[SPEAKER_01]: On radio, on YouTube, streaming live on investtalk.com, and for our podcast subscribers, this is invest talk, independent thinking, shared success.
[SPEAKER_01]: Invest talk is made possible by KPP Financial, a registered investment advisor firm, serving clients throughout the United States.
[SPEAKER_01]: Here is KPP Financial Chief Executive Officer, Financial Advisor, Justin Klein.
[SPEAKER_10]: Good afternoon fellow investors and welcome back to Invest Talk.
[SPEAKER_10]: This is our Tuesday, February 17th, 2026 edition of Invest Talk.
[SPEAKER_10]: Hope we had a wonderful holiday weekend and we are.
[SPEAKER_10]: ready to go for another short and weak, but an important week nonetheless we're still in the midst of earning seasons.
[SPEAKER_10]: So we're getting a lot of that coming in and new data, new data from the economy that is continues to shed more and more light on where we are headed.
[SPEAKER_10]: So we're going to dig into all of this and much, much more throughout this hour and this hour is dedicated to you and whatever's on your minds.
[SPEAKER_10]: It doesn't hesitate to
[SPEAKER_10]: Reach out with your questions at 8.899, chart 8.892, 4.278, tell you to get through and ask your question on today's show, and we're going to mix in some educational and actionable material to help you become a better investor.
[SPEAKER_10]: But as usual, we'll just, we're going to pivot over to our first caller question, and then after we'll hit on the market performance and run down the show topics.
[SPEAKER_06]: I just learned a little bit because I want to take a look at
[SPEAKER_06]: I'm looking at some more exposures to the health care sector.
[SPEAKER_06]: I don't have much right now.
[SPEAKER_06]: So you can take a look at the numbers, let me know.
[SPEAKER_06]: If you think it is a good company and if it's pulled back to a certain price, you can think it would be a good buy.
[SPEAKER_06]: Take a very much, have a good day.
[SPEAKER_10]: are looking at THC and this is the health care space which has been improving as of late because frankly the the worries of cuts to medical Medicare and cuts to drug prices and all of that just really hasn't come to fruition since this new administration has
[SPEAKER_10]: take in the White House in the last year plus.
[SPEAKER_10]: And so overall the healthcare space is doing well.
[SPEAKER_10]: And you have an aging population.
[SPEAKER_10]: And now this is why this is getting a bounce back last quarter.
[SPEAKER_10]: Revenue is around 9%, but earnings were up 37%.
[SPEAKER_10]: 37%.
[SPEAKER_10]: So overall this new administration has been good for the health care companies free cash flow is re-excelerating to the upside throughout the last year for tenant and they have a decent balance sheet return equity at 27% very strong.
[SPEAKER_10]: Return of equity really strong profitability.
[SPEAKER_10]: That's kind of where it's been since the pandemic.
[SPEAKER_10]: It's been kind of in that high 20s return of equity level.
[SPEAKER_10]: And as I said, with an age of demographic, that certainly helps the company, enterprise value to EBITDA right around eight, which is kind of the middle of its long-term range.
[SPEAKER_10]: So even after the rally, which the April lows was trading, let's add $110 per share roughly, now we're at $234 per share.
[SPEAKER_10]: that move, it's still fairly valued, historically.
[SPEAKER_10]: So I like the momentum, I like the trends, it's certainly not cheap, but it's not expensive either.
[SPEAKER_10]: And so if you're looking for a healthcare play, I think this is probably one of those, one of those good ones.
[SPEAKER_10]: So I would give tenant healthcare a thumbs up, fairly attractive at these prices.
[SPEAKER_10]: Now we have a lot of ground to cover over the next 45 minutes or so, and here's what we have planned.
[SPEAKER_10]: Our main focus point concerns semi-conductors and the custom chip war.
[SPEAKER_10]: It's not just about in video, but we'll talk about custom silicon and how that helps is being designed distinctly for AI models and AI processes.
[SPEAKER_10]: So we'll dig into that story.
[SPEAKER_10]: In addition, we have other topics on the docket.
[SPEAKER_10]: One of the big pieces of news over the past month or so was existing home sales.
[SPEAKER_10]: It fell pretty considerably.
[SPEAKER_10]: in December.
[SPEAKER_10]: And in January.
[SPEAKER_10]: So we're going to talk about those numbers and get an update, give you an update on what that means for the broader housing market.
[SPEAKER_10]: We also want to dig into private equity.
[SPEAKER_10]: This is this is going to be one of the biggest stories over the next five years or so.
[SPEAKER_10]: It's how how will these investors get out?
[SPEAKER_10]: And it's frankly not just about your mom and pop investor.
[SPEAKER_10]: It's about endowments, it's about insurance companies.
[SPEAKER_10]: And frankly, the endowments are the ones that are having the biggest issues after they had been the biggest backers of private equity and private credit.
