The Best One Yet - 🥣 “The Oat-pocalypse” — Oatly’s all-time low. Roblox’s meta-life. J&J’s toxic Texas two-step

Episode Date: October 19, 2021

We’re on the verge of an oat-pocalypse as the US faces its greatest oat shortage in history… so good time to check out Oatly’s stock. Roblox is the #1 destination for American kids (online or off), but its newest thing is Roblox for adults. And Johnson & Johnson created a brand new company filled with all the toxic stuff from the old Johnson & Johnson — Call it “The Texas Two-Step.”$OTLY $RBLX $JNJGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn 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, T-Boy Tuesday, October 19. This pod's the best one yet. T-B-O-Y. This is the sesame seed bun of pods. What's our first story, by the way?

Oat prices have more than doubled in the past year. The grain. Oat. We're talking to Oatoclop. Funny thing happened to Oatley's stock. We should talk about that. For our second story, Johnson & Johnson is creating a new company filled with all the toxic parts of the old company. Sounds lovely, Jack.

It's pulling what's called the Texas Tuesday. step bankruptcy, the old Texas two-step. For our third and final story, Roblox is the number one place where kids are hanging out in real life or virtual life. Roblox's newest thing, it's Roblox for adults. Great mix. Great mix, Jack. But before we hit that mix, Facebook is an all-you-can-eat buffet of posting. Facebook is addicting because it lets you have infinite posts, infinite. You post as much as you want, whenever you want, how you want for the rest of your life. Well, funny thing, Jack and I notice there is a new social media app that is the opposite of everything we just said. In the edge of the internet, I'm impressed when anyone thinks of something new, and this is truly new.

This is truly new because it's not unlimited posting like you get with Facebook. This is limited posting. It's called minus. And you start with 100 posts on minus and you get 100 posts for the rest of your life. And that's it. Let's say you post that you just got a minus account on minus. Boom. That's one post.

You only got 99 more posts. Right. On your account, it doesn't say how many times you've posted. It says how many posts you have left. This is like you have one pack of Polaroid pictures, but for the rest of your life. Your social media posts aren't infinite like air on minus. No, no, no, no. They are scarce like diamonds when you use this. And once you make your 100th post on minus, the post button disappears from the app forever.

Fantastic. Oh, you got an engaged picture with your fiancé and you'll want to post it on Minus. Lovely. The ring looks fantastic, but only 72 more posts left for the rest of your life. Oh, you want to update everyone that you move to Austin and tell everyone on minus? Congratulations. It did a thing, but you only got 38 left for the rest of your life. You dressed up your puppy for Halloween. That is adorable, so you posted on minus. We agree. Your rescue does look like Yoda, but only eight posts left for the rest of your life. Snackers, here is Jackson Mike. Question to you for T-Boy Tuesday in light of the limited

posted post social media. Instead of 100 posts, what if you only had one post you could make? Not like infinite posts like Facebook or 100 posts like minus. What if you only had one post for your entire life? We're kind of plagiarizing M&M's lose yourself, but what if you only had one shot? We want to see your one and only post. Hit us up at T-Boy Jack, at Nick of New York, at Robin Hood Snacks. What's your one post?

Let's hit our three stories. Mine would definitely be a new phone, who does. You're tuned in the snacks daily. Snacks about to hear rain food. this air candy. They don't reflect the views of the Robberhood 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. Right. Snacks is digestible. Business news for you. Robohood Financial, LLC, member FINRA slash SIPC. For our first story, yeah, cold or hot oatmeal.

What are you going to go with? Cold in the summer, hot in the winter. Yeah. There you go. Or you alternate the day to date. You put a date in there and you heat it up. We could do either one. It's the same with coffee.

I do ice coffee in the summer, hot coffee in the morning. A dab of cinnamon, pinch of chia, shred some coconut. First story, only stock. It just hit an all-time low. We just noticed Oatley is facing the biggest oat shortage in American history. Which is a big deal because oats are the most important part of the most important meal. Snackers, we have some breakfast drama. If you go to the grocery store and you look at one of those big tubs of Quaker oats,

You'd think that the price would be lower right now than it has been the rest of the year. It should be dropping because it's fall. You know, it's like a new harvest, a new barrels of oats hitting the market. People are picking things and harvesting things. Prices typically drop right now. They do. I noticed you just said barrel of oat. I'm going to correct you and say bushel of oats because oat prices are at $6.60 per bushel,

which is double as high as it was last year on this very day. This is where your agrarian rural upbringing. for centuries, like on the fields of Vermont, just comes clutch in the analysis. One analyst referred to the current oat market as a panic, but we're calling it a fiasco. We got ourselves an opacalypt that is creating a fiascoat. The surging prices in oats is caused by the smallest oat harvest in American history this year. Snackers, let this settle in. There are fewer oats harvested right now than like ever before.

