Welcome to barrons roundtable where we get behind the headlines and prepare you for the week ahead. I am jack hal in for jack otter. Summer blockbusters breaking box office records. We see a Movie Theater revival, all ask imax ceo richard golf on to get his take on whats driving the industry in a glimpse at some upcoming releases. Then new obesity drugs are showing Health Benefits beyond weight loss. Will look at how the positive trial results are putting pressure on insurers for coverage. Later, a spinoff loophole that could make ordinary investors a quick 1000, yes please. We began with three things investors out of think about right now. The market ended mixed as tech stocks taint. July inflation rose slightly 3. 2 percent but up from the month before. Espn make it a big move in the world of Sports Betting, the company agreed to a 2 billiondollar deal with pain entertainment to create espn. Will look at the odds for stock investors to profit. Tesla cfo is leaving, the cyber truck is coming. What both of those mean for shareholders. On the barrons roundtable. My colleagues ben levisohn, carleton english. Parents mvp andrew berry. Tech stocks got hit this week. Is that profit taking orders or something more going on. That was probably profit taking, theres a little bit concerned of chip companies. There is a chip company that the demand was not what it should be. This is a question of a lot this year end people are taking profit. Jack how much were selling do you think there could be think of nvidia at one point they tripled their money this year. If you look now much more than double their money. They must be frantic, how much were selling would you expect. Probably not a ton. This is august and august had a quiet time in a volatile time in the stock market and there is not much out there right now to try selling one way or the other. The big thing to watch what is going on the bond market when youre having the treasury auctions that are going very well partially because u. S. Budget has gotten so big and they need to issue so much. The yields keep rising and that could be a problem. There could be higher yields. What about the delayed theory that the pain from the rate hikes that we seen in the past is only rolling into the economy, any signs of weakness . Not a ton we see a little bit nothing in the job market, that is the important thing, consumers are under pressure, as long as they have jobs again to keep spending and that will keep the economy going. Jack penn is paying all the cash for disneys espn Sports Betting tiein. It did not get Great Results with the investment in Dave Portnoys barstool sports company. Is anything to think it will be different than espn. No. The headlines came out and use a lot of the great news in the stocks in disney and penn but if you look at the details, who are the two Major Players in Sports Betting. Draftkings and fandual that have 7 and penn has to present. They are paying a lot to try to get in front of the crop of Sports Betting to even get near there when 70 of the market is already taking up. It does not look that good. Jack it sounds like trafficking should not be super worried. The biggest winner is not disney or penn. There is a lot of teasing happening during the pandemic with what was he calling himself, dave portnoy and davey day trader. To sell for half a billion dollars or so. He buys it back this week for a dollar. The only rob, if he sells it he has to split the revenue with penn but he says hes not selling. He is looking pretty good right now. Jack he might get grabbed up with private equity. The cover story in barrons this week is about Sports Betting of a parlay, what is that and what is it mean for investors . A parlay is making multiple bets during games. Is not betting on the outcome but different quarters in different innings. As you do that is like a winner takes all. You dont take credit for it he wanted them right, all of them have to go. This is been a huge profit gainer for Companies Like draftkings and fandual because their socalled margin on the bets is 20 versus 5 . Of course chances of gamblers coming out not that much. Jack if its not good for them its not a good deal for everyone else. The cfo of tesla step down what does that mean for investors. He was a successor to elon musk but the reality of executives have left telsa and they dont care the only person that matters at tesla is elon musk. It is his baby and he is a driving force. As long as he is there investors really dont care. The stock could be down 20 or 25 . Jack lets talk cyber truck, he says is definitely coming before the end of the year. He settled will be teslas best vehicle yet. It still looks like something i wouldve drawn in the fourth grade without the laser gun, what is the chances cyber truck could be a sleeper success. He is betting on it and if you think see the genius he designed it it is his thing in different than any other truck on the market. Electric trucks are not selling that well and remains to see if it will really be a hit. Jack you dont think its going to sell . Im hearing skepticism. Im stepping off a little bit cautious of tesla stock. What are the chances of 70 putting you into the new