Jon and Pete Najarian join forces to discuss and debate their favorite topics, including the hottest stock-specific news and sports! Today: $SPOT, $LOGI, $RTX, and the NY Giants
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00:00 (upbeat music)
00:02 - Episode Pete 196, it's around there somewhere.
00:19 (laughing)
00:21 To quote Matthew McConaughey, all right, all right, all right.
00:25 Here we go. All right, all right, all right.
00:27 Welcome to the Rebel's Edge folks.
00:30 I am John Najarian.
00:31 The less handsome one is Pete Najarian.
00:34 - Yes, John.
00:35 (laughing)
00:37 - I've heard Jared is handling all of the technical issues
00:42 like bears and bulls fighting
00:45 and bulls apparently kicking bears butts.
00:47 - Again, again, again.
00:50 - What is it? 10 or 11 days in a row, Pete?
00:52 - It was 11 yesterday.
00:53 I only know that because last minute you and I got a call
00:57 about maybe joining Larry Kudlow on Fox biz.
01:00 - That's right.
01:01 - And you got busy flying.
01:03 And so I was still here and I was able to do it.
01:06 And it was funny because Larry was saying to me, John,
01:08 he goes, "Hey, at 11 straight days of this,
01:10 where are you, Minnesota or parts unknown?"
01:13 I was like, kind of parts unknown, I guess.
01:18 (laughing)
01:19 So it was 11 yesterday.
01:20 If we get another one today, John, I mean,
01:22 we just keep on stacking these things up
01:24 as far as the Dow is concerned.
01:26 - Yeah.
01:27 Well, and the NASDAQ's the real out performer,
01:31 of course, folks.
01:32 And we've got two huge earnings coming our way tonight
01:35 with Google and Microsoft.
01:37 And there's a host of others,
01:39 but those are two of the mega, mega caps
01:41 that have earnings tonight.
01:43 And maybe we'll get a chance to opine about those.
01:46 But we try to keep the show tight and on schedule.
01:50 So Pete, let's start off with the Macro Minute.
01:54 We don't have any fancy intro for that.
01:56 So the Macro Minute today is Google and Microsoft.
01:59 After the bell tonight,
02:01 they really set the tone for the tech earnings
02:05 on stage over the next two weeks.
02:07 I think that's exactly right, John,
02:08 especially with the fact that we kicked off
02:11 this whole thing, earnings season, as we call it.
02:14 Earnings are always happening, by the way, folks,
02:16 for anybody who's newer to the markets.
02:17 But that being said, we start off with the financials.
02:21 We've gotten a lot of that, John,
02:23 and they've actually reacted very nicely.
02:25 The financials had a really nice ramp to the upside,
02:27 along with regionals as well.
02:29 Regional banks have done pretty daggone well as well.
02:32 So that's all been great.
02:33 Now we get into the real stuff, right?
02:36 The stuff that's been really flying.
02:38 And can it still fly?
02:40 And was it moving for the right reasons?
02:42 We're gonna know all those answers pretty soon
02:43 by the end of the week.
02:45 When you've got Amazon, you've got Google,
02:46 you've got Microsoft, we've also got, by the way, the Fed.
02:50 There's a lot of things in front of us right now
02:52 as far as the macro side of things.
02:54 (bell dings)
02:55 - Well, Pete, we're now at the segment of the show
02:58 that we call Fantastic Futures.
03:01 - Fantastic Futures.
03:03 - It's kinda spooky.
03:07 - And if you like chocolate, and most of us do,
03:11 I don't even think I have really a sweet tooth, Pete,
03:15 but I do like chocolate.
03:16 And the prices of sugar hit an 11-year high
03:21 earlier this year.
03:22 The price of cocoa just keeps going up.
03:25 And of course, that's a raw ingredient
03:27 that goes into chocolate.
03:29 So cocoa prices are up, I think, 36% on the year, Pete,
03:34 and up another 2% today.
03:37 That's my future.
03:38 - All right, I got this one.
