Join Bill Gundersen and Barry Kite as they explore the weekly financial landscape with a focus on high-profile company earnings, including Boeing, Spotify, and Procter & Gamble. Through in-depth analysis and engaging conversations, they dissect company performance metrics and discuss strategic investments within the technology, railroad, and retail sectors. Insights into new developments, such as the strategic acquisitions by Baker Hughes, shed light on industries with potential growth amidst economic uncertainties.
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 02 :
And welcome to the Tuesday, July the 29th edition of the 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. We have a mixed open to the market today. A lot of earnings have come in. The NASDAQ was popping here a bit ago, but it’s pulled back a little bit. NASDAQ’s up 36 right now, 21,204. Let’s not sneeze at that. That’s an all-time high. The Dow is down six points right now, as a few Dow stocks have reported. We’ll get to that in a bit. The Dow is at 44,831. Not a new all-time high, but pretty close to it, just a few hundred points away from that. S&P 500 up nine points. That is a new all-time high.
SPEAKER 1 :
6,399.
SPEAKER 02 :
Small caps up a third of a percent. That’s the Russell 2,000. Interest rates are down a couple of basis points in front of tomorrow’s big Fed decision, which should be no decision, basically leaving rates alone. It’s what they’re going to do going forward that everybody will be listening for. Gold is up a little bit today. Gold is at 33.14 and crude oil is up to 67.37. It’s had a little bit of a lift underneath it here recently. And Bitcoin is wobbling about. It’s up $97 right now to $118,833. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management and Nationwide. Fee-based only money management and financial planning firm. And I’m here with Barry Kite, our chartered financial analyst and certified financial planner, part of the Gunderson team. That will take care of your needs if needed or if you’re interested. Of course, we’ve got a lot of clients currently that we take care of their needs. Keeps us pretty busy on our toes. But we’re always adding more to the fold to the family, as we say here at Gundersen Capital. And we’ve got a team going to Detroit here next Monday. Yeah, Team Detroit. That’s right. We’re traveling to Detroit on the team bus, the Sugar Magnolia, and we’ll be there on Tuesday, August 5th.
SPEAKER 01 :
That’s a week from today. Got to pack my Red Wings hat from the last time we were there when you sent us to a Red Wings game.
SPEAKER 02 :
Yes, the Red Wings game. And, you know, I wouldn’t mind going to a Detroit Tiger game, but I doubt that I’ll have any free time. I don’t think we’re getting out of there.
SPEAKER 01 :
I think they’re playing at 640. So I don’t think we’ll be done by then. Definitely not on Tuesday with your workshop, though.
SPEAKER 02 :
No, and I’ll still be talking to folks from Bloomington Hills and the surrounding neighborhoods, Auburn Hills, Detroit, wherever the case may be, Motown. Let’s just call it Motown. And Tuesday, that workshop at 7 p.m. to 8.30 at the Kingsley Hotel in beautiful Bloomington Hills, Michigan. Bloomfield Hills. Get Minnesota mixed up.
SPEAKER 01 :
Me too.
