The episode navigates through the challenges facing major industries today, including the healthcare sector’s setbacks and the advancements in nuclear energy. Bill Gunderson provides insights into the current health of the stock market, exploring both the short-term fluctuations and the long-term expectations for major indices. With guest experts, they examine crucial economic indicators and their broader implications, offering listeners strategies to make informed investment decisions in these turbulent times.
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 05 :
And welcome to the Tuesday, May the 13th, 2025 edition of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with our CFA and CFP, Barry Kite, and we have a mixed open for the market today. The stocks that got left behind yesterday, which were mostly the leaders in the market so far, are doing well today, and the stocks that did well yesterday, mostly the stocks that have been left behind so far this year, had their day in the sun. Today it’s the Dow that’s down 138. After a 1,000-point day yesterday, the NASDAQ is up 184, however, and there’s where your leadership stocks of 2025 are coming back into focus today. The NASDAQ is up 1% right now. The S&P 500 kind of splitting it right down the middle between the Dow and the NASDAQ. It’s up 0.5% right now. Small caps are up 40 basis points right now. The bond market is flat. We did have a big jump in interest rates yesterday and a steepening of the yield curve big time. I want to talk about what that means. Today, the 10-year is at 4.47. Gold, which got hit pretty hard yesterday, I think 3%. It’s up a quarter of a percent today to 32.34%. And we’ve got Bitcoin down $800 to $103,500. 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, you know, we had that 1,100-point day yesterday in the Dow. The only thing I can say, it wasn’t really the leadership stocks, the so-called momentum darlings. It was more of the industrials, the trucking stocks, the financials, things like that that were really worried. And retail stocks, oversold retail stocks. Retail stocks that had been clobbered over worries of… The tariff war with China. Now, today we’re getting those leadership stocks popping. And the ones that went up yesterday are lagging the market today. The NASDAQ yesterday was up 779. But remember, there’s a lot of non-tech stocks. in that NASDAQ, and they were the ones that led the way yesterday. A lot of logistics.
SPEAKER 06 :
It seems like if you just follow the supply chain, any part of the supply chain, right? And I feel like those things certainly, you had some of those shippers like Zim were up, you know, what, 16%, 18% at certain points during the day yesterday.
SPEAKER 01 :
Yeah.
SPEAKER 06 :
And some of your laggards. I mean, you had some of your things that have been kind of beat down, some of the folks that kind of didn’t put out a guidance or change some of their guidance. Obviously, the 90-day tariff pause will change their earnings to likely rising, making them go up, right?
SPEAKER 05 :
Yeah. Yeah. Yeah, so it was the logistics. So we underperformed the market yesterday, but today we’re outperforming the market. So every once in a while, even the dogs have their day in the sun, and that’s kind of what happened yesterday. The steepening of the yield curve is quite breathtaking right now. You’ve now got a gap. You’ve got the 10-year at 4.46, the 2-year at 3.76. We’re now 70 basis points down. Between the two-year and the 10-year, Barry, you can tell the folks what that is discounting and what that all means.
SPEAKER 06 :
Yeah, right. I mean, you’ve got the, in terms of, you know, the CPI where we had, you know, you saw that this morning, too, with the, you know, we had a point came in 0.2 for the month. It was supposed to be 0.3. As interest rates have risen, right, and I haven’t looked at rates yet since the CPI report came out.
SPEAKER 05 :
It’s flat. They’re flat.
SPEAKER 06 :
Yeah, okay, not much of a movement. But, yeah, I mean, you had, you know, the rates yesterday, you know, popped up, and that’s because, number one, you get to move, you know, fight from safety, right, moving over to the risk side, which does – bumps rates up. And as you bump those rates up, of course – You know, some PEs come down, and so some of your higher PE names yesterday didn’t necessarily participate because of you had that interest rate offset, I think.
SPEAKER 05 :
And the other thing it means is the market is downplaying the chances of a recession big time.
