Motley Fool Money - Toys, Candy, Alcohol, and CES 2020

Episode Date: January 10, 2020

Costco reports some holiday cheer thanks to the strong trifecta of toys, candy, and alcohol. Bed Bath & Beyond sinks. Lennar raises the roof. And Grubhub delivers a denial. Motley Fool analysts Andy Cross, Emily Flippen, and Ron Gross discuss those stories and weigh in on the latest from Constellation Brands, Luckin Coffee, Pier 1 Imports, Macy’s, Kohl’s, and Taco Bell. Our analysts share three stocks on their radar: Accenture, Livongo, and Meituan Dianping. Plus, The Motley Fool’s Rex Moore shares some insights from CES 2020 and talks 5G, driverless cars, and 3D printing. To get 50% off our Stock Advisor service, go to http://RadarStocks.fool.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Good to see you, as always. We've got the latest headlines from Wall Street. We will head to Las Vegas for a report on this year's CES. And as always, we'll give an inside look at the stocks on our radar. We begin with retail. A whole lot of retail, Ron. But we'll start with Costco. Same store sales for December, up 9%. That is two percentage points higher than Wall Street was expecting. I was telling you before we started, I don't think of Costco as a retailer that needs to or necessarily actually crushes holiday quarters or months in this case. But holy cow, they really nailed it. Never underestimate. Never underestimate. The power of toys, candy and alcohol. Because that was getting the job done in December. And

it's a really strong period for them. But I agree. The company doesn't rely on it. It's not kind of a Black Friday kind of situation where they have to wait for the holiday season to become profitable. They're profitable consistently, thanks largely to their subscription-based model, not the fact that they're a retailer and rely on the sale of goods to become profitable. But But this was really strong. Love to see their internet sales really be robust, up 43% in December. That's important for a company like Costco, which has to compete in the world of Amazon. Well, especially because they had a little e-commerce blip during the Thanksgiving period, as we talked about before. They are nearing that 100 million total card holder mark that we

talked about before, that I'm sure they're going to cross over when they release earnings for the fourth quarter, for this last quarter. So, Chris, to your point, the membership business just continues to be really the, allows them to be able to continue that steady performance. It's very profitable. It allows members to keep going into that Costco and having all those great experience buying all the candy and liquor and the rest of the buying. So, continuing to just do really well from that market allows them to be one of the more steady performers on the retail front. We consistently have loved Costco around here for a long time. Now, stock is not cheap. I must be honest. It trades 34 times.

for a value-based warehouse retailer. You've got to be a little bit careful. You can buy Walmart at 23 times or BJs at 14 times. 34 is a premium for a premium company, but be careful. I have to wonder if there's an upper limit for Costco members. Is anyone here a subscriber to Costco? Have you ever tried to go to Costco on a Saturday or a Sunday? No, I don't actually go.

I just pay my fee. I'm their favorite kind of phone. They love you. They love you. I will say, I'm not a Costco subscriber, so take this with a grain of salt. I purposely avoid trying to drive anywhere near Costco on the weekend. It's great for Costco. I mean, it's packed.

But I know, anecdotally, that it bothers some people when their shopping experience is diluted by literally a thousand other shoppers, all lining up to get gas or all lining up for that delicious rotisserie chicken. The one thing I will say about that is, though, they do do an extra. excellent job of getting you in and out through the lines. That's very true. Even though it's packed, and even though you have to be a little patient, they do a good job. We've got some other retailers making news this week. And unfortunately for them, it's not all as positive as we just discussed with Costco.

We've got Macy's coming out of the holidays with some store closures, shares of coals down because their holiday sales were kind of weak. And Pier 1 imports, the only thing more amazing than the fact that Pier 1 imports announced they're closing 450 stores is the fact that they still have more than 500 locations left over. Why is retail so hard for everyone else? Yeah, poor Pier 1. This is not going well. If you recall, they recently had to do a one-for-20 reverse split just to remain listed. It's not going well.