SPEAKER 02 :
And meeting with folks privately Tuesday and Wednesday. We’ve got a full slate, but she opened up, Edie opened up Thursday. I’m hanging around on Thursday to catch. We added another date to the show, you know, because of demand. So you can meet with us. We get around maybe once, twice per year at the most to the show. to the hills up there of Michigan. And the rest of the time we’re traveling around to other cities or at our home base here in Mount Pleasant, South Carolina. Okay, it was a quiet day yesterday. The EU trade deal did not move the market. And you say, why didn’t the market really react to that EU trade deal? Well, in my opinion, the market is now trading at 26.9 times earnings. That’s the S&P 500. 30 is about as high as I’ve seen it. I mean, I got to go back to the year 2000 to get up higher than 30. We had 30 PE back in 2021 when we had all of that COVID money sloshing around and Stocks like Teladoc getting $210 per share. Those days are well behind us, but we did get up to a 30 PE multiple. And then the Fed went out their crash course of raising rates. This time’s a little different. We’re up around 30, probably at 27 right now with today’s move. But the Fed is going the other way and lowering rates. So maybe it’ll be a little different this time. We’ll see. But you always have to be on your toes. We have some big, big profits and some big, big stocks and we do realize that this is a very rich market right now. The PE on the NASDAQ right now is 32.3%. Well, I bet Trump is happy with these numbers here today. Did you see that the trade deficit narrowed more than expected in June? I think that’s one thing that he wants to accomplish during his presidency, is trade that trajectory where we’re not importing so much and exporting so little. And he’s got to be happy to at least see it going in the right direction. We were expecting about $100 billion shortfall. Instead, we’re at $86 billion. So we’ve cut into that deficit by $14 billion. Which will help GDP at some point. It helps GDP at some point. And if we can stay on that trajectory and continue to narrow that gap, our GDP is going to go up, okay? Our exports will increase, and hopefully our deficit, we can change the trajectory of that massive deficit that we carry. Oh, man, it’s a big earnings week. This is the one, really. This is the big, big week. We’ve already got Boeing. We’ve got Spotify. We’ve got PayPal. We’ve got Procter & Gamble. I can’t wait to report on Procter & Gamble. Starbucks is coming. Merck is reported. UnitedHealthcare, which has had nothing but trouble. UnitedHealth Group, that is. UPS. We have one company warning on the economy, the macro picture. But sometimes that’s just a cover for their overall bad results. And we have one company warning on tariffs today. That’s the first one I’ve seen. Now, tomorrow, not only do we get the Fed decision, we get earnings from Microsoft and Meta and Ford and Qualcomm and Lamb Research. So very, very busy week. Apple on Thursday and Amazon, the two A’s, the two big A’s in the fabulous seven. And we have some deals going down here today. The deal activity has been at a pretty brisk pace here and there, but this time it’s in the railroads. where they met in the 1800s in Ogden, Utah. That’s where the golden spike is. The guys building the train from the east met the guys building the train from the west, and they met there in Ogden, Utah. Now we’re going to have our first transcontinental railroad. And I guess, Barry, all my little Norfolk Southern HO trains that I own, I have a few Norfolk Southerns. I’m going to have to paint that over with Union Pacific, you know. A lot of railroads have gone by the wayside over the years. I don’t see Savannah, Atlanta. I actually have an O-Gage locomotive. It’s beautiful. It’s O-Gage. It’s black with gold lettering. It’s Savannah to Atlanta, Barry. Did you ever take that train? Did your parents ever take that train?
SPEAKER 01 :
No, but I think I told you this. I had a client in Nashville. He has, I think he has actually a train museum now because his wife got tired of him having all the train stuff in there. Oh, my wife. All the police. place settings and things like that. But the coolest thing he had was all these different stock certificates that had now been essentially worthless except for their collectible value. But they were just amazing. He had all these ones, like you said, different, just literally from… City to city, and they all had their own lines.
SPEAKER 02 :
Yeah, Baltimore and Ohio.
SPEAKER 01 :
Imagine that.
SPEAKER 02 :
B&O, that was on the Monopoly board, and Reading Railroad, and Penn, and just on and on and on. Now they’ve become collector’s items, of course. But Union Pacific confirms the deal for Norfolk Southern to create the first… U.S. Transcontinental, and of course, I mean, the name you see the most these days is Union Pacific. Union Pacific is headquartered in Omaha, Nebraska, the railroad capital of the world, home of Warren Buffett, and of course, Norfolk Southern. I’m not quite sure where that is. That’s Atlanta. Maybe that’s where that Savannah to Atlanta trade, maybe that was a subsidiary of Norfolk Southern who is now merging with Union Pacific. Of course, there’s still Burlington Northern, there’s still CSX. While I was down in southern Florida here not too long ago, I saw an Atlantic Coast trade. railroad uh it’s literally weird going across the everglades kind of that area where did that come from a locomotive well they used to still they go from new york city to miami on the uh on the amtrak and there’s a few other freight trains along the way those were the days we’ll be right back And welcome back here to the second quarter of today’s Best Docs Now Radio Show. Now, here’s a little lesson on the market here today. I see that the buying price… of Norfolk Southern is $320 per share. That’s what Union Pacific, if you add up the cash and the stock. And so you look at Norfolk Southern today, and you see it’s at $280, Barry, and they’re buying it for $320. Why? I think you can explain that one.
