[SPEAKER_02]: On radio, on YouTube, streaming live on investtalk.com, and for our podcast subscribers, this is invest talk, independent thinking, shared success.
[SPEAKER_02]: Invest talk is made possible by KPP Financial, a registered investment advisor firm, serving clients throughout the United States.
[SPEAKER_02]: Here is KPP Financial Chief Executive Officer, Financial Advisor, Justin Klein.
[SPEAKER_00]: Good afternoon fellow investors and welcome back to
[SPEAKER_00]: April 8th, 2026 edition of Investock and a lot happening in markets.
[SPEAKER_00]: We had Taco Tuesday yesterday and the market rallied considerably, but will it hold that is the big question on everyone's mind?
[SPEAKER_00]: Will the ceasefire hold?
[SPEAKER_00]: Will they come to some sort of resolution or will we
[SPEAKER_00]: just going to be right back in this situation in a matter of weeks.
[SPEAKER_00]: So we'll dig into this and much, much more during this hour.
[SPEAKER_00]: We're going to answer your finance and investment questions.
[SPEAKER_00]: I'm Justin Klein.
[SPEAKER_00]: That's my goal here is to help you become a better investor, bringing topics to the table that I think are important.
[SPEAKER_00]: But what you are thinking is far more important.
[SPEAKER_00]: Now I can't read your mind, which means you have to call.
[SPEAKER_00]: with whatever is on your mind.
[SPEAKER_00]: Anything money related could be about a tickler stock, funds, an asset class, a strategy, investing concepts, personal finance concepts, et cetera.
[SPEAKER_00]: All this is on the table to discuss on this hour.
[SPEAKER_00]: Now, just a bit, I'll look at today's market performance, which was quite interesting.
[SPEAKER_00]: And then we're running out of the show topics for the hour, but first let's tackle this first-collar question now.
[SPEAKER_07]: I would like your opinion on thicker symbol and I, in the utility space, hoping to add this high dividend player to my portfolio and a Roth and one of the reasons I wanted to add it was because I don't have any utilities currently and I'm just wondering, do I need every sector to be represented in a long term portfolio?
[SPEAKER_07]: Thank you so much for your guidance.
[SPEAKER_00]: I'll address the last question first.
[SPEAKER_00]: And I think the simple answer that is, yes, you probably want to have some exposure in every sector.
[SPEAKER_00]: Why do I say that?
[SPEAKER_00]: Number one, there is always opportunities in every sector at some point.
[SPEAKER_00]: Sometimes more than others, but there's always opportunities.
[SPEAKER_00]: There's certain names that over the next, months and years, it's going to outperform.
[SPEAKER_00]: That could be a momentum name that
[SPEAKER_00]: is just killing it and they're gaining market share and proving the profitability and they continue to do so for no beers.
[SPEAKER_00]: It could be a value name that's down in its lock but will likely bounce back.
[SPEAKER_00]: So, always have some exposure to every industry to a degree.
[SPEAKER_00]: That can be small one two percent of the portfolio but don't leave anything out because there's also a diversification aspect here where
[SPEAKER_00]: Having some exposure across the market gives you more consistency to your portfolio.
[SPEAKER_00]: I am with a new onboarding client who had basically two asset classes, two sectors.
[SPEAKER_00]: And once she's doing well with the other not so well, especially recently, and it's just was port of herifications.
[SPEAKER_00]: So we're going to work on obviously getting her more diversification.
[SPEAKER_00]: And so yes, you want to have some exposure.
[SPEAKER_00]: Now this is Ny Source N.I.
[SPEAKER_00]: This is the utility.
[SPEAKER_00]: It's a natural gas and electric utility mainly in the northeast.
[SPEAKER_00]: Ohio, Pennsylvania, Virginia, Kentucky, Maryland, and Massachusetts.
[SPEAKER_00]: A 2.6% dividend yield, it's earnings are supposed to be up 8% this year, 8% next year, which for a utility is pretty good.
[SPEAKER_00]: It does have a decent amount of data, but consistent cash flow consistent business.
[SPEAKER_00]: And the technicals are certainly strong.
[SPEAKER_00]: I would imagine their energy demand from AI data centers is on the rise, I don't have that directly in front of me, but the technicals and the momentum in earnings tells me that.
[SPEAKER_00]: Last quarter revenue is up 20% year of year, which for utility in the United States is very strong.
[SPEAKER_00]: Now it's not cheap, I'll say that, but the momentum is good.
[SPEAKER_00]: Good profitability, good growth.
[SPEAKER_00]: I'm going to give N.I.
[SPEAKER_00]: a thumbs up, especially if you have no other difficulties exposure.
[SPEAKER_00]: Excuse me.
[SPEAKER_00]: Now we have a lot of ground to cover.
[SPEAKER_00]: Over the next 45 minutes or so.
