CNBC Exclusive: CNBC Transcript: Appaloosa Management’s David Alan Tepper Speaks with CNBC’s Scott Wapner Today
WHEN: Today, Thursday, September 13, 2018
WHERE: CNBC’s “Fast Money Halftime Report” – Live from Carnegie Mellon University in Pittsburgh, PA
The following is the unofficial transcript of a CNBC EXCLUSIVE interview with Appaloosa Management’s David Alan Tepper and CNBC’s Scott Wapner on CNBC’s “Fast Money Halftime Report” (M-F 12PM – 1PM) today, Thursday, September 13th, live from Carnegie Mellon University in Pittsburgh, PA
Tepper says he's about 25 percent exposed to the S&P 500, has been 'too cautious' recently
David Alan Tepper says that Tepper School of Business is like no other in the country
Tepper: Putting tariffs on China will impact currencies, but it might be worth it
Scott Wapner: welcome to Pittsburgh, we are live inside the brand new Tepper quad here on the campus of Carnegie Mellon university houses the David Alan Tepper business school it’s so great to have you, thanks for spending some time with us today. I know this is a proud moment for the university, but I really know this is an exceptionally proud moment for you personally. Talk about that.
David Alan Tepper: it is a very proud moment have you walked around the school
Wapner: I have.
Tepper: this building, this place, it’s a special place I think we have, this building which houses the business school, I think it’s the first place that really brings the idea of collaboration among different departments of the university to life just the building itself is only about 60% is business. It houses other things, including the university welcome center so we’re kind of putting a stake in the ground. We’re kind of walking the walk of a new way to do business, other people talk about tech and business together, this place lives it it’s built for it. So I think it’s the first business school that’s actually built for it
Wapner: what do you want students to take away when they come to school here in this new school, the business school, which is now housed here and get from the overall experience of being in the Tepper quad?
Tepper: I think the way business has evolved, you have to collaborate with other areas, you can’t be sallowed out like other business schools. When they come here this place has the largest cafeteria, eating space on campus that’s the largest auditorium. That’s a natural place for people to mix. I want people to take away that, if they come here to look at the school, they’re going to know that this is the place that does that and when they live it, they’re going to have that experience. So I want them to experience that collaboration between different departments that have a new way of doing education
Wapner: you gave a very moving commencement speech here not all that long ago in which you describe yourself as a kid from the streets of Pittsburgh, who had to work your way through college. How did this town, how did this place shape who you are today?
Tepper: well, I’ve often said this school gave me the tools to be successful so when I was here at business school, we were doing option pricing models and we didn’t have a book. We just had loose leafs that were fitting together. So this place has always been an innovation so I really do give this place yesterday it for giving me the foundational education, that led to future success.
Wapner: back in those days, could you ever have imagined all that you sort of went through to put yourself through school, to graduate from the business school here, that you would one day have your name on the school what does that feel like like?
Tepper: it doesn’t feel bad it’s pretty fricking cool. I mean with a are you going to say? It’s great stuff, listen, if you went to my neighborhood and you, you saw where I grew up or where I went to high school. It’s like impossible this is America. America is great. This American dream, it’s great stuff.
Wapner: you could given how successful you are, you could have anything. And you have had a lot of things but being able to come here and see your name spread throughout this campus, this beautiful center of town and what I know you and the university hope is a bridge to the community here the business community the entrepreneurial spirit that students can gather by virtue of how this place is designed and what it means to the campus.
Tepper: you walk this building, you know how large this entrepreneurial building is here
Wapner: it’s the largest building now on campus.
Tepper: probably one of the largest buildings in Pittsburgh. And the design of the building is really unique people have to come to this building to see it it’s just something different. It is like no other business school in the country. I don’t even -- you can’t talk about it, because you have to see it
Wapner: so your name resonates here I know that. It resonates on wall street, as you know we were just mentioning as we were leading up to the segment, what we call the Tepper rally. It was that day in February of 2010 where you came on cnbc and you talked about what was happening in the economy and if the fed got involved in the manner in which we now know it has, that in your words, everything was going to go up in fact, that has taken place. As we sit here, we’re not that far off from record highs in certain parts of the market. We are at record highs did you think that this was going to be this good in the market
Tepper: before you get to that, because I never like to go on the script this sort of thing, I was even before I was thinking about it, I just want to, because it’s on the top of my mind, the hurricane down in the Carolinas, because I have some involvement there now.
