Motley Fool Hidden Gems Investing - Wells Fargo's Unreal Problem

Episode Date: September 9, 2016

Wells Fargo is fined for fake accounts. Apple cuts the wire. Dave & Buster's dips. And Restoration Hardware rises. Plus, influence expert Robert Cialdini shares some influential insights from his new book, Pre-Suasion: A Revolutionary Way to Influence and Persuade. Learn more about your ad choices. Visit megaphone.fm/adchoices

This episode of Motley Fool Money is brought to you by Rocket Mortgage by Quicken Loans. Rocket Mortgage brings the mortgage approval process into the 21st century with a fast, easy, and completely online process. Check out Rocket Mortgage today at QuickenLoans.com slash fool. Everybody needs money. That's why they call it money. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill. Joining me in studio this week, from Million Dollar Portfolio, Jason Moser. From MDP and Supernova, Simon Erickson. And

from Motley Fool One, Ron Gross. Good to see you, as always, gentlemen. Hey, Chris. We have got the latest headlines from Wall Street. Best-selling author Robert Cialdini is our guest. And as always, we'll give you an inside look at the stocks on our radar. but we begin this week with Warren Buffett's favorite bank, Wells Fargo, making headlines because the company fired more than 5,000 employees for opening 2 million fake accounts for existing customers. Wells Fargo was also fined $185 million by federal regulators. And Ron, maybe the most astonishing thing is that this has all been going on since 2011.

Five years, yeah. You know, I'm not naive, or perhaps I am, but this actually disappointed me. Wells Fargo is supposed to be kind of the better bank. That's really why Buffett is invested there. Their reputation is supposed to be above the other folks, at least the other very large banks. And to see this happen is very disappointing, and I think they're getting off quite easily. First of all, $185 million in fines is a blip. The stock has not done anything. thing. I expected it to sell off. I guess people just don't care about this kind of level of, can we call it fraud? It seems like fraud to me. I'm not a lawyer. O' Opening two million fake accounts? Kind of seems like fraud.

I think they're getting off easy. It's going to be interesting to see what happens in the next couple quarters to see if business is actually impacted. Does the brand take a hit and does the business come down as a result? I'm kind of thinking no, because these things are very, very sticky. First of all, they make a ton of money in the mortgage business. I don't think that'll stop. Having an account, whether it's a credit card or a bank account, they're very sticky things. It's very tough to move one. You're paying your bills, you've got your whole life set up. People are like, you know what, I'm just going to keep it. I'm sure this is fine by now. So, I think they're going to get away with this.

Yeah, I would say, I agree with you. I don't think there is going to be any real backlash here. I do think, this does not surprise me at all, unfortunately. It's not just because of an inherent skepticism that I was born with. But I did work for a very big bank in America that will remain nameless, many years ago. And even back then, the incentive system, the structure that was set up, begged for this kind of behavior. And so, I understand exactly how this happened, and it doesn't shock me at all. Really, the question is, they need to do is, they need to convince us as consumers that it's not going to happen again. But based on the way these banking centers perform, their feet are held to the

fire to meet these sales goals, whether it's based on accounts or credit cards or business accounts or lending. And meeting those goals results in you getting your bonus. And so, last couple of weeks of the quarter, when you start seeing you're a little bit light in some of those areas, they start figuring out ways to get creative. And it's unfortunate, I hope this is something, now that it's been brought to light, it stops. But to Ron's point there, ultimately, it is so hard to change a banking account and get those things moved over somewhere else, because you have so many things already coming out. For the consumer, it's not worth it. So, you may hate it, but you're still not going to change your banking

account. I'll take the other side of this coin, guys. I think that those fraudulent accounts that have been created are not as sticky as we think that they are. Wells Fargo, you look back at the numbers, they did $40 billion in non-interest income, which is collecting fees from things like credit cards and from deposits on your account, underfunded accounts and stuff like this. And if this truly is a reputational damage to the bank, you've got to assume that some of those are actually going to move around. You've got to assume that this does affect consumers. And you looked at about 12% to 13% of the company's total earnings coming from just

