s 5050 they even make another stop. And I’m ordering from places sometimes that are 3035 minutes away. They can’t be making money on this. And I don’t see some magic volume where it’s going to get better. It’s the old retail, you know, retail adage of, well, we’ll sell $20 bills for $19 and make it up on volume. No, you won’t like I do not see this going.

Well. We have room for a couple more of your questions and comments and Maxx this one came to you. But I’m actually I think in a field it. Hello, Maxx. I’m a seven investor subscriber. Thank you ROI. We appreciate that. And really enjoy reading your picks on biotech slash gene editing. How can I build my circle of competency to fit into this space? And understand good perspective companies? I believe in biotech tailwinds. There’s just a lot I feel that’s over my head. So you answered this on Twitter and said, we’re gonna be building out some resources. Why don’t you talk about that first, and then I’ll throw in sort of how I approach it.

Maxx Chatsko  42:22

Yeah, so here at 7investing, we’re always kicking around ideas. That’s one of the beautiful things about having a small team, right? So we kind of this like pipeline of projects that we’re like, maybe we can do that we’re gonna do this. This is already This is next, you guys don’t even know about it yet. So we’ve talked about maybe ways to compile more of this basic research, like 101 articles, and maybe provide some like frameworks for how do you approach investing in biotech or retail or AI or something, things that members of our team, our lead advisors are competent in, and can share with you so that you have an objective way of looking at the stock market. So we might do that. But people ask me like, hey, do you have any good books? And it’s like, I mean, I read a bunch of textbooks over the years, but I don’t think you want to do that. So it’s really it is there’s a dearth, there’s not a lot of good information out there about how to where do you start, so maybe that’s something that we should be doing.

Dan Kline  43:10

And that’s the reason though, that we have a diverse team, because I have spent my say, my expertise in say cord cutting, that’s an area I’ve been following. Since it was a phenomenon since people started going, maybe I want to get rid of cable. And frankly, I’ve been following the cable industry since there was a cable industry, you know that that cable really started becoming a thing when I was in high school. And then my first professional job in 1994, was editing a magazine called Sonic communications, which was professional audio and video but started to touch on that space. And so you can’t get my I’d say 10,000 hours, but it’s probably 100,000 hours in that space. So but what do you have you have access to us? So how do I grow my competency?

I watch Maxx and Manisha talk about this space. And then I start to know when I look at something, what would Maxx say if he saw this and you start to be right, more and more often you start to know, this is the criteria, Maxx would apply. And this is what he’d be looking at. And then you start to be able to do some of his work on your own. So when he says it, that’s going to give you more conviction. So I’m never going to be an expert in biotech. I don’t like school. So I’m not going back to read school books. I’m not going to do that. But I will understand more about a drug pipeline was not something I ever understood. Before coming in contact with Maxim Manisha something like a platform that might allow for 100 different drugs is something they’ve explained to me so you get more and more confident.

And if I tell you something like okay, and this is what I talk about a lot, Dollar General will be judged by its comps. And that’s not the real number because it stores get to profitability really quickly, and they max out and then they go open 1000 more over the next year. So the number to really watch is did their profitability shrink per store? Did they slow down and opening new stores? I know that because I’ve been in that space For a very long time, there’s not a book you can read that tells you that so sure, we want you to gain your own knowledge. We want you to understand what you’re listening to in an earnings call. But you have access to all of us. If you’re a member of seven investing, you can ask us a basic question on investing in biotech and during our members calls will answer that or will email you back or we’ll talk about it on one of these shows. I think it’s one of the core things of being a smaller service is that we really have the ability where your research team like we’re doing the homework for you we could to more they are both from ship of fools. gd gd, of course being the Grateful Dead based on the logo our friend uses there. She wants to know about Groupon as a term as a turnaround story and event bright as a turnaround story. Maxx I don’t know if you have thoughts, these are more MySpace, but feel free to raise your hand if you want to talk. And here’s how I look at Groupon. Groupon was a pretty bad business before the pandemic. So here’s the business of Groupon. Your local pizza place says hey, we need some new customers. You can go to Groupon and get you know two pizzas and a large soda for $10.99. Normally, it would cost $19.99. So you’re getting 50% off, the business gets about half that money. So they’re getting $4.99 on something they would normally sell for $19.99. you as a customer are getting a great deal. Cheap pizza.

Here’s the problem. The only way this works long term is if I go to that pizza place, and the pizza is so awesome. I’m willing to go back and pay full price for it. And Maxx, you’ve been to a lot of pizza places you’ve been to a lot of wings places, are there that many that differentiate themselves? I think the answer is is no. And that can be true for retailers. We tried it once when I ran the toy store and I ran a unique destination toy store. But if you came in with a $20 gift card you bought for 10 bucks, and you weren’t into $60 board games and doll houses and all the high end stuff we sold, you probably spent your $20 and never came back.