SPEAKER 06 :
Oh, yeah, huge. So, you know, that was the big deal. Almost, you know, I heard Apollo. I mentioned it yesterday, Apollo. Slott from Apollo, he mentioned basically they took recession off the table based on even just a 90-day pause. I think he’s saying no matter, basically he was kind of saying in the interview, no matter what happens after 90 days, even though he does expect obviously some progress, that Just that 90 days, right, will essentially kind of take, quote-unquote, the actual definition of a recession off the table, at least for this year.
SPEAKER 05 :
Yes. And so, you know, I mean, Jerome Powell should be cutting rates. The inflation’s going down. The chances of a recession are nil and none. And he should be cutting rates now. But, you know, he’s playing it very, very cautious. European markets flat after Monday’s big rally. But they did rally yesterday. We have more earnings reports here today. Quite a few. We’ve got some interesting ones like Under Armour, JD.com, Sea Limited reported, and a few others that were quite impressive. Tomorrow is going to be Cisco. which is the epitome of a soggy stock these days. And then on Thursday, the big one is going to be Walmart. And, you know, I’m sure they’re helped. And Alibaba also is going to report on Thursday as we wind down this current earnings season. Apparently, one of the parts of that China deal, and let’s see how the stock is reacting today. Yeah, it’s breaking out. Boeing. The Boeing breakout. That’s what’s going on today. Boeing could not get through that 185, 188 area. It’s hitting 204 today. Boeing has gone on a tear. It’s up about 80 points. That’s about 60%.
SPEAKER 06 :
It was literally 136 on April 4th.
SPEAKER 05 :
Yeah, and now it’s at 204. And apparently those planes, remember someone else was going to come in and buy them and blah, blah, blah. Well, China has lifted the delivery ban.
SPEAKER 06 :
Okay, so they’re taking them now.
SPEAKER 05 :
I guess they had like a no parking sign out there in front of where they received the Boeing jets, you know. No parking for now. You’re going to have to land somewhere else. And apparently Boeing didn’t resell those planes somewhere else. China accounts for roughly 10% of Boeing’s commercial backlog right now. I didn’t realize, I’ve seen planes over there parked on their… their delivery tarmac that say southeast China. A lot of those are for Taiwan, okay, not CCP China. Yeah, right.
SPEAKER 06 :
No, exactly. And it’s funny, I mean, when you drive by there, I mean, you see planes from all over the world flagged. I mean, you’ve seen Saudi Arabia. Israeli flag sitting right next to, you know. It’s weird. Very strange. It’s interesting. So there’s a lot of… I mean, I love driving by there because you never know what you’re going to see.
SPEAKER 05 :
The sign painter’s got to have all the right colors and the logos right to paint those logos on those planes and make sure he doesn’t get them mixed up, right?
SPEAKER 06 :
Some of the airlines I can’t even pronounce. I’ve seen a couple over there that are a little bit of a different alphabet, you know what I mean?
SPEAKER 05 :
Pretty incredible. We build those things right here. Now, not from head to toe. I know some of the parts are flown in from Seattle, but they’re tricked out and they’re finished right here just a few miles from where we live at the big Boeing plant. Okay, now, so apparently China Airlines is expected to take 25 of the 30 remaining 2023 737 MAX jets and at least four 777 freighters. Those are huge. And Boeing stock is doing very, very well right now. That should have been in my value fund.
SPEAKER 06 :
Up 50%. I mean, literally up 50% since April 4th. But we’ve talked about it before. It takes to pull the trigger on that one, right? I mean, you’re going against a lot of headwinds that had been out there.
