Daytona Champ Finishes 10th at Fontana, Names 2 Stocks He Likes/Owns

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On Sunday, 2018 Daytona 500 winner Austin Dillon participated in the Monster Energy NASCAR Cup Series Race at Auto Club Speedway in Fontana, CA. Martin Treux Jr. won the pole and swept the stages, becoming the 1st NASCAR driver in history to accomplish that feat. Dillon finished 10th, for his 2nd Top 10 of the season. Prior to leaving Los Angeles for Fontana, JohnWallStreet had a chance to connect with Dillon to discuss a few names within his personal stock portfolio, to find out why a 100-year-old company would look to sponsor a car and to ask why he’s still racing in the Camping World Truck Series.

JWS: When we last spoke to you in September, you mentioned that Nintendo (NTDOY) and Cabela’s (CAB) were among the names in your personal portfolio. NTDOY is +25% since Sept. 30th and CAB was acquired by Bass Pro Shops at a 19% premium to its closing price on September 30th. Can you tip us off to a few other names that you like within your portfolio?

Austin: Dow (DWDP) is probably my favorite company. They’re huge behind STEM and have so many engineers around the world building great products. I also have stock in Coca Cola (KO), it’s a good company and I’ve always been a huge Coke fan.  

JWS: In addition to DWDP, Bass Pro Shops and American Ethenol (Growth Energy), AAA is a sponsor on your car. That company was founded in 1902. What are they looking to get out of a NASCAR partnership?

Austin: The youth movement is big to them. It’s a very old brand, but they want to let the younger demographic know about how many people they help service across the U.S. NASCAR is doing a good job of showing the youth movement (amongst drivers) and catering to our younger fans.

JWS: You recently participated in a Camping World Truck Series race. You’re a Daytona 500 Champion. Why are you still racing on that level? 

Austin: We had a new partner come in, an app (GoShare) that wanted to run in truck series. They came up with the idea to do it in the truck series because they’re kind of like an Uber for truckers. So, if you want your house moved, you can call them instead of calling a moving service and anyone with the right equipment can come and help move your stuff.

Howie Long-Short: Auto Club Speedway is owned and operated by International Speedway Corp (ISCA), a publicly traded corporation that also owns 12 other tracks including; Daytona International Speedway and Talladega Superspeedway. Other assets include Motor Racing Network (nation’s largest independent sports radio network), Americrown Service Corp. (concessions company) and Daytona One (retail, dining and entertainment development). On January 25th, the company reported full-year 2017 revenue ($671.4 million) grew to levels it hadn’t seen since ’10, sending share prices up 10.6% (to $45.30). Shares hit a high of $47.15 on February 1st, before settling back down to $44.25 at Friday’s close.

Fan Marino: You’ve been on a whirlwind media tour since winning at Daytona and mentioned that your favorite experience was doing Shaquille O’Neal’s podcast. As a 4x NBA Champion, did Shaq have advice for you?

Austin: He said, “take your mother out to dinner with your wife and take the trophy with you, after dinner leave the trophy with your mom and go and get like 5 or 6 more.”

Editor Note: Austin has not yet given the trophy to his mom, he’s holding on to it a bit longer; though he has plans to in the future.

Editor Note 2.0: Austin has a YouTube show, BarnLife. You can check out previous episodes, here.

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Dillon Returns #3 Chevrolet to Victory Lane, Discusses Personal Stock Portfolio

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Austin Dillon, the grandson of Richard Childress (he races for Richard Childress Racing), won the 2018 Daytona 500; winning The Great American Race in the #3 Chevrolet (GM) car, 20 years after Dale Earnhardt Jr. broke his career-long draught at the 2.5-mile track. Run in front of a sold-out crowd (101,500 reserved stadium seats), Dillon used a “last-lap, bump and run move that was absolutely Earnhardt-like” to win the 60th edition of the Monster Energy NASCAR Cup Series season. Austin follows the market closely and shared some insight on his personal portfolio with JohnWallStreet.

JWS: Do you personally invest in your corporate sponsors?

Dillon: Every sponsor that I have, that is traded (DWDP, GIS), I have stock in. It works well. You can build together. When you are running well, they are doing well. It’s cool how that works.

JWS: You mentioned that you do a little bit of trading for fun. Can you share a few of your holdings?

Dillon: Caterpillar (CAT), I had them as one of our partners for a while; my Grandpa did well on Caterpillar. Builders First Source (BLDR) has been doing well. Nintendo (NTDOY). I was playing Pokeman like crazy when it came out and was like I should get some stock, they’ve been doing well.

Can you give us one trade you’d like to have back?

Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $335.49). I had around 200 shares.

