The Best One Yet - 🧟‍♂️ “HQ Trivia’s Frankenstein/Queer Eye moment” — Eggs are the new TP. Johnson & Johnson’s Da Vinci Code COVID-19 announcement. HQ Trivia’s revival.

Episode Date: March 31, 2020

Fresh after shutting down in February, HQ Trivia has been resurrected during this crucial moment for stay-at-home apps — and the announcement came via push notification. Cal-Maine is the largest egg producer in the country and it’s having a moment right now (eggs are essentially essential). And Johnson & Johnson shares jumped 8% on word it may be leading the race-for-a-corona-cure.Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday, March 30, first last of the month over here. Great start to the week yesterday. Stocks rose by like 600 points for the doubt. Snackers, I am not exaggerating when I say Jack and I have whipped up the best snacks daily we've ever done. Wild Mix here. The first story for today's T-Boy, Johnson & Johnson, is working on a COVID-19 vaccine. It sounds kind of like profit puppy material when we first heard about this. Yeah, it really does. But nope, not. It's not. and Johnson announced it would sell the vaccine at a not-for-profit price. We're looking at the first ever non-profit, profit, puppy, say it five times fast. Second Story Jack. HQ trivia is back from the dead.

They thought Bruce Wayne was dead. We thought the same about HQT. Its resurrection shows how the corona economy has transformed everything. And just like mom always said, timing is everything. Our third and final story is eggs. Scrambled or over, easy neck. Trick question. It's both the same time.

is what's for dinner. They're also like what's for breakfast and what's for lunch these days. The biggest American egg producers called Cal Main, and they just announced their earnings report. So we're looking at the eggs industry for the first time ever on snacks. And probably the only time ever on snacks. Let's be completely honest on this one. Now, Snackers, before we go any further, we have to wish you a very, very strong Tea Boy Tuesday. Are you getting a little too intimate with your couch during this like three week long quarantine? It may have happened over the weekend. You look down and notice that it molded to your halves in like the northwest portion of the couch. Oh look, a bicentennial quarter between the cushions.

Oh my God, we named our couch. Her name is Sheila. She's fantastic. Now, none of these are good signs. So our buddy Jonathan Rochelle whipped up a T-Boy Tuesday hashtag Snacks Challenge on Twitter. Snackers, this is the first T-Boy Tuesday celebration ever submitted by a snacker unintentionally. Jonathan deserves a custom-fitted Taylor T-T-Boy T-T-shirt for this brilliant idea. And here is what the T-Boy Tuesday Snacks Challenge is. How far can you? you run while listening to one episode of Snacks Daily podcast? We repeat, how far can you run listening to about one 15 minute or so episode of Snacks Daily? Now, if you're a typical Snacks Daily listener, you probably listen during your commute to work or your commute home from work. That's just how

podcasting goes. Funny thing about commutes, not a thing these days. So if you're not commuting and listening to Snacks Daily, why don't you go for a run while listening to Snacks Daily? And why do you give Sheila your sofa a little bit of a break for you? your calves. So Jonathan Rochelle, led by example, posted on Twitter, he ran 2.96 miles listening to one episode of Snacks Daily. Someone's got to make this guy pee in a cup because Jack and I did the same thing. We barely got over two miles listening to one daily. I got 2.1. Nick got 2.1 in change. You probably rounded up if you ask me. This guy, John, though, needs to be a writing candidate for the 2021 Tokyo Olympics already. Snackers, the T-Boy Tuesday Snacks Challenge. Tell us how far you can

run jogger bike during the Snacks Daily episode. Tweet us a pick. Tweet us a video at Robin Hood Snacks. Maybe you can do as well as Jonathan, who by the way, Under Armour should be sponsored by him. You're tuned in the Snacks Daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food.

It's air candy. They don't reflect the views of the Robin Hood family. It's all informational just so. You know, we're not recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale of a security. Snacks is digestible, business news for you.

Rob her financial, LLC, member Fenbra slash SIPC. For our first story, Johnson & Johnson, the old J&J is trying to become the hero of coronavirus. They just announced they're making one billion COVID-19 vaccines that'll be ready by early next year. Now Snackers, Jack and I basically do one thing every day, which is stare at a lot of press releases, and a lot of them say really absolutely nothing. Nike's board of directors announce his progress. towards the year-end goal of revenue stability and declining prevention. Yeah, we know we're all doing that, basically.

