meet the master builder of the bronx brewery. all that and more over the next half hour, but first let's get headlines from carol massar. >> the big story at this hour -- alibaba seeking to raise $21.1 billion in what could be the largest ipo ever in the u.s. they plan to sell 320 million american shares for $60 to $66 a piece. at the high end of that range, that means the offering would give the company a market value of $162 billion. the company that supplies image processing chips for gopro cameras shares rallied more than 3%. the lastest stocks forecast topped analyst estimates. the stock of california-based company has grown sixfold since it went public in october of 2012. the u.s. jobs report for august missed estimates. the economy added 142,000 jobs which is the smallest gain of the year and comes after an increase of 212,000 jobs in the month of july. the unemployment rate falling to 6.1% but economists say that is because more people left of the workforce. back to you. >> thank you. we will stick to the theme because some scratch -- jack ma has some scratch. he built alibaba from scratch. he is taking the company public. valuation at $160 billion. joining me now is cory johnson who is typing away and also with us is praveen menon of bloomberg intelligence which provides real-time research, context in a variety of industries. >> we need the knee defenders. >> let's start off with the valuation which is a mathematical equation based on the number of american depository shares that will be issued. is this within the range of what people were expecting? >> it is in the low-end range. to some extent, looking at recent ipos like facebook and twitter -- the market has been expecting them to be priced lower. we like to look at it at price to sale. you can say it is a little bit under valuation. >> less expensive than the most expensive stocks in the world. >> maybe. what is it? $60 to $66 per share. this is an ipo that seems to be sucking money out from everybody's portfolio. >> it'll be curious the effect it has on the other chinese internet companies. are there funds out there that decide they want exposure to high topline growth? internet companies based in china. what does it mean for some of the frothier companies, smaller companies that have a lot more financial issues where some big fund will say they need half of a percent of the overall assets to go into the chinese internet growth and they can take it away from the other ones and put it into this company. this will be a lot of stock to fill. >> the roadshow for the ipo will begin next week for this public offering. if it is priced at the low end of the estimated range, is that because they dangled this bait in front of people and they see the reactions? >> the bankers want -- they raised the price during the ipo. we are raising the price again. they have surely sussed out the market. they think they can sell all the stock at the price they are listing today. >> praveen, based on your experience covering this, is this going to be a feeding frenzy? >> i think people have been waiting a long time for this company to come out. we have seen the numbers -- $250 billion in transactions last year. >> a quarter of a trillion dollars in transactions? >> that is correct. you don't get companies like this to come out often. we were talking about facebook often, but they had a very large audience. did it have the revenue? no. companies like this do not come around. >> this will come out of the gate with great liquidity. this will be a stock that big portfolio managers will be able to buy in size. >> that is correct. we heard the percentage of the shares they are selling is much higher than we typically see. some of that may have to do with that people are familiar with this company. it is very well established and it is already had a piece of its business public earlier. they don't have some of the hurdles that an unknown name like a twitter for public markets. >> for people that think this is an unknown company because they have not been watching it around the clock -- describe what is alibaba? >> alibaba is some compilation of a little bit of ebay, a little bit of amazon, a little bit of paypal. the business model is that. fundamentally, it is a place that matches buyers and sellers like nasdaq as opposed to walmart where they take possession of goods from the manufacturer and sell it to customers. they have a factory and shipping business that accounts for all of the mail in china because there's so much stuff they are running through their system. they actually enable the sellers by having a system to take ownership and briefly passing through the system. >> in russia, the same kind of format exists particularly because there is no electronic payment system that is pervasive in the country. with alibaba, how do they actually make the money? taking a couple of -- >> they take a markup in every single deal. one of the many interesting things you read in this is that the chinese consumer does not have a credit card typically. the