[SPEAKER_03]: This is Invest Talk, from KPP Financial, helping investors make sense of the markets one day at a time.

[SPEAKER_03]: And now, here are Justin Klein and Luke Guerrero.

[SPEAKER_05]: Good afternoon, fellow investors and welcome back to Invest Talk.

[SPEAKER_05]: This is our August 3rd, 2026 edition of Invest Talk.

[SPEAKER_05]: And we have a special.

[SPEAKER_05]: episode, not only is it the first episode of the month of August, can't believe it's already August, but I also have Luke with me today.

[SPEAKER_05]: We don't often do the shows together, but hey, it's a good way to ring in the month of August, right?

[SPEAKER_06]: Yeah, good way to start getting deeper into the second half of the year.

[SPEAKER_05]: Deeper, much deeper.

[SPEAKER_05]: We're now full.

[SPEAKER_05]: month through the second half of the year through the third quarter and a lot to unpack on this show.

[SPEAKER_05]: We have a lot going on geopolitically, economically, within sectors of the market, different asset classes.

[SPEAKER_05]: So a lot to dig into it this hour.

[SPEAKER_05]: And we're going to mainly do that by answering your finance and investment questions.

[SPEAKER_05]: We want to know what is on your mind.

[SPEAKER_05]: Aided at 99 chart is how you get through and ask your question on the show each and every week day.

[SPEAKER_05]: We're also going to bring you topics in our own perspectives.

[SPEAKER_05]: to help you make better decisions with your money, but ultimately, this hour is for you.

[SPEAKER_05]: So you drive the show and encourage you to pick up the phone and give us a call now and just a bit.

[SPEAKER_05]: We'll talk about today's Mark performance and run down the show topics.

[SPEAKER_05]: But first, let's tackle this, call a question now.

[SPEAKER_02]: Hey, guys, how's that a question?

[SPEAKER_02]: This is Chris and South Carolina.

[SPEAKER_02]: I own a small, very small position in Comcast.

[SPEAKER_02]: I believe it's in CSA.

[SPEAKER_02]: I'd like to see what you guys think about it.

[SPEAKER_02]: I'm a head of the game a little bit wanting to know maybe I should get in a little more or get out.

[SPEAKER_02]: Comcast.

[SPEAKER_02]: Thanks for your help.

[SPEAKER_02]: I'll be listening.

[SPEAKER_05]: We're looking at Comcast, CMCSA, one of the largest

[SPEAKER_05]: uh... cable providers internet providers in the in the country mark up about eighty five billion as a good yield look five point three percent didn't yield but it's uh... it's fairly low growth earnings back in twenty twenty two or three dollars and forty one cents this year so three dollars and fifty one cents and three sixty two next year so a slow growth business revenues will be on two percent next year and or this year and next year

[SPEAKER_06]: Is it worth the that yield, which I was all the time, especially for people that tend to focus on yield as a primary concern, I would say, unfortunately they're doing that, I don't think that's the best way to go about building portfolio, but what you see is okay that 5% yield sounds nice,

[SPEAKER_06]: But in the past three years it's been negative 14% in terms of price return negative 20 this year down 12.3 so although the yield is positive the total return has still been negative over that period of time now this is a name that we for some time have been watching it's been something that we wanted to add to one of our strategies but haven't really seen

[SPEAKER_06]: kind of the turnaround both from a fundamental perspective and from a momentum perspective as well that would indicate wanting to enter a full position.

[SPEAKER_05]: Yeah, I think it's still TBD that it looks like it is finding a bottom though.

[SPEAKER_05]: If you look at kind of the recent volatility, it's been it's been hanging around here around the mid-20s Mark for a while.

[SPEAKER_05]: Nice little another updated

[SPEAKER_05]: The biggest question is that debt.

[SPEAKER_05]: They do have a lot of debt about $80 billion in net debt on their balance sheet.

[SPEAKER_05]: But good cash flow, free cash flow about 17.8 billion.

[SPEAKER_05]: So the question is, can they continue to produce that level of cash flow and whittle down the amount of debt outstanding?

[SPEAKER_05]: Now, it has gone in the end of last year, Luke did $104 billion in long-term debt.

[SPEAKER_05]: now we're down to 90 and just half a year.

[SPEAKER_05]: So Dave, they've done a good job so far.

[SPEAKER_05]: We'll see if they could continue.

[SPEAKER_05]: I think from a valuation standpoint enterprise value, Eva's right around five is long as that cash flow stays around these levels or improves, I think they can get their balance sheet back and order continue to pay that dividend yield and maybe even or that dividend and maybe even raise their dividend.

[SPEAKER_05]: It was all slightly raised their dividend.

[SPEAKER_05]: Let's see this.

[SPEAKER_05]: Actually they continue to raise their dividend.

[SPEAKER_05]: So they feel pretty confident in this balance sheet that they've been raising their dividend pretty much every year for the past decade plus.

[SPEAKER_05]: So look, I actually think it's, I think it's good to rest versus war here.

[SPEAKER_06]: Yeah, I think there's a lot of complexity in this.

[SPEAKER_06]: You see, they're connectivity.

[SPEAKER_06]: Connectivity business is structurally losing subscribers.

[SPEAKER_06]: Peacock actually turned profitable.

[SPEAKER_06]: But the big question mark still remains of the next six months.

[SPEAKER_06]: What is that spin-off of NBC Universal going to look like?

[SPEAKER_06]: What assets are going to be gone?

[SPEAKER_06]: What assets are going to remain?

[SPEAKER_05]: Yeah, so a lot of risk, but that's reflected in that 5.5%

[SPEAKER_05]: Go with a great show on Friday.

[SPEAKER_05]: We looked into the story.

