New Constructs' Live Podcast: Intelligent Capital Allocation - 17 November 2023

Welcome to New Constructs Intelligent Capital Allocation. We're happy to have you here on this Friday. Today with you, you have the usual suspects, myself, Kyle, Hakan, and David, and Cole Bush from the analyst team is our guest to give you the analyst update today. So thanks for joining us, Cole. Here's our disclosures and disclaimers. And the agenda for today. I did want to remind folks that it's a US holiday next Friday, so we will not be doing the podcast next Friday on November 24th, but we will be with you back on December 1st. This week, some great research came out. David did the Danger Zone podcast on WeWork and Sunrun. There was a Danger Zone update as well. The exec compensation aligned with ROIC model portfolio came out, and an article on the equity model adjustments for REITs, which we will be talking about a little bit later on in the agenda, and a long idea, A Beautiful Deleveraging, which is also a very interesting piece. If any more Research comes out today. I'll be sure to add it to this deck by the end of the day, and the deck, as usual, will be available in PDF out on the Society of Intelligent Investors. So that's where you can get to all of these links really easily if you find that useful. We'll go out to society and David will cover the questions that was asked, and also we will be talking about model portfolios and the fundamental macro trends. Articles and research that come out. Then we'll move over to Cole to do the analyst update, and then we will wrap it up with Kyle, who's going to do an update of the reverse DCF on NVIDIA and also stock picks as usual. So before we jump in, I know we've talked about Stock Tracker 50 the past couple of weeks, and I did want to point out that lots of the conversation that I'm having with Customers and folks that are thinking about becoming customers is about what's the difference between Stock Tracker 50 and Professional. And so several people worked hard this week in order to put together a really concise description of how to compare Stock Tracker 50 and Professional. There is quite a difference in price, and there's quite a difference in features as well. And we think both memberships are very well priced for the benefit and value that they provide. So that link is available here. It's also available in the Knowledge Center. If you're logged into New Constructs, you can go to support and look at this in the Knowledge Center as well. The other thing that we're running into as folks are talking to us about Stock Tracker 50 is folks are saying that they'd like something perhaps in between Stock Tracker 50 and Professional. They don't really need the professional-level data that comes with Professional, but they would like some of the research. And so one of the things that we have made available lately is the ability to purchase model portfolios and other research à la carte. That is something that David will be talking about as we go out to society here in a minute, but I did want to point that out, that the model portfolio is a great way to supplement the The Stock Tracker 50 ratings. Anything else that you wanted to make sure that we were saying about Stock Tracker 50 before we go out to society, David?

