The Best One Yet - 💰 “You get $300/month per kid” — Cash for kids. Oatly’s shenanigans. LG’s special battery.

Episode Date: July 15, 2021

Oatly stock dropped after an activist investor accused the alt-milk icon of “shenanigans” and “mind control.” LG doesn’t just make your TV and flip phone… it may have the battery to save the world. And today 39M families get a $300 check for each of their kids — but kids aren’t the only winners.$OTLY $TJX $DGGot 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 Thursday, the new Friday, July 15th. July 15th. I know what you think about July 15th, Nick. Oh, don't even talk to me, Jack. Worst day of the year.

Why is it the worst day of the year? It's because it's exactly the middle of the summer. It's like all downhill from here. I don't know about it being the middle of the summer. It's kind of a median versus the mean situation. We're rounding up on this one, Jack. I mean, it's technically the middle of the middle month of the summer. It's hump day of this season.

We're going to go with it. July 15th. No one looks forward to July 15th. Doesn't matter. It's our best pod yet. It happens to be, Jack. What's our first story? What do we got?

There's one stimulus check that's not getting any attention. No, it's not. And it's going out today. 300 bucks per kid per a month must be nice. It starts in parents pockets, but it ends up in corporate profits. I like the way you said that. Second story, Jack? Oatley stock just dropped after some insults from an activist investor.

Oh, we got three words for you, Snackers. Shananigans and mind control. Real thing. For our third and final story, LG. They don't just make the mini fridge and the TV and your old flip thong. No, they are Earth's biggest battery maker. And they may have a battery that could save the world. But before the story about saving the world.

Yeah, we're going to wait 15 minutes on that. We have something that's really pressing. Snackers, before we had all that, could you whip out your iPhones if you got one? We'll give you a second. And open up the built-in Apple Weather app. Yeah, okay, so Jack, I'm doing it right now. It is 64 and Sunny here in San Francisco and extremely dry. I'm opening up right now. It's 82 in Burlington, Vermont. Lovely. And it's, you know, it's decently humid.

But here's the funny think, Snackers. There is one temperature that it is definitely, positively, absolutely not anywhere in the world right now. It's not 69 degrees right now. It's not 69 degrees in the next seven hours. It's not 69 degrees in the next seven days, guaranteed. 69 degrees doesn't exist. So Jack and I checked out Accueather, where the small town of Hobbs, Montana says it is 69 degrees. But then you look at Apple's weather app and you type in Hobson, Montana, and it's 70. It's not 69 in Hobson. Apple will not show the number 69 in their weather app.

Sit down and stand up and sit down. That is right, Snackers. Apparently nothing scares Tim Cook more than a memeable digit. They do dongles. Yeah, they do. They don't do humor. Now, we were curious. So Jack and I jumped in Snack style.

We independently verified all six cities in our iPhone apps. None have 69 degrees anywhere. None of the seven cities on my iPhone app have 69. And the app says right in the corner that the data actually comes from the weather channel. So we checked out the weather channels app and that app does show 69 degrees. So it appears that Apple is manipulating the weather channel data to weed out the number 69 and go with 68 or 70 instead. Now, according to reporting from The Verge, this could be a bug or it could be Apple doing it on purpose. Either way, your iPhone hates the Internet's favorite number.

So now we're questioning every single number we've ever seen on our iPhones. Did I actually walk 7,000 steps today? Or was it really 69 steps? Jack, is it 7 p.m.? Or is it really 6.09 p.m.? Do I really have seven unread text messages? Or do you really have 69 new text messages, Jack? Let's hit our 69 stories.

Yes, maybe. It snacks about to hear rain food. It's 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. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story today, starting today, millions of American families are going to start getting checks for every kid in the mail.

Very nice. Prepare for the secret economic stimulus. Please. The kid stimulus. Oh, by the way, Jack, this reminds me. Another reason why, like, July 15th is a tough date. Yeah. Beginning of the back-to-school ads on TV.

True. Yeah, that's always a bummer. But in the meantime, since the 1990s, every family with kids gets a tax credit to spend on your kids. It's called the child tax credit. But in March of this year, Congress expanded it to do even more. This is a myoplex protein shake version of the child. tax credit. First of all, you're getting more money. Now, Nick, this bill was past mid-pandemic. Yeah, it was. So Congress figured that families could use 300 bucks per month per kid.