[SPEAKER_05]: Teriffs are here to stay.

[SPEAKER_05]: How permanent trade barriers are reshaping long term.

[SPEAKER_05]: Investing.

[SPEAKER_05]: That's what Luke talked about.

[SPEAKER_05]: We also answered a question on T.L.T.

[SPEAKER_05]: I'm assuming you're pretty negative on any of that.

[SPEAKER_05]: Luke, I didn't listen to that.

[SPEAKER_06]: Oh yeah.

[SPEAKER_06]: But if you want the full answer, you're going to have to listen.

[SPEAKER_05]: There you go.

[SPEAKER_05]: And if you have to miss it, go check it out.

[SPEAKER_05]: That's the way to get every show is the following best talk wherever you get your podcast.

[SPEAKER_05]: You probably shouldn't have answered, you should just love them, but a cliffhanger.

[SPEAKER_06]: Well, but I mean, any, any, I assume any of our listeners would not just want to be yes or no, but would want to understand why.

[SPEAKER_05]: There you go.

[SPEAKER_05]: Well, tune in to Friday's show.

[SPEAKER_05]: Now we've a lot of ground to cover on this Monday, over the next 45 minutes or so.

[SPEAKER_05]: Our main focus point is on GOP ones and not just about the impact on the health care industry.

[SPEAKER_05]: but what about logistics and supply chains, as well as healthcare?

[SPEAKER_05]: So we'll talk a little bit about that.

[SPEAKER_05]: In addition, we have other topics on the docket as well.

[SPEAKER_05]: What is levered ETFs, leveraged ETFs, especially these single stock, levered ETFs?

[SPEAKER_05]: Look, you know, there's more than 450 of these now in the market.

[SPEAKER_05]: That's pretty absurd.

[SPEAKER_05]: So we're gonna talk about that, and then,

[SPEAKER_05]: Regulators are starting to highlight the circular financing schemes that are going on within the AI space connected to private equity and private credit space, etc.

[SPEAKER_05]: So we're going to look at that story.

[SPEAKER_05]: But most of all it's going to be about you, your questions.

[SPEAKER_05]: We're going to tackle our voice bank.

[SPEAKER_05]: One question will be on Vivian Reinvestments in Texas, and then AstraZeneca AZN is the symbol.

[SPEAKER_05]: We also have questions that came in via the comment section on the Best Talk YouTube channel, as well, but most importantly, your live calls.

[SPEAKER_05]: But we're going to take a quick break.

[SPEAKER_05]: Please never be called any time.

[SPEAKER_05]: Leave your question on the Best Talk Voice Bank, or

[SPEAKER_05]: call.

[SPEAKER_05]: During our four to five specific time hour live and talk to us whether you're listening on our website and the best talk.com or possibly an aim to hold 20 in the Bay Area you can call right now at 8 a day 99 chart up next.

[SPEAKER_05]: We will comment on today's market activity.

[SPEAKER_03]: Total lifetime downloads for the Invest Talk podcast are now more than 63 million.

[SPEAKER_03]: So tell your friends when they have financial investment questions don't forget to call Invest Talk 888-99 chart.

[SPEAKER_05]: It did 99 chart.

[SPEAKER_05]: It did 992-4-2-7.

[SPEAKER_05]: It's how you get through an answer question on today's show.

[SPEAKER_05]: Look, we had a positive Monday and Markets as the pattern we continue to see, which is...

[SPEAKER_05]: escalation of potential conflicts in the Middle East and then by Sunday before the future's open, there's some sort of agreement.

[SPEAKER_05]: Now how real that agreement really is is certainly up in the air, but was that the driver?

[SPEAKER_05]: You think of the rally or was it the Yen turvention over the weekend?

[SPEAKER_06]: Yeah, I think a little bit of both.

[SPEAKER_06]: You saw oil down what five percent crude WTI was on 5% on the day.

[SPEAKER_06]: You saw yields were down to three basis points across the curve.

[SPEAKER_06]: And so naturally when that happens, you have a,

[SPEAKER_06]: risk on movies, especially coming off of that big momentum sell off that we saw last week.

[SPEAKER_06]: So I would say that coupled with a little bit of of the intervention continually positive results from those that are reporting really just floated the market in after a taco Sunday.

[SPEAKER_05]: Yeah, we saw Mary at report, they were a bit down beats.

[SPEAKER_05]: That was down, but ISM manufacturing increased to 55.6 in July from 53.3.

[SPEAKER_05]: I headed the 53.9 consensus, so that certainly surprised the upside.

[SPEAKER_05]: New orders were up to 56.7 from 56 employment.

[SPEAKER_05]: So I'm back in the expansion of 52.8.

[SPEAKER_05]: with prices paid little change.

[SPEAKER_05]: So, it kind of the opposite what you've seen for a while, which was sticky to accelerating inflation and moderating growth.

[SPEAKER_05]: This is at least on the manufacturing side, which granted it a small percentage of our economy that did bounce back.

[SPEAKER_05]: So on the economy side, that was a surprise, July's employment report,

[SPEAKER_05]: is expected to increase 82,000 coming up here on Friday after 57,000 in June.

[SPEAKER_05]: So labor market continues to hum along, which, once again, makes this wonder, why is the Fed unhold, right?

[SPEAKER_05]: But, you know, and frankly, if the Fed is behind the curve,

[SPEAKER_05]: They're not raising rates or really tightening policy in any way is certainly inflationary and that's an inflationary environment is tends to be good for asset prices and so you definitely had some nice move in the eye name, some weakness in health care but really across the board.

[SPEAKER_05]: some nice gains, gold finish down 0.4% the dollar was flat, despite the intervention.