[SPEAKER_00]: time permitting.
[SPEAKER_00]: We'll get to all of it.
[SPEAKER_00]: And our main focus point concerns this story.
[SPEAKER_00]: Employment growth for 2026 jobs have been resilient amid geopolitical crisis but will that maintain.
[SPEAKER_00]: Analyst warned that prolonged geopolitical conflicts could create headwins for future employment growth.
[SPEAKER_00]: So we'll dig into that story.
[SPEAKER_00]: In addition,
[SPEAKER_00]: We'll get to voice bank calls.
[SPEAKER_00]: One is on dividend investment versus value investment.
[SPEAKER_00]: I think this is going to be a good call.
[SPEAKER_00]: I like the title of that.
[SPEAKER_00]: It's going to be very interesting.
[SPEAKER_00]: And then Intel Corp, INTC.
[SPEAKER_00]: We also have some questions that came in via the comment section on the invest stock YouTube channel.
[SPEAKER_00]: As well.
[SPEAKER_00]: And of course, I welcome your finance and investment questions right now live.
[SPEAKER_00]: Fortify Pacific time each and every weekday if you're listening on their
[SPEAKER_00]: You can call right now, once again, it's eight and eight, nine and nine chart, but we're going to head into a quick break.
[SPEAKER_00]: Hang on, as I plan to talk about today's market activity in the next segment.
[SPEAKER_01]: When you tell your friends about Investork and they ask you why you listen, let them know there are many reasons and one is Harrell L. Investin from KPP Financial and Investorkose Justin Klein.
[SPEAKER_01]: Parallel investing means Justin invests right alongside KPP financial clients.
[SPEAKER_01]: He makes the same trade for KPP financial on the same day at the same price and the same percentages as KPP clients.
[SPEAKER_01]: There's no front running and no special treatment.
[SPEAKER_01]: In this way, Justin and KPP financials share the same risks and the same potential for success.
[SPEAKER_01]: Parallel Investing aligns the interests of Justin and KPP financial with those of his clients.
[SPEAKER_01]: Justin, Klein and Luke Guerrero are ready to answer your questions about Parallel Investing.
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[SPEAKER_01]: 888-99 chart.
[SPEAKER_00]: Let's go take a look at a very interesting market after the Trump talk going and green to a ceasefire based on a 10-point proposal that
[SPEAKER_00]: market rallied on that, a lot of it's short covering, and the SB was up about two and a half percent as that got 2.8 percent down up to 0.85 percent.
[SPEAKER_00]: Those have no doubt actually upperforming.
[SPEAKER_00]: But there wasn't a lot of falter.
[SPEAKER_00]: We pretty much closed on the S&P where we opened, which is notable, were right below major resistance as well.
[SPEAKER_00]: And it looks
[SPEAKER_00]: We'll see how this goes throughout the night, but certainly this is a tenuous situation and a plan or a a ceasefire that is probably not going to hold, this is probably the simple way to say.
[SPEAKER_00]: Good.
[SPEAKER_00]: But clearly there is
[SPEAKER_00]: There's a lot to be agreed upon here, and you have to get Israel involved and get them on boards if they don't violate the ceasefire and all of that.
[SPEAKER_00]: So this can be very difficult.
[SPEAKER_00]: Because the template peace plan calls for continued nuclear management, Richard Byron, control of the straight to our moves.
[SPEAKER_00]: Move up all US sanctions, and withdraw all of US military from the Middle East.
[SPEAKER_00]: Are any of the players really going to buy into that?
[SPEAKER_00]: Over the long-term, sorry, all of the players, are they going to buy into it, besides the run?
[SPEAKER_00]: I don't see it.
[SPEAKER_00]: So to me, this is not a rally I'm getting excited about.
[SPEAKER_00]: We're still below the 100-day living average.
[SPEAKER_00]: And once again, we didn't get a lot of fall for it.
[SPEAKER_00]: In fact, a lot of names faded throughout the day and closed near the lows of the day.
[SPEAKER_00]: If you go look at the NASDAQ, you go look at software stocks, anything that was is sensitive to inflation, struggle, and yes, oil, fell, but we're still at 96, the, call it $97 and WTI right now.
[SPEAKER_00]: Before the war, we were in the 60s, so yeah, oil is not up a hundred percent, it's only
[SPEAKER_00]: five or six weeks, but that's still going to feed into inflation that's going to tie the Fed's hands when it comes to cutting rates.
[SPEAKER_00]: It's going to be a drain on global liquidity, and that's without really a durable plan here.
[SPEAKER_00]: So to me, this is more of a relief rally.
[SPEAKER_00]: Doesn't mean it can't continue for a little bit longer.
[SPEAKER_00]: But I still, I'm still in the camp that we're getting, we're going to get a very choppy period through probably the third quarter.
