He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
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And welcome to the Thursday, Wednesday, it’s Wednesday, the Wednesday Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And, you know, we’ve got a pretty good start to the market today. The AI stocks are really flying this morning. But we’ve got the Dow down 69 points right now to 49,294. The S&P is up 12 points at 73.65. The NASDAQ is up 109 right now. With some pretty big moves in the AI-related stocks, Nebius is having a very big morning right now, as is Astera Labs, A-L-A-B. The NASDAQ’s up 114. We’ve got gold down half a percent right now. Bitcoin is up 763. But the two biggest issues right now in the market are oil. Oil is down 2% today. That’s good.
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There are some ships coming through the Straits of Hormuz today. Strait of Hormuz. There’s not a lot of straits. There’s only one strait. And we have interest rates. That’s been a big problem here recently. The 10-year right now is down a little bit, down three basis points, two basis points to 4.65%. And that has been driving the multiple down in the market. We’re off to a very good start here this morning at Gundersen Capital Management. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. And we had yesterday a little bit of an off day in the market. The NASDAQ was down a little. You have the 30-year treasury yield spiking to the highest in nearly 19 years. Holy cow. That’s not good for the real estate market. That’s not good for the housing market. And that’s also impacting the stock market right now. We had a great workshop here in Minnetonka, Minnesota last night. Minnetonka, Minnesota was the first time we’ve been out this way. I like it out here. I like this area. We’re right by UnitedHealthcare’s world headquarters. and Stratasys, and very few other companies in this area. We had a full house. I don’t think there was an empty seat. There were a few cookies left. We missed you last night if you didn’t come. And I went over my various strategies for the market, how I developed my strategies, my background, my philosophy on the market, my formulas for the market. examples of those companies that meet my formulas right now. And it was a good time. I really had a good time. I really enjoy all my friends here and clients and subscribers and everything here in Minnetonka, Minnesota. And we haven’t decided where we’re going next. A lot of it depends on the World Cup. June, there’s a lot of World Cup games. Kansas City, probably San Jose, I’m thinking. I know Atlanta’s got some. So we’re going to have to dodge and weave a little bit and figure out a city that we can go to that’s not involved in the World Cup. Maybe we’ll go to Pittsburgh. Maybe we go to Pittsburgh. Maybe we go to – we can’t go to Dallas World Cup. And I don’t know about San Jose right now. I’ve got to believe that they’ve got some World Cup games too. Okay, 30-year Treasury yield high. If we look at a chart of, let’s see, if we look at a chart of the bond market right now, I use BND. That’s a good proxy for the bond market. Let’s see, marketsmith.com. We’ll get that open there. It’s not a very good chart. It’s an ugly chart on the bond market. Why are interest rates all of a sudden jolting and going higher? That’s a bit of a problem. It’s mainly because of, like I’ve been talking about, fear of inflation. Fear of inflation, a second wave of inflation. And when bond investors fear inflation, they demand higher interest rates and they’re driving interest rates higher. And that’s what’s causing this bout of a sell-off in the bond market. Now, the chart today, I’m going to look at IEF, which is the 10-year treasury chart. IEF is down again. No, it’s bouncing just a little bit today, and it’s actually sitting on its support line. So we’ll see if this support line holds for the 10-year bond. That could be a good holding line, and I… A bunch of the big wire house firms are coming out with buys in the bond market right now. They’re saying this is a compelling opportunity in the bond market right now. I’m not convinced of that. Why? Well, as I look at the chart, it’s testing its low here recently. This is the first day that it has tested it. and we have to see whether or not it holds. One of the things I do at every workshop, and I did it last night, no exception, is I go through my two, three, four, open up the country door. No, it’s the charting that I use. One is a sideways trend, two is an uptrend, three is a topping out trend, and four is a downtrend. And you don’t ever want to buy a stock in a number four downtrend. A number one sideways trend is not all that profitable, really. It’s going sideways. I like stocks when they kind of break out of that number one sideways trend. Now, as I look at the chart of the bond market, it’s been in a number four downtrend. It’s still in a number four downtrend. Therefore, I cannot tell you right now today… that that is a good buying opportunity in the bond market. No, I cannot tell you that because it hasn’t settled yet. It didn’t settle and it needs to start going sideways. It’s still in a downtrend. It’s trying to begin a sideways