Meanwhile, Johnson & Johnson is a 134-year-old New Jersey-based pharma company and a consumer products giant, and it just whipped up like a Dan Brown page turner of a press release. This press release had so much in it. We had to break it into three parts, and we're just reading the press release's headline right now. This press release was so good they had to call Tom Hanks' agent to get him involved in this thing and read it for us.

All right. First part, again, of just... the headline of this press release by Johnson and Johnson. It's a long headline. It's a really long thing. Johnson and Johnson announces a lead vaccine candidate for COVID-19. They've splurged $1 billion on research and development spending and if they create this, they could become an American hero overnight. We're talking Disney movie potential. Possibly a world hero. Now, the second part of the headline, a landmark new partnership with the U.S. Department of Health and Human Services. I mean, having a life-saving drug and you've got the government on your side,

that is an advantage, Snackers. Third part of the, of the headline and a commitment to supply one billion vaccines worldwide for emergency pandemic use. That's right. They are planning for success already. They've already expanded their factories in the United States and around the world to prepare to produce this vaccine that they're not even done with. Now, Snacker, sit down, pull up some popcorn. Jack, can you read the entire press release title now in unison and together? Let's get some harmony here. This wasn't planned, but I'll do it now. Johnson & Johnson announces a lead vaccine candidate for COVID-19 and landmark new partnership with the U.S. Department of Health and Human Services and a commitment to supply one billion vaccines worldwide for emergency pandemic use. Jack, I had the defibrillator over here on pause ready to go in case you needed it. Two PR people were killed in the making of this press release. Actually, they charged a lot of money. It was probably an outside PR firm that's making bank.

So Johnson & Johnson is in the business of drug development. This takes a lot of the time. It takes quite a while, from research and development to actually bringing a product to market. Long time. That can take like a decade. We're talking 10 years here, and what they're going to do with Johnson & Johnson is make this happen in less than a year. The moment the COVID-19 outbreak started in China and, like, Americans weren't even noticing it yet.

Johnson and Johnson was noticing. They had already teamed up with Harvard Medical School back in January, almost as if they got Batman involved in the entire Wayne Enterprises crew. Now, they're hoping to have human trials for this vaccine by September and then have it, you No, widespread use for one billion people by the winter, like February of next year. To put this on the relationship spectrum, this is like an extremely aggressive engagement situation with your one buddy who you kind of don't know what he was doing there. It's basically like, will you marry me?

Yes, good. Here are my 75 guests. Here's the Bancet list. The cakes in the freezer. I'll practice my vows tomorrow. I love you. See it tomorrow. Let's get married.

Jack, we already plan the table. So what's the takeaway for our buddies over at Johnson and Johnson? Johnson and Johnson is working on the biggest nonprofit profit puppy. ever. Snackers, the horsemates for the cure, it is now on, and many companies are already developing coronavirus drugs from like Gilead to Pfizer and a bunch of others. You'd think the winner of whoever makes this vaccine first could make a fortune. It would be nice. Because they could basically sell billions of vaccines to billions of people at whatever price you want. But get this. This is what Jack and I found fascinating. Johnson and Johnson promised to sell this drug at a not-for-profit price

just to break even. They're just trying to break even. I couldn't believe this. Just not even trying make money. The biggest potential profit puppy ever, they don't even want it. They're just like donating it to humanity. Meanwhile, the rest of the other drug companies have got to be feeling kind of bummed about this. This kind of makes them look a little bad. Well, they have to follow their lead. Nobody can make profits off this or they'll look like a villain. Jerry donated a thousand dollars. I guess we're all donating a thousand dollars. If Johnson and Johnson wins the race and comes up the COVID-19 vaccine first, it will be revered as an American hero. For our second, story, HQ trivia just came back from the dead.

During the most perfect time ever for HQ trivia. Snackers, this is the second resurrected product slash company. Jack and I have covered on this podcast in two weeks. Last week, we covered Class Pass, which dusted off Class Pass live for all the stuck-at-home fitness freaks. Boom, what falls into our lap over the weekend? HQ trivia is now back to becoming a thing. Coronavirus is a force for the economy like Dr. Frankenstein meets queer eye.

So to understand the situation, Jack and I whipped up a few questions of our Joan. Jack, first question, what actually happened to me? Somebody bought HQ trivia, a once viral app that shut down this past February. All right, Jack, this leads to our second question here. Who is HQ trivia? HQ trivia does live trivia contest on an app. It was so popular back in February of 2018 that two million people were logged in live competing in a trivia contest.

Jack, I like the answer so far. but now our most profound and important question, who is the mystery investor that bought HQ trivia? We don't know. Actually, nobody knows this, guys. It's kind of a problem. So then the next question, Jack, how did this go down?

