1 00:00:00,100 --> 00:00:01,800 Welcome back. Everyone today on the jobs of 2 00:00:01,800 --> 00:00:05,100 Carlson show, he's back. He's finally back to save the 3 00:00:05,100 --> 00:00:08,100 day. We have Bob Iger returning as 4 00:00:08,100 --> 00:00:12,700 the CEO of Disney. This is a little surprised that 5 00:00:12,700 --> 00:00:15,600 I was not expecting but we have this happening. 6 00:00:15,700 --> 00:00:20,800 It's real Bob Iger is the CEO of Disney effective immediately and 7 00:00:20,800 --> 00:00:24,000 even more importantly than that Bob Che pack is gone. 8 00:00:24,000 --> 00:00:27,900 Bob capex tenure as Disney CEO has been disastrous. 9 00:00:28,200 --> 00:00:30,700 And in this episode, we're going to Go over it. 10 00:00:30,700 --> 00:00:33,000 We're going to go over, both everything, that's happened over 11 00:00:33,000 --> 00:00:35,800 the past two years with Bob, capek as CEO. 12 00:00:36,000 --> 00:00:39,500 And what I think the future holds with Bob Iger as the new 13 00:00:39,500 --> 00:00:42,000 CEO. So we have a lot to unravel and 14 00:00:42,000 --> 00:00:44,100 unpack in this video a lot to go over. 15 00:00:44,300 --> 00:00:47,900 And even to add two twists, we have another surprising twist. 16 00:00:47,900 --> 00:00:51,800 Something that I don't see too often and I hesitate to even 17 00:00:51,800 --> 00:00:54,400 highlight this because I think it's a dangerous game, I'm 18 00:00:54,400 --> 00:00:57,800 playing here, I have an instance where I think Jim Cramer may 19 00:00:57,800 --> 00:00:59,700 have been, right? You may have made an accurate 20 00:00:59,700 --> 00:01:00,400 prediction. Action. 21 00:01:00,700 --> 00:01:03,300 This may be one of the few cases, and I'm going to go ahead 22 00:01:03,300 --> 00:01:06,100 and highlight it with caution on my channel. 23 00:01:06,100 --> 00:01:08,000 And then outside of the Disney news, we also have some 24 00:01:08,000 --> 00:01:11,500 important news with Elizabeth Holmes, the case has concluded 25 00:01:11,700 --> 00:01:15,100 and she received her sentence of a little over 11 years. 26 00:01:15,100 --> 00:01:17,200 In federal prison. I'm going to show how this 27 00:01:17,200 --> 00:01:21,200 Stacks up against other cases and compare her sentencing to 28 00:01:21,200 --> 00:01:24,000 that of Sunny bhawani. So I'll be going over this as 29 00:01:24,000 --> 00:01:25,500 well. So as always, we have a lot to 30 00:01:25,508 --> 00:01:27,400 get to in this episode. Let's go ahead and Jump Right 31 00:01:27,400 --> 00:01:29,600 In. Now like I mentioned many times 32 00:01:29,600 --> 00:01:32,000 this, Channel is a little bit different than most channels on 33 00:01:32,000 --> 00:01:35,200 YouTube rather than just talking about investing and talking 34 00:01:35,200 --> 00:01:37,400 about finances. I actually show which 35 00:01:37,400 --> 00:01:40,600 transparency everything I'm doing with my portfolio, whether 36 00:01:40,600 --> 00:01:42,800 it's good or bad. I track the passive income 37 00:01:42,800 --> 00:01:45,700 portfolio, week by week. This is a variation of a 38 00:01:45,700 --> 00:01:49,800 dividend growth portfolio with a strong emphasis on Compounders 39 00:01:49,900 --> 00:01:52,000 companies that have certain characteristics that I think 40 00:01:52,000 --> 00:01:54,800 lead to outperformance. Now this portfolio has done 41 00:01:54,900 --> 00:01:57,700 really well in fact, year-to-date, it's only down 42 00:01:57,700 --> 00:02:00,800 twelve point three, seven percent that's Bad being down, 43 00:02:00,800 --> 00:02:05,000 12 percent, the S&P 500 for examples, down 17.5, and the 44 00:02:05,000 --> 00:02:07,300 qqq's down a bit more at, minus thirty percent. 45 00:02:07,300 --> 00:02:10,199 So, even though the portfolio performance overall is doing 46 00:02:10,199 --> 00:02:13,100 well, there's one company in my portfolio that's doing 47 00:02:13,100 --> 00:02:16,000 particularly bad. That company is Disney. 48 00:02:16,000 --> 00:02:19,500 I'm down seven thousand five hundred dollars on Disney. 49 00:02:19,500 --> 00:02:23,400 Now, when I originally picked Disney, this is supposed to be 50 00:02:23,408 --> 00:02:25,500 one of the safest picks in the market. 51 00:02:25,500 --> 00:02:28,400 This is a company with Incredible brand value. 52 00:02:28,400 --> 00:02:31,800 A huge mode, it has, As International presence, it had 53 00:02:31,800 --> 00:02:34,800 high profitability, Disney was a shoo-in. 54 00:02:34,900 --> 00:02:37,500 This was a company that's been around for 100 years and isn't 55 00:02:37,500 --> 00:02:40,700 going anywhere. But this company has been my 56 00:02:40,700 --> 00:02:43,900 worst performer by far in the passive income portfolio, 57 00:02:44,000 --> 00:02:46,300 Disney's done. So poorly over the past couple 58 00:02:46,300 --> 00:02:51,000 of years, it's down 41 percent year-to-date and it wasn't doing 59 00:02:51,000 --> 00:02:55,300 great before then, in fact, over the past five years, half a 60 00:02:55,300 --> 00:02:59,300 decade. Disney's down - 11%, and this is 61 00:02:59,300 --> 00:03:01,900 a company that No longer pays a dividend so it doesn't pay a 62 00:03:01,908 --> 00:03:03,800 dividend and the capital gains are down. 63 00:03:04,000 --> 00:03:06,400 This has been a very difficult stock to hold onto. 64 00:03:06,500 --> 00:03:09,300 It's been very discouraging to keep invested in Disney and 65 00:03:09,300 --> 00:03:12,600 before Bob iger's surprisingly took back the CEO role. 66 00:03:12,600 --> 00:03:15,000 The sentiment for this company has never been lower. 