[SPEAKER_00]: And we just started the second quarter.
[SPEAKER_00]: Now goal finished up 2.2% on the day, the dollar was down 0.8% silver up 4.7 copper up 4% on the day, Bitcoin up 3.4.
[SPEAKER_00]: And you saw yields down about 1 to 2 basis points, but that's not very much.
[SPEAKER_00]: Think about that move, in oil prices, the relief rally in equities, but treasuries didn't really rally very much, but tells you that the path of least resistance for rates and inflation are likely higher, and that's, once again, going to weigh on the market way, especially on growth, fear stocks, because of that higher cost of capital.
[SPEAKER_00]: It's still a very tent.
[SPEAKER_00]: Like I said, 10, you have a situation in the middle east that's unlikely to resolve in the short term.
[SPEAKER_00]: Even though this feels like a resolution, it's really not.
[SPEAKER_00]: So there's definitely a time where you want to revisit your positions, repalance, refocus yourself.
[SPEAKER_00]: It's the end of the quarter, right?
[SPEAKER_00]: We just ended the quarter.
[SPEAKER_00]: And this is a great time to reassess your acid allocation, your sector allocation, which sector should you be overweight underweight?
[SPEAKER_00]: That's currently what we're actually doing with our clients, our strategies right now.
[SPEAKER_00]: Let's go and answer a YouTube comment section question.
[SPEAKER_00]: Jake Samuel says, you asked for topics to discuss for the deep dives.
[SPEAKER_00]: We'll love a 101, 101 on technical analysis and chart reading indicators you look at and how to use that as an edge alongside company fundamentals.
[SPEAKER_00]: This is more difficult in this in a setting of a deep dive, but probably I do that a little bit on my weekend.
[SPEAKER_00]: recaps.
[SPEAKER_00]: So if you ever watch those, you'll see a lot of charts.
[SPEAKER_00]: I'll explain support resistance levels.
[SPEAKER_00]: I'll look at moving averages both daily, weekly, monthly charts, sectors, ratios, and you a lot of ratios of equal weight indices versus market cap weighted indices kind of tells you underlying trends of different factors in the market from value versus growth, large versus
[SPEAKER_00]: And then there's the chart.
[SPEAKER_00]: Like I said, I've shown you the charts that gives you the technical breakdown of it.
[SPEAKER_00]: And we do deep dives.
[SPEAKER_00]: We're doing an office a little bit now to kind of give you, you know, we have made focus points on the day, but now we're going deeper.
[SPEAKER_00]: And so you can find those longer videos, longer discussions.
[SPEAKER_00]: about each of our focus points that we do and we look and I go back and forth and we discuss that in a little more detail.
[SPEAKER_00]: So I encourage you all to take a look at those deeper dives over on our YouTube channel.
[SPEAKER_00]: But if you're looking for technical analysis, that's definitely something I'll throw in the mix here.
[SPEAKER_00]: But from definitely on a weekly basis, those weekend videos are going to help a lot.
[SPEAKER_00]: But thank you for the comments and the question and hopefully we'll add that to the document.
[SPEAKER_00]: Now this is in Vestock and I work continues after this break, but you can call me now or any time.
[SPEAKER_00]: As always, 24, 7, 365 at 8, 8, 9, 9, 9 chart.
[SPEAKER_01]: Justin Klein is here and he's ready with answers to your finance and investment questions call Invest talk 88899 chart.
[SPEAKER_06]: I was going to see what you guys thought of the stock and what price point would be reasonable to enter it and trade about their role in AI and what you're just looking at a good price point to get in on.
[SPEAKER_00]: Thank you.
[SPEAKER_00]: Looking at Dell technologies, I think everybody knows about Dell, especially if you bought a PC in the 90s, they were the dominant player now, they're more of an East player, but still
[SPEAKER_00]: Pretty solid balance sheet, good free cash flow about eight and a half billion return I best to capital 21, which is pretty solid, pretty strong.
[SPEAKER_00]: And free cash flow is at an all time high, nice, small dividend, but plenty of room to increase that dividend with the strong balance sheet.
[SPEAKER_00]: So I like that.
[SPEAKER_00]: What are they doing with that cash flow?
[SPEAKER_00]: They are buying back shares as well.
[SPEAKER_00]: Gotta love that.
[SPEAKER_00]: They're not trading at a unreasonable, multiple either, enterprise-valued to EBITDA based on next year's earnings, right around nine.
[SPEAKER_00]: So not too bad.
[SPEAKER_00]: Definitely of the PC makers, one of the best run.
[SPEAKER_00]: Second goals are fine.
[SPEAKER_00]: The biggest risk here is the same risk with all the AI data center players.
[SPEAKER_00]: And that is will the projects that are in the pipeline.
[SPEAKER_00]: pulled back for various reasons.