[SPEAKER_10]: But now they're starting to regret their decisions so we'll look at the numbers there.
[SPEAKER_10]: And then lastly, if we have time, micron is spending $2 billion to expand the capacity of a chip, a not chip production memory chip production.
[SPEAKER_10]: So we'll talk about that.
[SPEAKER_10]: And what that means for that industry as a whole because if you go look at micron stock or sand to stock or a lot of the memory makers stocks, they're sky high.
[SPEAKER_10]: And the question is how long can that be sustained?
[SPEAKER_10]: content, there's a lot to be gleaned from this article or this topic that we'll get into a little later.
[SPEAKER_10]: We also have voice bank calls, and one is on how to roll over a 401k, as well as Bbva it's a Brazilian.
[SPEAKER_10]: An opportunity.
[SPEAKER_10]: It's a Spanish bank.
[SPEAKER_10]: We'll dig into that.
[SPEAKER_10]: And then we have some questions that came in via the comment section over the Invest talk YouTube channel.
[SPEAKER_10]: And of course, I welcome your finance and investment questions.
[SPEAKER_10]: Right now, your live calls will always be number one.
[SPEAKER_10]: So if you call that number live, four to five civic time,
[SPEAKER_10]: Whether you're listening on live stream on our website or it may be on AM1220 either way, we will get to you, you will get to the front of the line.
[SPEAKER_10]: So we're going to head into a break and I welcome your finance and investment questions right now.
[SPEAKER_10]: So once again, call on Bestock at 88899 chart.
[SPEAKER_03]: When you tell your friends about Investork and they ask you why you listen, let them know there are many reasons and one is Parallel Investing from KPP Financial and Investorkose Justin Klein.
[SPEAKER_03]: Parallel investing means Justin invests right alongside KPP Financial clients.
[SPEAKER_03]: He makes the same trade for KPP Financial on the same day at the same price and the same percentages as KPP clients.
[SPEAKER_03]: There's no front running and no special treatment.
[SPEAKER_03]: In this way, Justin and KPP Financial share the same risks and the same potential for success.
[SPEAKER_03]: Parallel Investing aligns the interests of Justin and KPP Financial with those of his clients.
[SPEAKER_03]: Justin, Klein and Luke Guerrero are ready to answer your questions about Parallel Investing.
[SPEAKER_03]: And you can learn more anytime at Investalk.com.
[SPEAKER_03]: Your questions are free.
[SPEAKER_03]: The answers are unbiased.
[SPEAKER_03]: Justin Klein is here now.
[SPEAKER_03]: Ready to take your calls live.
[SPEAKER_03]: Invest talk.
[SPEAKER_03]: 888-99 chart.
[SPEAKER_10]: We're going to go take a live call.
[SPEAKER_10]: Mike is calling with a question from Utah.
[SPEAKER_09]: Yeah, I was just calling on the CM CLF.
[SPEAKER_09]: CMOC group, LTD, and it's a mining company, but it's not based in the U.S. And I know you're strong at getting diversified outside of the U.S. And it seems like a strong company.
[SPEAKER_09]: I just curious why it's so cheap.
[SPEAKER_09]: And I know over the counter is they have fees when you buy them, but is there anything else I should be aware of that?
[SPEAKER_10]: Well, the regulations around reporting can are a lot lighter.
[SPEAKER_10]: So that is one potential big issue, and this is a name that comes out of China.
[SPEAKER_10]: That's where it's headquartered.
[SPEAKER_10]: And I'm not sure, let me see where its minds are.
[SPEAKER_10]: Let me pull up that, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh uh, uh uh, uh uh, uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh
[SPEAKER_10]: Yeah, so that's that's a certain level of jurisdictional risk that you have to be comfortable with okay because every social in Africa there's some countries are a lot more stable than others and they're rule of law better than others okay so 54% of the revenue from this country this company though comes from mainland China 10% Singapore 5% South Korea
[SPEAKER_10]: etc.
[SPEAKER_10]: That's that's at least where maybe the companies that are buying their their gold and see this is a this is a gold matter correct.
[SPEAKER_08]: I thought it was with the it's copper gold yeah coal ball yeah it's a mix of them yeah let me see here.
[SPEAKER_10]: 88% are coal and metals, 20% copper, yeah, cobalt's only 4% not too much.
[SPEAKER_10]: I like the digging, a lot of this looks like coal and metal distribution, okay, so that looks like it's more of a middle man than a pure minor, because they manufacture market
[SPEAKER_10]: But then they make money off of distributing that as well.
[SPEAKER_10]: Okay, so it's not a peer play in that sense.
[SPEAKER_10]: Once again, it's also out of China.
[SPEAKER_10]: So what are the controls around the honesty of their numbers?
[SPEAKER_10]: So that's why it probably trades at a bit of a discount.