trend, but this is just day number one of that attempt. Just day number one of that attempt. So I can’t tell you that this is a good time to be buying bonds. On the other hand, I showed last night at the workshop about seven or eight alerts. that I sent out yesterday okay we own stocks obviously that we’ve had for a long time but we have new accounts coming in all the time we have new subscribers coming on board all the time and that means that I find good entry points for stocks that we already own It’s not fair that somebody got into it six months ago and they’re up 60 or 70 percent or whatever, and somebody new comes along and they never get a shot at it. If I see a good entry point again, then, you know, I put those entry points out. And yesterday I probably sent out eight different alerts. on entry points in stocks that we already own. I’m just going to give you one example of this. So this comes from the alerts that people get with the live trading subscriptions that they have. So let me just give you one example here. I did this for Micron yesterday. I said, you know, Micron has pulled back. It’s had a three-day sell-off. Micron is back to a good entry point if you do not already own it. i sent that out yesterday at around 1 p.m 12 30 p.m right in there uh and uh let’s see was it a good entry point i don’t know let’s see how is micron doing today it looked like it pulled back to a nice entry point micron is up yeah it’s up seven dollars no it’s up It’s up 1.15% today to $7.0682. So at least it’s panned out so far. But that’s the way I roll as a professional money manager. I could have a stock that’s up 60% or 70% from my initial purchase. But if it still meets my criteria, it still meets my criteria. I still treat it as a brand new buy. And if somebody transfers an account to me that has cash in it, and I see that stock, even though my original purchase is up 60% or 70%, when I see that original stock pull back to a good entry point, I get them into it. And that’s called building a position over time. You know, sometimes it’s, you know, I can’t help it that you weren’t here when I originally bought it. But that’s not to say there won’t be more opportunities along the way. You’re not getting it at the price I got into it originally, but I still consider it to be a good buy. There’s several stocks like that. I sent out eight such alerts yesterday. Let’s take a look at some of the other action and activity that is going on in the market today. This 30-year Treasury is a bit of an issue. We need to get that under control. At least it’s up. The bond market is up a little bit today, but that’s just day one. of trying to get the bond market stabilized for now. Besant says the U.S. is not in a rush to extend the China trade truce. They’re not in a rush to extend the tariff and critical minerals trade truce with China that ends in November. Okay, well, we’ve got four more months. Put that on the back burner right now as there’s time to renew it in meetings later this year, said Besson. I like Besson. I think he’s a pretty level-headed guy. In his first interview since attending last week’s high-stakes summit between Chinese President Xi Jinping in Beijing, Besson said that he believes China will accept the restoration of prior U.S. tariff rates through new Section 301 duties as long as they don’t go higher. So that’s kind of going back to where they were before the Supreme Court stepped in. So we’ll see. China in recent months had gotten a deal On lower tariffs as a result of the U.S. Supreme Court striking down Trump’s Global Emergency Duties Act, I think we’re not in a rush to extend it, said Besson of the upcoming November tariff truce deadline. It also became official that China is buying 200 Boeing jets. And they’re seeking an extension of the U.S. trade deal, which Besson just said we’re in no hurry to do. Here’s a good question. This is a fair question. I had my contingent here last night from GCG, who I am now merged my company with them and am part of them and own stock in them. And we are now teamed up to sweep across America. And I have a lot more people on my team now than I’ve ever had before. And Joel Burris, who is the CEO of GCG, was at the workshop last night. He was flabbergasted. All you folks that came out last night. We were taking pictures with one another. We were having such a good time last night. It was like a Grateful Dead concert. Except we had a little bit older audience than the Grateful Dead. And I didn’t see anybody twirling around in tie-dye shirts or scarlet begonias in their hair. But it was a good crowd. I love my Minnesota fellow Scandinavians for the most part. And Joel asked a question during the question and answer period that I always do at the end of my workshop. And Joel asked me, he said, Bill… You talk about this big backlog at Boeing, a 10-year wait to get a Boeing airplane. And you talk about the massive expansion that is taking place in your backyard at the Boeing plant and the hiring that is taking place. Why isn’t the stock doing well? Well, my answer to that is there’s not always a connect Sometimes there’s a disconnect. There is a disconnect between the story, yes, driving by the plant, seeing