[SPEAKER_00]: Could it be ROI is no longer or is not positive?
[SPEAKER_00]: They're not finding the requisite revenue that makes these data center buildouts economically viable.
[SPEAKER_00]: So there's data aspect.
[SPEAKER_00]: There's supply chains.
[SPEAKER_00]: Will the supply chains hold up?
[SPEAKER_00]: in the midst of geopolitical conflict, then there's the power question.
[SPEAKER_00]: Recent headline I saw, which I didn't dig deeper fair, which was roughly half of next year's projects are looking to be scrapped because of lack of power.
[SPEAKER_00]: And we know that is an issue, which is about how many will be scrapped is it?
[SPEAKER_00]: Just a handful, or is it as that headline was suggest?
[SPEAKER_00]: Roughly half, and that could have a major impact on earnings estimates going forward, which the market is starting to price in.
[SPEAKER_00]: Fiscal year 2025, they earn $8.14 cents, fiscal year 2026, so it's earned $10.30.
[SPEAKER_00]: Next year, $12.69 and then $14.58.
[SPEAKER_00]: And if you're based on next year's earnings, if one once again, $14.58, 185 dollar stock, it's trading on the low, team multiple, but if growth slows, get back to more like $8.10 in earnings, well, then maybe this is a bit more expensive.
[SPEAKER_00]: But overall, I like it.
[SPEAKER_00]: Just understand that it is high risk because of what's already baked in to an existence.
[SPEAKER_00]: So I would be buying it probably on a pullback, so that'd wait a little bit longer on it.
[SPEAKER_00]: Let's keep things moving and rolling another listener question now.
[SPEAKER_05]: My name is Grant.
[SPEAKER_05]: I just had a question about dividend investing versus value investing.
[SPEAKER_05]: I just wanted to
[SPEAKER_05]: hear your take on both of them, kind of what they are and the role they play in your investment retirement portfolio.
[SPEAKER_05]: I still have 30 plus years to retirement and I just curious if you would prioritize one or the other as a part of your overall portfolio and then I also had a question with having international diversity in your portfolio as well.
[SPEAKER_05]: Most often times, as you know,
[SPEAKER_05]: growth growth and income stocks and ETF mutual funds, but when they come to me goes down, takes it down turns usually that international stocks outperform US stocks as well.
[SPEAKER_05]: So, I was just seeing what your take on that was or if it's smart, not have international exposure until you get closer to retirement or what things and I'll be listening, but
[SPEAKER_00]: A two kind of two separate questions, I'll start with the last one first, and to simplify the thought of foreign versus domestic, it really has to do with the dollar is the dollar strengthening is a getting weaker when the dollars weaker foreign equities tend to offer form.
[SPEAKER_00]: Partly currency translation, partly it's flow of funds, et cetera.
[SPEAKER_00]: And you just started that being a last year, where four and stock started to outperform, and you've continued to see that throughout this year as well.
[SPEAKER_00]: So I do think this is a time where you wanna be overweight the foreign markets.
[SPEAKER_00]: Don't wait until retirement, no, it's, and we're, I think we're in the first or second inning of probably a multi-multi yearch period where domestic, or four and stock's outperform.
[SPEAKER_00]: So yeah, you wanna be overweight.
[SPEAKER_00]: 25 minimum up to maybe even 50% of your portfolio in foreign stocks.
[SPEAKER_00]: So we're in that range, depending on your risk tolerance, level, et cetera.
[SPEAKER_00]: Now when it comes to value investing versus dividend investing, dividend investing is a closet value investing.
[SPEAKER_00]: If you go look at a dividend portfolio, large-cut dividend portfolios versus say a large-cut value portfolio value index, there's going to be a lot of overlap.
[SPEAKER_00]: So I rather just own a value, ETF, because dividend is only one way that companies can return capital shareholders.
[SPEAKER_00]: And Luke and I actually talked about it, we're gonna do a segment of next deep dive on that next week, which is that shareholder buyback, share buybacks are part of the capital return to shareholders.
[SPEAKER_00]: And in fact, it runs about one and a half times current dividend payouts.
[SPEAKER_00]: And that's really an underrated aspect
[SPEAKER_00]: Investing is the that's total shareholder deal buy-backed plus dividend yield.
[SPEAKER_00]: So don't just focus on dividends.
[SPEAKER_00]: I would focus more on value indices value funds Okay, next the best talk.
[SPEAKER_00]: We'll look into this question.
[SPEAKER_00]: What are treasury bond yields?
[SPEAKER_00]: Forecasting for investors best story tomorrow, but for me.
[SPEAKER_00]: I'm ready for your call at 80 to 99 chart
[SPEAKER_01]: There are a few things that make KPP financial special.
[SPEAKER_01]: One of them is parallel investing.