cyber truck. Hear me out, the sunglasses you have a stack of analyst report, i am picturing any chance . The cyber truck road trip. Dont research and drive with analyst reports. Thank you all, grab your popcorn, imax is running a big screen sinema revival. Ceo Richard Gelfand on oppenheimer success and what blockbuster should expect this fall. My relationship with my credit cards wasnt good. I got into debt in college, and no matter how much i paid, it followed me everywhere. The high interest. I felt trapped. Debt debt debt debt so i broke up with my Credit Card Debt and consolidated it into a low rate personal loan from sofi. I finally feel like a grownup. Break up with bad Credit Card Debt. Get a personal loan with low fixed rates and borrow up to 100k. Go to sofi. Com to view your rate. Wh vo Verizon Small Business days are back. Wh from august 7th to the 13th. Get a free tech check and special offers. Like a free 5g phone. Plus, switch, keep your number, and get up to 300 off. With verizon business. Its your business. Its your verizon. Rsv is in for a surprise. Meet arexvy. the first fdaapproved rsv vaccine. Arexvy is used to prevent lower respiratory disease from rsv in people 60 years and older. Rsv can severely affect the lungs and lower airways. Arexvy is proven to be over 82 effective in preventing lower respiratory disease from rsv and over 94 effective in those with these health conditions. arexvy does not protect everyone and is not for those with severe allergic reactions to its ingredients. Those with weakened immune systems may have a lower response to the vaccine. The most common side effects are injection site pain, fatigue, muscle pain, headache, and joint pain. Rsv can be serious. Talk to your doctor or pharmacist about arexvy today. Rsv . Make it arexvy. How can you sleep on such a firm setting . Gab, mine is almost the same as yours. Almost is just another word for not as good as mine. Save 50 on the sleep Number Limited Edition smart bed. Plus, 36 month financing on select smart beds. Shop now only at sleep number. Jack oppenheimer is extending the imax run after a surge in demand for moviegoers. Imax delivering the best july ever at the Global Box Office grossing over 176 million. What does it mean for the future of the theater industry and what other major movies are set for the big screen joy to me imax ceo richard gelfond. Walk me through what is going through your theres a big oppenheimer affect but thats not all. Were a licensed company we provide experience of a worldwide basis. And there was no greater experience than oppenheimer in imax. Its kind of like occult craziness. There are people that have flown across countries, 6 00 a. M. Shows sold out. The oppenheimer is in the imax. We have budgeted a certain number for imax and we will probably do around three times the original budget. People want to see oppenheimer know that it is different than imax in its different because chris nolan filmed it with imax cameras. Some are film theaters. I know you have to be 100 years old to remember phil before digital. It creates an incredible experience. Jack people think of you and big movie screens. Not everyone understand how you make your money. Give us a quick walk through the different sources of revenue. There 1700 imax theaters in 90 countries around the world. We license our technology which includes screen, projector, sound system in the whole back end. We monitor every theater in the world 24 hours a day, the sun never sets on imax. What happens the revenue comes from the studio releasing the film. In the case of oppenheimer it is certain amount from universal. It comes from the exhibitors who are our license partners around the world. We get a royalty from them. A recurring maintenance revenue screen which we maintain on a regular basis on a recurring cash flow. We get money also from providing the cameras to make movies in the fee from doing that. Its a lot of recurring revenue. Jack what do you need for things to go well for imax. Is it more big pictures, those are the pictures that sign on with you to shoot them and pay the licensing money. Is it more of those . You can do well if the theaters are not filling all the seats with the movies. More blockbusters is definitely good for us. This is a terrific year, back to back to back blockbusters. We also make money by expanding our network, selling more theaters and we reported earnings a couple of weeks ago. We have 84 new signings this year which is almost double what we have for the full year last year. We also increase our local language content so we have 40 films this year that her chinese films in china or india films or japanese films all over the world because anime is popular outside of japan. Jack i have to ask about the hollywood strike what does that have on your business and the prospects for a been resolved. I think for this year, pretty much every movie we are going to show is in the can. I dont think you have a material of impact on 23. I think its too soon to say what happens on 24. Most of the first half movies are in the can. I think we have to see how long it lasted what the impact is, another good thing about the imax model were more flexible and