fees on deposits accounts and also on cards. Couple that with the reputational harm, I think this is a big hit for the company that we haven't seen coming yet. Got a lot of questions on Twitter just in regard to the fact that Buffett and Berkshire hold a big stake in Wells Fargo. I can only imagine the dinnertime conversation between Warren and Charlie, sitting over maybe a Cherry Coke and some peanut brittle, talking about incentives, right? Because I think Charlie Munger's quote, never ever think about something else when you should be thinking about the power of incentives. I'm sure he's probably thinking about that right now. Let's be very careful not to draw any kind of a connection here to Warren Buffett, though. This is something

that Wells Fargo is a very big bank, this is stuff that was happening, it sounds like on the consumer level, probably the banking center level, it was a minority, obviously, of the employees. My bet is, they probably take a second look here at the incentive structure and figure out a way to avoid this problem in the future. My bet, Ron, is that this, because reputation is so important to Warren Buffett, that this doesn't sit well with him. Well, that's for sure. Whether he actually takes a walk and sells stock, I would think not. I think he's more likely to make a phone call and say, let's get our ducks in a row

here and make sure this doesn't happen again, but I'm sticking with you. This week, Apple held an event to unveil the iPhone 7, as well as an upgraded version of the Apple Watch. The iPhone 7 is water-resistant, has a better camera, and no jack for headphones. What do you think, Simon? Well, that's the headliner of this, right? So, there is no jack for it. It's going to be wireless headphones now, basically. These are using Bluetooth technology, already out there. The headphones will work with other devices. But it's also another revenue stream for Apple, right? This is $159 for the AirPods wireless headphones. It'll work with your

phone. It's kind of neat, though, because they automatically pair with an iPhone. They incorporate microphones, and they're actually communicating with Apple's Siri. So, you can use your headphones and immediately start communicating with the device, ask it to do things, everything that's already built into Siri as well. It's more than just what we think of as a wireless headphone. I think more of a communication device with your mobile phone now. It didn't really do anything to move Apple's stock, but shares of Nintendo were up nearly 30% on Wednesday when the company announced it's developing a game for the iPhone called Super Mario Run. Given all of the success

they had with Pokemon Go. We had talked about how, well, they're probably going to look to develop more games. But I'm sorry, a 30% pop on a game that doesn't exist yet? That's crazy. It seems excessive to me, too. But, you know, we have to keep in mind now, I read that there's 500 million downloads of Pokemon Go now, which just blows my mind in the first place. Watch out when you're driving now is the takeaway for me, for anyone trying to pick these up out there. But now you've got Super Mario Run, which is also another freemium model. You download it digitally. You make money once people have downloaded the game. That's a much better business model than somebody having to go into GameStop and physically buy the game.

I'm sensing this is a buy on the rumor, sell on the news moment. I think we'll see the stock come back down over the next few months. I just feel like given all these games, I mean, this just seems like a lot of people have way too much time on their hands. I mean, aren't we in this situation where people are clamoring for jobs and money and stuff? It's all about work-life balance, Jason. Shares of Chipotle up this week on the news that billionaire activist investor Bill Ackman has taken a 9.9% stake in the company through Pershing Squares, his hedge fund. Maybe I shouldn't be, Jason, because the stock did pop a little bit. I'm a little torn on this one, though, given all we have talked about

with Bill Ackman's interactions with Herbalife recently. Yeah, I won't lie, when I read this, the thing that immediately happened, like the Curb Your Enthusiasm music was playing in my mind. I felt immediately conflicted. We give him a very hard time for a lot of good reasons. Ultimately, I think it's great that he sees value in Chipotle. We obviously see the same value as well. We like it in MDP. We own it. I own shares personally. I think that's great he sees value in it. I hope he chooses to go the route of keeping his nose out of the business and just trying to participate in the upside there. You don't think he's going to want to sit

down with Monty Moran and Stephen Ellis? Maybe he wants to have just coffee or something, I don't know. But I really feel like where he gets himself into trouble is probably thinking he knows a little bit more than he does. And I think you look at things like JCPenney, for example, I think there are areas where he probably is just better on trying to participate in any upside and just let leadership do their thing. And I think all the signs point towards Chipotle traffic coming back. They're recovering from this whole E. coli crisis, I think fairly nicely. We can't expect them to figure it all out in one day. But there's no question, just sort of boots on the ground. We get pictures

from everybody on Twitter all over the country showing us these lines in these stores that are picking back up. And the numbers tell the tale as well. I think they'll get a good little bit of a bump from the Chiptopia program this summer. I think that will beget a longer-term sort of loyalty program that will benefit them as well. So, again, I think it's great he sees value in there. I hope he just sticks his nose somewhere else. I'm not holding my breath on that one. Restoration Hardware up more than 10% this week after second quarter profits came in much higher than expected. Ron, it's been a rough year for this stock, but a few weeks back you said, this thing's oversold, there's value here.

