I had to do it guys. You can't go to LA and not cop the heat That's right guys. Today is my LA Fairfax Melrose shopping haul video I know that a lot of you guys were commenting damn That's Don't Island is so fire or the OVO store was so sick So today I'm going to be showing you guys what I got and why I decided to get the pieces We're also going to be including a few other products from them past month that I received I haven't been able to do the monthly favorites video So hopefully this can be in place of that now this video is sponsored by shop tagger If you don't know shop tagger is a great online extension where you're able to save items for a future date and be notified when they go on sale And the good thing about shop tagger is that it works for just about any website meaning that anything from this stone island to OVO or Zara or H&M or any type of stores that you like to shop at there will be a way that you can be notified when their items are going on sale It's super simple to install it literally takes under 30 seconds You look up the chrome extension you download it and honestly, it's just saving you money It's the smarter thing to do store. They had this fire pair of pants Unfortunately, they didn't have my size but I was able to find it on the website So actually just order them in the size I had and shout out to shop tagger for honestly It saves you a ton of money because it tells you when your favorite products are going on sale or when something you like is back in stock So if you haven't already make sure to go hit that link in my description to go check them out We're obviously going to start off with the stone island piece. I mean, there's not much else to say about it Like as soon as I saw it was I had to it was an instant cop So if you don't know stone island is just a big athletic but also leisure wear They've just been super fire over the past year Drake wears them anything that Drake wears I'm gonna be wearing but basically they have a store in LA I was seeing these like crewnecks all over the internet and so I definitely wanted to pick one up while I was there and On the racks they didn't have any but then I asked the guys like hey Do you have any of this in this color and they go back and they become out with four different colors that were all so Fire so I was mad debating between getting the olive one the black one those cream one and the gray one I decided that olive was honestly like the best spring and summer color to go with because I know that It's going to match just a bunch of different outfits. It's super versatile and all the other colors like you see everyone I was rocking with stone island in that color, so I decided to be a little bit different go with this olive And I'm so happy with it I will probably wear this thing until I graduate just because it's you know Super comfortable and it's honestly worth the price because it is a hefty price tag It's but it was an investment that I decided to make and I'm super happy with it So don't give me hate for that in the comments next up. We're moving on to the OVO store You know anything about me, you know how hype I must have been to be in that OVO store They honestly had so much heat. I was ready to just pull the trigger on everything But I was rational with myself and I caught a pair of shorts and a t-shirt both of which are just very simple But they're honestly super high quality and something I'm going to be wearing constantly. These shorts are so fire They're just very casual everyday shorts that you can wear with tennis shoes You can wear it in the gym You can wear it just to go out and hang out and then obviously this shirt is also fired with that subtle OVO Owl logo, I'm super happy with these purchases if you do end up being in the LA area I highly recommend checking out both of those stores next up We're talking about this hoodie from my friend that started this brand called homeland LA this design is honestly so fire You and the message behind homeland LA is super dope It's really just a creative community looking to you know inspire one another and be there for one another If you guys like these designs and are interested at all I will have them linked in the description with a coupon code. They're not paying me to say any of this I just really support the brand in the message that they're trying to send so go show it some love if you're interested Next up we have this fire jacket from the store called mango you saw it in my soho shopping vlog I decided to pick it up because number one I didn't have a lot of jackets in that color and number two It's really good quality and it's very versatile and very light most importantly So I knew that was an instant spring and summer pickup next We have this fire shirt from guests which I caught when I was in New York once again It's an awesome color way the stripes are totally in right now and once again It's just kind of a good shirt for going out or just casually relax I like to pair it with my black denim and then a denim jacket on top So super happy with that cop next up We're talking about the pants that I'm currently wearing right these are the essentials chino pants I decided to pick them up from the boy Jose Zuniga over at teaching men's fashion They started up brand focused on essentials and I've just been a huge fan of it Honestly, they're super comfortable They're super versatile because I'm literally able to wear it, you know with different outfits different types of shoes And it's become an essential like I also have one of their essentials t-shirt and both of those are just super high Quality and just good investments to make in your wardrobe So now you can't finish out a shopping haul without some fire socks if you are interested in checking out some awesome socks I will have them linked down below so make sure to go check them out Make sure to hit that like button if you guys enjoyed this video comment down below any suggestions You guys want to see and as always don't stress finesse


Hello everybody, welcome to my channel, it's Iwa from Bohemian Crafting and today I'm coming to share with you a very easy multi-pocket waterfall a notepad or a notepad holder. We do have beautiful pocket here at the front, then we do have waterfall, then we do have a little notepad and we do have pocket here and the notepad is holding here so it can be changed and it's wrapped in this beautiful simple book cover. It's very easy to make it and I started to create these little journals after visiting Chadham Suite here in Rodrem that's in hospital, section in hospital for breast scanning and all kinds of you know breast problems. I've been there on my first mammograph two weeks ago, week ago I received the letter that I have to go back because they found something so the time between I received the letter and I actually went on that second mammograph ultrasound and biopsy was very scary and I kind of yeah I kind of freak out and luckily it was just cyst so I do have all done and I don't have any other issues now which I am very very happy about that because it was a huge relief that I don't have anything worse than a cyst and all these ladies in that Chadham Suite here in Rodrem hospital they were all of them very very lovely really amazing amazing collective of nurses and doctors is there and they make everything to make their patients feel comfortable and calm you know do not freak out from everything so I decided to came up with to create something for the staff and maybe for patients who are waiting there so I came up with these little journals I do have quite a lot of these simple notepads they are six inches tall and four inches wide just cute little notepads and I was thinking something what I can you know hold in my hand what can hold this little notepad and maybe can have also something you know interesting like this waterfall and maybe because you know me I love to create pockets so some window pockets so here pocket here and pocket here and I do believe these cute little journals notepads can be carried you know anywhere we need so today I'm gonna show you how you can create it you're gonna need one file folder and some old fabric I'm using old denim fabric and I have to say that I really love the look of this one so some file folder denim fabric and for making cover I did use old envelopes or here I do have pieces from serali boxes so used anything what you have at home I hope you will enjoy the tutorial for chat hum little notepads I have used file folder this is pentaflex file folder I found them on amazon and link will be down below for those who want to have a look I don't have any affiliated links so I'm not receiving anything from this link it's just for you to make sure you know what I'm using this file folder measures nine inches here and 11 and three quarter inch here I'm gonna cut this file folder six inches here so I will have two long strips and cut and I've been washing my scoring board and it's still a little bit wet so today I'm gonna be using a ruler pencil and scoring tool I'm gonna be using this ball pen you can use a wooden pick knitting needle tweezers use something that will help you to score lines and I'm gonna start to make the marks so here I'm gonna help myself and I'm gonna draw a little line here kind of continuing this side up from this line I'm gonna score four and one eighth of inch and it's just because my little notepad it's four inches here in the width I'm creating a base for my pockets and I want to have it a little bit bigger so one eighth of inch it's big enough to have it there so my first score line will be four and one eighth of inch from imaginary this kind of going up so from this line and then second will be eight and one quarter first score line second score line behind this second score line I'm gonna grab my scissors and cut the paper I'm gonna keep there about one quarter of inch strip behind my score line and I'm gonna use that strip to glue it to glue a pocket here so I'm gonna cut the corners I'm gonna fold this and fold this third niche with bone folder and I'm gonna also take my corner punch and with that large one I'm gonna cut corners here and this top one like this so I do have a base for back cover from the left over I'm gonna create front cover we do have here this last piece that's gonna be holding the back cover here it's already pre-scored few parts and these two are making half inch so I'm gonna fold it there I'm creating half inch spine and here this one I'm gonna fold here where I just have created the spine and then I'm gonna fold it one more time so my first folding was here where I do have a spine there is one more score line so I'm gonna just fold my little page here one more time and create with