What happened? What's going on? So people who had downloaded HQ trivia over the past few years, they probably didn't delete the app despite the company getting shut down in February. Then you all may have suddenly gotten a very interesting push notification

from HQ trivia saying, oh, by the way, I'm still lying. I'm right here. You want to go play a little bit. Yeah, this past weekend, they're like, we're back. We got a contest coming up Sunday night. I'll tell you, Nick, push notifications are the equivalent of walking across the hall and knocking on your neighbor's door. They're unignorable. It's like your phone screen for apps has become incredibly valuable digital real estate that, like, everyone just wants a tiny piece of.

So the last question, when? Sunday night. This all went down on Sunday night when the first trivia night was back from the dead. The jackpot was $1,000, which is actually pretty small. small for HQ trivia, but they are coming back from the dead so they can start modest. Aside from the shock that HQ trivia is back a month and a half after we said they were dead, is this interesting reality about businesses. Sometimes it's not the business model. It's just the timing of your business. There are a bunch of reasons why this moment is perfect for HQ trivia in the corona economy.

All right. First, clear one because you're on your couch right now, stay at home order. Instagram has literally run out of posts for you to scroll on your phone. You have literally run out of post to put on print Instagram. Netflix is like, we think you're like, actually, there's nothing else we can recommend. You've watched everything. They're actually, Netflix is judging you at this point. And that's why trivia is perfect for this moment because it's addictive. Remember Sporkel, whose middle school life was not consumed by Sporkel? Name world capitals that start with an S from countries that weren't involved in World War II. Boom, there's your entire afternoon. The second reason why this moment right now is such

perfect timing for HQ Trivia, live sports is canceled. Lots of sports fans need something to watch and potentially to gamble on. HQ trivia comes around. It's offering cash prizes to winners who can answer 12 questions correctly. Finally, HQ trivia is vaguely social. No more creepy host. They've got a new host in a non-creepy way. And he's actually really fun. And people need a mutually shared experience right now besides, you know, Kramer Family Zoom conference where everyone is speaking over each other.

That's exactly why Jack and I think they should add a social chat component to everything they're doing on HQ trivia right now. You should be able to see how many questions your buddy has got correct, how many of you've got correct, and the loser has to order the door toash for everybody. And then you throw in a Venmo integration, everyone's happy for the evening. So, Jack, what's the takeaway for our buddies over at HQ trivia? HQ trivia version 2, they should be a subscription company, not an ad company. Snackers, HQ trivia version 1.0 was historically monetized just through ads.

Tonight's HQ trivia is brought to you by Papa Johns, perfect for dinner tonight. But the ad pocups that we keep talking to you about, that means that companies are cutting back on their ad spending like right about now. Which makes us ask the question. If ad spending is down and HQ trivia relies on ad spending, should they switch to become a subscription company? And we're not talking like a $13 a month Netflix splurge. We're thinking like $1 a month for a little bit of HQ trivia. $1 a month is probably enough for HQ trivia. And the mix of boredom, craving for gambling, loneliness, combo.

And a $1,200 check coming to 90% of Americans. this month, that could be the perfect recipe. HQ trivia could be worth $1 a month for a lot of people in the Crohn economy. For our third and final story, America's biggest egg producer, its name is Cal Main, and it's just reported earnings we noticed. Eggs are the new toilet paper. Snackers, this was maybe the most fun Jack and I have had covering a story in the last 24 hours. Go to the Cal Main investor relations page, and you're going to find something very interesting. What did we find you? Well, first of all, the name is Cal Maine because they sell eggs from California all the way to Maine from C to Shining C. It's an extremely literal company. And that's one of the reasons why they

have a list up on their investor relations page of egg industry terms. For example, Jack, can you explain candling to us? Now, what Nick's talking about is an egg glossary. And candling, is that when the yolk breaks before you even crack the egg? Common misconception. It's when you hold the egg up and try to identify the quality of the yolk inside. Jack, how about the P-W? eggs. Do you know what a peeway egg is? Is that just a tiny little egg? Like the opposite of a goose egg? It's adorable. It's just a tiny egg. It's the opposite of a jumbo egg. And then the all-critical Umer-Berry price quote of eggs. Oh man, I assume this is like an economist named Umer who grew up on an egg farm and a guy named Barry who just loves eggs, who came up with some economics thing about eggs.

