>> WELCOME BACK TO
GENERATE WHEN YOU WATCH THE
CLOSING BELL, BRAD SMITH, WE'VE
GOT ABOUT 15 MINUTES LEFT IN
TODAY'S TRADING ACTIVITY TAKE A
LOOK AT THE DOW JONES
INDUSTRIAL AVERAGE ARE SEEING
THAT LOWER BY ABOUT 2 AND A
QUARTER PERCENT RIGHT NOW WE
ARE AT SESSION LOWS DOWN BY A
LITTLE BIT OVER AND IS NEARLY
700 POINTS. I'M TRYING TO KIND
OF TUNE INTO THE TINY FONT HERE
ON MY PERHAPS YOU CAN SEE THE
LITTLE BIT LARGER 700 POINTS.
THAT'S EXACTLY THE THRESHOLD
THAT WE'VE JUST
CROSSED INTO AT THESE LOWS ON
THE DAY THE NASDAQ COMPOSITE IS
DOWN BY ABOUT 2.9% AT THIS
POINT TIME AROUND THAT UP TO
2.8% PERHAPS ABOUT 300 POINTS
300 400 POINTS LAST THERE IT
SEEMS AND THE S AND P 500
THAT'S DOWN BY ABOUT
2.9% AS WELL SO KEEP A CLOSE
EYE ON THIS WE ARE INDEED
SEEING MARKET MELTDOWN HERE ON
THE DAY OFF OF SOME OF THE
RECORD HIGHS THAT WE HAD SEEN
TO START OFF THE YEAR AND SO
RIGHT NOW CONTINUING TO KEEP AN
EYE ON THE MAJOR AVERAGES AS
WELL AS WHAT'S TAKING PLACE IN
THE WILD RUN
OF GAMESTOP THIS WEEK, YES
WE'VE GOT TO CONTINUE TO TALK
ABOUT THIS AS WE'RE GOING INTO
THE CLOSING BELL WE'LL SEE
WHERE THIS ENDS THE DAY GAME
STOP SHARES CONTINUING TO SOAR
BUILDING ON MASSIVE GAINS FROM
EARLIER IN THE WEEK WHAT'S
BEHIND THE RALLY IS NOT AT ALL
WHAT YOU WOULD EXPECT. JOINING
US NOW TO DISCUSS IS ZACH
ABRAHAM IS MANY ZACH A BREAK
BOR CAPITAL
MANAGEMENT SACK GREAT TO HAVE
YOU BACK ON THE SHOW AND THANKS
FOR TAKING MY CALL ME JOKES
EVERY TIME YOU DO JOIN US AND
GIVE US SOME BACKGROUND WHAT'S
GOING ON WITH
REDDIT USERS AND GAMESTOP'S
STOCK AND WHAT THE TRADING APPS
LIKE ROBINHOOD PERHAPS AFTER DO
WITH IT.
>> WELL YEAH, GREAT QUESTION
OBVIOUSLY THAT'S A
HOT TOPIC. LOOK I THINK THE
THING THAT'S GETTING REALLY
MISS MISS REPRESENTED OR OR
OVERLOOKED HERE IS THE SAME
REASON WHY YOU KNOW 2 OUT MOST
AGO GAMESTOP AND BED BATH AND
BEYOND WERE 2 BIGGEST HOLDINGS
AND THE REASON FOR THAT IS BOTH
COMPANIES WERE DEEPLY HONORED
VALUE OF BOTH
COMPANIES HAVE VERY POSITIVE
INCLUDING NEW IN THE CASE OF
BED BATH AND BEYOND TO PIVOT
TO ONLINE RETAIL AND THEY'VE
DONE A
PHENOMENAL JOB. AND THESE
THINGS HAVE A MASSIVE SHORT
INTEREST SO PART OF OUR THESIS
GOING LONG THESE
WAS THE MARKET WAS NOT
RECOGNIZING THE STRIDES THAT
BOTH COMPANIES MADE AND THERE
WERE MASSIVE SHORT INTEREST AND
YOU'RE GOING TO SHORTS WAS
NOW TOO YOU KNOW WE BOUGHT
GAMESTOP AND 12 AND SOLD A 42
EVERY
TO GO. YOU KNOW YOU KNOW WE'RE
CLEARLY OFF THE MAP NOW RIGHT
THIS IS OUT OF CONTROL.
