Join Bill Gunderson and Barry Kite as they dissect the afterglow of NVIDIA’s latest earnings announcement and its wider implications for the tech sector. Beyond NVIDIA’s positive reports, the duo sheds light on the persistent valuation peaks that define today’s market atmosphere. Will the euphoria endure, or is this a mere temporary blip before reality sets back in? They delve into the ever-present threat issued by competitive AI plays and the ever-shifting grounds of the stock market, notably within the pharmaceutical and crypto sectors. Listeners are invited to navigate the complexities of the stock landscape, with the hosts offering
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 Gunderson Capital Management. Here is professional money manager Bill Gunderson.
SPEAKER 05 :
And welcome to the Thursday. It is this Thursday, November 20, Sugar High. caffeinated version of the best stocks now show with professional money manager bill gunnarsson president of gunnarsson capital management and here we are uh after uh the day after nvidia’s much anticipated uh earnings report and uh it seemed to be better than expected barry i mean it not only uh uh you know the past uh 90 days but the forward guidance and as a result right now We have the Dow up. Let me get to my charts here. The Dow is up 592 points right now, which is a gain. 661, call it, 1.4%. The NASDAQ is up 2.1% with a gain of 482%. The S&P is up 1.8%. We have the bond market pretty quiet, 4.12% on the Treasury, the 10-year. Actually, 4.11% now. Gold is down a little bit. Actually, it just turned positive. It’s at 4,098%. Crude oil is up a little bit. And Bitcoin, last time I looked, it was still down. Yes, it’s down 1,000. I think there’s still a risk-off mood in the market myself. We’ll talk about that today. The Bitcoin is at 90,739. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And I’m here with Barry Kite, our chartered financial analyst and certified financial planner. You know, Barry, the image that I have in my head right now, is Atlas holding up the entire world. Only Atlas is a guy in a leather jacket in San Jose called Jensen Wang that seems to be holding up the whole market on his shoulders yesterday. Why do I say that? You know, I’ve just watched, as a guy who looks at 800 to 1,000 charts a day, I see a lot of charts that are not looking healthy at all, breaking down, right? Well, they’re getting a shot in the arm today. They’re getting a sugar high. But can one company, NVIDIA, hold up the entire tech sector, the NASDAQ, the Dow, the S&P 500, with their better-than-expected report yesterday after the close? And I also look at the reaction in a very risk-on or risk-off indicator for me, which is Bitcoin. And Bitcoin’s still down $1,000 here today, which indicates to me that this sugar high is going to be short-lived. I’m not saying that we’re in a bear market or we’re headed for a bear market. I just think that we’ve probably seen the top. Which isn’t a very bold statement. We only have six weeks left in the year, for heaven’s sakes. But I think we saw that top back there, you know, when the Fed decided probably not going to be another rate cut in December. And we reached that forward P.E. of 23. And I don’t think yesterday changes my view of that. I think we’re going to have a good day. Maybe you’ll see some wearing off. We’re having a decent day in the market today. We’ve got several holdings that are up 2% to 3% today, including NVIDIA, Google, Taiwan Semiconductor, Constellation Energy, Marvell, Snowflake. The AI play. So the AI play is back on today, but I don’t think that it changes the, it doesn’t change the valuation peak. And the risk appetite. No, and the risk appetite just doesn’t seem to be there. you’re probably seeing some short covering today uh… but uh… i don’t expect this to be something that all of a sudden juices this market and uh… propels it onto new highs before the end of the year i just don’t see that i don’t think it changes my opinion of the market at all and i’m happy for Nvidia we still have a huge investment in it it’s one of the greatest stocks of all time if not the greatest stock that i’ve seen During my career in the industry, I believe it is. Okay, so there’s a lot of news. There are other companies reporting today besides NVIDIA. There is other news. But, you know, I just have to go back to yesterday, and I saw so many charts that were breaking down badly. Anything crypto-related still looks just horrible. The coin bases, the strategy. Have you looked at strategies? Micro-strategy. Oh, my gosh. That’s just the road to hell is what I call that chart.
SPEAKER 06 :
Well, there’s just been a lot of carnage there and fast, right? I mean, the big issue there was leverage. And so you’ve got a lot of people, whether it could be a bunch of smaller investors who have kind of had leverage plays via ETFs and other ways. that you can get that leverage exposure to Bitcoin nowadays. Obviously, we were sitting at $126,000 probably less than a month ago, $126,000 sitting at $90,000 at the moment. Some of that wealth is just gone. There’s no buying action. It’s different. in the equity markets. The equity markets haven’t fell as far. It’s obviously stickier money. There’s money that’s been in there for a very long time versus Bitcoin. It’ll be just interesting to see it. Like you said, I just use it as a measure of risk appetite currently. It It’s almost hard to envision until you get some kind of bottom in that risk appetite in Bitcoin, it’s hard to see what you said, that leg up higher than our all-time highs in the market.
