Market Cap Game Show: The King-Sharon Rule Debuts

25:57This is a good one. I know of the company, but I just have no real certainty on how big it is. I know that it is a market leader in obviously a mission critical industry. I'm going to go with a range of$65 to$85 billion. $65 billion to$85 billion. Charlie, have you ever been in a plane? Many times, David. I suspect you have, but some people haven't. There's a fear of flying out there. As you were describing their product lineup, it sounds to me like they make the parts that make the scary noises, like when you take off and then you're like, what is all this commotion under the plane? It's just the wheels coming up.

26:37I think that sounds like actuators to me. Flex capacitors. What was your reaction? 65 to 85 billion dollars players at home. You're thinking too, Charlie? Yeah, I think Jason's on the money on this one. I think it's in the range. All right. So you're going to go inside the range. Players at home, what are you doing? All right. If you said inside the range, give yourself a plus one because Jason gave a good range. And Charlie, you get the point, my friend. So the score is four to two and a half through the first half of this game. You know, one thing that makes Transdime unusual is its obsession with what it calls proprietary aerospace content.

27:15So this company is not trying to build airplanes. It's trying to own the tiny components inside airplanes that are difficult to replace, that are in some cases highly regulated and often protected by sole source positions like TransDime's the only one making this thing, people. And that's part of why investors have admired this business for so long. It's been a monster winner. Happy to say it's been on our Stock Advisor scorecard since we picked it in July of 2012. It's gone from$56 a share then to $1 ,277 a share now. The market cap, by the way,$72.55 billion. Did I forget to mention that? That's solidly inside Jason's knowing range.

27:55And that's a little bit more about Transdime Group. It's a company that sometimes pays special dividends. Interesting in that regard. Their founder, Nick Howley, one of the least famous great CEOs in modern business. He's been portrayed in books like Lessons from the Titans. I've still never read that book, but I'm darn glad I picked TDG for Stock Advisor. And I'm happy for Charlie that he said inside Jason's good range because that makes the game more competitive as we hit halftime with the score Jason for Charlie two and a half. How you doing at home? All right. Well, it's halftime for the market cap game show, which means our tradition started last year of tell a joke.

28:34Make us laugh at halftime contestants is nigh. In fact, I'm going to turn first to you, Jason, since you have the lead. This is really cheap halftime entertainment. Some people just use AI to answer these questions these days. Jason, tell us a joke nope this is this is ai free i'm going full-on dad joke and if you want to get specific it's golf dad joke so if you get it cool if not i understand but what's a golfer's favorite animal charlie i don't know what is a golfer's favorite animal good question i'm not sure david yeah we don't know well it's an albatross david think about it so you got a par four and a par five and a par three.

29:15If you make it in that number of shots, right, you make it in five shots, that's a par five. You get a par. If you're one below that, four shots, that's a birdie. Yeah. If you're two below that, minus two, that's an eagle. But the rare, the coveted three under is an albatross. Is that right? Now, mathematically, you can't make that on a par three because that means you would make it in zero strokes, which isn't a thing. Every once in a while, Well, you might see a par four that's drivable. You can make a hole in one on a par four. But usually it's a par five where you hit your second shot in the hole and you make an albatross.

29:52And I never have and I never will. Jason, have you made an albatross? I've made a lot of eagles, David, but I have never made an albatross. That's amazing. So that function is, I guess, a joke, but also a very educational one. Well, you know. Charlie, you and I now— Trying to grow the game, man. Trying to grow the game. You bet. Charlie, you and I now have something to shoot for. Players at home were not scoring the jokes, so you can decide what you thought of that as Charlie graces us with his joke. I will do that. Why did the Scarecrow win an award? Jason, why do you think the Scarecrow won an award?

30:27Because he was stapled to the chicken? I feel like it's on the tip of my tongue, but I just don't know. Because he was outstanding in his field. Ah. That was pretty well done. See, that's a better joke than mine. People would have given me a bogey for mine. Charlie gets the birdie. Don't talk yourself down. Mine was AI generated. There's no points for style here. You bring to the table what you can. I think this is very important. There are no points for style.

