[SPEAKER_04]: On radio, on YouTube, streaming live on investtalk.com, and for our podcast subscribers, this is Invest Talk.

[SPEAKER_04]: Independent Thinking, shared success.

[SPEAKER_04]: Invest talk is made possible by KPP Financial, a registered investment advisor firm, serving clients throughout the United States.

[SPEAKER_04]: Here is KPP Financial Chief Executive Officer, Financial Advisor Justin Klein.

[SPEAKER_01]: Good afternoon fellow investors and welcome back to Invest Talk.

[SPEAKER_01]: This is our Thursday July, thirty first, twenty twenty five edition and yeah, guess what?

[SPEAKER_01]: We're through the seventh month of the year.

[SPEAKER_01]: Some more than half of the year is gone and we are entering the latter summer months.

[SPEAKER_01]: Typically months that do bring more volatility.

[SPEAKER_01]: And we saw a bit of that today and one pack.

[SPEAKER_01]: kind of the the economic news and the market movements for today, but I always remind people to top the show that the show is about you.

[SPEAKER_01]: I'll bring topics to the table and hopefully that will help you become more educated on various topics and use those data points and perspectives for your own game.

[SPEAKER_01]: Whether that is finding opportunity or potentially avoiding risks and pitfalls.

[SPEAKER_01]: Whatever it is, this show is about protecting your money, growing your money, and making this good decisions with your money on a consistent basis.

[SPEAKER_01]: So that's what this hour is for.

[SPEAKER_01]: And our main job here is to answer your finance investment questions.

[SPEAKER_01]: So once again, I can bring you topics, but it's more about you.

[SPEAKER_01]: You are number one, OEs.

[SPEAKER_01]: So don't hesitate to reach out at eight to eight, nine, nine chart with your question.

[SPEAKER_01]: Now in just a bit, we'll talk about today's market performance and run down the show topics.

[SPEAKER_01]: But as usual, we'll tackle this first caller question now.

[SPEAKER_08]: Gentlemen, this is Brett Shres from California.

[SPEAKER_08]: There's a stocky guy talked about in the past.

[SPEAKER_08]: I went in that pretty good.

[SPEAKER_08]: And I was just checking and looking like it keeps gapping down.

[SPEAKER_08]: Just want to know what you're inside of what's happening there if it's consolidating lower.

[SPEAKER_08]: or if you guys are still in it for your with your clients, just want to see what you think of what you can tell me about Allison transmission, ALS and if it's still good for a long term, it's in my eye right now.

[SPEAKER_08]: Thank you.

[SPEAKER_01]: Here you go, looking at Allison transmissions.

[SPEAKER_01]: And yes, this is a name that we bought.

[SPEAKER_01]: I believe in the forties mid forties.

[SPEAKER_01]: It hit a fifty two week high around one seventeen, one twenty in that range.

[SPEAKER_01]: late last year and then started to struggle near the highs and we actually sold it definitely higher from the word is now now it's trading on ninety dollars per share.

[SPEAKER_01]: But it's in a downtrend and really what we saw was a shift in new truck demand.

[SPEAKER_01]: So what Allison does is they make this largest manufacturer of fully automatic transmission for commercial vehicles.

[SPEAKER_01]: So

[SPEAKER_01]: if commercial vehicles are in high demand, their businesses as well, and obviously vice versa.

[SPEAKER_01]: So we saw that shift in demand, and we decided to sell it.

[SPEAKER_01]: And so far it's been, it was good to get in.

[SPEAKER_01]: We're in the forties, sold it, I believe, high nineties.

[SPEAKER_01]: We're at a ninety dollar by ninety dollars in seven cents today.

[SPEAKER_01]: And it's trading, sorry, it's earnings this year, so it's been eight dollars in seventy five cents.

[SPEAKER_01]: But those analyst estimates are coming down last quarter revenues were down three percent.

[SPEAKER_01]: Profits were still up ten percent, but obviously revenue growth has now stalled and expected to go into negative territory continuously for the next four quarters.

[SPEAKER_01]: Not major to the five percent, but still you can see that slowing demand for new commercial vehicle orders has translated into as you'd expect slower sales for Allison.

[SPEAKER_01]: Now, still a great business.

[SPEAKER_01]: So, you know, from a long-term perspective, I still like it.

[SPEAKER_01]: We still like it.

[SPEAKER_01]: But we just found, at least in the medium term, better opportunities.

[SPEAKER_01]: And so we sold it, took our profits, and moved into something else.

[SPEAKER_01]: Certainly still name on the watch list.

[SPEAKER_01]: Because like I said, there's a lot of we still like about the business which turned out to be forty-eight percent.

[SPEAKER_01]: the minimal debt, good cash flow, et cetera.

[SPEAKER_01]: So if you have a long term time horizon, you don't have ready need for the money or are there ideas for any investment side?

[SPEAKER_01]: You know, I think I'm fine with it because I don't think this is going to take, I don't think it's going to go down to fifty dollars or anything like that.

[SPEAKER_01]: But it could be going through a more of a consolidation period, like you said.

[SPEAKER_01]: And over time, could move higher once demand for commercial vehicles recovers.

[SPEAKER_01]: But right now, we just see that better opportunities out there.

[SPEAKER_01]: And that's why we switched out of it.

[SPEAKER_01]: But long term still very good company.

[SPEAKER_01]: Plenty of room to grow.

[SPEAKER_01]: It's dividend.

[SPEAKER_01]: Nice balance sheet, like I said, and highly profitable.

[SPEAKER_01]: Thanks for the call.

[SPEAKER_01]: Now it's time for a meeting.

[SPEAKER_01]: We are going to get to everything that we have in the docket today.

[SPEAKER_01]: We have forty five minutes or so and our main focus point is about how to build and maintain a good credit score.

[SPEAKER_01]: So what impacts your credit score?

[SPEAKER_01]: Number one timely is the payments, low credit usage, et cetera, and we'll dig into that story in more detail.