They've recently had to draft a bankruptcy proposal just-in-case, and the just-in-case may actually be a reality. Their comp sales just continue to plummet. They can't cost cut their way out of this problem, I don't think, or close underperforming stores to help. I think there are just too many retailers out there, and not all of them can generate cash flow. With Pier 1, I think the writing's been on the wall for a while.

I first realized that I'm at that age now where I'm getting invited to a lot of weddings. And there was a time when people would have registries at Pier 1. Wicker. Wicker was in. Yeah. It really, it was the place to be if you're going to buy premium furniture. But when I'm invited to these weddings and look up their registries, it's Wayfair. It's Amazon. You get some other retailers in there, but I think it's just been hard for traditional retailers of all sorts to compete with what's now an increasingly convenient experience of purchasing online. For gift registries in particular, that involves seeing immediately what that person wants, clicking a button and having it automatically delivered to them. I'm just wondering how Pier 1 got to the point where they have a thousand locations.

It's not like... It's not like... There was a good stretch of time where Macy's was doing well as a business and therefore as a stock. I don't think Macy's ever even came close to having a thousand locations. Yeah, they're different kind of storefronts. And also the U.S. continues to be way over retailed when you look at the square footage compared to other developed nations around the world and to and to... point, they're just much more competition. Look what happened with Alta. Altow continues to be a very high performing company, but even they are starting to see a little bit of the pressure

on some of the changing, purchasing habits of consumers. And they have to adapt very quickly. And if you don't, retail is one of the most competitive spaces. You'll just be creamed. Yeah. In the vein of retail being tough. It's interesting that Macy's is being applauded for having November, December, same-star sales that were only down .7%. People were expecting it to be much worse. Third for example, it was down 3.9%. So a little bit better, but still down. They're doing their vest. They're revamping stores, about 150 of them. They're trying to get their digital business in shape. They're having some traction there. They're going to close 29 stores, 28 Macy's 1, Bloomingdale's. They're doing their best, but it's tough. There's a lot of department stores

out there, and perhaps there are too many of them. Well, and just to close out on retail, it was a rough week for Bed Bath and Beyond. Shares were down around 20% in the middle of the week. They came out with third quarter results that weren't good. In fact, Mark Tritton, the new CEO, came out and was very clear right at the top of the call that this was not satisfactory. They withdrew guidance for the full fiscal year, which maybe we shouldn't be surprised, given the bold moves that Triton has already made in the short time that he's been CEO.

But despite all of that, I still feel better about the prospects for Bed Bath and Beyond than I do about Pier 1, Macy's or Coles. I think that's because it feels fixable. And maybe it's because of Triton. He did a great job at Target, and Target is a wonderful company and stock today. Perhaps he can do it again. He's been really basically brought in to fix this business. We recently saw a major shake-up in leadership with six executives leaving. They did a $250 million real estate sale leaseback transaction. They're closing 60 locations, cutting costs. I'm sure we'll see Triton do a bunch of stuff like he did over at Target. with a private label, an exclusive brand business.

I don't sleep on this company. This could be an interesting one. With all of these retailers, and especially Bed Bath and Beyond, I have strong opinions that a lot of their failures are associated with merchandising. And so I'm not completely sold on the turnaround story. If I had a choice to not buy any of these companies, I wouldn't buy any of these companies. Don't you have that choice? I do have that choice.

I don't know any of these companies. There you go. But when I think about the potential for a company, turn around. I do think it depends entirely on merchandising, something that would make you choose to shop at a bed bath and beyond versus all of the other cheap, convenient options that you have in your life. And Triton just started too. So this is like Turnaround 101. He's just getting all the bad news out there and trying to turn things around. I do want to say that they're competing against not just in the operating market, but in the public markets with Walmart and Target stock

