Join Bill Gundersen as he dissects the latest market trends in this edition of the Best Stocks Now show. With a focus on the volatility witnessed in the NASDAQ and the surprising movements in the crypto world, Bill offers his insights on stocks that should be on every investor’s radar. Discover the impact of the recent Fed announcements on interest rates and explore the factors influencing sector evaluations.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 06 :
And welcome to the Tuesday morning, November the 4th edition of the Best Stocks Now show. Boy, the market woke up on the wrong side of the bed here today, but it is improving here since the start. I guess that’s the good news. The NASDAQ, which was down… Oh, by the way, this is Bill Gunderson, president of Gunderson Capital Management. It’s the Best Stocks Now show. The NASDAQ was down over 300 points. I think you’ll see some buying coming into Palantir, especially. I thought they had a good report. I don’t know why it was down so much at the open, but it was. The NASDAQ down 217. That’s 90 basis points at 23,615. The Dow is down 135. That works out to just 29 basis points at these levels, a lot higher than we’ve been recently. We’re at 47,199 on the Dow. The S&P is down 60 basis points to 6,810. As investors start to chew their fingernails a little bit over these evaluations that we’re at. And the breakdown in crypto, which we’ll get to here in a minute. Gold is down today. The 10-year is behaving itself. It’s at about 4.5. 11% today, but once again, we have crypto, Bitcoin, taking it on the chin. It is down right now 4,000, let’s see, 4,000, no, 3,060, so it’s making a little comeback, 104.515. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. a fee-based only nationwide RIA, and also a financial planning firm. And we have gotten off to a real soggy start here in the market today. You know, like I say, number one, let’s go back to last Wednesday when the Fed made the decision, as expected, to cut interest rates by 25 basis points. But they also cast extreme doubt. In fact, I think they almost ruled out another rate cut this year. And that, for whatever reason, Barry, I don’t understand the correlation really between Bitcoin and interest rates. But, you know, interest rates do greatly affect your speculative end of the market by a lot, right?
SPEAKER 07 :
Yeah, certainly. I mean, as interest rates go down, period, you know, your cost of capital drops. And so it can make the appetite for risk increase in that example. And Bitcoin, probably the one thing it’s been the most correlated to, if you go back over the last probably 10, 15 years, is really a weaker dollar. And so as interest rates go down, usually all else being equal, that particular currency would go down compared to the world. Of course, the rest of the world’s interest rates matter, too, in that example. But probably the one thing that’s – if you look back at the biggest correlation as of late, it does have to do with dollar weakness. And so I don’t know – It doesn’t work out all the time with Bitcoin, but when you have, what, a billion, I think a billion dollars on tap right now in terms of sales from Bitcoin.
SPEAKER 06 :
A huge outflow last week in Bitcoin funds.
SPEAKER 07 :
Yeah, I mean, and Bitcoin’s a classic. I mean, it’s a supply and demand. You know, market, I mean, as all of them are. Well, it’s easy. The thing is, is you have, you know, mathematically, right? Theoretically, it should only go up because you have a, you know, as long as you can keep the demand there. Well, the reason the demand has been there is because they’ve created new ETFs, right? It’s been easier for people to invest in over time. And so they’ve made it more marketable, right, essentially.
SPEAKER 06 :
Well, you also have to control those sellers and keep them under control.
SPEAKER 07 :
And that’s where we’re at now.
SPEAKER 06 :
That’s the leak in the boat right there, right? If nobody ever sells and everybody just keeps buying, you know, it has nowhere to go but up. But when that boat springs a big leak, which it did last Wednesday with the Fed’s comments, right, We’re seeing some extreme pressure. And I’ve been talking about this for the last couple of weeks because it’s testing its 200-day moving average.
SPEAKER 07 :
Well, and it’s across a lot of risk assets, right?
SPEAKER 06 :
Yes.
SPEAKER 07 :
With Bitcoin being one of the most speculative.