Wapner: I was going to ask you about that I want to put my thoughts and prayers with everybody as we get ready for this hurricane down there. I want to say that first, because it’s top of my mind and it’s kind of in my heart I want to get that out there
Wapner: yes, you have a big stake in the ground down in the Carolinas.
Tepper: I have, it’s amazing how fast a connection can you make to a region you we can talk about that later. You want to know something about the stock market
Wapner: yes, when you made the call, the Tepper rally, did you think it was going to be this good
Tepper: I didn’t know how good it was going to be. It’s a long time ago and I think I was, 2010 or 9
Wapner: February of ’10
Tepper: February of ’10 it’s even been better than I thought for sure no question about it.I actually was basically saying the qe was going to move the markets and we’ve had a lot of qe I’m amazed that there’s still qe going on in the world in Europe and such although we’re tightening now. There are definitely tighter conditions, so the tide has turned a little bit. The ecb is going through it a little bit so we’re kind of very late and in this, in this loose -- we’re kind of late and it’s the tide is just turning from being loose to being a little tighter. So you know, sort of a late-inning sort of game here.
Wapner: you went to the innings question, what inning do you think we’re in, in the cycle and the bull market. Others have opined, Jamie Dimon, Dalio was talking about the seventh inning what does David Alan Tepper say what inning we’re in?
Tepper: if you look at it different ways let’s say that, I’ll, there’s always these moments that you go back and forth and different things could happen, right if we -- if we do the tariffs on china, that’s going to make it a little bit tough on the market going forward. I don’t know if that’s an inning question or not an inning question, but it does get to valuations and where we should be if we put in a lot of tariffs and I'm not saying we shouldn’t or should I’m making it factually, that’s the case, I don’t know how that’s on the market and the other thing, if we don’t have it, we’ll probably have the questions how fast will the economy go because china is stimulating and they’re stimulating because they think the tariffs are coming so that’s, that might have a fact of pushing us over into higher interest rates. It’s getting a little tricky at this point in time if you ask me what inning we’re in, I think it’s late inning game and I’ll say the different way than the 6th, 7th inning because I don’t play it the way the other guys play it I can say it’s the eighth inning but you know what happens with baseball sometimes it goes extra innings. So if you look at the market right now, where’s the market now? You’ll ask that question next, if I don’t say it anyway so you know I can say to me the market is fair valued if you don’t have tariffs on china. Okay. But if you do have tariffs on china, the question is how high does the dollar go and then where will earnings be in that case then the market will be rich at this level.
Wapner: is that the number one worry you have trade, tariffs and what it means
Tepper: I think it’s an interesting question, how much is in the market it’s in the market 25% on, what is it, as I say it’s in the market 20%, because I don’t want to mix numbers that they’ll put a 25% tariff on 200. Okay or they’ll put some other tariff they’ll put a 25% tariff on whatever it is, $450 or 500 billion of goods, I don’t know if that’s in the market reason that matters, people say it doesn’t matter economically, it will move the currency. It has to move the currency. It’s just math and you know, you can, different people who are in power can scream and cry about it moving the currency it’s math. You put on tariffs, you’ll move currency you’ll move this currency. You move the Chinese currency, the European currency will move with it a stronger dollar and lower dollar earnings if that goes that way. Which is fine, that’s fine on a, if we have a strategy and we think china is I don’t know if I should be politically correct. Stealing our stuff is that politically correct?
Wapner: you usually aren’t.
Tepper: I decided no, no politically correct. If they’re stealing our technology, we have to do something about it I’m not against that you know trying to figure out if they are somehow borrowing some of our best stuff. Permanently borrowing some of our best stuf that’s how you get them to stop. And this is very blunt what they chose. I’m not a proponent of how blunt it is. But it maybe it’s right. Maybe we should take a little pain if it happens that’s just a cost because we’re talking about the future of our country. And I think, you now trump has always had this in his mind. So I think it’s top of his mind. It might be right. So I know people criticize it one way or another but how do you get them to stop with the technology? You know, it’s, it’s a really interesting question I put it back to you how do you get them to stop?
Wapner: we’re going to find out
Tepper: what’s the way -- it’s interesting.
Wapner: so in light of all of that, are you more exposed to u.S. Stocks than you otherwise would be less where are you? How much exposure do you have to the u.S. Stock market?