doing so well. So it's like those options you have to go to, Costco, you have options to buy other stocks. So the hurdle rate for the company is not just on the operating front, but on the stock front, which is why I think people are a little bit perhaps excited about bedbathing beyond the stock rebounded a little bit after its major drop. Toys, candy, and alcohol. That's all they need to know. With that, let's move on to housing. Linar closed out its fiscal year with a bang, the number two home builder in the U.S. Linar's fourth quarter profits and revenue. Both came in higher than expected and shares up 4% this week, Andy. Yeah, really nice quarter. Revenue is up almost 8%. Home deliveries up 16%. New orders for the quarter up 23% to 13,100. And the dollar volume of those orders continue to be healthy up more than 20%. Boosted the dividend nicely, buying back some stock, paying down some debt, really trying to get not just the operating picture in place for a stock that really hasn't done a whole lot. We look at the competition. But the operating front, too, on the financial services, doing very well. They're capturing more of the mortgage market. market on the houses they sell. So overall, a kind of nice second half of the year for Lenar

and it showed in the stock price. Well, and you look at the fact that they also increased guidance for the number of homes they expect to deliver in 2020. It might be a stock that has a little bit more room to run. Yeah, it's very cheap. It's only about 10 times. Ernie's now housing business is very cyclical. We know that. But it's relatively inexpensive. And like this, like I said, the second half, they really got some momentum and they're building them that into the, into the 2020 year. Shares of Constellation brands up a bit this week. Third quarter results for the alcohol beverage company were mixed with growing profits in the beer business, helping to offset

another non-cash loss in Constellations investment in canopy growth. Emily, what stood out to you? To be clear, from Constellations brands, core business alone, that's their beer, wine, and liquor business, they actually raised earnings guidance for that core business. So pushes into new areas, In particular, new brands, such as their Corona Refresca, that's a Corona-branded Hart Seltzer, have really been paying off for the company. I think Constellation Brands is making more of a concerted effort to diversifying their product stream to match with what's trendy. They are admittedly a little behind on the hard seltzer push.

However, they did have great results from that Corona brand. That Corona brand has continuously performed well among specific groups here in the United States. But what else is interesting is that they're kind of earlier adopters of canned wine as well. And so I've gotten some flack for talking about boxed wine. I will avoid the boxed wine conversation. Not from us. That's unfair. That's unfair. Who's doing that? Here's the new thing. You don't need boxed wine. You need canned wine. So their brand of canned wine, that's Crafters Union. It was the number one growth driver in the canned wine business over the past 12 weeks.

Now, that's a short period of time, but they're pretty early on in this launch. So that will be exciting to watch. And as you alluded to, their investments in cannabis company, canopy growth, haven't been performing that well. They continue to see losses there. However, they just installed their former CFO as the CEO of Canopy Growth. So it'll be interesting to see how that plays out. You know, I haven't tried to can wine, but if anyone at Constellation Brands is listening

and wants to send some samples over to full headquarters, we'll be happy to give that a shot. I prefer white, red. It needs to be cold, I feel. Real quick, Emily, Bill Newlands, we were talking earlier about CEOs at retail companies. Bill Newlands has been the CEO for about 10 months at Constellation Brands, kind of like Mark Tritton at Bed Bath and Beyond. He's done a lot of cleaning up. The stock's still up about 10, 12 percent in the time that he's been CEO. Is he setting himself up for a good 2020? Because it seems like a lot of the bad stuff, including that ballast

point acquisition, is out of the way. Yeah. Although, you know, with the lingering investment in cannabis, I think it's It's too early to make that call. But I will say I like a lot of the initiatives that they're making right now, obviously selling off a lot of their underperforming segments, putting more of an emphasis on newer segments that are meeting current demand trends, as well as putting emphasis on their premium segments. So premium wine and beer that sell for higher price points, this have also been doing really well under his leadership.

Coming up, if you're looking to make $100,000, then we've got a job you might want to consider. Stay right here. You're listening to Motley Full Money. I've got $2 in the chew box. Welcome back to Motley Full Money, Chris Hill here in studio with Andy Cross, Emily Flippin, and Ron Gross. Rough end of the week for Grub. Shares of the food delivery company fell more than 7% on Friday after Grubhub had to publicly deny media reports that the company is for sale. Andy, I feel like that is never a good sign.