[SPEAKER_01]: Also, Las Vegas Las Vegas is seeing major drop in tourism and what does that mean for the broader economy and companies that are highly connected to the Las Vegas economy?

[SPEAKER_01]: Also, not everyone's the same.

[SPEAKER_01]: And there's a lot of cookie cutter advice

[SPEAKER_01]: that is out there in the financial world, and I want to bring some context to that cookie cutter advice, because as I've always said, everyone starts at a different place.

[SPEAKER_01]: They financially, they have different goals financially, lifestyle wise, and everyone has different preferences.

[SPEAKER_01]: And so often times, cookie cutter questionnaires or rules of thumb,

[SPEAKER_01]: Because people to make bad decisions, that aren't really fit for them.

[SPEAKER_01]: So I'm going to dig into that story as well if we have time.

[SPEAKER_01]: And then if we have time, there's a crypto story I want to get to as well, which is really in the way that the crypto industry is evolving right now when it comes to the

[SPEAKER_01]: The Wall Streetization have the industry, so we'll dig into that.

[SPEAKER_01]: We also have voice bank questions around dependent care, flexible spending accounts, as well as

[SPEAKER_01]: PSCO, we have comments that came in via, or some questions that came in via the comment section over on the invest talk, YouTube channel.

[SPEAKER_01]: But of course, most importantly, are your live calls?

[SPEAKER_01]: A to eight, ninety nine chart, eight, nine, nine, two, four, two, seven eights.

[SPEAKER_01]: How you get through and answer a question on today's show.

[SPEAKER_01]: But we're going to head into our first break of the hour.

[SPEAKER_01]: And I'm here for you.

[SPEAKER_01]: I'm at your disposal.

[SPEAKER_01]: So whatever's on your mind, don't hesitate to reach out.

[SPEAKER_01]: No question is too simple or too complex.

[SPEAKER_01]: You set the agenda as usual here in a Vestock, it did it, and you made sure.

[SPEAKER_05]: Serious investors are certain to have finance and investment questions.

[SPEAKER_05]: Wanted to get your take on WW Granger.

[SPEAKER_05]: And the best person to ask your question in the right way is you.

[SPEAKER_05]: I was wondering from your standpoint, if they're at downside in buying fractional shares versus whole shares.

[SPEAKER_05]: And twenty four seven rain or shine, Justin Klein and Luke Rero stand ready to provide their unbiased answers.

[SPEAKER_01]: The issue, though, is really over the last decade or so.

[SPEAKER_01]: It's never maintained this level of profitability for a long period of time.

[SPEAKER_01]: Modernies are incredibly volatile, so when the going is good, take some profit.

[SPEAKER_05]: Your participation makes an investor talk better.

[SPEAKER_05]: My name is Mike.

[SPEAKER_05]: I'm calling in from Orange County, California.

[SPEAKER_05]: This is Lewis calling from Bolivia.

[SPEAKER_05]: Let's go talk to Chris and me.

[SPEAKER_05]: So don't forget to call, investor talk.

[SPEAKER_05]: First off, great show.

[SPEAKER_05]: I went one, you two.

[SPEAKER_05]: Eight, eight, eight, ninety nine chart.

[SPEAKER_05]: Justin Klein is here and he's ready with answers to your finance and investment questions call in vest talk eight eight eight ninety nine chart it in ninety nine chart it in ninety nine two four two seven eight take a through an answer question on today's shown a thick look at the market today we had

[SPEAKER_01]: earnings after I was yesterday on Google, not Google.

[SPEAKER_01]: Microsoft as well as meta.

[SPEAKER_01]: And those earnings announcements were good.

[SPEAKER_01]: and they had a nice gap higher.

[SPEAKER_01]: Now, there's actually some lessons here, at least in the short term when you look at these charts.

[SPEAKER_01]: Microsoft was up big, overbought going into this earnings announcement, and it gapped up the eight, ten percent or so after hours early, but actually faded throughout the day, it was only a four percent.

[SPEAKER_01]: Meta, that actually had been selling off a little bit and a bit of a small, small downtrend going into earnings.

[SPEAKER_01]: And that positive news allowed it to pop about a loving percent.

[SPEAKER_01]: So it shows you, you know, when you have certain earnings and how it moved into those earnings, certainly can impact that move on earnings day.

[SPEAKER_01]: Now for the broader market though, those are just two names.

[SPEAKER_01]: You actually had a pretty negative day.

[SPEAKER_01]: Even though if you look at the broader S&P and the NASDAQ, S&P was down, twenty three points, about third of one percent.

[SPEAKER_01]: NASDAQ closed down seven points by three basis points.

[SPEAKER_01]: So not a big move there, but the Dow down three quarters of one percent.

[SPEAKER_01]: And you had some pretty big sell-offs in health care, really.

[SPEAKER_01]: You had backster international.

[SPEAKER_01]: You're talking about a very big

[SPEAKER_01]: medical company, eleven billion dollar market cap, drug delivery administration, etc.

[SPEAKER_01]: And that was down twenty percent on the day.

[SPEAKER_01]: So that kind of dragged down the industry as a whole.

[SPEAKER_01]: And yet names like Lily down two point six, Mark down four point four.

[SPEAKER_01]: Dana heard down three and a half.

[SPEAKER_01]: So some definitely some big cell-offs in the healthcare space and even in tech in video down nearly one percent Apple after I was the did bounce a little bit under his announcement, but today down about seven tenths of one percent.

[SPEAKER_01]: Broadcom down three percent on the day and IBM service now into it.

[SPEAKER_01]: Accenture Texas Instruments.

[SPEAKER_01]: These are all names down pretty nicely, names like Qualcomm on earnings down seven percent on the day.

[SPEAKER_01]: Micro on down four percent on the day, Netflix down two.

[SPEAKER_01]: So you had a lot of red that underneath the surface, it was certainly a rough day for markets.