[SPEAKER_10]: Now, if I'm looking at it, it's actually not that cheap to be honest with you.
[SPEAKER_10]: 12 times enterprise value divida, you know, if you go over to like, let's, let's look at the one that we own for clients, that is Southern copper.
[SPEAKER_10]: So more of a pure play copper minor.
[SPEAKER_10]: So that is more a bit more expensive.
[SPEAKER_10]: That's closer to 20 times enterprise value divida.
[SPEAKER_10]: So I understand, you know, it is a bit cheaper, but
[SPEAKER_10]: You know, it's that jurisdictional risk that that definitely has a bit worried.
[SPEAKER_10]: So I like foreign exposure, but it doesn't necessarily have to be a foreign listed company.
[SPEAKER_10]: It can be a domestic company or a company is listed on a domestic exchange.
[SPEAKER_10]: But maybe it has an ADR, for example.
[SPEAKER_10]: Or maybe it's headquartered in the United States, but it's properties outside of the United States.
[SPEAKER_10]: So it happens a lot with the material stocks, proper miners, gold miners, et cetera.
[SPEAKER_10]: So yeah, so I don't know if I I love this one.
[SPEAKER_10]: It's already moved pretty considerably, you know, it's I think you kind of missed the boat in some way on this now if it comes back in sub $2 maybe that gets a little more attractive.
[SPEAKER_10]: But ultimately, you know, there's a lot of risk there.
[SPEAKER_10]: It's also pretty illiquid isn't trade very many shares.
[SPEAKER_10]: I mean, look at the average.
[SPEAKER_09]: Have you tried to buy it?
[SPEAKER_09]: Tardue of C and like yeah, and that's almost.
[SPEAKER_10]: Yeah, it's OTC.
[SPEAKER_10]: Yeah, it's most OTC.
[SPEAKER_10]: But then what is the spread as well?
[SPEAKER_10]: So you might pay a lot to, you know, and it's not like a lot might be five cents spread, but on $2.94 stock five cents is pretty considerable.
[SPEAKER_10]: That's a that's almost a two to two percent spread, right?
[SPEAKER_10]: It's not a small company, 63 billion dollar market cap, free cash flow around 3.7 billion, cash from operations about 4.5 billion.
[SPEAKER_10]: So things are going well for the name.
[SPEAKER_10]: I just worry about the, those numbers and how true they are.
[SPEAKER_10]: And then obviously the liquidity as well.
[SPEAKER_10]: So I like that you're looking abroad, and I like the space that you're looking in, but this probably wouldn't be the name that I hit right right do.
[SPEAKER_09]: Thank you, Jeff.
[SPEAKER_10]: Thank you.
[SPEAKER_10]: Thanks for the call.
[SPEAKER_10]: Hey, today at 992-4278, so I get to ask your question on today's show.
[SPEAKER_10]: And I'll take a look at the market today, and it was another one of those kind of mixed bad days.
[SPEAKER_10]: Overall, yes, the broader indices were higher.
[SPEAKER_10]: The Dow is at 32 points, 49,000, 500, and change, S&P.
[SPEAKER_10]: up 7.1 tenth of 1% NASDAQ was up 31.14 basis points there.
[SPEAKER_10]: And it was, yeah, it was a mixed baguette Microsoft and Google down some bigger tech names struggling, Tesla down about 1.1 a% oracle down nearly 4% sales force.
[SPEAKER_10]: You continue to see weakness in a lot of the
[SPEAKER_10]: Crowd strike and Apple oven and synopsis into it oracle, like I said, IBM, Pile to Networks, these are all names that were down and that's where a lot of the weakness in tech was concentrated.
[SPEAKER_10]: Apple at 3% in video up 1% and a lot in finance kind of bounce back.
[SPEAKER_10]: That was a nice positive, not a whole lot of red on that side.
[SPEAKER_10]: You did see oil pull back a little bit, Chevron and Exxon down about one and a half percent on the day, consumer staples, pull back a little bit with Philip Morris and Pepsi down over 2% on the day.
[SPEAKER_10]: So really kind of a mixed bag, even though the broader indices were green, you did have the Empire State Manufacturing Index coming at 7.1, pop positive.
[SPEAKER_10]: Consensus was 10.1.
[SPEAKER_10]: So it missed that January's reading with 7.7.
[SPEAKER_10]: from there.
[SPEAKER_10]: And it's still positive.
[SPEAKER_10]: That is good.
[SPEAKER_10]: But ADP private payroll showed that average only 10,000 growth over the past four months, a third straight increase, which is good, but it's still at a very, very low level.
[SPEAKER_10]: So the labor market is strengthening a little bit, but still overall relatively weak.
[SPEAKER_10]: So a mixed bag as we continue
[SPEAKER_10]: They're heading to a break and welcome your finance investment questions right now no question is too simple or too complex you set the agenda so give us a call on the best not get it at ninety nine chart
[SPEAKER_03]: The calls are free, the unbiased answers are free.