that one quarter of inch spine here for a kind of ish so I do have little gap here I'm gonna grab my corner punch and cut this corner so this will be back cover here we have a spine and this will be front cover I do have here this second piece from my file folder I'm gonna take my yellow team and with my yellow team I'm gonna cut four inches pieces so four inch here and one more time four inch four inch from the opposite side now this left I'm gonna this should be kind of like square it's five and three quarter by five and nearly three quarter so it's nearly square oh it doesn't matter that much I'm gonna cut it to the five inches here I'm gonna start the score this is the five inch side so here I'm gonna create few score lines I do have here two and a half inch and I'm gonna make a mark every half inch every half inch and that's what I'm gonna score now I'm gonna take my ruler and I'm gonna make marks half inch from this side half inch from this side and again I'm gonna score this so half inch here half inch here half inch and I'm gonna and here I'm gonna take my scissors and with my scissors I'm gonna cut the line here oh maybe I should do I'm gonna do small marks here about two inches from the bottom to and half inch from the bottom here to two inches and same on the opposite side you do their angles so this is about two and two inches to and half inches oh shoot look at me not that big I do have this it will be moving part for waterfall I do have folded all I'm gonna flip it this way fold the last piece I'm gonna take one of these pieces here I do have two pieces which have this already pre-cutted corner from my file folder these I'm gonna keep for waterfall pieces for those pages here this straight piece I'm gonna take as my moving part in the back I'm gonna place it here match the sides here also fold this up and this up to make sure I'm sitting with that paper nicely slide it to that fold here I'm gonna grab the glue put the glue on this last part and here it's important to put the glue on the full this part especially in these corners because if you will don't glue them they can get stuck once it's moving down and up so make sure you will put nice glue nice amount of glue especially in the corners and on the edges fold it over and let it dry so I do have this one done I'm gonna also use my corner punch for these straight corners I'm gonna use that biggest one and I'm gonna punch the corners on this card which I just glued inside so it looks like a pack here on the bottom here these two cards I'm gonna take my guillotine and cut them in the size two and three quarters so it should be kind of like on half nearly nearly two and so I do have my four pieces prepared for waterfall they will go here on these pieces on these blocks I would like to create it in a vintage style so I'm gonna open all these pieces and use my distress ink and distress every single one of these I will also prepare covered papers so for my back cover I do have prepared this frame where I already placed also that acetate piece so then I will just need to place it here I will have pocket here and then pocket here to make sure this is visible as a pocket I forgot to use circle punch and create a little notch here so once it's placed here it's kind of showing that hey here is pocket and also I do have corner punched corners here so I'm gonna do same on my frame as you can see I did used also sewing machine and I did a little sewing all around of that frame inside so that's for decorating that back for waterfall I do have only this little piece which will be covering this base part and I forgot to create one paper for this one and here is one left over from my decorative papers I can either place it this way or this way well I will see so this will be over it and this will be here so I need to decide which one I would like to see I think this one I would like to see there so that's this and here I do have back paper which will be under my waterfall and it's in the size of this page and then I traced the shape I traced the shape of this page on my decorative paper then I have created a frame in it and I placed already here acetate back I used acetate back like this put double sided tape on my frame then placed my acetate back with this corner here then I did fast cut out all around my decorative paper that acetate back and then because here on the bottom it was open I used my sewing machine and I did sewing all around here on these three sides that way it was sewn here on the bottom and it makes beautiful pocket so I will have acetate piece from this side and this side as well and then I created same window here in this piece so now I can glue it here and I will have window from both sides and pocket in there because I did use that acetate back here before I will glue my pieces on my pieces I'm gonna be using distress ink and I will distress every single one of these pieces because I like vintage style so that will take a little bit some time so I'm gonna come back once all these pieces are distressed I do have all my pieces distressed and I can start to put them together so first it's going this one I do have here piece of double-sided tape when I glued down the acetate sheet I left a little bit of double sided tape here on the side so I'm gonna be using it to attach my frame here and at rest here here and here I'm gonna sewn with my sewing machine do you have sewn everything I'm gonna cut the threads now I can take a glue I'm gonna open this so here I do have pocket from this side now I'm gonna create pocket where I will slide this notepad that will be in the back so I'm gonna put the glue on this little fold and here on the bottom I'm gonna fold it down and glue my little pocket I'm gonna take the front part so I will have frame here and I will have the backside here this is gonna be first what I'm gonna glue down and it's just like decoration in the background and more like reinforcement so I'm not gonna create another pocket in there I'm gonna glue this to the front so I'm gonna flip it this way I'm gonna add double sided tape I'm gonna take off that backing paper and place it right here and I do have beautiful pocket here I'm gonna put together the waterfall so first I'm gonna place cardstock here I'm gonna fold this over put that little cardstock here and I can assemble these first I'm gonna glue these two cards which has that corner cutted and I'm gonna place that corner here I'm gonna actually glue that corner down my first card and second again I'm gonna glue the side with that cut that corner I do have my waterfall glued all together I'm gonna fold these till the last one last one up and go with these around they need to be big enough so this amount of cardstock will slide in there so I'm gonna fold these around it better bigger than smaller you will have problems to glue it down if you will make this one small these folds too tight so better bigger than you know later find that you can do that waterfall just because these folds were too tight okay so I can slide it up I will also place here straight away eyelet so I'm gonna measure middle of my card and place that eyelet so I do have that eyelet fixed I can flip it over put my folds on the back side grab my glue I'm gonna place here nice amount of glue not too much but quite a lot to make sure these will get glued properly especially these start pieces here and here they need to be glued once I will start to move this you know this will fall down so these start pieces these started sides they have to be glued nicely to a paper so they will don't get in the way of this and let this dry I can also take my back cover flip it this way place it with this fold right here much top and bottom put the glue on this last fold fold it over and glue it all together once it's all dry you should start to play with this and if it will get stuck especially here just make sure you don't get stuck here on the sides and play with it a little bit like few times come on come on come on to make sure it will work then you can close your book and we're gonna create a cover for the little book I do have cut that pieces for the cover of my book the measurement is six by four so I do have two pieces six by four from old envelope I also cut that two sides of these corners with my corner punch one side is straight with straight corners that will be side for the spine now I'm gonna glue this and create create cover for my book I know the spine is half inch so here on this little strip of paper I'm gonna create that half inch spine I'm gonna be using my ruler and create little template so from this line I'm gonna create half inch spine here again draw a line and now I know how big a gap I should keep between those two pieces of chipboard or cardstock I can take my glue and glue it down one side opposite side and because this is linen paper it's actually quite easy to also match how high I should place with my paper piece to make sure they are matching nicely now I can glue these over the ends I'm gonna glue this base on the fabric I do have here piece of cotton not cotton then in fabric so I'm gonna be gluing it on my little cover now I just need to let it dry so the cover is dry I also cut the fabric around and I used my sewing machine and I did just one simple stitching all around I'm gonna take this beautiful embossing folder and emboss the front cover with this chandelier so it looks like this it's beautiful how it looks on on fabric and now I can glue the cover on my little journal and I'm gonna let this dry and then just add a few little embellishments like here this leather strip add different papers and some small embellishments and you can have beautiful little journal with this waterfall holder and little notepad so I'm making these easy journals for chatham suit here in Rodin so I need to work a little bit on that mechanism and this is what we have created today that's all my sharing for today I hope you did enjoy it and maybe you will try these little journals made from one file folder thank you so much for stopping by today and spending your time with me have a wonderful time take care of yourself and I will come back soon bye


