Meet the Master Builder of the bronx brewery. All that and more over the next half hour, but first lets get headlines from carol massar. The big story at this hour alibaba seeking to raise 21. 1 billion in what could be the largest ipo ever in the u. S. They plan to sell 320 million american shares for 60 to 66 a piece. At the high end of that range, that means the offering would give the company a market value of 162 billion. The company that supplies Image Processing chips for gopro cameras shares rallied more than 3 . The lastest stocks forecast topped analyst estimates. The stock of californiabased company has grown sixfold since it went public in october of 2012. The u. S. Jobs report for august missed estimates. The economy added 142,000 jobs which is the smallest gain of the year and comes after an increase of 212,000 jobs in the month of july. The Unemployment Rate falling to 6. 1 but economists say that is because more people left of the workforce. Back to you. Thank you. We will stick to the theme because some scratch jack ma has some scratch. He built alibaba from scratch. He is taking the company public. Valuation at 160 billion. Joining me now is cory johnson who is typing away and also with us is Praveen Menon of Bloomberg Intelligence which provides realtime research, context in a variety of industries. We need the knee defenders. Lets start off with the valuation which is a mathematical equation based on the number of American Depository Shares that will be issued. Is this within the range of what people were expecting . It is in the lowend range. To some extent, looking at recent ipos like facebook and twitter the market has been expecting them to be priced lower. We like to look at it at price to sale. You can say it is a little bit under valuation. Less expensive than the most expensive stocks in the world. Maybe. What is it . 60 to 66 per share. This is an ipo that seems to be sucking money out from everybodys portfolio. Itll be curious the effect it has on the other chinese internet companies. Are there funds out there that decide they want exposure to high topline growth . Internet Companies Based in china. What does it mean for some of the frothier companies, Smaller Companies that have a lot more Financial Issues where some big fund will say they need half of a percent of the overall assets to go into the chinese internet growth and they can take it away from the other ones and put it into this company. This will be a lot of stock to fill. The roadshow for the ipo will Begin Next Week for this Public Offering. If it is priced at the low end of the estimated range, is that because they dangled this bait in front of people and they see the reactions . The bankers want they raised the price during the ipo. We are raising the price again. They have surely sussed out the market. They think they can sell all the stock at the price they are listing today. Praveen, based on your experience covering this, is this going to be a feeding frenzy . I think people have been waiting a long time for this company to come out. We have seen the numbers 250 billion in transactions last year. A quarter of a trillion dollars in transactions . That is correct. You dont get Companies Like this to come out often. We were talking about facebook often, but they had a very large audience. Did it have the revenue . No. Companies like this do not come around. This will come out of the gate with great liquidity. This will be a stock that big Portfolio Managers will be able to buy in size. That is correct. We heard the percentage of the shares they are selling is much higher than we typically see. Some of that may have to do with that people are familiar with this company. It is very well established and it is already had a piece of its business public earlier. They dont have some of the hurdles that an unknown name like a twitter for public markets. For people that think this is an unknown company because they have not been watching it around the clock describe what is alibaba . Alibaba is some compilation of a little bit of ebay, a little bit of amazon, a little bit of paypal. The Business Model is that. Fundamentally, it is a place that matches buyers and sellers like nasdaq as opposed to walmart where they take possession of goods from the manufacturer and sell it to customers. They have a factory and shipping business that accounts for all of the mail in china because theres so much stuff they are running through their system. They actually enable the sellers by having a system to take ownership and briefly passing through the system. In russia, the same kind of format exists particularly because there is no electronic Payment System that is pervasive in the country. With alibaba, how do they actually make the money . Taking a couple of they take a markup in every single deal. One of the many interesting things you read in this is that the Chinese Consumer does not have a credit card typically. The Payment System is an important piece of the business. Another of the many risks in this deal. I know you will be busy all weekend long. I know youre already typing it in. The filing is 350 pages and no one should be watching this broadcast saying they will buy the stock because everybody saying this is very exciting. There is a lot of risk in this deal and the filing is thick with it people should be aware. People can tweet questions towards you. Thank you very much. Do not miss the global broadcast premiere of crocodile in the yangtze the alibaba story. That is on monday, september 8 at 9 p. M. Eastern only on bloomberg tv. Coming up, a wall street risk manager says goodbye to his desk job and he wants a new kind of risk. He started his own crepe business. I will ask him about turning dough into dollars. The Unemployment Rate fell to 6. 1 down from 6. 