Tepper: I probably don’t have enough exposure I’ve taken down my exposure. So I’m still long. But you know, not -- I would in percentage terms of s&p-type exposure, might be 25% or something of that. And that’s been wrong, because the market has been very hot and the problem for people like me is I’ve had that express with long individual stocks and short you know, futures of some sort or the market in some fashion. And quite frankly our stocks have not done that well this quarter. Which you probably know, you’re going to ask me next or something like that, right
Wapner: we’ll talk about individual stocks, but you say 25% exposure to the s&p
Wapner: some might hear that and say wow, Tepper is only 25% exposed to u.S. Stocks historically, though, where are you usually around for --
Tepper: I’m not usually anywhere. I’ve been zero, I’ve been negative, I’ve been positive I’m not sure what happens with the tariffs and I describe the market to you overall. A fair-valued market -- if it’s a fair-valued market historically fair-valued markets will go up 8% the next year that’s what they do. One year from now if there’s no tariffs and everything is fine, that’s what you would expect, 8% growth from right now. That should be great you should be totally exposed because it’s a good return however if you you put the tariffs, 25% of $500 billion, if they don’t intervene. If they don’t intervene, the Chinese don’t intervene, you could argue for the currency to go up into the high 7s, towards 8, just mathematically.
Wapner: do you think we’re going to get a deal with china and if we do what do you think it could mean for stocks? Some think it could mean as much as a 10% pop if we get a trade deal with china.
Tepper: I don’t know what the market is discounting 10% would be a bit too much in my mind. Because I think it’s more like fair value right now but you could get, as I said, extra innings happen. Markets go 10%, 15% over value fair value doesn’t mean you can’t go higher, it just means you have to be cautious. The other side of that is if you have the china stuff you’ll go down you know, so and then correcting to that currency if you get a 10% move in the Chinese currency or 15% move on the Chinese currency, a 10% move in the euro at that point in time, what does that mean in same dollars you’re bringing home, you know around the world. Because you’re going to get different moves in different currencies against the USA 50% of the s&p to put a number out there is across the world, that means earnings are going to be down because of that. You have to discount that in the price of the stock and I can guarantee the market is not doing that that’s the mechanism that the market would be challenged if that happens, but, look, it’s a late-inning game, an early-inning game. In ’09, we were out there, nobody else was out there, 100% invested, we made a lot of money. Now I’ve been too cautious I think recently maybe I have too much money. I don’t know so --
Wapner: are you sitting on some cash, do you have --
Tepper: yeah. I have cash I can put to work.Listen I can change things very fast, okay, if we did something, china was solved, somehow which I don’t think is so easy to do. It may be this, we may have to get used that the tariffs just may be on, okay? Then there will be an adjustment in the stock market. Whatever it is, a 5%, 10%, to whatever, 15%, 20% adjustment. Then you’ll move up from there and look, that’s what will be. You know whatever that adjustment, because the currency adjusts, that’s what will happen if that’s the way it goes.
Wapner: are you surprised that the market has seemingly ignored almost anything that has punched it in the gut? Or the face? Whether it’s trade, North Korea.
Tepper: I’m a little surprised at the level it is right now. Okay a little surprised I’m not totally surprised. But a little surprised like I said, I don’t think everything is discounted in this price right now. I do think if you do get -- again, I’m, listen, I’m a very patriotic American citizen, okay I do think we have to protect our national jewels, our technology so this is a very serious matter when you have very serious matters, sometimes you might have it take a little pain it’s just the way it goes. And I don’t know if this is the right strategy or not. That we’re taking, but we may have to. If it is the right strategy, it’s the right strategy. And we got to make a point I think that that’s not wrong because it’s been going on, I mean listen, as you asked me, trying to avoid it you asked me about some of my stocks, micron. Micron has a very famous case where they stole technology in Taiwan
Wapner: been getting beaten up a lot lately.
Tepper: I’m talking about the technology stuff. Absolutely happened in Taiwan with a Chinese basically were trying to steal technology from micron that can’t happen. We can’t allow that to happen. There’s other cases across the country I could bring up and stuff. We have to figure out a way to stop them and there’s been other things where they force the technology transfers I don’t know if this is the right policy but attacking it is not wrong. I think that is probably right policy
Wapner: so as you look at the president’s policies, there were times where were you exceptionally critical of president trump. Where are you now? Are you still how much credit do you think he should get from where the stock market is today?