SPEAKER 01 :
Yeah, I mean, that tells you that there’s speculation that this deal will actually go through. Not go through. Yeah, yeah, exactly. I mean, there’s, you know, number one, I don’t think the deal is supposed to close until, like, 2026. You could have some, you know, antitrust and other issues pop up. So, yeah, if you’re confident that this deal is going to go off at $320, well, then, you know, today’s your day to back the truck up. Yeah, exactly, because that’s $40. That’d be a 14% gain on your money if they approve the deal, right? Yeah. Yeah, and that’s a great point, though. I mean, when you look at this particular deal, you look at that, and there is a good chance, right, that it won’t go through, especially when you’ve got that big of a premium difference. Yeah, monopoly. Not that Amazon’s not a monopoly.
SPEAKER 02 :
Yeah. They just got there a different way. Yeah, I mean, come on. But anyways, that’s why it’s trading at a big, steep discount to the buying price. It will create a railroad with 50,000 route miles across 43 states. It doesn’t cover Hawaii. It doesn’t probably cover Alaska. I don’t know, but it goes from the east coast to the west coast, linking approximately 100 ports. You know, it’s an important part of the supply chain, whether you think it’s a dead industry or not. No, it’s a very important cog in the wheel. How do you think they transport all those cars that they build on those auto carriers?
SPEAKER 01 :
Yeah, you see them come in right there on the other side of the bridge here on the Charleston side of the Ravenel Bridge. If you’re coming from Mount Pleasant and look to your left, you’ve got all those Mercedes or, no, the BMWs that are on. They come in via rail, and then they literally get dropped off at that car-carrying ship and go elsewhere.
SPEAKER 02 :
Yeah, you know, I drove by that yard yesterday, and I was counting. There was 16 different tracks, you know, side by side. So that’s a pretty big yard, important yard there for Charleston because the cars do come in on ship. And I imagine they come down from Greenville maybe where we build BMWs or they go to another port. But that’s a big part of the supply chain. Baker Hughes is buying Chart Industries. That’s a pretty big deal. Now, that one is totally different because Chart Industries is immediately reacting. It’s up 16% or $27 a share as investors look at that and say, well, you know, that one they’ll probably allow. And I think it’s a strategic buy for Baker Hughes. Chart Industries really specializes in infrastructure for liquid natural gas, LNG. We owned it for a while. We thought LNG was going to be a big deal, but the problem with LNG is its abundance. The supply, it keeps the price depressed. And even though Europe depends on it highly and is turned away from Putin, obviously, it’s just hard to get any gains out of stocks linked to natural gas. But I think that’s a good strategic buy for Baker Hughes, buying a company that is more focused on liquid natural gas. Now, good news for subscribers, Barry. You know, I use PayPal, but of course you can use a credit card too if you want to try my app, subscribe to my app or subscribe to my services for all the do-it-yourselfers out there. You can now pay with crypto. on paypal so you can buy bill gunders’s newsletter with your bitcoin account that’s new i think that’s going to be more and more prevalent as bitcoin seems to become more and more mainstream and uh you know i know robin hood you can get like a debit card on your bitcoin uh account your portfolio so anyways it also makes uh uh you know transaction cross-border transactions it simplifies those so anyways there’s that okay now here’s a little update on the bond market i saw one today we’re shopping by the way barry you’re shopping right on a
SPEAKER 01 :
I’ve been up and down the aisles, haven’t seen anything that’s been kind of in our price range.