SPEAKER 05 :
It would be interesting to look at the second-tier AI stocks today and see how they’re holding up. And, you know, I’m talking about some of those ones down the chain a little bit. Yes, the big, and I still like that the nuclear stocks have been doing really well here recently. Constellation and Vistra and the other one, GE Vernova, have looked really, really good. But I think as we get down the line underneath into that second tier of AI, I don’t know that we’re going to see… what we’re seeing at the top of the AI chain here today. We’re not going to get an October jobs report, and a lot of people think that that’s a big negative as far as the Fed goes, because without that, it’s going… Look, they’re weighing two things right now, jobs on the one hand and inflation on the other hand. And without more jobs evidence of deterioration, we certainly haven’t seen that. in the initial jobless claims report, and I’m hearing that private jobs, didn’t that come out today at $118,000?
SPEAKER 06 :
Well, yeah, it’s a weird dynamic. We got the September non-farm payrolls. So remember, we got the ADP September numbers. Today we got the September non-farm payrolls.
SPEAKER 05 :
But no October numbers.
SPEAKER 06 :
Right, yeah, so no October numbers, and I don’t know if we’ll get those. I don’t know how that catch-up will play, but we’ve got – You know, U.S. payrolls increased 119K. Consensus was 50K. I’m not sure how you come up with a consensus, but there was one. The tricky thing is unemployment rate ticked up to 4.4%. So you kind of had jobs come in better than expected, added more. But the unemployment rose, right, more kind of than expected from the 4.3%. So it’s kind of that, you know, quasi – If it doesn’t mean anything, the only thing is it’s obviously you could make it a hot or a cold job.
SPEAKER 05 :
Yeah.
SPEAKER 06 :
Depending on your angle.
SPEAKER 05 :
But it’s not bad enough, I don’t think, for the Fed to give us a quarter point cut in December for sure.
SPEAKER 06 :
And here’s the things in the bond market. Yesterday we were at a 70% chance of a cut in December. Now, literally sitting right this second, we’re at 30% yesterday. Today, we’re at 43%. So we actually moved up for a chance. I think it’s at an unemployment rate ticking up.
SPEAKER 05 :
I don’t see it. I think he’s got sour grapes towards Trump. He knows he’s on the way out, and there’s no way the Grinch is going to steal Christmas. UBS lifts gold upside target to $4,900, maintains bullish view and long position. You know, UBS knows a thing or two about gold being headquartered in Switzerland.
SPEAKER 06 :
Around the world, yeah.
SPEAKER 05 :
And that seems to have been the most dependable. The AI trade has been good to us this year, no question about that. But gold has just been steady. You take out that recent sell-off, it hit 4,400, and then it dipped under 4,000 for a while, but now it’s climbing its way back up. And that seems to be the one trade that is more reliable than any other out there right now. We continue to see big, soggy pharmaceuticals going to other companies and buying them to put something in their pipeline. Pfizer would be an excellent example. They went out and bought Metzira to try to get in on the obesity drug boom. And Abbott Labs, very questionable move, I think. They’re spending $21 billion to acquire Exact Sciences, which, of course, has the alternative way of testing for colon cancer, which is not quite as obtrusive as the other one. But they’re paying a big price for that company. And Abbott has been a very slow-growth company in recent years. We’ll be right back.
SPEAKER 03 :
And welcome back here to the second quarter of today’s Best Stocks Now show.