[SPEAKER_05]: Silver was up 0.1% on the day, Bitcoin up 1.6 and WCI, as we said before on the geopolitical news down about 5% on the day.

[SPEAKER_05]: So pretty interesting start to the week, we'll see if we can sustain this bounce from that major market sell off last week.

[SPEAKER_05]: Now let's go, answer YouTube comment, question, look, I begotos, the accidentates I love the name.

[SPEAKER_05]: Great job as always, you mentioned industrials being a good sector, what are your thoughts on?

[SPEAKER_05]: I've heard of this name, Luke.

[SPEAKER_05]: Smaller?

[SPEAKER_05]: Yeah.

[SPEAKER_05]: Very small name.

[SPEAKER_05]: A $76 million market cap micro cap name.

[SPEAKER_05]: Euro Drive provides marine and ocean going transportation services.

[SPEAKER_05]: Would you call this industrial?

[SPEAKER_06]: I would call it industrial.

[SPEAKER_06]: Within the industrial services space looks like it's classified within cargo transportation and infrastructure specifically water transportation.

[SPEAKER_06]: So that certainly would classify as industrial in my book.

[SPEAKER_05]: So this has a good amount of debt, 75 million dollar markups, so it's a microcap name of a hundred million dollars at that and it's balance sheet.

[SPEAKER_05]: Problem is, if you look at return equity, it's right around flat.

[SPEAKER_05]: And if you go back over the long term, it's never really been that profitable swings.

[SPEAKER_05]: Looks like back and forth between negative and positive free cash flow.

[SPEAKER_05]: which isn't surprising.

[SPEAKER_05]: Shipping companies are providing a commodity.

[SPEAKER_05]: Just as when you get on an airplane, you don't care a whole lot about

[SPEAKER_05]: Maybe carry a little bit, but especially businesses, they don't care about how they get one product from one place to another.

[SPEAKER_05]: They just care that it happens.

[SPEAKER_05]: And so they just want the lowest price.

[SPEAKER_05]: And so these companies tend to be price takers.

[SPEAKER_05]: And they tend to go from making a lot of money, to making a little money, for example, 2021.

[SPEAKER_05]: And they made $11.88, then lost 302 in 2024, 250 last year, I'm going to swing back to $3.23 per profits this year.

[SPEAKER_05]: Is he late to the game?

[SPEAKER_05]: Is it sorry to price into the stock?

[SPEAKER_06]: You know, I think that's all good and well.

[SPEAKER_06]: When discussing the stock, I think the most important part here is you have a combination of this being a very, very small company with incredibly low liquidity.

[SPEAKER_06]: It averages fewer than 50,000 shares a day trading and they're fresh off of a 70% Q1 EPS miss.

[SPEAKER_06]: So, poor earnings coupled with thin liquidity means these things tend to move violently and it becomes a bit more difficult when you're trying to exit or if everybody's trying to exit because the price impact is tends to be dramatic.

[SPEAKER_05]: Yeah, and you see this back in history where it's just the last grill bowl market was in 2023, it went from $13 to 24 in less than a year and then in just a few months when all the way back down to nine jobs and now I'm back to 25.

[SPEAKER_05]: So this is gonna be a good long-term investment but as a short-term trade might be okay.

[SPEAKER_05]: There are 24-7 in the best talk of the listener line and never closes, so get your questions in now at 8 a.m., 9 a.m., chart.

[SPEAKER_03]: Invest talk.

[SPEAKER_03]: Tell your friends they can listen live, download the free podcast, or watch invest talk on our YouTube channel, and they can leave their finance and investment questions anytime on 888-99 chart.

[SPEAKER_05]: It's a part of a $16 trillion ETF industry.

[SPEAKER_05]: And the vast majority of these ETFs are fine.

[SPEAKER_05]: They're well, diversified, they're simple, straight forward.

[SPEAKER_05]: And the industry's in built on those type of funds for the last, what, going on 30 plus years.

[SPEAKER_05]: But there's some new funds that were,

[SPEAKER_05]: enabled by new rules set out in 2019 and 2020 by VSCC that made it easier for these fun providers to list new ETFs.

[SPEAKER_05]: And they are mainly for the most part, these are moving away from those bread and butter type strategies and portfolios to things that make it seem more like a casino.

[SPEAKER_05]: And that is the leveraged ETF universe.

[SPEAKER_05]: And as I said before, there are 450 ETF today that offer leverage either long or short on a single security for SpaceX alone, there are 10.

[SPEAKER_05]: How do you feel about that?

[SPEAKER_06]: Well, I love to know the difference between those 10 probably C6 and I mean in terms of two or three or four times.

[SPEAKER_06]: Yeah, I imagine it's degrees of leverage here, but I mean, it's interesting because when people think ETFs, people tend to think of passive investing, set it in forget it, diversification, tax efficiency,

[SPEAKER_06]: But I think the point here is you need to understand that ETF is a fund structure.

[SPEAKER_06]: It says absolutely nothing about how safe or diversified or even tax-efficient a fund is.

[SPEAKER_06]: Or even what it's invested in?

[SPEAKER_06]: Or even what it's invested in?

[SPEAKER_06]: And that's important to know because there's been close to 1,900 fund launches so far to see your many of them, a single stock.

[SPEAKER_06]: funds, meaning that this year specifically is not only on pace to break a record in a amount of ETFs launched, but in a amount of leverage ETFs launched.

[SPEAKER_06]: One in four new fund filings in America is a leveraged or inverse bet on a single security.

[SPEAKER_06]: That's crazy.

[SPEAKER_06]: So when you say that it becomes a bit more of a casino and a bit less against about investing, kind of proof in the pudding right there.

