Explore the intricate world of stocks with Bill Gunderson, who shares his expertise on the latest in financial news and updates. From the role of technology stocks in shaping the market to geopolitical influences on global trade, every detail is scrutinized to provide a thorough understanding. Amidst the volatility, find out why stocks like Robinhood and Applovin are catching the eyes of investors and what the future might hold for emerging markets. This episode is a must-listen for anyone looking to stay ahead in the fast-paced investing world.
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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.
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And welcome to the Monday, September the 8th Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with Barry Kite, our chartered financial analyst and certified financial planner. We have another mixed open. for the markets today with the stodgy old Dow Jones Industrial Average down 87 points, but it has been hitting new highs recently. It’s at 45,313. Meanwhile, over at the NASDAQ, you have two NASDAQ stocks being added to the S&P 500. And that is helping the NASDAQ quite a bit. The NASDAQ’s up 143 points. I’m thinking that’s a new high. I’ve got to look at my chart here.
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21,844.
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And I’ll let you know here in a bit what those two stocks are. But they’re two major stocks in the NASDAQ being added to the S&P 500 today. The S&P 500. Speaking of which, it’s up 14 points today to $64.95. Small caps are down a third of a percent. The interest rate environment, rates continue to fall after plunging last week. We’re clear down to 4.06%. in hopes of that elusive rate cut next week. Crude oil is up 1.5%. Gold is hitting a new all-time high at 3,663. And Bitcoin is also up 1,000 today to 112.225. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunnarsson, president of Gunnarsson Capital Management, a nationwide fee-based only money management firm. And we’re headed coast to coast next week, a week from today to the Bay Area. I know they’re having their big tech conference there this week, Barry. It’s the big one of the year. So a good thing we didn’t plan our little trip for this week. I don’t think we could have got a hotel room or a way. I couldn’t have put Edie in a Waymo because they’d be all booked. But anyways, I’m really looking forward to getting out there next week and visiting the folks in the Bay Area. Boy, there’s a lot happening. This week we’re going to get two very important inflation reports. The CPE, the CPI, and the PPI. And, you know, it would take a pretty hot report for them not to cut rates next week. That would be the other big event. That hopefully will happen while we’re in the Silicon Valley. While there’s a lot of buzz for a 50 basis point cut, It’s great to think about that, wishful thinking. I don’t think our stubborn old friend at the Fed, Jerome Powell, will go 50 basis points. You can barely get 25 out of a guy. I mean, right? It’s like pulling teeth.
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We’d have to get a cool CPI and PPI report. Really cool. But you do have 12. I mean, there is 12% of people out there or investors who think that’s going to happen. We’ve got 80% of a cut. 12% of a 50 basis point cut. No one’s in the no-cut camp.
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Nobody’s in the no-cut camp, except for Jerome Powell, but I think he’s going to be outvoted. by everybody else. And in the meantime, Trump continues to work on reshaping the Fed a little bit. But hey, they cooked their own goose. I mean, Kugler did the same thing. He wasn’t truthful on his mortgage applications. He’s already resigned. And the other one, Lisa Cook, she has not resigned. She’s going to fight to the bitter end because that’s a pretty good gig that you don’t want to lose. And she’s got a couple of good mortgage rates too, right? Yes, and she doesn’t want to lose that favorable rate she got. So anyways, we have that. And, of course, Powell’s term will be up next May. And I don’t see them re-signing Powell to another contract. That’s for sure. They’re going to let him go.
SPEAKER 04 :
all right and you know what hey i would say this i mean those weak jobs report doesn’t that enforce the argument that uh he’s too late sir well i mean it certainly enforces the fact that you know you need you know it’s time to start cutting a bit um like we said some of the i saw a number today again i know i mentioned it last week but you got 10.6 percent of you know, new college graduates who cannot find a job, and the problem there is that’s the highest you’ve ever had in a non-recession time frame.
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Well, there’s going to be some jobs at the Hyundai plant. Did you see that?
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It was an interesting one.