[SPEAKER_01]: But like I said, meta and Microsoft kind of covered a lot of that up Amazon up, one point, seven percent on the day, although after hours down a little bit as well.

[SPEAKER_01]: So we'll see how we go into tomorrow.

[SPEAKER_01]: Tesla done over three percent on the day.

[SPEAKER_01]: So that was kind of the market today.

[SPEAKER_01]: You know, we're

[SPEAKER_01]: We're going into earnings season.

[SPEAKER_01]: This was about forty percent the S&P earnings were this week.

[SPEAKER_01]: And certainly a lot of expectations built into these prices.

[SPEAKER_01]: And so that's why you're not.

[SPEAKER_01]: I don't think you're getting as good of reaction from good earnings announcements as you would expect.

[SPEAKER_01]: So that was the market Bitcoin was down point two percent on the day gold down point one percent gold holding up, especially with the stronger dollar.

[SPEAKER_01]: That's a that's of note as well.

[SPEAKER_01]: The dollar had been pretty weak.

[SPEAKER_01]: There's a lot of headlines about the dollar in the first half of the year down to ten eleven percent and pretty much the dollar has held and started to rise.

[SPEAKER_01]: and close the month of July positive for the first time this year.

[SPEAKER_01]: So this is starting at least a counter trend rally in the dollar, which does tighten liquidity a little bit.

[SPEAKER_01]: Obviously a Fed meeting yesterday where they were a bit more hawkish than expected.

[SPEAKER_01]: That's going to bring some strength into the dollar as well.

[SPEAKER_01]: And so you could see

[SPEAKER_01]: this being a catalyst for at least a modest market pollock.

[SPEAKER_01]: One of the big, under-appreciate catalysts of the rally off the April lows was how weak the dollar got in the number of the dollar is the denominator in these prices, right?

[SPEAKER_01]: When you're saying, okay, what's the price of these stocks?

[SPEAKER_01]: Whatever it is, it's the nominate in dollar.

[SPEAKER_01]: So if the dollar goes down, that's going to inflate the overall price of

[SPEAKER_01]: stocks in the market.

[SPEAKER_01]: And vice versa, the dollar rallies once again, that changes that dynamics.

[SPEAKER_01]: So I understand in the shorter term, the dollar moves can be very, very important to the way these stocks are priced and overall liquidity.

[SPEAKER_01]: So that was the market today.

[SPEAKER_01]: And we could get a fall through the downside tomorrow would not shock me.

[SPEAKER_01]: Now let's go take a live call.

[SPEAKER_01]: James, New York, looking at Qualcomm.

[SPEAKER_06]: Yeah, you kind of just answered my question through a certain degree in terms of the earnings release today and it falling so sharply.

[SPEAKER_06]: But do you think it's a good time to maybe enter or add it under value that will be at the global fair value at this point?

[SPEAKER_06]: But should I expect this fall further and then enter at a lower price?

[SPEAKER_01]: Well, Qualcomm is certainly not one of those names that is trading at a high valuation earnings this year.

[SPEAKER_01]: So it's been nearly twelve dollars per share.

[SPEAKER_01]: It's a hundred and forty six dollar stock revenues filled groups and percent earnings are up nineteen percent.

[SPEAKER_01]: You know, it was really about guidance, which was not as rosy as the market expected, but we didn't think it was that terrible to be honest with you.

[SPEAKER_01]: And if you look technically, it's still

[SPEAKER_01]: in an uptrend, you know, it's it would say overall if the meat over the on a weekly chart is more neutral, it's been kind of consolidating here.

[SPEAKER_01]: But

[SPEAKER_01]: You know, we still like Qualcomm.

[SPEAKER_01]: We think that they have the incredible intellectual property.

[SPEAKER_01]: And it's one of the better value names in the chip space right now.

[SPEAKER_01]: So we think it's more of a buying opportunity than something to sell.

[SPEAKER_01]: So yeah, I think it remains attractive at these prices.

[SPEAKER_06]: All right.

[SPEAKER_06]: Thank you.

[SPEAKER_01]: Thanks for the call.

[SPEAKER_01]: They're moving into a break still to come.

[SPEAKER_01]: My focus point.

[SPEAKER_01]: More answers to your questions.

[SPEAKER_01]: So I encourage you to call right now on the best stock at eight and eight.

[SPEAKER_01]: And you guys share.

[SPEAKER_04]: Invest Talk is ready, twenty-four-seven, for your finance and investment questions.

[SPEAKER_00]: I'm hoping you'll give me your cake on Oremat Technology, ORA.

[SPEAKER_08]: Is it a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest into better stocks?

[SPEAKER_04]: Don't forget to call, Invest Talk, eight-eight-eight, ninety-nine, chart.

[SPEAKER_05]: Twenty-twenty-five rolls on and you've got finance and investment questions for Justin Klein and Luke Guerrero.

[SPEAKER_05]: Call Invest Talk.

[SPEAKER_05]: Eight, eight, eight, ninety-nine chart.

[SPEAKER_01]: Alright, now my main focus point on Invest Talk today is about credit scores and

[SPEAKER_01]: We're in a time where the average consumer balance sheet is pretty strong.

[SPEAKER_01]: But it doesn't mean that you can't improve it and know how to take action to massage that number higher so that when you do need credit at some point, you can get it at the cheapest rate possible.

[SPEAKER_01]: And it's one of the shortest ways to

[SPEAKER_01]: Save thousands of dollars over the life of any loan is to make sure you're, you have the best credit score, you have the most options to borrow from, right?

[SPEAKER_01]: Cause you have the pristine credit score, everyone's gonna want to lend to you.

[SPEAKER_01]: And so you can go out there and go shopping instead of just finding anybody that will lend you money.

[SPEAKER_01]: So, well, there's no perfect formula.

[SPEAKER_01]: There's some guidelines that can help, especially depending on the person.