Even a broken clock. I get them right every now and then. But this remains to be seen. This is the expectations game. Things are still tough, but they did beat expectations. The company's really undergoing a lot of changes here, transitioning to a membership model, redesigning the stores. They were short on inventory for a new modern line of furniture, so they've got a lot of things they could correct. They have a lot of potential, as my doctor once said to me. If they can turn it, then the stock remains really cheap. It's 10 times EBITDA, but that EBITDA, that cash flow, that income is pretty depressed because of all the things that they're going through right now. So, this is one step. Things are turning

a little bit. We still saw comp sales down 3%. You can't turn a business doing business that way. But, they think they're on the right track, and I think it's okay to take a little nibble here. Kroger's second quarter profits came in higher than expected, but the grocery chain lowered guidance for the rest of the fiscal year, and it does seem like the price wars are starting to affect them just a little bit, Jason. Yeah, a little bit. But let's also remember, food price deflation is not something that is particular to just them. This is just a nature of this business in general. I think

this really is a difficult space in which to invest. And really, when you look at this grocery segment, scale is probably the most crucial part of any competitive advantage that any of these operators can really gain. And I think Kroger has that. They're closing in on around 3,000 stores with a number of different brands, that I think it's good for them because they pursue a very broad cross-section of consumer. I mean, they hit everywhere from the value side to sort of that maybe sort of upper-crust style with Harris Teeter and everywhere kind of in between. Excluding fuel, comps were up 1.7%. I mean, you look on the other side of that with something like Whole Foods, for example, that's really run into

a buzzsaw here. Comps were down about 2.5% last quarter for them, and they're still witnessing a lot of problems there. So, what we've seen, I think, with something like Kroger, it sells in that $13, $14, $15 multiple, and that's OK. This is going to be a pretty steady-edged business, a low-margin business, but they'll pay you a dividend. You can probably see a little bit of upside in the stock price, versus something like a Whole Foods or your boutique grocers that I think are really having a tougher time, and we're going to see those multiples, they'll continue to pare back a little bit. So, all in all, a difficult quarter, but this is a business that knows how to handle it, still a very good long-term operator.

Coming up, we'll talk software and soft drinks. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill here in studio with Jason Moser, Simon Erickson, and Ron Gross. Mixed third quarter results for HP Enterprise. Revenue was lower than expected, but the company did reach a deal to sell its software division for nearly $9 billion. What do you think, Simon? It's taking out the garbage, in my opinion, Chris. This is, HP has bloated its balance sheet in past years of big name acquisitions for software companies for big data analysis. The most infamous, I guess we could call it, would be Autonomy, which they bought for $11.7

billion in 2011, then wrote down more than $8.8 billion within the first year of that. It was such a buzzword that was overhyped, didn't work out. The future of this business for big data is not on-premise big data structured like we've seen. and it's unstructured in the cloud. I think that this is some of those legacy businesses that didn't work out so well. HP has taken out the trash. David Buster's share is falling this week, despite a second quarter report with profits and sales coming in higher than expected. This is a really good quarter, Jason. What's

going on here? Well, let's not go too far, Chris. It was OK. I think the market, really, we know it's forward-looking. It cares more about what's to come. And when you guide comps down rather significantly, which Dave and Buster's did, it's rarely going to go unnoticed. I think it's fair to question a concept like this. When you start bringing down those comp expectations, where's the growth going to come from? This is not some sort of McDonald's-style or Starbucks-style play. There is a limit to how many stores they can open. There are around 85 or 90 of them today. You look in the S-1 filing before they went public, they see a market in the U.S. and Canada of potentially

over $200. I personally think that's probably a little bit optimistic. The good thing for them is they have a very diverse revenue stream in that it's not just food and drinks. More than half of their money comes from the games and entertainment that Ron, I'm sure, could probably shed a little light on. Yeah, my kids love that stuff. You go for the beer and you stay for the skee-ball, is what we always used to say. Yeah, you look at those other entertainment concepts like Buffalo Wild Wings facing some trouble there as well. They're looking to gin up sales by doing a half-price