67 00:03:15,100 --> 00:03:18,600 And I personally believe that a large part of Disney's under 68 00:03:18,600 --> 00:03:21,700 performance is related to one individual who was the CEO of 69 00:03:21,700 --> 00:03:25,400 the company, Bob, capek. His tenure over Disney has not 70 00:03:25,400 --> 00:03:27,200 been good. Let me lay out the trail of 71 00:03:27,200 --> 00:03:31,200 problems and unforced errors, that Bob, Okay, Peck caused 72 00:03:31,200 --> 00:03:35,400 problem, number one, Scarlett Johansson sued Disney 450 73 00:03:35,400 --> 00:03:38,300 million dollars. A public lawsuit, from one of 74 00:03:38,300 --> 00:03:40,600 their biggest and most respected Stars. 75 00:03:41,100 --> 00:03:43,700 She sued them because they didn't want to pay her as much 76 00:03:43,700 --> 00:03:45,100 because of their streaming service. 77 00:03:45,300 --> 00:03:48,000 There is problems with the deal, and they tried to undercut. 78 00:03:48,000 --> 00:03:51,200 Her pay Scarlett, Johansson probably talk to them privately 79 00:03:51,300 --> 00:03:53,800 when they refused, she made it public with a lawsuit. 80 00:03:54,100 --> 00:03:56,800 This was an absolute disgrace for Disney. 81 00:03:57,000 --> 00:03:59,300 It was an embarrassment. It was a black eye on the 82 00:03:59,300 --> 00:04:01,800 company. One thing that Bob Iger prided 83 00:04:01,800 --> 00:04:04,300 himself was his relationship with Talent. 84 00:04:04,300 --> 00:04:07,500 He had a very positive strong relationship with all of their 85 00:04:07,500 --> 00:04:10,900 cast members all of their Stars. He never experienced something 86 00:04:10,900 --> 00:04:14,200 like this one of their biggest stars ever someone that they've 87 00:04:14,200 --> 00:04:17,500 worked with for literally decades is suing them openly 88 00:04:17,500 --> 00:04:21,200 because of a dispute over a payment contract that was a 89 00:04:21,200 --> 00:04:24,700 black guy and this happened under Che Peck and most likely 90 00:04:24,700 --> 00:04:27,000 could have been resolved under Che Peck. 91 00:04:27,100 --> 00:04:29,700 But instead of resolving this problem quietly outside of the 92 00:04:29,900 --> 00:04:32,900 public eye, it became a huge public Fiasco and Scarlett 93 00:04:32,900 --> 00:04:36,100 Johansson ended up settling the case with Disney, for likely the 94 00:04:36,108 --> 00:04:38,800 exact same amount that she was originally supposed to be paid. 95 00:04:38,800 --> 00:04:41,000 So Disney really had nothing to gain from this. 96 00:04:41,000 --> 00:04:43,300 All they could really do is hurt their own image. 97 00:04:43,300 --> 00:04:45,700 They made this look like a big bad company. 98 00:04:45,700 --> 00:04:49,900 This huge corporation was going against one individual trying to 99 00:04:49,900 --> 00:04:52,800 get the paycheck. She agreed to the imagery and 100 00:04:52,800 --> 00:04:55,500 Optics from this case couldn't get possibly worse. 101 00:04:55,500 --> 00:04:59,100 This is a foolish unforced error by Bob capek problem. 102 00:04:59,100 --> 00:05:02,300 Number two, There's another massive unforced error by Bob 103 00:05:02,300 --> 00:05:04,600 jpg. Not only did he decide to go 104 00:05:04,600 --> 00:05:08,000 into the Mucky world of politics where everyone gets some mud on 105 00:05:08,000 --> 00:05:10,000 them? Everyone gets a little dirty but 106 00:05:10,000 --> 00:05:11,600 he did it in the most strategically. 107 00:05:11,600 --> 00:05:15,300 Poor way possible picking a fight against possibly the most 108 00:05:15,300 --> 00:05:19,200 popular governor in the country. Rhonda, Santa's, who just won 109 00:05:19,200 --> 00:05:23,500 re-election in Florida by a 20 percentage Point margin. 110 00:05:23,600 --> 00:05:26,500 This is the governor that Bob capek decided he wanted to pick 111 00:05:26,500 --> 00:05:29,700 a fight with and try to bully and this did not work out. 112 00:05:29,900 --> 00:05:32,500 Well for Disney, this fight was centered around a bill being 113 00:05:32,500 --> 00:05:35,200 passed in Florida called parental rights in education. 114 00:05:35,200 --> 00:05:37,600 This bill prohibited classroom instruction on sexual 115 00:05:37,600 --> 00:05:40,400 orientation and gender identity in kindergarten through third 116 00:05:40,400 --> 00:05:43,200 grade. Bob capek, Not only was opposed 117 00:05:43,200 --> 00:05:46,700 to this bill and a Critic of it, but he was incredibly outspoken, 118 00:05:46,900 --> 00:05:49,300 going. As far as to say publicly that 119 00:05:49,300 --> 00:05:53,700 the entire goal as a company. As Disney was getting this bill 120 00:05:53,700 --> 00:05:57,400 quote, repelled by A legislature or struck down in the courts. 121 00:05:57,500 --> 00:06:00,500 Now even if you oppose, the bill politically you Admit that this 122 00:06:00,500 --> 00:06:02,300 was a strategic mistake from Disney. 123 00:06:02,400 --> 00:06:05,800 Ron descent is use this as part of his re-election campaign 124 00:06:05,900 --> 00:06:08,000 saying that the residents in Florida are not going to be 125 00:06:08,000 --> 00:06:11,700 governed by Rich Executives in California like Bob capek and 126 00:06:11,700 --> 00:06:15,100 they're not going to be bullied by big companies like Disney it 127 00:06:15,100 --> 00:06:18,900 position, Rhonda Santa's as a defender of the people against 128 00:06:18,900 --> 00:06:20,900 corporate, power and Rich Executives. 129 00:06:21,000 --> 00:06:24,000 This was a huge talking point from Republicans across the 130 00:06:24,000 --> 00:06:26,300 board. Rhonda Santa's benefited from 131 00:06:26,300 --> 00:06:28,300 these attacks he wasn't hurt by them. 132 00:06:28,400 --> 00:06:30,900 He benefited from them. And on the other side, it's very 133 00:06:30,900 --> 00:06:33,700 difficult to argue that Disney benefited from this at all. 134 00:06:33,700 --> 00:06:36,400 Not only did they lose the political fight, but they also 135 00:06:36,400 --> 00:06:38,700 alienated a large portion of Their audience. 