SPEAKER 05 :
Goldman Sachs initiates coverage. Of MP Materials. Boy, there are a lot of stories on MP this week with the billionaire, multi-billionaire in Australia taking a big stake. The Department of Defense or Energy, Department of Energy, I believe, giving them a big loan. And, of course, they have a stake. The government does. Apple has a stake. Goldman Sachs initiates coverage with a buy rating and a $77 target price. MP is currently at 61. MP does have earnings. They’re going to make 79 cents per share next year. And they’re pulling right now $250 million worth of sales out of that mine out there on the California-Nevada border at Mountain Pass. And I continue to say that it’s probably the best by far rare earth opportunity that we have here in America. There’s a lot of other wannabes, but this one seems to at least, there’s got to be other ones. We’ve just got to find them, Barry, and get them producing and get some refineries back online, which is happening. in a few states across America. And MP definitely has been in the news a lot. That’s the one that we own, along with another one that’s not doing so good right now, but we’re hoping for it in our emerging growth portfolio. MP we own in our emerging growth and in our ultra-growth portfolio. portfolio so it’s our biggest rare earth position one of two positions that we have in that sector right now we’ve also got let’s see here of course a lot of other companies reporting earnings today it’s funny how you know just when you thought earnings season was over we have we have all of these companies pretty important ones reporting earnings today let’s see ibm cisco plan to design connected network of large-scale quantum computers i’ve been watching the quantum stocks i look at several of them every day and they’ve been pretty much crumbling they continue to crumble they’re out in those further tributaries that we talked about that are very speculative And when the risk appetite comes down in the market, that’s the first place that starts to drain as the tide goes out. But, you know, I’ve watched IBM and I’ve watched Cisco, which are two companies that kind of need to do what GE did. You know, a massive makeover and rebuild, whether they separate into a couple of companies or whatever. They just don’t have any growth these days. But maybe Quantum will give them some new life there, Barry. I would think, too, that it would be hard for a Rigetti or a D-Wave Quantum to compete with IBM and Cisco. But, I mean, those are some formidable players. I mean, Cisco has needed to get away and diversify away from just telecom and maybe building a network of large-scale. IBM knows a thing or two about large-scale computers. But here’s the rub. It’s five years out, which pretty much goes in line with what Jensen Wang has been saying. It’s not going to happen tomorrow. Anyways, we’ll keep our eye on those two stocks to see if they can come up with something there. And you know, I’m seeing these crypto stocks continue to diversify. Some of the crypto Bitcoin miners are now, you know, juicing some of the data centers with energy, which is kind of a weird thing. But Coinbase is launching a calci-powered prediction market. So you can gamble on a prediction marketplace with your crypto account, right? It just seems kind of weird. And Kalshi has had a major impact on the sports betting market. Have you ever looked at Kalshi? You look at Kalshi, don’t you, Barry, to look at the odds of a rate cut and whatnot?
SPEAKER 06 :
In terms of IBKR, they’ve pushed it. Obviously, you see commercials on it all the time in terms of prediction markets. I use them, and I still use the futures market for some of those contracts in terms of CME, in terms of the FedWatch percentages. Right. yeah i mean it’s a bigger and bigger bigger and bigger market i keep seeing this commercial uh in the background and i’m kind of thinking for ibkr and i’m like you know what i’m gonna try to open a little ibkr account and just see what the prediction markets are all about put a few bucks on no fed uh rate cut in december and they say bill was right again
SPEAKER 05 :
But these crypto-related stocks are just getting crushed. Coinbase, Circle, what’s the other one? Bullish.
SPEAKER 06 :
MicroStrategy.
SPEAKER 05 :
MicroStrategy. There’s another one too, BMNR. They’re just getting crushed. And guess who keeps loading up? The lower they go, Cathie Wood’s ARK Investment loads up on Bullish. Bitmine, that was one I was trying to think of, and Circle. Those would be the three on my list of 1,000 stocks. They would be number 998, 999, and 1,000 that I’d be looking at in this particular market that we have right now. You know, when we had a speculative wave just sweeping through the market that seemed unstoppable. No, every speculative wave eventually get its wings clipped. And I think that was one of the reasons why, you know, Jerome Powell, he saw that speculative wave in the market, which he saw in 2021, don’t forget, and came along with four rate hikes of 75 basis points because he knew things were getting out of hand and were going to only exacerbate the inflation problem. And, of course, he saw the same thing that we see. When we see these speculative sectors just flying like there’s no tomorrow, they can’t buy them fast enough, that spells trouble. And especially when the ratio of the general market gets up to 23 forward P.E. ratio, the Fed takes note of that because that is inflationary in nature, very inflationary. It puts more money into the system. And I think that was a big reason for him also stepping in and saying, probably not going to get a rate cut. So now you can gamble at Coinbase. Okay, was that… Was that the original intention? I thought it was a storage, a bank where you could store and make money off your digital currency. But now they’re going to open it up to betting on various events, sports, elections. I mean, all kinds of things. It’s what we call a new vertical. How speculative can you get? Right? Is what I call it. It’s horrible. Okay, when we come back, I’ve got a lot to talk about. We haven’t even got to NVIDIA yet. And, of course, Walmart also reporting earnings today, which is also a very important bellwether. 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. Now, back to the second half of the show.