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[SPEAKER_01]: When KPP financial makes a trade for their clients, just in client makes the same trade for himself and KPP.
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[SPEAKER_00]: We had the jobs number on Friday.
[SPEAKER_00]: There was 178,000 jobs, creator in the month, but that's a big reversal from the 133,000 decline in the month of February.
[SPEAKER_00]: Consensus was about 59,000 and then three month moving averages around 68,000.
[SPEAKER_00]: Healthcare was responsible for much of the growth at 76,000 jobs there, construction up 26,000, warehousing up 21,000.
[SPEAKER_00]: and federal workers down 18,000, as well as financial activities that was down 15,000.
[SPEAKER_00]: As well, working age population fails, that's why unemployment rates stayed relatively low.
[SPEAKER_00]: You can see the boomer generation continuing to retire in record numbers, and they're leaving the workforce.
[SPEAKER_00]: Long-term unemployment continued to be relatively elevated, so that's an issue.
[SPEAKER_00]: So if you lose your job, you're not really getting hired as fast as before.
[SPEAKER_00]: In a way, growth disappointed only at 0.2%, month over month, 3.5% year over year, an essence of about 3.7% year over year.
[SPEAKER_00]: An hour has worked declined by one tenth of a percent from February.
[SPEAKER_00]: So that was that report.
[SPEAKER_00]: But I always like to say, okay, what did the ADP private sector report say?
[SPEAKER_00]: Because that is, has less revisions throughout the years.
[SPEAKER_00]: Because it is, it has lied data.
[SPEAKER_00]: It's not pulling and doing some sort of survey.
[SPEAKER_00]: It knows how many paychecks it's sent out to the employees of its customers.
[SPEAKER_00]: They have payroll that of more than 26 million private sector employees in the US.
[SPEAKER_00]: And they said overall hiring was steady, but job growth favors particular industries.
[SPEAKER_00]: And among the marginally 60,000 jobs were created according to that.
[SPEAKER_00]: that went into industries did well.
[SPEAKER_00]: Overall, goods producing industries, 30,000 additional jobs, however.
[SPEAKER_00]: Natural resources created 11,000, as you'd imagine, or mining with the cost of materials and minerals going up, oil prices going up.
[SPEAKER_00]: But manufacturing continued to lose jobs down 11,000, month of a month.
[SPEAKER_00]: Construction was up 30,000.
[SPEAKER_00]: So construction jobs continue to be solid, that is a good proxy for the overall economy.
[SPEAKER_00]: Then on the services side, total net 32,000 jobs positive, education to health services, the strongest up 58,000.
[SPEAKER_00]: The weakest was trade, transportation, and utilities and you would imagine with higher oil prices, higher gas, lean prices, transportation business was hurting.
[SPEAKER_00]: And now, shed 58,000 jobs.
[SPEAKER_00]: And from there, most of the other sectors were kind of mixed.
[SPEAKER_00]: What about regions?
[SPEAKER_00]: What regions of the economy are of the country did well in which Winston?
[SPEAKER_00]: The Northeast lost 29,000 jobs.
[SPEAKER_00]: The Midwest lost 26,000 jobs.
[SPEAKER_00]: The South gained 101,000 jobs.
[SPEAKER_00]: The strongest sub-region, the West, South, Central.
[SPEAKER_00]: So, to imagine that's like the Arizona New Mexico, Nevada, area, maybe Texas, yeah, maybe, maybe that, I'd be interested to see how they were, they defined West, South, Central.
[SPEAKER_00]: The West created 16,000 jobs, 7,000 in the mountains, 9,000 in the Pacific.
[SPEAKER_00]: What about size of businesses?
[SPEAKER_00]: This was interesting.
[SPEAKER_00]: Small establishments, one to 19 employees created 112,000 jobs.
[SPEAKER_00]: So, the small business, the entrepreneur sector, they're hanging in there, they're finding ways to cope.
[SPEAKER_00]: Medium-sized establishments lost 20,000 jobs.
[SPEAKER_00]: Those between 50 and 240, 9 employees lost 26,000 itself, and large establishments, 500 more or more employees lost 4,000 jobs.
[SPEAKER_00]: is that job stares earned about a four and a half percent pay rent pay increase year of year.
[SPEAKER_00]: Those are the change jobs got about six point six percent increase.
[SPEAKER_00]: So a lot of very interesting statistics here and I am increasingly liking the ADP number gives me a lot more details and less revisions that you have to worry about.
[SPEAKER_00]: A real live look at what's going on in the labor market.
[SPEAKER_00]: Now, how does the
[SPEAKER_00]: geopolitical situation are on impacts.
[SPEAKER_00]: That's going forward.
[SPEAKER_00]: Clearly, if oil stays 90 plus dollars, the barrel, that's going to be drain on liquidity.
[SPEAKER_00]: It means more and more of these smaller businesses are going to feel that impact.