[SPEAKER_03]: So what are you waiting for?
[SPEAKER_02]: Call in Vestock, 888-99, chart.
[SPEAKER_02]: I would like to know your honest opinion about this company.
[SPEAKER_02]: I see that finance has started to roll over, but at the same time, I see this company has increased their dividends since 2024, and also I see that they announced this year by back program, happening until from 2025, December, all the way to 2022.
[SPEAKER_02]: So I just would like to see what your input is about this company and I will listen in the podcast.
[SPEAKER_10]: Thank you so much for all you do.
[SPEAKER_10]: Bye.
[SPEAKER_10]: And about a quarter of their revenue comes from Spain, about 42% of their revenue actually comes from Mexico.
[SPEAKER_10]: So this is mostly a Mexican bank, released high to the Mexican economy.
[SPEAKER_10]: The idea of exposure to Turkey, Brazil, as well, Argentina, here in the United States, Colombia, and Chile, and those are kind of their main revenue sources.
[SPEAKER_10]: But effectively, it's a nearly 70% of their business comes from Mexico and Spain.
[SPEAKER_10]: earnings are at 14% expected this year, 11% next year, and we actually own this for clients we've owned it for some time.
[SPEAKER_10]: That's pulled back a little bit.
[SPEAKER_10]: We did trim it recently around $25 per share, and now it's a $23 11, so.
[SPEAKER_10]: You know, it's run since we bought it, and it probably needs a bit of a cooling off period, but we still really like it.
[SPEAKER_10]: Now, if you get back around $20 per share, love the buy it there around maybe around the 200 giving me the average.
[SPEAKER_10]: That's probably where be more aggressive to pick up for for new clients.
[SPEAKER_10]: So it does probably need a bit of cooling off, but we like the exposure to the Mexican economy, like you said they're buying back shares, their earnings last quarter up, 26% with revenues up 16%, nice 2.9% dividend yield, and while that dividend
[SPEAKER_10]: As I'm going up, it's gone up in a choppy fashion, which is not unusual.
[SPEAKER_10]: What's good about this is that it does pay a dividend three times a year, which for actually let me see.
[SPEAKER_10]: No, I like it's twice a year, April and November.
[SPEAKER_10]: So like most foreign companies, it doesn't pay quarterly, it pays semi-annually.
[SPEAKER_10]: So be aware of that, but return equity 18% and overall it's just a very well run bank tied to economies that are growing and the European economy is starting to grow again as well.
[SPEAKER_10]: So we really like this foreign exposure, foreign bank, well run good balance sheet and yeah, we're going to give.
[SPEAKER_10]: BBVA at Thumbs Up.
[SPEAKER_10]: Now, let's tackle a YouTube comment question.
[SPEAKER_10]: Corey Durbin says, Justin and Luke, thank you for the show and all you do for the investor community.
[SPEAKER_10]: Your recent video covered cyber security investing.
[SPEAKER_10]: What are your thoughts on company cloud flare and ET?
[SPEAKER_10]: Is it a good investment at current crisis?
[SPEAKER_10]: Now, Cloud Flair, who built software for firewall routing, traffic optimization, load balancing, and other network services.
[SPEAKER_10]: Problem is, is that their earnings this year only supposed to be $1.12 and then $1.42.
[SPEAKER_10]: Next year, and that is a low amount for a company that certainly trades for $193.7 cents.
[SPEAKER_10]: 31.
[SPEAKER_10]: That is egregious.
[SPEAKER_10]: That's only way you can really, it's only thing you can really say.
[SPEAKER_10]: The other gross profit margins of 74% but the return in equity is negative.
[SPEAKER_10]: The free cash flow is nice at about 300 billion.
[SPEAKER_10]: Sorry, 300 million, but the market cap is 3068 billion.
[SPEAKER_10]: So you're talking about a price to free cash, but 208.
[SPEAKER_10]: That is, once again, egregious.
[SPEAKER_10]: So it's a company that is growing nicely, revenue growth up 30% year over year, but it is in the software space.
[SPEAKER_10]: I'll be interested to see will there be any AI tools that potentially you serve?
[SPEAKER_10]: What CloudFlare does for networks?
[SPEAKER_10]: It wouldn't shock me.
[SPEAKER_10]: And that means there's a lot more potential to, even if there isn't, even if there isn't, even if CloudFlare still has its hold on, it's placed in the network.
[SPEAKER_10]: I still think it is way, way, way too expensive.
[SPEAKER_10]: So, no, I would not own this, and technically the trend is down, it peaked back in in October, like the rest of the tech market, and it's already down, let's see.
[SPEAKER_10]: It's down 25% from this 52-week hot.
[SPEAKER_10]: This is a type of name that will probably fall 80% from its high at some point.