30:59Do you hear that? Sounds like breakfast is ready. Because Quaker's coming in hot with morning nutrition. 100 % whole grain oats. and a good source of fiber to fuel the rhythm of your morning and kickstart your day. And that sounds absolutely delicious. Fuel to start whatever's next. Quaker, official sponsor of FIFA World Cup 26. I, O, let's go! And now let's move on to the second half of our game show again. Jason Ford, Charlie 2.5, and on to stock number six. Charlie Travers, over the course of your employment career, what's the most annoying thing you've ever been asked to keep track of at work?

31:48Oh, gosh, David. You've worked in unregulated circumstances and in regulated circumstances. I'm going to say there are days where I feel like I'm the keeper of our TPS reports. So just compliance Word documents that must be retained for seven plus years or whatever the period of time is. And you have to have them. No one's ever going to look for them. And but you have to have them. Yeah. Thank you. And that's a great example. I would say every workplace. We're all in different different ones. There's a lot of overlap. It seems to have its own version of organized chaos. You've got tasks, projects, notes, deadlines, meetings, meetings about the meetings, documents, and over time, an entire category of software emerged to help teams stay on the same page.

32:42Stock number six is Atlassian Corporation, ticker symbol T-E-A-M, team. Atlassian develops collaboration and workflow software, including Jira, Confluence, and Trello. Tools used by organizations around the world to organize their projects and manage work. This company founded in Australia. You knew that in 2002. It's become a highly influential software provider in the modern workplace. Charlie Travers, what is your stated market cap range for Atlassian Corporation, ticker symbol T-E-A-M? Well, David, I think tech company market caps are challenging these days. It's been a volatile year in both directions.

33:26So Atlassian, I know a successful company. A lot of companies use their products, as you mentioned. I think for this company, I'm going to give Jason a market cap range and the listeners out there as well,$25 billion to$35 billion. All right. $25 billion to$35 billion, a robust but not world-beating market cap for a software provider. Jason, have you ever used Trello or Jira or Confluence? Do you use online? Do you use computers? We do use some of that stuff here at work, actually. I'm glad to know that. It is nice to know that The Motley Fool is a customer of Atlassian. We've talked a lot about it before.

34:09A company that I know of, I don't know a lot about. I mean, I haven't dug into it, but Charlie's right. Software companies, tech companies, it's hit or miss these days. You either are just taking advantage of AI and going to the moon or AI is killing your business. You said$15 to$25 billion? $25 to$35. $25 to$35. Yes, let's be very clear. As your game show host, I will officially repeat that so everyone knows it is$25 billion to$35 billion. So, yeah, I'm going to go with my gut here and disagree, and I think that it's lower. All right, so you're going to disagree outside the range, and you're going to press it with lower.

34:46Yeah. All right. And players at home, what about you? And Jason got it right. It's$22.09 billion, not that far below Charlie's pretty darn good range, and yet it was outside the range, and it was lower. Jason Moser, we're giving you another one and a half points up to five and a half. Were you standing up there at the tee going, I'm going to lick this ball. You just watch this thing go. Or was it eyes closed? This guy's making books in Vegas. That was such a good range. I was like, my word, it could be either way. But I knew it was going to be close one way or the other. You didn't have to press it, though.

35:21That was kind of gutsy. No one has yet pressed it and missed. We haven't had that King Sharon moment where someone only gets a half point because they said outside but go the wrong direction. Impressive. Got to love the press. You know, Atlassian was an unusual company from the beginning because most enterprise software companies build large sales organizations and send their armies of salespeople out to persuade businesses to buy our software. But Atlassian took a very different approach. Basically, the founders said, hey, let's just give our products out to software developers and engineers, the techies out there, and let's see them use them and then start to share them internally as tools that teams might start to pick up.

36:00and gradually their products have spread throughout whole organizations. So it sounds commonplace today, by the way, but 20 years ago, that was a pretty radical way to build a software company, and somehow it worked. It has been a stock under fire, though. Regret to say it's down 60 % from where it was last year. So this is still a long-term winner for Motley Fool Rule Breakers, picked by many other services, too, at The Fool. But, Jason, under some stress these days. Yeah, well, I mean, it's difficult. Well, I tend to believe that most of these companies that the market is eschewing today are actually going to be beneficiaries of AI.