THIS IS ALL
SPECULATION BUT THE REASON
THESE THINGS STARTED WHAT
WAS HIT THIS OFF WAS JUST THAT
DYNAMIC SAYING THAT THESE HEDGE
FUNDS HAVE BEEN SHORTING VALUE,
ESPECIALLY MID AND SMALL CAP
VALUE AND BEING LONG BE KEPT AT
FOR THE LAST DECADE AGO,
PERFECT I'VE BEEN A
PERFECT STORM. QUITE HONESTLY
WHEN YOU LOOK AT THESE GUYS
PORTFOLIOS THEY WERE SOME OF
THE MOST IRRESPONSIBLY
STRUCTURE PORTFOLIOS I'VE EVER
SEEN AND THEY WERE BEGGING TO
BE BLOWN UP AND AGAIN WE DIDN'T
THINK IT WAS GOING TO GO
ANYWHERE NEAR THIS KNOTS
YOU KNOW THIS WHAT HAPPENS WHEN
WE WHEN YOU'VE GOT A ONE-WAY
TRADE LIKE A LONG LONG ON
GROWTH
AND INTACT, AND SURE VALUE FOR
A DECADE AND THESE GUYS YOU
LAZY AND THEY GET COMPLACENT
AND THEY'RE GETTING BLOWN UP
AND I THINK WHAT
YOU SEE YEARS, EVERYBODY'S KIND
OF LOOKING AT THE RED A CROWD
IN THE WALL STREET THAT'S CROWD
OF ALL WE'VE GOT TO TRAIN THESE
GUYS AND IN OUR VIEW THERE
DELIVERING A SHOT OF DEMOCRACY
TO THE MARKETS. YOU
KNOW THE THIS IS I
THIS IS MORE PRICE DISCOVERY
NOW AGAIN I DON'T THINK THAT
ABOUT THE ODDS WERE 50. WE SOLD
A 45 EARLIER TODAY. I DON'T
THINK GAMESTOP IS WORTH
ANYWHERE CLOSE TO THIS. BUT
THESE ARE THE THINGS THAT
HAPPENED IN IN BEING SHORT
SQUEEZES
YOU KNOW THIS IS THE MARKET I
THINK CONTINUING TO HAVE THAT
ROTATION OF PULLING BACK ON THE
EPIC. CALL
OVERSHOOT INTACT AND KIND OF
START TO FLOW BACK TOWARD VALUE
AND THIS IS WHAT WE'VE BEEN
WAITING FOR.
>> YEAH I THINK ANYBODY WOULD
SAY THAT HIS HEROES WITH 42
EITHER ZACH SO THIS IS THE
INTEREST OF TIME
THAT WE FIND OURSELVES IN A
UNLESS YOU WOULD ARGUE
DIFFERENTLY YOU LET ME KNOW
WHATEVER YOU THINK ABOUT THE
CASE BUT YEAH, WELL WE'VE SEEN
IN SOME OF THE MOST RECENT
ACTIVITY
CERTAINLY AND I DON'T LIKE THE
WORD THAT YOU USE BECAUSE IT IS
ONE THAT KIND OF ALSO RESONATES
WITH ME AS WE CONTINUE TO TALK
ABOUT THIS. I'VE ALSO
APPROACHED IT FROM THIS THIS
MINDSET OF THE
DEMOCRACY IN CAPITAL MARKETS
AND IN THE EQUITY MARKETS, THIS
BROADER INSTITUTION AND AS WE
THINK ABOUT WHERE THIS
ATTENTION MAY NEXT AMONG
THESE TRADERS SPECIFICALLY
WHERE DO YOU THINK IT MIGHT
TURN.