[SPEAKER_01]: The first is, here loans on time.

[SPEAKER_01]: And it's not just loans, but paying your utility bill on time, for example.

[SPEAKER_01]: An easy way to do this is automatic payments.

[SPEAKER_01]: I do it with all my credit cards, my utilities, et cetera.

[SPEAKER_01]: Try to put those in automatic payments.

[SPEAKER_01]: A, so that not paying any interest on credit cards, right?

[SPEAKER_01]: I might get my monthly spend, but also late fees.

[SPEAKER_01]: You definitely don't want that either.

[SPEAKER_01]: It's just a waste.

[SPEAKER_01]: So most credit scores consider repayment history as the number one factor for building strong credit.

[SPEAKER_01]: So don't miss those payments.

[SPEAKER_01]: Number two, don't get close to your credit limit.

[SPEAKER_01]: There's the age old adage, which is don't cancel credit cards, especially those that don't have any annual fee.

[SPEAKER_01]: You wanna keep those open as long as possible.

[SPEAKER_01]: I remember all, I have multiple credit cards that I just don't really use.

[SPEAKER_01]: As you keep open, because you want total, your total credit limit to be high, so that you're never hitting a level where the agencies, credit agencies, feel like you are stretched in.

[SPEAKER_01]: And I remember, I think I had to discover card, as long as younger, never use it.

[SPEAKER_01]: And they set me,

[SPEAKER_01]: I think saying, hey, if you don't spend money on this, you're going to shut down your credit card.

[SPEAKER_01]: Well, found that credit card?

[SPEAKER_01]: I need to activate another thing because I think it's only new when I activate it.

[SPEAKER_01]: I've bought one thing just to keep it open for probably another five, ten years.

[SPEAKER_01]: So I would do that if you can.

[SPEAKER_01]: Make sure once again you're paying off those balances and full to keep your inches crossed down, but don't just huddle all your spending into one credit card.

[SPEAKER_01]: Make sure that you have no more than thirty percent of your total credit limit spent in one particular month.

[SPEAKER_01]: Number three.

[SPEAKER_01]: have a long credit history.

[SPEAKER_01]: So the earlier you can start just getting credit, even if it's just a credit credit card, you don't use some sort of loan that shows that you're not gonna go crazy, you're not spending out of your means and you can't repay that loan or that credit card, just start it.

[SPEAKER_01]: And having a long credit history helps with that as well and shows that you're a good credit recipient for longer periods.

[SPEAKER_01]: And then if you need credit, make sure you don't just will you nearly apply, because it does hurt your credit in the short term, if lenders see you applying for a lot of loans, it starts to think that you are having financial setbacks and it could be broader issues.

[SPEAKER_01]: So trying out to run it too many times.

[SPEAKER_01]: And then I think this is even most important.

[SPEAKER_01]: And now I always do this once a year is, I fact check my credit report.

[SPEAKER_01]: Go on there.

[SPEAKER_01]: You can get a free credit report at any point.

[SPEAKER_01]: It's part of the regulation.

[SPEAKER_01]: And see if there's anything on there that isn't really you and dispute it.

[SPEAKER_01]: These things can go on a lot longer than you think.

[SPEAKER_01]: And so you should be doing that at least once a year.

[SPEAKER_01]: So hopefully those are some guidelines that can help you build and maintain a pristine credit rate.

[SPEAKER_01]: Every day we receive questions from the comment section over on the investor.

[SPEAKER_01]: YouTube channel.

[SPEAKER_01]: So here's when they came earlier.

[SPEAKER_01]: Coffee Ross says, well, your thoughts on IIPR.

[SPEAKER_01]: I think I answered this question.

[SPEAKER_01]: last week.

[SPEAKER_01]: But IPR is a cannabis rate.

[SPEAKER_01]: They own a lot of cannabis facilities.

[SPEAKER_01]: They've had some issues with defaults as of late, but those properties aren't really going anywhere.

[SPEAKER_01]: It's the matter of re-renegotiating the lease, leases, and making sure that the assets are fully utilized.

[SPEAKER_01]: And the lack of growth as of late because they're dealing with more

[SPEAKER_01]: making sure their current properties are fully least out.

[SPEAKER_01]: They've had many of the focus on that cash flow growth.

[SPEAKER_01]: But if you look at the actual numbers, their cash flow remains relatively robust, especially compared to its market cap, two or forty one million in free cash flow, and it's about a one point four billion dollar.

[SPEAKER_01]: market gaps.

[SPEAKER_01]: So you have about a a fifteen percent free cash flow yield there, which is very strong and that dividend yield, I think can be sustained for the near term, maybe cut a little bit, but it's pretty high right now.

[SPEAKER_01]: But understand, it's high risk.

[SPEAKER_01]: This is a high risk plate.

[SPEAKER_01]: And you have to treat as such.

[SPEAKER_01]: Don't think that you're getting fourteen percent with low risk.

[SPEAKER_01]: It's not.

[SPEAKER_01]: It is very high risk, but I do think it's a good risk versus reward.

[SPEAKER_01]: On the next investment stock, we look into this headline, retirement plans influx why more Americans are rethinking their exit timeline.

[SPEAKER_01]: Min economic uncertainty, growing number of Americans over fifty are reconsidering or even delaying retirement that'll be interesting one that we get to tomorrow, but for now, I'm Justin Klein and ready to take your calls right now on investment stock at eight and a day.

[SPEAKER_04]: Justin Klein is here and ready to tackle your questions.

[SPEAKER_04]: I've heard you say multiple times that you prefer shorter duration tertiary bonds.

[SPEAKER_04]: Can you explain to me why it is more advisable?

[SPEAKER_04]: Call in Vestock.

[SPEAKER_05]: Have you heard about the new Invest Talk store?

[SPEAKER_05]: That's right, you'll find great merch for the savvy investor.

[SPEAKER_05]: It's all there for you now at investtalkstore.com.