SPEAKER 04 :
Because there’s something in the air
SPEAKER 05 :
And welcome back here to the second half of today’s Best Stocks Now show. I was just looking at these. These stocks just look horrible. The ARK Innovation ETF acquired 322,917 shares of Bullish, B-L-S-H. I could add a couple other letters to that. Move that S and H around a little bit. That’s a good one. Bitmine, she bought 181,774 shares of Bitmine. You know what? She believes in her strategy. She’s convicted. And she has total conviction. I was just looking at her ARC fund. I remember when it had $45 billion in it. Now it has $8 billion in it. Where did the other $37 billion go? Up in smoke for the most part. Okay, she bought 150,000 shares of Circle Internet Group, CRCL. Oh, God, this stuff just makes me sick looking at this stuff. On Wednesday, Circle was down 9%, Bitmine was down 9.5%, while Bolus dropped despite reporting every one of these stocks are hitting new lows. Which, you know, look, I’ve had a lot of people say, you know, you seem to buy stocks when they’re breaking out. Well, you know, that shows there’s something good going on. That pot is starting to bubble and boil. And something hitting new lows, you can say, well, we’re going to scoop up more at this price. I’ve never found that to be a good strategy in my 26 years in the industry. You want to add to your good positions, not your horrible positions. That’s just me.
SPEAKER 06 :
I didn’t do the math on this, but I think she took her initial position or at least bought some 2.5 million shares of BLSH, that’s bullish, on or around August 14th. August 14th. What was the stock around August 14th? I was looking at the chart, and it can’t be great. No. But I’ll get there.
SPEAKER 05 :
I got it. BLSH in August was, well, it got as high as $75 a share. After IPO, right, I think? It IPO-ed at $37, and now it’s back to, it went up to $75. Now it’s back, it got to $120. On the day it went public, it went from $37 to $120. Then down to 47. Then back to 75. And now it’s at 38. It hit a new low, all-time low yesterday. Bought another 160,000 shares on September 17th. Okay, September 17th was when it was at 75. So now she’s adding more at 35. It lowers her cost basis is about the only thing you can say about that. And it’s getting a little sugar high boost from all the AI activity. But look at Bitcoin itself. I mean, it’s down even on a sugar high day in the market. Okay, we’re going to go to NVIDIA now. and we’re going to look at the best stocks now app which still has very favorable numbers on nvidia it doesn’t surprise me i say in fact i’m going to give you our target price on nvidia here uh… it’s hitting today it’s up five percent you know that’s not really that big of a deal really i mean it’s good but I don’t know if it’s going to last. It could fade here. We have a valuation on NVDA of $379 five years from now. which is double from where it’s at now. Is it going to get to $10 trillion? Well, based on what we know now, that’s the consensus earnings estimates out there on the street. The consensus estimates growth estimates out there on the street, and applying a pretty decent multiple to that. I’m using 18% growth. I don’t know what the multiple is. I’d have to look it up. It’s buried in the equation there. But it’s the same equation I use on every other stock, and we still think it has upside potential from here. But it’s gotten a little bit ahead of itself. And, okay, over the next five years, I would just say that the biggest risk in that five-year period of time is a competitor coming along. And I think the biggest threat comes from China, who’s basically saying no.
SPEAKER 06 :
Either copying or trying to innovate from the chip that they have already, essentially. You know they’re trying to at least innovate.
SPEAKER 05 :
re-engineering I think the probability of them coming up with a chip that is at least almost as powerful I think it’s 100% that they’re going to come up with something during the next 5 years I would think even during the next 1 or 2 years that’s the biggest risk to NVIDIA because right now it’s like Tesla Tesla had a massive lead on everybody else in electric vehicles Now China and Apple had a massive lead in iPhones. And who’s come along? China with the Huawei phones has hit Apple’s market share big time in the iPhone market.
SPEAKER 06 :
And obviously Samsung, I mean, takes, you know, basically, you know.
SPEAKER 05 :
Yeah, and along came Samsung with the Android version. Okay, and the same thing is happening here with electric vehicles. Now you’ve got China. Where they got the technology, nobody knows. How much of it was counterfeited? How much of it was reverse engineered? But Tesla’s market share has dropped dramatically in China, the biggest market in the world, by the way, and has dropped dramatically in Europe because of Chinese competition. There’s nobody that China would rather take a chunk out of his hide as Jensen Wang, who’s from Taiwan, and, of course, Lisa Su, his cousin at AMD. I just think it’s almost inevitable. That Alibaba or Huawei, those are probably the two biggest ones that are working day and night to come up with the chip. And they pretty much don’t want NVIDIA’s chip. They said, we don’t need it. We’re going to work around it and come up with our own chip. And, you know, Jensen Wang is all for continuing to, but his market share in China has dropped to zero, which I think is also a big negative.