SPEAKER 02 :
Well, you know, it’s kind of the same situation in the stock market. The aisles have kind of been picked clean, like there’s a hurricane coming. Not quite that bad, but I saw advanced auto parts, 7 and 3 8ths. That’s a good rate. I mean, that’s going out seven years. You double your money in seven years, basically. Not quite, I guess. You double your money, rule of 72, in 10 years. But seven and three-eighths, so the first thing you say is, okay, well, you know what? They’re paying a premium. It must be a higher-risk company because the going rate right now is more in the high fours, low fives. Here’s the first company I’ve seen this earnings season, which may surprise you, that really made a big deal on the tariffs. And it’s Stanley Black & Decker, which has pretty thin margins to begin with, okay? You know, when you think of Stanley, you think of Lowe’s and Home Depot. They have major sections there where they sell a lot of their wares. everything from hammers to drills to drill presses to all kinds of things. But they’re estimating that the tariffs will create an $800 million gross annual effect in 2025. That’s a pretty big deal. And that’s got to mean that they’re having most of their stuff built, manufactured overseas in high-tariff countries. I’m going to guess China. And then bringing them here to the U.S. to sell at your Home Depot and your Lowe’s. So I would expect higher prices on screwdrivers and, you know, all the things that I have a difficulty with. I just never was very mechanically inclined. I mean, I can swing a hammer. That’s why my thumb is, oh, man. But when it gets down to this flying stuff and, oh, man, I’m telling you, wiring and whatnot and fixing this and fixing that. My wife mostly handles that side of the thing. UPS is the first company or maybe second or third one that has warned on the macro uncertainty. Well, UPS, if I’m not mistaken, has lost Amazon as a customer. Amazon’s pretty much eating their lunch because Amazon can afford to lose a little money here and a little money there because they have such a big operation. UPS only does one thing. They deliver. And it’s very hard to compete, which I continue to say Amazon’s the biggest monopoly we’ve ever seen in our lifetime. But UPS is falling after pulling full-year guidance due to macro uncertainty. And I would just say that it has never been a very good stock. I remember the year they went public, Big Brown. I think the horse that actually won the Kentucky Derby that year was named Big Brown with Kent DeSormo, the Cajun, the Ragin’ Cajun jockey. Well, when we come back, my favorite stock. We’re going to talk about their report and how they’ve done over the last 1, 3, 5, 10 years. It’s probably one of the most owned stocks on Wall Street. 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 GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Back to the second half of the show. And welcome back here to the second half of today’s Big Best Stocks Now show because we’ve got a lot of big earnings reports coming in here today. Let’s begin with Procter & Gamble, Barry. It’s down 82 cents right now. Procter & Gamble, which we rag on a little bit because I just see it as kind of the face, the poster child for the big Wall Street soggy stocks that they love to own. And, look, you tell me. You make an argument for owning this stock. Over the last 10 years, an ownership in Procter & Gamble, which, again, is probably 100% owned by the big Wall Street firms, almost every portfolio that comes to me from another firm has Procter & Gamble in it. P.G., Over the last 10 years, it’s delivered 9.9% annual returns, average annual returns, including the dividend. But you might say, well, that’s not bad, Bill. But the market’s 21%, and that’s the benchmark. That’s what you put it up against. Over the last five years, it’s delivered only 7% per year. You call that diminishing returns, Barry. And during that time, the market’s delivered 19.8%. So now it’s at almost one-third of what the market has traded at. And again, you’re taking market risk, but you’re not getting rewarded for taking the market risk here. You’d be better off buying the market. Over the last three years, Procter & Gamble has delivered 5.6%. The market’s delivered 20.4. Now you’re looking at one-third to one-fourth of the market returns. It gets a performance grade of C- when I compare it with the other 5,300 stocks in my database. And over the last 12 months, it’s gotten even worse, if that’s possible, Barry. Over the last 12 months, Procter & Gamble’s down 3.5%, while the market is up 18.4%. That’s 22 percentage points. That’s called opportunity cost. You could have had your money in the S&P 500 or a better stock, let’s say NVIDIA or whatever, a stock of today instead of a stock of yesteryear, but this is one of the most widely held stocks in the nation. in pensions and 401 iras i’m just telling you from my experience this is the kind of stock that wall street loves to own somebody’s going to upgrade it today and someone’s going to downgrade it and who cares the results are miserable
SPEAKER 01 :
defensive name, but the problem is if you’re going to rotate into some of these value names from growth right now, and if you’re doing that, you’re rotating from a growth name that has growing earnings to a literally an overpriced, in terms of P.E. ratio, consumer staple, which is not ideal at this point. I mean, what’s it going to do? Everybody piles into that, and guess what’s going to happen to that P.E.? It’s going to keep going up. Yeah, and it’s not cheap. The P.E.