[SPEAKER_05]: And now Justin Cline is here and taking your finance and investment questions live.

[SPEAKER_05]: Call Invest Talk.

[SPEAKER_05]: A-eight-eight-nine chart.

[SPEAKER_10]: Hello, my name is Michael Cullingon from Maine and I had a question about a private company

[SPEAKER_10]: called Picasso.

[SPEAKER_10]: I guess they have a ticker-reserved PC, F-O.

[SPEAKER_10]: Looks like it's the founders of Zillow, forty-one percent near over-year growth offering shares at two ninety a share.

[SPEAKER_10]: And I was wondering if I'd get your opinion on that as far as being a private investment in the risks or rewards associated with that and your thoughts on the company.

[SPEAKER_10]: Look forward to hearing your answers.

[SPEAKER_10]: Long time listener.

[SPEAKER_10]: Appreciate it.

[SPEAKER_10]: Bye-bye.

[SPEAKER_01]: Well, I don't have much information on Picasso because it's private.

[SPEAKER_01]: So I'm not sure exactly what they do, what the numbers are, that price per share is expensive, or not, it would depend on, you know, how many shares outstanding, what their revenue is, et cetera.

[SPEAKER_01]: You know, these, you're gonna have to do your own research on that front.

[SPEAKER_01]: What I always say though with the private companies is you really have to bet on leadership.

[SPEAKER_01]: That's what this is all about.

[SPEAKER_01]: Now, just because they work for Zillow, doesn't automatically mean that they are great leaders.

[SPEAKER_01]: They could be resting on their laurels of what happened in Zillow.

[SPEAKER_01]: And frankly, if you look at Zillow throughout history, it hasn't been the best run company, despite its dominance in online real estate listings.

[SPEAKER_01]: You know, the cash flow has been flowed and, you know, it's, I would say it's terrible, but, you know, considering their dominance, it hasn't been a highly profitable business.

[SPEAKER_01]: So don't think that just because it was a big name, that that's what's going to automatically giving credence to the team that is from Zilla.

[SPEAKER_01]: Okay.

[SPEAKER_01]: So, you have to do on research.

[SPEAKER_01]: Like I said, if the private company, there's a lot of, I have one major private investment myself.

[SPEAKER_01]: And I did extensive due diligence on leadership team, the products, you know, the valuation, look at that, got in pretty early.

[SPEAKER_01]: Hopefully that's the case here.

[SPEAKER_01]: Usually the latter you get into the, the, the later stages of fundraising.

[SPEAKER_01]: The, I think the bigger risk there is for a valuation standpoint, the earlier you're getting in, it's more about an execution.

[SPEAKER_01]: Okay, so that kind of depends on where they're at.

[SPEAKER_01]: Right, and the later stages, maybe if they're talking about maybe going public, that they might have a symbol, that could mean they're in the later stages.

[SPEAKER_01]: And then it's about valuation.

[SPEAKER_01]: Okay, that their businesses are already moving, things are going well to a degree, and they're moving towards a public offering.

[SPEAKER_01]: That would be, okay, now, what is the valuation?

[SPEAKER_01]: Is that reasonable?

[SPEAKER_01]: Is that something that could be achieved in the public markets and then some?

[SPEAKER_01]: If it's early, like I said, then it's more about who's the leadership?

[SPEAKER_01]: Do they really have a good product or service that is needed?

[SPEAKER_01]: What is the proof of concepts?

[SPEAKER_01]: what's the market, the eventual profitability potential of the business, et cetera.

[SPEAKER_01]: So I wish I could give you more, I'm just giving you broad, strokes, broad generalities without knowing much about the business.

[SPEAKER_01]: Let's go take a live call, Richard from Santa Clarita, looking at HKHHY.

[SPEAKER_07]: Yeah, hi, Justin, that's Heinekin.

[SPEAKER_07]: And I know there's also

[SPEAKER_07]: Good idea now to, you know, add some international exposure to a port folio.

[SPEAKER_07]: And wondered about Heinrich and they're definitely, you know, they're very prevalent throughout the world.

[SPEAKER_07]: And wondered if this may be a good company to invest in at this price.

[SPEAKER_01]: because looking at Hyniken, this is a company that has not just the Hyniken brand, but many other as well.

[SPEAKER_01]: Amstell is a one that I'm noticing here, Dosekis, Fosters, Newcastle, Brownale.

[SPEAKER_01]: I'm just reading, they have a bunch of other ones, but strong boom, just looking at Nikate.

[SPEAKER_01]: These are, they have many names within the beer industry.

[SPEAKER_01]: And about a twelve billion dollar market cap,

[SPEAKER_01]: I think the issue here is our broader trends in the alcohol space.

[SPEAKER_01]: Alcohol demand is declining, especially with Gen Z. It's just not only from a health perspective, but also it's expensive.

[SPEAKER_01]: You know, locally I just know, you know, if you go off for a drink,

[SPEAKER_01]: Fifteen, twenty bucks, a lot of times.

[SPEAKER_01]: Even beers are ten, twelve bucks, right?

[SPEAKER_01]: And it's just expensive in the younger generation can't afford it.

[SPEAKER_01]: And so a lot of them are swearing off alcohol.

[SPEAKER_01]: And that's why a lot of the alcohol companies are struggling.

[SPEAKER_01]: I have to have one of my employees, his wife works in the industry.

[SPEAKER_01]: She's worked in the industry since college for nearly twenty years.

[SPEAKER_01]: And they're talking about, I think she works for the no record.

[SPEAKER_01]: And they're talking about the decline in demand for alcohol.

[SPEAKER_01]: And so... What was that?

[SPEAKER_01]: What was that?

[SPEAKER_07]: With that trend, that's, you know, domestically, we just say that in that trend is a worldwide trend as well.

[SPEAKER_01]: I think there are pockets of it.

[SPEAKER_01]: Obviously, it's not every country, but there are pockets of that worldwide.