employees, trying to get a ride to work, seeing the massive buildings they’re building, seeing the hiring that’s taking place, and there’s a disconnect with the stock. The story doesn’t quite match the stock. And that’s why when I hear Jim Cramer and others, or clients, prospects, saying, you know, Bill, I heard this story of this stock. I always look at the chart of the stock and the earnings of the stock, and I can tell immediately why that disconnect is there. And when I pulled up the chart of this, Boeing, last night, I said, look, Joel, number one, it has a very, very weak chart. That tells me that there’s a problem, that they’re not, it’s not a Micron story, okay? Micron has a massive backlog, but Micron’s going to make $102 per share next year. SanDisk is going to make $150 per share next year. Boeing is going to make $4 per share maybe this year. Furthermore, when you look at the track record of earnings at Boeing over the last 10 years, it is a total mess. A total mess. Big, huge losses during COVID. Big, huge losses during all the issues that they had with the planes that were crashing and going down and sidelining those planes. They’ve had a very, very, very volatile past. Almost as volatile as the UnitedHealthcare here in Minnesota. Boeing, you know, doors flying off over Seattle. You talk about sleeplessness. How about hit by a flying hatch from a Boeing in Seattle in your backyard? It landed in somebody’s backyard. That’s not good for the stock. It’s not good for the confidence of institutional investors. And for that reason, the story of Boeing and all the backlog… And the 200 plane orders, let’s just see if that’s even moving the stock today. That would be another telling sign as to whether there’s a connection between what is going on in the backlog at Boeing and what is going on in the stock. Okay, so they get this 200 plane order. Eh, the stock, it’s up 2.8% today, but it’s in a major sideways trend is Boeing. And I think that that backlog is, is also an indication of how far kind of behind reality that they are, right? They’re a little bit behind reality having that kind of a backlog. So for that reason, Boeing is not a very good stock right now. When will it be a good stock? Well, I think once they get all the problems behind them, once they start working down that backlog, once they start getting planes out the door, once they start booking sales that drop earnings to the bottom line, once they kind of get caught up a little bit, right now they’re scrambling. It reminds me of the Fed and Jerome Powell when they had to do 475 rate hikes, right? It was horrible. It was absolutely horrible. They were way behind the curve. So, anyways, there is the issue with Boeing. We have also here, we have the, let’s see, we have the Boeing news of the 200 airplanes. And like I say, it’s barely moving the stock today. UK wants to cap food prices. You know, I’ve got to tell you, the UK, United Kingdom, where my ancestors came from. 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. And welcome back here to the second half of today’s Best Stocks Now show. Here’s the good news today, and I think this is one of the reasons why the market is up and interest rates are down a little bit. And oil is down 2%. Chinese tankers exit Hormuz. As Iran deal talk heats up. Two Chinese tankers carrying around 4 million barrels of crude exited the Strait of Hormuz on Wednesday. Reuters reported citing shipping data as President Trump and Vice President J.D. Vance signaled that the Iran war may end soon. Hmm. We’ll see. The ships are among a handful of super tankers carrying Iraqi crude exiting the waterway this month. So that’s good news. And I think that’s one of the reasons that the market is up today. That helps a lot. Also… We have the Samsung strike looming after union talks collapse. Negotiations between Samsung Electronics and its largest labor union have collapsed. increasing the likelihood of a strike at the world’s biggest memory chip maker. Well, we know all about the memory chips and the problems going on there. Let’s see how the ETF EWY is handling this news today. It’s kind of a two-edged sword. On the one hand, it’s not good to have a strike. On the other hand, It raises the price of those memory chips. EWY is actually up 2.37% today on this news because, like I say, they go on strike and the prices go even higher on these memory chips. Let’s take a look at SanDisk today and see how it’s behaving with this strike about to happen. SanDisk is up a little bit, $4 per share today. So we have that. to deal with today, and that memory shortage continues to be absolutely critical. The auto industry warns of motor oil shortages. Motor oil. Well, if you have an electric car, I guess you don’t have to worry about that, changing the oil and all that kind of thing. But you know what? I never was very mechanical. And I’ve tried changing the oil on my car a few times, and I’m laying under the car, and there’s the big drip pan that all the oil goes into. And the first thing I do as I’m laying down under the car, hoping it doesn’t fall off the jack and crush me, is undo the nut, the nut to the oil pan, right? Immediately, the nut falls into the oil pan. The