Yes. Which is nearly double the tax credit of the old version. Okay, not just more money. There also are more eligible kids. Yes. For now, 17-year-old kids are included too. It used to stop at 16. And it's also more guaranteed than it's ever been. The child tax credit used to be a tax credit, which is basically a promo code to give you back money you spend on 10. tax like sending in a rebate. But now it's fresh, cash, money. Starting today, Snackers, every parent will get direct deposit or a check in the mail for 300 bucks per kit. And you get one. It's an Oprah situation. Just look under your seat. And that's going to continue monthly every 15th of the month through December. And then when you file taxes next year, you get six more months as a tax

credit. Now, it's not quite every parent, and it's not quite $300 each. There's a lot of fine print. And since this could end up in your wallet, we'll explain the fine print. All right, we're jumping in. Snacks style. Snackers get out a pen, a paper, maybe a whiteboard. First, $300 a month is for toddlers under the age of six. $250 a month is for kids seven to 17 years old. Right. And the $3002.50, that number starts to decline after individual parents make $75,000 a year. or for couples who make over 150,000 a year. Now, those are good numbers. Those are solid numbers.

But they're not huge numbers. They're not huge numbers that could move the economy. The great majority of families are going to be eligible for this, which is 39 million American households who are going to start getting monthly checks every 15th of the month. That is a huge number. And Jack, can you share the other huge number we noticed? 88% of American children are going to benefit from this check, or specifically their parents are going to benefit through this child.

That's right. The parents of 88% of all of America's kids are getting a check starting today. And the kids are going to benefit because experts think this could cut child poverty in half in America. But we also noticed it's not just the kids benefiting. So, Jack, what's the takeaway for our buddies over in all of the United States? Prepare for the secret economic stimulus, the kid stimulus. Snackers over the next year, the expanded fancy child. Child tax credit is $105 billion of cash for families to spend.

Dollar General and Target are thrilled about this. They already mentioned the kid stimulus in their last earnings report. Walmart, American Eagle, T.J. Max, they're already prepping extra for the checks to be spent on back to school. Everyone wants the loose fit jeans. That's what they want. You know JanSport is thrilled about this. Cargo pants are coming back, baby. But not all that dough snackers is going to be spent on essential kid stuff. Kind of shocking. Analysts expect that parents are going to spend about 4% of this giant kid's secret stimulus. About $4 billion on alcohol and airline tickets for themselves too.

Yeah, hopefully for themselves, not for the kids. Still, Wall Street is excited because the money that lands in your wallet starting tomorrow, it's not going to be in your wallet if you're a parent for law. That's right. We're going to see it in the corporate income statements after parents spend the dough this fall. Enjoy your kid stimulus. all the parents out there. The secret stimulus. For our second story, Oatley, its stock just fell on accusations.

Maybe they haven't been as honest with us about the oat milk. About their finances? Yeah. Or about their wokeness. Oatley. The preferred oat milk of Jay-Z, of Oprah, and interestingly, of Howard Schultz, also an investor. Howard Shorts, the founder of Starbucks.

Oatley IPOed in May at a calcium-rich $13 billion valuation. Full disclosure, I drank some Oatley this morning. and Molly and I have more Otley in our fridge than our bodega does. Full disclosure. Yes. I mixed a generic oat milk product into my coffee this morning, which is actually part of the story. Interesting. Which leads us to a hedge fund that's also a short seller called Spruce Point that wants

Oatley stock to drop. Since they want Oatley stock to drop. Yes, they do. And we'll profit if it does drop. Say that five times fast. They published a 124 page report. We read this. We jumped in snack style.

Basically, this. this report comes down to like four insults about Oatley and one sucker punch to Olin. First, they accuse oat milk in general of being like a fad. Yeah, today it's oat milk. Tomorrow, it's hemp milk. Next week, it's going to be, I don't know, like bark milk. Have you heard of bark milk, by the way? That's a fake thing, right?

