Stock Talk - Jason Moser, Motley Fool
Jun 4, 2013|
Stock Talk - Jason Moser, Motley Fool
Transcript - will not be 100% accurate
Figured -- that. You and Amazon customer. Yes how much do you shop there. Maybe once every two or three months not that much not a heavy user. I'm a user ahead Amazon I would describe myself as a heavy user but I am. User of their product have been for years but I'm not an older of their stock Jason -- from the Motley Fool joins us he's gonna tell us why I sure it'll -- Jason good morning. There are terrific so it. You like Amazon you're not alone in their -- buck today seer doing all right so far. Yet not clarified his pro worker at the right -- Loney in the personally though it's one that you know I feel. Comparable recommending to other people and opening my belt but. -- it just did a phenomenal company what they've done to -- The really think that did the exciting part is what they haven't done yet and he just. As for the most part people all but -- not. Just as glorified. On line book dealer that now spell -- -- stuff. But you know I mean you -- an interesting point there'd be used in non. That the people maybe not immediately and I used it as much as others they think that it is. The younger generation come of the plate here and like that pay attention and it is for people to stick with eight years lol yeah. And their behaviors are being very much dictated. By on line commerce e-commerce department would be -- the other 800 pound gorilla in the room there but they both -- Kindle fire's been. But they get their content their books their -- -- ideas from Amazon we -- or a lot of or household goods from Amazon. And I play what they've done so well. Is that with -- even -- prime relationship that you hate that the nine dollars a year or they continue to add people. People bolt on -- forty valued at what they're lending library critic Kimball of the media streaming in the more more than eighteen that. The more that the greater the perception. At least that she had been achieved it remain not a breed because that's really the point on the Greek shipping. And we know from just consumers surveyed that that really the biggest priority when it comes on line for consumers are really focus. First and foremost. On getting low cost Greek shipping. And they have a -- in -- a wide moat you know when I look at their business model. And you say OK Amazon compared to who you know in have a you know -- like I tried -- different when he was like the boxer public that. Is terrible you know they delivered on time -- inferior merchandise. Amazon I don't know do you know of anybody that competes with them really well. Well I think no I really don't actually think everybody's trying to figure a way to compete with the proper running in a big problem number one. The company's mission is to be -- the most part the most customer centric company eight year. That's they're goal from the very get in and you couple that the fact that -- got jet they didn't do it. Invasion if nothing else you can anybody under the table -- -- -- -- -- needed they announced rather stringent marine Viacom. If you're gonna continue to spend money investing in the business but the short term investors are concerned that the profitability not. Does -- say how much cash to they have because they're losing money to -- in what 1920 cents a share. I think that a little bit that we have been about earnings per share at Amazon typically account the fact. That they had a negative cash conversant cycle. So when you look at their cash -- -- and they weren't a lot of action can be fatal. But they bring that passion before they ever actually paid for. What their spelling but think that at bloody -- -- -- -- a little bit but got along with the fact that beat people investing in the business. Building these new distribution better NN that all businesses in about what services as well which is really just another but not on the growing at a breakneck. Eight. Well they could turn a profit anytime they want right at. It'll be big mistake hey we're gonna we're gonna cut back on. Reinvestment and and would how much you want us to make and I think with the shareholders are saying is now dull. You keep run and maybe -- Arctic. I I would recommend for all of your listeners that -- understand that are accurate data bank. Simply go to and not see his annual letter to shareholders that the two page letter. But -- make a novel read and it won't be made very clear insight and how he thinks and what he's doing with a company. -- let's take a look at clean harbors this is a local Massachusetts company. We bought a lot of the shares right around the time BP had their spill few years ago back in the Gulf of Mexico. Pretty good company. I've really liked it a lot fly under the radar a lot of one it's still small bit. Mark look at the people that over three billion dollars. But the neat thing about the company's founder -- let the alum in the founder of the company in the years -- today. And come back in 1980 Stallone about 8% shares of relief you believe in the business as well. You'd be able grow revenue and about 27. Utilized for the last three years and I think the main reason why is it is important is that the very high. Regulatory barriers to entry for what -- you. Is state beat in these things like technical services and Hazmat disposal. Environmental cleanup like you mentioned industrial services and even wanna look at fuel or. But he didn't think that not a lot of other companies can really do not a lot of other company can really get you know because the BI. Economic and regulatory barriers to entry. We give -- equally able competitive advantage there a lot of room to grow the business. Why wouldn't a and ExxonMobil. By them you know I look at them there you know small to mid cap company -- three and a half billion dollars. You know they're they're profitable writes if you buy them if if if ExxonMobil were to buy clean harbors it's instantly accretive to earnings. It's a company that you wanna old and in yet they remain independent. Getting that Republican question I think when companies are out there looking for acquisitions -- really is it based on. The choir strategy right in though it did did anyone get -- truly. Why is the one quarter would require that you would look at a company likely or it certainly looks like the very attractive acquisition targeted because of the health of the business. They generate a lot of money unit at a very healthy balance sheet. That the balance sheet what people would be too good on that one point four billion dollar in debt. But their operating our cover that one -- -- worry about that at all and if not a bit technical and do you go out and wanted to begin with -- It is very profitable business that the thought of the business that does -- -- in the disposal that the most profitable but it's not on the operating profit company. Well it may get -- back you know mr. Kimberly wants to keep the company to a bill. Well let me let me ask you don't like it -- that BSE the million dollar question how much of a premium in the stock price would he want to in order to sell. You know as I'm looking at I'm thinking about it I like the stock don't give Iraq -- at 57 bucks look at like the stock. But I like it a lot if somebody agrees with me and says hey I'll give the eighty bucks for this thing because I want oldest I wanted to see if ExxonMobil. Owns the answer in I'm just keep we keep talking about them but it could be anybody. But say Exxon holds rate will all of a sudden they dominate the clean up space rate date date date now have a monopoly. What did an -- -- quarry a great sort of reached their and that's basically look at the docket at 830 times earnings. It's not even really that out frightening for the market going up obviously not stop there about six months. But at thirty times earnings clean -- they'll actually looked like a great deal look at the open like a Waste Management that we work on starting at the much larger company. I think when you look at the just the future. Acts blows the weight and it's hampering it thirty times thirty today wound -- -- multiple on the way out for four acquire it does. I think somebody buys it. That tell you right now I think well. Our guys we got on record saying -- thanks for -- -- work take into agreed yet. I don't know the company -- a whole lot longer auto loans. It's it's too it's too good a deal to. Right Jason thanks -- time apple. You know it's cool talking to a guy like Jason does not only does he write about the stock he buys this. And that's that's about buying interest he likes Amazon in clean harbors. -- it would be back June is gonna tell you how you can live longer that's next.