[SPEAKER_01]: And so that's the issue.

[SPEAKER_01]: You know, you're right, this does have

[SPEAKER_01]: global exposure, that's the positive here.

[SPEAKER_01]: But it doesn't mean that it's not without its challenges.

[SPEAKER_01]: Let me look at its geographical exposure.

[SPEAKER_01]: Yes, thirteen point seven percent is the United States, five point six percent is Germany, four point two Brazil.

[SPEAKER_01]: So it is fairly diversified, that's a positive.

[SPEAKER_01]: But then if I look at the chart, it's also telling me that things are not going very well either.

[SPEAKER_01]: Let me take a look here.

[SPEAKER_01]: Just pull up a chart on one of my screens.

[SPEAKER_01]: Yeah, I mean, if I look at a three year chart, this peak back in the twenty twenty three at forty eight dollars per share, now we're thirty four.

[SPEAKER_01]: We've been in the downtrend.

[SPEAKER_01]: Really since actually twenty twenty one, we've picked up fifty one.

[SPEAKER_01]: So the it's in a broader downtrend.

[SPEAKER_01]: And let me look at its balance sheet here.

[SPEAKER_01]: It does have a lot of debt.

[SPEAKER_01]: Twenty billion dollars in long term debt.

[SPEAKER_01]: About thirty billion dollars in net debt.

[SPEAKER_01]: On, you know, two, one, eight billion dollars in free cash flow.

[SPEAKER_01]: Times interest earned is only seven times.

[SPEAKER_01]: That's pretty good but not amazing.

[SPEAKER_01]: Return equity is only four percent.

[SPEAKER_01]: So it's profitability has been relatively challenged.

[SPEAKER_01]: and down from its peak around ten percent back in twenty twenty one.

[SPEAKER_01]: So I just don't see a lot of debt.

[SPEAKER_01]: I see middleing profitability.

[SPEAKER_01]: I see middleing cash flow and I see industry trends that are just not in its favor.

[SPEAKER_01]: So if I'm looking for foreign exposure.

[SPEAKER_01]: I think you can do better than this.

[SPEAKER_01]: I don't think it's terrible, but there are too many headwinds and too many issues for me to get really excited about adding capital ahead again.

[SPEAKER_01]: Great.

[SPEAKER_01]: Okay.

[SPEAKER_07]: Well, thank you very much.

[SPEAKER_01]: No problem.

[SPEAKER_01]: Thanks for the call.

[SPEAKER_01]: Well, speaking of entertainment, alcohol, and traveling, shall we say?

[SPEAKER_01]: It's like, well, Vegas.

[SPEAKER_01]: Vegas is a problem.

[SPEAKER_01]: It's is struggling, mightily.

[SPEAKER_01]: Part of it's the broader economy, you know, lowering income consumers are struggling.

[SPEAKER_01]: Well, there's also fewer international travelers, especially Canadian travelers.

[SPEAKER_01]: Gaines used to make up about quarter to a third of customers in Las Vegas.

[SPEAKER_01]: Now Canadian travelers are very rare.

[SPEAKER_01]: And those working in the hospitality industry are starting to feel it, especially those that like tips for example.

[SPEAKER_01]: Now historically Vegas is very boomer bust.

[SPEAKER_01]: We know that.

[SPEAKER_01]: And it usually is the first to feel a rough economy.

[SPEAKER_01]: And so far, visits to Vegas in the first five months of the year down six and a half percent compared to the same period last year.

[SPEAKER_01]: Now, it doesn't sound terrible until you look at hotel occupancy.

[SPEAKER_01]: That fell fourteen point six percent in June.

[SPEAKER_01]: And the average revenue per available hotel room fell a nineteen point two percent.

[SPEAKER_01]: And there's no old saying, the economy sneezes, Vegas gets the flu.

[SPEAKER_01]: So once again, they feel it worse because it's not a lot of reasons to go to Vegas unless you have an extra, some extra coin in your pocket to gamble, spend a little bit on nice restaurants, going out to clubs, et cetera.

[SPEAKER_01]: And that area is just, this is hurting.

[SPEAKER_01]: And the costs, inflation has really impacted Vegas as well, big transportation costs.

[SPEAKER_01]: The billy to get things to the middle of the desert Nevada.

[SPEAKER_01]: It's not a vary from logistical perspective, not a very easy place to get things to.

[SPEAKER_01]: So the costs to for food and the like are just more expensive.

[SPEAKER_01]: They've been hit from inflation standpoint worse than the rest of the country.

[SPEAKER_01]: And the region has been adding jobs at the lower clip this year than the country as a whole.

[SPEAKER_01]: And like I said, the cost of just going the Vegas, I've gone up considerably.

[SPEAKER_01]: For example, it's cool restaurant.

[SPEAKER_01]: I recommend it's a cross from the Elijah fountain.

[SPEAKER_01]: Come on to me, Gabi.

[SPEAKER_01]: I love going there.

[SPEAKER_01]: Usually breakfast and just sit out on the strip.

[SPEAKER_01]: So it's always interesting.

[SPEAKER_01]: And they have good food.

[SPEAKER_01]: five years ago.

[SPEAKER_01]: Four years ago, four years ago.

[SPEAKER_01]: Burger cost sixteen ninety five.

[SPEAKER_01]: Now thirty ninety five.

[SPEAKER_01]: Thirty ninety five.

[SPEAKER_01]: So you can see just the dramatic impact that inflation has had on the city as a whole.

[SPEAKER_01]: And there are many

[SPEAKER_01]: Many casinos, there's the new, there's arts world, they're struggling, burning cash, fountain blue, they're struggling, burning cash.

[SPEAKER_01]: So, you know, there's just an over-capacity of hotel rooms, and now with foreign visitors drying up, there's just struggling.

[SPEAKER_01]: And I think this is the first major sign of the consumer

[SPEAKER_01]: tapping out.