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Yeah, I mean, not only did South, okay, so South Korea on the one hand, God bless them. They opened up a plant in Georgia, right, and they’re building their cars here. But they brought in a bunch of their people illegally from South Korea. I don’t know how much of the workforce, but quite a bit of the workforce was here illegally. The plant gets raided. South Korea is saying, hey, send our workers back. Right now they’re being detained. But, you know, if you’ve got – that kind of defeats the purpose of building cars here in the U.S. by bringing your own workers in from South Korea.
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It just surprised me that you have such a big company, right? I mean, I get it. You’ve got some of these farms and some of these other, you know, kind of individual home builders or whatever, right?
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Right.
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The rough labor. Yeah. When you’ve got an actual workforce, particularly in an industry that’s highly unionized, I’m sure a lot of the big three in Detroit aren’t very happy that you’ve got these workers who technically shouldn’t be here. I don’t know if it’s a paperwork issue or what, but it seems… Seems like they would have some big fines potentially coming. I don’t know.
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Well, and it could be a reason why he kept their car tariffs at 25%. He must have already known about this. It gives Japan the 15% tariff. So they’re going to have to make amends and do something to get back in the good graces. I mean, that’s Hyundai and Kia. Those are two pretty big auto sellers here in the U.S., so we’ll see what they do to try to get back into the good favors of the administration. Now, the two stocks being added to the S&P 500 are actually two of our biggest winners of all time. We don’t currently own Applovin, but we made $700. Over 700% in that stock, APP. And it continues to really be a good stock, even though it leveled a little bit, and it’s not the good that it once was. It’s being at the 500 today. That means, you know, think of all the people that own the indexes. A lot of people, the indexes have to buy those stocks. That means there’s going to be a lot of buying in those stocks. APP is breaking out to a new all-time high. One of the great success stories of all time, it’s now a $185 billion company out of Palo Alto, California, home of the Stanford Cardinals. And my nephew is a Ph.D. from Stanford. He’s going to be speaking in Sarasota in the middle of October, and I’m going to go down there and join him. I’ll have a little more information on that. I’m going to give a little spiel on the stock market while he’s there, but that kid, I’m telling you, he is a sharp cat. He’s been a professor at Harvard as an assistant to Clay Christensen, the guru, the disruption guru. And he passed away, and now my nephew, Rory McDonald, pretty much is the guy in that space. And he’s going to be talking about how to turn your company into a disruptor. In Sarasota, middle of October at the new renovated hotel there on Longboat Key. I can’t think of the name of it right offhand, but it’s a sweet place. I’ll be there for that. Applovin hitting a new all-time high today. What an idea that was. They developed a mobile app ecosystem helping app developers to market, monetize, analyze, and publish their apps. And I looked into it for my own app. Maybe I should look into it again. But they want you to run advertisements on your app. I don’t want to do that. I want to keep it clean. And the other one being added is one of our current biggest holdings, Robinhood. which is basically the one when you see a college kid or a high school kid staring into his phone trading stocks. He’s probably doing it on Robinhood. Robinhood is kind of the one of choice amongst the younger generation. That’s now a $102 billion company. I have never seen stocks go to $100 billion, which is considered a large cap stock, faster than… than Robinhood and Applovin. And I’ve never seen a company go to $4 trillion faster. We’ve never even had a $4 trillion before. As NVIDIA, which is now a member of the Dow, those are three pretty incredible stocks. We made a ton of money in all three of them. What will be the next Robinhood? What will be the next NVIDIA? What will be the next AppLovin’? Well, there’s certainly a lot of candidates out there right now, and hopefully we own a few of them down in our Ultra Growth and Emerging Growth portfolios. We’ll be right back. And welcome back here to the second quarter of today’s Best Stocks Now show. According to the beststocksnowapp.com, my creation, over the last three years, Applovin has delivered an average return to investors of 173% per year. It doesn’t have a five-year track record. It doesn’t have a 10-year track record. So In just over three years, it’s reached the S&P 500. 