oil pan fills up with usually warm to hot oil, which isn’t fun, and the nut’s in there somewhere that you’re gonna have to use at some point in time to seal that thing back up. And then you gotta, of course, dispose of that oil somewhere. What do you do with all of this oil? I don’t know. You can’t dump it in the river. You can’t put it on your lawn. It’s not going to grow the tomatoes. What do you do with this big pan of oil? So I just decided, you know, Jiffy Lube’s probably a better option next time. And this is speaking to all you do-it-yourselfers out there. I was a do-it-yourselfer in many things. But there’s certain things that I decided, you know what? I’m going to hire somebody. to do this for me. I don’t change my oil anymore. I figure I can make more money looking at charts than I can changing my own oil, even though I like to save $27. So anyway, there’s going to be a shortage of oil for cars. That’s not good coming up because of this Strait of Hormuz. Another thing that we haven’t thought of. Goldman Strategist sees bond buying opportunity as sell-off opportunity. deepens okay well like i say i’m not convinced i will see it in the charts last night at the workshop i went back to my april 8th article when i said this is a most compelling buying opportunity i saw it in the charts I saw it in the rising earnings expectations. And I saw it in the lower PE multiple of the market. And I saw all those things converging at the same point in time. And that’s why I’m not convinced that this is a good buying opportunity yet for the bonds, although Goldman Sachs thinks it is. They must have a bunch of bonds they’ve got to get rid of. I don’t know. Micron, NVIDIA, AMD climb, that’s today, as Samsung strike risk threatens chip supply. Okay. This is like the perfect storm. I went through the earnings of SanDisk last night. We talked about the CAN SLIM methodology. The CAN SLIM methodology. The CAN SLIM methodology, the C stands for current earnings, quarter over quarter, okay? And the A stands for annual earnings. Let’s just talk for a minute about the annual earnings at SanDisk, okay? In 2023, two and a half years ago, SanDisk lost $11 per share. In 2024, two years ago, they lost $4.52 per share. They lost. Last year, they squeaked out some profit and they made $2.99 per share. That’s last year. What do you think they’re going to make this year? They made $3 last year per share. $3 per share. This year they’re going to make $64 per share. That’s a 2,062% increase over last year. But wait a minute. Next year, 2027, they’re going to make $175.89. per share. That’s a 172% increase. So from a loss of $11 in 2023 to a gain of $175, I’ve never seen a company with earnings like that in my entire career. Now, yes, it is short-lived. Yes, it is a commodity, but right now there’s a major squeeze taking place in this memory market. that is driving chips prices higher. And SanDisk is one of only three right now. If you’ve got one on strike, you’ve got SK Hynix, SanDisk, and Micron. Now let’s look at Micron’s annual earnings. That’s the A in the CAN SLIM acronym. Micron lost $4.45 in 2023. They made $1.30 in 2024. Last year they made $8.29, a 538% increase. This year they’re going to make $58.48 per share. That’s going from $8.29 to $58.48. That’s a 605% increase year over year. And next year, they’re going to make $100.42 per share. That’s a 72% increase. Now, let’s compare that with AT&T, just for fun. AT&T’s earnings growth. Well, they made $2.70 seven years ago. They’re going to make $2.54 this year. That means no growth for seven years. None. No growth. And as you know, In my parlance, in my world in the stock market, I believe and I’ve observed that stocks follow earnings. If you have flat earnings over the last seven years at AT&T, you’re going to get flat stock performance. That’s how that works. And if you have booming earnings at a Micron or a SanDisk or at a Samsung or an SK Hynix, you’re going to have booming stock price appreciation. And when those earnings start to pop out and start to be lowered and the supply starts to start coming online to drive prices down, then this big squeeze is going to be over. But as of now, I still don’t see an end to this big squeeze in sight. And this strike at Samsung right now over in South Korea is only going to make matters worse. It’s only going to make matters worse. Okay, let’s go to our next subject here. And those stocks, by the way, are getting upgraded today. Let’s look at AMD. It’s getting an upgrade too. And the chip stocks are having a pretty good day here today. A lot of the good entry points that I sent out yesterday were chip stock related. We’ve got a couple of big winners here in the market today. Arm Holdings. Wow. Arm is up. 15.5% today. If I go to my alerts that I sent out yesterday, let me go to those alerts very quickly. At 12.17 p.m., I said ARM has pulled back to a nice entry point if you do not already own it. and it is up today. Now, they don’t all work out like that. Okay, maybe I threw the dart and it landed in the right spot yesterday, but I do look at about 500 to 1,000 charts every single day, and I already own Arm Holdings, and Arm has been a good winner for us, but I also know that