SPEAKER 02 :
ratio on Procter & Gamble is 23, and it’s growing. Their sales were up 2% year over year. That’s basically flat.
SPEAKER 01 :
It’s not a peg ratio you want.
SPEAKER 02 :
And the earnings growth is 1% to 2%. So that’s not what I’m in the market for. That’s just me. That’s Gunderson Capital Management. We kind of sneeze at stocks like Procter & Gamble.
SPEAKER 01 :
And rather rotate to a money market, right? Rotate to a money market versus rotating to Procter & Gamble. Absolutely.
SPEAKER 02 :
Absolutely. And I got nothing against Cincinnati where it’s headquartered, and it’s a great company and all. But anyways, it’s not our cup of tea at all. Now, okay, let’s go to the next one here. I told you yesterday, I said, you know, I drove by that Boeing plant, and it’s loaded. They are loaded with planes ready to deliver and they basically said the same thing here today that kind of the turnaround is underway. The stock is down 3%. It’s not really flowing to the bottom line yet. But you would just have to say that the worst days are behind them from all of that 737 and those planes going down. And then you had COVID and the supply chain and on and on and on.
SPEAKER 01 :
Remember you had a machinist strike for a while, right? And they still got some labor issues on the horizon that they’ve got to clean up. But, yeah, it’s certainly… Looks a lot better than it did at the bottom.
SPEAKER 02 :
And the deliveries are going up. They beat on revenues. You know what? Look, I value it over the next five years. I’m using an 8% growth rate, which is pretty liberal. I come up with a 43% upside potential over the next five years. That’s subpar. That’s an F. Value grade, I mean, I can’t see this stock doubling.
SPEAKER 01 :
And a lot of headline risk, too. I mean, always has headline risk no matter what happens. And we’re all rooting for Boeing because we all find ourselves on Boeing jets at times. A lot of my friends work there. Right.
SPEAKER 02 :
But over the last 10 years, 6.4%. Last five years, 6.3% is picked up lately. It’s up 28% over the last 12 months. It’s got good momentum right now. It’s an A-plus momentum grade. But I just don’t see the value. The chart is very strong. The turnaround is in place. But it’s still not my cup of tea. Now, as I say, we have a big, huge winner in the market today. And we have, you know, a loser. Not a big, big loser, but big enough to give me grief and to put a frown on my face. Spotify, which is expected to make $14.36 next year. They reported a great sales growth quarter. Their sales were up 21%, but they had a terrible earnings report here. Very lackluster. We may have a change. And people ask me, Bill, what are your reasons for selling? Well, one of them, if I were to list 10 reasons, one of those 10, it would be probably very near the top. I mean, a stock getting way too expensive, nosebleed expensive. CoreWeave was an example of that earlier this year. It was unpalatable for me, the PE that it was trading at. We sold it for a big profit. If the story changes, okay, I don’t know. I think this could be a story changer here where all of a sudden this expected growth and these expected earnings, all of a sudden they kind of just doused it. You know, with a big dose of water all over it, I’m going to have to reevaluate things. It is off its low here. It’s traded 10 times normal volume. Spotify is down 9.4% today after a lackluster Q2. Let’s not forget, you know, these, like Spotify, they had a lot of oomph. leading up to the election, right, with Joe Rogan. And right now we’re in between elections. That makes a big difference for even Salem Radio, the station that we’re on.