No, you take the bark and you squeeze it and it's not a real thing. The second issue, though, that this hedge fund points out is they think Oatley engages in their words, mind control marketing. They accuse Oatley of intentionally not making enough product so that there's a shortage and so that the press reports about the oatmeal shortage. Shouldn't get oat milk or three weeks. I'm starving over here. And that's free marketing for Oatley. They also accuse Oatley of accounting. Again, their words, shenanigans. They did some interviews with some Oatley employees who were willing to go off the record. They did. And determined that Oatley's forecast for revenues are kind of unrealistic.

By the way, we should point out, after reading this 124-page report, it wasn't like that. professional, it felt a little bit personal? No, on the front page of the report, they literally show a cow, which is like anathematous oat weight. It is. And then a cartoon of a pig, a rat, and like a drought stricken field. Just going to throw this out there, it felt a little mean. Let's put it this way. There were no oats in the cartoon. But here's what Jack and I found fascinating about this report. Maybe the most insulting hardest punch of all was the accusation of greenwashing. Right.

Greenwashing. This hedge fund accuses Oatley of not being as green as their marketing suggests. So the hedge fund literally used the Freedom of Information Act to find out that Oatley doesn't have a wastewater treatment at its Oatley making plant. Even worse, they allege that Oatley's oat milk product requires more water to produce than cow milk does. And that one hurts. That hurts because the key value proposition of oat milk in general is that it's more sustainable for the earth than dairy milk is. I mean, if you whip up O'T Lee's S-1 IPO paperwork,

they mention the word sustainability 112 times. Now, to be clear, Oatley rejects these accusations, calling the report both false and misleading. But Jack, what's the takeaway for our buddies over at Oatley? The biggest challenge for Oatley isn't the hedge funds accusations. It's that the new competition is kind of winning. Snackers, the pioneer, the legend of oat milk is. quickly losing market share to other oat milks that have jumped into the market. At home in Sweden, they've been losing market share since 2016. Here in the U.S., they're losing market share now. And that's according to Euromonitor Nielsen, which has data that was cited in the hedge funds report.

Chobani, Calafia, Rise, the generic cheap stuff I had this morning. Full disclosure. They're all jumping into the oat milk market because there's like no barrier to smushing oat until milk comes out. That's why we're getting bark milk. Only pioneered the oat milk market, but that doesn't mean it's going to win the oat milk market. For our third and final story, LG Chemistry is Korea's battery stock. LG Chemistry just handed its chemists $5.2 billion to develop batteries that can save the world. We're not talking about your classic DuraCell double a as you get on Christmas, Jack.

We're not talking about that 60 pack. Uh-uh. That's been sitting in your drawer for years. Everyone's mom has that cabinet. You want the AAAs, the double A's. I got single A's and I got a weird thing that looks like an earring. And every kid of that mom doesn't have any of those batteries themselves. No idea what they're even talking about.

LG is committing 10 trillion won to sustainable initiatives, over half of which is for batteries. That's $9 billion or the equivalent of like half a lift, basically. Now, LG is one of Korea's corporate jewels. Yeah. They were established before the Korean War. in 1947. You know LG best for their phones, the TVs, the washing machines, but guess what?

LG is a different company now. South Korea-based LG Chem does chemical materials. And this is wild. LG Chem is number one globally in making car batteries. Because lithium ion? Yeah. Those are both on the periodic table of the elements, aka chemistry. Jack, I mean, I feel like I'm taking this back here.

But we've covered LG Chem only once on snacks daily. It was a great pod. It was our best pot at the time. I remember. It's when a joint venture announced with General Motors to make electric vehicle car batteries with LG. Yeah. So, LG is basically General Motors battery partner.