Apparently it's just an egg price, but I love the story you just came up with. So let's just go with that one over there. So Snackers, Cal Main is the biggest American egg producer founded in Jackson, Mississippi, way back in 1957. Now, this company is pretty active. They've decided to whip up 22 egg acquisitions, and then they went public under the ticker symbol. Yeah, C-A-L-M, which means either, one of two things. They've made some CBD eggs, which help you calm down, or that's just an abbreviation for Cal Main. TBD, we're not certain on that when they can get back to us. We reached out for the question. In the meantime, they're worth a cool $2 billion, which if you carry the one and add the nine, that means they're worth about a quarter of a lift.

also serving up about one-fifth of all the eggs that Americans consume. So if you have an aggressive omelet tomorrow morning, there's a 20% chance that one of the CalMane eggs was in there. We wanted to focus on CalMaine because eggs are the food that's having a toilet paper moment, even though they're nothing like toilet paper. That's because we notice that sales for eggs nationwide have searched 44% in March compared to the year before. That's because they're essentially essential, but they're not essential. Yeah, this is kind of a gray area here, but technically eggs are not non-perishable, aka they are perishable. But eggs are a key ingredient in many non-perishable favorites like brownie mix, home pancake mix, cookie mix, all the things that you want to make while

you're stuck at home all weekend because of the corona economy. So Jack and I jumped into the Cal Main earnings report, Snack style, and we noticed something surprising. Sales fell 10% from last year. However, that's because their quarter technically ended at the end of February right before the coronavirus hit. Right. So we're looking at it. It's a report card for pre-corone economy hoarding. But now that hoarding of every grocery store and every dozen eggs is happening, real thing. The stock has risen 37% in the last couple weeks as investors are noticing what's going on.

In a time of uncertainty, investors really enjoy stable businesses that are perceived as less risky a la eggs. And let's be honest, what is less risky than an egg? Honestly, the greatest threat to their business model is that someone just like drops the product. The biggest threat is you get a little bit of an egg shell in the scrambled eggs. like somebody gets a little crunch in one bite. Eggs are always in demand unless you're vegan. Except right now, demand is unprecedented for eggs. So, Jack, what's the takeaway for our buddies pumping out eggs over at Cal Main?

You'll notice higher egg prices when retailers decide you should notice higher egg prices. Snackers, when demand searches like adjusted with eggs, you actually don't feel it through higher prices immediately or even at all. Cal Main is a wholesale egg distributor. So true. 90% of its business is selling. Not to you and me. It's selling to middleman retailers like Walmart, Publix, or other grocery stores. And all your demand and our demand right now, that means that those retail stores, they have to buy six times as many eggs right now just to fill their shelf.

So that increased demand from people like you and me going through retail grocery stores has tripled the prices that Cal Main can sell its eggs right now to retailers like Costco. So if you're Costco, a big CalMain client, you may be paying $9 for a dozen eggs right now instead of the typical three bucks a dozen. And then Costco has two options. They can pass on that higher cost of eggs to you by like selling a dozen eggs for nine bucks. Wain. Or they can pay for that higher price themselves and continue selling eggs for like three bucks a dozen. Costco is already paying more for all those eggs. You might start paying more for eggs soon.

Jack Kenyon whip up the takeaways for us. Johnson and Johnson is developing a top candidate for a COVID-19 vaccine. It could be ready for a billion humans in early 2021. And it won't be that expensive either. The nonprofit, profit puppy. Our second story, HQ trivia is back because it's the perfect prescription for the corona economy boredom. You got nothing to do.

There is nothing to gamble on and there are no sports to watch. Enter HQ trivia. Our third and final story, eggs. They're having a TP moment. And if you're wondering when you're going to feel the prices, it's when those retailers decide you should feel the prices. Now, time for our snack fact of the day. This one sent in by Sean Investor in Los Altos, California. Los Altos, California means the Tals, California.

Urologists have seen a big spike in the number of appointments for vasectomies right before the March Madness Tournament begins. One study found a 30% spike in those vasectomies beginning in March. All right, guys, I know what you're thinking. What does a vasectomy have to do with March Madness? We were wondering the same thing. We kind of wish it were a trick question, absolutely nothing, and this were completely random. Turns out if vasectomy is a sensitive procedure, which requires a.

days of sitting on the couch and doing nothing in order to recover. And what better time than right before March madness? Snackers, remember to whip out your snacks challenge and hit the streets, go for a run. You can see how Jack and I did it. Jack's at T-boy Jack. I'm at Nick of New York on Twitter. Happy T-Boy Tuesday. We'll see you tomorrow.

Fantastic Pod Jack. The best one yet. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC. and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only, is not intended to serve as a recommendation to buy or sell any security, and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.