03:39 Just to keep an eye on it, folks,
03:41 I think it's very important.
03:42 Take a look at the 10-year.
03:44 Now, on July 10th, it was over four.
03:47 That was a big number, right?
03:49 A week or so later, you get to the 19th.
03:51 Now you're at 374.
03:53 Looks like we're going in the right direction.
03:55 That's coming down, blah, blah, blah.
03:56 All of a sudden, she's going right back up again,
03:59 and it's right around 3.9 today.
04:01 So we are approaching four very rapidly.
04:03 A lot of movement.
04:04 That's a lot more movement than normal.
04:06 And I will tell you this, in our recent past,
04:09 when we get to four,
04:10 people seem to wanna get their hands out,
04:13 selling stocks, and they start jumping over.
04:15 So be very careful and keep an eye on that 10-year.
04:18 You don't gotta stare at it,
04:20 but I think it's very important
04:22 to know exactly where it's trading.
04:24 - Absolutely, it is.
04:25 And you've been spot on, Pete,
04:28 about what happens when it crosses that four threshold.
04:32 All right, well, this segment brought to you by BAC Tech.
04:37 I did an interview with the NASDAQ, Pete, last week
04:42 with the CEO of BAC Tech.
04:44 It's a really interesting thing because mining,
04:47 and it doesn't really matter
04:49 whether you're talking about gold mining, silver mining,
04:53 or whether you're talking about mining
04:55 for the rare earths that are in the batteries
04:58 that we need for all these EVs.
05:01 They make a mess, generally speaking,
05:03 when they're pulling all this stuff out of the ground.
05:06 It's not an easy process, and it's a messy process,
05:09 and you end up leaving a lot of stuff,
05:11 especially in the case of gold, Pete,
05:13 there's a lot of arsenic and other stuff
05:16 that you end up dislodging that you might not want
05:19 in your water supply and so forth.
05:21 So BAC Tech, this is a company
05:24 that has a bio-leaching process,
05:28 whereby basically they say, "Our bugs eat rocks."
05:32 And what they mean by that is
05:34 that they can bio-leach these things
05:36 and take virtually all of the bad stuff
05:39 out of these tailings,
05:41 the tailings being, of course, what's left over.
05:44 So they're a commercially proven
05:46 environmental technology company.
05:49 They've been doing this for quite a while.
05:52 They're gonna be doing a huge project, Pete, in Ecuador,
05:56 and they just got approved for their green bonds.
06:00 And what's a green bond?
06:01 Well, so you can imagine that if somebody
06:05 that's not exactly ESG is out there
06:08 raising money with a bond, in other words,
06:11 they're borrowing money from people
06:12 and paying them an interest rate,
06:13 and so forth, they generally don't get as much
06:18 of a benefit of a lower rate,
06:21 but the green bond people do.
06:23 So in other words, I'm not gonna fool anybody
06:25 and say, "Oh, if you wanna get a bond for a steel mill
06:28 because it's dirty, you're not gonna get a bond."
06:31 Of course you are,
06:32 but you're gonna pay a higher interest rate.
06:34 Because of all the money chasing green bonds, Pete,
06:38 you get a better interest rate,
06:40 and that's what these guys just got,
06:42 proceeds from these offerings are gonna be used
06:45 for BAC Tech to basically build out this huge facility
06:50 that'll ultimately be either five or 10 facilities,
06:53 Pete, in Ecuador.
06:54 Name of the company, again, is BAC Tech,
06:57 and we'll be talking more about them,
06:59 but just wanted you guys to know,
07:01 and they are a sponsor of this segment of the program,
07:04 so giving them a little love there, Pete.
07:06 - The only love I'm not gonna give them
07:08 is I'm jealous of that guy's full head of hair.
07:10 Other than that, I like everything he's doing.
07:12 (laughing)
07:13 - I was a little jealous of that too.
07:15 Son of a gun.
07:16 (laughing)
07:18 Let's dive into, let's say, a cloud security play, Pete.
07:23 FFIV, this is F5.