payment system is an important piece of the business. another of the many risks in this deal. >> i know you will be busy all weekend long. i know you're already typing it in. >> the filing is 350 pages and no one should be watching this broadcast saying they will buy the stock because everybody saying this is very exciting. there is a lot of risk in this deal and the filing is thick with it -- people should be aware. >> people can tweet questions towards you. thank you very much. do not miss the global broadcast premiere of "crocodile in the yangtze: the alibaba story." that is on monday, september 8 at 9 p.m. eastern only on bloomberg tv. coming up, a wall street risk manager says goodbye to his desk job and he wants a new kind of risk. he started his own crepe business. i will ask him about turning dough into dollars. the unemployment rate fell to 6.1% down from 6.2%. i will speak to the president of hired.com on why recent graduates are changing the startup life. that is up next. ♪ >> this is "taking stock" on bloomberg. i'm pimm fox. i will introduce you to a company that is breaking some boundaries. zaycon works to break down the barriers of buying food directly from the farm. their trucks deliver wholesale quantities to retail customers. richard braddock is the former chairman of fresh direct and the former president of citigroup so he knows a lot about money. he is the chairman of zaycon foods. thank you for being here. >> nice to be back. >> was i able to describe that correctly that you are basically offering this produce and meat and you were doing it at a wholesale scale? >> everything starts with the customer. we are solving for the customer some needs that are not being satisfied today with a very clever business model. to describe the model, it is basically from farm to consumer directly. it is precisely from the process of right in front of the farm. you create a product and create it in bulk. you put it on refrigerated trucks and ship it directly to customers. that does a lot of things. number one, it gets fresh product to the customer in three to six days depending on where your are in the country versus a store-based model which is 15 to 25. you get much fresher food. secondly, there is a lot of economy in this distribution system. there are no fixed assets, no warehouses. there is no wastage because you sell everything you buy a -- i won't use that name. in addition to that, we have no meaningful inventory carry cost because we have the product for such a short period of time. our consumer, because they really love the service, pays in advance so we have no credit exposure on the revenue. if you put all of that together, we sell 50% under retail. 50%. >> the cost is 50% less than if you were to go to the local grocery store? >> and we get a far fresher product. >> you mentioned the trucks. the refrigerated trucks that carry the produce, but where did they go? they go to a location that has been designated and advertised or communicated via e-mail to the customers that have already spent the money. >> exactly. they are waiting for us to show up and we have local premises. they could be a church parking lot. there is a lot of attention to the fact that we are dealing with food. there are a lot of regulations and we satisfy that. the person gets an e-mail and says your product is ready. open your trunk, come in and we will put it on the back of your trucks with great fresh product, 50% off immediately. >> where do you operate right now? >> it is basically available nationally. we are headquartered out of washington on the west coast. we are at the early stage of our business formation. we are about four years old. we are about $18 million revenue already and basically break even. we do 75% of our business in only 14% of the country. we are really building our penetration. i invest and pay attention now to the big trends that will be important that is not being taken advantage of today. one of the big ones is social media marketing. a massive number of people. these people have so far not been given a chance to do much commerce. if you give a social media person a great deal like this 50% off product, they will engage their friends and the marketing leverage of that is the way we are effectively marketing the business. >> i can see people sidling up to you on a regular basis. thank you very much, richard braddock, the chairman of zaycon foods. now from breaking boundaries in the food business to breaking boundaries in hiring. hired.com is a career marketplace that helps connects engineers and scientists and product managers to over 1000 companies. hired members get an average of five offers a week. the salaries are about $120,000. i am joined by the president -- mehul patel. describe the companies that you're currently working with. >> we work with a range of companies. they start from small technology startups looking to hire initial teams to build their products all the way up to fortune 1000 companies. in new york, we're seeing clients that include american