136 00:06:39,000 --> 00:06:42,900 A lot of Disney customers are conservative and do support that 137 00:06:42,900 --> 00:06:45,100 bill. So, they put themselves at odds 138 00:06:45,100 --> 00:06:48,100 with a large portion of their customer base and their 139 00:06:48,100 --> 00:06:49,900 shareholder base. They also had another 140 00:06:49,900 --> 00:06:52,900 consequence, which is a retaliation from Florida by 141 00:06:52,900 --> 00:06:55,700 stripping, Disney of its independent special district. 142 00:06:55,700 --> 00:06:58,500 This is a very unique benefit that Disney had for decades and 143 00:06:58,500 --> 00:07:00,900 now it's been removed and Ron Auntie has warned that if any 144 00:07:00,900 --> 00:07:04,800 company like Disney uses quote, its economic might to attack the 145 00:07:04,800 --> 00:07:07,700 parents of my state that he would view it as a provocation 146 00:07:07,800 --> 00:07:10,100 and fight back. So just to revisit so far, this 147 00:07:10,100 --> 00:07:13,000 is the beginning of Bob capex, tenure one, he offended. 148 00:07:13,000 --> 00:07:15,300 One of his talent members putting a black eye on Disney 149 00:07:15,300 --> 00:07:18,100 with an embarrassing lawsuit from Scarlett Johansson and the 150 00:07:18,108 --> 00:07:20,300 to we goes to war with one of the most popular governors in 151 00:07:20,300 --> 00:07:23,500 the country, in an attempt to alter and dictate the local laws 152 00:07:23,500 --> 00:07:25,500 of a state that he's not even a member of. 153 00:07:25,500 --> 00:07:28,400 But that's not where this stops. We have problem 3 now the third 154 00:07:28,400 --> 00:07:31,500 problem with Bob jpeg is Dated to the content that Disney has 155 00:07:31,500 --> 00:07:33,900 been creating. I know that Bob capek is not the 156 00:07:33,900 --> 00:07:36,300 creator of the content. He's not the one that has the 157 00:07:36,300 --> 00:07:39,800 direct control, but he does have Direction over what the content 158 00:07:39,800 --> 00:07:41,500 should be. And the type of risks being 159 00:07:41,500 --> 00:07:45,300 taken and over the past couple of years under Bob capex Helm 160 00:07:45,600 --> 00:07:48,000 Disney has not been taking a lot of risks. 161 00:07:48,000 --> 00:07:51,000 Their content has become so incredibly safe, that sometimes 162 00:07:51,000 --> 00:07:54,600 it's now just becoming bad. Pinocchio is a prime example of 163 00:07:54,600 --> 00:07:58,300 this, the live-action remake from the original Pinocchio is 164 00:07:58,300 --> 00:08:01,300 almost worse than every way. The animation was good but 165 00:08:01,300 --> 00:08:03,300 almost everything with the storytelling was worse and 166 00:08:03,300 --> 00:08:06,200 that's apparent in both the critic reviews and the audience 167 00:08:06,200 --> 00:08:09,500 reviews, 28 percent on the Tomato Meter is bad enough but 168 00:08:09,500 --> 00:08:11,500 those are the professional critics sometimes they get it 169 00:08:11,500 --> 00:08:13,900 wrong. When the audience has a similar 170 00:08:13,900 --> 00:08:18,600 score 29%, when both critics and the audience are both 171 00:08:18,600 --> 00:08:21,800 unanimously saying these shows are not good. 172 00:08:22,000 --> 00:08:24,800 That should be a clear message that Disney's content is not 173 00:08:24,800 --> 00:08:27,500 going in the right direction and this issue lends itself to a 174 00:08:27,508 --> 00:08:29,700 bigger issue, Disney straying away. 175 00:08:29,800 --> 00:08:33,299 Away from its origins in storytelling and the CEO needs 176 00:08:33,299 --> 00:08:35,900 to get this back on track in this Wall Street Journal 177 00:08:35,900 --> 00:08:39,000 interview just a couple months ago, the interviewer aptly 178 00:08:39,000 --> 00:08:41,000 points out. This problem with Disney's 179 00:08:41,000 --> 00:08:44,400 content know, your people love to get out there and say 180 00:08:44,400 --> 00:08:48,100 Disney's to woke Disney's become to correct politically correct. 181 00:08:48,200 --> 00:08:50,800 You know, are they right to David Point? 182 00:08:51,200 --> 00:08:55,000 What's your take on that those criticisms and reaching that 183 00:08:55,000 --> 00:08:58,500 wide span of people that interviewer asked a very good 184 00:08:58,500 --> 00:09:01,000 and specific question? The CEO of Disney. 185 00:09:01,200 --> 00:09:04,200 Many people are criticizing. The Disney has become too woke 186 00:09:04,300 --> 00:09:06,600 and that's making its way into the content. 187 00:09:06,800 --> 00:09:10,300 That's a direct question and listen to the way Bob capek 188 00:09:10,300 --> 00:09:12,500 answers it. I think, the more complex 189 00:09:12,600 --> 00:09:16,200 something is the more you have to really drill down into the 190 00:09:16,200 --> 00:09:21,000 basics and we want our content to reflect the rich diverse 191 00:09:21,000 --> 00:09:25,400 world that we live in. And again, I guess that's 192 00:09:25,400 --> 00:09:29,700 another way of saying catering to your to your audience but the 193 00:09:29,800 --> 00:09:33,200 It is a rich diverse place and we want our content to reflect 194 00:09:33,200 --> 00:09:36,100 that. And we're so blessed to have the 195 00:09:36,100 --> 00:09:39,300 greatest content creators and they see it. 196 00:09:39,400 --> 00:09:42,800 Similarly, but I think that's good from a commercial 197 00:09:42,800 --> 00:09:47,600 standpoint as well because then you appeal to the largest 198 00:09:47,900 --> 00:09:51,400 possible audience and certainly, you know, we live in a world now 199 00:09:51,400 --> 00:09:56,100 where everything seems to, you know, be polarized, but I think 200 00:09:56,100 --> 00:09:59,400 we want Disney to stand for bringing people together. 