Just to add that you asked and we listened. We moved to professional-only subscriptions at the end of last year, and people said they wanted something that was more geared to the non-professional, and we got it for you. One of the things that's very different about Stock Tracker 50 is That it's going to be very much focused on giving you the key takeaways. Green is good, red is bad, without bogging you down with all the details that are typically really interested and geared only toward professionals. And it doesn't have a screener either, because a screener ends up delivering an enormous amount of information. When you're screening through 3,000 of the most actively traded stocks in the United States based on return on invested capital or based on ratings, you're getting the benefits of millions and millions and millions of dollars of work. So what we've done instead is make that screener something that's available to professionals only. And if you want screening ideas, well, then use our model portfolios. These are even better than using a screener in some ways because it's the screens that we've set up and tried and tested for over a decade now. Think about these model portfolios as pre-screened ideas. And as an example of the model portfolios that we offer out there, you've got the most attractive stocks that's updated monthly, the most dangerous stocks. That's also updated monthly. And on each of those, you get a list of 20 large-cap and 20 small to mid-cap stocks. That's 40 ideas on the long side and the avoid side. You really probably don't want to be owning any stocks on the most dangerous side. And the most attractive stocks are among the best stocks in the market and the overall market to own. That's a lot of work. The amount of filings you need to go through in order to build models on 3,000 stocks with at least 5 to 10 years of history. To then figure out which 40 are the best. Again, that's millions of dollars of work and effort made available to you at your fingertips for an extremely low price of $49 a month. I mean, I don't know how long that low price will last. And then we've got similar work done on the Safest Dividend Yields Model portfolio. Those are all companies that have a high dividend, relatively high dividend, not a huge one, 3% or more. And they actually generate enough free cash flow to cover that dividend, to support that dividend. A lot of companies out there paying dividends that are drawing down cash or borrowing money or even issuing stock to support the dividend. Those dividends are at risk, especially in a world where capital is becoming much more expensive. And then dividend growth stocks, those are companies who, who are growing their dividends but also have attractive earnings, right? So you're getting the best of both worlds— high growing dividend with good opportunity for capital appreciation. And then the Exec Comp Aligned with ROIC Stocks list. This is one of the most valuable services in the entire research business, and that's to first give you stocks that get a good rating, attractive or better from us, but also on that list, the companies who pay their executives based on return on invested capital. It's a small list. It's not many companies. And it's extremely difficult work to go through proxies and read those in addition to Ks and Qs to figure out how the executives are getting paid. And if executives are getting paid based on return on invested capital or economic earnings or something like that, then as an investor, you can have way more trust that they're going to do well by you. Because when they— when the company— if the executive gets paid extra because he or she increases return on invested capital, well, that's creating shareholder value, right? If executives are getting paid for things like non-GAAP EBITDA, they could be running the business into the ground and making more money. You don't want that. So the executive comp aligned with ROIC is a, is a really cool, awesome product. It's a really valuable screening tool. And then our focus list stocks, long and short. I mean, the best of the best of ideas. Those have been really well-performing model portfolios over time. And yeah, I can't say enough about how valuable that is. I mean, we've had institutions come in and say, you know what, all I need to do is buy that and I don't even need access to the website in a joking way, of course. And then there's the best and worst ETFs and mutual funds by sector and by style. And again, all the work that we're doing on all the individual stocks to give you a risk-reward rating. on an ETF or mutual fund. Extremely valuable. The only forward-looking, truly forward-looking ratings for ETFs and mutual funds in the marketplace. And then we're going to give you model portfolios. Which are the best ones for every sector? Which are the best ones for every style? And then the last thing I want to touch base on here is the fundamental macro trends. For those of you who want to understand how things are looking in the big picture, I don't think there's any place else in the world where you can get this work to understand at the level of the S&P things like free cash flow, return on invested capital versus the cost of capital, economic earnings versus GAAP earnings, core earnings versus GAAP earnings. And the same is true for the NC2000. And that's our all-cap index. That's 2,000 of the most actively traded stocks. It doesn't need to be much bigger than that. You know, the reason we're not doing 5,000 stocks or whatever is because the incremental market cap between those, those 2,000 stocks and the next 5,000 is maybe 5%. There's a lot of little stocks out there that are effectively inconsequential to the market. I wanted to really make people aware that these model portfolios now are available for subscription in a way that they weren't before. You can sign up on an annual and a monthly basis. And they're a tremendous and excellent addition to Stock Tracker 50. One of the things you're going to see in the way we're offering products these days is that we're not going to try to bundle it like we did in the legacy Gold, Platinum, and Pro, where we'll give you this portfolio for, for as part of this subscription and these portfolios out of part of this subscription. Not doing any of that. We're going to let you have access to as many ratings as you want in Stock Tracker 50, and you can look up ratings. You can track 50 stocks or ETFs or mutual funds at a time, get updates. And again, and do all the research you want on individual stocks, ETFs, and mutual funds. And then if you want screening and additional insights and reports, get a model portfolio. Perfect complement.

I know we had some questions to go through out on Society and a couple of other comments that we wanted to go through as well. Would you like to share your screen as you go out there?

Sure.

Thank you. I'm excited about this pre-IPO coverage. It's just so few and far between these days.