36:36I think we're just not seeing exactly clearly the path there. But I think they're companies that are going to benefit from AI technology. They're going to make their businesses better. There will be some that get disrupted. But I think for the most part, these leaders of these companies, they're not dummies. I mean, they know what they're doing. You're not leaving this technology on the table, right? I think the market eventually will come back around. We'll all be watching. And in many cases, we'll be invested as well. Charlie, frustrating to have had a pretty good range and then not get the point.

37:06And then watch Jason walk away with like an extra half point. Like you made a pretty good call there. Yeah, but I'm playing Steph Curry here. All right, Jason, five and a half. Charlie, two and a half. How are you doing at home? All right, on to stock number seven. Jason, I know you're a sportsman. Are you a winter skier? You know, I was growing up, David, actually. Father, mom and dad took me, our family out to Park City, Utah for my very first skiing experience, by the way. That is a gorgeous place. You're spoiled for the rest of your life. I know. And I was, I think, 13 years old at the time.

37:39And then we made subsequent trips out to Colorado, you know, Copper Mountain, all that stuff. As I've gotten older, I don't ski very much. When I was courting my wife, I discovered she wasn't really very fond of skiing. So then that just kind of took care of that. That would make sense. So I haven't done a lot of skiing lately, but I really enjoyed it when I did it growing up. It doesn't have to be a good memory or actually maybe a bad one would be even better, Jason, but have you ever had like an especially memorable ski lift ride? Probably the first one where I wasn't really familiar with getting off of the ski lift and promptly was pushed off by the chair.

38:14And then I learned. I think a lot of us can relate to that. Because before you get skiing or snowboarding, before those mountain views, hot chocolate in the lodge. There's usually a ski lift involved. And once you're hanging a few stories above the ground with strangers for 10 minutes, yeah, interesting things could happen. And that first moment where you're like, how do I get off this thing? Would be something many people experience. Well, stock number seven is Vail Resorts, ticker symbol MTN. Vail owns and operates some of the most famous mountain resorts in North America and abroad, including Vail, Breckenridge, Park City, and Whistler Blackcomb.

38:52Its epic pass helped transform the ski industry by allowing skiers and snowboarders to access multiple mountains through a single season pass. And I'm about to ask Jason what you're... But wait! This is a throwdown. So that's right, it is throwdown time. And pencils out. Fools Jason and Charlie will now write down their best market cap range for Vail Resorts, ticker symbol MTN. And once they share their ranges, players at home, your job is just to pick the contestant you think made the better guess. You simply say, Jason or Charlie, and if you're right, score a point. And as they think of their guesses a bit more on how this works, if only one of these guys gets the market cap range right, well, of course, that correct guess will win the point.

39:42But what if both of them are right? Well, then the contestant with the tighter range will take the point. And if they're both wrong, supposing that should ever happen, then if they both miss, we measure proximity. Whose ever nearest parameter is closest to the true market cap will win the point. But again, players at home, all you have to do is say, Jason or Charlie, let me now turn back to you, Jason. It looks like your pencil is down. What is your market cap range for Vail Resorts? Well, I know this is a company that has been going through some tough times recently. A unique set of assets, but obviously a difficult time for its market.

40:22I'm going to go with - Yeah, AI, right? It's harming all these companies, right? Software, ski resorts. As we get older, we don't take as much risk like pressing right in the market cap game, for example. Okay. So what do you got then on that post-it note in front of you? I'm going with a range of$8 to$12 billion. $8 billion to$12 billion? is what Jason wrote down. Charlie, what have you written down for Vail? Interestingly, I'm in the ballpark as Jason, but a little bit lower. I wrote down a range of$4 billion to$6 billion. $4 billion to$6 billion. So players at home, it's very simple. If you like Jason's 8 to 12, then you say, Jason, if you prefer Charlie's 4 to 6, you say, Charlie, 3, 2, 1, say it.