Wayne concept thing on Tuesday nationwide. So, you can see these stores. Wait, hold on. Next Tuesday? Well, I think it's starting next Tuesday, if not this past Tuesday. We should be investigating this, Chris. But I think any which way you look at it, the restaurant segment is facing some challenging times right now. I am a little bit concerned that Dave & Buster's is getting out there with a share buyback program this early in their life. It's not like they had the healthiest balance sheet in the world, and if they're going to be opening new stores, they're going to need that capital. So, to me, that's a little bit of a red flag I'd

keep an eye on. Shares of Pier 1 imports falling this week after preliminary earnings revealed the retailer will have its fourth straight quarter of falling sales. CEO Alex Smith is stepping down at the end of the year, and I'm sure, Ron, that those two things are completely unrelated. Of course. This is a micro-cap stock now, $330 million market cap at $4 a share. The company rebounded really nicely after the recession, getting the stock up into the mid-20s, but since then it's been just tough, tough times. Preliminary results, sales down almost 7%, and comp sales down 4%. Not profitable.

There really isn't a good turnaround scenario in sight. The search for a new CEO is underway. We don't even know who that will be, so we have nothing to hang our hat on. Four times EBITDA, it's cheap, but cheap is in quotes. It also could be a value trap. If you want to take a flyer, good luck. I'd keep an eye on it before jumping in. Do you think someone looks to take this company private? Not if it's not profitable, no, unless you could really strip out costs or close underperforming stores and make a difference. Alright, guys, we've talked before about how soda consumption has been steadily falling

for years in the United States. And now, for the first time in more than two decades, the most popular drink in the U.S. is water. The average American now drinks nearly 60 gallons of water a year, and bottled water has been a big part of that rise. We've got a couple minutes left here. Can we stipulate that this is a trend that we think is going to continue for the next five, 10 years, something like that? Chris, I was just going to point out that the four of us are all drinking water at this table, not even knowing this story. So, we've got Coke and Pepsi, obviously, have their bets on bottled water. You've

got a company like SodaStream out there that's more for in-the-home. Someone's going to win If this trend continues, who are we betting on? You have the whole differentiation between spring water and then tap water that they just purify, which sounds like a scam to me, but I still continue to buy it every week. I think internationally, you're still going to see the rise of these sugary drinks, and water will be here to stay, as you said, for the five or ten years here. Well, and part of this, Jason, one of these things that we're seeing now is the effects on the environment of just so many plastic bottles of water. The University of Vermont

is now the first college in America to ban the sale of bottled water if it's under one liter. So, that's one more X-factor here. Sure. It's a really interesting dynamic there, because I definitely, as a Diet Coke drinker, have made a point to curb my Diet Coke drinking. I'm drinking a lot more water. I'm drinking a lot of seltzer. But it's a lot of seltzer that we're buying in the stores. I could tell from the SodaStream machine that we had here at Fool HQ that it just wasn't going to last that long, because it's just a hassle. When that cartridge runs out, it's just changing it, it's just too much work.

God, you're lazy. But to your point, though, a recent day before school got started, we were going over to the school to talk about our girls' classes and whatnot, and they were very emphatic about saying, hey, listen, make sure you pack a water bottle in your kids' book bags. Don't send them with a new bottle of water every day. Let's conserve and try to be a little a bit more green. I think this is something that a lot of places and a lot of people are thinking about now. O' Well, Chris, when soda was starting to become popular, we saw all the studies

come out about how bad and dangerous it was for you, right? Are we going to see the same thing about water now? Don't forget that Evian is naive spelled backwards. O' Ooh! Isn't the human body like 99% water? Yeah, I'm taking the other side of that bet, Simon. Alright, Ron Gross, Jason Moser, Simon Erickson, guys, we'll see you later in the show. Up next, we will talk influence and Persuasion with bestselling author Robert Cialdini. Stay right here, you're listening

to Motley Fool Money. This episode of Motley Fool Money is sponsored by Rocket Mortgage by Quicken Loans. And if you've ever bought a home, you already know how frustrating and time-consuming getting a mortgage can be. Rocket Mortgage brings the mortgage approval process into the 21st century by taking all of the complicated, time-consuming parts of applying for a mortgage out of the equation. With Rocket Mortgage, you can easily share your bank statements and pay stubs at the touch of a button, helping you get approved in minutes for a custom mortgage solution that's been tailored to your own financial situation. And the best part, you can do it