07:26 They blew by estimates,
07:29 came in nearly 40 cents above the estimates,
07:32 which would be about 20%,
07:34 I guess it was probably 18% above, Pete.
07:37 They see early sign of demand stabilization.
07:41 I'll put that in quotes, demand stabilization,
07:44 because what we wanna hear from companies is,
07:46 hey, if the demand instead of ebbing is stabilizing
07:50 and maybe even starting to hockey stick back up,
07:53 that's why this stock's up double digits today, Pete.
07:56 - Yeah, and it actually was up even more, John,
08:00 and then kind of eased back a little bit,
08:02 but the stock actually got up close to like 168,
08:05 and then it kind of eased back, like I say,
08:07 up like, I think right now, something close to 5%.
08:10 What I really liked seeing was the margins,
08:12 and the margins did,
08:14 and they're projected to be very strong.
08:16 They're looking at something close from,
08:17 they were looking from 28, now look at 33.
08:20 Anytime I see that going up, that's a good sign.
08:22 I like what they're doing, and John,
08:24 they've got a commitment with that free cash flow
08:26 that they've got to buy back shares.
08:28 I've always liked some of these buyback programs.
08:30 These guys are doing the right thing,
08:32 got a great balance sheet.
08:33 So for all those reasons,
08:35 I think this is a name that people ought to keep
08:37 a very close eye on,
08:38 because I think it could test up there
08:40 towards those 52-week highs.
08:42 - I wouldn't be a bit surprised,
08:43 and again, being able to deliver that
08:47 via the cloud is pretty key, Pete.
08:49 So we go, and by the way, Pete's spot on.
08:53 It was 168 on the highs today.
08:56 Right now it's trading about 159.
08:58 So it's definitely given back
09:00 more than half of that double-digit gain.
09:03 Let's talk about Logitech, Pete, LOGI.
09:06 These guys, huge beneficiary of the lockdown.
09:10 Why is that?
09:11 They're a Swiss company and they make peripherals.
09:13 So if you're somebody who has a wireless keyboard like this,
09:18 or a wireless mouse, or any of this stuff,
09:21 chances are it could be Logitech.
09:24 And they also made some of the best cameras, Pete,
09:28 for people that were stuck at home
09:30 and doing Zoom calls all day long.
09:32 So this company had a nice report.
09:36 They beat on top line, bottom line,
09:38 and they raised outlook.
09:40 That's the triple play.
09:42 - Yeah, they hit everything, John.
09:43 Matter of fact, that's a good reason why it's now
09:45 52-week highs is what it was hitting today.
09:48 So it got a nice jump up over 71 bucks a share.
09:51 Nice move for the stock.
09:52 I will tell you this too.
09:54 They reduced the inventories.
09:55 The operating expenses are solid.
09:59 They really are doing what seems to be everything right.
10:02 And you look at the PE of this company,
10:03 because they actually do have an E,
10:06 not a lot of these stocks do,
10:08 but the PE of the company is trading right around 21.
10:11 They've got cash over debt of a billion dollars.
10:13 There's a lot of things to like about Logitech,
10:16 which is exactly why it's making 52-week highs today.
10:19 - And I'll point out that even though I mentioned
10:22 the cameras, folks, one of the issues here
10:26 is that the camera sales were down 31%,
10:29 31% year over year.
10:32 So, you know, it's just one of those purchases
10:34 that you probably only buy it once, Pete.
10:36 You might buy a series of keyboards and mice, of course,
10:40 'cause they break or you get mad and you break them.
10:43 You probably don't break your camera much.
10:45 All right, let's talk a little bit about RTX
10:49 because this is Raytheon Technologies.
10:53 So when you say Raytheon, you think defense,
10:55 and that would be correct, but they changed the name to RTX
11:01 and it's up double digits, Pete.
11:03 They topped expectations and then the stock tumbled
11:08 following results that were great,
11:11 but their Pratt & Whitney engines,
11:13 which you can look out on a jet that you're flying on,
11:18 whether you're going to Europe
11:19 or just somewhere domestically,
11:21 chances are it's a GE Pratt & Whitney
11:24 or it's a Rolls-Royce, one of those three.