not dependent on new releases prelast year we released top gun and we did 45 million and we had to play other films and we did another 65 million. Jack barbie is a big movie, that is a 20 movie in disney committee nike sneaker and hot cheetahs. Waiting for capn crunch the motion picture. Is this a hot new trend in movies . Is it consumer products, did that have legs . I would not rule them out i think they are part of it but its original ip. If you look oppenheimer original ip, barbie, original ip. Some of the movies that did well, super mario brothers, original ip. Thats what i think is a trend. Jack what are the biggest ones imax what are the ones you are watching for the rest of the year. Aquaman going to next year, Mission Impossible eight, we are very excited about, deadpool, lots of good stuff. Jack richard gelfond, imax. A major breakthrough in the fight against obesity. Evidence that new weight loss drugs cut the risk of heart attacks. Well have more on that next. What if buildings could tell you how they could be more efficient . Im listening. Well, with ibm, you can use software to help you connect and analyze data from hvacs to elevators to lights. What if we use aidriven insights to pinpoint inefficiency . Yep. And act on it. Saving energy, money. And emissions. Yup. Thats a big one. Now youve built Something Better for everyone. Thats the sustainability solution ibm and a Global Real Estate company created. What will you create . Ibm. Lets create. Trying vapes to quit smoking might feel like progress, but with 3x more nicotine than a pack of cigarettes vapes increase cravings trapping you in an endless craving loop. Nicorette reduces cravings until theyre gone for good. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Hi, im katie, ive lost 110 pounds on golo in just over a year. Golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. I had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. Golo has been more sustainable. I can fit it into family life, i can make meals that the whole family will enjoy. It just works in everyday life as a mom. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Jack groundbreaking trials are showing new obesity drugs could have Health Benefits beyond lowering the number on the scale novo nordisk weight loss drug wegovy is to reduce stroke and heart attack by 20 and now the pressure is on for insurers to cover the drugs. What does it mean for the Healthcare Industry in working investors find opportunity. Andrew, let me start with you, studies like these are an effort to expand the Patient Population but to get insurers to pay. How big do you think the drug category the new obesity drugs could get . You can have tens of millions of americans on this drug in the next couple of years and it could be 100 billiondollar market in total. It could be the biggest drug category ever. Jack we are talking about profound weight loss results in some of the drugs. Somebody was 50 pounds more novo nordisk had early lead in this type of drug. Eli lilly has one that could be approved for obesity later this year, it appears to be more effective and they won the drug pipeline that appears to be more effective than that, what about the stocks, novo, lily do those stocks look attractive to you. I would be cautious lily is up 50 , trading for 60 times earnings and the market cap is bigger then merck and pfizer, 500 billion for lily and the trillion for the two companies. Its a lot of good news baked into the stock. Jack the could make a lot of money but its in the price. It may be in the price right now. Bed tech stocks have sold often obesity plays a role, what is going on. Last month we heard into widow and bariatric surgery because people. Jack stomach stapling. Exactly. People are interested in trying the obesity drug. Recovering from bariatric surgery very difficult not saying some of the drugs are without side effects. But its also going into other parts of the med tech industry. When you lose weight, your chances of heart disease, type two diabetes, joint issue, sleep apnea, all that goes down a lot. You saw a lot of names like medtronic, and abbott labs. Jack all the gear that the company sell, insulin pumps that people wear with diabetes, then the artificial knees and so forth. Beyond what you mentioned, there has not been a big sales affect across the group. The stock effect. Have investors gotten ahead of themselves . Of course wall street gets over excited when they hear something that the news that came from intuitive. You have to think how are these drugs going to be paid for, you have to figure out the pricing with insurers. We are a very long way, decades from seeing an actual real impact on sales for a lot of the med tech companies. Jack i spoke earlier this year with lily ceo, he told us about vision for obesity treatment ten years from now. Itll be like high Blood Pressure treatment today. Or go to your regular family doctor, get a pill, simple as that. Could be a huge Patient Population. When you read the account of the people who take these pills, before food used to talk to me, i would drive my car and think i have to stop for the drivethrough tacos. I started taking the medicine or the food stop