[SPEAKER_05]: Yeah, I, one of the big red flags I always see from the average person they asked me about investing in general, just kind of out in the wild when I tell them what I do or whatever is, what do you think of ETFs?

[SPEAKER_05]: So what do you think of mutual funds?

[SPEAKER_05]: And it's like, well, that's, that's very broad.

[SPEAKER_05]: It could mean fantastic.

[SPEAKER_05]: It could mean horrendous.

[SPEAKER_05]: This issue is that the average retail investor is drawn to the, not I would say, all of them.

[SPEAKER_05]: But a large subset, especially those that think that they can get rich, you have this, especially younger, individuals trying to chase returns, don't have any experience in markets, have an experience to bear a market,

[SPEAKER_05]: you know, that are, you know, a bit of nihilism, maybe built into them, they're just trying to find some economic opportunity anywhere and they're just chasing after these, uh, liberty tests because they see ones that go up.

[SPEAKER_05]: 40, 50, 60, 80, hot, 200% right?

[SPEAKER_05]: If you're levered long in video during the right up, many of those are up 1,000%.

[SPEAKER_05]: And they assume that that can happen again, and that's usually, usually doesn't.

[SPEAKER_05]: And so this is something that probably is a change.

[SPEAKER_05]: I think some good suggestions here are to make it.

[SPEAKER_05]: So you can only invest in these in the same way that these brokers force people to fill out paperwork for trading options.

[SPEAKER_05]: Because it's effective that what you're doing, right?

[SPEAKER_05]: When you're trading, when you're buying these, they're using options to create leverage anywhere, features of some sort of derivative product to create that leverage inside of it.

[SPEAKER_05]: So effectively, you're trading these options anyway.

[SPEAKER_05]: So I think those guardrails need to be set up, and I think two X-Max, anything three or more is just reckless.

[SPEAKER_06]: I think there's also one thing we're noting that's important as well as even if you're not investing in them yourself, the ubiquity of them affects you as well because you have these products that are structured in such a way that they have to trade daily in order to match the leverage return, meaning if the market's down a lot, they have to sell a lot at the close.

[SPEAKER_06]: They accentuate the moves of the entire market on both the upside and the downsides.

[SPEAKER_06]: So even if you're not invested in them, the fact that these exist are going to affect your portfolio.

[SPEAKER_05]: Yeah, shocking that the regulators are sleep on the market structure that exists today, pretty well.

[SPEAKER_05]: Let's put it back to the NSWC voice bank.

[SPEAKER_05]: You know the number it's 80 to 99 chart.

[SPEAKER_08]: Hey, this is Michael from Cleveland.

[SPEAKER_08]: Apple is down almost 11% in the last week.

[SPEAKER_08]: What do you think a good price point would be to buy Apple?

[SPEAKER_05]: Well, you know, from evaluation standpoint, Apple is

[SPEAKER_05]: Probably on the more expensive side.

[SPEAKER_05]: However, it's the most consistent business, so I think throughout the, the large cap tech space.

[SPEAKER_05]: Now it was over bought.

[SPEAKER_05]: If you go look at a weekly chart, it was pretty extended.

[SPEAKER_05]: It's come back in.

[SPEAKER_05]: The weekly 100-day moving averages around 250, that's the lows from earlier this year.

[SPEAKER_05]: That would be great support, but it doesn't even get there.

[SPEAKER_05]: I think of the 250 to 275 range would be great and she'd point for me.

[SPEAKER_05]: I don't know what your thoughts are, Luke.

[SPEAKER_06]: Yeah, I think it's going to probably continue to diverge with some of those other larger names.

[SPEAKER_06]: Those larger tech names specifically because it's exposure is fundamentally different.

[SPEAKER_06]: I think that's why it's been a little bit lower volatility.

[SPEAKER_06]: It hasn't really invested a bunch of money in the AI theme and frankly, from a return perspective.

[SPEAKER_06]: It's been to its benefit over the past couple years.

[SPEAKER_05]: Yeah, so I think it's probably a bit more downside in the air term, but I'd be fine with it.

[SPEAKER_05]: Now next in Bestock, we'll look into this question.

[SPEAKER_05]: Our prediction markets will legal the cows she lawsuit and what it means for investors.

[SPEAKER_05]: That story is for tomorrow, but for now, I'm Justin Klein with Luc Guerrera, and we are ready to take your calls now at 8.899 chart.

[SPEAKER_05]: at KPP Financial.

[SPEAKER_05]: Accountability means more than advice.

[SPEAKER_05]: It means we invest alongside you.

[SPEAKER_05]: Through our parallel investing approach, when we recommend an investment for clients, one or more KPP principles invest their own capital at the same time.

[SPEAKER_05]: Same day, same price, same percentage.

[SPEAKER_05]: If your portfolio moves, ours does too.

[SPEAKER_05]: That is alignment, that is transparency.

[SPEAKER_05]: That is the KPP difference.

[SPEAKER_05]: Visit investtalk.com to get your free portfolio review.

[SPEAKER_03]: We've got two for the price of one, Justin Klein and Luke Guerrero are here and they're taking your finance and investment questions now, 888-99 chart.

[SPEAKER_05]: Look our main focus point today is about GOP-1 drugs, the ripple effects.

[SPEAKER_05]: more than just healthcare, but supply chains and logistics in general.

[SPEAKER_05]: We know that the growth has been explosive, and what's interesting, or under the discussed, shall we say, is the fact that these weight loss drugs are temperature sensitive, which means that you can't just

[SPEAKER_05]: They'll manage health and give them 18-month expiration date and help people pick up and buy them.

[SPEAKER_05]: Now, these are typically biologics that need to be injected and therefore they need to stay cold and there's a chain of custody as well that needs to be followed.

[SPEAKER_05]: So not just in the production, but storage at the pharmacy.