[SPEAKER_10]: which means this is a sub $100 stock, probably a sub $50 stock.
[SPEAKER_10]: So, I wouldn't even think about touching it until $100 and frankly, 50 is probably the area that I would start to maybe entertain it being a reasonable value.
[SPEAKER_10]: Now, I'm moving into a break, so the comment might focus point and more answers to your question.
[SPEAKER_10]: So, I encourage you to call me right now in the best stock at eight and eight nine share.
[SPEAKER_01]: Justin Klein is here and ready to tackle your questions.
[SPEAKER_00]: Curious if you think it'd be better for me to let it go and spend money elsewhere.
[SPEAKER_10]: Well, first off, never take one man's opinion as gospel, including my own.
[SPEAKER_01]: Invest talk is ready 24-7.
[SPEAKER_01]: When you give a recommendation on your show for a buy-in, like an entry point to buy a stock, if I already own it, should I go ahead and be looking to sell it?
[SPEAKER_01]: Don't forget to call.
[SPEAKER_01]: Invest talk.
[SPEAKER_01]: 888-99 chart.
[SPEAKER_10]: Justin Klein is here, and he's ready with answers to your finance and investment questions call in Vestalk 888-99 chart.
[SPEAKER_10]: Filling different needs within the AI stack.
[SPEAKER_10]: Now global revenues are projected to reach 30 billion dollars this year in the chip industry.
[SPEAKER_10]: And really, as driven, it's driven by demand for efficient and powerful AI solutions for particular industries, especially health care, finance, manufacturing.
[SPEAKER_10]: And as more and more devices are requiring AI capabilities, the demand for specialized chips for the handle these complex tasks increases.
[SPEAKER_10]: Now one issue a lot of them are a lot of the chip producers are running into is just technical skills for AI chip development.
[SPEAKER_10]: That's why there, anybody in any engineer that can,
[SPEAKER_10]: that can work and develop these chips or making gobs and gobs of money and stock options, et cetera.
[SPEAKER_10]: And companies are investing heavily in R&D to create chips for specific applications.
[SPEAKER_10]: And it's not, what's good, it's not just in video.
[SPEAKER_10]: It's the Intel's of the world, even the Googles of the world.
[SPEAKER_10]: They're releasing their own AI focused chips.
[SPEAKER_10]: Now, what are the most in-demand chips they're called?
[SPEAKER_10]: A6, applications specific integrated circuits.
[SPEAKER_10]: So it's not just about GPUs, A6 provide better performance for specific tasks.
[SPEAKER_10]: Now, they're only four specific functions.
[SPEAKER_10]: So once that's established, it's not as flexible as a GPU, for example.
[SPEAKER_10]: But still, the demand for these type of chips is rising considerably.
[SPEAKER_10]: And those that can make a marketing market
[SPEAKER_10]: Last year, ASIC based AI chips reached 40% market share.
[SPEAKER_10]: So you might have heard who were called tensor processing units.
[SPEAKER_10]: That's what Google makes.
[SPEAKER_10]: That's what helps them actually run their models more efficiently.
[SPEAKER_10]: That is one type of basic.
[SPEAKER_10]: And then there are specific use cases for particular types of chips, such as LiDAR, diversity in a waymo, that's the argument around full self-driving with Tesla cars, is that they don't have LiDAR, they don't have these chips, and LiDAR stands for light detection and ranging.
[SPEAKER_10]: And you need specific chips for that.
[SPEAKER_10]: That can do those complex calculations.
[SPEAKER_10]: and all, and this along with radar and heads up displays, et cetera, these are all used to integrate into the systems on vehicles for full self-driving or AI type applications.
[SPEAKER_10]: And then there's AI was called on the edge, meaning on the phone.
[SPEAKER_10]: And I think this is where the industry will head eventually.
[SPEAKER_10]: this realm that the M series chips that are have historically been some of the best performing chips out there that they make themselves are set up for running AI applications on device, which if more and more of that happens, well, these data centers may become less and less relevant.
[SPEAKER_10]: The huge capex spend from the hyperscalers is that the models get more efficient, such as a deep seek, for example, and now they can be run on device, as opposed to having to query a data center, run that and then report back, like you normally do here with an
[SPEAKER_10]: And then there's the chips that manage the data, another data, the energy, predicting energy demand, adjusting power distribution, the distribution accordingly, optimizing power usage, all of this, can be done by AI, but specific chips that are designed for those needs.
[SPEAKER_10]: And I think this is the future, because everyone focuses on AI as a chatbot,
[SPEAKER_10]: But frankly, there are a lot of different verticals here that AI can be utilized for with the right hardware and the right models.
[SPEAKER_10]: And increasingly, specific text acts for these verticals will become
[SPEAKER_10]: very profitable, they'll be economic modes around that, meaning that certain chip companies will be good at producing chips for that particular vertical.