[SPEAKER_01]: Then once again, it's the foreign market, the foreign travelers that's probably what's putting Vegas over the edge right now, but make sure that if you're looking at companies that have exposure to the Vegas market, I would be wary of them, at least in the near term.

[SPEAKER_01]: Those are the reasons to stop now.

[SPEAKER_01]: Let's keep things moving and play another fresh listener question from eight to eight, nine nine chart.

[SPEAKER_02]: Hi, Justin and Luke, Brent from what's content here.

[SPEAKER_02]: I had a question about a dependent flexible spending account through my employer.

[SPEAKER_02]: Can I continue to pay my child's daycare out of pockets and reimburse myself at the end of the year?

[SPEAKER_02]: Of course, saving all the receipts and whatnot?

[SPEAKER_02]: And can I take that money and fund my Roth IRA with that reimbursement money from the dependent flexible spending account?

[SPEAKER_02]: Just wondering,

[SPEAKER_02]: If I can kind of do a little four D chess and fund my Roth IRA through those means.

[SPEAKER_02]: Thank you very much for all you do and can't wait to hear the question on the podcast.

[SPEAKER_01]: Hmm, this is an interesting one.

[SPEAKER_01]: I don't hear much about the dependent care flexible spending account.

[SPEAKER_01]: And it's a pre-tax account that allows employees to set aside money to pay for eligible dependent care expenses.

[SPEAKER_01]: So talking about child care.

[SPEAKER_01]: And you can elects

[SPEAKER_01]: to contribute to this each year is deductible from your paycheck and taxes, reduces your taxable income.

[SPEAKER_01]: So it's kind of like putting money into an IRA.

[SPEAKER_01]: But once again, you only spend it on child care.

[SPEAKER_01]: for the pendants under the age of thirteen under the age of thirteen.

[SPEAKER_01]: You put five thousand dollars for single filers or couples filing jointly, twenty five hundred four married couples filing separately.

[SPEAKER_01]: Okay.

[SPEAKER_01]: There are contribution limits though based on your income can't earn more than a hundred fifty five thousand per year.

[SPEAKER_01]: Now,

[SPEAKER_01]: I think he were talking about taking that reimbursement.

[SPEAKER_01]: It's not really reimbursement, just money you can spend.

[SPEAKER_01]: It seems like on that to fund a Roth IRA.

[SPEAKER_01]: I mean, I think those are just kind of complete separate.

[SPEAKER_01]: Great, because there are income loans on the Roth IRA and

[SPEAKER_01]: Ideally, you do both money into this to spend on childcare and then you'd max out a Roth IRA.

[SPEAKER_01]: So I wouldn't think of them as somehow connected.

[SPEAKER_01]: They're just separate types of accounts.

[SPEAKER_01]: So I would probably max out both if you can't.

[SPEAKER_01]: Now let's go to another call and get to the support meal message now.

[SPEAKER_03]: I was looking to get some gold exposure.

[SPEAKER_03]: I wanted to see you guys could touch on a company.

[SPEAKER_03]: You guys talked about a previous episode.

[SPEAKER_03]: It's called Agnico, Eagle Minds, Limited, Tickers, AEM.

[SPEAKER_03]: I was just looking to see if this is something that I should be looking at or keep on my watch list.

[SPEAKER_03]: I'm looking forward to your answer on the show and thanks as always.

[SPEAKER_01]: All right, looking at Agnico Egole, and this is one of the largest gold miners out there, a sixty-two billion dollar market cap, earning supposed to be nearly seven dollars per share this year up sixty-four percent from the previous year, and then seven forty next year.

[SPEAKER_01]: This is the name that we've owned for a long time back when gold is in the doldrums and this is trading in the forty or fifty dollar range, not at one twenty-four.

[SPEAKER_01]: It continues to be one of our largest holdings within the gold mining space.

[SPEAKER_01]: And it's just an air consolidating.

[SPEAKER_01]: So it's filling up trend has a very clean balance sheet.

[SPEAKER_01]: Well, diversely, one of the best run gold miners out there.

[SPEAKER_01]: So that's why we own it.

[SPEAKER_01]: And yeah, if you are looking to gain exposure to the gold mining space in general, this is one of the best names you could choose.

[SPEAKER_01]: I was like Nico Eagle, A, E, M. That was the best thought.

[SPEAKER_01]: I'm Justin Klein.

[SPEAKER_01]: We have one goal here each every week.

[SPEAKER_01]: They need to help you achieve your own version of financial freedom.

[SPEAKER_01]: And I work continues after this final break.

[SPEAKER_01]: It's a good question.

[SPEAKER_01]: So now, at eight a day, I need nine charting.

[SPEAKER_05]: We learned about how the market works.

[SPEAKER_05]: The better your chances for success.

[SPEAKER_05]: So don't forget to call, in Vestark, eight, eight, nine, chart.

[SPEAKER_09]: Hi, this is man Florida.

[SPEAKER_09]: About a month ago, I made a call in regards to a

[SPEAKER_09]: and a targeted fund within it.

[SPEAKER_09]: And I really took that to heart and was looking at maybe changing the structure of that a little bit where I had more control where it's not shifting just the bonds as I get older.

[SPEAKER_09]: So I'm curious what your recommendations would be for a percentage allocation for someone who's thirty one years old and trying to be highly aggressive.

[SPEAKER_09]: Specifically, I'm curious what your thoughts are on percentage distribution within a large cap, mid-cap, small cap, and international equity.

[SPEAKER_09]: I've been really listening to what you guys have been talking about where small cats have historically performed, but after two thousand it really seems like large cats are dominating.

[SPEAKER_09]: So I'm kind of looking for some guidance on a percentage for each of these distributions going forward.

[SPEAKER_09]: Thank you very much for looking forward to listening on this podcast.

[SPEAKER_01]: All right, this is a great question.

[SPEAKER_01]: This is actually something that we do for clients all the time and we dig into the poor.