all on your phone or tablet. Now, maybe you're not looking to buy a home or refinance your mortgage, but if you are, you should check out Rocket Mortgage at quickenloans.com slash fool. Equal housing lender, licensed in all 50 states, NMLS, consumeraccess.org, number 3030. Welcome back to Motley Fool Money. I'm Chris Hill. Robert Cialdini is a best-selling author and expert on the psychology of influence. His first book, entitled Influence, sold more than three million copies. His new book is Persuasion, a Revolutionary Way to Influence and Persuade. Dr. Cialdini, thanks for being here. Well, I'm looking forward to the opportunity to interact with you and your listeners. You wrote Influence in 1984, and I am pretty confident that your

publisher has spent the better part of the last 30 years bugging you to write another book on your own. So this is your first solo book in more than 30 years. What led you to write Persuasion? The truth is, I never had an idea big enough to compete with Influence until the idea for persuasion came along. As opposed to influence, which covers what best to build into a message to get agreement, persuasion describes the process of gaining agreement with a message before it's been sent. Now, that may sound like some form of magic, but it's not. It's established science. Now, you had a firsthand experience with some of the principles behind your book because you had planned to work on this during a sabbatical at a university and

you were going to have a semester on a new campus, no commitments, plenty of time to research and write. And that plan fell apart, didn't it? It did because of one of the principles of influence that we talk about in the first book called reciprocity, the idea that after we receive from someone, we're very ready to say yes to that person in return. We simply say yes to those we owe. And I was bargaining with the associate dean at this other school where I was going to spend my sabbatical to get some features in my office, a computer, library privileges, parking, the free phone long-distance call, these kinds of things. And he called me and said, Bob, I've got great news.

We've got you all those things that you wanted. In fact, the computer in your office is even more powerful than you asked for. And I said, well, thank you. I genuinely appreciate that. And he waited, he paused a beat, and he said, well, there's something we'd appreciate, Bob. We have an emergency need for someone to teach a marketing class, and I wonder if you could do it. It would mean a lot to us. Well, I had never taught a marketing class in my life.

I had never taught in a business school. I had never taught this particular type of individual MBAs before, which meant that I was going to be spending the greater period of my time there preparing and teaching this class. but chris in the moment after he had done this thing for me there was no other way for me to respond except to say yes i can only be glad he didn't need a kidney well that's one of the things that you really get at in this book is the importance of timing because i think that you You know, for anyone who has encountered persuasion in all its various forms, whether it's in person, whether it's an advertising message on television, in your email, that sort of thing, it's nothing I had really thought too deeply about before digging into your book a little bit. But it's not just using the principles, it's also using the correct timing, because it really does seem like that dean had a window of opportunity, and he took advantage of it. And if he had come back to you later, it wouldn't have worked.

Exactly. And more than that, he made the moment. He gave me these things. And in the moment afterward, I was ready to say yes. He didn't just wait around for the right moment to occur. He was a moment maker. And in fact, the title of the book, which is now Pre-Suasion, was originally to be called Moments of Power. And what I recognized in researching moments of power, when you're most likely to get yes, is that those moments are the moments immediately before you deliver your request.

You put people in a state of mind that makes them receptive to the next thing that you say. Well, and this is something that comes up in the book. It's not just when you're talking with someone. It can also come in written form as well. We've talked many times on this show before about Warren Buffett. You are a Berkshire Hathaway shareholder, and one of the bits of data that you cite in your book is Buffett's annual shareholder letter from 2015, the famous 50th anniversary letter, he took the opportunity to persuade shareholders for some pretty direct news about the future of Berkshire Hathaway. He did. He had a section in that letter, the future, the next 50 years, because they had just completed, he and Charlie Munger just

completed 50 years as partners at Berkshire Hathaway, taken the company to stratospheric levels of worth, and the question was, should an investor continue to invest in Berkshire Hathaway? How can you convince someone that the next 50 years are going to be as good as the last 50 years? And he did something that was persuasive, and I had never heard him do before. He said, now, I'm going to tell you what I would say if I was speaking to my family about this issue. now i'm a shareholder and you know in that movie um in where tom cruise jerry mcguire