SPEAKER 05 :
They’ve had their issues big time. All right, so now CPI inflation is the next big story that comes in once a month. And, you know, that’s good news. I mean, inflation rises. It still rose less than expected. It was only 0.2. If you annualize that, that’s 2.4. And that’s within the Fed’s 2% to 3% target range. So, you know, I don’t know why he’s being so hesitant to give us at least a quarter point rate hike. Maybe a between meeting, I mean rate cut, a between meeting rate cut. But now, obviously, he’s got the market doing just fine, and it’s getting expensive again. We’ll talk about that when we come back. It’s the Best Stocks Now show. Dan, welcome back here to the second quarter of today’s Best Docs Now show. Well, airfares have dropped 8% versus this same time last year. You know, I did notice as I shopped and did my own logistics for the Cleveland trip, I did notice that it seemed cheaper for airline tickets. They were really getting kind of crazy, ridiculously priced. I did notice a little bit better, and it’s confirmed here today by how they have been dropping. So it is good to see that inflation seems to be under control right now. Now, prices aren’t coming down. Not going up as fast. Right. That’s the bad news. Okay.
SPEAKER 06 :
I did see something on the airline side, which brought some of the prices down, too, is the fares, I guess, coming back from, say, places from Europe and other places have been cheaper simply because folks haven’t, with the tariffs and things, folks haven’t, overseas hasn’t had their travels shut down, kind of closed down from coming to visit the U.S.,
SPEAKER 05 :
Well, Trump says he won, and she says that he won. Trump’s stance is that we achieved… I would just say, I have to take my hat off to Scott Besson. It’s not normally the Treasury Secretary’s job to be the trade negotiator for a country, but he obviously has a lot of say, and I’m glad he does, because he’s kind of the… He’s kind of the adult in the room, right? I mean, with all of this temper tantrum going back and forth between she. I mean, she is drama, too, and Trump is drama. And Besson is pretty level-headed, and he went in there and got both sides to simmer down and hammered out a deal. So I have to really applaud him for what he did. Trump says we’ve achieved a total reset with China. Well, we’ll see. The biggest thing he says that we are discussing is opening up China to American business. And they’ve agreed to do that, but it’s going to take a while to paper it. And that’s another issue with China. I mean, they’ve promised to do things before, like buying soybeans and wheat and corn. Yeah, purchase agreements. Yeah, not following through for one reason or another.
SPEAKER 06 :
I heard Besson in an interview yesterday, yesterday morning. Basically, he said that the Chinese counterpart just told him that once the Biden administration took over, they just quit making the purchases and no one ever really said anything.
SPEAKER 05 :
Well, you know, I mean, he did say China said that Biden never reached out. Right. I mean, that’s I can’t remember, like rigor mortis or something like that for four years. So China just quit doing business with us.
SPEAKER 06 :
Yeah, they quit buying the soybeans that they were supposed to. So, in other words, good news is, as Besson’s mentioned before, that it takes about two to, you’re talking about papering a deal, he’s mentioned it takes about two to three years to get a full deal. you know, comprehensive deal in place. But in this instance, they still have the framework from, you know, from the… Trump’s first. Exactly. So some of those, you know, so it’s going to start out as likely some of those purchase agreements, right, start occurring. And then over time, right, I mean, you’ve got, you know, there’s a lot of different, you know, there’s a million different tentacles into those kind of trade agreements. So… It’ll be, to me, it’s a positive, certainly a positive note.
SPEAKER 05 :
And, yeah, he says, you know, Trump says it would be fantastic for our businesses if we could go in and compete. I could manage their money. You know what? I could run portfolios for the Chinese. I don’t know if Schwab would allow it, but anyways. I think a lot of our business, look at Boeing. You know, and China was trying to develop their own airline industry themselves and build their own. It’s one thing to copy an iPhone. It’s another thing to copy a Boeing 737 liner.
SPEAKER 06 :
That you’re going through the air on, right?