SPEAKER 06 :
Yes, 100%. Well, the markets ended mixed yesterday. And, you know, the two stocks that are getting hit today… It proves the fact that nobody really knows what companies are going to report with their quarterly earnings. If they do, that’s insider trading, number one. And number two, it’s hard to gauge what the reaction will be. Yesterday, if you looked at Palantir’s chart yesterday, it was solid. It was breaking out to new all-time highs. And today, let’s see where it’s settled. Now, when they announced their earnings after the close yesterday, the initial reaction was it’s up 5%. But then this morning it was down 8%. I’m seeing a little bit of buying coming into that. Yes, definitely. As it bounces off its 50-day moving average, it’s down 7.7%. I thought they had a phenomenal quarter. Report-wise, it was great. What do you want from Palantir, all right? And there was no signs of weakness in the chart. Which is opposite of what I saw last week. I saw weakness in the chart of Chipotle as the day wore on and as that earnings report approached. It was getting bad enough for me to sell the stock before the close of the market, and Chipotle got clobbered after the market. So there was a warning there in the chart, but there’s absolutely no warning there in Palantir, which makes me think that there’s going to be some buying come into this thing because they produced a tremendous quarter. Chipotle did not. And the other one that was hitting new highs yesterday was Uber. It was threatening to break out to new all-time highs. I thought it had a decent report, but their earnings were not good. They actually reported a minus 33% quarter in earnings, and it started off.
SPEAKER 07 :
You had NVIDIA flirting with all-time highs, you know, intraday all-time highs yesterday.
SPEAKER 06 :
And Tesla. Tesla was breaking out to new all-time highs, too. So, okay, what happens is yesterday before the close and we go to bed last night, we wake up. I did see that the futures were down like 350 last night on both the Dow and the NASDAQ. As I was retiring for the night. How did you sleep after that? You know, just fine. But it was mostly the two things I saw with the sell-off in Palantir, which is now kind of reversing itself. I’m seeing accumulation instead of distribution right now. And I also saw a couple of big firms, Goldman Sachs and Morgan Stanley, both put out calls on an impending correction in the market. I don’t know if that was coordinated between them and they’d taken short positions or what, but that was also weighing on the market. And they’re citing the very thing that I’ve been citing, And that is valuations. In fact, I’m so concerned about valuations that just for the heck of it, I did a postmortem on the year 2000, the last time valuations got this high on the market. If you didn’t get the newsletter on Friday, that’s a real lesson. I think there might be an article there too, Barry, on let’s revisit the year 2000 if you want to, if you’ve got the stomach for it, because there’s a comparison to be made between now and then, and the link that connects them is the valuations that we’re at right now in the market. I’ve got a new bumper sticker on my car, Bowman for President. Who do you say? Bowman. Are they throwing their hat in the ring? Well, Michelle Bowman is the Federal Reserve’s vice chair. She believes that the reduced level of jobs growth is more concerning than inflation hovering above the Fed’s goals, she said on Tuesday. I’m with her 100% on that. The inflation is here, and it’s not going away, and the results of it have been horrendous. But I’ve seen a real cooling in the inflation, and I don’t think the Fed should be waiting their decision towards that. I agree with Bowman that they should be waiting their decision towards the slowdown in the jobs market. So anyway, she’s my gal for the Fed chairperson. I don’t think we’ve ever had a woman as chairman of the Fed.
SPEAKER 07 :
Well, we had a guy. She ended up being the Treasury Secretary.
SPEAKER 06 :
Yeah, she was Treasury Secretary. Was she ever in the Fed? Yeah, Janet Yellen, yeah.
SPEAKER 07 :
Yeah, she was after Bernanke. She was after Bernanke. I think she was the first, though. I do believe. I think you’re right.
SPEAKER 06 :
I thought it went right to – I’m going to look that up. I thought it went right to our friend Jerome Powell. But regardless, Michelle Bowman gets my vote for the next chairman of the Fed. I think she’s on the list of finalists. When we come back, crypto funds record outflows of $360 million last week. The only way I can judge these cryptos is by looking at charts and pretending that they’re a stock. And I sent out a chart yesterday saying, I do not like what I see. This has just continued to deteriorate over the last couple of weeks. Where are we at right now? We’ll be right back. And welcome back here to the second quarter of the Best Stocks Now show. Well, Bitcoin has gone from $125,000 here. To $104,000, okay, that is a drop of, it hasn’t quite hit bear market territory. Let me just do the math on that real quick. $125,000 down to $104,000 works out in the percentages. to a drop of 16.8%. So over 15, I mean, the technical terminology for that area of a drop is a correction. If you get worse than 20, it’s considered a bear market. So you’re right in there between the correction and the bear market. And just looking at the chart, I would say this. You know, it’s like on its last bastion of support here, technical support. And it’s not helping the outflows. Obviously, the money’s got to come in faster than it goes out. I mean, that’s the whole Bitcoin business model there for the most part. And you’re looking at last week, I saw that the crypto records outflows of 360 million last week. So, you know, obviously that was more than the average. in flows uh and there are some inverse bitcoin etfs you know i i tend to just stay away from bitcoin but you know there are times when i’ll step into maybe an inverse etf have a little fun it’s tough to predict in either direction i mean like i said if it’s hard to value then it’s also hard to to determine if it’s undervalued i use the technicals I go by the charts, and the chart yesterday was horrible, just horrible. It continues to break down. And once it starts to break those support levels, you know, I even, when I was down at the Florida business, South Florida business conference, most of the people there were Bitcoin fans and owners of Bitcoin. And, you know, my comments were not very popular. That’s okay. That’s what makes for a market. You don’t want to go to some conference just to hear the same thing. No, I’m going to tell it like it is. I’ve always been that way. I just have a hard time. Someone tried to explain it to me. It made no sense whatsoever. I could pick apart that argument. Every argument he made for the intrinsic worth of Bitcoin, I could easily come up with an argument against it. Easily. So anyways, it is what it is. And if it crosses below that 200-day moving average, there’s two charts I watch. I watch BITO, B-I-T-O. That is a pure Bitcoin crypto fund. But the one that has the longest track record is GBTC because they had a closed-end fund way before.