41:07And if you said, Charlie, give yourself a plus one. The market cap for ticker symbol MTN as we speak is$4.84 billion right inside Charlie Travers' range. Charlie, I didn't ask you, are you a skier? I'm a winter sports guy, but I'm more of a hockey player, ice skater than a skier. Yeah. Fantastic. Have you ever owned ticker symbol MTN Vail Resorts? Is this in the Travers folio? No, it's not. I'm aware of the company. I like their assets, as Jason mentioned, but I've never owned this one. You know, one of the most consequential innovations in modern skiing wasn't a ski, a snowboard, or even a lift.

41:44It was that season pass that I mentioned earlier. They call it their epic pass, introduced in 2008, history will show, dramatically changed the economics of this industry because it encouraged skiers to commit before the season even begins. And so that model has proved so successful that competitors eventually responded with passes of their own. It's also been true, and this is a stock that I recommended back in the day. And like Atlassian, I regret to say, it started really strong, but it is lagged since COVID. In fact, I picked it at$46 a share in May of 2013, so it's tripled today. But the S &P 500 over those same 13 years is up five times in value.

42:24So it's ultimately, as of now anyway, been an underperformer. They also started to monetize summers. And so for some of these ski resort companies that could create a summer adventure, kind of a second. Yeah, a second revenue line. That's something that I found very attractive when I recommended the stock a dozen years ago or so. And I still think that's a great business model. Also, they're not making any new mountains anytime soon. So I continue to like this company. It's disappointing, though, to see how much it's underperformed in recent years. All right, stock number eight. Charlie Travers, you live here in lovely Alexandria, Virginia.

43:01I do. For how long? Just over 20 years, David. In a house? Yes. What's the most unexpected thing that you've learned about houses since becoming a home owner? Okay, that your windows can leak water on the inside from no apparent source of water. And I'll tell you, the remedy is not cheap. I have seen this in my own life as well. This is part of my lived experience, Charlie. Thank you. Yeah, you know, when we're younger, guys, houses seem simple. Four walls, a roof, some windows. Then one day you own one and suddenly you're learning about insulation, roofing, ventilation, moisture barriers, attic temperatures.

43:48And yeah, leaky windows, a whole world of things you never knew existed. Stock number eight is Owens Corning. Ticker symbol O-C. Owens Corning manufactures building materials like roofing shingles and insulation and fiberglass composites used in homes and commercial buildings, of course, industrial applications as well. The company has become one of the most recognizable names in residential construction and renovation. Charlie Travers, what is your stated market cap range for Owens Corning, ticker symbol OC? You know, like the OC. Like the OC. Good one, David. Wow. I find this to be a tough one.

44:27here. I'm going to give a market cap range for Owens Corning between$50 and$65 billion. $50 and$65 billion. Jason, I've already detected that you yourself are a homeowner. I am, yeah. I've been a homeowner since 2005 and have been there and done that, Charlie. I'm feeling you. Sheesh, yeah. Owen's corny, man. That's the Pink Panther insulation commercials, right? All sorts of stuff. We can talk about that after we've answered the question. But, yeah, we'll talk about that. So I obviously know the company, but I know it more as a consumer. I don't cover the business. I don't really follow it. As an analyst, not one I've dug into.

45:12Matty Jarkersinger, I think, actually recommended this in the dividend service at one point. I feel like I'm going to have to go with my gut again here, okay? I think that Charlie's range is just a little bit high, so I'm going to disagree and say it's lower. All right, so you're disagreeing. You're saying outside the range, and you're pressing with the extra half points saying it's lower. Yeah. All right,$50 to$65 billion. What about you, player at home? All right, you said that. And I'd say Jason pretty much killed this one once again. It is surprisingly smaller than I would have thought. The market cap of Owens Corning is$10.33 billion, and that is well below Charlie's range of$50 to$65 billion.

