Welcome back to the jaws of Carlson show.
On today's episode, we're going to be reviewing three deep value
companies, the way that I would define deep value, is basically
every metric on the table. Every one of them from the PE
Ratio, the price to books the price to sales, the dividend
yield the historical valuation. All of them, show that these
companies are very deep value. Ally Financial is one of them.
This company trades at a 4.5 PE ratio.
And it pays a 3.6 percent dividend yield Paramount.
Global is another one. This This company trades at a
nine point three PE ratio and as a dividend yield of 3.7% and
then Intel's the third one. This companies that at n PE
ratio and a 3.9% forward dividend yield, so we'll be
looking in depth on all three of these companies, and I'll share
my opinion on whether or not I plan on buying them.
Now, we also have a lot of news to go over in this episode as
well. Howard Mark says, now is the
time to buy Ed Pitonyak, the CEO of each.
He went on to Mad Money with Jim Cramer to explain new potential
categories that Vici May grow into Cook basically admitted
that apple is working on an AR VR headset, and he even gave
kind of a hint of when it would be released and apple,
reportedly is going to have a flood of new devices coming.
This fall, we'll be looking at this news and the rumored
devices and what it could mean for Apple stock.
So, we have a lot to jump into. Let's go ahead and get started.
First of all, looking at the last week, if I filter by the
past five days were up six, point eight, nine percent,
that's twenty one thousand one hundred and seventy eight
dollars. So this was actually a decent.
Second week, stock price has moved up.
We earned a thousand dollars in dividends in one week, twenty
thousand dollars in capital gains and that's nice to have.
But I really don't pay attention to this too much.
It's interesting to look at but these stock prices trade around
week-by-week like crazy and timing.
These moves is very difficult a week ago.
There is many people, many content creators, many
YouTubers, many tick talkers, many Financial Twitter accounts
saying to not buy the dip to stay away from it.
And here we are up 7%. Sent in the past five days.
This is the risk of trying to time the market that I've
repeatedly warned people against.
It is incredibly difficult to do and most people don't come out
successful. I'm not doing that.
I'm staying invested in these companies and I'm continually
compounding my passive income. I record this level of passive
income on a website that I use called quatrain sites.
This is available to all patreon members.
You can see the growth of it month over month throughout
time, and I'll be adding in June's dividend income at the
end of the month. So next We will see how much I
earned in June, but I'll give you a little bit of a preview so
far. In June, we've had a total of
three dividend payments. We've had one on June 9th from
Microsoft for $95, one from Target for $10, and then one
from Texas Roadhouse, for $140. So only three dividend payments
so far this month. And based off, just these three
payments. It looks like it'll be a pretty
low dividend amount this month. That's what it looks like
because we're only going to get what $200 in dividends 250
bucks. That's not a lot but We can get
some more information on this. If I go back to qual trim, I can
see my upcoming dividends. This is my dividend pipeline.
These are ones that are not projected.
They're not hypothetical. These are officially declared
dividends that I am 100% going to get paid based on my current
Holdings and I will get paid $552 from SC HD tomorrow.
That'll hit my cash balance tomorrow.
So this one dividend payment will raise my entire dividend
income for the month to around 700 $800.
This one dividend payments going to bail me out then on the 29th
we also have 26 dollars from tiro price and then July 7th, I
have that $445 dividend from Vici.
So all in all this is adding up to what could be a pretty close
to record month, it certainly will be a high one.
So I'm excited to see the dividend income growing.
So I'll have some cash to spend. I'll have a little bit to put in
this portfolio and hopefully by the most attractive companies I
can. Now, before we get into
companies, I'm looking at and doing analysis on I want to just
go through some input that Howard marks has in my humble
opinion. I think that Howard marks is one
of the most remarkable introspective investors of at
least the past five years. When I look at different advice
and and different actions that investors took, I think that his
overall was was very good over the past three years, he behaved
and acted and his input. I think was far more valuable
than most other investors input. So I pay attention to what he
says. And to my delight I was Eyes to
see and happy to see an article where Howard marks was not
cautious. He wasn't being defensive for
the past couple of years. He's been defensive and
cautious, but right now he has turned aggressive.
And in the article he goes on about why he's being more
aggressive. He says, quote today I'm
starting to behave more aggressively everything we deal
in is significantly cheaper than it was six or 12 months ago.