SPEAKER 01 :
Well, they have to buy content. That’s the other thing. They have to invest in content, you know, having all these different podcasts. You know, Joe Rogan’s not on Spotify for free. No, they’re paying him big bucks.
SPEAKER 02 :
But that has been working. That model has been working and really blowing up their earnings tremendously. They’re looking for 65% growth in earnings this year and 50% next year. I’ve got to see what happens to that. Spotify is $133 billion. You know, I’m of the opinion that Spotify has done to the radio and podcast industry what Netflix has done to the movie and subscription industry. But this could be a big hiccup here. We’ll have to reevaluate.
SPEAKER 01 :
Yeah, and currency has been a big issue. They’ve had big, big headwinds in currency because I believe they’re a European company, if I’m not mistaken, and a lot of their revenues are in dollars, of course, and then they take those dollars back to Europe. And the euro has been rising against the dollar, which created about a 4.4% headwind there. for earnings. So currency translation really has affected them. You would imagine with this deal with the euro that the dollar should gain a bit against the euro, which could give them a currency tailwind next quarter. But it’s kind of up to the currency flows to decide some of their earnings at this point, which is Always a bit tricky, the currency markets.
SPEAKER 02 :
And they are headquartered in Luxembourg. And what a growth story this has been. One that I would have never expected because that’s a difficult industry. It’s a crowded industry. But they’ve done a great job. And this is the first hiccup they’ve had in a long, long time. And let’s see if the story has changed. Now, the big winner on our side, in fact, we were ahead this morning, even with the Spotify being down. This is probably the biggest winner in the market today. We have a lot of those. We have our share losers, too. We just talked about Spotify. Celestica is in that very nice space. In fact, it’s one of the top-ranked stocks, and it has been in the Best Stocks Now app for quite some time. Why has it been top-ranked, and why is it one of the biggest winners in the market today? And it’s one of the 19 chosen stocks in our Ultra Growth Portfolio. We’ll be right back. And welcome back here to the final segment of today’s Best Docs Now show. Now, just for comparison, we just went through Procter & Gamble’s performance over the years. That’s where I begin with the company is their performance. It’s just like the back of the baseball card. It lists the batting average, the RBIs. That’s what I want to see when a player steps up to the plate. How many home runs has he hit this year? Should I be worried about the thin lead we’re holding on to with this guy stepping up to the plate with guys on second and third? Well, anyways, CLS over the last 10 years has delivered 29.7% per year. No guarantees going forward. This is their batting average over the last 10 years, their career in the majors. Over the last five years, however, Celestica CLS is the symbol. I believe it’s a Canadian company. Celestica is headquartered in Toronto. Yes, they are kind of a… Contract manufacturer, I would call it, in a lot of different industries, electronics, aerospace, etc. Celestica over the last five years is 90% per year versus the S&P 20%. That’s a far cry from 6%, 7% that Procter & Gamble will be. You’re taking on a lot more risk. Well, I’m taking on market risk. I want to be rewarded for my market risk, and I want a team on the field of all-stars. I don’t want a bunch of overage veterans that strike out most of the time that are batting like 189. Okay, that’s just my baseball analogy. Over the last three years, Celestica, right in the center of all this AI and stuff, 150% per year, no guarantees going forward. But I’m just saying, a company like this is more prone. I’m just, from a probability point of view, in my mind, you know, is more prone to be a good performer. What would all of a sudden make Procter & Gamble be this great performer beating the S&P 500 and delivering alpha? Nothing. Over the last 12 months, this stock is up 239%. Now, Bill, that’s looking in the rearview mirror. That’s