Jan 11, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Although Monaco from CNN business joins us now on the line and Paul it's good to talk to you today. I forward doing well in the previous segment. Mike and I were both talking neither bus was old enough to be able to. Drink ZMO wind it was available for public consumption. Did you ever have won by any chance. It's patently. Bit more gray in my beard and probably actors you have on. York based or that I have no hair so we're not gonna get out there we that would be yet in the then meet ninety's that definitely. Have at least one. If I were old enough at the time that you know to be doing what I'm doing now with the short course. Which is a very. So you're saying that I I did I didn't really miss anything by not being opera one. You did not miss anything. At all you don't need to get in a time machine. Go to those Halcyon days of 1993. The music was a lot better back then. You know it's its interest in Mike and I were talking during the break that the ninety's and looking back. Boar were kind of a strange time actually like while you're in it you don't realize it but looking back it's it's just a whole different ball actually talk about it all day but. I think it's more important talk with a bit about dollar tree. I'm so this a company that you know for about five years or so up until the start of when he eighteen. It seemed like they were really clicking on all cylinders that that price point was working for them they were attracting consumers they made some acquisitions and so force. But 2018 was a really rough year for this company the stock went for about a 114 bucks a share. Down to about 85 and curious number one what is Pickford issues that that the company faced. During 2018. Yeah I acting that oh what's interesting about about college is that apparently dollar is B. Company retail chain debate ought a couple of years ago if not don't. Very well which is why starboard the take. Activist investor that you know in this shake up. Think that now all garden owner Darden restaurant a couple of years ago Dave wants some big changes including a potential stale. You know in the dollar I think you know just. On this super. Low in. Yeah market it seems like there's awesome work. Attention now on chain letters spelling to it maybe not as cheaply as a dollar but it. You know you've got companies that like five bolanos and Ali Spartan outlook it would Cali yeah. I think Myers in the great story a bump in business right now about them. You know there's just a lot more competition here I think there had been a time where. You don't generally have been content we. You know be cracked me he'd be industry. A local bargain basement. It stores and that the longer the case. In terms of dollar tree's specific business it it. You know week we've always talked about Wal-Mart in particular where they had this you know great logistics network that allowed them. To undercut on price along with scale is there anything that dollar tree has that maybe makes them more competitive or maybe a better. The better player in this space than any of their competitors. You know I think that the problems that at least starboard is. Illustrated is that. They think is it's stubborn. You know insistence on CNET that dollar. Value price point just means that that the that they are selling now at a dollar. Because inflation are not as high quality and name or when storms and he. In 1960. Start work out you know. Something that is a dollar and 86 would be worth about two dollars and thirty today to be arguing that the value. All of the product that they are selling our work quality. Been several years ago when you combine that competition out it is counters. And that's why there's this problem. So in terms of where they go specifically with Family Dollar. At this point is it a case where we may see some of that being spun off is it gonna be reorganized what what do you think the most likely out commands of being there. Yummy right now I mean dollar tree is dead after. Starboard and out there investment that. There are obviously willing to have complications with Andy out large investors. You know and and if they think the ancient thing with. Starboard is that they're gonna you know potentially much a proxy site. That there are candidates ward. We've seen that you know at least the case of Darden restaurant at least Star Wars. We know where. Institutional investors in retail investors. We there plan the shake up companies that are underperforming I think doubt that he is right. Seriously in you know consider maybe you know doing something with the acknowledge it he. Obviously. Starboard would be happy with how awfully. Investment. If it would dollar it turned out to eat you know certain logic in that particular change up do we. Very good one last question for you all know that your you're you're giants are out this weekend unfortunately. We do have to NFC east teams that are still in salt what you take the pick their do you think you the cowboys or the Eagles come out on top neither of those games. Russia certainly. Got better if the joke larger period that's that's also say there I can or good that Paul thanks for joining us and we'll catch up with the next week thanks a lot net that your team. Yeah we get we get a tough one on Sunday against the chargers still seeing that that works out but. Not getting tedious if Philip Rivers strapped into it. Right sure is Paula thanks again we'll talk soon and it. So in terms of you know what that I find interest in there and that might present a business opportunity for us Mike. Paul says hey you know dollar tree was started back in you know eighties when you need to really get a lot for a dollar. This might be good times started twenty dollar and under store with the expectation that twenty years from now that's gonna present value Seles game. Crack it's a one dollar. I mean I hope so there's a lot but if you can get twenty cans of soup instead of just Allen in that's that's kind of where will be going was that.