45:57Therefore, Jason, you saying you disagree with the range and it was lower gets you another half point, giving you a commanding lead of$7 to$3.5. Well, I can tell you my range would have still been way off, too, because I didn't think it was that small. Yeah, and you know, yeah, if you're picturing pink insulation right now, as Jason mentioned, that's not an accident. Owens Corning introduced its famous Pink Panther marketing campaign in the 1980s. The company eventually secured exclusive rights to use the character in its advertising. It's one of the more successful examples of a building materials company creating a recognizable consumer brand.

46:32There is power in that panther. and as jason mentioned yes a few motley fool services have been favoring this one in particular because of its dividend it pays a dividend yield of 2.4 percent which is effectively the interest rate you're getting paid for owning the stock over the next year if the stock just stays where it is 2.4 percent not a bad dividend yield for a long time long-standing company that's much smaller than i think any of us would have thought jason you said lower but you weren't thinking 10 were Were you? No, I wasn't. And again, kind of back to TransDime. It's like, this is mission critical stuff.

47:08I mean, housing is sort of the linchpin of our economy when you think about it. And even when it goes through challenges, I mean, the fact is we've got this huge housing market. A lot of these homes are 40 years and older. It requires a lot of upkeep and a lot of what, you know, a lot of what Owings Corning does. So, I guess maybe it's just kind of one of those lower margin businesses the market is just not giving enough credit to today. because of all of the focus on AI and whatnot. That may be. So you're also accusing AI of hurting Owens Corning. We're blaming AI for everything. All right, let's move on to stock number nine.

47:45Jason, let's go back to cars. There have been a few emerging themes randomly generated by this game show, and I would say food early on was one of them, but cars keep coming back. So, you know, a funny thing about automobiles is that most of us spend years driving them while understanding almost nothing about what actually makes them go. This kind of reminds me of our airplane conversation a little earlier. But, you know, one day somebody tells you your alternator is shot or the control arm needs replacing, and suddenly you're learning a whole new vocabulary. In fact, guys, I'm going to put you on the same team for this one.

48:19We're going to do a quick quiz. I'm going to give you three automotive terms and see whether you as a collective team can come up and give us an answer. Let's start with alternator. Charlie, Jason, can you explain in a sentence or so what an alternator does? Well, I believe the alternator is something that helps generate power for the car to keep the battery going, right? I'm going to take you a step farther and say alternator converts the direct current from the battery into an alternating current. And indeed, while the engine runs, it keeps that battery charged. And guys, I sound like I know it because I get to be Alex Trebek and Reidol, but I couldn't have done that without your help.

48:53So I didn't really know what an alternator was, but both of you did. How about a catalytic converter? That is something that's a little bit beyond my scope of understanding. I've got this one. The catalytic converter is part of your exhaust system. It sits between the engine and the muffler, and it takes pollutants out of the air. A lot, I think it even has like platinum inside. I'll keep going. It's commonly stolen by thieves for the metals that are contained within it. I have heard that. I have heard that. And you're exactly right, Charlie. So I had a little definition because I looked it up earlier.

49:27You did a better. I'm not even going to read my definition because you just explained it better with context than what I had. So clearly, obviously, the guy who is still Jones for the 1965 Shelby Cobra that's blue with white racing stripes. You kind of know your cars, Charlie. I'm going to tell you all a secret here. My first summer job between high school and college was delivering car parts from a warehouse to all the mechanics around the area. Wow. So they'd call in a brake job, muffler job, whatever. that call us, I need these parts, I'll drive it to them. Well, I almost want to launch right into the stock now, and you'll see why, but I have one more, so I'll just...

50:04Let's do it. I'm pretty sure Charlie's going to get this. I wouldn't have got this, Jason. I was going to say, if you could say brakes or something, that would be cool. Otherwise, just look in Charlie's direction. The last one I have here is the differential. I think that's what gives power in different quantities to the different tires, so they're not all spinning at the same speed at all the time. Maybe even a My Cousin Vinny shout out here with Marissa Tomei explaining the differential. This is so impressive. We need a new game show on this show that rewards just sheer flat out knowledge. In this case, automotive knowledge.