Tepper: I said a long time about the deregulation, I said I thought that was a good idea and I thought it released the animal spirit. I said that in the first quarter after he was elected so the deregulation, I thought was a good idea. Some of the tax things, you know, were good and some of them were not so good a little too much I thought. To erase the deficits and too much tax cuts in the time of growth I don’t think we needed it necessarily. So on, I haven’t been as critical of some of the economic policies as I have been about other policies but let’s just talk economics, because this is an economic show I have been critical about some other things with this tariff, I don’t like idea of tariffs, I do think we should really hit them hard on how technology is transferred and stop it. So I’m not a big fan of tariffs in generally but I am a fan of doing something. So and I’m not in that seat. So I got to respect that he’s in that seat and I’m not. I wouldn’t necessarily do it that way but I don’t have all the information he has.
Wapner: if we stick to economic policies, do you have a problem with the deficit where the projections are?
Tepper: well it would be a lot less if they do the tariffs, we could collect the money from the tariffs. But yeah, I do, I do have a little problem with it I don’t think we needed to do the tax cuts the way we needed to do these tax cuts as much I do think we didn’t have to make it as high. They matter, they matter at some point. Don’t matter yet
Wapner: is there going to be heck to pay on the other side? How long into the future is it going to matter? Projections are being moved up
Tepper: how do you spell heck is that h-e-c-k?
Wapner: I was going to let you say the other word
Tepper: you don’t say the other word?
Wapner: you can get away with it, I can’t.
Tepper: is it like h-e double hockey stick?
Wapner: are we going to be worried about it
Tepper: I don’t it a questions of when you say worried about it what does it mean does it mean because you have it does it mean higher debt levels around the world and lower economic growth, so far we haven’t seen it so are we borrowing economic growth now for what we could see in the future? I do believe some of that is happening right now with these tax cuts yeah, listen, it’s probably, when you talk about this stuff to me, everybody is probabilities, right you ask a question, it probably, the probabilities we’ll have to have some pay-back at some point. I’m not sure it’s going to happen that way. But there’s a higher probability we will with these deficits.
Much more with david tepper here inside the Tepper quad at Carnegie Mellon University, we’re back right after this.
Wapner: we’re here again live with David Tepper inside this brand new Tepper quad. Mr. Tepper cutting the ribbon on it just a short time ago. Steve Weiss our friend also joining us now. I want to ask you one more question on the markets before we get to the football stuff. The 10-year, is there a reason why the rates are staying so low, other than the fact that the central banks are still engaged, rates are negative elsewhere or is there an underlying economic fear we need to think about?
Tepper: I think you had, you know, just a, I think it is what you said already, a little bit of rates being low around the world. Also think that it’s sometimes the two markets are a little bit disjointed. So sometimes the bull market is a worrier. And they, it’s like one person who looks at the pessimistic side of life and the other person looks at the optimistic side of life. If the stock market is looking at the optimistic side of life, the bond market is looking at the pessimistic side of life. So what’s the bond market looking at? They’re looking at maybe there will be 25% on tariffs. You know, they were worried about emerging markets. They were a little more settled today with the stuff that happened in turkey today. I don’t know how long they’re settled for, but a little more settled today. So you know, some of those things, would affecting the yield lower. And so depending on what happens you’ll go different ways. If you don’t have those tariffs coming on, you know, yields -- and you can let the economy run and if you have the stimulus in china, you’ll probably have yields drifting up, whether they go to 3 1/4, 3 1/2, whatever. If you do put those tariffs on, you probably could have yields a little lower still. So, but I think you have it’s like I said, it’s like two people. One is little bit more pessimistic side. One is a little bit more on the optimistic side.
Wapner: alright. Let’s talk about optimism. Your Carolina Panthers are off to a good start. Beating the cowboys. You’ve got the game ball. You showed off some dance moves, they caught you on video doing that. That was a fun moment as well. How is this NFL ownership treating you?
Tepper: it’s great stuff. Listen, I think I’m the only undefeated owner in the history of the NFL right now. So we’ll see if we can keep that going. Listen it’s great. I’m having a great time with it. It’s, it’s great to have the platform also to do potentially charitable things down there. And it’s, obviously I’m having fun with it so –
Wapner: I know it certainly looks that way, they have a good football team. How do you think the league has handled the whole anthem issue? Has it gotten it right?