SPEAKER 07 :
Yeah, before we got the spot ETFs.
SPEAKER 06 :
Yeah, so you have a much longer trading record on GBTC, which I think is a better way – to analyze it and you can look up gbtc in the app and you can see what the longer term performance of bitcoin has been but also the chart has it would be more reliable in looking at that gbtc i would just say watch that 200 day moving average uh and if you see a 50 day crossover it’s 200 day to the downside that would be a death cross on bitcoin in the meantime the eu ministers race to set new climate target ahead of uh COP 30, which kicks off this week in Brazil. Now, that used to be a really big deal. It’s not getting as much attention these days. But Europe is, for the most part, still all in on the greenhouse gas emissions. They want to decrease those by 90% by 2040 compared to 1990 levels. And I was reading also yesterday that the CEO of BP said, was warning that it’s gotten so draconian there that they’re threatening to just completely pull out of Europe. So you have to keep the home lights burning while you’re switching over to renewable. But I hope that the renewable that they’re talking about includes nuclear because there’s just no way that wind and solar are going to keep up for this burgeoning demand. from these data centers. And, you know, some of the EU members, they’re not all in agreement on this. You’ve got some that are saying, yeah, you know what, we’re pretty worried about all of this. We’re not going to be as draconian as some of the others. But when it comes to other countries like Sweden and Spain, the Netherlands, they’re all in on the whole green energy thing.
SPEAKER 07 :
Well, and you could, I mean, my whole thing is you could see that this is going to be an issue. I mean, they were having trouble, you know, worried about cold winters, right? I mean, two years ago or a year, you know, last year in terms of gas and energy from, you know, from Russia, which a lot of this is kind of, you know, Ukraine situation is kind of centered around as well, you know, for the last handful of years. I just don’t see how they’re going to meet their AI power needs. No. It’s got to go to nuclear. There’s got to be a crunch there. I just don’t know what they’re going to be doing.
SPEAKER 06 :
And it’s going to take a while to develop that nuclear. Michael Burry’s big short instincts target AI trade. He put in puts on NVIDIA and Palantir.
SPEAKER 07 :
Part of Palantir’s weakness today, actually.
SPEAKER 06 :
Yeah, good luck with that. You know, I was kind of like, all right, I can see the logic there for a short-term trade. But then when I saw what he was buying, he lost the credibility with me. He’s buying Pfizer and Schlumberger and Halliburton and whatnot. And I thought, you know what, I don’t know how good of a stock picker he is. Maybe he can pick the shorts.
SPEAKER 07 :
Yeah, I mean, Palantir to me is a lot like how you mentioned, you know, Bitcoin in terms of, you know, you don’t know which way. I mean, it’s a volatile name in both directions. So to be short in the name is…
SPEAKER 06 :
you know to me is not much different than being long well i feel a lot i mean it’s i’d much rather be on the long side of that tree yes exactly and shorting uh all of a sudden there’s private debt etf starting to come up i i would feel a lot more confident shorting private debt than i would nvidia which may be the greatest stock of all time you’re really going against the grain there now he he made his fame and fortune when he saw he shorted the mortgage debt market which right That’s a lot different than NVIDIA.
SPEAKER 07 :
He also did it much more underneath the radar.