Hey guys, it's Nate, aka The Foot Accountant. Welcome back to the channel. Right now we are witnessing FIFA history with these insane packs and SPC content that is dropping right now as a part of the Black Friday promo. Road to the World Cup Player items. We've got the World Cup icons, the insane flashback, messy SPC, and the biggest pack ever. The Ever Grace FIFA Ultimate Team in the history of this game. A 100 player pack in the store just dropped a little bit ago and it's the biggest scam of a pack I've ever seen as well. So we're gonna take a look and talk through the insane content that is continuing to drop by the way. The SPCs are still going. We're gonna have another flash SPC here in a couple of minutes as I'm recording this video. There's a lot moving on the market. There's a lot of prices that are down, but there's also some surprises because of how insane the content was. It was even more insane than we expected. Fodder prices have gone up and a lot of those players have gone up in value. So I wanna break that down in today's video and talk you guys through what to look forward to today on a Saturday as well as the Black Friday content will slow down a little bit but there's still a lot of packs that could keep dropping and keep coming out. So if you're excited for the video, hit the thumbs up, subscribe if you're new. Let's deep dive right into by starting the store. Let's start with the store, right? All of the packs. This is something that we know Black Friday is always about and this is where the biggest history is being made right now inside this game. It's all the Black Friday packs. Of course, we've got the 10 coin packs that EA keeps dropping. Those are nice. I'll open that here in a second but this is the pack that dropped just a little bit ago that everybody's talking about because it's just crazy, right? 100 rare gold players and the player picks inside of it for the World Cup players. All items are tradable. 3,000 FIFA points, 250,000 coins which of course if you're buying a FIFA points, EA makes you think, hey, instead of getting 24 players for 2,000 FIFA points, I'm getting 100 for 3,000. It seems like a deal, right? Well, you look in the percentages, you see that it looks like a deal as well. You can pack the team of the weak players. You can pack the road to the World Cup players even though World Cup icon players as EA have said and as we experienced on the stream yesterday actually show up in the game as like promo cards. So they are packable and that's why it shows a percentage here. 15% for a road to World Cup player. If you compare that to a normal 100K pack, 3.6% but I'm telling you guys, I just watched one of my mods open and one of these in person highest rated car was 87 Trent, not good, right?  So opening with coins is a definite no-no and that goes for all the store packs except for the token pack. Now I opened that one, I think it's 75,000 coins. If you're really gonna go after the tokens or the swaps program, maybe you go after that one but I'd be very, very careful what you open with coins because it's gonna just drain your coin value and since right now there is so much content that is out there, I know I just opened a pack 10 coins worth. That's not that big, right? 10 coins versus 75,000, not that big of a difference but be very, very careful and I say this all the time, it is not smart to open packs in the store with coins unless maybe it's one of those foundations packs that gives a swap token and even then sometimes it's just worth it depending how many coins you have to put on the FIFA points. So I'd be very careful with that sort of stuff because right now everything related to this game content wise is coin drain to the insane level, right? We had the 89 World Cup Hero upgrade refreshed again yesterday. High rated fodder went to the moon. We talked about that on stream. Benzema went from like 55, 53K all the way to 64K. All of your fodder is going up because EA keeps releasing insane player picks like this mixed campaign bag player pick that includes Path of Glory players in it, right? And it's not that expensive but it's the 84s that are going up the most because you have some of these 83 and 84 rated squads in here. You've got the 85 plus upgrade that you can do five times, basically five times per two days and it's going to refresh. This mixed campaign player pick is going to refresh as well. And if you go through the live tab, the number of upgrade SBCs, the 81 plus double, right? You had an 83 plus player pick that was out at one point and 84 plus upgrade that's still there. You know, it's just, it's unbelievable the amount of SBC content that is there. And the reason why EA put all that out is because they're releasing all the insane packs in the store, but if you're not opening a ton of packs, it's going to drain the coins out of your club really, really quickly. And that's why I think you're seeing some of the prices on the market not bounce back as much as we thought that we maybe would. Now let's talk about the new cards that are on the game. Road to the World Cup player items. They of course were released yesterday as well and EA made a post about this and I'm going to show it from their website just to confirm with you. I tweeted this out yesterday as well. But these are not live cards. I know it's very confusing because we just headed out of a live card promo and we thought that these might be live but it is not true. They are not live cards. It's basically players that played well in their countries run of form up into their World Cup appearance, right? That's all that these are. They are one-time promo boost cards and as I believe right now, Footbin does not have them loaded into a squad. Actually, it's just, that's false. There it is. Road to the World Cup players. These guys are crazily rare on the high tier and Bappe today is one of the most rare cards in the game right now. He has five and a half million coins after in the first hour of today. By the way, these cards dropped in packs early. EA on their loading screen said that it was going to count down to 6 p.m. U.K. Black Fridays in years past half started early and they did end up starting the content early yesterday and that was confusing for a lot of people as well but these top tier cards, Sun and Bappe Marquinhos are very, very rare. I bought a Sun for $800 in coins. He only has like two pages of supply on the entire market. Marquinhos is super, duper rare. Modrich, White, Werner, all these guys have been bouncing around in price even with all the insane packs that we have in the store, right? I want to show you guys the supply. Like we're going to take a look at Tiananmen Sun. These guys are somehow so extremely rare on the market. It's crazy, right? I search up Tiananmen Sun, I go one page, I go two page and then that's it. It's literally two full pages with two extra cards. He's 850,000 coins. So we bought one of those before the content drop yesterday and it ended up being a really good move. I think he's going to end up rebounding back. Like I said that in Bappe, this might be the rarest card in the game right now. Only four listings on the entire market, severely overpriced, but I do believe that some people think these are live cards. I do think that some people are confused in that way. So just be very, very careful. Now looking ahead a little bit onto some of these, there are some leaks that are out there. I don't know if this is an SBC or if this is a player that's going to be in packs, but Sheriff did leak Busquets earlier in the day yesterday, he leaked a Sario Mane. Sario Mane is not out right now. Maybe there's going to be, I don't think this is a two week promo. I think it's just a one week promo. I'd have to double check that on the EA website. So I don't know if the menu release is going to be a sizable amount of players, but we have this Busquets, Zilinski, Tinkapi, and Monteeo, right? We already have Matias Nunez and Ben White in the game. So these are some more of the cards that are upcoming either soon or maybe with a team too, if that's going to happen with this promo. So watch out for these Road to the World Cup cards. They seem very rare, but I mean they're nice cards, right? Some very usable cards and here's some solid upgrades. Some of the upgrades are like not good at all. Like again, this Mbappe is literally almost the same card as the Inform. He just got upgrades everywhere else except for pace. So, you know, that's neither here nor there, but I think a lot of the hype isn't necessarily with these cards. A lot of the hype is with the content that is out in the game with the SBCs. The Messi SBC is absolutely taking the game by storm. And if you don't agree with me, go take a look at some of these other PSG player prices. This is what we 100% expected to happen as the Messi SBC was going to be dropped yesterday. Again, the value of the Messi, it's kind of mid, right? It's kind of mid, but since it is messy and since it's a messy with pace, it's got people excited, right? Sergio Ramos yesterday went from like 315,000 coins. He just was about 340K. Now he's all of a sudden coming back down a little bit. He's back to 317. Gold Neymar was like 260, I believe, and Gold Neymar went back up to around 280. I wonder if there is some panic right now on the market as people are seeing this insane 100-player pack. I honestly, I think that's what it is. People are seeing this 100-player pack in the store and they're selling cards to go and do it. So, that's not a very smart thing to do in my opinion. That's a huge gamble and a huge risk. And you're gonna end up losing coins on that, not gaining coins again, since all the players in that pack are untradable. But the messy SPC, we didn't see the five-star skills. He is still four-four. He does have medium-medium work rates and it's craftable, right? You get some tradable packs back. It's going to be craftable and it's out for a craftable amount of time, right? It's out for a week so you can kinda grind it. It's a flashback to his debut at the World Cup in 2006. So that's pretty cool and it's a messy with pace, right? And that's fun. If you look at the price, it is coming in at about 313,000 coins and according to people on Footbin, it is a 40% upvoted, 60% downvoted SPC, which I agree, right? I think we really wanted to see five-star skills or the shooting get a little bit higher on this card, but it is what it is. If you want this kind of cool, messy, then it's grindable. I think it's okay to go for it. I'm probably gonna end up getting it done because I absolutely love the messy card. But since the value of this SPC was not that amazing, the gold card still impacts. So that's going down. Actually, it's weird to say that as of today, Black Friday or yesterday, Black Friday, this messy card is its fodder. Isn't that enough to think about? 