[SPEAKER_10]: And that's going to be a huge win for those names, especially when they pay for themselves.
[SPEAKER_10]: If they are streamlining operations, reducing costs of data centers, for example, improving up time, and able to adapt to the landscape of what's needed.
[SPEAKER_10]: So all of this is where AI is headed, and that's why the chip names are actually doing better than the software names.
[SPEAKER_10]: Because increasingly, it's going to be about the compute capacity, not just an aggregate, meaning how many chatchipity queries can be ran.
[SPEAKER_10]: But other data inputs that are more specific to different verticals and different industries.
[SPEAKER_10]: And so when you're looking to invest in AI, you want to be following the chip names.
[SPEAKER_10]: How well are they becoming established in these different verticals?
[SPEAKER_10]: names like AMD, Godcom, Google, Intel, IBM, Meta, Microsoft Technologies, Nvidia, obviously, but NXP, some of my conductors, Qualcomm, Samsung, TSMC, et cetera.
[SPEAKER_10]: have thrown their hat in the ring, and our big players.
[SPEAKER_10]: And some of these are going to come out crushing it, others not so much.
[SPEAKER_10]: So this is the sandbox that you actually want to be playing in, along with the other bottlenecks of capacity, which are copper, uranium for energy production, natural gas for
[SPEAKER_10]: wiring, HVAC, all the things that go into the data centers.
[SPEAKER_10]: But also, eventually, all the things that maybe not may not need a data center might be on chip.
[SPEAKER_10]: And I think you have to increasingly be aware of the advances on that side.
[SPEAKER_10]: Let's keep things moving and drop another listener question from 80 to 99 chart.
[SPEAKER_07]: This is Sam from Orlando.
[SPEAKER_07]: I know this question has been asked and answered the floor,
[SPEAKER_07]: I have a Roth 401k through my employer and in the event of leaving my employer.
[SPEAKER_07]: Can you explain the steps that had a roll over your 401k and I believe there was a certain garbage.
[SPEAKER_07]: You said to use that it would ensure that you are not penalized when doing so, all this from the show.
[SPEAKER_07]: Thanks.
[SPEAKER_10]: Well, it's very, very simple.
[SPEAKER_10]: Now, if you have a Roth 401k, you're going to go open a Roth IRA and any of the big brokers from Schwab, Fidelity, E trade, etc.
[SPEAKER_10]: I wouldn't recommend Robinhood, but one of the big ones.
[SPEAKER_10]: And then you're going to call your provider and you're going to say, hey, I want to do a roll over of my 401k and then they're going to sell all the positions in there.
[SPEAKER_10]: They're going to issue you a check and you have 60 days to get that into that new.
[SPEAKER_10]: Roth IRA, or for a traditional 401k, you want to roll it into a traditional IRA, you have 60 days to do that otherwise that's when you get penalized at access income for you for that year.
[SPEAKER_10]: So it's very straightforward, very simple.
[SPEAKER_10]: We do this all the time for our clients and yeah, as long as you get it within 60 days, you shouldn't be penalized.
[SPEAKER_10]: Those play another listener question now.
[SPEAKER_05]: Hey guys, I wanted to get your opinion on dollar general.
[SPEAKER_05]: Now it would be a good time to get your thoughts.
[SPEAKER_05]: Thank you.
[SPEAKER_10]: All right, looking at dollar general DG is the symbol.
[SPEAKER_10]: And this is the name that's been doing well as of late.
[SPEAKER_10]: The the whole dollar space has been doing well.
[SPEAKER_10]: And
[SPEAKER_10]: We looked at this, compared to Dollar Tree, they're kind of the two leaders within the space.
[SPEAKER_10]: And we like both of them.
[SPEAKER_10]: Now we ended up buying Dollar Tree over Dollar General, but it was honestly splitting hair.
[SPEAKER_10]: It was, it was, it was their very similar and their profitability, balance sheet, market trends obviously because they cater to the same demographic.
[SPEAKER_10]: Dollar Tree, if I remember correctly, is a little bit smaller than Dollar General, and they are breaking the buck more mean.
[SPEAKER_10]: They're selling more than just dollar items.
[SPEAKER_10]: You know, it needs to be the dollar store.
[SPEAKER_10]: Well, now it's more like sub-five dollars for a lot of items.
[SPEAKER_10]: So, overall, I like both of them.
[SPEAKER_10]: You can go wrong with either, you know, dollar general, a lot of you will like dollar general because it pays a dividend.
[SPEAKER_10]: Yeah, if you want a dividend, well, then Dollar General is your horse.
[SPEAKER_10]: Dollar Tree, we didn't care about the dividend.
[SPEAKER_10]: It doesn't pay a dividend, but obviously, it's still very profitable, good growth, very well-run.
[SPEAKER_10]: So, I like both of them.