>> I YOU KNOW I THINK RIGHT NOW
BUT DO WE I'D SAY ABOUT 3
QUARTERS OF OUR VALUE PORTFOLIO
WAS GREEN TODAY. WE'RE UP ABOUT
2%. A LOT OF THESE VALUE NAMES
HAVE A MASSIVE SHORT INTEREST
AGAINST HIM. I SAY KEEP AN EYE
NOW FOR A STOCK LIKE CAMPING
WORLD IT'S I'M NOT I'M NOT
ADVOCATING IT SOUGHT A
RECOMMENDATION. BUT YOU HAVE A
LOT OF THESE COMPANIES THAT
ARE. WHEN YOU
LOOK AT THEIR VALUATIONS AND
THEN YOU COMPARE IT TO THE
MARKET MULTIPLE AND THEN YOU
LOOK AT THE UNDERLYING
PERFORMANCE. IT MAKES NO SENSE
IS THE SHORT
SELLERS, THE PEOPLE THESE
THINGS DOWN AND I THINK YOU SEE
JUST AS IT IN A LOT OF PLACES
YOU SEE
JUST ISN'T IT IS DRAMATIC OF
DISLOCATIONS IN PRICE TO THOSE
THINGS BEING TOO CHEAP AS YOU
SEE WITH A LOT OF THESE HOT
TECH COMPANIES BEING TOO
EXPENSIVE AND WHAT OUR THESIS
GOING TO HERE IS IS WE BELIEVE
YOU'RE GOING TO HAVE TO SEE
SOME MEAN A VERSION BECAUSE THE
THING THAT MADE TECH BLOWOUT
LAST YEAR. YOU KNOW WAS WAS NO
COVID AND THE FACT THAT THOSE
WERE THE ONLY COMPANIES THAT
OPERATE THAT HE GOT
AN INTERRUPTED AND JUST ON A
COST BASIS YOU LOOK AT THESE
VALUE, STOCKS, THEY GOT
SLAUGHTERED
LAST YEAR. THEIR COSTS ARE
GOING TO BE SOME OF THE EASIEST
CALLS THESE COMPANIES COVERED
NOW WITHIN YOU KNOW 2030 YEARS.
YOU LOOK AT A LOT OF TECH
COMPANIES AND THEY'RE UP
AGAINST PRETTY
TOUGH CALL. IT'S SO ALL AND
THEN YOU LOOK AT THE VALUATION
SPREAD WE JUST THINK IT'S WAY
OVERDUE FOR A ROTATION INTO
VALUE IT'S LOOKING LIKE THAT'S
PLAYING OUT.
>> IN THE BACKDROP. YOU'VE GOT
THE S AND P 500 ON TODAY'S
RACING ITS GAINS FOR
2021. WHERE ARE YOUR PLAYS MORE
BROADLY GIVEN THE FACT THAT
WE'VE SEEN THIS THIS ATTENTION
TOWARDS INDIVIDUAL NAMES BE
SHORTED AS OF RIGHT NOW OR
EXCUSE TRACTION TOWARDS
THE SHORT WIESE BUT THEN
ADDITIONALLY FOR THE MORE BROAD
APPROACH HERE S AND P 500 THE
DOW. THE NASDAQ THERE ARE
GETTING HIT HARD A TIME WHERE
WE ARE IN THE
MIDDLE OF EARNING SEASON AND
PROFITS ARE GOING TO BE IN
FOCUS REVENUES, THEY'RE GOING
TO BE WATCHED VERY CLOSELY,
ESPECIALLY PROJECTIONS THAT
THESE COMPANIES PUT OUT ON A
GO-FORWARD BASIS FOR SOME OF
THE BIG TECH NAMES THAT YOU
JUST MENTIONED A MOMENT AGO AND
SO WHAT SPECIFICALLY ARE YOU
EXPECTING ON THE BROADER MORE
MAJOR AVERAGE SCALE THEN IN
REACTION TO SOME OF THE
INDIVIDUAL STOCK PLACE THAT
WE'VE SEEN.