91s are around 60K. Messy is now considered fodder on this market, which is nuts. But since the SPC was just kind of okay and in the middle in terms of hype, this road to the knockouts messy exploded back in price from 1.1 mil up to 1.26, where he is right now. Now let's talk about some more cards that absolutely exploded yesterday with some of the prices that we saw moving up, right? Of course, SPC fodder has moved up a lot. And we'll talk more about SPCs again here in a second. But if you take a look at Amori and all of these best of team of the week cards, yesterday in the morning, there was a combination of the early lightning rounds, right? They dropped lightning rounds early yesterday. I think it was like four hours before content when they put the team in packs, maybe even five hours. I think it was four or five. And there was supply and panic selling that combined for a huge market drop. These cards went from 250K all the way down to 202,000 coins specifically this Tamori. And he went all the way back to 260. Now he's coming back down again, but that was the best place to make coins yesterday on a quick flip. And if you bought any of these cards, I know people in the stream were talking about buying Usman Dambelia at 100,000 coins. Will these cards maintain their price rise, their bounce back? I don't think that they all will. I do believe that Cancelo, Teo Hernandez, Erling Holland and some of these cards will not be able to maintain their price. And since they're still in packs for a number of days, they'll probably continue to drop off a little bit, but keep a close, close eye on those cards. Cause I think it was very interesting to see how much they bounced back yesterday and how much the cards that are in packs right now, the road to the World Cup cards, they moved a little bit, but not super insane amount. So guys, also what I would say with this market right now is as we have seen like the Tamorian, and since this 100 player pack, the Centurion pack has been dropped, I do think that this market is, it's just in a place where so many coins have been drained off with the price of where SBC Fodder is and so many coins are being taken off this game with how insane the content is, I would be very careful about holding tradable cards in your team unless it's for a quick flip. I know we say that all the time, but card prices are probably not gonna go shooting up after this promo, at least not this weekend, right? It's gonna take a little bit of time, and just like last week, if the content is not good, like we saw with PTGs, people will go out and buy cards and they'll invest and prices will go up a bit, but if the content continues to be this good, I'm worried about most of the market, but at least worried about PTGs and some of the new World Cup cards because they're still the most hyped, but I'm still worried for the rest of the market because again, people move on so quickly these days in FIFA because the content is so fast and updating so often that a lot of right wings were down big time because of this messy today, and are they all gonna bounce back fully to where their price was before? Probably not, just because again, this content is so insane and ridiculous, and one of the things I wanted to talk about heading into today is on Saturday, it's not done, and I mean, as you're watching this video, right, there's probably more content that has been released that you is not being shown to you right now we've got packs that are added to the code that are icon upgrade packs and hero packs, 86 plus base or FIFA World Cup hero player, and an 87 base or mid icon pack has been added to the code, so it's just like so many of these insane packs are in the game, now I would expect that to be an SBC, not something that's in the store, but it's just crazy to see where all the demand is right now and that's for the SBC content, which of course has made SBC fodder go bananas. If we take a look at fodder right now, 84s started the day yesterday at like 2.3, 2.5K, now they're over 4,000 coins, so many 84 squad requirements, 83 squad requirements, and so many other SBCs that are like 86 to 87 rated that people just use a high rated player, and then they go in and they buy some 84s to get it done, so your 85s are up a bit, 86s are really not moved that much, up 1,000 coins, 87s are kind of down, but then 88s when the World Cup Hero Pack refreshed, these guys were actually 70 to 80K on the game. You can see it here, some of the cards, like Ter Stegen was actually selling almost at 70K, even I think in the first 30 minutes after the content drop yesterday, all 88s were selling at that insane, insane price. I mean, I'm even looking at Benzema right now, 91 rated players are almost the same price as 88s, and how much sense does that make? Zero, 88s are 55K apiece, 89s are 51K apiece, but when people go into an SBC and they see, like in the Max 89 FIFA World Cup upgrade, they see that you need three 88 rated players, they go buy 88s, they don't go buy the 89s in the 90s and the 91s that are actually cheaper on the market, that's just kind of the way that people operate and they see those requirements, so that's why this page on Footbin, I'll leave the link to this down below in the description, so you don't know where to find it. It is one of the most helpful places to look at SBC fodder prices at any given time. Like I said yesterday on stream, I bought a couple of Benzemas and I know a lot of you guys in the stream did as well, we bought Benzemas right here, like 53K, he spiked above 60, and again, with the lightning round supply and a lot of those packs being in the store, being open still, you have this price coming back down again, I would watch fodder as you get into the daytime, maybe early morning hours as this video is going live. See if fodder is super low again, especially on the high tier end, because that's where it has the most fluctuation and the demand at this point. And maybe even 84 is, if somehow overnight we get a big supply as we see and 84s start to drop off, that would be something that I would keep an eye on and be interested in, is trading with the fodder, because that's where the demand is right now in this game. Now if you guys bought teams yesterday as well, I mean, you probably got some good prices, right? Because guys like Cristiano Ronaldo, guys like Virgil van Dyke, anything that was in packs, just kind of went lower in price. And again, I really do think that this 100 coin pack is dropping the market a lot right now as people are going out and buying that pack with coins, which again, I think is one of the most not smart things you can do with your account, but like look at Neymar, Neymar literally just a bit ago was 280K and now he is 250. So a combination of like sell off into the nighttime right now, the market is dropping a very healthy amount. So I've just be careful, like I said again, with holding tradable cards in your team because I just don't think that it's gonna pan out well over the next couple of days, unless you have some of these PTGs and even some of the PTG cards from yesterday didn't do that well. And I'm still holding some of my transfer list. And I would just say if I were you, be careful with these cards and sell them before the game that they are playing, right? Bruno Gimmerich is one that I think people are, people might be selling this card right now to go open that big pack in the store. And also because this guy is actually the lowest price that he has been by about 10K than what he was all of yesterday on Fridays. 275,000 coins, low 270s, 266 for Bruno Gimmerich. And of course you guys know how he was 400K early in the week. And these guys are still live and they're still getting upgrades. That's why I feel the most confident about this part of the market right now. Just because these guys, especially for the ones that played today on Saturday, like Alejandro Gomez was over 400,000 coins all day yesterday. Right now he is 396. He's kind of coming down. I still have some Kuti Romero. I guys just keep a close eye on these cards because if there's anything that I would be wanting to trade with right now if I was trying to flip cards, it would be these. It would be the World Cup, brand new World Cup cards, road to the World Cup. Or it'd be the brand new icons that have been dropped in the game as well. And if we were gonna talk about icons for a second, I can show you guys a crazy fluctuation that just happened recently. This Emmanuel Petit, brand new icon, World Cup icon, almost said road to the World Cup icon. But the World Cup icon Petit was about 400,000 coins earlier today and all of a sudden he just got super-duper rare and bounced up. These guys fluctuate a lot in price. Like if we take a look at his graph, you can see he started expensive, went down, down, down, 400K, and then rebounded and he's got sales. Like Footbin's gonna track some of these sales. 590, right, you can see. Even he got bought all the way up. He was down at 400K flat. You see some 390 fives in there. And then boom, started rising 600, 634, 550. So huge opportunities to trade with these brand new icon cards on this game with a lot of the fluctuations that are going on there. So it's just crazy, guys. And the market continues to move and the prices continue to move on these cards and they fluctuate a lot on the new ones. But also it's not going so well on some of the older ones. You did see some of the heroes that bounced back yesterday. Like Diego Forlan was under 600K. Now he is 660, Ococho's up over 100,000 coins. Rudy, yeah, I got Torres up like 200K. Lucio is 1.3 mil. Cool bounced back. Brawlin bounced back. Smollarek is up. Marquisio is more expensive than he was. So you've seen the market bounce back in those rare areas. But again, guys, I would just be very careful because of everything that is going on in this game all the coin drain that is happening. I mean, Ramos literally was 340, just an hour ago. And right now Ramos is back down to 319s, 320s. So I think that with this pack being in the store it's only been out for about 30 minutes as I'm recording this video. So that's why and my Hyunmin Sun just sold, man. That is not what I wanted. That is not what I wanted at all. I re-listed that card on accident right after the World Cup game finished between USA and England. By the way, GGs, this Hyunmin Sun is gonna probably go up somewhere around like 950 because look how rare this guy is, man. It's absolutely crazy how rare some of these cards are. But I'm gonna look to trade and to flip with some of these now that I have some coins just because they are the fresh items, the brand new cards that are on the game. And since they are brand new, people wanna trade with them. People want to try them out. And I mean, I still think there is weakly demand. I know I talked about that in yesterday's video with people needing packs and needing fodder because of how much this content is draining clubs. I do think that footchamps will have some demand and I think that people will be playing this weekend. But of course, it's more for to get some packs and to get some sort of fodder back in their clubs and not be broke because everything on this game right now is making us broke because the content is insane. And it's super duper good. Now, I'd be careful with the ones to watch is I know like that Renato Sanchez, again, I looked at his price like 15, 20 minutes ago and he was at like 800K after being 700 lows earlier than the day yesterday.  