express, goldman sachs, bloomberg. we have recently started seeing a whole slew of hedge funds becoming very interested. >> how does your business model differ than the traditional hiring services particularly in terms of the way you which you can get paid? >> two differences -- one is payment. first, the actual model. we think the traditional recruiting model is broken. neither candidate or clients have a good experience. nobody loves recruiting or being recruited. we have split the model on its head. in the traditional model, you have candidates applying for a job. in our model, we really focus on getting the absolute best candidates. we select the top 8% of candidates that apply. once they are on the platform and approved, we leave it to the companies to apply to the candidates. they make the request for an interview. they like the candidates to go and meet with them, but to do that they have to give a significant amount of information about what the role will be, the compensation, why the candidate is a great fit. >> how do you get compensated that is different from the current model once someone gets hired? >> one is the car model -- we get paid when they get hired. the second fee is a 1% fee which is rather than getting paid up front we ask companies to pay us 1% of the annual salary for as long as the candidate is with them up to a limit of 24 months. we want to stand behind the candidates that we think are going to be successful. >> thank you very much for joining me. mehul patel, the president of hired.com. coming up, i will talk to a risk expert who left his job on wall street to risk his future to make crepes. that is next on "taking stock." ♪ >> this is "taking stock." i'm pimm fox. a programming note on alibaba's highly-anticipated initial public offering which is the largest offering in u.s. history. we will find out how they became the first global internet company and what challenges jack ma will face. we will show you in premier of the alibaba story. the documentary draws on 200 hours of archived footage that was filmed by employees of the headquarters and events hosted by jack ma. take a look. ♪ ♪ to see more of alibaba's colorful founder jack ma, do not miss the global broadcast premiere of the alibaba story on monday, september 8, 9 p.m. eastern only on bloomberg television. we know that wall street is competitive. my next guest decided to walk away from a mortgage, bond and credit derivative job to focus on another high-risk business -- food. he decided to make crêpes. joining me now is florent cohen, the founder of crepes and delices. thank you for being here. how does it come into your mind that you are sitting at a nice job, you are doing risk and mortgage derivatives -- and say, ah, i must make crepes. where did this idea come from? >> my family has been in the food business for about four generations. the i decided i wanted to do it as well -- to make my own business. >> you wanted to follow in the footsteps of your family. did they think you were crazy? >> yes. >> do they still think you are? >> yes. >> what is the extent of the business? in him business? >> we opened one week ago. five days ago. >> have you had any sleep in the last five days? >> about two hours a night. >> that is good for a start up. >> we have been open for five days. >> where is it? >> on 72nd street between columbus and broadway. >> ok, so in manhattan. >> we have plenty of kids coming out of school in the neighborhood. >> how did you learn to make crepes? did you have to go to a special school, take a course? >> i went back to france for culinary training to learn how to make crepes. it is quite difficult. i went back to new york to create the company. >> you had to actually go into a bank account and spend some money in order to rent the space and get all of the equipment. how did you raise all of the money? >> it was my own money first and then i went to see different investors. we raised a little bit over $400,000 to start the business. >> you had to hire employees and so on. did they ask you if you had any experience doing this? it is a big risk for them to work for you. >> since i have been doing training a while ago, they saw i know what i am doing. >> what does it take to actually make a good crepe? >> passion. you have to be passionate about it. you find the best ingredients. we only use organic flour, eggs and milk. you have to be good at making it. >> is there a particular description? how would you describe the process of doing this? do you make it on some type of hot appliance? >> the professional appliance is very essential. it is like 16 inches big and you need to make it in less than two minutes. it is a bigger challenge than making it at home. >> it is like a timed event. do you have a favorite flavor? >> salted caramel. >> thank you very much. florent cohen, the founder of crepes and delices. this is "taking stock" on bloomberg. ♪ >> this is "taking stock" on bloomberg. i am pimm fox. now for a look at today's headlines, i want to go to su keenan. >> a bit