2 . I will speak to the president of hired. Com on why recent graduates are changing the startup life. That is up next. This is taking stock on bloomberg. Im pimm fox. I will introduce you to a company that is breaking some boundaries. Zaycon works to break down the barriers of buying food directly from the farm. Their trucks deliver wholesale quantities to retail customers. Richard braddock is the former chairman of fresh direct and the former president of citigroup so he knows a lot about money. He is the chairman of zaycon foods. Thank you for being here. Nice to be back. Was i able to describe that correctly that you are basically offering this produce and meat and you were doing it at a wholesale scale . Everything starts with the customer. We are solving for the customer some needs that are not being satisfied today with a very clever Business Model. To describe the model, it is basically from farm to consumer directly. It is precisely from the process of right in front of the farm. You create a product and create it in bulk. You put it on refrigerated trucks and ship it directly to customers. That does a lot of things. Number one, it gets fresh product to the customer in three to six days depending on where your are in the country versus a storebased model which is 15 to 25. You get much fresher food. Secondly, there is a lot of economy in this distribution system. There are no fixed assets, no warehouses. There is no wastage because you sell everything you buy a i wont use that name. In addition to that, we have no meaningful inventory carry cost because we have the product for such a short period of time. Our consumer, because they really love the service, pays in advance so we have no credit exposure on the revenue. If you put all of that together, we sell 50 under retail. 50 . The cost is 50 less than if you were to go to the local Grocery Store . And we get a far fresher product. You mentioned the trucks. The refrigerated trucks that carry the produce, but where did they go . They go to a location that has been designated and advertised or communicated via email to the customers that have already spent the money. Exactly. They are waiting for us to show up and we have local premises. They could be a Church Parking lot. There is a lot of attention to the fact that we are dealing with food. There are a lot of regulations and we satisfy that. The person gets an email and says your product is ready. Open your trunk, come in and we will put it on the back of your trucks with great fresh product, 50 off immediately. Where do you operate right now . It is basically available nationally. We are headquartered out of washington on the west coast. We are at the early stage of our business formation. We are about four years old. We are about 18 million revenue already and basically break even. We do 75 of our business in only 14 of the country. We are really building our penetration. I invest and Pay Attention now to the big trends that will be important that is not being taken advantage of today. One of the big ones is social media marketing. A massive number of people. These people have so far not been given a chance to do much commerce. If you give a social media person a great deal like this 50 off product, they will engage their friends and the marketing leverage of that is the way we are effectively marketing the business. I can see people sidling up to you on a regular basis. Thank you very much, richard braddock, the chairman of zaycon foods. Now from breaking boundaries in the food business to breaking boundaries in hiring. Hired. Com is a career marketplace that helps connects engineers and scientists and product managers to over 1000 companies. Hired members get an average of five offers a week. The salaries are about 120,000. I am joined by the president mehul patel. Describe the companies that youre currently working with. We work with a range of companies. They start from Small Technology startups looking to hire initial teams to build their products all the way up to fortune 1000 companies. In new york, were seeing clients that include american express, goldman sachs, bloomberg. We have recently started seeing a whole slew of hedge funds becoming very interested. How does your Business Model differ than the traditional hiring services particularly in terms of the way you which you can get paid . Two differences one is payment. First, the actual model. We think the traditional recruiting model is broken. Neither candidate or clients have a good experience. Nobody loves recruiting or being recruited. We have split the model on its head. In the traditional model, you have candidates applying for a job. In our model, we really focus on getting the absolute best candidates. We select the top 8 of candidates that apply. Once they are on the platform and approved, we leave it to the companies to apply to the candidates. They make the request for an interview. They like the candidates to go and meet with them, but to do that they have to give a significant amount of information about what the role will be, the compensation, why the candidate is a great fit. How do you get compensated that is different from the current model once someone gets hired . One is the car model we get paid when they get hired. The second fee is a 1 fee which is rather than getting paid up front we Ask Companies to pay us 1 of the annual salary for as long as the candidate is with them up to a limit of 24 months. We want to stand behind the candidates that we think are going to be successful. Thank you very much for joining me. Mehul patel, the president of hired. Com. Coming up, i will talk to a risk expert who left his job on wall street to risk his future to make crepes. That is next on taking stock. This is taking stock. Im pimm fox. A programming note on alibabas highlyanticipated initial Public Offering which is the largest offering in u. S. History. We will find out how they became the first Global Internet company and what challenges jack ma will face. We will show you in premier of the alibaba story. The documentary draws on 200 hours of archived footage that was filmed by employees of the headquarters and events hosted by jack ma. Take a look. To