SPEAKER 05 :
Yes. You go first. Now, Xi’s perspective is we will resolutely uphold the multilateral trading system. There are no winners in tariff wars or trade wars. The world is undergoing a century of rapid change with multiple risks. compounding one another bullying or hegemonism that’s a new one hegemonism only leads to self isolation so anyways uh china attempts to cement its superpower status and challenge the u.s on the world states and they are a formidable competitor there’s no question about it i mean You know, they made the big breakthrough with their AI. They’re building their own mobile phones now. They’re working on chips to rival NVIDIA’s chips. So, you know, we have to tip the hat to them also. Goldman Sachs cuts their recession odds. Well, that doesn’t take a genius to figure that out. They’ve lowered their recession forecast for the U.S. to 35%. That’s still too high from 45%. And they upped their S&P 500 target price. Okay, I always like to see what others are saying because I do my own every single weekend. Let’s see, where is it? Okay, their new three-to-month, three- and 12-month return forecast are 1% and 11%. That’s pretty much in line with where I’m at. They’ve got a shorter-term target price of $5,900. That’s about where I am over the next 6 to 12 months, which we’re almost there. We’re at $5,800 now. But now we’re looking ahead now. We’re looking out 12 to 18 months. They’ve got $6,500. I think that’s almost right where I’m at. And I was way ahead of you, Goldman Sachs. You’re finally catching up to me. So $6,500 is their target price on the S&P 500. Now, while things are going well at Boeing, Things continue to decline at UnitedHealthcare.
SPEAKER 06 :
Yeah, did you see that?
SPEAKER 05 :
It’s down 14.5%. It’s plunging. This is a troubled company. And what’s happening today to cause this plunge? The CEO steps down and suspends guidance. It’s been all downhill for UnitedHealthcare. I mean, you had the guy murdered in a very high-profile murder. You’ve had them miss their earnings estimates by a long shot. And now you’ve got the CEO, Andrew Witte, resigning, stepping down due to personal reasons. Whatever that is, okay. So, I mean, this is an Eden Prairie, Minnesota. That’s where we stay pretty much, not too far from there when we go back to Minnesota. This is a member of the Dow. So they’ve already named a replacement for him, and this stock is tanking.
SPEAKER 06 :
In a defensive name, I mean, it’s in the health care space, which is supposed to be kind of a defensive sector. So, I mean, you’ve got to think if you’ve got kind of like some sector health care ETF, I mean, it’s big enough points where it’s affected ETFs.
SPEAKER 05 :
It’s affected the Dow big time. This thing has been cut in half since November. It’s lost 50% of its market cap. It was a $600 billion company. Now it’s a $300 billion company. Some very tough times at UNH. It’s not one that we own. It may be a value play at some point. I’ll be watching the charts because look at the bounce you’ve seen in Boeing. That could happen with UNH too at some point in time. We’ll be right back.
SPEAKER 04 :
I’ve been on the right trail, but I must choose the wrong call. Hit us in a bad place, and I wonder what it’s good for. I’ve been in the right place.
SPEAKER 05 :
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. Now back to the second half of the show.
SPEAKER 04 :
Instigator Because there’s something in the air
SPEAKER 05 :
And welcome back to the second half of today’s Best Stocks Now show. I wonder if the folks at Dow Jones and Company, Barry, have a stop loss on stock, right, that is in free fall. Is there a point where they say, we need to cut this thing like Intel? I mean, they wrote Intel that way down. From It’s High and a few others, CVS, they rode way down from It’s High.
SPEAKER 06 :
Kind of makes you think they’re not invested in the index. They’re just tracking it, right? Yeah, they’re just tracking it. If they were invested in it, then yeah, they might have a quicker hook.
SPEAKER 05 :
But I wonder what their criteria is. I wonder how often they revisit the 30 stocks that are in there. UnitedHealthcare has been cut in half within, what, three, five months?
SPEAKER 06 :
I was looking at their institutional ownership at the break.
SPEAKER 05 :
Oh, it’s heavy. It’s heavy.
SPEAKER 06 :
90%, and I’m being kind because it should be 91%, it’s 90.99% institutional owned between the top two, or between Vanguard and BlackRock, they own 20% of these shares.