You have to basically come out and say, no, really, we're not dead. Yeah, there's been rumors that someone would come and buy Grubhubhub. They had a really tough third quarter where they reported just really slowing growth, trouble with the competitive landscape that they are facing from the likes of DoorDash and Postmates and others, and Uber Eats especially. This business is very competitive because these companies don't care about making money, apparently, and that's just starting to affect Grubhub, which has been very profitable as the market leader. They used to have more than 50 percent market share in the U.S.

That's down now to about 30 percent. to some studies, and the profit picture just gone with them. So there are some thinking, some analysts out there and some stories floating around that Grubhub would be a very good fit for the likes of a Walmart, maybe, where some have talked about they could take their expertise in delivery and really add that value to Walmart, maybe even questions about Amazon jumping in there, too, as well. It's a $5 billion company, so it would be a small buy for those large companies. And they do have some expertise in delivery, but But I think it's probably a stretch and Grubhubbh came out and denied those acquisition talks.

Food delivery is a hard business to make economical, but I do think that one of the things that could help them are partnerships. So we've seen a lot of partnerships very recently, a big one being between Barclays, so Barclay cards and Uber as well as Uber Eats, giving people benefits that would encourage them to use one delivery service over another. Just this week, Chase announced that their Chase Reserve card, their Sapphire Reserve card, was partnering with Lyft and DoorDash and giving people DoorDash benefits. So maybe what Grubhub needs to do is look to see what can we do to encourage people to use our platform.

That would make it more sticky. But what's not helping them is a May 2019 study from U.S. foods that found 28% of food delivery drivers admitted to taking food from orders. Eek. Maybe not surprising? I don't know. I feel like if French, we're talking about French fries? Just a couple of fries?

Just don't touch the other ones. If you're talking about taking the top of the burger of the bun off and eating in like a pickle, that gets a little gross. You can't make it obvious. Yeah, you can't make it obvious. You got to maybe chicken nuggets. Shares of luck and coffee up 25% this week after the Chinese coffee startup announced plans to expand into vending machines to increase its market chair. Emily, no one in this room is more bullish on the power of coffee than I am. But 25%, that seems like a lot for a basic announcement.

This initiative could be an unmitigated disaster for Luckin, but it could also be the only thing that saves their company. It's one or the other. The problem is that Luckin coffee, while many compare it to Starbucks, it's a completely different business model. They sell really cheap coffee in China. They continuously have promotions, which still exist today, that essentially give you one free coffee for every coffee that you buy, and their coffee is already dirt cheap. They're going to deliver it to you. You don't sit down and go to the restaurant. So the idea of installing a machine that makes a coffee for you. Some people, obviously that that 25% pop there is associated with the fact that this would be a higher margin business, presumably less

fixed costs associated with employees. The problem is, is that there are actually a lot more fees associated with putting in and installing these machines than you may think. So these machines, do you have any idea how much they might cost? Anyone want to guess how much one flukking coffee machine will cost? $799.99. They're expecting to cost around $25,000. That's what I meant. So it's a lot of money, and they're competing with incumbents in this space. So the big one is Café Ling Dienba, which is a machine that's already in 160 cities, which have more than 3,000 machines across the country and 7 million registered users of the machine. So the point is, it's a competitive space. They're already burning money like nobody's business,

and it might cannibalize their existing business. Managers wanted, starting salary, $100,000. No, this is not a job posting for the latest restaurant from Hosers. Zay Andrus or Wolfgang Puck. It's Taco Bell. The company announced this week is going to start testing higher salaries in the Midwest and Northeast. And Ron, I'm thinking about just jumping in because I figure I'm going to get all the queso I can get. In all seriousness, though, I'm fascinated by this because this has been a business that's performing really well for young brands, and it wouldn't shock me if this is one more step to Taco Bell being

spun out. I guess I could see that kind of the way, like, Chipotle really used to be part of McDonald's back in the day. It's an interesting story. I think it speaks to our tight labor market more than anything else and how we really have to pay not only a living wage, but a pretty hefty penny to get good folks to come in and manage your business. All right, Ron, Emily, Andy. We'll see you later in the show.