and and he walks into a room and he tries to convince his wife to be uh his his life partner for the rest of their lives and she says to him you had me at hello right when warren buffett said this is what I would say to my family. He had me at family. He had persuaded me that the next thing he was going to say was something he would say to me if I was a family member. And I was ready to believe it now fully and deeply as a consequence. You're listening to Motley Fool Money, talking with Dr. Robert Cialdini. His new book is persuasion, a revolutionary way to influence and persuade. I'm wondering about someone reading this book and trying to put some of this science into work in their life, whether it's with

co-workers, with a boss, someone in marketing, advertising. And I'm wondering if the biggest mistake someone can make in trying to influence or persuade is coming on too strong. Because I I think that it seems like subtlety is a really important component of all of this. Right. So let me give you an example of subtlety by changing one word in what you ask your boss for when you have a new plan or an initiative or an idea that you want support for from your superiors. So typically what we do is we develop the blueprint for our plan, perhaps a draft of it,

and then we give it to the boss and say, I'd love to have your opinion on this. Could you give me your opinion? That's wrong. Because psychologically, when you ask for someone's opinion, that person takes a psychological step back. from you and into him or herself. They look inside and separate from you. If instead of asking for an opinion, you ask for that person's advice, psychologically, that individual takes a step towards you. Because advice causes people to go into a cooperative, collaborative

partnership kind of mindset. It's a teamwork kind of mindset. And that person steps towards you and your idea. And the research shows if you ask for advice instead of an opinion, you get more support for whatever it is that you propose. So here's a subtle thing we can do. You're not coming on more strongly by saying advice as opposed to opinion, and yet it works significantly better. Given the three decades that pass between influence and persuasion, I'm curious if there has been any sort of significant shift in your thinking when it

comes to the psychology of influence, or even something that, as you were working on this book, doing research, something that surprised you. Well, yes. I mean, aside from the idea of persuasion, that we can move people in our direction before they encounter our message, there was one other thing that jumped up, And that is, I'm going to characterize it in terms of a seventh universal principle of influence. In the first book, Influence, I identified six. And now, in persuasion, I identify a seventh. It's the concept of unity, the idea of establishing the perception of we, W-E, in the minds of the individuals you are talking to.

If you can arrange to be perceived as someone who is of your audience, not just like your audience, but who has a similar identity as your audience, everything becomes easier with regard to the influence process. People like us more. They cooperate with us more. They believe us more. They trust us more. So one of the things that I explore in the book is how do we arrange for people to include us inside the boundaries of we for them? What is your daily life like? Like, given all of your expertise, it's hard for, like, I just imagine you watching television, watching commercials, and are you able to turn off your brain at all?

Or are you just watching commercials and thinking, yep, that works, yep, well done, no, that was terrible, I could help them fix that? What's that like for you? It's the latter. I'm always, like a shark, through water. I'm always taking things in and trying to digest them for what they're doing that increases or in some cases decreases the likelihood that an audience will agree or lend assent to what they are asking us to do. I even do it in an airport when I'm sitting waiting for the plane and somebody says, you know, we've got a full plane and we'd like to have those of you who would be willing to take the next flight offer their seats. I listen for what they say next. How do they entice people to do that?

It's more than just the merits of the thing. It's the way that the merits of the thing are presented that's so intriguing to me. Is there any airline that's particularly good at that? You know, I haven't identified one that's particularly good at it, but I did identify one guy who did it completely wrong. He said, if you will give up your seat, we will offer you a $5,000 coupon. And everybody listened, right? And then he said, oh, just joking, it's only $300.

Well, not one person went up there. He used $5,000 to get our attention, but then he fumbled the ball because compared to $5,000, $300 seemed trivial. He could have said something else. He could have said, and we're going to give you a coupon for $5. Well, he would have gotten the same attention from it. What, $5? And then he could have said, no, just kidding, $300. And I'll bet he would have gotten a crowd of people at the desk.

The book is Persuasion, a Revolutionary Way to Influence and Persuade. It is already an Amazon bestseller, and it's available everywhere. Dr. Cialdini, thank you so much for being here. I enjoyed it, Chris. Crystal blue persuasion. Up next, we'll give you an inside look at the stocks on our radar. this is Motley Fool Money. As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy

or sell stocks based solely on what you hear. Welcome back to Motley Fool Money. Chris Hill here in studio once again with Jason Moser, Simon Erickson, and Ron Gross. It's time to get to the stocks on our radar. We'll bring in our man, Steve Broido, in from the other side of the glass to hit you with a question. And you know what? We've got the time, Ron. So, go ahead and fire ... Should I speak slowly? No, no. I was going to say, go ahead and fire a question back at Steve. But you're up first. What are you looking at?