11:26 And Pratt & Whitney engine disclosed a defect.
11:30 - Yeah, yeah.
11:31 - So that's why the stock's down double digits, Pete.
11:35 Yeah, they've really hit this one.
11:36 This one's all the way down towards 82, John.
11:39 Last I looked, could even be lower.
11:40 Maybe it's a little higher, I'm not really sure,
11:42 but that's very close to the 52-week lows.
11:45 Why is that?
11:45 Because of exactly what you just said.
11:48 The one thing that's interesting is the CEO did make,
11:51 at least he presented it this way.
11:54 He said, "This is not a safety issue.
11:57 It's a quality issue," which is pretty important.
12:00 And I would hope that they did that very early
12:03 in whatever projections they were throwing out there,
12:06 because this is $120 billion deal with Pratt & Whitney
12:09 that they put this thing together with.
12:11 And now this is really a big struggle.
12:13 And this could be something where people are looking,
12:16 saying, "Hey, look,
12:18 Delta has a hell of a lot of these things.
12:20 Should I be concerned?"
12:21 Take a look at what was happening to Delta stock today
12:24 as well, getting hit a little bit.
12:25 So there is a little bit of a reaction
12:28 on top of what we're already seeing just to RTX itself.
12:32 But I'll tell you, at some point, John,
12:34 I don't know that you'd want to jump in too early.
12:36 At some point, this will turn,
12:39 especially if that narrative is correct.
12:41 And I think we'd start to see this stock make a nice move.
12:44 But I think you don't have to be the first guy
12:46 in the boat on that one.
12:47 I think I'd wait and wait to see a little bit of activity
12:50 that pushes this thing to the upside
12:52 off of some other news release
12:54 about what it is that they're doing.
12:56 - I'd like to see that too, Pete.
12:58 And we are not your financial advisors, folks.
13:02 But what I would do is about what Pete said.
13:05 I might even start dipping my toe in here though.
13:07 And here's why, Pete.
13:09 And again, this is not financial advice.
13:11 It's what I'm doing.
13:13 I would probably buy about a third of the position
13:16 that I want to establish in this one
13:19 because to defense stock,
13:20 because we've got a hot war going on right now.
13:24 That's why, folks.
13:25 And I think the Pratt Whitney thing,
13:27 ultimate, I mean, we're already $3 off the low of the day,
13:30 Pete.
13:31 It was down around 81 bucks.
13:33 It's already 84 and a half.
13:35 So could we go back down and test it?
13:37 Sure.
13:38 But six months from now, do I think it's back over 100?
13:42 I do.
13:43 So I'm never gonna buy the bottom.
13:45 I'm never gonna sell the top.
13:46 So I kind of scale in.
13:48 And every once in a while, a blind squirrel finds an acorn.
13:53 - True.
13:54 - Let's talk a little bit about Spotify.
13:57 This is of course the home of Joe Rogan
14:00 and a bunch of people on podcasting.
14:03 Guess what, Pete?
14:04 And I love this part.
14:05 I'm not happy for them that they got hit pretty hard today
14:09 because basically they're increasing the price
14:15 of their subscriptions for their premium products
14:18 and bringing them up at least 10%.
14:20 And some of the analysts are worried that,
14:22 hey, maybe people will cut back.
14:24 Well, they haven't cut back yet.
14:26 That's just a down the road, maybe they cut back statement.
14:30 But the big thing is, Pete, that they cut those two losers,
14:34 the Duke and Duchess of Sussex
14:36 or whatever the heck they are,
14:38 they cut those two losers free.
14:42 - They weren't exciting, you mean?
14:43 People weren't coming over to listen to those two clowns?
14:46 - Talk about patterns of, you know,
14:49 drapes and things like that.
14:51 I mean, what in the hell?