Tepper: how the league has handled this whole anthem issue? Look. Let me just say this. Away from that, you know, I’ve gotten to know some of the players down there, and I’ve gotten to see the charities that these people are involved in. So whether it’s you know cam newton foundation or Tom Davis, or if it’s Greg Olsen or if it’s -- a lot of people just, you know just contribute, you know Yokiki does stuff – you know, the list goes on and on of panthers who are involved in the community down there. So I think there’s a lot of good people. So I don’t know, if I was going to do one more thing, I would say -- that just to put out the community activities of what the players do, and how involved some of them are in the community -- and a lot of them are involved in the community -- would be a great thing I think, so know, you have a person, you know maybe like a Torrey Smith who does stuff, his father was in the military for 20 years, and he says stuff on the basis. So you got -- he does other stuff in the community. So you’ve got a lot of people that do a lot of good things. So I think maybe the league could do more. Maybe they can, maybe they can’t. Saying how good – you know, how much good the players do. So that, that, you know, in that respect. And get that message out more.
Wapner: the commissioner works for you guys. Has he handled it well? We’re still talking about the anthem issue, which –
Tepper: we’re talking about it? I wasn’t talking about it. You’re talking about it –
Wapner: everybody is –
Tepper: everybody? There’s a red-headed guy in d.C. That likes to talk about it. But I don’t want to mention his name right now. You know, it’s one of those things -- I told you I didn’t -- economically -- I told you I -- I talk –
Wapner: everybody knows who you’re talking about.
Tepper: well I don’t know -- Howdy Doody, who is that?
Wapner: do you think he’s taken the narrative about what this was all about in the first place?
Tepper: what do you mean by that?
Wapner: do you think he’s changed the narrative, he’s made it about anti-patriotism against our armed services? You’ve laid out --
Tepper: it’s the biggest pile of bull-dingy ever. These are some of the most patriotic people and best people, these are great young men. So to say that is -- it just it makes me so aggravated and angry. Ok? It’s just wrong. It’s just dead wrong. You know -- it’s not that anybody is unpatriotic. By the way, what I want you to do right now with me – what is it, what is it the pledge of allegiance? Do you know the pledge of the allegiance to the flag? How’s it go? You know it? Say it. Go ahead.
Wapner: I’m not going to say it right now.
Tepper: I pledge allegiance – I’m going to do it. I pledge allegiance to the flag of the United States of America, and to the republic –
Wapner: and to the republic.
Tepper: for which it stands.
Wapner: one nation
Tepper: under god.
Wapner: justice for all.
Tepper: justice for all. So some of this stuff was about being “justice for all.” it’s this pledge of allegiance. One of the most patriotic things can you do. It’s about justice for all. Now listen everybody is standing this season because I think people understand this, it’s what you do in the community, it’s what you do out there. And we have a lot of good guys, the players are good guys, who do a lot of things out there. So I think if I was going to make -- I’m not criticizing anybody, but we could do a better message saying how much people can do good in the community. That’s what I would want to see happen. Ok?
Wapner: we were a good duet, by the way on the pledge.
Tepper: you got the pledge!
Wapner: I did.
Tepper: I was surprised you knew that.
Wapner: well, let’s talk individual stocks. I want to do that before you have to get downstairs.
Tepper: I didn’t waste enough time that we didn’t have to do that?
Wapner: no. You didn’t. Facebook. You’re a big holder of Facebook still. What’s going on with Facebook? Are you as big a believer today as you were prior to the Analytica stuff?
Tepper: well, like I told you, we have, we reduced our positions across the board, I mentioned that to you before. So we probably have you know, our whole book -- you know we probably took down 30% at some point. The equity part of our book. Almost across the board for maybe one or two names, including Facebook. It’s not the Analytica stuff that’s more concerning. It’s some of the other stuff with margins and what’s going on there. But look, the stock still trades. It looks like it’s trading 16, 17 times next year. It’s kind of cheap in this market for the growth rate. You know, so we’re still holding on as big as we were. As I said, we reduced positions wrongly across -- well, maybe wrongly or not, because some of the stocks we own went down. But, yeah. So we still Facebook. But listen, we’re not as enthusiastic as we were before, but it looks kind of cheap at the levels – I don’t know where it is today.
Stephen Weiss: when you look at Alphabet and Facebook for that matter, how much do you have to take into account or do you ignore what comes out of d.C., like with Jeff Sessions in terms of okay now we’re going to look at social media and technology companies, which have been unbelievable job creators and fast growing? So do you think that’s just more you know just pablum coming out of d.C. Or is --?