Yeah, there's, there's not as many IPOs these days. And I love it when Garrett does these updates. The pre-IPO stuff is, is awesome. We've got another one out here added to coverage probably yesterday, and we encourage you to take advantage of that. And you guys know how we feel about most IPOs. We've written about some of the major ones recently, and I think we've been proven right on Arm. Carte and Birkenstock. I think they came out high flying and have since pretty much crashed. So don't say we didn't warn you. And then we had another question on international coverage, and I think our ETF as well. So people are wondering, how will it be available? I believe it'll be available globally. Anybody around the world can invest in the ETF or buy the ETF. I don't think that's going to be an issue. But are we going to have ETFs on, on stocks outside of the US? Yes, that is on our project plan. We can't do it all. You know, we, we, we're doing a lot of different things. We're focusing on expanding our US coverage. Cole, who's going to be speaking later from the analyst team, can speak from experience about how much faster and better our parsing capabilities have become. And so we're going to leverage that to go global. At some point, we're hoping that's going to start happening next year. We'll probably start with Canada. But yes, for sure, we want to, we want to add more companies to coverage. That is definitely on our product plan. The other thing I wanted to talk about is coming soon from Andrew Miller. Those of you who were with us last week, and if you weren't, we highly recommend you take a look at the replay. We had one of the top whistleblower lawyers in the country, a good friend of mine named Andrew Miller, talk about the SEC's whistleblower program and how it works. And there's some very unique aspects to how that program works. We got a question from one of our loyal fans, Nancy, around, hey, is there a place we can get a list of companies that we might red flag around whistleblowing or fraud or things like that? And the answer is yes. Andrew's going to be coming back in a couple of weeks. with a list, and he's going to talk about that for us. The next thing I want to talk about is a report we just did and published on equity. Every now and then we'll put together a special report that gives people some real details on how our models are different for different companies. And we put this together, and this is going to be for pro customers only. But what it does is talk about how REITs have disclosure that's very different from other companies that require our model, our financial model, to be different and to treat line items in ways that are different than the way we treat them for many other companies. A good example is that for REITs, we treat gains and losses on non- appreciable property as an operating expense or income. Very different from gains and losses for almost any other type of company. Those are almost always non-operating, non-recurring. But for standard REITs, they are operating. And there are several similar types of adjustments that we make for mortgage REITs and hybrid REITs where we take line items that are typically treated in a very different way for a typical or normal industrial company and we treat them specially. in a REIT. And this is, I think, a way for us to spend some time really doing a deep dive on how new constructs expertise applies across all sectors. We have another similar adjustment that we made or paper that we wrote for financial companies where we talked about how EBIT, EBITDA, debt, NOPAT, invested capital, all these key metrics get calculated differently For financial companies versus non-financial companies, and I wanted to feature these articles today as just another way to show our clients and our audience today that the work that New Constructs is doing is very sophisticated. It's not a one-size-fits model where we just jam every all the data into the same model and we just push it out for everybody. No, we can't do that because disclosure is different, and. If you were to sit in on some of our meetings, you would be blown away by how much detail we go into to make sure we're getting disclosure right. Cole, it's not on our agenda, but I want to do a shout out to Cole and the great work he's recently done on how to treat capitalized interest for homebuilders. And we're doing the kind of work that only the top analysts on Wall Street do to understand the accounting differences for their company versus other companies. And there's some really intricate details and a ton of study that has to go into understanding how capitalized interest for a homebuilder might be different than capitalized interest for Verizon. Both businesses are making big capital purchases, and for one it's an operating expense, and for one it isn't. And it's important that you, you know that you can trust New Constructs to get the underlying economics of businesses right, because we're doing that kind of work. I'm really proud of that. That's among one of the best things we do as a business is really do a deep dive on making sure that we understand and present to our clients the truth about the underlying economics of a business. Okay, Cole, I'm going to pass it over to you to talk about some bank ratios and some other analyst updates. I think we got some updates on the parsing front too.

And thanks for the shout out, David.

Yeah.

Hopefully I'll be able to provide a little bit more of an update on it, you know, a few, uh, podcasts from now.

Yeah, that's right.