Up next, we're heading to Sin City for the latest headlines in the world of consumer technology. Stay right here. This is Motley Full Money. Bright light said he's going to set my soul, going to set my soul on fire. Welcome back to Motley Fool Money. I'm Chris Hill. This week, more than 180,000 people headed to Las Vegas for CES, the largest consumer technology trade show in the world. Notley Fool analyst Rex Moore is one of those people. Earlier this week, producer Mack Greer caught up with Rex to learn about what's hot and what's not at this year's CES. And as Mac indicated, Rex Moore is no stranger to this event. Now, this is your eighth straight year at CES.

What is your headline for CES 2020? Ah, well, the headline for me is that there are some companies that are choosing not to exhibit this year, like Nvidia is not here. They've usually had one of the bigger booths on the floor. We did get to meet with them privately because they sent us an invitation. They have a private suite at the win. So I'm seeing more big companies pulling out and maybe slightly lower attendance here this year. One of the storylines I know that you've been writing about is 5G. Now, I get that 5G makes things faster.

But where am I really going to see the benefits of 5G and how do you see it playing out there at CES? Well, maybe you could liken it to, as computer processors get better, you're able to do more and more things. And so as these cellular speeds get faster, the technology that relies on it will become much greater. So, for instance, self-driving cars, it will allow better stability for cars to be connected to one another, not even self-driving. Just connected cars is going to be a big boon for the consumer. Even if you're driving your own car, you'll be able to get signals that there's potholes ahead or accidents ahead, that type. of thing and of course many other industries rely on this type of communication, whether it's digital health, just a number of things.

And Rex, you mentioned self-driving cars. I know you took a spin in a self-driving car, courtesy of Yandex, which is sometimes called the Google of Russia. Now, what was the ride like? Paint the picture for us. The ride was awesome with nobody in the driver's seat. Usually there's a safety person behind the wheel on these demos, but this one just went out without a person behind the driver's seat and went out, stopped, waited for a bicycle to cut in

front of it. We went out onto the streets of Vegas. It was great. At one point, some pedestrians kind of stepped into the crosswalk in front of us, and the car had to break really hard, and it worked perfectly. Now, is there someone in the front seat, or who else is in the car with you? There is a Yandex person in the passenger front seat, so if something did go crazy, I assume he could hop over there or something. And Rex, when you look at self-driving cars, when you look at a car like that and the way that may unfold in the future, do you think the primary market is going to be commercial use by the likes of an Uber or Lyft?

Or do you think consumers are going to buy self-driving cars for private use? I think that's a question that's still to be answered. I think obviously Robo taxis and the Ubers and lifts will be a huge part of it. it will be interesting to see for especially urban dwellers will they ever need to buy a car again will they ever need to get a driver's license again i would assume it would be available for individuals to purchase but i think at this point we still don't know and what's a company that you've seen at cES this week that you wouldn't have thought would have been there well last year i surprised chris hill with proctor and gamble was one of the most exciting

exhibits. This year, how about John Deere? Because agriculture, again, this goes back to 5G and the internet of things. Agriculture benefits greatly from things like this. If you think about like sensors in the ground that can tell you how much moisture is there or the composition of the soil and exactly what type of fertilizer you need, for example, can all be done automatically with a connected type of farm. So John Deere had a great, you know, the big old tractor there and everything. It's a little jarring to see that at a big tech show, right? Oh, yeah, yeah, but that makes total sense that there could be some profound implications for ads. Now, Rex, when I went to CES a few years ago, and I think you were there as well, 3D printing

was all the rage. It was everywhere. And that excitement, I think it's fair to say, has worn off a bit. For CES 2020, what's one overhyped technology and what's one underhyped technology? Okay Let's Do you know how like Have you heard the thing where McDonald's fries are both the most loved and the most hated nationwide? Yes How about you could say 5G is overhyped

Because we see it in almost every booth somebody's like putting up Putting it up as a buzzword Yeah 5G whatever Even if it doesn't really it's not really that relevant to that company But at the same time It may be the most underhype because as much as we're hearing about it, it's really, I think, going to change the landscape

once it starts rolling out and available to everyone. And what about 3D printing? What is the state of 3D printing these days? Well, you know, I was considering that for maybe an underhyped thing because now it's just completely dead. No one talks about it. The space dedicated to it is dwindled to not very much. None of the big companies are there anymore,

like 3D systems or Stratis, and, you know, So it's well past the hype cycle. Maybe now people could be looking for some value out of it. I don't know. But it really has dwindled quite a bit, and no one talks about it much anymore here. And Rex, what was the strangest thing you saw at CES? The strangest thing.