201 00:09:59,400 --> 00:10:02,000 I always A, when someone walks down Main Street and you look at 202 00:10:02,000 --> 00:10:05,600 the castle, you're not thinking, you know, I'm on one side of the 203 00:10:05,600 --> 00:10:08,800 political Spectrum or the other, you have a shared belief and all 204 00:10:08,800 --> 00:10:13,200 the wonderful aspects of what Disney is and we want to use 205 00:10:13,200 --> 00:10:15,900 Disney to bring people together. And I think we'll do that by 206 00:10:16,400 --> 00:10:18,400 diverse stories and diverse characters. 207 00:10:18,500 --> 00:10:22,100 What is this nothingness answer? He didn't say anything. 208 00:10:22,100 --> 00:10:25,600 He just threw in the keyword diverse and diversity, six 209 00:10:25,600 --> 00:10:29,500 different times and these type of mumbling jumbling nonsense. 210 00:10:29,500 --> 00:10:31,900 And Answers were routine with popche APEC. 211 00:10:32,000 --> 00:10:35,300 It was difficult to get any type of straight answer from him at 212 00:10:35,300 --> 00:10:38,000 all. He was asked specifically about 213 00:10:38,000 --> 00:10:42,300 a specific type of content, woke content making itself into 214 00:10:42,300 --> 00:10:45,800 Disney repeatedly, and people complaining about that. 215 00:10:45,900 --> 00:10:48,300 And his answer is to throw out some key buzzwords like 216 00:10:48,300 --> 00:10:51,200 diversity, five times, and Mumble about bringing people 217 00:10:51,200 --> 00:10:54,500 together, this interviewer goes on and even pushes back further 218 00:10:54,500 --> 00:10:58,700 on this content trying to get a straight answer from Bob capek, 219 00:10:58,900 --> 00:11:01,300 do they like the Type of content that's coming out. 220 00:11:01,300 --> 00:11:04,600 And he specifically asks about Pinocchio, the new Pinocchio, 221 00:11:04,600 --> 00:11:07,900 verse the old Pinocchio, you mentioned Pinocchio, if I may be 222 00:11:07,900 --> 00:11:12,400 wrong, but I think the new Pinocchio, he doesn't change in 223 00:11:12,400 --> 00:11:13,900 the end. He just accepts himself for who 224 00:11:13,900 --> 00:11:15,300 he is. So the ending has changed a 225 00:11:15,308 --> 00:11:18,000 little bit with sort of contemporary mores and that's 226 00:11:18,000 --> 00:11:19,700 correct. The new Pinocchio doesn't really 227 00:11:19,700 --> 00:11:21,800 change at all. He just accepts himself the way 228 00:11:21,800 --> 00:11:24,600 he is, which is a dramatic difference between the old 229 00:11:24,600 --> 00:11:26,800 Pinocchio. The old Pinocchio's held up as a 230 00:11:26,800 --> 00:11:30,300 masterpiece specifically because of the morals behind the 3, it 231 00:11:30,300 --> 00:11:33,600 was about your conscience, being your guide, following your 232 00:11:33,600 --> 00:11:37,000 conscience learning, not to lie, learning not to go with 233 00:11:37,000 --> 00:11:40,100 untrustworthy individuals and Pinocchio, had a learn these 234 00:11:40,100 --> 00:11:43,100 lessons to become a real boy. This story taught us that if we 235 00:11:43,108 --> 00:11:46,200 grow up and we go to Pleasure Island and succumb to every 236 00:11:46,200 --> 00:11:49,100 worldly Temptation, will eventually become a donkey and 237 00:11:49,100 --> 00:11:51,900 it's not a fun path to go down with the new Pinocchio. 238 00:11:51,900 --> 00:11:55,000 Disney's new version of it. There is no such stories taught, 239 00:11:55,100 --> 00:11:58,600 no overriding morals to it. There was just things happening 240 00:11:58,600 --> 00:12:02,100 to Pinocchio and Didn't really have control over any of it. 241 00:12:02,200 --> 00:12:04,500 And as this interviewer points out, the new Pinocchio, 242 00:12:04,500 --> 00:12:06,800 basically learned. Nothing he just accepted who he 243 00:12:06,800 --> 00:12:09,000 was, there's no really overarching story. 244 00:12:09,000 --> 00:12:11,300 No cause and effect. The new one was just a more safe 245 00:12:11,300 --> 00:12:14,700 less compelling less interesting rehash of the old original and 246 00:12:14,700 --> 00:12:17,900 again, this criticism is not unfounded audiences are not 247 00:12:17,900 --> 00:12:20,000 liking this. Even the critics are not liking 248 00:12:20,000 --> 00:12:21,600 this. The critics are saying that it's 249 00:12:21,600 --> 00:12:25,100 losing the point of the original film letting your conscience. 250 00:12:25,100 --> 00:12:28,200 Be your guide, audiences are saying, just watch the original 251 00:12:28,200 --> 00:12:30,700 Pinocchio. Instead now I Don't know exactly 252 00:12:30,700 --> 00:12:32,200 how much influence or control Bob. 253 00:12:32,200 --> 00:12:35,500 Capek has had and the creative Endeavors, but he is the CEO of 254 00:12:35,500 --> 00:12:38,100 the company. He can, if he wants have direct 255 00:12:38,100 --> 00:12:41,000 influence over the content of the company, and the type of 256 00:12:41,000 --> 00:12:43,300 risks are taking. And in this part, Disney has 257 00:12:43,300 --> 00:12:45,200 been underwhelming further along in this interview. 258 00:12:45,200 --> 00:12:49,100 Bob capek basically reveals that he doesn't understand Disney as 259 00:12:49,100 --> 00:12:51,100 a company. He really doesn't understand the 260 00:12:51,100 --> 00:12:54,400 content portion of it at all, which is basically all of 261 00:12:54,400 --> 00:12:56,700 Disney. I always say that one. 262 00:12:57,800 --> 00:13:02,700 Our fans and our audiences, put their kids to bed at night after 263 00:13:02,700 --> 00:13:05,900 watching Pinocchio or Dumbo or Little Mermaid. 