Today we will be discussing some important bank ratios. On the next slide, we have some simple definitions. The 3 ratios that we have recently added to our collection is the tangible common equity ratio, the return on that ratio, and the Tier 1 capital ratio. So the simple definition for the first one is tangible common equity over tangible assets. It is used to estimate a bank's sustainable losses before shareholder equity is, is wiped out. And as the calculation goes, there are different ways to calculate it. If companies have mortgage servicing rights or deferred taxes, it can affect this. But in its most simple form, and the form that we use to calculate our own, it is total shareholders' equity minus preferred stock, goodwill, and intangibles. And then that's divided by total assets minus goodwill and intangibles. And then for the return on tangible common equity, it's the net income attributable to the common shareholders over that TCE ratio. And then the third one is actually tier 1 capital, which it represents the core equity assets of the bank or financial institution divided by the risk-weighted assets. And risk-weighted assets are for us pretty much impossible to calculate, but this is a type of disclosure that banks have to put out. They are all the assets that the bank owns, and they're weighted by the risk, as the name implies. So they, they would typically multiply their exposure amount by the relevant risk for the loan or the asset. And on the next slide, I kind of get into a little bit of use cases for, for those 3. For risk assessment, Tier 1 capital and tangible common equity are huge indicators for the types of risk that a bank is taking on because it does quantify how large of a loss a bank can sustain before losing equity. And then the return on tangible common equity is more of a performance measurement. So it can be used to assess how efficiently management is allocating shareholders' funds across the business or to help the future profits that the company will generate. And then regular regulatory disclosure. This is one that you will find on every single bank disclosure is Tier 1 capital. This was instituted after 2008 with Basel III, which is a group of countries that formed a governing body over international financial They have it set that banks must have a Tier 1 capital ratio that is greater than 10.5%, and the higher the ratio, the more likely they're able to absorb losses without the risk of a bank failure. Now, on the disclosure side, I actually put together one example from our From our parsing, we have Bank of America here. This is their ratings page. If you open up the company model at the bottom, it would take you over to the financial section on the next page. If you go all the way to the right on other disclosures, we have— and then scroll down to the bottom, we have those 3 and then one that we had calculated ourselves. So you can see, because we've recently just added these, the 3 reported ratios, the return on tangible common equity, tangible common equity, and tier 1 capital, we have from the beginning of this year. But the tangible common equity ratio that we calculate ourselves goes all the way back. They're just good ratios to have. They were requested by a client of ours and They're a good measurement of how banks are performing, making sure they're reaching those tier 1.

That's right. And one of the things to keep in mind, and part of the reason we wanted to add this, is that as a content management team, as a publishing team, Hakan and Kyle and I were looking at certain bank stocks and we're like, why are these so cheap? And we went in and checked during the height of the whole bank scare, and it was because these ratios were getting dangerously low. And when the ratios are low, that's going to trigger dilutive events where the Fed or regulators come in and say, hey, you've got to issue more capital to protect your investors or to protect your solvency, whether they really need it or not. Another way of putting this is to say that the Fed and regulators, the government is effectively forcing the banking sector to operate with lower returns on capital, lower returns on equity because they weren't carrying enough cushion to deal with the amount of risk they were taking, which is why we had a crisis back 15 years ago. They didn't have enough cushion to deal with the risk they were taking, so they went belly up and we had to bail them out. And so the regulators came back and said, if that's the way you want to play, we're going to make sure you have too much cushion as opposed to too less. And these ratios measure that kind of cushion. And so when the cushion gets a little bit too low, the regulators start breaking out their calculators and they can force you to issue more stock. Issuing stock is going to be dilutive, even if it looks attractive right now and the economics look good. The, the mark-to-market element of the balance sheets is something that can force banks to issue more shares regardless of how, how good the rating might look.

Hey, David, we do have a question about this. For the folks that have Professional or Stock Tracker 50 memberships, would the bank's Tier 1 capital ratio be reflected in its equity or credit rating in some way? How does this bubble up to the larger overall rating?

Not so much in the equity rating, but in the credit rating, you'll start to see some of the ratios look a little bit poor, like the debt-to-total capital, and I believe some of the other ratios. would also begin to look a little weaker than they would otherwise if the capital ratios are low as well. That's going to be where you'll see that manifest. That's a good question though. Yeah, I think the credit rating is going to be more helpful than the equity rating on that front.

Yeah, I really appreciate the use cases, Cole, because as you were going through the ratios in the beginning, I was starting to think, why do I care about this? How does this, how does this trickle down to me? And then I thought, oh, good, good use cases. This is very helpful. I appreciate it.

Happy to do so. To switch topics here, we can get into our final results from the Q3 filing season. We had our biggest day ever this past Friday with one of our analysts was out of town. Crushed it. Absolutely crushed it. And in a day, and it was like 10 hours at most. It wasn't even a super long day either.