How about a smart toilet that had poop emojis they were handing out of the toilets to people as they passed by? Wow. Now, explain what a smart toilet is. You know, I don't even know. I don't. Is this a family show, Mac? This is a family show. We can clean it up a bit.

Yeah, so I don't know. It was a smart bidet. And I didn't really, things like that sometimes I just grabbed the poop emoji and keep walking. Okay, fair enough. We'll just leave it at a technology-enabled toilet. There you go. There we go. Okay.

Now, Rex, in one of your email misses, you had a picture of a robot that plays ping pong. Oh, okay, yeah. And I also read an article about a robot at CES that can make 31 different salads. So here's the question. If you had to pick between robots, you've got a robot who can play ping pong or a robot that can make you a salad. Which one you're going with? I'll go with the ping pong. I've got whole foods near me.

I can buy salads any time. want. But I need a ping pong partner, Mac, badly. Okay. I like it. I like it. I think I would probably go ping pong as well. Although I like, I like me a good salad. As we wrap up, coming out of CES, what's one thing you'll be watching? It could be a company, a trend, a technology. But as an investor, as someone surveying kind of the public markets, what's one thing you're watching going forward? Yeah, I am just waiting to see when the big break will be for the self-driving technology. because to be, you know, honestly, we've been talking about it for years. We, I've been getting into cars for years. Now, maybe we're, I'm a little too close to it and I'm getting impatient and a lot of people had mentioned 2020 is the year. We'd finally see them on the road and that obviously is not going to happen yet. So that's what I'm watching. Like, when are we going to get the big break for this to come out? Do you think self-driving cars are the new flying cars? Because when we are young, flying cars were just around the corner.

and they're still on the corner. And I'm just curious, are we really going to have fully self-driving cars in our lifetime? Or is that going to be the new flying car? No, no, I believe that, that we will, you know, assuming I don't get hit by a bus today. But, you know, it's here. The technology is pretty much ready to go. There's regulations to be taken care of. But I think the benefit to society is too great to ignore and just go away.

All right. and you're willing to take one on the DC Beltway tomorrow. Hey, I've been in Eric Bleekers Tesla with the self-driving on. I've already been on the Beltway with partial self-driving technology. So, yes, I'm ready, Mac. Okay, well, there you have it. Rex Moore joining us from CES 2020. Rex, thanks for joining us.

My pleasure. Coming up, we'll dip into the full mailbag and share a few stocks for your watch list. Stay right here. You're listening to Motley Full 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 ourselves stocks based solely on what you're here. Welcome back to Motley Fool Money, Chris Hill, here in studio with Andy Cross, Emily Flippin, and Ron Gross. Our email address is

Radio at Fool.com. Question from Ben in Iowa City. He writes, I'm a college student and looking for a little help on research. Other than looking at a company's SEC filings, where do you go for information on a particular industry? Also, if you have any investment books to recommend, I'm all ears. Let's take the first part of that first, Ron. All right, Brian. I love the fact that your researching companies. It's great. The company's website is an obvious place to go fish around there, learn about the business, go to the investor relations portion of the website, check out a presentation, perhaps, from a latest shareholder meeting or an investor conference. Don't be taken in too much by the rosy picture that

all of these presentations kind of paint. But go there for the first. facts that are represented. You'll rarely see negative things in the presentations, but they do provide some pretty good overviews of the companies. Emily? When I look at industries and I try to evaluate the status of an industry, there's a lot of helpful resources that I think people don't think about. One of which I love recommending him because I was an NYU student myself. So Aspastomotor and a professor at NYU makes a lot of his material free online. So if you just Google search him, he has a lot of valuation metrics that are easily accessible for industries.