>> AS FAR AS THE AVERAGES GO IN
MY IN. I THINK THAT THE NASDAQ
IS GOING I THINK IT IS A
STRUGGLE
THIS YEAR AND I WOULD NOT BE
SURPRISED TO SEE THE RUSSELL
2000 SAW ME OFF THE FLOOR.
AND THAT YOU KNOW EVERYBODY'S
LIKE OH. YEAH THAT'S BEEN GOING
ON FOR A WHILE I GRANT THAT'S
NOT GREAT NEWS. BUT I WOULD
EXPECT THAT
TO CONTINUE. I WOULD ALSO
EXPECT THE DOW TO OUTPERFORM
THE NASDAQ I JUST THINK YOU'RE
WE'LL SEE SOME MEAN REVERSION
THIS YEAR AND IT'S REALLY IT'S
JUST
REALLY OVERDUE AND EVERYBODY IS
SO USED TO JUST BE UNLEVERED
LONG AND BUILD UP THE NASDAQ
IN. YOU KNOW THE VALUATIONS
THAT INDEX AS A WHOLE GOTTEN
INSANE AND NOBODY WANTS TO SAY
THAT I GET THAT'S THE STOCKS OF
WORKED, BUT AGAIN IT'S JUST
BECAUSE RIGHT WHEN YOU SEE THE
SPREAD BETWEEN VALUATIONS GET
THIS WIDE FOR YOU JUST HAVE
DOUBTS RIVERHEAD AND SO
I'M NOT SAYING SHORT THE NASDAQ
AND GO LONG
SMALL-CAP VALUE BUT THIS IS
CERTAINLY THE TIME WE'VE BEEN
SAYING THIS YOU AND I HAVE
DISCUSSED THIS ON PAST
INTERVIEWS, YOU NEED TO BE
SPAWN SOME WINNINGS OUT OF THE
TECH SIDE AND AND REALLOCATING
TOWARD SOME OF THESE VALUE
NAMES IN THE RUSSELL 2000.
I THINK
THAT'S GOOD.
>> EVERYWHERE WHERE YOU NEED TO
BE EXACT IS VERY QUICKLY WHILE
WE HAVE YOU WE HAVE ONLY GOT
ABOUT 15 SECONDS LEFT BUT IN
TERMS OF STIMULUS AND HOW THAT
CORRELATES TO SOME OF THE
ADDITIONAL FUND FLOWS INTO THE
MARKET PERHAPS YOU EXPECT THAT
STIMULUS FOR
RETAIL INVESTORS, WE'LL
ACTUALLY SEE MORE OF A WAVE AN
INJECTION OF CASH INTO EQUITIES
MARKETS.
>> YEAH I MEAN THE TRANSMISSION
MECHANISM LOOKS PRETTY DIRE
RIGHT. I MEAN THOSE STIMULUS
CHECKS COME IN AND YOU ALL YOU
CAN ALMOST SEE THE IMPACT ON
THE BLOTTER AND YOU
KNOW UNTIL YOU REMIND ME OF 99,
BUT I THINK THAT IN A LOT OF
WAYS BECAUSE OF FREE TRADING
AND ROBIN HOOD AND THE
DEMOCRATIZATION OF IT'S GOING
TO PART SEE THAT AS FAR AS THE
RETAIL PARTICIPATION. MOM I
WOULD ENCOURAGE RETAIL
INVESTORS TO NOT LET THAT GET
THEM OVER EXUBERANT OVER
CONFIDENT BECAUSE YOU ARE VERY
LATE INTO AN
ECONOMIC CYCLE. RAN THIS BULL
MARKET HAS BEEN GOING FOR A
REALLY LONG TIME VALUATIONS
THE SKY YOU KNOW PEOPLE NEED TO
BE CAREFUL. BUT YEAH I THINK
THAT THE RETAIL INVESTORS HERE
TO STAY YOU KNOW I I THINK THAT
YOU'RE SEEING. I THINK YOU'RE
SEEING KIND OF A CHANGING TIDE,
THERE. I DON'T THINK IT'S GOING
TO CHANGE ANYTIME SOON AND I
THINK THIS IS KIND OF I THINK
THIS WILL BE PART OF THE
NEW NORMAL.
>> ZACH WE GOT TO THE SECOND
YOU MENTIONED CAMPING WORLD ALL
I COULD THINK TO MYSELF AS I