Unbelievable. I love this. We could talk about this every week, but I think it would maybe get old. Still, we're talking about $1 million of value add, $900,000 of value add to clients by updating 3,300+ models with fresh financial data. So you've got the best financial due diligence in the business updated within a day. And the other thing to keep in mind is that what Cole's talking about is we're handling 400 a day. So when those filings get submitted to the SEC and we get them that night after the SEC posts them all, we're processing them within 24 hours and they're back out to you. That's a quick turnaround. All right. I would imagine if you cover 10 or 20 companies and you got 2 of those in a day, it'd be taking you at least a couple of days for just 2 companies. We're doing it for 400. And that's part of why access to our screeners and stuff like that is professional level and above. That's $1,000 a month easy. We have clients pay us $10,000 a month for our data. We do our best to try and make our products as approachable And as accessible as possible. But I hope you understand that we couldn't sustain our business if we gave away such valuable stuff for $49.99, $249. $9.99 is about as good as it gets for this level of diligence. And that's not saying that everyone needs that level of diligence. Stock Tracker 50 is great. You just want the rating, you want all the details, you're still getting the benefit of all this work. But if you understand adjustments and RYC and economic book value. Well, those are things that professionals need. And we know for a fact there are quite a few professionals that use New Constructs as their outsourced analyst team. It's not a good idea for us to give that kind of service away for $49, $99 a month when if they wanted to do that on their own, instead of using New Constructs, be paying an analyst team upwards of $1 million a year to maintain the same level of coverage, or really more like $4 million a year if you look at $900,000 every quarter. To maintain the models, maintain the coverage, all that. That's just some background on, on how our products are set up and pricing. And sorry, Cole, you just can't talk enough about how impressive this table and chart is. It's a, it's a ton of work and a huge amount of value. Thank you, Cole.

And it's only gonna be improving. We're continually adding more companies to coverage and The technology's just getting better.

Better, faster, more accurate. We have some new technological improvements that are gonna really have a huge impact on speed and coverage for us here in the not too distant future that we're really excited about. That's gonna help us get to the global coverage faster. The other thing to keep in mind is we're doing all this with a team of what, 10? 10-person team with all these details.

Right.

And you got people like Cole who are going in and looking at, at not just the home builders and the capitalized interest, but able to do a deep dive on these banks and these capital ratios. These are the kinds of experts that are going through and parsing data for you. And that's what makes me think even this $900,000 a quarter is low because hard to find people at this level of expertise.

I've got a quick question. How many days are companies permitted between earnings announcements and filing of the 10-Q or 10-K?

There's a deadline for the filings to be out, and I think that's the only deadline. I think if they're able to do their press release sooner, they can do it sooner. But more and more we're seeing these come out on the same day or close to the same day because the amount of work that goes into creating the press release that has to be published in an 8-K and filed with the SEC, it's just not that much different. They want the numbers to be reliable in the press release. They will have already done the financial statements, and so they might as well get 'em out too. We're typically not seeing that big a delay. I think a majority of the time it's the same day. Great question.

Anything else on the filing season or any other analyst updates, questions, or comments, folks? All right. Well, you can always ask questions out on Society. Our analysts do check in there. So as you have super technical questions, please don't hesitate to reach out there. Kyle, would you take us into the DCF of one of our favorite companies to do DCFs on?

I feel like.

Gladly. I'm going to take over the screen share here.

Thanks.

So we've talked about NVIDIA before. The stock's up 40-something percent, I believe year to date. It's over 1,000% past couple of years. And I think 15 or so percent the past month. So we want to look at What that means for the valuation. We've looked at it in the past. We've shown kind of the level of growth they have to achieve. And so now we wanted to put more context to it to really showcase just how expensive the stock has gotten, even in an optimistic scenario. Started off with this chart here. Current stock price implies that margins return to the company record of 38% in the trailing 12 months. They're right around 35%. And then they'd have to grow revenue for 30% each year for 15 years to justify the current price. In that scenario, the revenue out in 15 years from now would be just a bit higher than the GDP of Mexico in 2022, calendar 2022. You've got a situation where unless Nvidia generates sales of an entire country of Mexico, just below South Korea, which is the next rank up above Mexico. there's nothing but downside in the stock right now just based on expectations. We looked at also the next slide here.

Hello, stop for a second. This slide is awesome. Slide is unbelievable, Kyle. This is great work. This is so cool. I think the reverse DCF slides are cool and they're tremendous analytical value. And then, but then when we're able to add context like this to say, hey, You know, not only is this blue line nuts in terms of how much revenue's got to go up to justify the price, to get a DCF model to generate a price equal to the current stock price, let's look at how that compares to something else out there. How about the GDP of Mexico? Nvidia, that's what Nvidia is going to do, or almost South Korea. It's super cool, Kyle. Thank you. This is awesome. We do some of this already in some of our other long ideas and danger zone ideas where we do deep dives. It's not just about understanding the context of how high the revenue's got to be compared to what it's been in the past, because people can see that like, oh, it's a growth story, blah, blah, blah, it's going to be great, blah, blah. They don't really get this chart by itself without Mexico and South Korea's GDP on here is crazy to begin with. But when you do add Mexico and South Korea, you realize just how insane the expectations baked into the stock price are. All right, Kyle, I just couldn't help myself.