50:39Very well done, Charlie. I couldn't have done that. But yeah, it basically allows wheels in the same axle to rotate at different speeds when turning, which when you think about it is kind of necessary. You can't have wheels all going at the exact same rotational speed when you're turning. Wow, Charlie, that was impressive. Well, stock number nine is Genuine Parts Company, ticker symbol GPC, Genuine Parts, best known as the parent company of Napa Auto Parts, supplying replacement parts and industrial products through thousands of locations across North America and beyond. Charlie, did you work for?

51:12They would have been a competitor. Okay. Got it. This company, by the way, founded in 1928. I always love corporate histories and hearing who started it when. And it spent nearly a century just helping keep vehicles and equipment running. It's basically been doing this all the way through over the last almost 100 years. Well, turning back now to my original contestant I'm asking this question of, Jason Moser. Jason, what is your stated market cap range for Genuine Parts Company, ticker symbol GPC? Wow. I am going to say$10 to$15 billion. $10 billion to$15 billion. Now, a glance at the scorecard suggests it almost doesn't matter what you do here, Jason, because I think you're up seven to three and a half, which means technically I don't think Charlie can win this one.

52:02And yet there's pride. There's what you did right at the end, which is what people tend to remember. They don't really remember how things started. There might be a peak moment in the middle, but how you finish, as I've always pointed out on the show, is so important. So in some ways, Jason, you don't care, but in other ways you do care. I always care. You always care. Whether it's golf, whether it's stocks, it's the market cap game. I want to keep it going until the end. So some of us are cheering for you. Some. Not all. 10 to 15, did you say? Yes,$10 to$15 billion. $10 to$15 billion. Charlie, I feel like we're talking to a guy who knows this industry.

52:38I don't know if you follow market caps. Is this a stock you've researched, maybe own? I have passing familiarity with it, yeah. And Jason's range is very close to what I was thinking in my head. So, yeah, I think it's going to be within Jason's range. All right, so players at home. Charlie has just said he agrees. Inside Jason's stated range, what do you say? And if you said inside Jason's range, give yourself a plus one. So excellent work by Jason Moser. And yet the point goes to Charlie, who recognized that a$14.81 billion market cap would be inside. That is a close one. 10 to 15. And so, Charlie, you get another.4.5 for you, sir.

53:19Well done. So you were competing against Napa? Yeah. That can't be easy. As it turned out, not well. Napa's still here. Well, you're still here, too. You know, I think a lot of us know the NAPA brand, but we may not realize how large the operation is. I mean, it's not just automotive repair shops, although that too, but industrial customers supplying replacement parts, bearings, hoses, lots of other things I can't define as an English major, not an engineer or a car guy. But, yeah, they're out there, factories, warehouses, businesses, helping them all keep operating. It's one of those hidden companies that quietly supports, I might say, a surprising amount of economic activity.

54:01You know, just looking at the last two market caps, 14.81 for genuine parts. And Owens Corning,$10.33 billion. These are both companies that have been around for like 100 years. And a lot of us know the brands, even if I have a hard time explaining what they're doing. But it's sort of, on the one hand, fun to remember we can be part owners through the stock market. On the other hand, I'm not sure you've been compounding massive gains over the last 30 years if you're owning GPC or OC. But what do you guys make of companies like this? It's tricky. You see the merit in wanting to own businesses like these that are the backbone of everything that we do on a daily basis.

54:41And yet the market is a fickle beast. The market, ever forward looking and loves the bright, shiny new toy. And obviously technology has just changed the name of the game for everyone. And a lot of these companies kind of get left behind. But I think, you know, on the flip side, when things get tough, these are businesses that I think have proven to be very resilient and can be rewarding to hold on to when tougher market conditions persist. Charlie, this is obviously an industry of some passion for you. Do you have any automotive stocks in your portfolio? Is this something that you invest in or not?

55:12They tend to be a little too sleepy for me, to be honest. Yeah. Yeah. Yeah. Well, it's going to be interesting to see how this one ends as we move on to stock number 10. I mentioned certain themes randomly emerged this particular week. And here we go again. And Charlie, when a company picks a ticker symbol that doesn't just spell out its name or maybe an acronym referring to the company, but instead the marketing or investor relations department realizes they can reserve a cute word that pertains to the company's business. As a longtime investor, does this positively endear you to that company in any way or possibly do the opposite?