Yeah, he's kind of down again as well. So some of the cards, especially some of the new promo cards and icons might rise up today into Saturday a little bit. But again, guys, like the content right now is just draining this game and it's making the market go down, which is usually what happens which is why we said stay away from the golds, stay away from the best of team of the weak cards. That crazy spike they had yesterday was great for a quick flip, but I doubt those guys will rise too much into the future just with the way that the game is going and then, of course, the content that we have had in the past day has just been overwhelming to say the least and the market's not gonna rise too well when the market is or when the content is that overwhelming. So I would just say to you guys, watch out for maybe the PTG cards that played today, watch out for the new cards that you can flip and just try to stay semi-liquid with the cards that you have or the coins that you have right now because it's getting tough out here and I know there's not too much else to say other than that. It's also had fun, right? Also had fun with the content that's being released because we're not having fun, then what's the point? So I'm doing messy because I wanna have fun with this, but it was an absolutely mental day yesterday on the market. If you sold fodder at all yesterday, if you waited to sell it until after everything happened, GGs, but the timing yesterday was completely different to kind of what we thought was gonna happen because EA's content yesterday blew us out of the water. So today's content on Saturday, like I mentioned, I wonder if that boosts gets rode to the World Cup player item might be an SBC. We should see a few more flash SBCs today on Saturday. Usually Saturday's a bit slower and there's still a lot of store packs that we haven't seen yet. So some of those foundation packs, we might have more of those today. EA could re-release some of the other packs here that are in the store. I don't know, like some of these are on longer timers, right? But this Black Friday 100 pack might come back today on Saturday, might drop the market in some areas even more. We're just experiencing FIFA history right here in FIFA right now because it is absolutely mental. So if you enjoyed the video today, smash the thumbs up on it, comment down below if you have any questions and subscribe if you are new. It's been Nate The Foot Account and I'll catch you guys later. Peace.


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Well, hello everyone and welcome back to Sailor Academy's MBA 601 financial management This will be the review of unit six if you have any questions as we go along feel free to leave them in the chat Or if you're watching later leave them in the comments below as always this is an overview of Sailor Academy's course It's not the course as a whole so make sure you are looking at the course resources and also checking out the previous videos Because this is the follow-up to unit six so we've actually done six before this because yeah six before this because unit one's two videos But that's enough for everyone. I'm just gonna hand it over here, and I'll get out of the way Hand it over to dr. Pierce. Oh Thanks Michael and welcome back everybody As Michael said, this is unit six of Of our program and if you recall there were seven units in our course on financial management and today we're going to focus a bit on valuation and The implications for valuation of a firm now as I have done in the past Let me first just touch base on our course objectives and in particular for unit six It'll be highlighting the area of evaluation Where we've talked a goodly amount about evaluating a firm's performance By taking a look and digging into the firm's financial statements And also to recognize the importance of free cash flow now remember we talked about free cash flow in a couple of our previous presentations And the impact to the firm well now we're gonna take it one step further I want to make the point and help you understand that Free cash flow is also a very good measure of how well the firm is performing Now in addition to the unit objectives, we do have some unit objectives And we're going to be looking at recognizing the importance of increasing firm value now You've you've heard me talk about this I think in just about every presentation so far and as a former CEO of a of a firm I assure you that it is extremely important to Focus on making decisions that help increase the value of that firm So having said that and we say okay, so yes, that's part of your responsibility Let's talk today a little bit about ways that we can actually go about Measuring corporate value So I'm going to show you how we can do a report card on the decisions that I've been making as I've been trying to Lead this business and we'll talk about some creation Methodologies that we can apply to help us make better business decisions Now generally and overview the topics that we'll talk about today Corporate valuation and again the idea of there are ways There are models that we can use to help us actually assign a value to where the corporation is today Now that's important both internally and externally Obviously internally it helps us review the decisions we're making by focusing on valuation we can improve our decision-making process and Obviously, it has a great deal of interest to External users of our data typically shareholders investors owners of the business We're going to look at some of the methodologies we can use and Determining the value of our companies And then we'll lead us into a brief discussion on the concept of value-based management And all that really means is that if we can find ways to measure what we're doing if we can Look at the performance that's coming from our decisions then we ought to be able to take that information and Help improve the decision-making progress, so we're going to talk about management That is actually making decisions based on value creation and a couple of I think key Value measurements which are the economic value added in the market value added of firms so a number of things to consider today and As always before I go too far into this Let me just stop here and see if in fact there might be any immediate questions before we get started I'm not seeing it. Oops. I'm not seeing any immediate questions in the chat But I do you know just a reminder you can leave them any time in the chat And of course if you're watching this later feel free to leave a comment below and we'll get to it Great, so let's get started and the concept of valuation is is really it's a it's a big broad base discussion we can have We're not going to make it that broad today And I will assure you that there has been just tons and tons of papers written on the idea of Valuation valuing waiting businesses value creation value-based management Should be no surprise that it's a topic of some interest in the world of business today And it doesn't matter whether the business we're talking about is privately held Maybe it's a sole proprietor somebody who's actually invested and launched a business or it's a larger firm It's publicly traded and it has shareholders and investors It's important to know what the value of the firm is at any point in time It's important to know where we were and where we are now So we want to be able to do that comparison of are we making progress? Are we going in the right direction? And as you now know After having gone through a number of of these presentations We're also going to spend a considerable amount of time looking forward and Forecast and trying to determine where we will be or what we want to be But we know that one of the primary goals of management is to create value Rate value for shareholders create value for the firm Now what is the value well When we talk about the value of a firm it represents a number of things It's a it's a report card and the decisions that management is made If management is making the right decisions If the firm is going in the right direction Then you would expect to see that there's an increase in value And so it kind of reflects on the decision-making and it is in fact a report card It's a basis for determining the cost of a share of stock if your stock is you have stock and it's trading on a market What's it worth? well a great deal of Evaluating a stock price is what's the company worth that the stock is a part of It's a way to attract Additional investment if the firm is doing well if the firm is creating value Typically might be the firm that people are looking to invest their money in and if there is any Indication that part of the strategic plan for the business is that you might be quit considering either growing through acquisitions of other businesses or even of being acquired yourself Then a starting point is to know what your business is worth today. All right, so there's a number of reasons why we consider Valuation so let's start now with I'm going to go back to what I think we talked about in unit one and two And we'll do some basic evaluation and the most basic one is the firm's balance sheet So if you recall The balance sheet is a listing of everything that the firm owns and everything that the firm owes All right, so the assets Reflect all the things that we own Liabilities are what we owe and the classic accounting equation is assets minus liabilities is equal to shareholders equity Now what does that actually mean? It's simple if the business were to close today. I Would liquidate all my assets meaning I would take all the things that I own and I would turn them into cash Sell the building sell the inventory sell the equipment and you're sitting there with a pile of cash And the first thing I have to do is pay off all the debts that we have So I'll take care of closing out all the liabilities all the loans and the debts If there is money left and we hope there is it belongs to the owners That shareholders equity that's what they own And so in its simplest form the value of a business is in fact the book value and Owners equity shareholders equity is the book value of the firm All right, so I'm going to take it back to unit one Well, we went into more detail of analyzing a balance sheet, but this is the basic balance sheet and Remember that our assets are divided into those that are current assets Meaning we