I'm looking at Buffalo Wild Wings, BWLD, which is surprising for me, actually. It's not a stock I've ever really looked at. It's down 20% over the last year, and they have been struggling lately. For a value guy, that's where I start to get interested. The quarter Twitter looked a little bit better lately. We'll have to see if they can continue to build on that momentum. They're diversifying away from just the NFL, NBA, and the hockey playoffs, and they're getting into soccer and esports, and they're hoping that will continue to drive people into the store. They're playing with some price cuts on certain days of the week to help drive revenue as well. Digital orders are growing. Higher average

check orders seem to be on the horizon. They were last quarter. So, I'm taking a look. Ten times EBITDA, not the cheapest stock in the world, but it's getting interesting to me. Steve, question about Buffalo Wild Wings? How many is too many televisions to have in one restaurant? You go in there, it looks like Mission Control. The over-under is 10. But my question for you is, first of all, are you a wing eater? Not at all, no.

Okay, well then I have to go to plan B. Hot dogs or hamburgers? Definitely hamburgers. Okay. Jason Moser, what are you looking at? Sure. The prompting of one of our members at MDP, taking a look at AMN Healthcare Services. Ticker is AHS. Ultimately, these guys focus on getting healthcare professionals in the right places at the right time. According to IbisWorld Research, this market is a big one. $15 billion in revenue annually. AMN holds about 7.5% of that market. Leadership CEO Susan Salka, who's been there since 2005, has really brought the goods. The stock has

performed very well. It's a multiple-time recommendation at Hidden Gems. A lot of qualities you have to like. Growing the top line, profitable, cash flow positive. This is, I think, an MDP watch-lister in the making. Steve, question about AMN? Explain exactly how they're getting doctors to the right place at the right time. It's essentially a logistics company. They're taking the staffing that we have in this country of trained professionals and making sure that the facilities have the right professionals where they're needed, when they're needed.

Wait a minute, wait a minute. I've got a question. This has been weighing on my mind here a little bit, because of this stock, and then I started thinking, I'm getting ready to turn 44. Steve, have you ever had a colonoscopy? No, not yet. But I'm looking forward to it. Just checking. Got to take care of your health. It's the most important thing. Simon Erickson, what are you looking at? Thank you, Jason, for getting that dire question in there. Appreciate it. I'm also

in the healthcare space. Look at UnitedHealth Group. The ticker is UNH. This is the United state's largest health insurer, cover over 132 million unique individuals with some form of interaction and coverage. And they're filling over 1 billion prescription drug scripts per year as well. And this is just a company that the more data that they get, the better and more efficient they're going to get also, because they're going to get healthcare costs down, have accountable care organizations which are focused on outcomes rather than just reimbursements. I think that UnitedHealthcare is in the prime position to benefit from this. Steve, question about UnitedHealth?

Do you think there's alignment with our healthcare system with companies like United? Are they trying to get me healthier so they're spending less, or are they just trying to spend less? Yeah, it's actually a win-win for everyone on this one, Steve, because you're trying to get outcomes of better healthcare as patients, but also the insurers are trying to get costs down, too. So, it's less about just reimbursements for going to the hospital more often and more about the outcomes and staying a healthier lifestyle. So, win-win on that one.

Steve, my question for you is, what is one thing in your life that you would personally like to have more data available to you? Oh, wow! That is a very specific question. I would love more data on ... I'm at a total loss. I have nothing for you. I have so much data accessible right now. It's a good place to be. Buffalo Wild Wings and a couple of healthcare stocks, Steve. You got one you're interested in there? I would have to go with United Healthcare. I think we use them here at The Fool,

and I've been very happy with them. You knew he was never going to go for the Buffalo. I did, though. We can hope. All right. Ryan Gross, Jason Moser, Simon Erickson. Guys, thanks for being here. Thanks, Chris.

Thanks, Chris. You can check out past episodes of Motley Fool Money and all of our podcasts. Just go to podcast.fool.com and subscribe on iTunes, Stitcher, Spotify, and Google Play. That's going to do it for this week's show. Our engineer is Steve Broido. Our producer is Matt Greer. I'm Chris Hill, and we'll see you next week.