SPEAKER 06 :
There weren’t any inverse funds for him to load up on. Now you’ve got inverse ETFs on Palantir and NVIDIA. The Granite shares has a one-time inverse, which you could purchase if you agree with Burry. And there’s a two-times inverse single stock ETF that you can buy. Okay, then we’ll end with this. The riskiest thing I see in the market today is private debt. And the second most risky thing, and it’s right up there with crypto. In my book, you may disagree with me, but that’s my book. My 25 years of observing the markets is private equity for individual investors. Merck is getting $700 million from Blackstone to develop a cancer therapy. where are they getting that $700 million from private investors? So just think, what are the odds of giving Blackstone $700 million, turning around giving it to Merck to come up with a cancer therapy? That’s a long shot of a bet, but it ends up in private equity funds, and hopefully, and maybe, not hopefully. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersenCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show. And welcome back here to the second half of today’s Best Stocks Now show. I learned a new term that I have never seen before in the market, and it only applies to software stocks. It’s called the Rule of Forty. which states that your growth rate minus your profit margin equals the sum of that is either if it’s 40 or better, then you have accomplished quite a feat. And Palantir has done that in its current report. If we look at Palantir’s quarter, which they reported last night after the close, initially the stock popped by 5%, and it is coming back. It was down over 8% this morning. Now it’s down to 6.3%. I like to see buying coming in to a stock. That’s a good sign. If you take a look at their sales, they were up 63% year over year. I think that’s the best quarter. This is the best quarter Palantir has ever had. Their earnings were up 110%. And I think that’s also, at least out of the last four quarters of earnings, that’s their best earnings ever. growth that they’ve ever had, at least in the last 12 months. I don’t have the records here before that. But here’s what everybody is saying. CEO Alexander Karp, who’s quite a character, interesting guy. And Palantir’s a stealthy kind of company. He’s a stealthy kind of CEO, isn’t he, Barry?
SPEAKER 03 :
He’s a stealthy dude.
SPEAKER 06 :
He looks the part. Kind of creepy under the, you know.
SPEAKER 07 :
He looks like he could be on the grid or off the grid whenever he wants.
SPEAKER 06 :
Yes, somewhere in Montana.
SPEAKER 07 :
Looking back and forth, yeah.
SPEAKER 06 :
So anyways, he’s stating that the quarter that they just delivered is arguably the best results that any software company has ever delivered. Well, I don’t know about that. We’ll get Jeff Webster to weigh in on that if he’s ever seen a better quarter than this. He said a normal enterprise company should not have a rule of 40 above 100. That means if you take their growth rate and subtract their profit margin, it’s over 100. Not just 40, but over 100. CARP highlighted the company’s outperformance in U.S. commercial growth and the unique ability to generate both top line and bottom line. That’s where the profit margin comes in. which, you know, software companies can have just obscene types of profit margins, and that’s why they trade at such high multiples, because of those fat profit margins. Palantir currently trades at a P.E. ratio of 324. which makes it vulnerable. You know, if they were to ever miss a quarter, you’d see quite the sell-off in that thing. Their forward P.E. ratio right now, looking at next year’s earnings estimates, is only 220. Yeah. It’s quite reasonable compared to 233 P.E. ratio.
SPEAKER 07 :
Yeah. To me, I mean, the biggest thing for them is, I mean, they got hit during, remember Doge? I mean, they got hit pretty well because of, their need for the federal government being such a big customer for them. But they’ve continued to add their commercial business. I think their commercial business grew over 100% this quarter. So as they continue to balance out that commercial business with sales, The federal government spending, it’s quite a combination if you can build that up to where you don’t just have the government being your biggest customer, but it’s also nice to have. They’ve got deep pockets. It’s nice to have them as a customer also.
SPEAKER 06 :
But they’re highlighting their growth in commercial markets this quarter.
SPEAKER 07 :
Yes, exactly, which is huge. I mean, it’s no different than – I kind of equate it to when Apple – It used to be all about the iPhone, right? It was all about the iPhone sales. And then they’ve obviously built their ecosystem outside of that, whether it’s through wearables or iTunes or what have you, App Store. And so for Palantir, it’s huge. If they can continue to build that business and revenue streams outside of,
SPEAKER 06 :
the government right and still keep that government revenue it’s a pretty it’s a pretty powerful uh company going forward the public the company came public late in 2020 i still remember i’d never really heard of it other than it was this stealthy murky kind of company that done a lot of work for the government It came public at $10 a share. It shot up to about $45 per share during the sugar high period of late 2020 and early 2021. Then along came the Fed with their draconian Fed rate hikes, and that stock went down to $6. So it goes from 10 to 40 down to 6. Okay, when I put in the all-out buy on the NASDAQ on January 2023, it was trading at 6. What is it today?