So the only way Groupon gets a lot of repeat business is if their product doesn’t work. Like if if you go in you don’t like the pizza that much. And I go well, I guess I’ll keep this promotion and bring people in the door. So I don’t think Groupon was ever a great business. I thought Groupon goods was a good idea they got out of that business. So it’s too easy to duplicate restaurants can and it’s not just restaurants. But businesses can do this on their own by offering you know new customer coupons. It’s very inexpensive to be in like a local mailed coupon book, we used to do that when I ran the toy store. It’ll cost me about $400 to get to 20,000 homes, and usually acquiring one customer paid for that ad because my average customer value of a recurring customer was close to seven $800. So it paid for the add in one person and I’d usually get three or four. Groupon generally brought in a lot of looky loos a lot of people that were just taking advantage of deals. That’s a word you haven’t heard of was that

Maxx Chatsko  47:56

is Groupon. Doing anything to turn around I think is an important thing. I looked at the numbers this morning and revenues fallen every year since 2016. And then chosen 20 revenue was like half of what it wasn’t chosen 16. So what is the company do anything differently? Or it’s just

Dan Kline  48:11

I don’t think they can it doesn’t help that that there’s white label technology. So every local newspaper company could offer the same product. It’s just it is a good idea. But Groupon doesn’t benefit from the recurring relationship. So if I’m in a new city, and my back hurts, and I need to find a massage therapist, and I get a Groupon and I go claim it, let’s say every time I travel to that city, I like that person. And I and I and I travel and I see that person I booked them two or three times a year. Groupon has no ongoing stake in that relationship.

That’s the fundamental problem of their business. So in theory, the way Groupon should work is they should take less upfront. But if the relationship works, and I don’t know how you would track this, but somehow through the app where you get some sort of discount, but not the massive discount, where if you use it through the Groupon act app as a recurring customer, Groupon gets 5% of that or whatever it is, their business model would have to be blown up. I don’t see any possibility. The second one he’d like to know about here is Eventbrite. Maxx. Do you know what Eventbrite does?

Maxx Chatsko  49:11

Yeah, they like events and tickets and things like that. Back in the day when you could go to concerts. I remember event, right.

Dan Kline  49:17

So the problem with Eventbrite is they come up against Ticketmaster AG, two major companies that own the venues, they sell tickets in for the most part. So if you’re Eventbrite, your universe where you could sell tickets is mostly people having events in secondary or alternative visits. And it’s awesome if you and I rent out a VFW Hall Maxx to have a rap battle and we sell tickets, this is the least plausible thing that could happen. But let’s pretend we did that. And of course, all the rest of the audience would want to see that. So then Eventbrite might provide the ticket platform. The problem is if you know Metallica or Taylor Swift or I don’t know Keith Urban decide to do an arena tour. Go out. They don’t have the option of using Eventbrite. They have to go with whoever controls those major arenas. So I don’t know, I don’t think they can ever be anything other than a really niche company. And it’s a cool product. I would love to see the the ticket industry is super sleazy. I mean, Maxx, have you paid a fee on a ticket to print it out at home?

Maxx Chatsko  50:23

If you do that, or if you pick it up, there’s a convenience charge. There’s always some charge, like, Well, why am I using this?

Dan Kline  50:29

Yeah, I mean, I always go back to my first mortgage, when I had to pay something called a miscellaneous fee. And I was told, just pay it, they’re not going to explain it. The ticket industry is rife with that. So I do think there’ll be some growth for Eventbrite where anybody who can use it will use it. I just think the audience for people who can use it is going to be relatively small. And if we look at the ticket space, you know, things like third party ticket markets, if you’re a season ticket holder for say, The New York Rangers as my college roommate is the Rangers highly incentivize you to use their third party ticket and basically say, yeah, if you go use like StubHub or something, man, that person might not get in. They don’t say it that menacingly but so I’m, I’m very wary of that. Or they might, you know, it is. I’m very wary of these sort of things that are a good idea that don’t necessarily result in profit ability.

We are nearing the end of the show, I thought we’re gonna be like 30 minutes, we did not go 30 minutes, we’ve gone significantly longer than that. This is one of my favorite questions I’ve asked it plays into the theme, Sam Bailey, if you’d like to bring up the finisher, that would be great. Which recovery stock industry will prove to be the best 10 year investment and hotels one by a slight amount, but airlines hotels and energy all basically tied. And I would argue Maxx that the loser here cruiselines is, on a broad level, the only industry that look to be long term profitable. Before all of this, I think there are major questions as to whether airlines will fully recover because technology has made it so we don’t need to travel as much. on the high end business traveler, we might only be three to five years out from having some of these space companies disrupt that on the very, very profitable, you know, I need to get to Australia as fast as I can from New York market. I think we’ve seen peak oil, am I right about that? Like I don’t see there’s a new heyday for those companies. Am I wrong?

Maxx Chatsko  52:28

Yeah, I think actually, I think shell came out recently and said they’ve probably hit or will soon hit peak oil production just due to consumption trends, right. And there’s electric vehicle markets coming out. So that’s oil and gas producers are gonna have a pretty tough go here the next decade, I think.