264 00:13:06,800 --> 00:13:11,000 They're probably not going to tune into another animated 265 00:13:11,300 --> 00:13:13,600 movie, they want something for them. 266 00:13:13,700 --> 00:13:16,400 Yes, you heard that right? The CEO of Disney, the most 267 00:13:16,400 --> 00:13:19,900 creative company on Earth, views, animated content, as not 268 00:13:19,900 --> 00:13:23,300 a medium of entertainment, both enjoyed by adults and children, 269 00:13:23,600 --> 00:13:25,600 but just something to put the children to bed. 270 00:13:25,700 --> 00:13:27,400 Throw on Pinocchio, throw on Dumbo. 271 00:13:27,700 --> 00:13:30,600 Those are just children chose. And after they go to bed, then 272 00:13:30,600 --> 00:13:33,200 the adults can turn on their non animated series. 273 00:13:33,300 --> 00:13:35,700 The guy doesn't even understand the company that he worked for, 274 00:13:35,700 --> 00:13:38,100 he didn't even understand, animated content. 275 00:13:38,200 --> 00:13:40,900 And this is a slap in the face to his own employees animators 276 00:13:40,900 --> 00:13:43,900 of the company, working on an animated content to suggest that 277 00:13:43,900 --> 00:13:45,600 the only people driving joy out of it. 278 00:13:45,800 --> 00:13:49,600 Our children problem number four and possibly, the biggest 279 00:13:49,600 --> 00:13:52,000 problem, bad operating performance. 280 00:13:52,000 --> 00:13:54,700 And keep in mind, this was the thing that popped a peck was 281 00:13:54,700 --> 00:13:58,400 supposed to be uniquely good at. He was the ater of the parks 282 00:13:58,400 --> 00:14:00,700 business. He was good at growing revenues 283 00:14:00,800 --> 00:14:03,300 growing income on a consistent basis. 284 00:14:03,600 --> 00:14:07,900 Having good operations, that was what he was uniquely suited for. 285 00:14:08,200 --> 00:14:10,100 So you could give excuses for the other thing. 286 00:14:10,100 --> 00:14:12,100 All right, maybe he's not good at dealing with Talent. 287 00:14:12,200 --> 00:14:14,600 So let's go ahead and give him a pass on the whole Scarlett 288 00:14:14,600 --> 00:14:17,900 Johansson suing, Disney thing. All right, maybe he's not good 289 00:14:17,900 --> 00:14:20,200 at politics. He lost the battle against de 290 00:14:20,200 --> 00:14:22,800 santis that didn't go. Well, that didn't turn out well 291 00:14:22,800 --> 00:14:25,400 for Disney, but we can give him a pass on that because he's not 292 00:14:25,400 --> 00:14:29,000 a politician, and maybe we can even get My pass on, not really 293 00:14:29,000 --> 00:14:32,100 understanding the content because after all Bob, capek 294 00:14:32,100 --> 00:14:34,800 isn't the creative type. You could give them a pass on 295 00:14:34,800 --> 00:14:37,400 everything else. But the one thing this guy is 296 00:14:37,400 --> 00:14:41,300 supposed to be good at is operations, churning out profits 297 00:14:41,300 --> 00:14:44,300 from this large organization. So let's go ahead and see how 298 00:14:44,300 --> 00:14:47,300 the operations of the company. The actual numbers look over the 299 00:14:47,300 --> 00:14:49,500 past two years. This is about when Bob capek 300 00:14:49,500 --> 00:14:53,100 took over for Disney. Now, we can't blame this large 301 00:14:53,100 --> 00:14:56,100 loss right here, for these two quarters on Bob capek. 302 00:14:56,100 --> 00:14:57,500 That was because of the covid-19. 303 00:14:57,500 --> 00:15:00,000 Pandemic, the entire park operation was shut down for 304 00:15:00,000 --> 00:15:02,800 about a year, so we can give them a pass on that. 305 00:15:02,900 --> 00:15:05,900 There's nothing you can do about that, but the last seven or 306 00:15:05,900 --> 00:15:09,700 eight quarters, Disney has been open fully operational. 307 00:15:09,800 --> 00:15:14,000 The parks are open business as usual and the earnings have been 308 00:15:14,000 --> 00:15:16,500 abysmal. Quarter after quarter a 309 00:15:16,500 --> 00:15:19,500 continual disappointment, especially now that investors 310 00:15:19,500 --> 00:15:22,500 are trying to focus on profits for the corporation, Disney's 311 00:15:22,500 --> 00:15:24,200 not producing any profits we can. 312 00:15:24,200 --> 00:15:26,400 Look at the free cash flows of the company and over the past 313 00:15:26,400 --> 00:15:28,800 couple of years it's been Really pathetic. 314 00:15:28,900 --> 00:15:33,000 Last quarter was 187 million dollars in free cash flows. 315 00:15:33,200 --> 00:15:35,700 When we factor in stock based compensation act, based 316 00:15:35,700 --> 00:15:38,200 composite actually higher than their free cash flows. 317 00:15:38,500 --> 00:15:41,300 For the first time in a long time for Disney, this is no 318 00:15:41,300 --> 00:15:43,700 longer profitable. Company costs are going up. 319 00:15:43,700 --> 00:15:47,500 Cash flows are going down and Bob capek, the great operator. 320 00:15:47,500 --> 00:15:50,100 The person that supposed to be good at turning out profits, the 321 00:15:50,100 --> 00:15:52,800 seeing a continual decline in cash flows. 322 00:15:52,900 --> 00:15:54,300 How much of this you can blame on Bob? 323 00:15:54,300 --> 00:15:58,100 Capek is debatable, the company is going through a Transition 324 00:15:58,200 --> 00:16:01,100 and I don't think he deserves 100% of the blame but I don't 325 00:16:01,100 --> 00:16:03,000 think that he's blameless in this situation. 326 00:16:03,000 --> 00:16:06,000 Bob capek has done a lot of changes operationally to the 327 00:16:06,000 --> 00:16:09,700 company and so far every report and every piece of data we can 328 00:16:09,700 --> 00:16:13,700 look at says, that most of them are negative, Disney's New World 329 00:16:13,700 --> 00:16:16,200 Order leads to confusion and bruised egos. 330 00:16:16,500 --> 00:16:19,800 What Bob capek did immediately when taking over was 331 00:16:19,800 --> 00:16:22,800 restructuring the company? And so far this restructuring 332 00:16:22,800 --> 00:16:24,600 looks like it has been a disaster. 333 00:16:24,700 --> 00:16:27,400 Disney's reorganization of its media and entertainment. 