SPEAKER 06 :
Yeah, well, in their model, I think it’s, you know, in terms of NVIDIA, in terms of an encouraging sign, one obviously is that, you know, in their estimates, they’re including a zero for sales to China. And, you know, the other side of it, too, is, you know, this most recent announcement via Saudi Arabia purchasing, you know, big purchaser. And some chips. I mean, the next layer, we’ve heard about all these big hyperscalers, Microsoft, Google, Meta, making all these big purchases. That next layer is really sovereign nations building out their own. You know, AI capabilities. And that’s what Saudi Arabia is doing.
SPEAKER 05 :
And what do competitors do? The price goes down. The margins go down. There’s only so much market out there. And when somebody starts taking a piece of that market, they’re going to come in at a lower price. And then Jensen Wang is going to have to lower his price. And down the spiral goes. uh… invidious all-time high was two hundred and twelve it’s no longer a five trillion dollar companies drop to four point seven trillion only four point seven trillion uh… it’s still a and you know even this this sugar high is kind of being packed away at right now it’s only up uh… three point eight percent right now as the battle goes on it’s getting harder and harder to move this aircraft carrier that five trillion dollars And competition out there, there’s no question about competition out there. It just isn’t the stock that it once was, you know, when it was produced. In terms of hyperbolic growth.
SPEAKER 06 :
Yeah, hyperbolic growth, you just can’t do it. But the interesting, he didn’t note, he was talking about their growth for the, you know, for the year essentially was in terms of, you know, enterprise value or revenue. And it was, you know, I think 11, you know, I don’t know, was it? Billions and billions of dollars. And he said, we essentially grew an extra company out of the company this year. Yeah.
SPEAKER 05 :
Wow. Well, and you know, the mood on Wall Street this morning was predictable. Oh, that’s going to lift the entire AI sector and reignite it. And it still has the same valuation problem that it had yesterday before they reported. It still has the kind of negative risk-off sentiment that it’s been fighting here. I think personally that today’s a sugar high. It’s already, in my book, starting to wear off. I haven’t even looked at the underneath stocks yet. Give me a good example of underneath the Reisten Networks. But there’s a couple of, okay, a good underneath the stock. What’s the one that went public that we made so much money in and then it just took? CoreWeave. Yeah, CoreWeave.
SPEAKER 06 :
And they’re getting a bit of a bump today.
SPEAKER 05 :
Yeah, they’re all going to get a little bump today, but I think it’s going to be very short. I’m not going back in with guns blazing into the AI sector. It still has to settle. We’ll be right back.
SPEAKER 04 :
You got to go where you want to go and do what you want to do.
SPEAKER 05 :
And welcome back here to the final segment of today’s Best Stocks Now show. And all the usual analysts are gushing over this report. Dan Ives at Wedbush says, this is the earnings report heard around the world. Well, you know what? I think the one a couple of years ago was when it was $200. percent better than the previous or 300 percent now we’re we’re still at good numbers i mean 60 percent growth in sales year over year 60 percent growth in earnings year over year But I don’t think that this changes the valuation issue whatsoever. The demand, I’ve always said we don’t have an earnings problem. We don’t have a demand problem. We don’t have a problem in the economy. The valuation is the issue. And the earnings report from NVIDIA last night did not change the valuation issue one iota. And I’m seeing a lot of these stocks, which I kind of expected, with this big boost this morning in a lot of individual stocks. Some of them are hanging on to their gains. The one that’s the most impressive here to me is Broadcom, AVGO, and the nuclear stocks. But even NVIDIA itself now is only up 3.5% as they’re selling into this bounce that you’re seeing in the market today. And I would just say that if you still own some of the second-tier AI stocks, Astera Labs, Arista Networks, Palantir even. I mean, Palantir has a little anemic move here today. It still looks like a negative chart to me. I think this provides an opportunity for those that are overweighted in this sector and have been hit hard by it over the last month or so, six weeks, eight weeks. The charts are getting a bounce today, but they still look very, very weak to me, and I don’t think that the correction in this area is over yet. I think the valuations still have to come down. Okay, and I’m seeing it at NVIDIA itself. Now it’s up just 3.2%. It was up 6% at one point in time here. And, you know, a lot of stocks still look very, very weak. Did you get the charts I sent over yesterday, Barry? Did you get a chance to look at those charts at all? Oh, yeah. Did they come through okay? I’m trying something new with our… They did. Well, I got the PDF you sent.