SPEAKER 1 :
194.
SPEAKER 06 :
So in the last two years, it’s gone from 6 to 194. And if you go back and you look at, I don’t remember which week it was, but the headline of my newsletter in January of this year was my top conviction pick for 2025. And it was Palantir. And it has been the number one performer in the S&P 500 so far this year. Not only do I have that newsletter to point to, but I also was interviewed when I was back there in New York at the NASDAQ by the CEO of Granite Shares. And I also told him it was my number one conviction pick. When all the others, you know what all the others’ conviction pick was? That we attended that kind of gala with, it was Bitcoin. How imaginative is that? It was all these younger guys saying that Bitcoin was their number one conviction pick. for 2025 well i think palantir has outperformed bitcoin by a wide margin but i thought like i say i think they had an outstanding quarter yes you have a valuation problem but there’s not many companies that come along like this uh and have that kind of growth and i’ve said it and i’ll before and i’ll say it again it’s the number one software stock in the world today Just as NVIDIA is the number one semiconductor stock in the world today. And, you know, also when you invest in Palantir, you’re getting a lot of the things that they’ve invested in. They are much like NVIDIA. where they’re taking a lot of that excess cash and they are establishing joint ventures. They established one today with the United Arab Emirates to drive AI transformation. So, I mean, they’re sitting right in the center. of this whole ai universe and they have their tentacles in a lot of things you know not only government uh but they’re they’ve got their tentacles in cryptocurrency they’ve got their tentacles uh in uh in security uh you know the uh cyber security so anyways and of course ai All right, now we go from a stock like this cryptocurrency stock or Palantir to Pfizer. And that was one of the stocks that I saw that our friend the Big Short was buying. And Pfizer has just been a dog of a stock. We’re going to pull that up here on the Best Stocks Now app and take a look at the performance of it. For me, Lilly should have replaced it in the Dow a long time ago. Lilly has a vibrant pipeline along with a monster drug in ZepBound. You know what Pfizer is still living off of? You know what their growth was driven by? The COVID vaccine.
SPEAKER 07 :
How many people do you know?
SPEAKER 06 :
That’s what they pointed to for their great quarter. Well, let’s just take a look at their great quarter. Okay, Palantir sales were up 63%, sales up 110%. Pfizer reported a monster report. Their sales were only down, only down 6% versus the same quarter last year. But they’re thanking the COVID vaccine for only being down 6% year over year, and their earnings were down 18% year over year. Compare that with the monster earnings from Lilly. Their sales were up 54%, and their earnings were up 495%, which begs the question, and answers the question, where do you find best stocks now? Well, I mean, that’s what the app is built on. I mean, compare two giant pharma stocks side by side. Which one would you rather own? Burry should be buying Lilly, not Pfizer, that has just been a horrible, horrible performer over the years. Okay, a few more in the news here today, including Uber, which also had a less than spectacular. It was a little bit disappointing. We’ll be right back.
SPEAKER 03 :
And welcome back here to the final segment of today’s Best Docs Now show. And before we leave the subject of Pfizer…
SPEAKER 06 :
An investment in Pfizer 10 years ago, including the… I’ll bet it’s a dividend hog. Let’s see. Let’s take a look. A dividend hog is a stock that pays a huge, giant dividend to try to attract… you know investors and keep them around in a lot of cases right now the dividend yield on Alberto Borla is still running I think he’s still running Pfizer the dividend yield is seven percent Barry that’s a red flag oh no I could live off of seven percent a year well it’s another dividend trap Even worse than the dividend trap that Verizon is. Because even when you count that big dividend yield, you look over the last 10 years at the stock and how it’s performed, you have earned a measly 1.6% per year. I’m going to go to the investor meeting. I’m going to stand up in the back with a sign. What’s your 10-year record, pal? This is ridiculous. Okay, now it’s gotten worse. Now take the vaccine out of the mix and what would they have? Over the last five years, the stock has lost 2% per year, while the S&P 22% to the upside. And over the last three years, you’ve lost 15% per year. But I just know that when I write an article, if I do on Pfizer and call it a dividend trap, classic dividend trap, and say, look. Even with the 7% dividend, you’ve lost 14.5% per year over the last three years. That means you’ve lost 21% in the stock. But you’ve gotten back 7% in the dividend.