can those represent the ability to be turned into cash within one year or less You have some longer term assets Typically property plant and equipment So if you've got a big building if you got a manufacturing plant, yes, it's an asset But you may or may not be able to liquidate that building in within a year We then looked at liabilities all the things that we owe and again we have current liabilities those liabilities that you anticipate being paid in the next 12 months and Noncurrent liabilities typically the long-term debt, but I think I used the example earlier on that think of a mortgage You have a 20-year mortgage on a home This year's mortgage payments are current liabilities. Why could you be paying them this year? But the balance of that mortgage is a noncurrent because that's going to go out for the next 19 years All right, so we had the balance sheet assets and liabilities and what was left owner's equity and so again basic accounting equation assets minus liabilities equal shareholders equity and we can see for example based on the numbers we had that for 2019 the shareholders equity was $557,000 So after assets were liquidated that's were paid off. There was $550,000 that belong to shareholders. That's the book value of the firm. That's what it's worth. Let's assume you're a sole owner so that $557,000 is yours and That is the value of the firm All right, so that's that's a simple view of Establishing value, but it really is simple and it may not really tell us everything. We need to know So when I consider the balance sheet, I mean one, it's a snapshot in time As you saw from the prior slide we can go back we can look at what we were doing historically and So perhaps as a shareholder potential investor, you might be interested in knowing the trend of shareholders equity For example, has it increased year-over-year for the past few years? That might be an indication that the business is generating funds for their investors But what this doesn't tell us is it doesn't really get into the detail of We know what the book value of assets are but that doesn't necessarily tell us what the assets are worth in the market Remember from an accounting perspective when we prepare financial statements when we do the balance sheet We take a conservative approach So on the balance sheet Assets are shown at acquisition value But if I bought that piece of property 10 years ago at a million dollars It'll be on the books at the acquisition value, but what's it really worth today? It could be worth less or it could be worth substantially more really won't know that till I take those assets and go into the Marketplace to see what the value is All right, so that's one area that we're really not sure exactly what that those assets are worth And it assumes that there's actually a market for the assets Imagine if you're a major manufacturing company and you have a million square foot manufacturing facility And you decide to put that on the market I'm guessing there's not a whole lot of immediate buyers that are interested in purchasing that amount of manufacturing space and if you if you look in Business news over the past couple years. You'll note that at any point in time. There's lots of Commercial real estate that's been sitting available for an extended period of time It obviously requires somebody that's going to have a need for those facilities and the cash to do an acquisition What about goodwill and brand equity that the firm has they're actually worth money not necessarily reflected on the balance sheet For example, I remember back when and teaching a course in marketing Had my class look at the brand equity of Coca-Cola A worldwide brand And the brand itself is estimated to be worth an excess of a billion dollars. That's not the assets in the company That's not the the bottling plants. That's the brand the brand equity Um and what are the prospects for the business is this a business that's in trouble Facing financial difficulties or is this a business that spends steadily growing year over year and has prospects for continued growth So we can't really see that from the balance sheet And yet it certainly has an impact on value of the business Now when we talk about the idea of corporate value, I want to stop here and make a note about fiduciary responsibility Now it's a it's a fancy word for as a former ceo of a publicly traded firm Um, I had a fiduciary responsibility to shareholders and to lenders fiduciary means that that as an executive of a firm with decision making authority And the authority to spend funds that's a position to trust Your shareholders the owners the lenders are trusting you to do what to make good decisions That means that before I make a decision there's an expectation that i'm going to exercise appropriate due diligence That means completely and thoroughly evaluate the decisions we're making now that sounds obvious And we might be inclined to say well, I'm got it, but everybody does that the bottom line is no they don't Um, and it certainly uh would not be uncommon to find executives making decisions that weren't necessarily in the best interest of shareholders Not me of course, but others and so due diligence really thinking about what you're doing evaluating the risks Doing appropriate risk mitigation and then making decisions that will be focused on Increasing the return for your shareholders All right at the end of the day. That's what you're what you're looking to do So fiduciary responsibilities and and anybody in a in a publicly traded firm Or those who are involved in taking other people's money have a fiduciary responsibility now Now that we've looked at that I want to go into the area of how do we further look to value business and what we're going to do is we're going to take a look at a couple of Uh pretty common models that are used to help us determine Um the value of the business We're going to look at the general overall idea of value of operations Remember the operations is the day to day operation of the business. What are you doing if you're manufacturing you're manufacturing goods You're putting them into the marketplace. You're generating sales. What's the value of operations? And then we also want to look at the idea of market value added And it really is a view of how the market sees what you're doing And economic value added Okay, so we're going to get into those as soon as I check and see if in fact there might be any questions on what I've talked about so far Um I have the wrong youtube pulled up. There we go So I was trying to fix something on the back end and now it looks screwy for people But everyone thinks fine. They just can't see me But we don't we don't have any questions right now But I'll just remind everyone that if you do have a question feel free to leave it in the chat okay Then continuing on with our discussion. Let's look at the value of operations And again, what are operations? It's what the company was set up to do So when we talk about the value of operations if you're an auto manufacturer Your operation is running assembly lines to produce automobiles And then get those out into your dealer organization for sale to the market What's the value of that operation The value is going to be the present value Okay, so now you know exactly where I'm going with this present value of Forecasts and free cash flows And what are we going to do because they're in the future? We are going to discount those future free cash flows by what? By the cost of capital Which you now know as whack or the weighted average cost of capital So um, if you look at this formula this this formula really basically is what is the present value? It's a pv formula. We're we're focusing specifically on free cash flow And we're focusing on our discount rate But I've added an additional parameter here and you'll notice this figure g And so let's talk about what that actually means She is the growth rate So we're forecasting free cash flow of 75 million dollars We have forecasted a growth rate of six percent here now. This is important because depending on what the growth rate is Is and it has an impact on multiplying or decreasing what the future cash flow looks like So we're going to incorporate a concept of growth in here And we've determined that our weighted average cost of capital is 14 Now I'm going to guess that at this point, especially after last week's presentation Everybody knows how to calculate the weighted average cost of capital Which simply says we're going to look at the capital plan of the business How much debt do we have and how much? Uh equity are we using that's the debt to equity ratio? What's the cost of each? And we're going to do the weighted average so our weighted average cost of capital is 14 So if our forecasted free cash flow is 75 million dollars We're anticipating a growth rate of six percent And our weighted average cost of capital is 14 What's the value of operations or what's the present value of that future stream of free cash flows? 994 million dollars Look how easy this is Now the real challenge isn't coming up with the number The real challenge is that as an executive You actually can do things to impact that number Either up or down Now i'm going to assume for a minute that your forecasts are correct Um remembering of course Is absolute You're looking to for tell what's going on Sorry, uh, sorry, Lou Uh, it looks like uh zoom hitched up there for a second. You had just said, um You were talking about assuming your forecasts are correct and then uh, and then we lost you there for like a sentence Okay So, uh, again, I'll assume that the forecast is correct Um, but we know it's not absolute and forecasts can be up or down But you've you've done due diligence and you've used Um appropriate economic models and so you've evaluated what the growth rate is going to be Now having said that what do you impact here? One that free cash flow Free cash flow is a result of revenue and expenses free cash flow increases If revenue goes up and expenses stay the same Or in pierce all's world if revenue increases and expenses decrease Because then it really goes up But you're making day-to-day decisions that have a direct impact on the generation of free cash flow So as you determine, um, what technology will be used in manufacturing? What materials you're using The quality you're building in the products the effectiveness of the product launches that you have the marketing and advertising campaigns Those are having an impact on free cash flow. That's number one. So you have an impact on that number two the um the cost of capital the weighted average cost of capital The executive team is making the decision on how much debt And how much equity that