55:54I like anything that brings a smile to my day. So if it's done well, I applaud it. Nice. And can you think of a few examples of companies that have a ticker symbol that just make you smile? I'm not sure if they're public anymore, but back in the day, there was a company with the ticker WUF. Oh, yeah. VMC. Yeah. Yeah. VMC, I think, got taken private by Banfield, I believe. I think so. So they're on my Mars. Wait, remind me what the company is? I think it was VCA Antec. VCA Antec. Oh, yes. They were a veterinarian. Yes. There we go. WUF. How about some others? Jason, Charlie, throw me some fun tickers.

56:27I don't think this one's still public now, but there was Natus Medical back in the day, and it was a company that was focused on medicine geared towards infants. Yes. And the ticker was B-A-B-Y. There you go. So that always made me smile. I just said fun earlier. Fun was a ticker symbol. Cedar Fair historically had the ticker symbol. Fun, of course, Southwest Airlines. Love. L-U-V. And how about L-O-V-E? Do you know who has that? I don't. L-O-V-E. Love Sack. Have you ever seen Furniture? Modular Furniture Company owns love. So, yeah, there's a well-worn path of companies that want to have a little bit of fun, maybe make Charlie smile on a given day.

57:02With their ticker symbol, we've talked a lot about cars, this particular market cap game show. We're going to do it again. Charlie, do you happen to know which company owns the ticker symbol R-A-C-E? Oh, I do. Is that Indianapolis Speedway? I believe it's Ferrari. Ferrari. Yeah, and that's not the actual market cap game show quiz, although that is good knowledge that Jason just brought. It is indeed Ferrari NV's ticker symbol, R-A-C-E. Ferrari, of course, designs and manufactures some of the world's most recognizable luxury sports cars and competes at the highest levels these days of motorsport through Formula One.

57:42The company's famous for producing fewer vehicles than demand would allow, which you would think wouldn't work in business. And yet it's built its brand through that exclusivity and prestige. Ferrari Envy with the ticker symbol R-A-C-E. And, gentlemen, this is a throwdown. Pencils out. Charlie and Jason are now going to write down their stated market cap ranges for Ferrari Envy, ticker symbol R-A-C-E. Is this in Euros? we're going to go with American dollars. American dollars. Okay. Although, as you guys are thinking, I'll just mention briefly the whole NV thing. Ferrari NV is the corporate name.

58:29It reminds us it was spun out of fiat during a broader restructuring that involved what became Stellantis and other entities. But the Netherlands, that's what NV is referring to. It's become a popular jurisdiction for multinational corporations because of its corporate governance structure and international business friendliness. So that's why you have Italian in culture, Ferrari, Dutch in legal incorporation. And we're talking about American dollars for our market cap, Charlie Travers. And you guys both look like you're ready. Charlie, turning first to you. This is obviously a passion. This is also the final stock of this market cap game show.

59:10and people tend to remember what happens right at the end. Who might win the race? Charlie Travers, what is your stated market cap range for Ferrari Envy? In U.S. dollars, I gave a market cap range of$40 to$60 billion. $40 billion to$60 billion. Jason, your pencil is also down just underneath it the Post-it note on which you scrawled what market cap range for Ferrari. Yeah, I'm glad we're on the same planet, at least. I'm a little bit higher. I said$65 to$75 billion. Feels like this is a company the market has really taken a shine to lately. Well, before I give the actual correct answer and who got the point, I just want to honor both of you guys.

59:50Because, first of all, once again, you were both shooting right near where this market cap is. It just reminds me how excellent are the people that I get to work with. What a delight it is to be with two guys here that I've spent over 10 years with at The Motley Fool. And to think that you're doing a lot. You're studying a lot about the market. You're being asked many things as advisors and analysts at our company or our sister companies. And you're pretty good. I mean, that's impressive. Yeah. So, Charlie, you had$40 billion to$60 billion. Jason, you had$65 billion to$75 billion. The market cap for Ferrari is$64.81 billion, which means technically it's in between both of your separate ranges.