[SPEAKER_05]: Packaging carry your transit last mile delivery and monitoring the temperature throughout so there's a lot to be done here that most people are not paying attention to so do you think this gives the Cold storage industry a shot in the arm something to send it

[SPEAKER_06]: Maybe, you know, I think that it's important for people not to conflate typical cold storage, REITs companies with the transportation chain for these products.

[SPEAKER_06]: You're not going to use frozen food warehouses, you know, for pharmaceutical products.

[SPEAKER_06]: And so effectively what this turns into

[SPEAKER_06]: The companies that are shipping them, so I think those freight companies like UPS like FedEx are going to have to do a whole lot of investment in refrigerated transport.

[SPEAKER_06]: And so as with anything else, you say, okay, well here's this investment theme, right?

[SPEAKER_06]: We talk about this AI all the time.

[SPEAKER_06]: What are kind of picks and shovel businesses?

[SPEAKER_06]: Obviously of the component makers and producers of, you know, what goes into the output of these drugs.

[SPEAKER_06]: And then you have these shipping parcel and freight networks.

[SPEAKER_06]: And then, so, you know, when it comes to the shipping itself related to Cold Storage, my initial thought is,

[SPEAKER_06]: Probably not that big of a makeup of revenue for these companies number one and number two FedEx and UPS have a lot of bigger problems to worry about that may drown out this type of theme So that's kind of my initial thought with this Yeah, because the ones that are really investing in this like you said are the shipping companies UPS announced a $48 million investment in temperature controlled facilities

[SPEAKER_05]: But actually, they're investing about $10 billion or, sorry, they're going to generate nearly $10 billion in revenue just this fiscal year.

[SPEAKER_05]: And they launched a life science organization focused on pharmaceutical and healthcare shipments.

[SPEAKER_05]: Think about that.

[SPEAKER_05]: That's a massive expansion.

[SPEAKER_05]: And it's not just the two big boys.

[SPEAKER_05]: It's also companies like CH, Robinson, DHL, they're investing about $2.25 billion.

[SPEAKER_05]: in health logistics because you're now in 2030.

[SPEAKER_05]: See a drops in said it's surpassed $1 billion in health care logistics revenue over the past year.

[SPEAKER_05]: So this is a booming business.

[SPEAKER_06]: Yeah, it is a booming business.

[SPEAKER_06]: I think that for the past couple years we've seen it be the dominant theme within the pharmaceutical industry if not health care.

[SPEAKER_06]: It's going to have massive effects

[SPEAKER_06]: less heavy population, right?

[SPEAKER_06]: It's going to affect things like junk food and things like overall medical costs and all sorts of things.

[SPEAKER_06]: Now for this theme specifically, I think there are a couple things that you have to be aware of that could essentially break this thesis.

[SPEAKER_06]: For example, what about those pills, right?

[SPEAKER_06]: If those are as successful, the oral GOP ones is the injections,

[SPEAKER_06]: Not only does that mean revenues might not materialize for these shipping companies, but these shipping companies spend a lot of money for a line of freight that may no longer be necessary.

[SPEAKER_06]: I think that's probably the biggest risk out there.

[SPEAKER_06]: You also have the fact that what happens when everybody ups capacity at the same time will then it becomes a bit commodified.

[SPEAKER_06]: Uh, so, you know, I would, I would hesitate to think that this is a certain line of gain, relative to what is, is, is, is it has been one of the biggest trends within health care?

[SPEAKER_05]: I think the biggest takeaway here for the average and best talk listener is to, when you think about a theme that's impacting a particular industry, most often the stocks that

[SPEAKER_05]: But most often, the better opportunities are those that are in companies who have are impacted by those trends that you wouldn't really think of, you know, second and third order effects.

[SPEAKER_05]: And so I think this is a good example of that and the way to frame that thinking, you look at FedEx rockets up from 160 all the way to 302 just in the past year or so.

[SPEAKER_05]: So that's how to big move.

[SPEAKER_05]: Now obviously, the only reason,

[SPEAKER_05]: certainly could be part of it, but what about healthcare packaging companies, for example, I'm actually looking at one right now, I can't say the name, but there are others out there that are doing well and seeing outside as growth.

[SPEAKER_05]: So I think this is where the better opportunities lie within the GLP one space is probably in the second and third order.

[SPEAKER_05]: impacts.

[SPEAKER_06]: Yeah, tend to agree.

[SPEAKER_06]: I would probably be more on the camp of those component makers and the packaging, because again, those are going to be agnostic of whether or not we eventually do GLP ones through pills or through the medication itself, or rather through the injectable itself, whereas obviously it could be a lot of wasted money on the shipping side if we move towards those non-affredgerated uses.

[SPEAKER_06]: very true.

[SPEAKER_05]: There we go.

[SPEAKER_05]: And now we're 24 hour voice make never closes so you can leave your finance and investment question anytime on 80 day 99 chart.

[SPEAKER_05]: Here comes one that came in earlier today.

[SPEAKER_00]: Hey and best talk.

[SPEAKER_00]: This is Steven from Orange California 12 year listener.

[SPEAKER_00]: Really appreciate what you and Justin do and I wish I could tell you how much you've helped me over the years.

[SPEAKER_00]: I just wanted to offer my strategy with dividend reinvestment and a Roth IRA, especially when it

[SPEAKER_00]: I know a lot of these are affected by the interest rates.

[SPEAKER_00]: So I've been adding shares over the years.

[SPEAKER_00]: And in some cases, I've held some of these for over 10 years.

[SPEAKER_00]: And the compounding effect of reinvesting the dividends and my shark count is just growing just by leaving it set to reinvest and occasionally purchase new shares when I have new money is just really incredible.