You've got to cherish your breakfast right now. There's a couple of reasons. First, wheat and corn prices have been up all year. year. So a lot of farmers swapped out their oat fields for corn and wheat because they thought they could make more money that way. If so facto, you got 13% fewer oats planted this past season. And you got a drought coming along, which made things even worse. And then on the demand side, oat milk is freaking booming right now. Jack, can you share this number? Like, we had to triple check this number. We didn't even believe this number when we first saw it. According to Bloomberg, demand for

oat milk in the United States hasn't gone up double. It hasn't tripled or quadruple. It hasn't tripled. or sex tupled. It is up 70 times in just four years. Sit down, stand up, sit back. Dang again. Oat milk demand is up 70 times. Jack, if I put oat milk in my oatmeal, is that a pro move or a food crime? I do it all the time. It's a good move. So oat prices are like the highest. I don't know they've ever been in history. And we're facing an oatocalypse. Jack, how's our buddy Oatley stock doing lately? Oatly stock is down on this oat apocalypse. They're down 50% since their recent post-IPO high. the reason for that is that Oatley is only able to fill 70% of all the orders they're getting. They're getting a lot of orders. They can't fill them all.

There's an opaclapse. They just don't have enough available oats to produce the product to meet the demand. Now, Jack and I jumped in Snacksdale, and we did notice that Oatley is like they're kind of safe for the moment. They kind of save themselves briefly. The procurement and finance department in Oatley, they bought up a year's supply of guaranteed oat prices, just like airlines do with jet fuel. Exactly. Delta loves doing this. They count. They get a whole bunch of fuel in advance. Oatley's doing the same thing. So although there's a shortage of oats,

there isn't increased costs of oats for Oatley right now. But the other funny thing we noticed, Oatley is getting a little desperate, so they are scouring the earth for oat options. They're asking everybody they know, everybody. If anybody has one of those tubs of Quaker Oats in their pantry, they don't need.

Dahlene, you got any oats in the office? In the basement, we'll take anything. Oatley just acquired their first batch of oats from Lithuania. Jack, have you ever had a Baltic oat? I had an Estonian oat once. It was a little acidic. So, Jack, what's the takeaway for our buddies over at Oatley? You live by the Oat, you die by the Oat.

Snackers, three years ago, oat milk was zero percent of the alternative milk space, according to J.P. Morgan. But today, oat milk is a whopping 16% of the market, baby. And Oatley is a big reason for that. Oatley embraced the Oat. And Oatley created a whole new alternative milk category in America. Oatley is all in on oat, which is kind of led to a problem. You and I, as consumers, we're elastic.

If the prices of oat milk jumps, you can switch to almond milk or soy milk or even 2% the old-school stuff your parents used to get you. But Oatly is inelastic. It can't just change to almond milk. It can't alter its name to like Amidie. Can't change its main ingredient. Can't change its whole brand. If prices of oats don't come down, then that could force Oatley to increase the price of their product. And that could result in consumers switching over to soy, switching to something else,

jumping into some cashew. Oatley, though, they live by the oat and they die by the oat. For our second story, Johnson and Johnson just pulled the Texas two-step bankruptcy. I remember this bombshell report from Reuters back in December of 2018. It was wild. Here, get this, Snackers. Johnson and Johnson knew for decades that asbestos lurked in its baby powder. That is incredibly creepy.

Baby powder historically is Johnson and Johnson's signature. your product. H&H does bagels. J&J does baby powder. And before Johnson and Johnson had the COVID vaccine, they were accused of bearing evidence that that baby powder was cancerous, according to these accusations. And after all those decades, Johnson & Johnson has faced a whopping 40,000 lawsuits based on exactly this issue. And Johnson and Johnson denies the claims. They say their baby powder is still safe today. But so far, Johnson and Johnson has had to pay out a lot of money to deal with all those 40,000 lawsuits. A billion dollars in legal fees, plus three and a half billion more in settlements and verdict so far.