more on the big after the bell news -- alibaba group, the chinese company which made jack ma a billionaire, will raise $21.1 billion in its ipo which could be the largest sale of stock ever. the company filed to go public in u.s. back in may after hong kong rejected it. it values itself at $162 billion. it plans to start meeting investors as early as monday. meanwhile, u.s. and jamaican ships are sailing to a site off the jamaican coast where a plane is believed to have crashed. the unresponsive plane that took off from new york bound for florida did not answer radio calls since 10:00 in the morning. it was temporarily tracked by two f-15 fighters and had to stop tracking as it entered cuban airspace. boeing is posed to win a jet order from ryanair valued at $11 billion after it agreed to create a new version of the 737 plane that squeezes in more seats. ryanair is europe's largest discount carrier. back to you. >> telling time can be quite routine but that is not the case if you are fortunate to wear president eisenhower's rolex. how about a rare first issue of playboy magazine or maybe a signed photo of albert einstein? with details on these items and how you can bid on them, i am joined by bobby livingston of rr auction. let us start talking about a watch, a particular watch that was given to president eisenhower. you go ahead and tell the story. >> when general eisenhower was a five-star general, rolex approached him and presented him with a watch. it is number 150000 and they gave it to him for saving europe from nazi germany. he loved it. there is a lot of documentation between them. he wore this watch into the white house. what makes it so important is when rolex presented him this watch, it was not a brand of prestige or power. once president eisenhower was photographed wearing it, rolex began to transform into the brand it is today. we feel it is the most important rolex ever offered. >> when looking at the detail of the watch, i noticed there was the five stars engraved on the back of the watch itself. on the bracelet it has his initials. >> it has "dde" on it. it is impeccable and historically significant. he gave it to his valet who was with him from 1942 until his death. >> he actually moved with eisenhower and his wife to gettysburg. >> in the 1980's, it was purchased by our client who has a great presidential collection. that is most of the option we are having on september 17 and 18, this presidential collection. this watch is the superstar of it. >> the rr auctions which is your company -- you are based in boston. >> it is based on commercial street. >> where can people learn more about bidding on this? is it online only or a live auction? >> it is a live auction on september 17 and 18. you can attend live. you can bid online. you can telephone bid as well. >> let's say the watch is not for you and you would like something a little more, i don't know, human. you are also auctioning off a lock of john adams's hair. >> it is interesting. >> where did it come from? i know it came from john adams. >> it came from his granddaughter. it was quite common. it is a show of affection and you would show locks of your hair and people would collect it. it is a generous lock and it comes right from his family to a noted hair collector in the 1800s. >> let's talk about something we all understand a little more which is a signed photograph of albert einstein. >> it is his own print of his most famous photo -- the photograph of him sticking his tongue out. on his 72nd birthday, photographers in new york said give us a smile for your birthday and he turned and stuck his tongue out. einstein himself called the photographer and had it cropped. on the photo, einstein writes -- this photo is outrageous, this gesture is outrageous and offensive to all humanity. >> it may be offensive and ironic, but minimum bid? $10,000? >> we sold that picture in 2009 for $72,000 so we expect it to exceed that. >> even though $10,000 is the minimum, that is the starting bid. we could be looking at $100,000. what about the watch? >> we feel it is the most expensive rolex ever offered. the most expensive one sold for over $1 million so we expect that to exceed it. >> there is an item related to nelson mandela returning to his prison. this is called the freedom torch. this was something that was made for that specific occasion. >> he spent 27 years in that prison. he ran against the president and came out with a torch made in that prison lit. he lights the flame of freedom in south africa and it is symbolic and iconic of the end of apartheid. it is a significant, historic piece of history. >> this is estimated to go for what? $50,000? >> we will start at $50,000 but it is one of those items you don't know what it is worth. there is nothing like it. it is the ultimate symbol of the end of apartheid. >> another symbol which is a letter written by john f. kennedy to the parents of a deceased crew member from p.t. 109. the boat he served on in the navy. tell me about this. >> the night of august 1, 