173% per year over the last three years is the average. You add that up times three. Over the last 12 months, it’s up 457%. I have not owned it during the last 12 months. Probably sold it a little too soon, but, you know, never looked a gift horse in the mouth. We made over 700% on it. So, anyways, that’s App Lovin’. And then the other one, Robin Hood. I remember I was very negative on Robin Hood when they first came public because I figured, you know… They’re selling fractional shares and no money trades and no commission. I just didn’t know how they were going to make a lot of money. But I think cryptocurrency has helped them a lot. And they kind of became the brand of choice. I think their brand helped a lot. It’s good to establish a brand. How you do it is not that easy, but you can do it. And it’s got about the same returns as Applovin. Over the last three years, 120% per year stock price appreciation. Over the last 12 months, the stock’s up 429%. We do own Robinhood. I finally had to cut a little bit because it became a 13% position. That’s a good problem. I thought about cutting it again last week and I decided not to. I’m glad I didn’t because it’s up 11% today. 13.7 now. Holy cow. On this news of it being added to the S&P 500. So it’s always good. And now who are the two losers getting kicked out? Enphase. Guess what Enphase does? Solar. Remember when Enphase was one of the hottest tickets out there because they’re kind of the tech company in the solar industry. I think they’re out of Israel. And Caesars Entertainment, or no, MKTX, Market Access is getting kicked out. So anyways, they rebalanced the S&P 500 quarterly. Okay, which company will be added next to the S&P 500? Well, you know, you’ve got to find stocks with that kind of performance, but there’s talk of MicroStrategy. which their strategy is buying Bitcoin, SoFi, which has the naming on the Rams Stadium in Inglewood, and then Astera Labs. I could see that, a lab. That’s one that we own in our ultra-growth and our emerging growth portfolio. Well, Russia continues to be a thorn in the side of most of the world, unless you’re a communist country like Red China, Chinese Communist Party. They buddy up to Russia, and they’re going to build a massive pipeline buying Russian oil. And, of course, that will give a nice little income stream once they get that pipeline done for Putin to finance his nefarious ways. Now, Trump has not cracked the whip yet on Russia. And why not? What is he waiting for? He’s waiting for Europe to go along with him. Because he feels that it’s more Europe’s problem than it is our problem. I mean, we’re there to help, obviously, as a member of NATO.
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Well, they’re still the ones getting natural gas, right, from Russia. Am I wrong on that?
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Yes. No. And now Europe is maybe going to come along in their way. So, I mean, look, Europe’s in love with Zelenskyy. If you’re in love with Zelensky, put your money where your mouth is and slap him with the big sanctions along with the United States. So it seems like it’s the U.S. and Europe on one side. And of course, China now buddying up to Russia and China is going to start going to start buying Russian bonds. All right. So you definitely have a massive split. And of course, it is a split of the communist countries and the non-communist countries. So there’s a couple of big moves there, and there seems to be no slowdown in the Ukraine war. So it’s Georgia. We talked about Georgia. Big immigration raid hits Hyundai, their battery factory in Georgia, and that’s going to cause a major upset there. Korean giants reel as U.S. immigration raid hits Hyundai. Now, when I first read that, I thought, you know, have they trained the Hispanic workers that quickly how to build cars? No, these are South Korean workers. How did they get here? I mean, well, it probably wasn’t that hard. They just walked across the border during the Biden administration. So anyway, Seoul, Korea, which is a friend of ours, they’re securing the release of the Korean workers detained in U.S. raid. That’s kind of a weird story. Now, just when you thought earnings season was over, and I did a very important update on earnings season in the newsletter on Saturday. If you didn’t get it and you’ve never had a four-week trial, you can go to gunnersoncapital.com. We also have a new article out that was published this morning on Seeking Alpha. And I thought to myself, you know, Bill, you don’t have enough to do. I’m going to write another article this week.
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You’re busy this weekend.