Tepper: you tell me how that gets effectuated. What can he actually do? I mean, it’s not so easy to actually do stuff. So, I mean it’s a certain amount of noise. It may effect the stock a certain way and hold it down, but when really get down to it, we go and try to figure out what can they do. It’s very hard for them to do anything. I mean --
Weiss: a long time off.
Tepper: yeah. It would be tough.
Weiss: let’s talk about battleground stock that’s turned out to be a battleground stock which is micron. And so you had another downgrade from the third-tier firm. I know that you’ve done a ton of work -- what do you think of it here? Do you think capacity is going to be an issue or not in the next six months?
Wapner: has it gotten unfairly punished?
Tepper: what’s that?
Wapner: has it gotten unfairly punished?
Tepper: yeah. I mean, we obviously think so. Because it’s one of the stocks we haven’t reduced as much. So it’s become -- even though, it’s a bigger part of our equity portfolio than it was before. Although we did reduce it somewhat, so just less, it’s a bigger part of our portfolio. Yeah, I think, I think people aren’t taking into account an oligopolistic market, which it wasn’t before. There’s three players. When you see things, and signs like those three players acting rationally -- which matters a hell of a lot more, a heck of a lot more – I got that word heck right – a heck of a lot more than anything else, and the demand side. The demand side going to be good for a long time. Servers and the cloud and, if you have smart cars, I mean, there’s just a great future for this stuff. It’s, historically been the supply side that’s got this industry when you had 8 or 10 manufacturers, you had a lot of chaos out there. Now you have three. So what’s happened and what are people ignoring? They’re ignoring the delay in manufacturing additions of Samsung and Hynix that they may have not have delayed before. And that’s been the announcement. That’s the story. Oligopolistic power. Now we made an investment years ago in another industry way before the market called the airline industry. Because a big change into oligopolistic -- we were way early in that. You know we’re kind of here, we rode this micron up, because we’re still making money on it, rode it back down again. We believe in oligopolistic. We look at that stock and we look at $10 billion of cash flow this year, enough to buy 20% of that stock back in, we’re just starting to buy stock in September. Which is a heck of a lot, my new favorite word, heck. And then we look beyond that and see even when these stocks are downgraded – I don’t know what was this, what was the trough earnings in 2020 for this guy? If I looked at some of these -- I know the numbers, for the other firms.
Weiss: still cheap.
Tepper: okay, so I look at the trough earnings for the other firms, I look at numbers of $6 and $8. Those are trough earnings? Let’s see, trough earnings, if it’s $7, and I don’t where the stock is today, 42? -- I don’t where the stock is today, I’ve been busy? So we’re trading six times trough earnings -- is that, six times trough earnings? That’s not six times peak earnings, that’s trough earnings? That’s crazy. But I can’t – listen, there’s a lot of emotion among this stock. People have gotten, this is one of the most historically hated stocks in the world. I historically hate this stock. But there’s new management. You know, management that was with Sandisc before. New CFO, they’re buying back the stock, we’re talking about potentially, every single dollar at this price they should back into buying the stock. They could buy 20% of the market cap right now. You know -- it’s a little bit nuts. But listen the market goes through things, there’s moves in the market. You know, I can’t control those moves. And you know, we’re still very, very long the stock. And right now we’re feeling bad and we’re not happy. But we’re kind of sticking with it. And sometimes I get in the mood by the way in the china thing, that nothing else, I’ll sell everything else, get rid of my hedges, all micron and wait for the market to figure it out. I get in those moods sometimes. I said, I’m selling everything, and sometimes I tell people there I don’t need you, either. But I don’t want to -- don’t worry about that, guys, I’m just kidding around. But I’ll just own the stock and wait until –
Weiss: -- I still remember you telling me to buy American Airlines. You owned all the airlines, maximum positions, into the bankruptcy. I said “is this guy crazy?” it turned out to be the best call. I think --
Tepper: Oligopolys. Oligopolys. People don’t understand the power.
Wapner: thank you so much. The good folks down there – you’re the star. This can’t start without you. Thanks for your time. We really appreciate you spending this much time with us today, and congratulations on this beautiful new building.
Tepper: thank you so much. And it’s a fantastic building. Everybody has to come see the building. And every student that is looking at a school, you got to come here and look at this thing. This is the real deal. Versus other pretenders out there.
Wapner: David Tepper, ladies and gentlemen.