14:53 So anyway, I think that was a mistake,
14:56 but obviously the fact that I'm not a big fan
14:59 of the Duchess of Sussex,
15:01 most people don't care what my opinion of her is,
15:04 but I liked the fact that they dumped those two.
15:07 - Well, I'm gonna go back to this thing
15:10 and talk about this.
15:12 The monthly active view of users, that was up.
15:15 So that was a decent number.
15:17 Gross margins, however, were down
15:19 and that is always a problem.
15:20 Here's the other problem.
15:22 They don't make money.
15:24 You know, we like this product, right?
15:26 We think they're great, but I'll tell you what,
15:29 I took a look, John,
15:30 they haven't made money in terms of, you know,
15:33 real earnings in almost three years.
15:35 Now they've been around and they've made money at times,
15:38 but that's a bit of a problem as well.
15:40 So that's one of those things that I always view as
15:42 a little bit nerve wracking.
15:44 Now that doesn't mean that the stock can't go up
15:46 'cause it certainly has.
15:47 It's been as high as 182 in the last year or so,
15:51 but here we are today
15:52 and we're going through some of these numbers.
15:53 And when you go through those numbers
15:54 and you see where they are,
15:56 it does make you kind of scratch your head and say,
15:58 you know what,
15:59 maybe these guys are still a little bit overpriced.
16:01 I'll trade them with options when I see those options
16:04 and look for things to happen.
16:06 But I'll tell you what,
16:07 I'm not a huge buyer of the stock at any point,
16:10 at least not right now, John.
16:11 I'd like to see them figure this thing out
16:13 and start making money again.
16:16 - Yeah, it's pretty vital that you do.
16:19 They're certainly attracting a lot of people.
16:22 And I love my Spotify account, Pete,
16:25 but I don't even have the premium account.
16:28 I just have a registered account
16:30 so that I can have my library of stuff I wanna listen to
16:34 from Rogan to the music I like to listen to.
16:37 And do I listen to Jason Aldean?
16:39 You bet your butt I do.
16:41 - He had to go there.
16:43 He had to go there.
16:45 - And I'll tell you this.
16:46 - Me too.
16:47 - Anyway, let's go back over to sports, John.
16:51 Let's hit a little bit of the New York football giants.
16:54 - Let's do it.
16:55 - Why are we doing that?
16:56 Well, because there's a guy named Saquon Barkley,
16:59 who's one of the biggest beasts in the history of the NFL.
17:03 He's only 26 years old.
17:05 He's a running back.
17:06 And now teams are already kind of writing off
17:09 all these running backs, right, John?
17:10 I mean, the reality is right now,
17:12 general managers don't wanna pay them
17:14 what they probably should be paying them.
17:17 And because of that, guys like himself,
17:19 Calvin Cook, who's got a few other things going on as well,
17:22 but some of these running backs, why are they not signing?
17:25 Well, they're not signing
17:26 because they think they should be paid
17:28 and they're not being offered the types of money
17:30 that they wanna get paid.
17:32 Today, it finally happened.
17:33 Barkley got an $11 million contract, 1 million of that,
17:37 he's gotta do through incentives.
17:39 But here's the thing, John,
17:40 Daniel Jones is a really, actually,
17:43 turned out to be a pretty damn good quarterback
17:46 for the Giants.
17:47 Why is that though?
17:48 Well, it might have something to do with the fact
17:50 that he's got Saquon Barkley back there.
17:52 He can throw him the ball.
17:53 He was second on the team in receptions this year,
17:56 maybe even first.
17:56 I think he had 57 of them.
17:58 He ran for 1,300 yards.
18:01 So you've got a guy who's like this incredible athletic freak
18:06 who could do a lot of things.
18:08 He can make defenses very, very nervous
18:10 when he's running the football
18:11 because he's big and strong
18:13 and they got a nice offensive line
18:14 with the New York Giants.
18:15 Matter of fact, they got a kid from Minnesota this year,
18:17 they drafted, who's gonna be a starting center,
18:20 I think game one.