a lot of people at my firm don’t own it yet because they’ve come along since I made my original purchase, and I make purchases all along the way for them When the stock pulls back to a good entry point. Well, what’s a good entry point, you say? You should have been at the workshop last night because I showed the folks what I consider to be a good entry point. We also have AMD today up 7.3%. Holy cow, AMD is just absolutely rocking right now. And we’ve got Marvell Technology. Let me look at yesterday’s alerts. Yes, I thought so. At 12.40 p.m., I sent out an alert that Marvell is a good entry point if you do not already own it. I didn’t send out AMD, however. I missed that one. And AMD’s having a good day, but we already own. That’s one of our largest positions here at the firm. Applied Materials is having a big day today. It’s up 4%. ASML is up 5.3%. It’s basically the AI chip stocks. And Vistra is having a very good day today. That is the Texas nuclear utility stock. It’s up 5.7% today. GE is having a good day. GE Aerospace is up 3.6% today. So those are all some very nice movers. And, wait a minute, we’ve got one more. No, I guess we don’t. Okay, I thought there was one more. But anyways, that’s where we are today. And tonight, who reports tonight? Can anybody tell me who reports their earnings tonight? Well, just a little $5 trillion company by the name of Nvidia. And we threw Nvidia up on the board last night. And we analyzed it in the context of what it looks like today. And we pulled up the app. We looked at the five-year track record of the stock. which has been earnings growth over the last five years that has averaged sixty percent per year and the stock price appreciation is pretty much run in sync with the earnings growth funny how that works the correlation between earnings growth and stock price appreciation it works in the indexes it works in the markets it works in the S&P 500 it works in individual stocks NVIDIA will report tonight. That will be the C in CanSlim. We’ll compare their quarter that ended back on 3-31 with the same quarter last year, comparable quarter, and we’ll see what their growth was like. And we’ll compare it with the expectations. And we’ll compare it with what they did last year, obviously. That’s very important. So that will be tonight after the close of the market. Kind of funny that earnings season is basically over. It’s going to be a 27% earnings season. And about 10 stocks have driven it. believe it or not. Yes, that’s right. AMD, NVIDIA, ASML, Marvell, Broadcom, Applied Materials, Seagate, Western Digital, all the growth of that 27% growth basically coming from about 10 stocks, maybe a dozen stocks, And Nvidia, obviously, also being one of those stocks. Okay, let’s look at Micron. We mentioned Micron. It’s having a good day. SpaceX IPO. Goldman Sachs reportedly chosen to lead the record-breaking offering. Should you buy the SpaceX company when it goes public at $1.25 trillion? Well, you do the math. I heard today Bezos say that launching data centers into space, he thinks it’s a ways off. So, you know, unless Musk knows something, Bezos doesn’t. Putting those data centers into space is quite a logistics problem, very much a logistics problem. But never mind, because he has now got a $1.25 trillion on this idea. It’s an idea. It’s unproven. It’s a $1.25 trillion company that has very little in the way of sales other than from the Starlink company. and an idea that you can launch data centers into space and beam down everything. I don’t know how you go up and fix something if something breaks. How do you get a repairman up there to fix it? We were talking to a guy that worked in the semiconductor industry all his life. as a field service guy that went around and fixed semiconductor equipment. He says, how do you get up there to those data centers in space if there’s a problem? One other thing that I was going to mention here, Costco trades at over $1,000 per share. It breaks out to new all-time highs. It’s trading at an astronomical P-E ratio. And it hasn’t split its stock since Y2K. That’s the year 2000. But they still have the hot dog at $1.50. So that’s important. All right, well, we’re out of time. We’ve got one more day. We’ve got a full day of appointments today, a full day of appointments tomorrow. No rest for the wicked. And then we fly out of here tomorrow evening or Friday morning and begin thinking about where our next trip will be. In the interim, if you’d like to make an appointment with us about our money management, I talked about my five portfolios that I manage. We have five products at Gundersen Capital Management. GCG has a whole array of products, but Gundersen Capital provides five products, the five portfolios that I manage. If you’d like to talk to us about those portfolios, you can call us at 855-611-BEST. And if you’d like to try the four-week trial, somebody won a one-year subscription worth $1,080 at last night’s workshop. If you’d like to try four weeks for free, that is a $90 value, you can go to GundersenCapital.com. GundersenCapital.com. Have a great day, everybody.
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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.