SPEAKER 07 :
Well, I’ll put it this way. The stock was $59 at the end of 2021. And the stock is $24 now, over three years later. I mean, how much pain would you want to endure and keep holding it during that whole period? But when you look at it, like you’re talking about, and I know exactly where you’re going with that, institutional ownership, right? I mean, even with… Years of underperformance, and still it shows up in how many portfolios?
SPEAKER 06 :
Everyone. 99% of the portfolios that come to me from a Wall Street wire house firm own Pfizer. 65% institutional ownership. Yeah, well, you know, and their growth rate over the last 10 years in earnings has been minus 2% per year. So, you know, look, I’m just a truth teller here. I’m just pointing to the numbers, which don’t lie. You can’t hide from that track record. And that’s where I lost Michael Burry. I can see, yeah, these stocks are way high, but you don’t pick on the best stocks in the market to establish a short position, in my opinion. You pick weak stocks in the market that are only getting weaker as we go to pick on.
SPEAKER 07 :
One of the top ten holders of the stock, just out of curiosity, is State Farm Mutual Automobile Insurance Company.
SPEAKER 06 :
Yeah, well, they run a bunch of mutual funds. They used to. I don’t know that they still do.
SPEAKER 07 :
This is the automobile insurance group.
SPEAKER 06 :
Well, I think Buffett might have. I don’t know if Buffett had a big. You could look at this as a classic value stock, the same you’d look at Verizon. It has a P.E. ratio of eight. And a dividend yield of 7%, exactly the same numbers as Verizon. Okay, let’s move on here to the next stock under the microscope when we’re going to put Uber. Uber outperforms on Q3 results, but the guidance curbs investor enthusiasm. I think the jury’s still out on Uber a little bit. Yes, it was a massive disruptor, disrupting the entire taxi industry. Is it a highly profitable business? I’ll bet if you put up Uber’s profit margin, I’ll let you do that, Barry, Mr. CFA. I mean, I could do it too, but… The profit margin of Uber versus the profit margin of Palantir. I’m just going to guess that Palantir’s profit margin is somewhere in the 60% to 70% area. And I’m going to guess Uber somewhere in the 10%. percent area it’s just it’s not a high margin business giving people rides around town and delivering meals meals on wheels gross profit margin 33.9 that’s lousy okay what is palantir’s growth oh my gosh it is obscene uh and yet i don’t hear you know the politicians clamoring how can they have such a profit margin they let’s tax the hell out of them But anyways, Uber is down 6.4%. But they have their quarter. Their sales are up 20%. But they actually… Palantir is an 80. Yeah, 80% gross profit margin versus 30%. For Uber, now that, just put that, okay, if you own a hamburger stand and the hamburger stand next to you makes 80% gross margin on every hamburger they sell and you make 30%, you’re not going to be in a competitive, but now you’ve got to compare Uber against other peers. You can’t really compare it against the software company. But it does point to the obscene profit margins, if you hit it big, that a company like Palantir and CrowdStrike provide. And Cloudflare, those are the three best in my book, software stocks out there in the world today. Okay, so we have Uber down. And the other one I wanted to bring to your attention here, oh, Embraer, the Brazilian company, which we own in our value portfolio. They reported earnings ERJ. You know what? They changed their symbol. EMBJ. I’ve got to do that in the app. EMBJ. New symbol at Embraer.
SPEAKER 03 :
Embraer is down 2.5%.
SPEAKER 06 :
When did they change it? EMBJ. Over somewhere in the last couple of weeks. I don’t know what they’re hiding from, but they changed the symbol on me. But it’s down 2.6%. Their sales were up 18%. That’s pretty good. But they did not have a highly profitable. They only made 30 cents this quarter, which was about in line with the estimates. Okay, we’re out of time. If you look at your statement and open it up and you see Pfizer and you see Verizon and you call your broker and you say, why do you only see? Well, just look at the dividend yield. Where else can you buy a dividend payer of 7%? These are a dividend aristocrats. No, they’re dividend aristocrats, in my opinion. Well, if you’d like to get four free weeks of our newsletter and the live alerts, the app, just look up your stocks in the Best Stocks Now app. It is unvarnished truth. Go to GundersenCapital.com. If you’d like a review of your portfolio, maybe it’s time to make some changes. Give us a call. Set up an appointment at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 05 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIBC and FINRA.