Yeah, no, that's fine. Now on the next slide, you'll see why we went with GDP of countries, because there are very few companies we can, can even compare the implied expectations. So this top chart on the left here is the implied revenue, and we've got there the South Korea and Mexico GDP. Next closest revenue would be Walmart. And so the current stock price implies that Nvidia's revenue will be 2.3 times Walmart's TTM revenue. You can see where their current revenue is down on the far right of that chart as well. And so to put into context on the company basis, you lose a little bit of that just because of the magnitude. And so we went, let's look at countries because at this point the expectations are for Nvidia to be its own country-sized revenue. Down below there, want to look at profits because that I think is almost as impressive, if not even more, on the expectations. If they were to, what's baked into the current stock price, they'd have to generate NOPAT that is higher than Ireland's GDP and just below Belgium's GDP. And you can see the other big tech companies in that chart. Those charts or those companies are the top NOPAT generating companies in our entire coverage universe. So we've got Apple, Microsoft, Google, And the implied NOPAT profits in Nvidia stock price is magnitudes higher than those companies right now. And again, anything less than that, you've got downside in the stock, which means the stock right now has heavy downside because I would say becoming its own country, bigger than Mexico on revenue, bigger than Ireland on profits is quite optimistic to say the least.

Yeah. And we were joking about this chart. before we got on, because GDP is really comparable to revenue.

Yep.

Right? That's really the fair comp. So if the profits of the company are bigger than the GDP of a country, the profits, talking about profits, not revenue, that's just, that's double nuts, right? You hear what I'm saying here? It's another amazing chart context to again help our clients understand in a simple, straightforward, but yet super sophisticated way. That Nvidia is expensive and risky.

Has a company ever done something like this, gone from where Nvidia is at now to 10 years later where the stock price says Nvidia will be?

I don't think anyone's ever achieved that. I mean, the answer to that question is no. When you look at the most profitable companies in the world that Kyle put on the chart, right? Apple, Microsoft, Google, that's where they are now. They've never been anywhere close to where Nvidia is expected to be. Those are the biggest and best companies in the world, which is why it's cool that Kyle chose these. These are the right stocks to choose in terms of revenue and notepad companies to compare. Yeah, impressive. And I also like how he's got Nvidia's, their current, their trailing revenue, and quite a leap. Quite a leap. This is why expectations investing is so valuable. I don't need to make a prediction about the future. Because Mr. Market is making predictions every day. It's better to be a critic of a fortune teller than a fortune teller. And here the fortune teller's, he's on something to believe in, in this future revenue and profits.

Great. I'll take us right into the next slide then.

We've got a better mousetrap for understanding the profitability and valuation of companies, and we show you how we use it in all these long ideas and danger zone ideas. And we are soon to be selling these long idea and danger zone ideas in the same way we're selling our model portfolios as subscription. We're going to build out subscription access to the long idea and danger zone ideas so you can buy those à la carte because right now they're available to professional investors only for good reason. If you're going to be getting at least 2 long ideas, 2 danger zone ideas, usually on average per month, Wall Street would charge you for those reports, probably $10,000 each, and you're getting 4 really good ideas for $1,000 a month from our professional subscription. It's an extremely, extremely good price. I can't say enough about that. And I can't guarantee how long it will be that low. Anyway, yeah, Kyle, man, talk about SumZero. How much are we crushing it?

Yeah, I mean, you just mentioned we've got top 10 in 18 categories. There's only 23 total. We're pretty happy. Some of those are regional that I don't know if we'll ever rank in, but number 1 all-time, number 1 short value. We've been ranked number 1 in at least one category since May 2021. We're super proud of the success we've had there. Being recognized a bunch against, like you said, 16,000 other analysts has been pretty awesome and shows the power of what we're doing here.

That's a lot of categories to be doing this well.

Well, thank you, Kyle. Thank you, Cole and David. Of course, appreciate your time this week. Again, we will be returning in 2 Fridays on December 1st. We wish you a lovely weekend. And of course, we'll see you out on Society as well.