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But I did take a lot of excerpts out of the newsletter. I said, you know what, this is good information that should also be available to the general public. And I sent that out this morning, and it was published. And you can go to Seeking Alpha. You can follow us there. I’m going to try to put out one article a week. That’s my New Year’s resolution, even though this is September. Earnings week ahead, Adobe’s going to report. Okay, they’re a Bay Area company. Oracle is a big Bay Area company going to report. Oracle really revolutionized the database software. GameStop, I always look forward to that one. Kroger, Chewy, the dog biscuit one, and FuelCell. That’s the one that Elon used to call FoolCell. He’s not a believer in hydrogen fuel cells. But those are still some pretty big reports that are coming out, and I think tomorrow will be the big day with Oracle and Adobe, okay? No, Adobe’s on Thursday, so Tuesday and Thursday. Okay, now. With the deregulatory push, deregulating and getting rid of the EV mandate, that has opened up billions of dollars. You know, the rollback of the EV incentives, which, of course, Musk is not happy about, and rolling back the emission rules is freeing up billions of dollars for a place we were just in. Detroit’s car makers, now they can reinvest in gasoline-powered vehicles, which they’re doing and cutting back considerably on the EV investments. We’ll be right back. 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. Thank you.
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And welcome back here to the second half of today’s Best Stocks Now show.
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And quite a bit of other news. You know, more on this EV story. It’s definitely hurting Tesla big time. with the huge drop in their China sales. Tesla’s got a couple of things going on. The competition. He didn’t have any competition for a long, long time. And now there’s lots of competition out there, and Europe especially, and Tesla sales in China. Stellantis had a goal of 100% EVs. They were not going to manufacture any more gas engines in Europe by 2030. That was their EU target. They’re dropping that goal to produce only electric cars by 2030 as the car maker struggles with weak adoption of EVs, intense competition from cheaper China imports into europe now see europe has let the chinese evs in we’re i don’t ever see the day that we let the chinese evs in unless somebody buddies up with china in the future and says hey come on in and difficulty with the company’s infrastructure to support the ambitious production product. So that’s a major change there. In fact, we’ve seen a huge shift away from the EVs, even though China is ramping up back to the gas engines. Open AI, I got a good AI story for you here today from Boots on the Ground. Open AI plans AI-powered jobs platform. They’re going to take on LinkedIn. Open AI is going to take on LinkedIn, which is a Google product, and form using AI to match jobs. Job candidates with jobs, okay? So anyways, I met a guy yesterday in my new little job I have in the church with the kind of college-age kids and up to 30 years old, 18 to 30. He’s an Amazon driver. Okay, and I asked him about the logistics of it all. I said, how is it that they… Man, they deliver to all those homes. And efficiently, too. Yes, he picks up his load every day up in the Somerville area. He’s kind of one of these ancillary Amazon drivers that drives their own cars. He says it’s a terrible job, number one. Some days they say, we don’t got any work for you, go home. So he’s actually looking for another job. But I asked him… Do they plan your route using AI? He says, no, it doesn’t work. What? And I’m thinking, if AI can’t deliver a package to my door, it’s going to deliver me in a way mode to my hotel, or it’s going to do this and do that and do all of this and pick stocks. And I told them what I did for a living. I said, you know, they think AI can pick stocks. He says, you know, AI can’t even figure out the route to deliver packages, so I kind of doubt that. That’s my AI story. Now take it for what it’s worth on AI. Here’s your big news of the day. Howard Stern’s going to return to Sirius. The guy is 71 years old.
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Barry, what’s the last time you ever listened to Howard Stern? It’s been a long time, but I thought it was funny just because I’ve been seeing kind of just off and on speculation as he… Is he leaving? Is he retiring? Is he staying on? And then, of course, I believe they started the show today with almost like a handoff to a different host. And then they turned around and it was a joke. Yeah. I mean, apparently it’s probably making more news than it is making money for Sirius.
SPEAKER 03 :
Yeah. You know, I never took Sirius too seriously. And neither have investors. But, you know, I’ll tell you who’s the big investor and serious is Warren Buffett, which is a small company, but he thinks it’s a good value. I’ll tell you another stock that’s really perking up here. Maybe I’m going to add that to my… I’ve got about six or seven ideas for my next Seeking Alpha article. Alibaba. Man, I’ll tell you what, all of a sudden… They are leading a $140 million funding round in the Shenzhen-based robotics startup, X-Square Robot. So you think of Tesla as a play on their humanoid robots. What about Alibaba? Compare the P.E. ratios. Alibaba has a P.E. ratio of 15. And for that reason, we own it in the relative value portfolio. And I know, I said I’d never buy another Chinese stock. And the thing is, never say never. Because sometimes valuation and things change. And Alibaba seems to have their mojo back. Tesla is 176 times earnings. You can get exposure to that same humanoid robot. And the way China’s going with their EVs, I’ve got to believe they’re going to go full speed ahead with the robots. And I think this almost seems like a slap in Musk’s face. You know what they’re naming it? X square robot. X square. They’re using that letter X. Isn’t Elon’s son little X? Something like that.