That is the key line there. Howard marks does look at
relative valuation. If Is go up rapidly.
He's less eager to continue buying because he knows that
those tend to revert. Back to the mean when prices go
down rapidly that catches Howard marks attention and he's more
eager to start buying and it is true that basically everything
in the equity markets right now is significantly cheaper than it
was 12 months ago. Now, what he deals with is high
yield bonds, leveraged, loans mortgage-backed Securities and
collateralized Loan obligations. He's in a different category of
investment but the point Still Remains and I think His advice
here is completely applicable to what we're buying, which is
typically stocks. And even though Howard marks
will posture himself to become a little bit more aggressive in
his buying and a little bit more conservative.
He also thinks that timing the market is a terrible idea.
He says, quote, I think the idea of waiting for a bottom is a
terrible idea assets, could get cheaper than current valuations,
in which case we'll buy more. Now this statement can be
confusing if he is 100%. Sent invested right now.
He has all of his money invested.
He's not waiting for a bottom and prices move down.
What is he going to use to buy more in his case?
He could raise money. Through different means you
could raise cash maybe from investors and then you could do
something else that we could do. He could look at Investments
that did not move much during those downward movements because
not every Investments going to fall in price.
So if the market move down more, he could sell some Investments
that have held up relatively well and move that money into
the ones that have come down. And price significantly.
So even though you're 100% invested, that doesn't
necessarily mean that you can't buy more in the future.
Most of us are going to continue working will have incomes that
we can use to fund future Investments.
And we can sell conservative Investments to make room for
more aggressive ones. For example, if the stock market
goes down, another 20% odds are Pepsi will go down like five
percent. That's the case I could sell my
Pepsi holding to buy more aggressive Holdings in something
like tech companies. So there's Are ways to stay 100%
invested and continue to buy as the market moves down.
And Howard marks goes on of why he's being more aggressive right
now than other points in the market.
He says, quote were more aggressive if we think Bargains
are Rife. So Howard marks thinks right
now. Bargains are right.
He says and we are more defensive.
If we think the market is elevated and investor behavior
is imprudent and this is something that is repeated over
and over again, with the less Prudence that other investors
conduct themselves. The more Prudence you need to
You have and the more prudent, other investors become, the less
imprudent you should conduct yourself.
So when other investors become less greedy, they start giving
up on the stock market, they become fearful, they start
selling out of good companies. That's when it's time to become
a really aggressive and by Deep value companies.
Right now, if I look at my portfolio on the dip finder
which is a tool I developed as part of the patreon membership,
this tracks, the movement of every single company against
their 200-day moving average, that is a technical analysis
term of tracking them. Mentum of a stock if these
companies have momentum downwards and momentum upwards.
Right now, every company in my portfolio has momentum
downwards, except for Pepsi and Vici vgz only one that has
positive momentum. So I completely agree with
Howard marks sentiment here. So having said that, let's go
ahead and look for deep value. Dividend-paying companies, I
have three of them currently that I want to review the first
one that we're going to. Look at is Ally Financial.
And the website we're using here is quatrain site.
It's something we've developed as Part of the patreon
membership, you can join the patron with a free trial with
the link in the description or the pin comment below.
Now, Ally Financial is a bank, so it's it's an online bank.
It's kind of a newer version of a bank where they don't have
physical branches, and that's been a big cost Advantage for
Ally Financial. Because if you compare Ally
Financial to something like Bank of America, right?
You compare it to these two different companies Bank of
America or Wells Fargo or JP Morgan or Citigroup, All of
them, have thousands of different physical branches, all
across the United States. All of those branches have
employees in them. They have rent.
They have leases that they have to pay, and that adds to the
cost of running a Bank of America.
Well, Ally Financial came up with a different business model
of having their Bank have no physical.
Branches 100% online and being 100% online.
Improves their cost structure and allows them to do things
that other Banks simply don't do.
For example, they have a 1% interest on their savings
account. Be Morgan Bank of America Wells,
Fargo Citigroup typically, they don't do that.
It's much lower, they have no overdraft fees.
They were one of the first Banks to get rid of the overdraft
fees. And in terms of the concern of
customer support, they have 24/7 customer support and both live
chat and phone so you can get a hold of them at any time even
though they have no physical branch that you can walk into.