334 00:16:27,500 --> 00:16:30,400 Business into three, distinct content creation, groups, 335 00:16:30,600 --> 00:16:33,400 Studios general, entertainment, and sports has caused 336 00:16:33,400 --> 00:16:36,100 consternation for some senior managers, as well, as those 337 00:16:36,100 --> 00:16:39,400 doing business with the company. The reorganization was aimed at 338 00:16:39,400 --> 00:16:42,200 better positioning Disney for a future that would be determined 339 00:16:42,200 --> 00:16:46,200 by its success in streaming. The goal at least on paper was 340 00:16:46,200 --> 00:16:49,200 to have people work, more harmoniously across mediums, 341 00:16:49,200 --> 00:16:51,400 from television to film to Disney. 342 00:16:51,400 --> 00:16:53,300 Plus, the results have left. People. 343 00:16:53,300 --> 00:16:56,400 Deeply confused about how to navigate the New Order, the 344 00:16:56,400 --> 00:16:59,200 restructuring has made A lot of their employees upset and it's 345 00:16:59,200 --> 00:17:00,900 actually made Executives in the company. 346 00:17:00,908 --> 00:17:04,800 Try to keep themselves a little bit separated from what Bob 347 00:17:04,800 --> 00:17:07,599 capek has been doing quote. Everyone is becoming more and 348 00:17:07,599 --> 00:17:10,500 more differential tugce Peck things are radically different 349 00:17:10,500 --> 00:17:14,000 than they were six months ago and this Insider who has an 350 00:17:14,000 --> 00:17:16,700 executive said that they're trying to become more insulated 351 00:17:16,700 --> 00:17:19,099 from the upheaval from the creative teams. 352 00:17:19,099 --> 00:17:21,599 And again, you can try to make excuses for everything else. 353 00:17:21,599 --> 00:17:24,300 But this was the thing that Bob capek was supposed to be good at 354 00:17:24,300 --> 00:17:27,400 the operations. After this most recent earnings, 355 00:17:27,400 --> 00:17:32,000 Report Disney shares drop like 15 percent in a single day 356 00:17:32,000 --> 00:17:34,200 because of how disappointing the earnings were. 357 00:17:34,200 --> 00:17:36,200 It was creating around like a penny stock. 358 00:17:36,200 --> 00:17:39,100 And this is Disney. This is one of the best 359 00:17:39,100 --> 00:17:42,700 properties and Assets in the globe and its trading like a 360 00:17:42,700 --> 00:17:44,600 penny stock. And that's how we get to where 361 00:17:44,600 --> 00:17:47,400 we are now. Bob capek was fired. 362 00:17:47,600 --> 00:17:51,500 Bob Iger is back. Both of this to me was shocking 363 00:17:51,500 --> 00:17:53,700 and I think it's shocking to most everyone that's been 364 00:17:53,700 --> 00:17:56,100 following this company. Cbc's David Faber. 365 00:17:56,100 --> 00:17:58,900 What his thoughts are? Sauron this because he told you 366 00:17:58,900 --> 00:18:01,000 no way. Did you always think that there 367 00:18:01,000 --> 00:18:05,500 was a way way back for four? I don't know what he's not 368 00:18:05,500 --> 00:18:06,700 necessarily your friend but you know him. 369 00:18:06,700 --> 00:18:08,700 Well did you think there was a way back? 370 00:18:08,700 --> 00:18:10,800 David it? No. 371 00:18:10,800 --> 00:18:14,200 I it seemed highly unlikely certainly you'd have to imagine 372 00:18:14,200 --> 00:18:16,500 of course this scenario like the one that has played out and we 373 00:18:16,500 --> 00:18:20,200 can talk a bit more about that but even with the idea that his 374 00:18:20,200 --> 00:18:24,300 successor, mr. Champak would not succeed. 375 00:18:24,300 --> 00:18:27,300 So to speak the idea that that Iger would then come back. 376 00:18:27,500 --> 00:18:34,000 I think even as little as a few weeks ago, Joe, I think would 377 00:18:34,000 --> 00:18:37,600 have been hard to imagine. I agree 100%. 378 00:18:37,600 --> 00:18:38,700 In fact, we just heard this year. 379 00:18:38,700 --> 00:18:41,500 The Bob capex signed another three-year extension to a CEO 380 00:18:41,500 --> 00:18:43,700 role, so this is a complete shock. 381 00:18:43,700 --> 00:18:47,000 I did not see this coming. I didn't see Bob jpg being fired 382 00:18:47,000 --> 00:18:49,600 right now and I didn't see Bob Iger coming back. 383 00:18:49,700 --> 00:18:52,700 But the way these things work in most cases is you have the CEO, 384 00:18:52,700 --> 00:18:55,000 the supposed to guide the company, the right direction, 385 00:18:55,200 --> 00:18:57,100 but the CEO works for the shareholders. 386 00:18:57,400 --> 00:18:59,400 And the board protects the shareholders. 387 00:18:59,700 --> 00:19:02,800 In this case, the board, obviously, felt along with many 388 00:19:02,800 --> 00:19:06,000 other shareholders and many Disney customers, that the CEO 389 00:19:06,000 --> 00:19:08,100 is not doing a good job running the company. 390 00:19:08,300 --> 00:19:11,400 So Friday evening, they contacted Bob Iger and said, 391 00:19:11,400 --> 00:19:12,900 hey, do you want to come back in? 392 00:19:12,900 --> 00:19:14,900 What do you like to replace? Bob capek. 393 00:19:14,900 --> 00:19:18,200 We don't like what he's doing. Once they confirmed that Bob 394 00:19:18,200 --> 00:19:20,300 Iger was willing to step back into the role. 395 00:19:20,600 --> 00:19:24,400 They fired Bob jpg, and they fired him Sunday evening. 