Dan Kline  52:44

And if you’re watching this show, you know, I’m a fan of the cruise industry. But the major cruise lines were very profitable before this. Now, it’s multiple years before they recover. But demand trends do suggest they will recover if you look at you know, Royal Caribbean just came out and talked about 2022 bookings. And they were very strong. And they pointed out that they weren’t just strong from existing customers, I thought they were going to get, you know, existing customers to flood back at low prices. They got new customers specifically among the vaccinated population. So health care workers 65 plus people looking for a getaway. Now I’m not saying it’s going to be easy sailing because the free offers for people like me, I know I’m booked a year from now February 6, on a bigger ship that I’ve ever been on for free, which is not normally what’s offered for free so obviously, there’s a desire to make sure there’s a base level of bodies on the ships, but I don’t think most airlines I think Southwest is going to do better as I talked at the top of the show for real reasons they’ve taken over routes that were profitable routes for other airlines that those airlines were willing to walk away from the slots and those slots are what’s hard to come by hotels and hotels have Airbnb and and vrb o and all those other services just sort of splintering their business and I know like in theory a hotel company can offer some of that but what I use Airbnb to stay in somebody’s guest bedroom or what I do it through, you know, Marriott obviously I’m going to do it through Airbnb so that’s anything you want to add on this one. I know I’ve been up I’ve monopolized the discussion a little bit. No, that’s

Maxx Chatsko  54:22

good. This is more in your wheelhouse than me but hotels I mean, I actually prefer to stay in a Marriott than an Airbnb because you know what you’re gonna get and it’s a little more convenient to figure out ahead of time.

Dan Kline  54:34

So I have mixed feelings. I’ve had some very bad Airbnb experiences where I had one where I loved everything about it staying in Bellevue, Washington, but the shower was like a coffin. I had to literally like stand in the shower like to like wash your face like your head. It was it was uncomfortable. We stayed at one at Hollywood, Florida that the pictures must have been from 1972 because the place was an absolute dump. That being said, My family’s staying In a vrb o, in a couple of weeks in a complex will, we’d like to buy going forward. So we want to make sure we like the amenities that the restaurants good that the lazy river is fun, like all the different things there. And we’ve been to the resort so we know the differences between units are going to be cosmetic and who their cleaning company is.

So I’m a big fan of doing as much homework as you can on an Airbnb because if it’s just me, I’m staying in a hotel. hotels have hotel bars, hotels, hotel restaurants, there’s usually a Starbucks associated, just everything is made for travel. But I do think there’s going to be a lot of disruption in that space. And I’m sure we will talk about it, Maxx. This has been fun 7investing audience reminder, our new picks are out today. If you would like to buy them not only do you get our picks today, and I will say I hadn’t heard of some of them. There’s some really risky ones. I will say that my pic most of the team had never been to and a decent amount of the team has since gone to this particular location or locations since I made the pic so there’s a lot of it.

Maxx Chatsko  56:05

There’s a graphic when you show the graphic there

Dan Kline  56:07

Sam Bailey bring up the graphic.

Maxx Chatsko  56:08

And I go yes, you can see Dan chose low risk retail. I can’t believe he chose GameStop I mean, that was a

Dan Kline  56:16

I did not pick GameStop just for the record. But yeah, you’ve got Maxx with a moderate risk company which is not typical for Maxx Matt Cochrane with a high risk company, which is not typical for him. Simon Erickson, low risk Dan Kline, low risk Manisha Samy very high risk if you’re looking for something and I will tell you tomorrow afternoon, I am buying some of munitions pit once our members have had a chance. And Steve Symington, coming in with a high risk pick as well, all in different spaces really shows the depth of expertise on the seven investing team. So of course, if you would like to subscribe, you can do that at seven investing.com slash subscribe. That is $49 a month, all our picks forever. Although all the ones in the past, you have to stay a member to get the new ones. You get everything we ever picked, you could filter them by all sorts of things I wrote an article last month and how I use our picks that you can have access to there’s all sorts of great content, new member calm the third Friday of the month, subscriber call on the third Friday of the month, cooking lessons with Maxx who knows what you are going to get. It is really exciting.

We’re going to keep the party going. It is our anniversary month. If you watch the show earlier, you saw that Simon Erickson shared some some details on our new contest where we want you to tell us how 7investing has helped you. It’s helped me I can say that not just as the fact that I work here it is diversified my portfolio if you want to get in touch with us and thank you, mom. But if you want to get in touch with us, you can reach us info@7investing.com if you have questions about what a membership means, if you’re a member and you don’t know how to get to something or you’re curious about why we do something we do. That’s a great place to share it. And you can reach us on Twitter @7investing if you have ideas for future shows, questions you want us to answer we probably won’t, you know research an obscure stock for you that said if you ask us a question about Groupon or companies we have feelings about we are not going to shy in sharing it so again, didn’t intend to go in our here Max, but we have basically gone an hour and I’ve teased it there’s gonna be a reason for that coming soon. Think think grids and what traditional television shows look like for Maxx Chatsko for Sam Bailey behind the glass. I am Dan Kline, we’ll see you Wednesday.