looking backwards, okay? If you’re going to put this company into your portfolio, which I did back in May of this year, what’s your valuation over the next five years? Because that’s looking forward. Now we’ve covered all our bases, looking backwards and looking forward. What do the scouts say? What’s the projections for this kid? Can he hit a right-handed curveball or a slider? Well, anyways, the valuation here over the next five years, let’s see where it’s at now. I mean, when I bought it, and I’ll tell you when I bought it and how it’s done since we bought it, we’re always on the lookout for more like this. The valuation right now, as I still show, this is yesterday, 90% upside potential. That’s using a 16% growth rate. The forward PE was 28 yesterday. That’s about the same as Procter & Gamble, okay? And CLS has been growing by 42% per year. Procter & Gamble has been growing by 3% or 4%. All right, so anyway, Seleska is hitting an all-time high today, $24 billion. That would put it in almost the mid-cap range. It’s a large small cap. It’s a small mid-cap. It’s up $32 a share today. And we bought the stock. We own 21 stocks in our ultra-growth portfolio, which, Barry, that’s been the sweet spot in the market this year. That ultra-growth portfolio, it depends on the year, but this tends to be a year, especially since March, which has favored more of the go-go momentum type stuff, which the ultra-growth is a step below the Metas and the Amazons and the NVIDIAs of the world, the trillion-dollar companies. We bought Celestica back on May 22nd. We own 21 stocks in that portfolio. 16% is in cash, 84% is invested. It’s up high double digits this year. It’s about doubled the returns of the S&P 500. You gotta look at that, and Barry’s gotta explain the risk and all that kind of thing. And if you look at the track record of that ultra-growth since I created it back on January 1st of 2019, so this is what, the sixth? It’s been around for six and a half years now. You look at the alpha that it’s delivered since I created this portfolio. It does tend to be a little bit more volatile. It was down 29.6% in 2022, the year that the Fed went on the warpath. It was up 67% in 2020, the year of COVID, believe it or not. And it’s having a very good year this year. So anyway, CLS is up now 73% since we bought it on May 22nd. And let’s also remember this is only a less than 5% overall position. In our portfolio, you know, less than 5% overall position. Okay, a few more earnings here in the last couple of minutes I have with you. Gee, I enjoyed this time spending with the folks. It’s been flying by the last few days. The other one that’s flying today, and I kick myself because I knew it was going to do this. Cadence is the chip designer. They design chips. You know, once they have the formulas and all of the macros and the algorithms, etc., Cadence actually does the automated software and the designing of circuit design before it goes to Taiwan Semiconductor for production. And I read that Taiwan Semiconductor just got a huge, humongous order from NVIDIA for the H2O chips, which are the ones that China’s allowed. Cadence is up 8% today, $27 a share, blowing up to the upside. That’s a new all-time high, and I’ve got to believe that’s part of the AI strategy. A little area. Now, the other big disappointment, we have a very small position. I started to nibble at this stock, and then I backed off. The weight loss drug, NVO, Novo Nordisk, out of the Netherlands, is down 21% today. It’s lost more weight off its market cap than my neighbor from church. Novo Nordisk has lost 21% of its body mass today. I think their big problem is, and I was told this by a physician, he says you can’t get a patent on that semaglutide. It’s a common occurrence. It’s something that cannot be patented. And I think that’s their biggest issue with Novo Nordisk is semaglutide can be knocked off and copied. And that’s what’s happening. Well, to get the four weeks to our newsletter, our trades, everything, the app, 855-611-BEST or GundersenCapital.com. If you own Procter & Gamble, set up an appointment with us at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 04 :
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.