18:21 But why is it, John,
18:24 that they don't wanna pay these running backs?
18:26 Well, because they don't think they're worth it.
18:28 Here's the thing, you and I talked last week
18:30 about Derrick Henry and the fact
18:32 that they finally got Hopkins.
18:34 That suddenly makes Tannehill look
18:36 like a pretty damn good quarterback, in my opinion.
18:38 We'll find out very soon.
18:40 Everybody's in camp.
18:41 Now you're gonna get Saquon back.
18:43 He almost sat out the whole year, he was so frustrated,
18:46 but instead we get to see him.
18:48 Now we need to see a couple of these other running backs,
18:50 but I'll tell you, you were a linebacker,
18:52 I was a linebacker.
18:52 John, the problem is this.
18:54 If you don't have a running game and I'm a linebacker,
18:57 I don't have to worry about a running game
18:59 and I'm going back on almost every play
19:02 because they don't have a running game.
19:04 They don't wanna run the ball,
19:06 so they're gonna throw the ball.
19:07 And I realize it's a throwing league.
19:10 It's a throwing league,
19:11 but the problem is when that's not going well,
19:13 you need something else.
19:14 You need a running game, especially in the playoffs.
19:17 And that's where I think these teams are really missing out.
19:21 - Yeah, and you already know this, Pete,
19:23 but the Raiders have the exact same problem
19:26 because the Las Vegas Raiders, they have Jacobs
19:31 and he's a great running back.
19:33 Saquad Barkley is an exceptional player.
19:37 And like Pete said, he's a freak show.
19:40 I think the guy has a squat heavier
19:43 than virtually anybody else in the NFL.
19:45 And he's a 210 pound, 215 pound running back.
19:50 It's amazing.
19:52 He's got quads, hence the name Saquad Barkley,
19:56 that would just amaze,
19:58 but he runs right through tackles too.
20:00 And I've seen him move, like when they hit him, Pete,
20:03 I've seen him move a pile of three or four defenders,
20:06 just keep those things pumping
20:08 and he just drives down field.
20:10 He is a freak show, you're right.
20:12 And Jacobs is even probably the closest to him
20:17 other than Henry,
20:19 but Jacobs might even have a little more speed.
20:22 I'm not saying Saquad is not fast,
20:25 but when I've watched Jacobs, Pete, he looks incredible.
20:29 By the way, my daughter was at a celebrity golf outing
20:33 with Saquad Barkley and a bunch of these guys
20:37 over at Liberty National,
20:38 a place where you, did you play over there, Pete?
20:40 - I did, yeah.
20:42 - It's got the Statue of Liberty in the background.
20:44 It's in Jersey,
20:45 but you're looking right at Manhattan from there.
20:48 And she said the guy was the nicest man too.
20:51 And then he was signing autographs for people and all that.
20:54 So, kudos to the Giants.
20:57 They needed him in camp.
20:58 If you miss all of training camp,
21:00 I guarantee no matter how good you are,
21:03 you're not gonna have a breakout year
21:05 because he's gonna be in camp,
21:07 take a few hits and get himself into football shape.
21:10 He's in great shape, but get himself into football shape.
21:13 He will be ready for the season and the Giants,
21:16 whatever you thought of him before,
21:18 you have to be even more worried about him now.
21:20 - Yep, absolutely.
21:21 And Daniel Jones, by the way,
21:23 I didn't realize how good of a runner he is.
21:25 On top of being the quarterback
21:27 and throwing the football, John,
21:28 and only having five interceptions last year,
21:30 the kid can run the rock.
21:32 He was second on the team
21:33 and he averaged five and a half a carry
21:34 and almost 700 and some odd yards.
21:36 So, pretty impressive.
21:38 Next, we're gonna go to another part.
21:40 We're gonna mesh these two things together.
21:42 It's the NFL and investing.
21:45 And here's what I mean by that.
21:47 Daniel Snyder, he paid $800 million 24 years ago
21:51 for the Washington,
21:53 I don't know what team they are anymore, John.