[SPEAKER_10]: Just matter of which one you like better.
[SPEAKER_10]: Let's go answer a YouTube question says you've mentioned suffatized reason that Google appears to be leading hey, I at least in the near term, given that the stock performance has been relatively softly.
[SPEAKER_10]: Lee, do you think this is presenting good entry?
[SPEAKER_10]: Opportunity of possible.
[SPEAKER_10]: Could you share your thoughts on a reasonable entry price?
[SPEAKER_10]: Yeah, you know, Google was basically since the fall has been the leader within the Mac seven names within the AI space that has pulled back along with kind of all of software
[SPEAKER_10]: It, while Google still, I think, is the leader within its ecosystem, its LLMs, there's others that are just continuing to come out with good products as well that I think it's going to fight back and forth with who has the best model.
[SPEAKER_10]: Me, you have deep seek with China, that's improving a lot of open source models will be good.
[SPEAKER_10]: But really, once again, I think it's about the ecosystem.
[SPEAKER_10]: And it can you have the ecosystem to share data and it was called context prompting.
[SPEAKER_10]: And so context is really giving an understanding of who you are if you're a business, what business you are, how many employees you have, what does your business look like, what's struggling, what's doing well, and then having it improve,
[SPEAKER_10]: your operations.
[SPEAKER_10]: And I think that's where Google has the leg up right now, because you're able to put everything in Google Cloud.
[SPEAKER_10]: You have all the other verticals, like the Google Drive, like I said, sorry.
[SPEAKER_10]: And then you have,
[SPEAKER_10]: uh, cheats and you have all the, you know, the word processing, everything that goes around, you know, the Google Cloud and their tools and Nupakellet, which we think is a great tool as well.
[SPEAKER_10]: So we like Google and we think it's winning right now, but that doesn't mean that it isn't without risks.
[SPEAKER_10]: Understand that.
[SPEAKER_10]: Now, and honestly, the biggest driver of its remote right now is actually not that the LOM is the best.
[SPEAKER_10]: It's actually that their TPUs are allowing them to run their models at a lower cost, a much lower cost than a CHAPT for example.
[SPEAKER_10]: So they have to put less money in to support their business.
[SPEAKER_10]: They're AI business.
[SPEAKER_10]: And so that's why we think it's the way.
[SPEAKER_10]: as of then.
[SPEAKER_10]: Now, where is the buy point?
[SPEAKER_10]: Well, I will say it's at support two days.
[SPEAKER_10]: It's right at the 100-day moving average.
[SPEAKER_10]: It's at the two five-rate retrace from the lows in April of last year.
[SPEAKER_10]: So there is some support here.
[SPEAKER_10]: Now, better support, we'd be down around 269 to 70.
[SPEAKER_10]: Currently, we're trading around 300.
[SPEAKER_10]: So, you know, is there another 10% down from here?
[SPEAKER_10]: Definitely.
[SPEAKER_10]: If the market falls out of
[SPEAKER_10]: It's going to come down with it as well.
[SPEAKER_10]: So that's probably where the aggressive pick it up is right around 270.
[SPEAKER_10]: Let's talk about housing real quick.
[SPEAKER_10]: And, you know, the housing market had a rough January.
[SPEAKER_10]: Month over month, I believe we were down, but 78%%, something like that, to 3.9 million units of existing homes sold.
[SPEAKER_10]: And this is a continuation of the same path that we saw in New Year's past where we had a soft winter so far.
[SPEAKER_10]: Now, active lists of listings are growing, but at a slower pace.
[SPEAKER_10]: So, you have less opportunities than you were seeing or new opportunities at least than you were seeing just a couple of months ago.
[SPEAKER_10]: And then you have a softening labor market.
[SPEAKER_10]: So people are less confident what's going on in the broader economy, and I think the political environment, and but the trends do look different based on location.
[SPEAKER_10]: What's interesting is Florida, inventory is started to slow its increase of new listings.
[SPEAKER_10]: But in the north, it plays like the north east, you're actually seeing inventory starting to rise, which hadn't before.
[SPEAKER_10]: At a state level, homeless things were up most for Maryland, Maine, and Washington, but they were still up on every state except for Alaska in North Dakota.
[SPEAKER_10]: So listings continue to rise, the housing market continues to be weak, but I don't think it's how in the hand basket, I just think it's a new step lower, and I think the housing market will continue to struggle through this year.
[SPEAKER_10]: This is the best thought I'm just inclined, we have one goal here each every week, they
[SPEAKER_03]: In the early days, in Vestock was Jerry Klein and Steve Peasley.
[SPEAKER_03]: Now the torch has been passed, and a new generation of hosts is on the job, Justin Klein and Luke Guerrero.
[SPEAKER_03]: So when you've got finance and investment questions, don't forget to call in Vestock.
[SPEAKER_03]: 888-99, chart.