[SPEAKER_00]: And I really don't hear it mentioned all that often.

[SPEAKER_00]: I might hear it reinvesting the dividends, but I don't hear the actual math

[SPEAKER_00]: of, you know, really seeing that compounded effect from all term, and just as one quick example, one of my read, I started off with about $13 to $14 a month, and I just crossed over to $31.

[SPEAKER_00]: I barely even buy shares throughout the year, maybe three or four occasions, I'll add about five or six shares.

[SPEAKER_00]: But it's just amazing that, you know, the continual months months payments can really propel the growth on the amount that you earn.

[SPEAKER_00]: And I guess the second part

[SPEAKER_00]: if we're able to hold steady here and actually get interest rate cuts going into next year if you think that these type of stocks preferred stocks reads that kind of thing if they end up having a big rally once the rates come down.

[SPEAKER_00]: All right guys, I'll listen on the show.

[SPEAKER_00]: Thanks so much.

[SPEAKER_05]: Well, I think on the preferred side, yes, absolutely.

[SPEAKER_05]: Any preferred stocks preferred shares are some of the longest duration assets that are out there.

[SPEAKER_05]: And so if you go look at

[SPEAKER_05]: KFF, I think is the preferred, like largest preferred chair, ETF, and that one has been struggling for about a year or so from 32 down to about 30, but obviously that's not terrible, but certainly in a downtrend.

[SPEAKER_05]: But that would get a big boost if it rates do drop.

[SPEAKER_05]: Now, when it comes to REITS, I think it's gonna depend on what type of REIT you're talking about, but I do like the fact that you're consistently saving

[SPEAKER_05]: consistently reinvesting potentially in good sounds like good reads, good investments.

[SPEAKER_05]: And so that's just the power of compounding.

[SPEAKER_05]: He said you've been invested for a long period of time and you're seeing the results of that.

[SPEAKER_05]: But that's just to me the result of good savings habits and good total return that you're probably getting out of these consistently throughout the years.

[SPEAKER_05]: What is your take look?

[SPEAKER_06]: Yeah, well, I think that, you know, the caller's correct in the benefits of dividend reinvestment because in reality, when you set up this dividend reinvestment, what are you doing?

[SPEAKER_06]: You're just dollar cost averaging into your holdings.

[SPEAKER_06]: The one concern you need to have is maybe you become a bit overweight, but I've just specified considering what we just talked about as GLP ones, but you come a bit overweight in some of the holdings that you have, and so you do have to be careful about that.

[SPEAKER_06]: But anytime you are essentially forced saving, it tends to be beneficial because of those

[SPEAKER_05]: Uh, attack the tax impact, uh, I mean, you, you, you might, you're, you're probably a paid taxes throughout because you're collecting and even if you reinvest the dividends, you are still paying tax on that income.

[SPEAKER_05]: Okay.

[SPEAKER_05]: It doesn't vote.

[SPEAKER_05]: It doesn't prevent you from paying tax in that.

[SPEAKER_06]: He's in his Roth though.

[SPEAKER_05]: Oh, he said his Roth.

[SPEAKER_05]: Okay.

[SPEAKER_05]: It's again.

[SPEAKER_05]: He's fine.

[SPEAKER_05]: Okay.

[SPEAKER_05]: I think that's, that's not to worry about that.

[SPEAKER_05]: So you already paid the taxes.

[SPEAKER_05]: But then his Roth, no big deal.

[SPEAKER_05]: He's growing it nicely.

[SPEAKER_05]: So I let's put it back to another voicemail question

[SPEAKER_01]: I just did a look, long, long time listener to your show here from the Midwest.

[SPEAKER_01]: I have a question for you, gentlemen, please.

[SPEAKER_01]: I know the chipped stocks and a lot of things in that sector have been going down sharply and it's time to get out of those.

[SPEAKER_01]: I was wondering what you thought of this stock, however, because it's a little more diversified company and it covers grounds in many areas.

[SPEAKER_01]: and that company is Microsoft.

[SPEAKER_01]: It's been doing real well lately.

[SPEAKER_01]: I hope I have a missed a boat or anything on it, but it continues to go up, but has been going up for quite some time now.

[SPEAKER_01]: As a running of that, be a good one to put some money into and just leave for many, many years.

[SPEAKER_01]: Please tell me what you think of that company.

[SPEAKER_01]: Be waiting to listen on the show.

[SPEAKER_01]: Have a good day.

[SPEAKER_05]: All right, looking at Microsoft, the name that has been struggling for a number of months, really being weighed down by a downturn in software stocks in general, and this is Microsoft.

[SPEAKER_05]: You know, by the name, it's the software company.

[SPEAKER_05]: I mean, they do have some hardware stuff, but most, most of the revenue is coming from software.

[SPEAKER_05]: I had good earnings.

[SPEAKER_05]: And I think it had good earnings because didn't they pull back their cap expend on a I a little bit a little bit to the market certainly like that, but the end of their business is still very solid earnings will be $19.67 this year, $23.42 next year, both will be in all time high, just consistently

[SPEAKER_05]: Growing its business, reinvesting that cash flow, buying back shares, still cash flow positive, you know it's spending a lot of money.

[SPEAKER_05]: So what do you think of this balance loop?

[SPEAKER_06]: I like Microsoft.

[SPEAKER_06]: You know, I like Microsoft.

[SPEAKER_06]: I've always liked Microsoft.

[SPEAKER_06]: We, we hold it in one of our strategies for our clients.

[SPEAKER_06]: It had great earnings.

[SPEAKER_06]: I mean, is we're across 100 billion in any revenue for the first time?

[SPEAKER_06]: Is it Azure Azure?

[SPEAKER_06]: Whatever.