396 00:19:24,500 --> 00:19:27,300 So he only knew Sunday evening that he was losing his job. 397 00:19:27,400 --> 00:19:30,700 Disney no longer the CEO of the company, and I can't imagine it 398 00:19:30,700 --> 00:19:33,300 feels good to have a surprise firing from being the CEO of 399 00:19:33,300 --> 00:19:36,700 Disney on a Sunday evening. I don't know how Bob jpg feels 400 00:19:36,700 --> 00:19:39,100 right now, but I don't envy that but either way, it was something 401 00:19:39,100 --> 00:19:43,100 that needed to be done, but this was a board Joe that felt like 402 00:19:43,100 --> 00:19:45,100 it didn't have a lot of choices at this point, is my 403 00:19:45,100 --> 00:19:47,000 understanding, you know, after speaking to a number of people 404 00:19:47,000 --> 00:19:49,500 close to the situation, this came together pretty quickly, 405 00:19:49,800 --> 00:19:53,200 but the board did have concerns for some period of time. 406 00:19:53,200 --> 00:19:56,900 Those concerns were heightened. Of course, after this most 407 00:19:56,900 --> 00:20:00,200 recent, Earnings report. It was not a well-received 408 00:20:00,200 --> 00:20:02,400 report. The conference call was not 409 00:20:02,400 --> 00:20:05,300 well, thought of the losses associated with 410 00:20:05,300 --> 00:20:07,700 direct-to-consumer. Obviously having grown, even 411 00:20:07,700 --> 00:20:10,300 though the promise to be profitable by fiscal year, 412 00:20:10,300 --> 00:20:14,300 twenty four Remains the board got more and more concerned that 413 00:20:14,300 --> 00:20:18,000 board led by Miss Arnold made it clear to mr. 414 00:20:18,000 --> 00:20:21,100 Chae, Peck last night that he was out. 415 00:20:21,600 --> 00:20:25,300 My understanding is the only approach tiger on Friday Friday 416 00:20:25,300 --> 00:20:30,100 night and sealed. Able to bring him back as of 417 00:20:30,700 --> 00:20:34,200 last night, Friday, the board. Contacted Bob Iger asked him if 418 00:20:34,208 --> 00:20:36,700 he would do the job, he said he would and then Sunday evening, 419 00:20:36,700 --> 00:20:40,500 they fired, Bob, capek, and Bob Iger right now is tentatively 420 00:20:40,500 --> 00:20:42,100 going to be working for two years. 421 00:20:42,300 --> 00:20:44,200 So here we are with Bob Che pick out Bob. 422 00:20:44,200 --> 00:20:48,700 Iger back in the stock is up 7 to 8% and on this subject I want 423 00:20:48,700 --> 00:20:51,400 to highlight one clip from 12 days ago. 424 00:20:51,800 --> 00:20:55,500 This interview here was from 12 days ago right after Disney's 425 00:20:55,500 --> 00:20:58,900 terrible earnings and I Highlight this and I think 426 00:20:58,900 --> 00:21:02,200 daringly. So, as possibly an example of 427 00:21:02,200 --> 00:21:06,100 Jim Cramer being right, can I propose that is that safe to 428 00:21:06,100 --> 00:21:07,800 propose that he was correct on something? 429 00:21:08,000 --> 00:21:10,700 Jim Cramer was asked what needs to happen with Disney. 430 00:21:10,700 --> 00:21:16,200 And again, this was 12 days ago, Disney, if they have ESPN, if we 431 00:21:16,200 --> 00:21:19,800 were on ESPN, we would say he's got to be fired. 432 00:21:21,000 --> 00:21:24,100 That's pretty cut and dry. You're firing. 433 00:21:24,100 --> 00:21:27,200 Bob jpac, is that we were saying absolute absolute. 434 00:21:28,200 --> 00:21:32,900 Absolute because I thought that he had a couple of years, the 435 00:21:32,900 --> 00:21:35,300 teams going downhill. I mean that was incredible. 436 00:21:35,300 --> 00:21:38,300 Last night was really team has been going downhill. 437 00:21:38,300 --> 00:21:41,600 I had Faith semi faith and Frank Reich in the Colts and I still 438 00:21:41,600 --> 00:21:43,700 do it with Frank's, you know, winning record. 439 00:21:44,100 --> 00:21:47,000 But there is just a doubt, no doubt that he did. 440 00:21:47,000 --> 00:21:48,800 He has to go. I mean, that was just 441 00:21:49,100 --> 00:21:51,600 unconscionable. There's no doubt that Bob jpeg 442 00:21:51,600 --> 00:21:53,700 has to go. Absolutely, no doubt. 443 00:21:53,700 --> 00:21:57,000 And he was saying this a week ago and the quartered self the 444 00:21:57,000 --> 00:21:59,700 way he handled it. I mean, made it sound like he 445 00:21:59,700 --> 00:22:06,300 was just a 4-star quarter delusional and I believed and I 446 00:22:06,308 --> 00:22:10,300 was wrong. I was like, let me just go back 447 00:22:10,300 --> 00:22:12,600 for a second. Do you think that it's shape? 448 00:22:12,600 --> 00:22:14,700 Heck the man or do you think it is? 449 00:22:15,100 --> 00:22:17,900 The I think he's a cyclical and secular headwinds that are 450 00:22:17,900 --> 00:22:19,800 facing. There's no, no way. 451 00:22:19,800 --> 00:22:21,300 You think? Yes, like a bad team. 452 00:22:21,400 --> 00:22:23,600 It's the same team. What happened here? 453 00:22:23,600 --> 00:22:27,300 Is that even the the stuff that he was good at the stuff that I, 454 00:22:27,300 --> 00:22:29,400 that I know, it's a little harder to control theme park, 455 00:22:30,000 --> 00:22:34,400 but the the losses Here, Andrew, we're just mind-boggling. 456 00:22:34,400 --> 00:22:37,700 I mean, when you're going over the quarter, it's stunning. 457 00:22:38,900 --> 00:22:41,900 And that's why I say, if it worked, if this was the NFL 458 00:22:41,900 --> 00:22:44,900 where they have tremendous, tremendous accountability, and 459 00:22:44,900 --> 00:22:47,900 we were watching their program of Sunday morning. 460 00:22:47,900 --> 00:22:51,700 We would everyone together would say he should be fired. 461 00:22:51,700 --> 00:22:53,600 There's got to be something really wrong with the world. 462 00:22:53,600 --> 00:22:55,900 When even Jim Cramer's, getting such a correct call. 463 00:22:56,000 --> 00:22:58,600 Now with all of that that brings us back to where we are now 464 00:22:58,900 --> 00:23:01,700 again, Disney's one of my larger Holdings in my portfolio. 465 00:23:01,700 --> 00:23:04,200 It's a company that I think has great assets. 466 00:23:04,400 --> 00:23:06,900 That's the biggest reason that I've bought into this company. 