[SPEAKER_00]: Business of all sizes, really, you're going to feel that impact.
[SPEAKER_00]: Higher, less is going to make certain jobs, certain products, suddenly, cost more and become less economical, which means less hiring for
[SPEAKER_00]: services or building those particular goods.
[SPEAKER_00]: So clearly this is a negative shock to the economy that thing is though liquidity is relatively robust banks are lending more and that is
[SPEAKER_00]: keeping things afloat for now, but the longer this drags on, you still have, once again, 90 plus dollar barrel oil, you have supply bottlenecks around metals of all kinds of natural gas, the thin urea that goes into nitrogen fertilizer that's eventually going to impact crop yields and crop costs and food prices, all of that, that is going to have, once again, a broader impact.
[SPEAKER_00]: Remember, COVID, we were shutdown for two, three, four months before things really started to open back up and that gunked up supply chains and caused a lot of shortages and higher prices, et cetera.
[SPEAKER_00]: And you can see the same here.
[SPEAKER_00]: So let's move back to the Best Talk Voice Bank for a question that came in earlier from Georgia.
[SPEAKER_04]: This is Chris from Atlanta.
[SPEAKER_04]: I had a question about Riley Exploration, Permian Incorporated, RETX,
[SPEAKER_04]: It's all about how to watch those for a while that I was going to ask to an energy flight, it kind of supplement my positions and exons.
[SPEAKER_04]: Could you just do a dive on this stock, or tell me if it's worthwhile, or if it's a little too risky of a plane, when I should look to possibly pick it up, look forward to hearing your answers.
[SPEAKER_04]: Thank you guys for all you do.
[SPEAKER_00]: Looking at Riley Exploration Permian, and as you can imagine, it is a shale producer in the Permian Basin, which is in.
[SPEAKER_00]: the west coast, west side of Texas and the east side of New Mexico, that's what the Permian Basin is, it's the area where there's been considerable supply growth.
[SPEAKER_00]: We're most of the supply growth over the past decade when it comes to domestic oil production has come from.
[SPEAKER_00]: And they have benefited.
[SPEAKER_00]: I take a look at revenue
[SPEAKER_00]: But it's come down from its eye around 413 million in Q32 of 2024.
[SPEAKER_00]: So growth is stagnated as the price of oil is stagnated, but as you'd imagine with oil prices going back up, estimates for earnings this year and next year continue to rise.
[SPEAKER_00]: So it's worth $7.63 next year and a $3.00 stock.
[SPEAKER_00]: That's cheap.
[SPEAKER_00]: And the balance sheet is fairly strong, about $150 billion, sorry, $150 million in net debt on the $145 million.
[SPEAKER_00]: Market cap, free cash flow right now, around 80 million, but that's gonna go up considerably.
[SPEAKER_00]: And based on these past earnings, return equity is 29% very robust, very strong.
[SPEAKER_00]: Then we look at the chart, and we see strong chart as well.
[SPEAKER_00]: Once again, as you would imagine, in the oil patch.
[SPEAKER_00]: So I'm gonna give this a thumbs up.
[SPEAKER_00]: Obviously pull back a little bit today, but I like the balance sheet.
[SPEAKER_00]: And 90 dollar oil makes shale drilling very, very economical, very, very profitable.
[SPEAKER_00]: Even more than an idea.
[SPEAKER_00]: So I'm gonna give Riley Exploration Permian REPX a thumbs up.
[SPEAKER_00]: Probably want a bit of a dip on it, but I think there's a lot of good momentum here.
[SPEAKER_00]: Now, when people take the time to leave and the best talk podcast review on iTunes, we'd like to thank them for their courtesy by getting to their questions.
[SPEAKER_00]: Quickly, in JDC and Baru, Bay Route says, guys, what is your opinion on McKessin, MCK at these levels?
[SPEAKER_00]: Fifteen percent off it ties.
[SPEAKER_00]: What's a good entry point?
[SPEAKER_00]: Looking at McKessin, this is a medical distributor.
[SPEAKER_00]: Distribute, especially.
[SPEAKER_00]: Care products, healthcare products, medical supplies, equipment, two pharmacies, hospitals, doctors, offices, et cetera.
[SPEAKER_00]: And this is the name that we have owned for clients for some time.
[SPEAKER_00]: It is one of our favorites within the healthcare space.
[SPEAKER_00]: Because no matter what happens with the evolution of the health insurance industry, which I do think is is eventually going to be reimagined again.
[SPEAKER_00]: because Obamacare solved some problems, but it didn't solve the inflation problem of health care, cost of health care, that's going to shift.
[SPEAKER_00]: So either way, McKesson wins because it's really going to be the man for health care.
[SPEAKER_00]: And boomers are getting older.
[SPEAKER_00]: They are needing more health care.