they're going to use There's a cost to debt There's a cost to equity and if you recall from our last presentation We actually went through and showed how you could you could make an analysis of the various costs You could analyze the different debt to equity ratios that are available to you And what were we looking for? We were looking for the optimum capital plan, right? The one that gave us the lowest weighted average cost of capital Why because you're going to be taking that 14 percent if that is lower Then the value of operations goes up If your cost of capital increases The value of operations goes down And so remember things like Your ability to maintain a business in good financial shape has an impact on the cost of debt If there is too much risk or too much leverage in the business Then the cost of equity increases And that will increase the weighted average cost of capital So this is a direct reflection of of decisions that you're making Okay, now Recognizing that we can look at the value of operations and we can see some impact from the decision making of our executives Then let's think about the fact that what we're really looking for As an executive team is one that's looking at value-based management. This isn't a complicated concept It simply said that as a former CEO myself When faced with decisions at a number of decisions that we're making Part of the decision-making process would be to answer the question if we do this What's the impact on value? Does value go up or does value go down? Now having said that, uh, I don't want to paint a uh an unrealistic picture here There are decisions we make when there will not be necessarily be an impact a positive impact to the value of the firm But we must make them For example, we talked about Evaluating the net present value of investment projects And we only want to invest in those that have a positive NPV But suppose that we have equipment that needs to be replaced I really have no choice but to replace the equipment. It's not furthering what we're doing It's simply recognizing we have old equipment has to be replaced with new equipment And it may not have a positive impact on creating new growth But it may at least enable us to sustain and maintain where we are So that is part of the decision-making process But having said that other decisions should be based on positive impact to a value So if we look at the market value added the market value is going to be How does the market see where we are? Remember, we're not in a we're not in a vacuum here. We're in the marketplace Um, our customers are looking at what we're doing Uh, competitors are looking at what we're doing Lenders are certainly looking at what we're doing Investors and shareholders are concerned And so how does the market value the decisions that I'm making in the operations of this business? Market value added is going to be impacted by things like growth and revenue Is the business increasing its revenue year over year? Now Obviously in almost any any business environment It's pretty difficult to maintain a year over year growth Some years are just going to be you're going to be lucky given Market conditions in the economic environment to kind of hold your own Sometimes there's a loss. Maybe because we're transitioning to a new market line or bringing in new technology for manufacturing Um, but those are our bumps in the road that management should be able to explain in the market If they're following what you're doing can either say that makes sense or it doesn't Generally speaking are we creating a growth and revenue? Does it from show signs that it's growing? Let's not forget profitability and specifically we're going to talk about operating profitability All right, and that's notepad and you can remember from our earlier reviews of financial that that was net operating profit after taxes So the profitability that we made from the operations of the business not external investments Or anything else but fine doing what we said we would do when we set up the company What about capital needs and the return on investing capital? um If businesses are not investing That may be an issue. It may be a problem One thing that that I think is interesting is that oftentimes we will look at the cash available to a firm If cash is increasing on the balance sheet period after period quarter after quarter if that's growing at some point Investors have a legitimate question to ask Why do we have so much cash available? Why aren't we investing the cash? so If if you have nothing to invest in as the firm here's a thought give me back some of my money because I can invest at some place else Remember investors are looking for a return on the cash. They give you So capital needs are we making appropriate investments to continue to sustain and grow the business? And of course, we've talked a great deal about the weighted average cost of capital These things are all impacted by decisions that management makes And they're all viewed in the marketplace As part of the way that we're going to make a determination on the value of the business So let's look at market value added and and what that actually means The formula here is pretty simple. It's the market value of shares minus the shareholders equity Now we these numbers are going to be readily accessible to us The market shares value of shares is simply What's the current price of a share of stock and how many shares outstanding are there? That tells us what the market is valuing the company at Minus shareholders equity because that's money that already belongs to the shareholders So what's the difference between what the market says the firm is worth? And the book value of the firm which is shareholders equity Think about that for a second Suppose the book value of the firm is one million dollars. That's owner's equity The market value of shares is one million five What is that actually telling us? Why is the market willing to pay? $500,000 more for a company who has a book value of a million dollars And that's because the market looks forward Market isn't looking at the business closing today. The market is looking at what the business has been doing What they're currently doing And where they're looking to go And in this case the market is saying we think there's additional growth potential here And so it's worth more than the book value of the firm Now that's a that's a pretty dynamic statement when you think about it And so what it means is that if the market value added is a positive number It means that we're obviously adding value for investors and potential investors are saying Yeah, we think there's more here to come Now what might that look like? Let's suppose that we have a price for our shares today trading on the market at $25 a share We have 50 000 shares outstanding And shareholders equity as we just saw from our balance sheet was $557,000 So what is the market value added or is there any added? The market value of the shares is one million two hundred and fifty thousand dollars. All right. That's the $25 times 50 000 shares minus shareholders equity $557,000 which means that the market value added for the company today is almost $700,000 Now remember that the the Part of market value that we we need to make sure we understand especially as managers and executives of businesses Is that that's really a reflection of past performance What we're currently doing and showing that we're doing and how we're projected to perform in the future So if you have ever considered investing stock in a firm I'm guessing that at the very least you're interested in how well are they performing? How have they done over the last few years? Is this business growing or is it shrinking? While some people might consider investing in a company that is going down For whatever reason most of us might be more interested in investing in companies that are going up And so market value added is a pretty important criteria to think about When we're when we're looking at business and again, it's a reflection Of the decisions that we have made in this business The market's evaluating those decisions and it's showing up in market value added Let's go to one more important valuation of the business and that's the economic value added Economic value added is basically no pet net operating profit after taxes And from that we're going to take the capital that was invested and the cost of capital Now for them to go much further without going all the way back to units one and two Remember that no pet or net operating profit after taxes is even Earnings before we pay interest in taxes. So if you look at the income statement You've got revenue We're going to take out all of our expenses Before we take out any interest in taxes And that's the earnings before interest in taxes So what is that number? Now times one minus the tax rate. So now we're going to take out taxes All right, so if they're if your tax rate if your corporate tax rate was 40 percent We're going to multiply that by 0.60 So ebit times one minus the tax rate And from that we will subtract The amount of equity used times the cost of equity the cost of capital Now note that no pet is the operating profit after taxes So it doesn't consider leverage. And so in this case, we're not going to consider interest payments on debt We consider that a financial decision the amount of debt you're using the interest you're paying is a financial decision It has an impact on financials But here what we're looking at is how much profit are you driving from the business you're doing and we'll address How much in debt and the leverage you're using after but what are we generating off the operation of the business? Now a positive economic value added number means what it means that the business is creating wealth for investors Unlike market value added Eba can actually be broken down and become more specific. I can calculate the economic value added for a particular period What was it last year? What is it this year? What is it this quarter? And I can even take it further and do a more in-depth analysis I can Calculate the economic value added for say part of the operation Rather than looking at the overall operation. I'm interested in how manufacturing is doing So we can we can take the appropriate numbers out of our financial statements and calculate the eba for operations Perhaps we're looking at at a product line We may have several product lines that are out there and we want to look at what's the impact of a particular product line This allows us to do that So again as part of pierce all's rule for fun with finance We can peel this down and we can look at analyzing and evaluating very specific parts of our operation And as somebody