SPEAKER 06 :
I don’t know if I could see. I’ll look at the other. I don’t think I saw it on the other end. I’ve got to see if it works on MailChimp that I’ve sent it out. Yeah, but no, I like your way. I mean, the chart sheet, of course, the one you talked about yesterday. Yeah, the worst one is always the one that kind of gets me a chuckle on it.
SPEAKER 05 :
Strategy would have been the worst. Boeing has a horrible chart. There’s just… There’s a risk-off attitude in the market right now going into the end of the year, and the biggest source, two things, our friend at the Fed, the lame duck, Jerome Powell, and I can’t see with that jobs report, even if it’s old and moldy from September’s jobs report, I can’t see them lowering that rate by a quarter of a point. And that means that people look at that multiple and they say, wow, without a quarter, we were factoring in a quarter percent rate cut. Without that, this multiple of 23x on forward earnings for the S&P 500 is just too high. We’ve got to bring that down. And I think that that is going to continue. I think the same mood that prevailed in the market yesterday before NVIDIA’s report, despite the sugar high this morning, it’s already starting to fade. I think that that risk-off mood is going to last into the end of the year. And then I think people are going to start looking ahead to a new Fed chairman, even though it’s still several months away. But I think the posture of the Fed is going to start to change, and we’ll start to get fresh numbers on jobs and things like this. And we’ll get into the next earnings season. We’ve had a good earnings season. There’s no question about that. It’s the multiple that is the problem, and yesterday’s report did not change that. Now, Walmart, that’s a good bellwether for the economy.
SPEAKER 06 :
They’re an interesting company. I mean, underneath the surface, they’re becoming more and more of a tech company, and they’re moving to the NASDAQ, actually.
SPEAKER 05 :
Did you see that? Yeah, they’re moving to the NASDAQ. They’re the only company that’s challenging Amazon, really, with online. They really are. And, you know, Walmart’s up 6.2% today. It has a valuation problem, too. It’s got a 39 PE ratio. The one that needs to move to online, it is continuing to struggle is Costco. Oh, yeah. Man, that’s a weak chart on Costco. But Walmart, they’re doing what they can with less traffic in the stores, more delivery, more online, trying to stave off Amazon. Amazon still hasn’t really gotten into the lower-end groceries, their Whole Foods market, which is higher-end.
SPEAKER 06 :
And they’ve got a 30. I mean, the difference is they’ve got a 34 PE versus Amazon’s got a 30 versus Walmart’s.
SPEAKER 05 :
Well, the PE is 39 on Walmart. Walmart is probably going to be a trillion-dollar company here. It’s $850 billion right now. How’s Lilly doing? I’m predicting that Lilly will be the next. Oh, man, look at Lilly. It’s just right there on the cusp. It looks like Bill’s prediction.
SPEAKER 06 :
$9.39 right now, yeah.
SPEAKER 05 :
No, I see $9.95. Oh, okay. On Market Focus, which is live, you’re just within a shouting distance of getting over a trillion, and that will make news when it happens. And my article, which that wasn’t the first one. We predicted the trillion back when it was $600 billion, and now it’s $995 billion, just a hair away from a trillion, bigger than Walmart, believe it or not. And it will become the 11th, the 11th, we call them the elect 11 trillion dollar company when it crosses over that line, which could be today or tomorrow. Who knows? Maybe tomorrow. Okay, well, we’re out of time. That’s my take on it all. I don’t think that all of a sudden has reversed the course of the kind of sell, taking money risk-off attitude in the market right now until we get a clearer stance on the Fed of more rate cuts. That’s what the market wants. That’s the way it is. And until we see hopes of that, I think you’re going to continue to see the multiple being compressed on the S&P 500 and the stocks with the highest multiples and the biggest profits are the most vulnerable right now. Okay, to get a four-week trial, I’m already starting on next week’s newsletter or Saturday’s newsletter. Go to GundersenCapital.com Sign up for a four-week trial to talk to us about money management. That’s what I spend 90% of my time doing is managing portfolios. Give us a call and set up an appointment. 855-611-BEST. 855-611-BEST. 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 SIPC and FINRA.