SPEAKER 05 :
Well, I mean, Dow Jones basically sets the model for… for the big Wall Street firms because they mostly own Dow Jones industrial stocks in their portfolios. Procter & Gamble, Johnson & Johnson, Merck, AT&T, right on down the line. And they won’t go much further than that with their creativity or imaginations. They just really restrict what the people can buy. Their brokers can buy. I mean, the individuals can buy whatever they want, but… They’re money managers. They’re guys like me. They’re investment advisors. They’ve got a little list of stocks to buy from. And that’s why you see that 90% institutional ownership. That just proves the point that I’m saying, that they over-own these big, giant, liquid stocks. Weight loss drugs may be targeted as Trump vows to cut drug prices. Well… That’s something that kind of slipped through the cracks with the big day in the market yesterday. The pharmaceuticals had a bad day. Big pharma had a bad day. I listened to an interview with the FDA, the head of the FDA, the new guy, McQuarrie, I think it is. And, you know, why is it that, for instance, okay, they’re talking about the GLP drugs right now. Let’s see, Wagovi and Zepbound, which can exceed $1,000 per month in the U.S. retail market, yet you can go to Europe and get it for like one-tenth that price. Okay, why is that? That’s price gouging. That’s what that is, right? I mean, why should it cost?
SPEAKER 06 :
Well, the problem is there’s no – that’s the problem with all of health care, right? There’s no transparency, right? I mean, and the problem is, in reality, those – so take France, for example. Let’s just use them – France is paying a big – the actual country is paying a big portion of whatever the drug cost is. And then their citizen pays, you’ll say, a tenth, right? So then when you look at it as – look at what the drug cost is, well, it looks like it’s $100 when in reality, right, it may be $800. It’s just that France paid for a good portion of that drug.
SPEAKER 01 :
Yeah, they subsidized it.
SPEAKER 06 :
It’s weird. Yeah, right. And so – to figure out exactly what they’re paying. I still haven’t got a great answer on some of that yet, but I’ve been kind of digging and trying to figure it out.
SPEAKER 05 :
It’s kind of the old, if you want socialism, they’ll take 80. They’re happy to take 80% of your income, 70% of your. Remember when the Beatles or the Rolling Stones left England for greener pastures because their tax rate was 80%. They’ll be glad to take that and then choose how to distribute it back to you, and that’s why they’re paying less. But they’re really not paying less because it’s being taken from them up front in the way of taxes. But Trump highlighted the vast price disparities. He said he was having a discussion with a guy. I heard him tell him this story. He says, the guy says, I’m in London, and I just paid for this fat drug that I take. Trump quoted the man as saying, I paid $88. In New York, I paid $1,300. What the heck is going on? It’s the same box made in the same plant by the same company. He described the conversation without naming the medicine. Well, it was either Zepbound or Novo Nordisk. But this could put Castapal over the weight loss drugs. So let’s just take a look at what Lilly is doing today. Lilly’s come to pretty much a standstill in the $750 area. I still think it’s going to be a trillion-dollar company. It’s $710 billion now. But as far as momentum and relative strength, Lilly has a relative strength of 27 on a scale of 1 to 99 right now. It’s just lost all of its momentum because of, number one, they’ve got the competition with Novo Nordisk. Number two, the cost of the drug. And now, number three, Trump breathing down their neck. Why are you charging Americans $1,300 and Europeans $100? So something’s got to give there. Colorado.
SPEAKER 06 :
And you talked about one of the places to save money, right, and whether it’s getting more people on ZipBound to save money for Medicare. We know that’s a huge cost center, and they’re focused. I think certainly the administration’s focused on reducing those costs in some form or fashion, and drug prices are something they’re easily focused on, and all of us would like lower drug prices. Who’s going to argue with that, right?
SPEAKER 05 :
Well, he’s going to slash them, and You know, even Bernie Sanders agrees with Trump on this. He says he doesn’t want to see an executive order. He wants to see it legislated so it’s more permanent. But anyways, this is something that the Democrats couldn’t not accomplish. They wanted to accomplish it, and Trump is actually going after the drug companies. Colorado Supreme Court allows Boulder, Colorado to sue Exxon and Suncor over climate change. So I guess every time it rains or floods, you know, they’re going to want some money from Exxon or Suncor or, you know, freezing or whatever it is. But anyways, that’s going on around the world, making these companies almost like the tobacco companies, which got hammered with lawsuits.