1943, it was cut in half by a destroyer and commander kennedy lost two of his crewmen. the family got a telegram from the government saying the son was missing. kennedy knew the son was dead. they wrote to him and asks for details about what happened that night and commander kennedy wrote to them that their son was lost. there was no details. they wrote him again and there are two letters explaining exactly what happened that night. >> now from a note of sadness to perhaps a note more joyful, there is an edition -- the first edition of playboy magazine. >> the first edition was $.50 and it was a sensation and sold out. a guy two or three years later sent hugh hefner five dollars and with this copy he says this is my filed copy. he sent him a pristine first edition, hefner's own copy. >> minimum bid? about $1000. >> these typically sell for $10,000 to $20,000 but since this is hefner's personal copy, this could go right past that. the auction is september 17 and 18 in boston, massachusetts. >> thank you for sharing these items for us. bobby livingston of rr auction. we will stay on top of the alibaba news coming up next. we have special coverage on "bloomberg west." first, have you ever tried to brew beer in a bag? we will talk beer and bags next, including some handbags that are made out of metal. i will talk to bag maker wendy stevens on her career and craftsmanship. every new york city borough should have its own beer, correct? we will meet the cofounder of the bronx brewery. ♪ >> our big news of the day -- alibaba, the chinese company that made cofounder jack ma a billionaire will raise as much as $21 billion in its initial public offering which could be the largest sale ever of a new stock. the e-commerce company would value itself at around $162 billion will start meeting with investors on monday on the roadshow. much more coming up on bloomberg west only on bloomberg. it is fashion week in new york but trends are the last thing on my next guest's mind. wendy stevens is an artisan who creates handmade purses and clutches with some serious staying power. this is because her designs are created in a workshop and made of various metals. wendy joins me now. besides being from cleveland, the home of u.s. steel, have to ask you how did you decide that metal was the material you wanted to work with? >> the city of new york is full of metal. the years i was there, you see it everywhere. subways, telephone booths. >> construction sites. >> there is a lot of industrial surplus materials on canal street where you can buy these materials. >> you started out doing this without really knowing a lot of the details of the craftsmanship involved in turning metal into these kinds of products. >> correct. i asked hardware store owners, lumbers, roofing people. >> the owner of your building was in the plumbing supply business and you ask him for advice. >> i asked some of the guys to help me solder. how do i do this and what do i use? it was a long road. >> the long road takes you to pennsylvania where you and your husband had a workshop. there was a catastrophic fire which destroyed your entire studio. >> nearly 20 years of work as well. we rebuilt and it was actually an amazing opportunity. with 20 years of making the work and starting with a clean slate. we created a magical studio workshop. >> you were at the right place at the right time. give us an idea of some of the works you are most proud of. i know you brought some but i am wondering if you could describe some of the functions and forms. >> it is like asking which child i like best. the iphone holder has gotten such great reception. i love making them all. seriously, that is what i love to do. >> some of the forms combine a little bit of leather with the actual metal, right? >> leather has been a part of it. it makes it a little more user-friendly, softer. it fits the body nicely. >> what about the price because these are one-off items? >> it is limited production. prices range from retail $195 to $950. it is a labor of love. >> how did this labor of love turn into a business? there were certain key people that turned it into something that they liked into products that can be found at stores like -- >> it was open vendor day -- this was in the 1980's -- i was first in line and had some handbags and the buyer said they love it and they would take three of each. it took me all summer to make them. from there, it went to the galleries of the east village. those galleries kind of led me to a sales rep which represented my husband. >> what kind of metal -- obviously, there is stainless steel. >> yes. at this point they are stainless steel. >> any chance you will work with any kinds of metal? >> working with copper, brass. once i started with a stainless, there was no turning back. it is so lightweight and durable. so many variations you can do with stainless. >> what about your soldering technique? >> i don't do it anymore. i was pregnant with our daughter and realized i had to stop soldering. i did a collection of all cold attached pieces. no soldering at all. i ended up selling just as many. >> a long way from you from the first hammer and nail going into a piece of copper. you found that was a malleable material to use. well done. thank you for sharing this with us. art bag designer wendy stevens. 