21:55 They don't have anything, right?
21:56 I mean, commanders allegedly.
21:58 Well, they sold it to Josh Harris and his group
22:01 and blah, blah, blah.
22:02 They already own a couple other pro franchisees,
22:04 but it's interesting because, I don't know,
22:07 are they the Redskins?
22:07 Probably not.
22:08 Are they the commanders?
22:10 Probably not.
22:11 Are they the football team?
22:12 I don't know.
22:13 That's not exactly creative,
22:14 but they're not all that worried about that.
22:16 And he just sold it for $6 billion.
22:19 So, not so bad.
22:20 And now he said, well, you know, Harris says,
22:23 well, we're gonna focus on the culture.
22:24 Well, hopefully that's an easy no brainer
22:27 to figure that one out,
22:28 but you've replaced the problem where that started.
22:31 But how about this, John?
22:32 So, how is this for an investment?
22:35 You and I had the opportunity to go to Dallas, Texas,
22:39 and who did they play?
22:40 Oh, we just got done talking about them.
22:42 New York Giants.
22:43 They came down, played against Dallas.
22:45 You and I were in whose booth again?
22:47 Let me see.
22:48 I think it was Jerry Jones.
22:49 - Jerry Jones.
22:50 (laughing)
22:51 - Who has a booth that goes from the 40 to the 40
22:55 and it's massive double-decker booth.
22:58 Unbelievable experience.
22:59 And he was called a fool, John, literally.
23:02 By many people, he was called a fool
23:04 because he paid $150 million for the Dallas Cowboys.
23:08 Well, that was 1989,
23:10 but I think that investment now that's worth $8 billion.
23:13 I don't know who the fool is, but I know one thing,
23:17 it ain't Jerry Jones.
23:19 (laughing)
23:20 So, it's pretty interesting,
23:22 but you also have the Broncos sold for $4.65 billion.
23:26 Carolina, when our buddy Tepper bought them,
23:28 he bought them for two and a quarter billion, John.
23:31 So, talk about investments that are probably working out.
23:34 I can tell you this,
23:35 I'm thinking that Carolina's probably worth
23:37 something north of four.
23:39 I would say the Broncos are probably worth
23:41 something north of five already,
23:44 maybe six based on this, because that's a big stadium.
23:47 They're a really fun, flashy team
23:51 and all the things that are going with it this year
23:53 after the off season they had,
23:55 replacing coaches and this guy and that guy
23:57 and everything else.
23:58 So, what do you think, John?
23:59 If you could right now, if you were gonna buy,
24:02 this is where I wanted to go,
24:04 what's the best investment?
24:05 Is it the NFL still?
24:07 Or is it the NBA?
24:08 Or is it maybe Major League Baseball?
24:11 I know you and Mark have had discussions with people.
24:13 What do you think right now is the best place
24:16 for the next, let's call it decade, next 10 years?
24:19 What's the best investment?
24:20 - Hands down, Major League Baseball.
24:23 At these prices, Pete, at the present price.
24:26 And here's why.
24:27 They're the only league that doesn't share TV revenue.
24:30 The only revenue they share from TV
24:32 is like the game of the week kind of thing.
24:34 So, that means that the Yankees and the Mets
24:37 and the LA teams have a distinct advantage
24:41 and are worth billions of dollars,
24:43 plural, billions of dollars more,
24:46 put Chicago in there too, I guess,
24:49 than the rest of the league.
24:51 So, there's a lot of underpriced teams
24:54 because of that lack of sharing.
24:57 If all of a sudden they share,
24:59 a lot of those teams double up,
25:01 even triple up in value, in my opinion, Pete.
25:04 Let me just throw this out there too, Pete.
25:07 So, Magic Johnson is part of Josh Harris's group
25:11 that bought the Commanders, right?
25:13 In Vegas right now, the fourth best odds
25:18 are that they will be called the Washington Magic
25:22 or the Washington Magicians.
25:25 That's number three and four
25:27 for the betting money in Vegas for that
25:31 because he's magic.