And Japan's Panasonic is Tesla's battery body. Now, LG Chemstock is up nearly 3x since the start of 2020 because all these electric vehicles need electric vehicle batteries. But this latest news is about way more than just electric vehicle batteries. Snackers. There's one huge. problem facing renewable energy. You can't fully depend on. Say the state of California want it to go fully renewable. They're going to use solar and they're going to use wind. That's how

they're going to do it. But what about days when it's not sunny, Nick? What about days that it's not windy? Yeah, I mean, you can build a million wind turbines with fancy fans the size of like a very hefty building. But on non-windy days, when the turbines aren't spinning, you still need those old coal burning dirty power plants. So you built a million wind. turbines, which is great, but then you can't shut down the old fossil fuel plants because you still kind of need them every now and then. Now, Congress is still debating climate change infrastructure bills. But LG, they're not waiting for that. Uh-uh. They're pouring billions in. So, Jack, what's the takeaway for our buddies over at LG? Batteries can solve the, but what about problem

of renewable energy. Every time you're saying to get a kick out of it, Jack. Snackers, the BBC reported in December that big batteries could make fossil fuel obsolete. From California and Florida to London and Chile. Harder drive. They're building huge factory-sized batteries. Yeah, and these huge batteries take in and store tons of juice on a very nice, sunny and windy days. And then they send out that stored electricity when it's cloudy and not windy. Boom, big batteries can fill those, but what about gaps of renewable energy? That's why LG is so bullish on batteries, specifically these huge ones.

Yeah, you got big governments pledging to be fully clean, carbon-free, and the future. future, but they need the big batteries to get them there. That's why LG is splurging to supply those huge batteries. Because they solved the, but what about, problem of renewable energy. Jack, can you whip up the takeaways for us for the new Friday? Unless you're a married couple making over 440,000 a year, you're getting a check today for each kid you have. Yeah, prepare for the secret economic stimulus, the kid stimulus.

Oatley stock dip yesterday on a 124-page burn book. Fudge fund accusations are one thing. Losing the market share, that's another thing. L.G. Kemp is investing 10 trillion won on sustainable battery-focused initiative. Huge batteries could solve the, but what about problem of renewables. Now, time for our snack fact of the day, which is actually about yesterday's snack fact, which fun snack fact here was our most corrected snack fact ever. Yesterday, we cited our buddy Deloche. Yeah, we blame him. Who said that only two days of the year, have no sports games ever. Right.

The day before and the day after the Major League Baseball All-Star game, no major big sports games. However, the Bucks did play the Sungs last night in the NBA finals. Yes, they did. So there was a game the day after the All-Star game. So this fact is actually correct for every single year, except for 2020 and 2021, when the NBA seasons got delayed because of COVID.

And more importantly, the WNBA All-Star game also was yesterday, which was an oversight by us. Huge oversight. So the snack fact for a buddy Deloche, it should be this. What are the only two days in non-pandemic years with no games from the four major men's sports teams? And that would be the day before and the day after the MLB All-Star game. Also, kind of funny, we got more corrections to that snack fact from Bucks fans than from Sons fans. What does that say about you Sons fans?

Or what does that say about the Snackers in our audience and our geographic distribution? Someone's been drinking a lot of holy. Jack, can you give us more but what about? But what about it? You will see tomorrow. And before we go, happy birthday to Noel Garet in Zocotepa, Mexico. And happy birthday to Anika Galani in Waldwick, New Jersey. And Reagan Reddick over in Middlesex.

And Emily Sorensen in the Upper West Side. And Sully G. in Simar, California. Kyle Cushman in Redondo Beach, California. And happy birthday, Salvador, Gomez, in San Fernando Valley. And Ashley Barnum in Rocky Hill, Connecticut. And William Christensen in Rexburg, Idaho. And Mike Tash in Ontario, Canada. And in a heat, beg Lujan in Granada Hills, California.

Finally, happy birthday to Kevin, who apparently lives in one of New York City's public parks. Yeah, Brian Park. It's a great park, so, like, I don't blame it. It gets cold in the winter. It does. Nick Alguzine, by the way, Jack, just got promoted over Coca-Cola. Congratulations. And also to Felicia Chang, who just got into Carnegie Mellon's theater program.

And we got an anniversary for Levi and Julia back from South Carolina originally. And special happy birthday to Mike from Atlanta. Who's been snacking since 2018? The best kind of snacking. And to anyone else celebrate something today, make it a tea boy. Celebrate the wins, even though it's July 15th. This is Jack, Nick on Stock of Apple. 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 and 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. Dude, you get me every time. Sometimes I feel like I give you laughs too easy, but I enjoy them so much.