Now, Snackers, here's what Jack and I find fascinating about this story. You've heard of the poker. You may know the jitterbug. You probably are aware of the cage in one step. Johnson and Johnson just pulled off what some call the Texas two-step bankruptcy. That's right. 135-year-old New Jersey-based Johnson and Johnson just created a new corporation called L-TL Management LLC. Absolutely horrible name. Fully owned by Johnson and Johnson. Interesting.

And what was that company's very first move after being born? Well, Jack, I mean, you got to have the ribbon ceremony, do the grand opening. You get a new logo, the welcome party. Everyone comes in. You cut the cake. There's like a whole celebration. No. Didn't do any of those things. No, they didn't. This company immediately declared bankruptcy the moment it was created. We repeat, Johnson and Johnson created a whole new company and then they immediately declared bankruptcy of that company. This was all part of the plan. Johnson and Johnson created this fully owned LLC for the one reason of handling the baby powder lawsuits. That's it. Johnson & Johnson even gave this limited liability company $2.3 billion in cash to handle future settlements and verdicts and

lawsuits related to all this baby powder. But we got to emphasize the LLC stands for limited liability corporation. That part is key. Because this corporation limits the liability to Johnson & Johnson Corp. Keyword limit Johnson and Johnson limiting the issues from hurting it. Now, victims groups look at that $2.3 billion, Jay and Jay set aside. And they're like, what is that? We estimate there's $17 billion worth of damages and suffering from the cancerous baby pattern. Meanwhile, Johnson Johnson's like, no, you can deal with this separate company. They have $2.3 billion. We'll talk to you later. Leave us alone. It's not our problem. If so facto, the Texas two-step.

So, Jack, what's the takeaway for our buddies over at Johnson and Johnson? This is Texas being business-friendly. Yeah, Snackers, Johnson and Johnson, they just split up their ancient company. First, you got the good money-making business on one side. And then you got the bottomless lawsuit and wrongful death business on the other side. And this is legal in Texas and not most other states. Proponents say this is good. Why should one great company like Johnson and Johnson because of one controversial product

take down the entire 135-year-old history. Then you got the critics. Critics say it's not one controversial product. It's one killing product and the company knew it was killing. Proponents say this is a business-friendly move. Critics say this is J&J avoiding responsibility. Yeah, so Johnson and Johnson shareholders, they see this as a business-friendly move because they get to enjoy limited liability.

There is a limit to the lawsuits. The 40,000 victims suing Johnson and Johnson, they're upset because there's a limit on the lawsuits. and they think the limit is way too low. There's business-friendly taxes, and then there's business-friendly. For our third and final story, Roblox just won the love of children. Now, it's going for the parents.

And it's going for the metaverse, taken on Zuck at his own game. And the grandparents and everyone over the age of 20. Snackers, this winner, we covered Roblox's direct listing. The 17-year-old company, popular with 12-year-olds. Yeah. Yeah, and get this, because this is one of the wildest stats we saw on any IPO paperwork. Three out of four American kids, age nine to 12, are on Roblox, playing Roblox.

The average Roblox player plays 2.6 hours per day. I want to meet the one out of four who aren't on Roblox and ask like, what did they do to get punished to not be on Roblox? True. Here's the craziest thing, though. Roblox doesn't make video games. They just make a space where developers make video games and Roblox. gives them a cut. So the new news from my buddies over at Roblox,

the publicly listed video game platform is this. For the first time, more than half of Roblox users are over 13 years old. Are you thinking when I'm thinking here, Jack? I don't know what you're thinking. That means the median is 13 years old. I wasn't thinking that, but that is interesting. Your math went to that head, or that head went to that math. What do you think?

I was thinking just that they grew up. I mean, like, I remember when Roblox was like this tall and like now it's this tall? It happened so fast. So Snackers, Roblox announced last week more mature avatars for their more mature players. They want to go after the parents, not just the kids. So like instead of some blocky, Lego-like looking avatar, which is the OG Roblox avatar. Super Gen Z, maybe you're 38 years old. And look, you don't want to have a Legoy looking box that makes you feel like a Pixar character.