SPEAKER 04 :
So anyways, this almost seems like a slap in the face. One of his kids. Yeah, one of them.
SPEAKER 03 :
Yeah. Okay. Now I’ll tell you another stock that’s perking up here. And it’s a pretty decent value. Who’s the biggest semiconductor equipment maker in the world? I don’t know if they’re the biggest, but they definitely make the most important. I guess it’d be ASML, right? Yes. Okay. And, you know, when you invest in these tech giants… it’s a little bit like investing in private equity too and venture capital because these companies are making well take take alibaba they’re investing a hundred and forty million dollars into a company that has not even gone public yet but it obviously must have a lot of hoopla promise around it x square robot and obviously when you own tesla you own the the humanoid portion of that uh of that i think i think the humanoid portion is in tesla i know spacex isn’t in the and the brain one is not in it but uh asml is investing in a very highly touted company called mistral ai which is out of france it’s a french artificial intelligence company so when you buy asml which i showed the chart of that over the weekend when i did the technical analysis of the different important asset classes and sectors when i got to the semiconductor sector I said, you know, I’m going to show a chart this week of two companies that had a very good week in the semiconductor sector. One was Broadcom, which is having another good day. It’s hitting a new all-time high today. And the other one, which is a very important stock in that sector, is ASML. the Dutch company, and it is really perking up once again. They make the equipment that NVIDIA must have in order to create those NVIDIA chips. So anyways, ASML investing in the highly touted French artificial intelligence company Mistral. Okay, one other one here. UnitedHealthcare is reaffirming their outlook. And I think you could say, Barry, that maybe a bottom has been put in in that stock because it was a free fall, you know, from 600 down to under 300. It lost 50% of its value today. It began with the assassination of their co-CEO which then led to investigations into the allegations against the company of turning down a lot of people on their claims which then led to several missed earnings reports which then led to the resignation of their CEO which then led to a Department of Justice inquiry into the company And the current P.E. ratio on UnitedHealthcare is 12. But it is an important stock because it is a member of the, at least for now, Dow Jones Industrial Average. If you were going to replace it in the Dow, you know, I would think, I don’t know, a health care stock, I would think Lilly’s got a lot more going on than Dow. than UnitedHealthcare does. But it’s not an insurer, so I don’t know. We’ll see. But anyways, maybe you bought it. Now we’re starting to turn the corner on UnitedHealthcare, and who came into it in a big way? None other than the Oracle of Omaha, Nebraska. The Oracle of Omaha, Nebraska, Warren Buffett, with the big purchase in it. Okay, now when we come back, I kind of get into the exciting smaller companies in the last segment of the show that are showing promise. We’ve got an update on the solid-state batteries replacing the current lithium batteries. This is Bill.
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You’ve got to go where you want to go. Do what you want to do and live forever.
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And welcome back here to the final segment of today’s Best Stocks Now show. And we do have, let’s see if we still got those gains going on in the market. It was a mixed bag and it’s still it. No, now the Dow’s gone positive. How about that? We’ve got all green on the screen with the NASDAQ up 178. The big winners in the NASDAQ today are Robinhood and Applovin, which are going into the S&P 500. And they’ll remain in the NASDAQ, obviously. The Dow is up 23 now. It’s gone positive. And the S&P 500 is up 21 right now to 6,502. I think it’s fair to say that the market is excited. It’s finally going to get its rate cut next week. There’s not really any news today as far as the economy goes. But we’re going to get the CPI up. report and we’re going to get the ppi report and it’s like mary said if you get some really benign numbers like under two let’s say maybe you get a 50 basis point rate cut next week if you get some really hot numbers uh well you know it’d have to be pretty hot i think for them to not do a rate cut
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And to do 50, I mean, it’s basically Powell saying, you know, I was wrong. Yeah, he was. Doing a 50 basis point rate cut. So it’ll be interesting to see how quick, obviously, the news conference will be just as important, if not more important, than the actual conference. you know, whatever the rate cut is. So it’ll be interesting to see what they say on next Wednesday. So good news is we’ll be hearing it real time while we’re meeting with folks.