Now, this business model that Ally Financial has having no
physical branch has made it so that they could build up their
business without taking on as much debt.
That's one of the huge advantages that they have, for
example, take a look at their funding composition.
This is off of their most recent earnings report, they have
deposits, and purple secured debt, which is the really bad
debt in the gray there. And then they have other and
unsecured debt. Over time.
Ally Financial has gotten rid of more and more debt.
And now they have almost no secured debt.
So they've gotten rid of almost all of their bad debt.
Only one percent of their funding is from secured debt and
even unsecured debt only makes up five percent.
That is a very small amount and they do this because they can
fund their entire business purely from deposits.
That's the difference between them and other Banks.
They don't have as much overhead, so they don't need to
take on as much dead. Now, in terms of valuation, it
doesn't really get much cheaper for this high quality of a
company Ally Financial currently trades at a 4.5 PE ratio.
That's a very low price to earnings even if we are going
into recession this is really low in 2019, for example, this
was a nice So Ally, financials trading at half the PE at was
pre covid and then the price to book is point eight, which in
absolute terms is also very inexpensive.
So the basic metrics right now look like a lies deep value.
If we bring up the price chart hair, we can look at the past
five years. This is how the companies traded
in 2017 to 2019, the company traded around 25 to 30 dollars.
That's the price range. Then of course, it's sold off
during covid with everything else.
And then it started at steady climb all the way back up to $55
investors were excited. During this time, all of
financials including JPMorgan and other big Banks traded up to
record highs and now the excitement has fizzled off and
it's been replaced with fairs, many fears concerning their
future and right now, the company trades at $35 per share,
which you'll notice is right around where it was pre covid in
2019. But things have improved
dramatically for Ally Financial since 2009.
Kane. We've already seen that their
balance sheet, their deposits, and their debt have all
improved. They've had more deposits and
less debt. That's a good thing and it's
actually improved significantly since 2019.
Yet the stock trades at the same price, the liquidity composition
of the company has also improved.
They've added billions of Highly liquid Securities and cash
equivalents, their allowance for loan losses which means how much
wiggle room they have for loan. Losses has also over doubled.
In 2019 it was point nine. Nine percent So under one
percent and now it's 2.63 percent.
So Ally Financial has a lot more margin of safety.
They have a lot more wiggle room in case they take on loan losses
and this is important to keep in mind because the reason that
Ally financials trading down, so much right now is specifically
for this concern, and that is because Ally Financial makes
around 70 percent of their earnings from used auto loans.
They are huge in the used auto loan market, and investors have
very big concerns about that. Here is a chart showing the
Average price of used cars over the past three years in 2019
there around 21,000. So if you wanted to buy an
average is car, you're paying 21 Grand then it went down a little
bit to 20,000. Then in 2020 it started to climb
22,000. Then in 2021 used car prices
really exploded going up to twenty seven, twenty eight,
twenty nine, thirty thousand dollars and they have not begun
to come back down. Use car prices are now at 30,000
And $786. And this is the index price.
Meaning, this is the average of all us car brands.
This is a 44 percent increase in price over the past two years.
And this increase in used car prices has certainly benefited
Ally Financial. This is a big part of the reason
their net income went from 380 million, 400 million to 900
million in the course of one year.
Loan volumes increased significantly because of used
car prices, going up 40%. And although that's been great
for Ally Financial for 20 21, The question is, how long will
those used car prices? Stay this high will they
collapse? Will they go down 30-40 percent?
Or will they stay at a very high level for a long period of time
and this is where opinions differ greatly.
Here's the CEO of Ally Financial and his opinion on the subject.
But we think the normalization and used car pricing is going to
be very, very gradual. In early signs in 2022, is the
market staying quite strong. What?
I will tell you within our financial projections that we
provide to the street we call, for a 15% decline between Tween,
the start of 2022 and the end of 2023.
I think the reality is going to likely pan out to be something
different. We think used car prices are
going to remain quite robust for the foreseeable future.
He just said that he's calling for a 15% decline. 15% from 2022
to 2023 so they think used car prices will only decrease by 15
percent over the year and he even says that those estimates
are conservative and more than likely, it'll go down.
Less now Ally Financial stability.
It's on the subject differ greatly from other YouTubers and
people that work in the industry.