[SPEAKER_10]: Let's go talk to Bill in Northern California looking at EQIX.
[SPEAKER_04]: Yeah, I just am.
[SPEAKER_04]: Are you getting allowed to rain down there like we are up here in the north?
[SPEAKER_10]: Yeah, we got a good amount over the weekend, but I think it stopped earlier today.
[SPEAKER_04]: We're over five inches.
[SPEAKER_04]: We'll have three or four days.
[SPEAKER_10]: We'll stay dry up there.
[SPEAKER_04]: But anyway.
[SPEAKER_04]: Yeah.
[SPEAKER_04]: Thanks.
[SPEAKER_04]: held it and sold a few times on a couple of times at least.
[SPEAKER_04]: But I've had it now for like a year to almost two years.
[SPEAKER_04]: And, you know, when I sold it before, I just thought it was getting overvalued and last year, you know, they missed or something.
[SPEAKER_04]: And I think it was a man that went down, like a hundred bucks in a couple of days.
[SPEAKER_04]: And so I'm just wondering after this recent,
[SPEAKER_04]: You know, jump up.
[SPEAKER_10]: It's time to sell.
[SPEAKER_04]: Or part of the position at least.
[SPEAKER_04]: Yeah.
[SPEAKER_04]: How do you do that?
[SPEAKER_04]: That's really good growing down.
[SPEAKER_04]: That's one thing that I find we're really feeling about it.
[SPEAKER_10]: Yeah.
[SPEAKER_10]: I mean, it's growing.
[SPEAKER_10]: The fremales out there.
[SPEAKER_10]: Equinix is the largest third party data center provider worldwide.
[SPEAKER_10]: And so, you know, they have.
[SPEAKER_10]: What a lot of high schoolers are trying to do.
[SPEAKER_10]: They've been doing for many years, which is, you know, find locations, buildouts, and expand data centers.
[SPEAKER_10]: And so they have a lot of experience.
[SPEAKER_10]: They're first mover, advantage in that sense.
[SPEAKER_10]: And so a lot of times when they, you know, the AI companies don't have the capacity themselves, they'll go rent space out at an equinex type data center for their AI workflows.
[SPEAKER_10]: And so the demand is very high because a lot of other companies are capacity constrained.
[SPEAKER_10]: They can't find, remember, if you're building on a data center and you one thing is missing, well, the whole thing doesn't work.
[SPEAKER_10]: Well, that's HVag, whether that's energy, whatever it is, any need at all.
[SPEAKER_10]: And in a lot of cases, there's been data centers that are built that just don't have the energy to put in, right?
[SPEAKER_10]: Meaning they can't connect to the grid, they don't have that
[SPEAKER_10]: And so some of them are buying, you know, blue energy devices, they are, they're finding other ways to, to, to power them.
[SPEAKER_10]: But in some cases, maybe they ran in a funding or whatever.
[SPEAKER_10]: So the issue here is a lot of physical capacity constraints.
[SPEAKER_10]: So I think in the near term, they're going to continue to do well.
[SPEAKER_10]: Now the worry is that at some point do they catch up?
[SPEAKER_10]: At some point do these models become more efficient where they don't need.
[SPEAKER_10]: As much capacity, they could deep seek that situation or do more and more models able to be ran on device on your iPhone on your Android.
[SPEAKER_10]: That's another question as well.
[SPEAKER_10]: I could talk about before.
[SPEAKER_10]: So I think there's a lot of risk in the medium to long term.
[SPEAKER_10]: In the short term, I don't see things evolving that fast to where their business is going to turn.
[SPEAKER_10]: Now, the biggest issue is cash flow.
[SPEAKER_10]: They're always kind of growing.
[SPEAKER_10]: They're always putting more money into new capacity because the demand for data centers has continued to grow over the years.
[SPEAKER_10]: And so that's put them in a good place right now, but will that always be the case?
[SPEAKER_10]: So I like what you're thinking of saying, hey, let's,
[SPEAKER_10]: cell or trim a little bit into these moves because it's not a name that's going to likely double over the next year or so.
[SPEAKER_10]: Maybe it goes up a little bit more, but after this move, it's already moved from 725 back in December all the way up to 950 right now.
[SPEAKER_10]: For a reat, that's what it is.
[SPEAKER_10]: It's a real estate investment trust owns data centers.
[SPEAKER_10]: That is a big move.
[SPEAKER_10]: So yeah, this is the time I would trim.
[SPEAKER_04]: Thank you very much.
[SPEAKER_10]: No problem.
[SPEAKER_10]: Thanks for the calling.
[SPEAKER_10]: Stay dry up there in your account.
[SPEAKER_10]: Now I'm Justin Klein, I remind you about KPP Financial's parallel investing when we make a trade for our clients, I make the same trade for myself, same day, same price, same percentage of the account, no front running, no special treatments.
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