SPEAKER 06 :
Like charging someone for El Nino or El Nina, I guess? Yes. That seems…
SPEAKER 05 :
That’s hard to prove in court, I would think. But Hawaii’s doing it also with that big fire that they had in Maui. Campbell’s Soup, it’s about time. They’re going to shake things up and try to go after a younger crowd. They’re going to really energize V8. When you get a V8, it’s going to be a V8. And they’re going to go into the cocktail. Listen to this.
SPEAKER 06 :
I believe it. I saw something. Run this story, and I’ll tell you something I saw at this store recently.
SPEAKER 05 :
You can have a bean with bacon daiquiri, you know, or a chicken noodle soup. Chicken noodle seltzer. It doesn’t sound very good, but they’re definitely – maybe Campbell’s Soup is worth a second look here, but they’ve seen – you know, they’re so far behind the times.
SPEAKER 06 :
I recently – yeah, recently at the store I saw Simply Orange Juice, right? Florida grown, so that’s – you know, growing up in Florida, always looking for the Florida grown, right? And then I’m going through a different part of the store recently, and it was – It was these little cans, right, the tall, you know, skinny cans, and it said Simply on it, right? And I, like, look a little closer, and it was Simply Seltzer brand. And I’m like, you know, how many people have made the mistake of accidentally picking up that for the kids? So now if we’ve got V8, you know, energized V8 with some alcohol in it, I’ve got to keep your eyes out there.
SPEAKER 05 :
Even with caffeinated, you’ll see your preschooler running to class. Jumping off. Hey, Mom, that’s for the ride, Mom. Okay, V8 was created in 1933 by W.G. Peacock in Evanston, Illinois. It actually sounds quite good. It has carrot, celery, beet, parsley, lettuce, watercress, and spinach juice in it. And Campbell Soup bought it from him in 1948, and now it’s going to get a whole new look, baby. It’s just like the guy that Hanson’s Natural Soda, dad, in Riverside, used to deliver this natural juice. The kids came into the company, and they made monster energy out of it, so why not? NVIDIA in focus as the Trump administration nears a Middle East AI chip deal. And I would just say that, you know, NVIDIA has kind of been unshackled here. And that chart is gorgeous on NVIDIA. And we’ve been saying it. Palantir is 230 PE. NVIDIA is a 40 PE ratio and even lower forward PE ratio. It just seems to me like a lot of obstacles have been taken out of NVIDIA’s course here. It remains one of our largest positions at Gundersen Capital Management. It’s up 5.3% today. We’ll be right back. And welcome back here to the final segment of today’s Best Stocks Now show. And a few other, well, here’s another one that’s going to invest in the U.S., Carrier Global, which builds air conditioners.
SPEAKER 06 :
We can use more in the south. I know that.
SPEAKER 05 :
I don’t know where they’ve been building them, but they’re going to invest $1 billion in U.S. manufacturing and workforce expansion. So that’s another one that is coming this way. Would you lend this company money? Kohl’s looks to offer $360 million of senior notes in a private offering. What’s the rate? It does not say they’re borrowing under its revolving credit facility to repay all of its 4.25 notes due in 2025. I’ve got to believe they’re paying a much, much higher rate than that.
SPEAKER 06 :
Yeah, because what it is is they waited, obviously, this long. Now it’s come due. Obviously, they’re not in as good of a financial position. And, yeah, that’s going to be a high rate. I mean, the one thing is, I guess, but if you think about it, not any debt that we would think about tackling, but if you think about it, I mean, GameStop has lasted a lot longer than we expected. I mean, Bed Bath & Beyond, I thought they were gone for like five or six years before they finally went the wayside.
SPEAKER 05 :
I wouldn’t take it at any price myself. I just wouldn’t do it. I don’t think it’s going to be around five years from now.
SPEAKER 06 :
It was Boeing. Talk about Boeing. Remember me and you threw around that? It was a note that we saw from Boeing, and it was, I don’t know, it was probably six months ago now. Yeah, and it was at a decent rate. And I think the yield to worst was closer to six, but we were still both like, I can’t pull the trigger on that.