Here is one example that recently got highlighted the use
car bubble, lucky Lopez hair goes to a repossession lot and
says that repossessions are picking up because people are
underwater and they're used cars and they're going to start
ditching them which would cause low and losses for investors in
Ally Financial. He goes to parking lots where
there is repossessed vehicles or unsold vehicles and he shows how
many of them are coming in that more and more repossessed or
unsold vehicles are filling lat. It's and there's actually going
to be a cart influx, not a desperate need for them.
Like we have. Right now, there's also another
piece of data I looked at, from KPMG, which is a used car price
market, and whether or not it will crash in it.
They have a section called when the Music Stops nature abhors
vacuums and Market support, and balances demand.
And supply of new vehicles. In the US will come back into
equilibrium, how that happens. We'll make an enormous
difference to automakers consumers, Parts, suppliers Auto
retailers. Perhaps the economy itself,
given the current trends of inflation, new car prices could
continue to rise through 2022. However, as Supply comes back,
automakers are likely to reintroduce incentives and
dealer margins will compress. As a result, we may see a
reversal of some portion of the price increases, whatever path,
the new car market takes to The New Normal used car prices will
eventually return to the traditional relationship with
new vehicle prices. In other words, a 20 to And
plunge and used vehicle prices is in the cards and then they
show different charts, illustrating likely outcomes
based on inflation. But they admit this is not a
perfect science and they really can't predict the outcome.
What they can predict with a certain level of confidence, is
it used car prices, won't trade in line with new cars for long.
That is an imbalance in the market.
And as we've seen over the past two years imbalances, eventually
get worked out. So, as of right now, I'm pretty
torn on Ally Financial. I really am.
The company's a fantastic company.
That's honesty. If you can't dip, it has growing
revenues ibadah cash flow. It has a better balance sheet.
That dividend growth is superb. This company has grown its
dividend like crazy over the past five years.
It pays a very high 3.6 percent yield with the low payout ratio.
So the dividend does have room to raise over time even more
than what it's currently at and the company's doing share
BuyBacks. They raise their buyback program
to two billion and the shares have been going down.
Steadily over the past five years in terms of the Metrics in
the fundamentals of this company.
It looks like it's incredibly well priced deep value and it
has very strong fundamentals and maybe the market is overreacting
and this is a great entry point. Now, the next deep value
dividend-paying company we have is Paramount Global.
This is the Paramount plus company.
This caught a lot of investors attention.
When Warren Buffett added it to his portfolio.
This is actually a decent amount to their portfolio.
A point seven two percent waiting not insignificant when
you're looking at two point, six billion dollars.
So Berkshire, thought Paramount was worth holding.
The company also trades at a very low valuation, a 9.3
forward, P/E ratio that is well below the S&P 500 17 over the
past five years. This stock has continually been
on a downward Trend it dipped heavily in 2020 then it
skyrocketed. When Bill Huang used his twenty
billion dollars of Leverage to bid up to ninety four dollars, a
share, all that leverage quickly, got unraveled back to
where it was at forty, one dollars, a share.
And now, the stock price is all the way down to $25 per share.
Now, over that steady decline in stock price, It's a lot is
change Viacom and CBS merged together in 2019 to form
Paramount. Plus that's why you see the
rapid increase in their revenue, going from fourteen point five
billion to twenty seven point eight million.
This was because of a merger. This also caused their ibadah to
climb. You can see it go up in 2019.
So even though the ibadah is going up like many content
companies we've seen similar to Netflix, the free cash flow is
going down because they have outflows of cash to pay for
content. That they all hopefully monetize
by new subscriber gains and this is where the difficulty of the
story comes into play. The free cash flow is going down
over time because the economics of cable companies is well
proven to be very good economics, very profitable.
The economics of streaming businesses is not yet proven to
be very profitable, and you can see that through the free cash
flow line. So, as they make this transition
from cable company to streaming company, it's very similar to
what Disney's doing, and there's a lot of volatility And unknowns
in the process, but they are driven to make this a successful
and profitable change. Now, the balance sheet shows
that they have a lot of debt. In fact, if we filter by the
amount of debt, you can see that in 2019 with that deal their
debt, roughly doubled. And right now it's at 18, point
three billion, but this debt has been moving in the right
direction down from 21 billion to 18 point three billion.