467 00:23:07,200 --> 00:23:09,400 I think that all of their Teas and their intellectual 468 00:23:09,400 --> 00:23:12,500 properties backed up and supported by their Parks, plus 469 00:23:12,500 --> 00:23:15,400 the asset of ESPN. I think all of that is 470 00:23:15,400 --> 00:23:19,700 incredibly incredibly valuable with ESPN, with Hulu, with 471 00:23:19,700 --> 00:23:22,000 Disney plus, with all of their various Parks. 472 00:23:22,200 --> 00:23:25,500 I think this company just has great asset after great asset, 473 00:23:25,700 --> 00:23:28,600 and a company with this, many good assets, should be using 474 00:23:28,600 --> 00:23:31,400 them to generate profits. That's what companies do that 475 00:23:31,400 --> 00:23:32,600 have. Amazing assets. 476 00:23:32,900 --> 00:23:37,100 So this is a solvable problem, in my opinion, Disney should be 477 00:23:37,100 --> 00:23:39,700 a highly profitable. Penny right now, I don't think 478 00:23:39,700 --> 00:23:42,200 the current economics of the company reflect its true 479 00:23:42,200 --> 00:23:45,600 potential and I do think that it will take time, this isn't going 480 00:23:45,600 --> 00:23:48,900 to be an instant fix by Bob. Iger, it's not going to be an 481 00:23:48,900 --> 00:23:51,100 overnight thing. I think it will take a number of 482 00:23:51,100 --> 00:23:54,700 quarters to correct this issue, but I expect a better outcome 483 00:23:54,700 --> 00:23:57,200 with him at the helm and it will give Disney. 484 00:23:57,200 --> 00:24:00,200 And the board of directors, time to find a more suitable 485 00:24:00,200 --> 00:24:04,100 replacement than Bob capek. So, in my opinion, I don't see 486 00:24:04,100 --> 00:24:07,500 any downside with this move. I don't see any potential 487 00:24:07,500 --> 00:24:09,800 problems. I think this was a great move by 488 00:24:09,800 --> 00:24:12,000 the board of directors to protect the shareholder. 489 00:24:12,300 --> 00:24:14,800 At the end of the day, that is who they serve. 490 00:24:14,900 --> 00:24:17,400 They serve the shareholder of the company and whether or not 491 00:24:17,400 --> 00:24:20,400 Che Peck was a great guy or not. He wasn't doing a good enough 492 00:24:20,400 --> 00:24:22,700 job in Disney's much bigger than he is. 493 00:24:22,900 --> 00:24:25,100 So, he's got to go. We have someone in there that 494 00:24:25,100 --> 00:24:27,300 has proven to do the job for a long period of time. 495 00:24:27,500 --> 00:24:28,900 You can do it for another two years. 496 00:24:29,100 --> 00:24:31,300 So, as of right now, I'm going to continue to still hold this 497 00:24:31,300 --> 00:24:33,000 company. Now moving on, we have the news 498 00:24:33,000 --> 00:24:35,300 that Elizabeth Holmes was finally sentenced. 499 00:24:35,300 --> 00:24:38,100 She was sentenced to eleven and a quarter years in prison. 500 00:24:38,500 --> 00:24:41,600 Defrauding investors. And a lot of people argue about 501 00:24:41,600 --> 00:24:43,800 whether or not this sentence is appropriate. 502 00:24:43,800 --> 00:24:45,400 So let me share my quick thoughts on it. 503 00:24:45,600 --> 00:24:47,500 First of all, I'm happy to see that. 504 00:24:47,500 --> 00:24:49,700 It's at least not a slap on the wrist. 505 00:24:49,800 --> 00:24:53,200 If she got four years, five years for this type of thing, I 506 00:24:53,200 --> 00:24:56,000 think that would have been a real problem, 11 years as a 507 00:24:56,000 --> 00:24:59,100 federal sentence, which usually don't get cut short too often. 508 00:24:59,400 --> 00:25:02,300 That's a real sentence. She's going behind bars. 509 00:25:02,400 --> 00:25:06,000 For a long amount of time that is a serious punishment. 510 00:25:06,300 --> 00:25:08,000 Is it as bad as it could have been. 511 00:25:08,400 --> 00:25:11,200 Absolutely not a lot of different analysis shows that 512 00:25:11,200 --> 00:25:14,000 many people are sentenced to a lot longer for the same crimes. 513 00:25:14,100 --> 00:25:16,900 So you can argue that Elizabeth Holmes did get off easier than 514 00:25:16,900 --> 00:25:20,400 expected, but I still think that 11 years is better than it could 515 00:25:20,400 --> 00:25:22,200 have been. I think there's a good chance. 516 00:25:22,200 --> 00:25:24,900 It could have been six or seven years if the judge wanted to go 517 00:25:25,200 --> 00:25:27,200 extra lenient. Honor the big problem. 518 00:25:27,200 --> 00:25:30,200 I have overall with this entire case is not really the 519 00:25:30,200 --> 00:25:32,900 sentencing. But the convictions Elizabeth 520 00:25:32,900 --> 00:25:35,800 Holmes was only found guilty on four separate charges. 521 00:25:36,100 --> 00:25:38,300 She was found guilty on three of the nine fraud. 522 00:25:38,500 --> 00:25:40,100 Counts. And one of the two conspiracy 523 00:25:40,100 --> 00:25:43,000 counts and then you look at her partner in crime and her love 524 00:25:43,000 --> 00:25:46,300 interests on eBay Lonnie, who she had literally a romantic 525 00:25:46,300 --> 00:25:48,400 relationship. There is so close together for a 526 00:25:48,408 --> 00:25:50,300 number of years. But in his case, he was 527 00:25:50,300 --> 00:25:53,000 convicted of all 12 counts of fraud. 528 00:25:53,000 --> 00:25:55,500 They convicted Sunny bhawani with everything and Elizabeth 529 00:25:55,500 --> 00:25:58,000 Holmes with only four. So even before we got to 530 00:25:58,008 --> 00:26:00,400 sentencing, I see a huge discrepancy in the amount of 531 00:26:00,400 --> 00:26:03,500 convictions, but if you take that out, I think the sentencing 532 00:26:03,500 --> 00:26:06,300 of 11 years was at least decent. So that's all the news for now. 533 00:26:06,300 --> 00:26:08,200 I hope you enjoyed the episode, I'll have more content. 534 00:26:08,400 --> 00:26:10,200 Out in the future and I'll see you in the next one. 535 00:26:08,400 --> 00:26:10,200 Out in the future and I'll see you in the next one.