1:00:33Neither of you got this. But this all comes down to longtime fool Bill Barker. We've named this the Barker Protocol rule. And it is whoever had their parameter closest to the actual market cap gets the point. Jason, by saying$65 billion on your low end, you were just millions away from$64.81 billion. Therefore, we're going to give you the point here for a hotly contested race around race. Well, David, it's like on the golf course, someone's going to give you a two-foot putt. You just take it. I'll take it. Thanks. Charlie, I noticed you did not specify a Ferrari as a dream car. If somebody gave you a Ferrari, would you accept it?

1:01:19Absolutely. I think they're absolutely beautiful cars. They are spectacular. And Enzo Ferrari founded Scuderia in 1929. This is another company, like several others this week, that are about to turn 100 this decade, so just a few years away. But his original business was there to support race drivers. It was the company's road cars that came later in the history of Ferrari. In a very real sense, Ferrari remains a racing company that also happens to sell automobiles. And the development and popularity of Formula One is not hurting them at all right now. I'm actually impressed by how large that market cap is because in a lot of ways, the automotive business is a higher cost, lower margin industry.

1:02:05And sometimes I'm surprised by how small some of our big auto brands are. This one is quite the opposite. Well, I think you made a very good point there. And they've done a good job in they limit the supply of what they produce. They really create demand and obviously create an awesome product. And there's something to be said. I agree with you, Jason. They've been excellent stewards of the brand over the years and have resisted the temptation to go down market with maybe more affordable but less prestige vehicles. So, you know, hats off to them. Yep. And again, Italian in culture, Dutch in legal incorporation.

1:02:42And we quoted that market cap in American dollars. Well, by my accounting, our final score. Again, this is the first ever market cap game show. And I think it worked. I enjoyed the extra half point. It turns out these guys are such aces, nobody ever lost a half point for miss calling it. It was used early and often, and it resulted in our highest scoring game we've ever had, because normally it's a zero sum around the number of 10. But in this case, Jason ate Charlie four and a half. And so I declare this version of the Market Cap Game Show over. I want to thank you both. But Jason and Charlie and I know that we're not playing this game for each other.

1:03:20We're playing for you. How did you score? Dear Fool, dear listener at home, we hope that you outscored all of us. The purpose of the Market Gap Game Show is to make more popular, I'm never going to say as popular as Jeopardy, but to make more popular market caps, the real value of stocks on the market that most people don't understand. Except that you do understand because you just played along with us for an hour. And I hope you scored at least a few points this week, maybe beat one or both of my competitors. Jason and Charlie. You both distinguished yourselves and helped make the world a bit smarter, happier, and richer.

1:03:57Next week is our June 2026 mailbag. My email address is rbi at fool.com. You can tweet us out as well on Twitter X at at RBI podcast. So your poems, your stories, your inspirations, your questions, all are welcomed. It's your Rule Breaker Investing Mailbag next week. But before we go, how about a last line from you, Charlie Travers? I want to thank you for having me on the show and congratulations to my good friend Jason for an awesome performance. Sticking with a car theme, real quick, I'm a movie buff and I will recommend Ford versus Ferrari, the movie with Christian Bale and Matt Damon from a few years ago.

1:04:39It's an awesome watch. I love that Charlie is just constantly creating value wherever he goes, including movie recommendations. I have not seen that. It might have been on a flight that I slept through at one point, but I know it's a great movie. Thank you, Charlie. Jason, a last line from you. Well, it's always a pleasure to get together with Charlie and with you, David, and I will vouch for that movie recommendation. I would have never thought, but we watched it one night and it was good. Nice. Yeah. So two thumbs up, and I think Charlie feels the same way. Listen, smarter, happier, richer, all of that stuff.

1:05:10But those first few questions, they got me hungrier, too. David, I'm looking forward to firing up the Traeger this weekend and smoking something good, maybe some ribs or a butt or something. But I'll report back as to how it all turns out. I am, too. Thank you, Jason. Thank you, Charlie. Fool on!

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