[SPEAKER_06]: I don't even know how to pronounce it.

[SPEAKER_06]: I just know what it is.

[SPEAKER_06]: Microsoft, yeah, three, six, about co pilot reached to go with 30 million seats.

[SPEAKER_06]: And I had a feeling for a while that we in some of these hyperscalers were being sold off.

[SPEAKER_06]: The Microsoft one didn't make as much sense to me.

[SPEAKER_06]: And we mentioned earlier when we were talking about Apple, one of the reasons why Apple's been doing a lot different compared to the Mac7 is because

[SPEAKER_06]: Well, one, they haven't been spending a lot of money.

[SPEAKER_06]: Like the rest of them, but two, they have a business that exists outside of all those money that is being spent around AI.

[SPEAKER_06]: And Microsoft does as well.

[SPEAKER_06]: They have a massive revenue stream, a fortress of a revenue stream from corporate clients.

[SPEAKER_06]: including us including us and probably everybody that runs a business out there because nobody wants to use you know whatever Apple's version of Excel is called I can't even go back Google Docs.

[SPEAKER_06]: Yeah or Google Docs I mean in terms of raw computing power for business purposes Microsoft's office we issue better and here's a thing that also gives them a benefit because when you are trying to monetize

[SPEAKER_06]: all of these products that you're developing with all your money, you have all these business customers already there.

[SPEAKER_06]: You don't have to have an assistant that is the best.

[SPEAKER_06]: It doesn't have to be.

[SPEAKER_06]: But if it is the easiest for people to use it and integrate within their businesses already, that's going to be a great benefit to you.

[SPEAKER_06]: That's exactly why you're seeing opening

[SPEAKER_06]: start to shift their sales model into getting their employees in businesses.

[SPEAKER_06]: It's kind of like the consultant sales model, where they implant employees directly in the businesses and help with their job functions.

[SPEAKER_06]: They're doing the exact same thing because they have to compete against another company, Microsoft, that already has a foothold where they do not.

[SPEAKER_05]: Yeah, and I think the story here,

[SPEAKER_05]: is that when it comes to AI, it's about context more than the model.

[SPEAKER_05]: A lot of people don't understand that.

[SPEAKER_05]: They think, oh, I need the best model.

[SPEAKER_05]: We'll for most things you're doing.

[SPEAKER_05]: You don't even need the most cutting edge model.

[SPEAKER_05]: What will be far outperform, the most cutting edge model is

[SPEAKER_05]: a decent model with great context and when talking about context, it's knowing what's going on with your business and what your emails are and everything that's going on, it's going to be able to read all that and understand it in context is supposed to a more advanced model that knows nothing really about who you are and it's going to try to guess a lot of variables and a lot of context and so that's why I agree with you Luke that

[SPEAKER_05]: There is a leg up here in the AI space.

[SPEAKER_05]: Also, my other leg up is for Microsoft is Satya.

[SPEAKER_05]: I think, you know, he's one of the most underrated executives in history.

[SPEAKER_06]: Can you put a price on great leadership?

[SPEAKER_05]: And I remember last year, he started a bucket some of the AI costs and what's going on with OpenAI.

[SPEAKER_05]: And I think, you know, he's not dogmatic about it.

[SPEAKER_05]: And I think that's very helpful.

[SPEAKER_06]: Well, his entire business doesn't depend on it being successful.

[SPEAKER_06]: They have so much money coming in from alternate from other sources.

[SPEAKER_05]: Exactly.

[SPEAKER_05]: So.

[SPEAKER_05]: We'd like Microsoft and we've continued on it.

[SPEAKER_05]: That was the best talk, I'm Justin Klein with Luke Grayer and we have one goal here each and every week they self you achieve your own version of financial freedom, and I work continues after this final break.

[SPEAKER_05]: Good question is in now at 8-899 chart.

[SPEAKER_03]: KPP Financial Special.

[SPEAKER_03]: One of them is parallel investing.

[SPEAKER_03]: This means they invest right alongside their clients.

[SPEAKER_03]: Here's how it works.

[SPEAKER_03]: When KPP Financial makes a trade for their clients, Justin Klein makes the same trade for himself and KPP.

[SPEAKER_03]: On the same day, at the same price, and same percentage.

[SPEAKER_03]: No front running, no special treatment.

[SPEAKER_03]: Learn more about Parallel Investing at Investalk.com.

[SPEAKER_07]: Just in Luke calling our regards to AstraZeneca, PLC, ticker symbol A, Z, and looking to get a little more exposure in the healthcare sector have a little bit of coverage on this particular ticker.

[SPEAKER_07]: you know over the last month has got unfairly beat up and then there's the recent news of the acquisition with Bristol.

[SPEAKER_07]: What do your thoughts?

[SPEAKER_07]: How do you feel about this?

[SPEAKER_07]: To double down.

[SPEAKER_07]: Thank you.

[SPEAKER_05]: Well, we, we own uh, AstraZeneca.

[SPEAKER_05]: We owned it for a while.

[SPEAKER_05]: It has pulled back recently.

[SPEAKER_05]: But the reason why is down today is because there's reports that they're looking to buy Bristol Myers, which is which would be a big swallow.

[SPEAKER_05]: Smaller name, but still 160-ish billion dollar market cap, Ash is in it because of about $260 billion market cap.

[SPEAKER_05]: So, you know, it's, I wouldn't say it's merger of equals, but it would be, once again, a big swallow.

[SPEAKER_05]: The market didn't really like it even though, if you looked at both balance sheets or are pretty solid, we haven't really dug too deep in this because the rumor was today.

[SPEAKER_05]: We'll talk about this probably throughout the week, but what's your initial,

[SPEAKER_05]: thoughts look on the pencil merger.