So Avatar just launched less childish-looking, high-resolution human avatars with outfits that you can customize. For example, you could wear a squid game outfit when you're playing Roblox right now. That feels like an adulty thing to do. We're talking the white fan slip-ons. We are talking the white fan slip-ons, which you know a thing or two about, don't you, Mr. Horder over there. Speaking of Squid Game, you could also play, this is just a side, FYI. You can play Squid Game in Roblox. Like, developers have created Squid Game games that you can play.

Which is also much more of an adulty thing than a child thing, because pretty much every scene in Squid game is like, like give or take NC17 with more blood than a Tarantino film. Right. And that's why Roblox just launched age verification. Because adult games like Squid Game where you might get horribly killed, those should only be available to verified adults who scan their driver's licenses. Oh, and wait, there's more. You can now pay up to use unique special outfits.

You're the only one wearing something when you're playing these games. That's right. You could be the only one playing with your buddy. as SpongeBob Squarepants. You could be the only one playing a squid game within Roblox dressed as the old man, which we all know is frankly the best character in the whole thing. And potentially the whole squid game show is just a dream going on in the old man's head. Snackers, what you didn't realize was that what Roblox is building is the very beginning of what's called the metaverse.

This is the Roblox metaverse. Roblox wants to be the first to create an entire virtual world. And their words, in 3D, where millions can learn, work, play, create, and socialize virtually together. AKA Roblox is Zuck and Facebook. So, Jack, what's the takeaway for our buddies over at Roblox? The Metaverse race comes with a trillion dollar prize. Snackers, Jack and I think we're on the dawn of a new age of the internet. And history tells us that that new age is worth $1 trillion.

Microsoft dominated internet version 1.5. We're talking PCs, classic PCs. And Microsoft stock is worth over a trillion dollars now. Apple and Google, they won Internet 2.0. When the Internet was consumed on SmartUp. And Apple and Google are both worth over $1 trillion. Internet 3.0 is a metaverse reality. And the winner could grow to a $1 trillion valuation too.

Jack, can you whip up the takeaways for us over there? Oatley is bumming out that we're short on oats. Yeah, so the oat goes. So goes. For our second story, Johnson and Johnson wants closure from the baby powder lawsuits. Yeah, so it's doing the Texas two-step bankruptcy because Texas is business-friendly. For our third of file story, Roblox is going after adults and the Metaverse. Because the Metaverse comes with a $1 trillion prize.

Now, time for our snack fact of the day. This one's sent in by Geographer A.J. Acosta from Warner Robbins, Georgia. This is a very cool one. Most countries have just one capital city. That's it. Keep things simple. A couple of countries have two capital cities because they got to mix things up. Bolivia and Swaziland, both have two capital cities. But South Africa saw all this and was like, hey, we're really going to mix things up.

We're not satisfied with one or two. We're going to have three capitals. The executive capitol is Plumphantane. And the legislative capitol is Cape Town. One of the most stunning places on planet on earth. We have Washington, D.C., Washington, D.C., and Washington, D.C. I thought that's where you were going. You would have mixed enough.

Washington, D.C., Washington, D.C., Washington, and Scranton, Pennsylvania. Snackers, you look fantastic today. Remember, if you had one social media post left, just one more left in your whole forever life, what's going to be that social media post? The correct answer is H.Y. H.I. Trias, dear. It better be. I mean, this is a competition. But we'd love to hear from you at T-boy Jack, at Nick of New York, at Robin Hood Snacks.

We'll see you tomorrow. Happy T-Boy Tuesday. And before we go, happy birthday. to Snacker Julie Kay from Ripin, California. And Ricky Alvarez has a husky named Yoda, which we referred to earlier in this podcast and didn't even know it. The whole pod comes full circle. Happy birthday in Concord, California. And Lena Jimenez, happy birthday down in Dallas.

And Missy Ruttencutter in Irvine, California. And Teresa Wayne, happy birthday in Baltimore. Get some wall ball in. Happy 30th anniversary to Norman and Muffet in Spartanburg, South Carolina. Celebrate that way. And to anyone else celebrating today, make it a T-Bull. Celebrate the wins. This is Jack.

I own stock of Roblox, Nick own stock of Apple. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinood Markets Inc., Robinood Financial LLC, or any of their subsidiaries or affiliates.

All investments involve risk, including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. Jumping into some cashier.