100 years ago, the bronx was a beer mecca. now, the suds are flowing again. you will meet the cofounder of the bronx brewery. coming up on "bloomberg west," they will have the very latest on the alibaba ipo. they plan to raise more than $21 billion which is the largest initial public offering in u.s. history. is the company really worth that much? that is coming up on "bloomberg west." ♪ >> this is "taking stock" on bloomberg. back around 1900, part of the bronx was a beer lovers' paradise. they had seven breweries in a 20-block radius. by the 1960's, that all disappeared but now beer is making a comeback in the bronx and joining me is the cofounder of the bronx brewery, chris gallant. thank you for being here. before we go to the bronx, we have to delve into a little background of chris gallant. tell me about your experience. you were doing work for heineken international, right? >> i was. i worked in south america, mostly in brazil. i could not ask for a better job. >> was that how you learned about the beer industry? >> it was my first job in the beer industry so i learned a lot of different things from sales to marketing while working down there. >> was this after you are at bain? >> during and after. >> then you go down into the whole thing with heineken international in brazil and then what? a lightbulb goes off over your head to do your own brewery? >> i have to move back to new york and have to be my own brewery. i partnered up with a couple of guys from the bronx and we decided to open up a brewery. >> you opened it up in port morris. 136th street. not exactly -- it is a little bit of a challenge to put something up there, isn't it? >> we love it. there is a lot of great breweries. it is easy to get to from anywhere in the city, new jersey, connecticut. the neighborhood is changing. >> you built the brewery yourself? you guys designed it? you have a dog run and you want to do the whole beer garden thing. >> we have a very big backyard. we built a dog run. as soon as we open that, we will encourage people to come and bring their dogs and have some beer. >> what are the some of the steps involved because when you are starting a brewery, sometimes you have contract brewers. that is what you did. >> we did something called an alternating proprietorship. we went up to a brewery which we partnered up in connecticut. we went up there and brew the beer and bought it back to the city. we did that for a couple of years until we got enough capital together. >> what makes the bronx brewery, the beer itself distinctive? >> we make only pale ales. that is our favorite beer to drink. we think we make it very well. it is a very well balanced, very approachable beer. you can drink it at a fine-dining restaurant or a sports bar. >> you have six different brews? >> we have one year-round and four seasonal brews. next week, we will have four year-round brews and four seasonal. we will have our pale, rye, belgian and ipa. >> what about people coming to actually see the actually brewing process? >> we are just about to open for tours and tastings. >> what about the raising of money? obviously, this is a challenging business, particularly if you are not going to do huge volume. >> it is. lots and lots of friends and family that were very nice. we eventually got a bank loan from chase bank. >> what kind of volume are you looking to do? >> last year, we did about 5000 barrels which is two regular-sized kegs. this year we will do about 8000 barrels. >> the reception locally? >> we are in about 600 restaurants and about 500 grocery stores around new york city and long island. >> would you like to expand nationally? >> regionally first. >> as far as getting the licenses and all of the legal paperwork involved, what was that like? >> it is a long process. there is federal, state, city permits so there is quite a bit to do. i passed it on to my partner. >> are there any beers or any mentors that you look to in the industry to say -- i would like my beer to be like that, but only better. who is the icon in the business? >> there are a lot of great pale ales out there. i think sierra nevada's pale ale is great. great beers and they have made a name for themselves in the marketplace. >> what about the actual marketing? i noticed the logo, the look of the company which is very important. >> marketing is so important in beer. when you walk into a grocery store now, you see 100 beers on the shelf. you need to stand out on the shelf to distinguish yourself. our can is very aggressive, distinctive and we hope people recognize it. >> you are making everybody very thirsty. thank you very much, chris gallant, the cofounder of the bronx brewery. thank you for "taking stock." i am pimm fox. ♪

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