So their debts going down and their cash.
Balance is increasing over time to things that I like to see and
as of right now their debt really Isn't considered a
problem they can cover through their ibadah.
Now the shares outstanding for this stock jumped, when they did
the mergers. So, in 2019 that shares
outstanding went up like crazy, but it's sense basically leveled
off and the past four quarters, they haven't really issued any
new shares and they're not a company that I think wants to
dilute the shareholder. So, here's my thoughts on
Paramount, overall the company fundamentally looks fine, the
valuation of its low, the dividend yield is high.
The payout ratio is low. It looks like it's going in the
right direction, but I very hesitant to jump in to another
big entertainment company. With a lot of debt transitioning
from a legacy cable company, to a new streaming company, the
challenges, these companies face in the process, I think are
immense and we can see Disney going through these challenges
right now. Disney is my biggest loser, in
my entire portfolio. The stock price went up like
crazy and then it's gone back down since investors are
starting to question the economics of streaming.
So right now, I'm already exposed to the streaming
industry through Disney. Eventually Disney and Netflix
and other companies will prove that streaming has good
economics. But as of right now, I don't
want to add any additional exposure to my portfolio.
I already have Disney in it. Already have a thesis on this
company and I think Paramount plus would be kind of, more of
the same. A big Legacy company with a lot
of debt moving from cable to streaming.
So, I know that Paramount plus is not the same as Disney.
I realize they're different companies, but they're in
similar enough Industries and situations that I don't want to
double my exposure. Now the next That deep value
dividend-paying company. I'm looking at is Intel it
trades at a 10 forward, P/E ratio, and Evita ibadah of 3.7.
This is cheap. This is numerically cheap.
The dividend yield is three point nine five percent.
So you're getting almost a four percent starting yield on the
company with a low payout ratio of 24.
Moreover, if we look at the valuation, we can look at the
free cash flow. This company generally speaking
it's been growing over time and 2020.
It was twenty point nine billion last year.
Is nine point six billion. This is significant free cash
flow. This means the company with its
157 billion market cap is trading anywhere from a 10
priced free, cash flow to a 20. That's a very cheap price to
free cash flow ratio. And it's not like this company
is trading at a price that normally trades that it's
currently down, 21% below, its 200-day moving average which
means the company is in a dip. In fact if we bring up the price
chart here we zoom out ten years.
We can see that until right now is around 37.
Evan per share and its trading around the same price.
It was in 2017. And in between that time period,
it's traded well above that up into $67 per share.
So, let's go ahead and look at the fundamentals of this
company. First of all, we want Revenue
growth. This company is growing its
Revenue, even though it's an old company that's getting beaten up
by AMD and Nvidia. They're still growing Revenue,
which is something reassuring to investors.
Another thing we want to see is that ibadah growing over time
and clearly that ibadah is growing especially over the past
four years. Here's the free cash flow like
we've seen is generally speaking growing over time.
This won't be perfectly consistent every single year but
you can see the Trends. They are pumping out a lot of
free cash flow every year they're balanced.
She actually looks really good. They currently have 38 billion
dollars in cash. Thirty two billion dollars in
debt. So this is actually a company
that's cash-rich they have more cash than debt and Intel also
has been a very consistent dividend pair.
They haven't grown it consecutively every single year.
There's some years where they've taken a break and raising it,
which I think is prudent from the management team to do when
they need to. But you can see over the past 10
or so years. You've had pretty significant
dividend growth with this company.
Now, this is a company that historically has done a lot of
share BuyBacks, so they've been paying a dividend and doing
share, BuyBacks returning. Most of the capital immediately
to shareholders, but you can see that over the past couple of
quarters, they've taken a break from it and I believe to do more
capex, spend. They're trying to reinvest back
into the business to compete with AMD and Nvidia.
And other chip makers because we can see if we look at the capex,
spend that it's gone up quite a bit over the past five years and
this can be viewed as a positive or A negative for Intel
investors. I view this as a positive, they
have to spend heavily to continue making money and
maintaining a competitive Advantage.
So I think this 20 billion dollars in capex spend is
probably well spent, so overall in tells another good dividend
paying company that I think is in deep value territory, the big
assessment here is whether or not You think this company can
continue to compete with the likes of AMD?
These companies have really raced ahead and their technology
and Intel is kind of in catch-up mode.