So if you're looking for industry level data, he has a lot of that. Now, whether or not that's useful for you, it depends on how much you really use valuation metrics and your investing activity. I don't tend to use it a lot. So what I like to do is compare against competitors. So to the extent that you have publicly trade competitors, if you're interested in a company, be sure to pull up all the competitors' financial statements and compare it. It could be a thing like, oh, their growth is drastically outpacing competitors, which can

be great. But it could also be a red flag, right? It could show some sort of manipulation. So it gives you a better idea about the status of the overall industry as opposed to just one company in it. And what he'll do also, he'll take a company and he'll break it down for you. He'll take Amazon and it'll run you through the valuation of Amazon from his perspective. And you can pick it apart.

You can say, I don't agree with that. I think he's being too conservative there. He typically misses all of these high growth companies, as value investors often do. It's an interesting website for sure. Definitely do not abandon. or ignore YouTube. I think that's a great place to be able to learn information about the company and the leadership. Tom, I know Tom Gardner does a lot of that, and he's turned me on to looking more at YouTube because it's a very valuable place to get a good understanding of the business and the culture. And also, pivoting off what Emily said about the financials. Look at the risk factors and the management's conversation in the 10K, which is the annual letter.

That's really valuable information for the competition perspective. I'll just throw out there. I'm a big fan of trade industry media to your point. Ron, a company is never going to put super negative stuff on their own website. But there's a lot of niche media out there covering specific industries, and you can usually find some good information. Yeah, it's often free as well. Question from Denise in Maryland, who writes, you get to spend a month shadowing any CEO in America. Who do you choose and why? I mean, I think I have to go with Warren Buffett just because I think I have to go with Warren Buffett. How could I not? But in the absence of that, I would love to hang out with Jamie Diamond for a bit,

even though I'm not a big investor in financials, but I think he's a fascinating figure. Maybe you could pick up a couple of tips about financials. Also, if you're with Buffett, as we know from the documentary on HBO, every morning, you know where you're having breakfast. Exactly. That McDonald's drive through. Emily? I feel like this is cheating because I found a way to get a two-for-in. I'm going to pick Jack Dorsey.

Not just because he is the CEO of one of my favorite companies, which is Square, and a really interesting company. I don't think I call it my favorite company. Interesting one, Twitter. I'd get to see both of those. But he has a very similar schedule to me. He's a morning person. So I love CEOs at Get Up Early and Go to bed early. Do you think he could get you some more followers on Twitter?

It's possible. Hopefully not, though. Andy Cross? I'm going with Elon Musk. I think that would just be a ride. I did not forget. If you can spend some time there, just all of the feelings that you might have about Elon Musk aside, just looking at the technology and how he thinks about the world in Tesla as well as just energy efficiency. I think that would just be fascinating to spend some time with him and watch how he's. he goes about his day. But Emily just brought up something that I hadn't considered for when looking at this question,

and that is, what is the daily pattern of a given CEO? So in Emily's case, she's picking someone who she knows as a morning person like her. Elon Musk, have you considered what Elon Musk schedule might be? That's what I'm looking forward to. I'm just spending some time with him. I think just the craziness with what he must go through every day would just be fascinating to see. Can we circle back and give Ben some books? That may be helpful to him.

Absolutely. I definitely would start with some Peter Lynch books, whether it's one up on Wall Street or beating the street, all the series of little books, whether it's common sense investing or valuation or great. And the essays of Warren Buffett, really, really good reading. Emily? I always mentioned this one because it was kind of the first book that I read that laid out investing in a really simple, easy-to-understand manner.

To Ron's point, it's a little book that beat the market. It's hard to do better than that. If you're just starting out investing, it lays everything out. that somebody like myself who's just learning can easily understand. Warren Buffett's CEO, a look at some of the CEOs that were Berkshire Hathaway. I was written a few years ago, so it's a little bit outdated, but I think it's just a fascinating look at some of the leaders of the businesses inside Berkshire Hathaway. The first investment book I read was actually the Motley Fool Investment Guide.