see more of alibabas colorful founder jack ma, do not miss the global broadcast premiere of the alibaba story on monday, september 8, 9 p. M. Eastern only on bloomberg television. We know that wall street is competitive. My next guest decided to walk away from a mortgage, bond and credit derivative job to focus on another highrisk business food. He decided to make crepes. Joining me now is florent cohen, the founder of crepes and delices. Thank you for being here. How does it come into your mind that you are sitting at a nice job, you are doing risk and mortgage derivatives and say, ah, i must make crepes. Where did this idea come from . My family has been in the food business for about four generations. The i decided i wanted to do it as well to make my own business. You wanted to follow in the footsteps of your family. Did they think you were crazy . Yes. Do they still think you are . Yes. What is the extent of the business . In him business . We opened one week ago. Five days ago. Have you had any sleep in the last five days . About two hours a night. That is good for a start up. We have been open for five days. Where is it . On 72nd street between columbus and broadway. Ok, so in manhattan. We have plenty of kids coming out of school in the neighborhood. How did you learn to make crepes . Did you have to go to a special school, take a course . I went back to france for culinary training to learn how to make crepes. It is quite difficult. I went back to new york to create the company. You had to actually go into a bank account and spend some money in order to rent the space and get all of the equipment. How did you raise all of the money . It was my own money first and then i went to see different investors. We raised a little bit over 400,000 to start the business. You had to hire employees and so on. Did they ask you if you had any experience doing this . It is a big risk for them to work for you. Since i have been doing training a while ago, they saw i know what i am doing. What does it take to actually make a good crepe . Passion. You have to be passionate about it. You find the best ingredients. We only use organic flour, eggs and milk. You have to be good at making it. Is there a particular description . How would you describe the process of doing this . Do you make it on some type of hot appliance . The professional appliance is very essential. It is like 16 inches big and you need to make it in less than two minutes. It is a bigger challenge than making it at home. It is like a timed event. Do you have a favorite flavor . Salted caramel. Thank you very much. Florent cohen, the founder of crepes and delices. This is taking stock on bloomberg. This is taking stock on bloomberg. I am pimm fox. Now for a look at todays headlines, i want to go to su keenan. A bit more on the big after the bell news alibaba group, the Chinese Company which made jack ma a billionaire, will raise 21. 1 billion in its ipo which could be the largest sale of stock ever. The company filed to go public in u. S. Back in may after hong kong rejected it. It values itself at 162 billion. It plans to start meeting investors as early as monday. Meanwhile, u. S. And jamaican ships are sailing to a site off the jamaican coast where a plane is believed to have crashed. The unresponsive plane that took off from new york bound for florida did not answer radio calls since 10 00 in the morning. It was temporarily tracked by two f15 fighters and had to stop tracking as it entered cuban airspace. Boeing is posed to win a jet order from ryanair valued at 11 billion after it agreed to create a new version of the 737 plane that squeezes in more seats. Ryanair is europes largest discount carrier. Back to you. Telling time can be quite routine but that is not the case if you are fortunate to wear president eisenhowers rolex. How about a rare first issue of Playboy Magazine or maybe a signed photo of Albert Einstein . With details on these items and how you can bid on them, i am joined by Bobby Livingston of rr auction. Let us Start Talking about a watch, a particular watch that was given to president eisenhower. You go ahead and tell the story. When general eisenhower was a fivestar general, rolex approached him and presented him with a watch. It is number 150000 and they gave it to him for saving europe from nazi germany. He loved it. There is a lot of documentation between them. He wore this watch into the white house. What makes it so important is when rolex presented him this watch, it was not a brand of prestige or power. Once president eisenhower was photographed wearing it, rolex began to transform into the brand it is today. We feel it is the most important rolex ever offered. When looking at the detail of the watch, i noticed there was the five stars engraved on the back of the watch itself. On the bracelet it has his initials. It has dde on it. It is impeccable and historically significant. He gave it to his valet who was with him from 1942 until his death. He actually moved with eisenhower and his wife to gettysburg. In the 1980s, it was purchased by our client who has a great president ial collection. That is most of the option we are having on september 17 and 18, this president ial collection. This watch is the superstar of it. The rr auctions which is your company you are based in boston. It is based on commercial street. Where can people learn more about bidding on this . Is it online only or a live auction . It is a live auction on september 17 and 18. You can attend live. You can bid online. You can telephone bid as well. Lets say the watch is not for you and you would like something a little more, i dont know, human. You are also auctioning off a lock of john adamss hair. It is interesting. Where did it come from . I know it came from john adams. It came from his granddaughter. It was quite common. It is a show of affection and you would show locks of your hair and people would collect it. It is a generous lock and it comes right from his family to a noted h