SPEAKER 05 :
Yeah, compare Boeing to Kohl’s, which is like night and day. Okay, now here’s an update on a very important nuke stock. New Scale, they reported earnings today. That’s SMR. They are the only SMR company with U.S. Nuclear Regulatory Commission design approval, and now they are targeting. This is an update in their earnings estimates, their earnings report. They say they’re well ahead of the competition. And they continue to lead the market as the only near-term deployable SMR, which stands for something reactor, small. I think it’s small modular reactor. And he says that Hopkins reiterated the company’s expectations for a firm customer order during 2025. Okay, that’s this year. Classifying nearly 10 ongoing customer discussions as advanced. Now this, you know, we’re talking about data center here big time or, you know, FEMA deploying these things. He says that we anticipate that once we sign a contract with a major customer, uh… will start receiving payments in relation to the modules will receive positive cash flow so anyways uh… this is a pretty good update because the stock is up eighteen point three percent on four times normal volume today SMR, new scale, and I have noticed kind of a resurgence here. You ought to read this article. It’s pretty good. I don’t have time to go out there, but there was a question and an answer with the analysts, and there’s a… There’s a summary of that on seeking alpha today. How far out do you think it will be before we’re actually using these things, etc.? The risks are tariffs, obviously. They do not anticipate any material impact. I guess it’s the turnaround time of how fast can you turn around as soon as you get an order, right?
SPEAKER 06 :
Yeah, well, and what this made, you know, we’ve talked about the nuclear space being very long duration, right? And so what this does, at least for this particular company, right, it’s pulling, essentially pulling those earnings forward, right? So in other words, they’re at least seeing cash flow and potential sales, right, earlier than expected timeline-wise, which… It makes a big difference when you’re discounting cash flows from future years, come bringing them back to today for evaluation, and that’s where that 18% pops from.
SPEAKER 05 :
Yes. So I think that it shortens, too, the time to market. Oh, well, it says manufacturing supply chain, new supply agreement with Paragon, all supporting the 2030 delivery timeline. There it is. That’s what I’ve been saying, 2030, for the first new scale module. So are you going to buy a stock today, this is 2015, that might have a product by 2030? You just got to realize that’s what you’re dealing with here, you know, with a lot of these.
SPEAKER 06 :
Yeah, five-year duration and new scale happens to be, I think, they’re ahead of the curve. So in other words, some of the other potential companies may be further out than 2030. Yeah.
SPEAKER 05 :
So the other one here that’s kind of been an exciting stock, but I think it’s getting hit on the chin today.
SPEAKER 06 :
Is that Aquo?
SPEAKER 05 :
Rigetti. Oh, Rigetti. RGTI, which is a quantum stock. Rigetti’s down 10%, and that’s another thing that’s out there probably 2030, according to Jensen Wang, before we see any kind of a, you know, a quantum… application that actually works for the data centers and for the speed that AI needs. So that’s another one. I mean, you’re buying a stock that might not have much in the way of earnings or sales for five years. Rigetti reported 1.5 million in sales. That’s all they have. So those are two out there on the horizon, Regetti and SMR. SMR would interest me more than the Quantum. I think D-Wave, if you want to play Quantum, D-Wave is the way to go. Well, okay, we are out of time. My flight is booked and ready to go, and I’ll be there bright-eyed and bushy-tailed on Tuesday morning, ready to meet with folks on Tuesday and Wednesday. That’s always fun to get out of the office and actually see some human beings, you know, instead of computer screens for a while. and spend some time with the folks, talking with the folks, getting to know the folks a little bit. It’s always fun to learn about a new area of America. And looking forward to teaching a class Tuesday night. Whatever it will be on, I don’t know at this point in time, but I’m sure it will be worth your time to drive over to the Marriott in Warrensville, Ohio, 7 p.m. Tuesday or meet with us Tuesday and Wednesday. There are still a few open slots if you want to grab one. You better do it. Call us at 855-611-BEST, 855-611-BEST, or GundersenCapital.com. 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.