25:33 - He is.
25:34 - And I'm gonna say it ain't a half bad name.
25:37 Would you like to play on a team that was named Magic?
25:41 - Especially with Magic Johnson being part of it?
25:44 Hell yeah.
25:45 - Let me tell you, you know this better than anybody,
25:49 but there is nothing Magic Johnson touches
25:52 that doesn't turn to gold for God's sakes.
25:55 The guy with the Starbucks franchises,
25:58 he's got a piece of this, he's got a piece of that.
26:00 I mean, I'll tell you what, that was a genius move
26:03 because they didn't need to bring in investors,
26:05 but they did.
26:06 And they brought in a lot of guys
26:08 that I think made sense to be smaller partnerships,
26:12 Magic being one of them.
26:13 But what a great face for the franchise, right?
26:16 So why not?
26:17 I love it, John.
26:18 I think it'd be awesome.
26:19 - Yeah, I do too.
26:21 And I think you gotta give Josh Harris credit
26:25 like you say, Pete, because they had the money,
26:28 but they figured what would put us over the top
26:30 'cause Bezos can match our bid.
26:33 Well, Bezos didn't have Magic.
26:35 And I'm not saying it was him alone.
26:38 I really am not saying that, folks,
26:40 but it certainly doesn't hurt
26:42 to have one of the most famous ball players of all time,
26:47 even if it's not in this sport.
26:49 And the fact that he's a black man,
26:52 if it was a black woman, it would be even better, Pete.
26:55 But the fact that he is a successful black entrepreneur
26:58 as well as a fantastic hall of fame basketball player,
27:03 that didn't hurt.
27:07 - No, no.
27:09 And the guy's damn near turned into a hall of fame investor.
27:12 I mean, truly, I guarantee you this,
27:15 he's made more money since he retired from basketball.
27:19 The money he made in basketball,
27:20 I'll bet you since then, he's tripled that
27:24 in just the work that he's done with Starbucks
27:27 and all the professional sports franchises
27:29 that he's a part of.
27:30 Unbelievable.
27:31 The guy is amazing.
27:32 He is Magic and he is deserving of that name.
27:36 - Yep.
27:36 I've met him twice, Pete.
27:38 The second time I met him,
27:39 I asked him if he wouldn't mind signing the picture
27:41 I took with him the first time I met him.
27:44 And he did.
27:45 What a nice man too.
27:49 I would say only your buddy Shaq, Pete,
27:52 is at that same level.
27:53 Because Michael Jordan is the GOAT, truly.
27:56 But Shaq isn't the GOAT,
27:59 but he might be the GOAT in terms of outside investing.
28:02 All of those pizza franchises,
28:05 all of those burger franchises.
28:07 Dunkin' Donuts, you name it.
28:08 The guy's got a piece of everything and he's never been,
28:11 he never got, he's like Michael Jordan.
28:13 He learned from Michael Jordan.
28:15 He never got sucked into the money side of it.
28:17 He got, he pulled it over and said,
28:19 "Look, instead of the money, let's not do money.
28:22 I want franchises.
28:23 I want this."
28:24 And they worked it out.
28:25 And that is a much better deal.
28:28 Just like Michael with Nike.
28:29 I mean, you know,
28:30 Michael did a lot of great smart things that really,
28:34 the money that he has made is just scary actually.
28:37 (laughs)
28:38 - Staggering, staggering.
28:40 Both of them.
28:41 All right, folks.
28:42 Well, we will be back tomorrow with another Rebels Edge.
28:46 We encourage you to share the episodes with your friends.
28:49 Remember you can get them at marketrebellion.com/edge.
28:53 You can see it on thestreet.com.
28:55 I saw it yesterday, Pete, it popped up on Yahoo.
28:58 And you can, I mean,
29:01 this is gonna be the biggest financial show, folks.
29:04 Make note of it because we're gonna have even more
29:08 coming your way soon.
29:10 So have a great day.
29:11 We'll see you tomorrow.
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