talking to me. Some report that they stopped to get alcohol two. Based on that, is it crazy to think ahead as an investor is a way to second, this could mean something bad for snack Food Companies, companies that sell alcohol and beverages for companies and restaurant chains . It is crazy but wall street is doing anyway. Morgan stanley put out a big report this past week with a look at Food Companies and the impact that it could have. Theyre saying a 2 3 of consumption in 2035 because of the drugs but its awkward to everybody equally. Its going to hurt fastFood Companies more so they named wing stop, krispy kreme and dominos pizza. His get her alcohol companies, constellation most in boston beer. This can hurt people like Hostess Brand which makes twinkies and international that makes twinkies and things like that. It can help bell ringing brands, im not familiar, good foods and vital farms and Restaurant Brands like sweet green and kava group, its an ipo thats done very well who sell healthier fare thats going to be more attracted to people taking this. Jack i thought you were reading off my grocery list of the sweet greens. Andrew, you have expressed some misgivings. You say this is going to result in for people like yourself that are going to end up paying a lot of money in the form of higher insurance rates for the people that are not fit. Thats always the case the Healthy People pay for less Healthy People and insurance rates because it does not affect the risks. Its going to continue with ozempic and these drugs whether or not people like it or not. Jack no other alternative, people will pay more. Ensure that the pay more for the drugs and pass that on to their customers or to the corporations that basically pick up the tab for their employees. Ive done my share driving up shares of your snack Food Companies over the years. Maybe it goes both ways. Thank you. You guys have a pair of investment ideas and andrew will tell investors how to make a quick 1000. Is this on the up and up and does it involve a getaway car. Me out. They collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Mlb chooses tmobile for business for 5g solutions. To not only enhance the fan experience, but to advance how the game is played. Nows the time to see what americas largest 5g network can do for your business. [clicking] when occasional heartburn wont let you sleep. [clicking] get fast relief with new tums heartburn sleep support. Love food back and fall asleep faster. Tum, tum tum tum, tums before. And bath fitter. Nows the time to call bath fitter to get a beautiful after. with our unique tub over tub process, theres no mess or stress. Bath fitter. It just fits. Visit bathfitter. Com to book your free consultation. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh jack andrew, let me see if i got this right, Johnson Johnson is splitting off its Consumer Health business can deal and investors can get it as a discount but there arent enough shares to go around. You say the small fries have an advantage here . Can view is been spot on shabbat by j j and they are offering it to their holders at a 7 discount and expected to be Strong Demand from j j shareholders to exchange in the loophole if your Retail Investment you by 99 shares or less and participate in the Exchange Offer on the can view stock, you can make a thousand dollars. The offer expires in the coming week is not guaranteed. You can read more on barrons. Com. Is this a ploy to get people to read your story. People already read your story. 99 shares i can do 99. 99 like at the gas pump. Thank you andrew. Carlton, give us a stock. It is not tax season but im looking at h r block, the stock had a pull back in may over the mixed Earnings Report in earnings that the irs is going to launch the own tax filing. H r block and has a little bit to run and looking cheap and nice dividend. Jack people are worried irs software is good to be sleek and up at the private companys out of business. Im hearing you say about people have the worry. Jack what you have for a. Johnson controls august just hasnt been painful protect stocks but painful for other things down 50 since reported earnings. Jack what do they do johnson controls. Air control and heating. Air conditioning hvac either earnings were great and they forecasted their guidance below estimates in the stock has now dropped 15 . Actually looks really good here, it is a chance to pick up the stock cheaper, only 15 times a discount to the other hvac stocks in trading lot. I think its good. Jack what kind of investor is this right for, risky stock were bluechip. Is a Solid Company a little bit of a turnaround. If youre a valued investor probably looks attractive. Jack ben, carlton, andrew, thank you all. To read more check at this weeks edition at barrons. Com. Dont forget to follow us on at, formerly twitter. It is barrons online, that is all for us, see you next week on barrons roundtable. Huh bad boys what did i do . Turn around. Whatcha gonna do get on the ground when sheriff john brown come for you . I dont understand why im being arrested right now bad boys, bad boys, whatcha gonna do calm down. Im calm
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