[SPEAKER_00]: They are needing more services.
[SPEAKER_00]: And the second largest cohort,
[SPEAKER_00]: Millennials no longer kids anymore, or adults moving into middle age, they're needing more services as well.
[SPEAKER_00]: Those are the business that doesn't have big margins, but it's just consistently producing strong cash flow.
[SPEAKER_00]: In fact, it's free cash flow is about 9.6 billion on a market cap of 106 billion.
[SPEAKER_00]: On a fantastic business, return on invested capital is 57% that is extraordinary.
[SPEAKER_00]: And what are they doing with those with that cash flow?
[SPEAKER_00]: They are just buying back shares, hand over fist.
[SPEAKER_00]: Not a big dividend.
[SPEAKER_00]: This is a good example.
[SPEAKER_00]: One of those, you want to look at the shareholder yield.
[SPEAKER_00]: Most dividend investors are going to look at this.
[SPEAKER_00]: Oh, it's a dividend yield.
[SPEAKER_00]: It's only 0.4% that's not very much.
[SPEAKER_00]: The yield's not high enough, but the shareholder yield is the return of capital of the shareholders absolutely is.
[SPEAKER_00]: And the business is just incredible.
[SPEAKER_00]: It is right near the top of our list of health care names in the marketplace.
[SPEAKER_00]: So I would continue to, we continue to on the kitchen and this little pullback.
[SPEAKER_00]: There's the wiggle to us, I think it's continues to just grind higher.
[SPEAKER_00]: 2021, this is trading at $180 per share.
[SPEAKER_00]: Now, it's at $871 per share.
[SPEAKER_00]: Pull back to the 100-in-maving average.
[SPEAKER_00]: When it's typically fine support, great time to pick up the customer.
[SPEAKER_00]: Let's go talk a bit about treasuries.
[SPEAKER_00]: There's always the worry that foreign investors are going to sell off treasuries and new data from the New York Fed says they are.
[SPEAKER_00]: That's not dramatic, but ending February 25th, this is before the war.
[SPEAKER_00]: Foreign holdings of treasuries dropped $82 billion to $2.7 trillion.
[SPEAKER_00]: Now, the peak in foreign holdings was right around 3.15 trillion, 2021, now it's down to once again, 2.7, a little less than 2.7 trillion.
[SPEAKER_00]: And recently, Turkey's central bank sold 22 billion dollars of foreign government securities since February 27th, the day of the Iran attacks that were launched by the U.S.
[SPEAKER_00]: and other data from Thailand and India, Central Banks show that they also sold some since the start of the war.
[SPEAKER_00]: And be of eight, noted that Middle Eastern oil exporters also sold some of their assets probably to make up for lost oil revenue, because the streets are almost being closed.
[SPEAKER_00]: Overall that it's a small portion of the overall of overall treasure holding, so probably didn't have a large impact, but it is notable.
[SPEAKER_00]: This is pushed yields on the two and 10 year yields up this month, the most since 2024 is that was in March.
[SPEAKER_00]: And this feeds into the economy, cost a capital for businesses and households and mortgages, credit cards, etc.
[SPEAKER_00]: So it's something to continue to watch to see what the updated data looks like when this gets reported by the New York
[SPEAKER_00]: Because the cost of capital in the economy in markets is vital to keeping things together, making things more affordable, and keeping valuations, which in many parts of the current market are fairly stretched, keeping them elevated.
[SPEAKER_00]: We have a disorderly rise in treasury yields that could be a big problem.
[SPEAKER_00]: This is Invest Hawk, I'm Dustin Klein.
[SPEAKER_00]: We have one goal here each and every week.
[SPEAKER_00]: Today, it's helped you achieve your own version of financial freedom, and I work continues after this final break.
[SPEAKER_00]: Excuse me, to get your questions in right now, at 8-899 chart.
[SPEAKER_01]: In the early days, in Vestock was Jerry Klein and Steve Peasley.
[SPEAKER_01]: Now the torch has been passed, and a new generation of hosts is on the job.
[SPEAKER_01]: Justin Klein and Luke Guerrero.
[SPEAKER_01]: So when you've got finance and investment questions, don't forget to call in Vestock, 888-99, chart.
[SPEAKER_03]: quick question for you.
[SPEAKER_03]: I know today was a great run up and everything it seemed.
[SPEAKER_03]: It was wondering though for a good eye internet play would Intel still be good to add to a portfolio for a long term hold in that.
[SPEAKER_03]: I know it went up quite a bit today but is the run over or would it still be a solid stock to buy and hold for the ongoing feature?
[SPEAKER_03]: Thanks look forward
[SPEAKER_00]: Did you say dividend?
[SPEAKER_00]: I thought he said dividend.
[SPEAKER_00]: Intel doesn't pay dividend.