Howie Long-Short: While Dillon only references DWDP and GIS (as corporate sponsors he invests in), he owned shares of Cabela’s prior to the its $4 billion acquisition by Bass Pro Shops. Bass Pro Shops remains one of Dillon’s sponsors, but is not publicly traded.

Fan Marino: Dillon returning the famed #3 Chevrolet to Victory Lane was the biggest story line from Sunday’s race, but there were several other noteworthy headlines. Darrell “Bubba” Wallace Jr. returned a Richard Petty Motorsports car to the Daytona 500; the rookie finished 2nd, the highest ever finish for an African-American driver (and first time an African American has participated in the race since Wendell Scott in 1969). Danica Patrick was also competing in her last NASCAR race. She finished 35th after being involved in a Turn 3 crash on Lap 102. The wreck also ended the day for Chase Elliott, Brad Keselowski and Kevin Harvick.

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PC GAMING RIGS MAKING A COMEBACK; ESPORTS AND HIT GAME TITLES DRIVING RESURGENCE

The rise of Esports, higher quality laptops (features include: smaller chips, better cooling systems and battery technology) and hit game titles (i.e. PlayerUnknown’s Battlegrounds) are driving a PC gaming rig resurgence. Gaming consoles currently dominate the market; with Sony (SNE) and Nintendo (NTDOY) expected to ship a combined 28 million consoles this year, compared to just 7 million PC gaming units. That gap is expected to close though, as PC gaming rig sales are on pace to grow 6.6% YOY through 2020; despite the gaming industry as a whole expecting a 3.8% annual decline. Console manufactures Sony & Microsoft (MSFT) have begun releasing upgraded versions of their machines to prevent further gamer deflection.

Howie Long-Short: When NTDOY reported their fiscal Q1 (period ending June 30) profits and earnings in July, the company reported profits of $145 million with revenues that had increased 150% YOY (to $1.37 billion). The success of the Switch console (sold 1.97 million in quarter) and mobile games (up 450% YOY to $80 million in revenue), Pokeman Go and Super Mario Run, have driven the stock price up 60% over the last 12 months.

Fan Marino: PlayerUnknown’s Battlegrounds, an online multiplayer survival game, has been downloaded more than 10 million times since March and holds the record for most concurrent players on Steam (multi-player gaming platform). The game consists of 100 players that parachute onto an island, scavenge for weapons and equipment, and kill others while avoiding death themselves. The last player standing is the winner.

PC Gaming Is Back in Focus at Tokyo Game Show

EXCLUSIVE: NASCAR’S AUSTIN DILLON DISCUSSES HIS CURRENT HOLDINGS AND BIGGEST TRADE REGRET

The Monster Energy (MNST) NASCAR Cup Series playoffs continued Sunday at New Hampshire Motor Speedway. Kyle Busch won the ISM Connect 300, advancing in to the round of 12 in the process. JWS got the exclusive opportunity to sit down with Austin Dillon, currently sitting in 13th place, to discuss his corporate sponsorship partners, investment portfolio and a decision to sell (an equity) that he regrets. Austin finished 19th in Sunday’s race after being involved in an 8-car wreck.

How does your passion for sports drive the corporate sponsorship partners you have?

Austin Dillon: I’m a huge outdoorsman, so I started out with Bass Pro Shops (CAB). That was an easy tie-in for me with my hunting and fishing background. From a racing standpoint, I used to be with AdvoCare and their Rehydrate product. I enjoyed using the product. We won a championship with them. I’m now with Dow Chemical Company (DWDP) and their scientists and engineers directly make an impact on our car through technological advances. 

Do you personally invest in your corporate sponsors?

Austin Dillon: Every sponsor that I have, that is traded (CAB, DWDP, GIS), I have stock in. It works well. You can build together. When you are running well, they are doing well. It’s cool how that works.

You mentioned that you do a little bit of trading for fun.  Can you share a few of your holdings?

Austin Dillon: Caterpillar (CAT), I had them as one of our partners for a while; my Grandpa did well on Caterpillar. Builders First Source (BLDR) has been doing well. Nintendo (NTDOY). I was playing Pokeman like crazy when it came out and was like I should get some stock, they’ve been doing well. 

Can you give us one trade you’d like to have back?

Austin Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $351). I had around 200 shares.

Howie Long-Short: Dow Chemical Corporation and DuPont Co., the 2 largest American chemical makers, completed a $130 billion merger in late August. As of September 1st, the company began to trade under the symbol DWDP. DWDP is expected to split into 3 separate companies (agriculture, specialty products and materials).

Fan Marino: Austin Dillon played for the South-East team in the 2002 Little League World Series. South East made the 2017 United States Championships and Austin was given opportunity to give the kids a pep-talk before the game. South-East ended up losing a heartbreaker to South-West, 6-5. Nolan Ryan delivered the South-West team’s pregame speech.