You can see the revenue growth of a company like AMD.
This is what they're competing with.
Nvidia is another one. This company's raced ahead and
Technology leaving until in the dust.
So these are the issues at Intel's dealing with and I don't
think that it's it's a death sentence for Intel.
I don't think it means the company is a bad investment.
It's just a judgment from the investor.
Do you think Intel will continue to grow and keep up with
competition? Or will it get steamrolled by
AMD and my big reservation that I've always had with Intel is
them keeping up of competition? In fact, out of these three
companies one that I'm closest to buying, the one that I think
has the best story of the best fundamentals in, the least
amount of overall risk to its future, is Ally Financial.
This is one that I really could see myself buying in the
near-term future. I think that there's a decent
chance that the concerns with Ally Financial are being
overstated. By the market ever since 2008,
the market looks at any type of recession, Fair any type of loan
losses, and they think that banks are poison that you have
to avoid them. You have to get out of
financials. And I think there's a very good
chance that companies like Ally Financial will fare far better
than expected even in a recession.
So those are three companies I'm looking at but I haven't added
any of them to the portfolio and in the meantime, I will be using
my cash balance to reinvest, so if I can't find any new company
to buy currently all Ploy my cash into my current Holdings.
The way I do that is pretty simple.
I just look at which companies selling off the most.
I go in and add to the ones that I think have the best
combination of their current future outlook and the lowest
price. Now, moving on, I want to jump
into some news here. One of my largest Holdings which
is VT property, the CEO went on to mad money last week and he
shared with Jim Cramer some, some different categories that
VG's looking into expanding into different real estate that
they're in talks of buying and I want to give my action to this.
Now, before we jump into this clip, I have to mention today's
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All right. Now let's go ahead and get back
to this clip. Here we have the VTC 0 which is
a A CEO of one of my biggest Holdings in my portfolio.
I currently have a value of thirty seven thousand nine
hundred and Vici around 6,000 of that gains.
And I plan to continue adding more to this company.
I really like the leadership. I like the future of it and I
especially like the valuation and risk profile.
I think the risk adjusted returns Avicii, in my opinion, I
think it will be pretty good over the next ten years.
But VG has started off with the majority of its exposure.
In gaming. Real estate which is is
basically gambling like Caesars Palace and MGM and the VTC
O'Hara's explaining different experiential categories that
they're going into. We're also very excited about
growth in non-gaming which was evident when we announced our
very exciting transactional. Cavett the first place outside
of casinos that he mentions is Cabot, which I've known for a
while that VG's going into golfing.
So, this wasn't much of a surprise, one of the leading
Place makers and operators and what we call pilgrimage golf
globally. So we know that VG's, big into
casinos, Hotels and golf, but what other categories might they
be looking at now? Jim asks him if they plan on
doing deals with the NFL and Ed has a different category of
sport in mind. We know we haven't cracked the
NFL yet but I will tell you that the global soccer Global
football is a category. We're intrigued with the
category in which we are having some initial discussions and
Global soccer. Global football is a category
that they're having initial discussions with and he goes on
to highlight that Global soccer they believe will have more.
Flex of cash and New Capital into that sport category than
the NFL. So we've seen Vici grow its
business from gambling hotels, golfing, and now they may be
going into soccer. So I'll be along for the ride
and I'll let you know if they announce any new deals.
Now, moving up to a different category of company.
My biggest holding and total value is Apple.
This company's been a great performer so far.
Even after the pullback I'm still up twelve thousand
dollars. Now we know that Mark Zuckerberg
is really excited about the metaverse.
They bought Oculus, they've sold millions of these devices and
their spending and around 10 billion dollars per year on
research and development just for the metaverse.
Just for a are Mark Zuckerberg sees the metaverse and these
headsets as the growth path for Facebook.
It's why they changed the name of Facebook to Metta and he
recently just released a video of all the different headsets
they're developing. Today, I want to show you for VR
research prototypes that we're working on to invent displays
that are as Vivid and realistic as the physical world and much
more advanced than traditional computer screens we use today.
First we need retinol resolution and that means getting up
towards, you know, that 60 pixels per degree.