SPEAKER 03 :
Yeah, that’ll be a fun day. Okay, now an update on… This story has been around for a long time. I remember when Panasonic, maybe 10 years ago, said, we’re not going the lithium battery route. We’re going to go the solid state route. And if they can ever do that and accomplish it, you’d have a lot higher range of… uh… on uh… evie’s today quantum scape is making quite a job now i keep that on my watch list u s It’s not really a quantum stock. It’s been all over the place for years, right? Yes. It was 132 in 2020. It was 4 in 2023. From 132 down to 4. And it’s been mired at 4 ever since. And then about late July, one of the automakers said, you know, we’re really going to go solid state. And Quantum Skate obviously is the player. That stock tripled within about a month. During the month of July, it went from 4 to 15. And then it came clear back to 8. A lot of profit taking. And remember here, their sales are zero. They have nothing in the way of sales. Even though they’re a $5.4 billion company out of San Jose. We’ll be next Tuesday, the heart of it all. QuantumScape, maybe you can go visit them while we’re there. QuantumScape is trading at 23% today to $9.62. They’re showing off their new solid-state battery in a Ducati motorcycle. Which is a pretty nice-looking little motorcycle. You know, I don’t know how far. I would think the range for a motorcycle would be quite a bit. Maybe you can go clear across Europe in it. I don’t know. But it’s going to be the world’s first live demonstration of QuantumScape’s solid-state… battery powering an electric vehicle even though it’s a motorcycle so that’s got the stock all excited it’s an anode free solid state battery it’s moving from the laboratory to a real world vehicle for the first time ever so QS is the symbol Keep your eye on that one. Okay, then over in the cryptocurrency world, there’s a lot of buzz around a company called Bitmine Immersion Technologies, BMNR, because Cathie Woods just took a huge position in it. And the guy from Fundstrat, Lee, Tom Lee is a backer and a believer in the stock. This thing went from four to 161 in about four days. And now it’s back to 44. That’s a blockchain technology company that gauges in the production of Bitcoins. But they have another kind of a niche, and it’s in that whole stablecoin industry. So BitMine Immersion, BMNR, all of a sudden it’s up 4.3% today. It’s at 50% now, up from 3 or 4 just a few months ago. But the story is it’s making an investment in a company called Octo, 8Co, O-C-T-O, O-C-T-O. Here’s your story of the day. Now, we don’t own it. We’re not recommending it. It’s news. OCTO is up 2,700% today. It opened the day at $1.25, and it’s $40 right now. It’s been as high as 60, 60 ATCO OCTO. Keep an eye on that one. That’s out of Easton, Pennsylvania, where the biggest buzz in the market today is the investment that BitMine Immersion is making in ATCO. Well, we’re out of time. There was a lot to cover here today. We’re open for business. There’s still space. We’ve got a bigger room for the workshop a week from tomorrow in Santa Clara at the Marriott at 7 p.m. I’m going to go over a lot of things, whatever I think is the most salient at that point in time on that Tuesday evening together. And then the appointments, meeting with folks Tuesday and Wednesday, which are booked, but there’s still a few openings on Thursday. We’ve moved all of our flights to Friday so that we could stay an extra day. and meet with anybody that wants to meet with this while we’re there uh… in a one-hour private meeting there uh… at that marriott in santa clara call edie eight five five six eleven best before they’re all gone eight five five six eleven to get a four-week trial to the newsletter and the app and the live trade alerts 855-611-BEST, 855-611-BEST, or GundersenCapital.com. That’s the easiest way to do it. Have a great day, everybody.
SPEAKER 02 :
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.