[SPEAKER_01]: So we manage for the clients for a one case.

[SPEAKER_01]: So if anyone needs help with a four, okay, four, three, B, four, five, seven, et cetera, we can help with that.

[SPEAKER_01]: But I'll give, and obviously we do that more intently understand all the funds that are available in the account, which ones are the best for particular wrist tolerance.

[SPEAKER_01]: But I'll give you some broad overviews right now.

[SPEAKER_01]: uh, being somebody, if you said around thirty so pretty pretty young and you know, you want to be aggressive.

[SPEAKER_01]: Uh, so, you know, targeted fund will put you in some bonds, and maybe don't want any bonds, and that's fine.

[SPEAKER_01]: So now you want to allocate to all equities, but how do you do that?

[SPEAKER_01]: What percentage and large cap, mid cap, small cap, and foreign?

[SPEAKER_01]: For a long term perspective, you're right, small caps tend out perform, but mid caps tend to have the best risk versus reward, meaning they're probably going to have the best

[SPEAKER_01]: Return over long periods of time, compared to the volatility that you're going to see.

[SPEAKER_01]: Small caps are very volatile.

[SPEAKER_01]: You may get a little better returns than smaller large cap over long periods of time, but you may not, as you've seen recently.

[SPEAKER_01]: But mid caps are kind of the middle ground.

[SPEAKER_01]: They're big enough to wear, obviously, a very strong large businesses consistent businesses, but there's still a lot of room to grow.

[SPEAKER_01]: And so that's why you tend to get

[SPEAKER_01]: better risk versus return.

[SPEAKER_01]: So I would lean towards a mid cap if you're younger.

[SPEAKER_01]: So probably something like a thirty forty thirty of spread out in that way from a large mid small perspective.

[SPEAKER_01]: But then you also want to sprinkle in

[SPEAKER_01]: Foreign, especially right now, you're starting to see the dollar's getting a little stronger, but I do think the dollar's generally in a downturn because we're a fiscal situation.

[SPEAKER_01]: And just money is starting to diversify out of the United States.

[SPEAKER_01]: And so I do think money will flow into those foreign markets.

[SPEAKER_01]: And so you want

[SPEAKER_01]: Same kind of breakdown, large, minute, small, but in foreign markets as well.

[SPEAKER_01]: Okay, so I think thirty percent should probably be in something like that.

[SPEAKER_01]: Now, once again, depends on your plan, depends on what funds are available.

[SPEAKER_01]: You know, if you have a, if you have a large cap,

[SPEAKER_01]: fun, that's really crushing it, and you really like the philosophy, et cetera.

[SPEAKER_01]: And it's aligned with the market trends, and maybe you overweight a little bit more large cat.

[SPEAKER_01]: So it does depend on your options within your Foro one K. But that's generally how I would think about allocating the equity side of a Foro one K, four, five, seven, four, three B, et cetera.

[SPEAKER_01]: Now, lastly, let's touch a bit on general bice night.

[SPEAKER_01]: This is a great segue, because

[SPEAKER_01]: It's very important to understand that everyone has their own bias towards investments, liquidity, volatility, et cetera.

[SPEAKER_01]: And there's a lot of, we even use it.

[SPEAKER_01]: It's called Nitrogen, it's on our website, it gives you a risk score.

[SPEAKER_01]: And it's great.

[SPEAKER_01]: It's a great starting point for understanding a client's substantial client's risk tolerance level.

[SPEAKER_01]: It's also very important to understand who that person is, what their preference is for.

[SPEAKER_01]: And a good example of this is there was a study and it looked at liquidity of investments.

[SPEAKER_01]: And you would think that everyone want more liquid investments, but the reality actually is a lot of people want less liquid investments.

[SPEAKER_01]: Why?

[SPEAKER_01]: Because it allows them to limit their ability to access those funds.

[SPEAKER_01]: They're aware of their own lack of self-control to go and raid those assets.

[SPEAKER_01]: And so they want something that is more locked up or there's a fee to take money out until a certain time.

[SPEAKER_01]: And so understand that while the general consensus you want liquid assets, that's not always the case for everybody.

[SPEAKER_01]: So that's why I think having a financial advisor when you get over a hundred thousand dollars asset plus that's when you start thinking about engaging with an advisor that can really figure out who what your preferences are, what your needs are, what your goals are, and recommend the right strategy for you.

[SPEAKER_01]: So I wanted to talk about the briefly enough because trying to get clients or anything like that, but more just understand that rules of thumb

[SPEAKER_01]: Don't apply to every single person.

[SPEAKER_01]: The average means that there's a lot of outliers.

[SPEAKER_01]: So never take the average.

[SPEAKER_01]: I think that's automatically going to apply to you.

[SPEAKER_01]: It depends on your personality, your goals and where you're coming from.

[SPEAKER_01]: Well, I'm just inclined to speak to another Invest Talk program.

[SPEAKER_01]: And today's show did make you think about your own financial fiction anyway.

[SPEAKER_01]: I do encourage you to head over to Invest Talk.com and schedule a call with myself for Luke or a free or fully review.

[SPEAKER_01]: And we thank you for listening to this podcast and read your show.

[SPEAKER_01]: We encourage you to tell your friends and family about our free podcast downloads as well.

[SPEAKER_01]: Be sure to get your anytime that iTunes, Spotify, or YouTube.

[SPEAKER_01]: Be sure you're reading review on iTunes as well.

[SPEAKER_01]: Independent thinking should success.

[SPEAKER_01]: That's the best talk.

[SPEAKER_01]: Good night.

[SPEAKER_04]: Invest talk is a trademark of KPP financial.

[SPEAKER_04]: Because of the nature of the interactive dialogue inherent in the format of this program, it's important for the listener to understand that not all comments made will apply to them.

[SPEAKER_04]: Specifically, nothing sets shall be taken to be investment advice or shell statements on this program be considered and offered to buy or sell security.

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