It was recently updated. It's in paperback form. It's a lot cheaper than when I bought it. Before we get to the stocks on our radar, if you're looking for even more stock ideas and recommendations, you can check out our flagship service, which is Stock Advisor. You get recommendations from David and Tom Gardner. You get their best buys now and a lot more. You can just go to Radarstocks.fool.com. That's Radarstocks.fool.com. 50% discount for the dozens of listeners stock advisors. So check that out when you get a chance. Let's get to the stocks on our radar and our man behind the glass. Steve Brodow is going to hit you with a question. Ron Gross, you're

up first. What are you looking at this week? This is a radar stock for me. Not a recommendation yet, although it is a recommendation in our Stock Advisor service, a recent one. Accenture, ACN, a consulting technology and outsourcing company, operates in over 120 companies, world's largest consulting company by revenue, strong operating results in cash flow, cloud computing, security, and digital are areas of growth, increase their dividend for the last 15 consecutive years, and that dividend yield currently stands at 1.5%. Steve, question about Accenture? Do you think that model is changing? I remember hearing about companies like Accenture hiring people right out of school. They work them into the ground and two years later they're gone.

That is, I still think the way it goes. They work into the ground. You go back to business school and then you either return at a higher level or you move on to something else. Emily Flippen, what are you looking at? I'm looking at a Chinese company called Maytwin-Dien Ping. It's listed over-the-counter here in the U.S. The ticker is M-P-N-G-F. I'm excited about this one, because I really don't get the opportunity to ever talk about it. It has a lower average daily volume than we typically look at. But it's one of the better performance in my personal portfolio. It's essentially your everything app in China. So they do everything from book you a flight, get you a movie ticket to yes, food delivery. That is the Dien Ping part of that company. And they do it in a way that's more economical, in my opinion, versus grubhub

or Uber Eats. And they integrate every part of the experience. So it does a lot more than you think, and it's relatively underappreciated here in the U.S. I'm going to help listeners out by not attempting to pronounce that name, but I will repeat the ticker, Steve, M-P-N-G-F. So what is the closest analog in the United States to this company? Combine Yelp, your back-end inventory management system, Uber and Lyft and Uber Eats, and maybe you get some, oh, and whatever travel site used, so maybe some Expedia, then you get something that's kind of close to May 21 D&P.

It sounds like a butler. That's a good way to describe it. That sounds good. Andy Cross, what are you looking at this week? Livongo Health, symbol LVGO, provides digital health services and solutions to more than 200,000 members to help them manage their chronic diseases, mostly diabetes. There are 30 million people in the U.S.

who suffer from diabetes, mostly type 2. Livongo Health is a cloud-based solution that helps them understand, manage, connect with communities, and health. more than that 200,000 members manage their diabetes and understand it. So it's a $2.5 billion company, lots of cash in the book. So interesting to watch their growth picture continue to progress. Steve, question about Livongo Health? Sure.

How does the site integrate with a patient's physician? It does tie together with all of those communities, physicians ties in with their own personal health and allows them to connect in ways that gives them the health nudges to be able to better manage or diabetes than what they have right now. So really interesting to think how it evolves outside diabetes in the complete holistic health picture. LeVongo Health, Accenture, MPNGF. You got one you want to add to your watch list, Steve? I think I'm going with the Butler of China, the Asgees of China. Atchian. Real quick, Steve, you got a book recommendation for Ben in Iowa City? No. I'm sorry, I wasn't prepared for that. I have no idea. I will throw an intelligent investor just

from the value investor perspective. It's some really good learnings there. All right, but Steve gets the credit for it. Okay, done. Ron Gross, Emily Flippin, Andy Cross. Thanks for being here. Thanks, Chris. That's going to do it for this week's Motley Full Money. Our engineer is Steve Broido. Our producer is Matt Greer. I'm Chris Hill. Thanks for listening. We'll see you next week.