interested in value-based management, that's exactly what we're going to do We're interested in understanding the implications of all things right now If you're with me so far on the whole concept of value-based management I want to take uh and wrap this unit up with a with a Kind of a review of what are you going to do about it? remember the idea of Evaluation everything we've done so far Has been to tell us How well we've done All right, where where are you now? How does that compare to where you were last year? And what is your forecast show going forward? If you are looking and saying, I think we need to do more. What are you going to do about it? We actually have to think about Potential strategies that can help us create value in the firm So that's what I want to wrap this section up with and talking about some strategies for increasing value Um, some of these you're going to be familiar with they're they're not terribly uncommon depending on the size of the firm They can be rather complex innovation I've always been amazed with the concept of innovation, which is creating new ideas new products um I'd like to say that every business is focused on innovation or and many probably are but how do you get innovation? I mean even as president and ceo. I wasn't able to go out and tell folks go ahead innovate Innovation is part of a culture of an organization Have you created a culture where innovation is expected where it's rewarded? um, where where folks know that they are going to be looking to um That you are excited about innovation and new ideas So it's easier said than done and it takes a great deal of thought and management to really have an organization that can innovate What about the opportunities for diversification? We can diversify a number of things. We can diversify Uh, where our business is where we're doing business. We can diversify into markets We can diversify our product offering. Um, we are offering all product a is there an opportunity to expand the product offering And diversify into other areas other parts of the market that could be served Especially given what we have in terms of production capabilities and in-house skills Restructuring the business restructuring can can take a couple of of Processes one is we look to restructure perhaps financially if we're facing some financial difficulties Restructuring could mean that we have to look at restructuring our debt Seeing where we can Perhaps locate other sources of lending look where we have to pay down some that we can restructure our financial position But we can also restructure the business Should we restructure the firm in terms of how we operate? How we're organized um, do we need to increase uh, or add departments that are focused on customer satisfaction or manufacturing technology cutting-edge services Franchising is an opportunity is is the business lend itself to increasing revenue and expanding market presence perhaps by franchising some or all of the business So these are some basic business strategies Debt firms can be looking at and probably should be looking at on a regular basis But there are more complex strategies to consider um, especially for larger firms What we want to look at other ways to increase value There have been lots of discussions for on the m&a activity taking place on a global scale m&a or mergers and acquisitions now Mergers are when two companies decide that they can merge their operations The idea being when they come out of the merger that they will be bigger Uh, perhaps have more products to offer have expanded a customer base And will be a stronger company with increased revenues That's the idea whether or not that actually occurs. Um, is not necessarily uh, guaranteed That's excellent. Same with an equity side to actually acquire them outright I That one way to Let me cut in real quick. Uh, we we just had we just had another skip there a couple uh, couple sentences ago. Um, when you were talking about, uh The the merger them them working to get doing the same job together where we were like You're doing the same thing. Yeah, I'll pick it up from there. Um, I apologize for the glitch folks But let me just make sure you didn't miss anything On mergers and acquisitions when we merge we've got two firms coming together They're going to combine their resources. They're going to combine their technology their personnel their products And the idea is that at the other side of the merger, of course, you have a company that is bigger Has more revenue and has a greater market presence Not always but that's the theory behind a merger Or we can go to an acquisition where we actually acquire outright another company now, um The advantage of a good merger or acquisition Again, is that you're looking to make the business bigger Have a bigger market presence Be in a position to generate more revenue And perhaps reduce cost Now as as an executive who's been involved in merger and acquisition activities for a number of years Let me tell you that this is a lot more difficult than it looks and in fact, um studies on the after effects of mergers and acquisitions show That many more do not succeed than actually do achieve the results that we're looking for Why there's a lot of complexities in doing this think about a merger Itself you're going to merge two companies. They both agree. They want to join together And um and do business. Well, you've got duplicate staffs now Um, not every uh position. Do you need to have a duplicate board? Do you have you are you going to be able to operate two finance groups two accounting departments? um, and so the ability to manage And and and make sense of those And do that in a way that's profitable for the firm doesn't impact the uh, your presence in the market Uh, doesn't give competition an opportunity to step in are very complex um, so My experience tells me that these are entered into very carefully with a great deal of analysis And research and the most successful Mergers and acquisitions I've been involved when had a detailed and complex plan put together That said on day one Of the merger or on day one after the acquisition Here's the operating plan going forward that we were able to immediately implement into the business um, so Again, there have been volumes written on m&a activity, but it is a strategy for increasing value Strategic alliances is another strategy where we simply look to find a way to Work together with another business typically not a direct competitor But maybe somebody that has an auxiliary product or service where together we can present a Uh, a better or more unified View to the to the market and improve our customer service and our support joint ventures, um, was a good way especially for firms domestic firms looking to expand international um, and not necessarily having the expertise to go into a foreign country and open up an operation from scratch Not being familiar necessarily with regulations finance laws the marketplace joint ventures are a possibility where you go in and you partner with another company both have a a financial Responsibility to the firm And we benefit from local expertise as we consider Uh, for example, this is a good way to consider test testing our products and in markets that we're currently not serving So we can do a joint venture And the last is is divesting Um, especially with companies that have grown over time and maybe have a number of different operating divisions Um At some point in time it may be worth considering should we divest ourselves of this particular division of the company We want to focus our time our research and our efforts on this part of the business And so we will look to sell off. We're going to diversify and eliminate part here All of these potential decisions. These are all strategies That management can use when they're considering Um opportunities to increase the value of the business So lots of reasons for doing this Um, we've talked about some uh, sometimes we it's an opportunity to acquire new technology or a manufacturing process That someone else has that you think you would benefit from maybe a merger and acquisition gives you access to that increasing market share You've now if I if I buy a company that's the same size as I have I have effectively doubled my market share um ability to uh be a larger uh purchaser of goods and materials increase having access to a low larger global supply chain New access to new customers which provide new marketing opportunities new location. So lots of reasons to consider um Any of which may or may not be valid for you and your business as you look at it today But these are some of the the concepts we can use when we consider Not just measuring what our current value of of the business is but how I can go about increasing that value So what I want you to take away from this uh session today is Remember and I'll emphasize this again and again Management's responsible for making decisions. What how to increase value for shareholders owners and investors That's your job As a former president and ceo, I was hired by the board of directors. I reported to the board to do what? Create value for shareholders. That's my job Success at achieving these goals of increasing value can be measured as we've discussed And it ought to be part of your decision making process So when you're considering some of the decisions you might make You're going to consider. What's the implication on market value added? Or economic value added. It's as simple as that Now next week, we're going to look at the final chapter in our course, which is financial planning and forecasting So stay tuned for that and as always I'll wrap up with seeing if there are any questions or comments All right Well, we'll give everyone a second there to see if uh, if we get any questions coming in Of course, if you're watching these later, feel free to leave a comment down below and we'll get to it I'll either down there or in a later section. I just want to thank all the people that have joined us today Thank you very much. I'd like to obviously thank you, dr. Fierce over taking us through all of this and I'd like to thank me for my great knowledge But um, uh, I'm not I'm not seeing I'm not seeing any questions right now. Um, so I think we can go ahead and uh, just I'll just I'll do the close one more time and then if no one's got any questions, we'll get going But yeah, again, join us. Um, same time next week for uh, for unit seven So that'll that'll be good. And of course if you have any questions I said the question thing about comments in uh before So yeah, just thank you everyone for joining us and we'll see you the same time. Um, next week for unit seven So thank you everybody. Take care