[SPEAKER_00]: Doesn't mean it's bad investment.
[SPEAKER_00]: We actually bought this, we own this for clients.
[SPEAKER_00]: And this is one of those, one of those names that's, if you look at the numbers, it doesn't look too hot.
[SPEAKER_00]: That's the quantitative analysis.
[SPEAKER_00]: But when we were looking at the sector,
[SPEAKER_00]: we look at the qualitative analysis as well.
[SPEAKER_00]: And the qualitative analysis here is that the US government has taken a 10% stake in Intel.
[SPEAKER_00]: And we are moving into a, we already in it, we already in an economy that is more government controlled.
[SPEAKER_00]: Let's clear, that's Trump's ML.
[SPEAKER_00]: Butting in, trying to coordinate deals and whether that's for the U.S. government or for the companies to a bring workers home, bring business home, and could the Intel is now quasi, stay don't.
[SPEAKER_00]: And ultimately, that's a good thing for Intel.
[SPEAKER_00]: You have citizens, are they getting the best product?
[SPEAKER_00]: You know, these are, these are other questions you have to, you have to answer.
[SPEAKER_00]: But the bottom line is, this is good for Intel shareholders.
[SPEAKER_00]: And when this was announced in the fall, it broke out from a long downtrend.
[SPEAKER_00]: And held that for a number of months, kind of through your end.
[SPEAKER_00]: And that's what we said, you know what?
[SPEAKER_00]: We should be owning this.
[SPEAKER_00]: The group out in the mid-30s, now it's at 58.95
[SPEAKER_00]: It's obviously surge in the past week, bit over bot, probably wouldn't buy it today, but on a pullback, I would buy it because once again, in the best interest of the US government, who's now the owner to make Intel a winner and bring them back from the dead.
[SPEAKER_00]: Let's drop in one more question that came in earlier from Fresno, California.
[SPEAKER_08]: Hi, this is Roy, and I'm calling from Fresno, California.
[SPEAKER_08]: I would like your take on the stock,
[SPEAKER_08]: E and B is the symbol that's Enbridge energy and I would like to know at current prices if you consider a buy hold or sell.
[SPEAKER_08]: Thank you and I'll listen to the answer on your podcast.
[SPEAKER_00]: Looking at Enbridge energy in the air out of Canada, they provide
[SPEAKER_00]: or they are engaged in the revision of oil and gas.
[SPEAKER_00]: So they are partly an MP company, but they also have utility operations, gas distribution storage, gas transmission, renewable power generation, energy services, all this, they have pipeline services as well, the move, oil and gas throughout Canada.
[SPEAKER_00]: So it's a diverse business.
[SPEAKER_00]: Now, if you want diversity, you want a little bit of exposure to all three types of businesses, then this is the name for you.
[SPEAKER_00]: Personally, I want a pureer play.
[SPEAKER_00]: I want a utility, I'll go buy a utility.
[SPEAKER_00]: If I want a midstream pipeline company, I'll go buy a midstream pipeline company.
[SPEAKER_00]: If I want a Canadian oil and gas company, I'll go buy a Canadian, European, Peole and gas name.
[SPEAKER_00]: This just kind of gives you a lot of it.
[SPEAKER_00]: I'll wrap into one.
[SPEAKER_00]: And it's fine, it's good.
[SPEAKER_00]: But there's better names that are more pureplace.
[SPEAKER_00]: But definitely not think it's bad.
[SPEAKER_00]: It's kind of in a way.
[SPEAKER_00]: It's like a little mini Canadian energy fun.
[SPEAKER_00]: But I would, I would own something else, but this is relatively safe if you're looking for a Canadian oil.
[SPEAKER_00]: What?
[SPEAKER_00]: Well, I'm Justin Klein.
[SPEAKER_00]: My name is about KTV financials parallel investing, we make a trade for our clients, I make the same trade for myself, same time, same price, same percentage, no front running, no special treatment, we invest right alongside our clients, we should have the same risks and potential for success, and you can learn more by heading over to investtalk.com.
[SPEAKER_00]: Please tell your friends and family about a free podcast download with you at any time at iTunes or Spotify or head over to our YouTube channel and watch our videos.
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[SPEAKER_00]: Independent thinking, shared success.
[SPEAKER_00]: It's the best talk.
[SPEAKER_00]: Good night.
[SPEAKER_02]: Invest talk is a trademark of KPP financial, because of the nature of the interactive dialogue inherent in the format of this program.
[SPEAKER_02]: It's important for the listener to understand that not all comments made will apply to them.
[SPEAKER_02]: Specifically, nothing says she'll be taken to be investment advice.
[SPEAKER_02]: or shell statements on this program be considered an offer to buy or sell security.
[SPEAKER_02]: Because such advice is rendered solely on an individual basis, and at times, will require that the investor review a perspective before investing.
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