[SPEAKER_06]: I mean, it always matters, right?

[SPEAKER_06]: I think the market doesn't like it if a company is taking on a insane amount of debt.

[SPEAKER_06]: And when you have a $260 billion market cap company, trying to buy a hundred and would you say 160?

[SPEAKER_06]: Yep.

[SPEAKER_06]: likely to include a lot of tech, especially because they have 5 billion cash on their balance sheet.

[SPEAKER_05]: 130 billion.

[SPEAKER_05]: Excuse me.

[SPEAKER_05]: 130 billion.

[SPEAKER_05]: Either way.

[SPEAKER_06]: Right on the side.

[SPEAKER_06]: What is the structure here?

[SPEAKER_06]: Is it going to be some cash a lot of dead?

[SPEAKER_06]: Is it going to be stock, all stock, deal, it really does depend.

[SPEAKER_06]: Now if it becomes an all stock deal,

[SPEAKER_06]: Well, then you have the uncertainty of price really more related to the terms of the deal.

[SPEAKER_06]: I tend to be a bit hesitant in these merger situations just because there's so much that goes into the price outside of the fundamentals of the company itself.

[SPEAKER_06]: And I like the fundamentals of the company.

[SPEAKER_06]: I think that AstraZeneca has

[SPEAKER_06]: one of the fastest growing oncology segments, if not the fastest, I mean, 15% is what they're seeing.

[SPEAKER_06]: They're growing year over year.

[SPEAKER_06]: And we know that cancer is becoming more prevalent in people that are younger.

[SPEAKER_06]: And so a company that has a great pipeline like that,

[SPEAKER_06]: stands to benefit from the amount of treatments that are required unfortunately, you know, for people and it seems to be more and more.

[SPEAKER_06]: So as a company I like AstraZeneca and it's certainly that's why we hold it.

[SPEAKER_06]: One of the reasons why we hold it for our clients, but I definitely would have to dig in more to this merger before I get a real opinion there.

[SPEAKER_05]: Yeah, because the biggest issue is it's a rumor, so there are no details to really dig into.

[SPEAKER_05]: You just know the size of the company.

[SPEAKER_05]: Obviously, they'd have to pay a premium to the $130 billion right now, so maybe it's $150, maybe it's $160 billion something like that and it may not even be approved.

[SPEAKER_05]: But if you pull leave in the leadership and the quality of the business that AstraZeneca has,

[SPEAKER_05]: I think it's more of a buying opportunity than a reason to sell in the fortune.

[SPEAKER_05]: So, because it's the rat.

[SPEAKER_05]: That is weird.

[SPEAKER_05]: Anything to add?

[SPEAKER_05]: As you close?

[SPEAKER_05]: Sorry.

[SPEAKER_05]: Anything to add?

[SPEAKER_05]: Anything to add about AstraZeneca, right?

[SPEAKER_05]: AstraZeneca about leverage ETFs.

[SPEAKER_05]: about the market.

[SPEAKER_06]: Leverd ETFs?

[SPEAKER_06]: Oh, if you want to see how bad things can go, look at what happened in Korea, right?

[SPEAKER_06]: That was pretty much a direct result of people getting into Leverd ETFs and oftentimes.

[SPEAKER_06]: In fact, never.

[SPEAKER_06]: I can't think of a single time that a regulator.

[SPEAKER_06]: in the U.S. has said, oh, I wish I could go back and not do what we just did there.

[SPEAKER_06]: And that's pretty much what the Korean regulator said after you saw that huge just burrowing hole of the market over the past month, uh, really two months, three months.

[SPEAKER_06]: Yeah, because it was approved in May.

[SPEAKER_06]: So if you want to be even more scared than you are after hearing our conversation about Liberty T.F.'

[SPEAKER_06]: 's, read more into the Korea situation.

[SPEAKER_05]: Yeah, the market is super concentrated and it goes back to what I said earlier, the SEC is completely asleep at the wheel when it comes to the current market structure that we have with options trading with indexing all of that and you know there.

[SPEAKER_05]: me it's regulatory capture that's going on on that front but that's a story for another day but we are finished with today's show August 3rd, 2026.

[SPEAKER_05]: I'm just inclined with the Guerrero.

[SPEAKER_05]: They're minding a minderate of KPP Financial's Parallel Investing when we make a trade for our clients with the same trade for ourselves same day, same price, same percentage, no front running.

[SPEAKER_05]: No, special treatments.

[SPEAKER_05]: We invest a variety of long-sider clients which show the same risk and potential for success and you'll learn more by heading over to invest.com.

[SPEAKER_05]: Please tell your friends a family about a free podcast downloads which you can find anytime at iTunes or Spotify and be sure to rate and review on iTunes as well.

[SPEAKER_05]: In a pan thinking, shared success is the best talk.

[SPEAKER_05]: The name.

[SPEAKER_04]: Invest talk is a trademark of KPP financial, because of the nature of the interactive dialogue inherent in the format of this program.

[SPEAKER_04]: It's important for the listener to understand that not all comments made will apply to them.

[SPEAKER_04]: Specifically, nothing says she'll be taken to be investment advice.

[SPEAKER_04]: or shell statements on this program be considered and offered to buy or sell security.

[SPEAKER_04]: Because such advice is rendered solely on an individual basis, and at times will require that the investor review a perspective before investing.

[SPEAKER_04]: Invest talk is a copyrighted program of client, Pavles, and Peasley Financial, a registered investment advisor firm, which retains all rights.

[SPEAKER_04]: For more information regarding KPP's investment advisors,

[SPEAKER_04]: Thank you for listening and your comments and questions are welcome on our 24 hour listener line at 888-99 chart