So we built butterscotch? That's this prototype that lets
you comfortably. Read the smallest letters on an
eye chart. Second is focal depth, normal
monitors or a set distance away. So you just focus on one place
but in VR and AR you need to be able to focus on things that are
very close and very far from you with varifocal and eye, tracking
tech power, half tone prototypes but you focus on any object.
Eject at any distance, we also need to fix Optical distortions
and software so quickly that it's imperceptible to the human
eye. Next is high dynamic range
nature is often 10 or 100 times brighter than modern HD TVs and
the highest and monitors and we need those colors to be just as
Vivid to feel realistic. So we built Starburst.
The first HDR VR system that we know of the goal is to fit all
of these Technologies into a device that is lighter and
thinner. Than anything that currently
exists. So we built Halo kick to a
working experimental device, using holographic displays that
can already play PC VR experiences and there's still a
long way to go, but I'm excited to bring all this Tech to our
products in the coming years. Now while Zuckerberg and meta
has been very open about their development, and their goals,
and their process, even showing us, their prototypes, there's
other big competitors that have taken a different approach.
Apple has been rumored to be working on the same project.
For some time, but all of this has really been rumors.
We know that they've been working on this through
deduction of employees and different people that have been
hired at the company, different rumors and maybe a couple leaks.
But so far this has been second and third party sources.
Here is a clip right from the CEO of the company, the actual
source and he's asked specifically about AR and VR.
Hi, mr. Cook nice to meet you online.
Chinese consumers are highly enthusiastic about VR and AR
Technologies, but some of them Not very satisfied with the
products currently available on the market.
So what do you think are the key factors for a our products such
as a I had access to succeeding in the consumer Market?
He's a specifically about AR and VR headset Chinese consumers are
excited about the prospects but they don't like the devices that
much. What does Apple have up its
sleeve? That's a great question.
I am incredibly excited about AR as you might know and the
critical thing to any Technology including a are, is putting
Humanity at the center of it and that is what we focus on
everyday. I couldn't be more excited about
the opportunities we see in this space.
This is where he gets to the important line of his little
speech here and sort of stay tuned.
And you'll see what we have to offer and sort of stay tuned.
And you'll see what we have to offer.
I don't know if that could be. More direct apple is going to
release a virtual reality headset.
Now, there's still lots of questions surrounding this.
When is it going to be released? What is it going to look like,
what type of technology is it going to use a report by Mark
Germann on Bloomberg? Which is one of the best leakers
of Apple news. He's been pretty accurate.
He says that apple is going to flood the market with new
products. Later this year, these new
products should be somewhere between fall of 2022.
And the first half of 2023, the new products will include for
iPhone 14 models 38 Apple watch variations several Max with M2
and M3 chips. The company's first mixed
reality headset so they're calling it mixed reality low end
and high end iPads updated earpod Pro are buds a fresh home
pod and an upgraded Apple TV. Sounds like they have a number
of devices in store. Now, Mark also goes into more
detail on the mixed reality headset.
He says that he's told the latest internal incarnations of
the device, run the base M2 Chip along with 16 gigabytes of RAM.
That's pretty powerful. That's like a lot of high end
laptops having the M2 Chip and 16 gigs of RAM.
They also say that they're already working on the release
of the M3 chip, the successor to the M2 again, technically, these
are rumors, these are reported from third parties but when Tim
Cook himself, is saying just wait and see, see what we have
in store. I think he's giving some
validation to the fact that they're going to be releasing an
AR headset. And I've said this many times
and I know that it upsets people and I say because Facebook's and
undervalued stock, lots of value investors have piled Add into
it, in many cases, it's their biggest holding.
But again, if I have to choose between Facebook, say R VR
headset and apples, which one I think will be the most
successful. I much rather bet on Apple's
Hardware Division and their developer base.
I think in both cases, apples ecosystem, their developer base.
And their Hardware team is far superior to Facebook's.
So, when I look at the two options, I think that apple is
going to run away with this category.
That's my prediction. I think they'll make Facebook
become a small player. If Apple does eventually
introduced their own VR headset. Now, that doesn't mean that
Facebook's not a goodbye, it can still be a good investment but
if I'm talking specifically about these two companies
competing an AR and VR, I will bet on Apple every day of the
week. Now, that's all for.
Now, I hope you enjoyed the show and I'll have more content out
later this week. So if you haven't already
subscribe to the channel and we'll have another update out
this week.