[SPEAKER_08]: This is Invest Talk, from KPP Financial, helping investors make sense of the markets one day at a time.

[SPEAKER_08]: Here's your host, Luke Guerrero.

[SPEAKER_02]: Good afternoon, fellow investors, and welcome to today's episode of Invest Talk.

[SPEAKER_02]: I'm your host, Luke Guerrero, and it's Thursday, August 20th, 2026.

[SPEAKER_02]: Now, we only have a couple of shows left in the week, and we have plenty to do today.

[SPEAKER_02]: Because each and every day, we come to Invest Talk and hopefully leave a better and more informed investor.

[SPEAKER_02]: In order to do that, we bring you some educational items, some actionable material.

[SPEAKER_02]: But most importantly, we answer your burning finance and investment questions.

[SPEAKER_02]: So, before we talk about today's market performance and run it down those show topics, let's tackle our first

[SPEAKER_05]: Justin Luke calling in regards to bwx technologies incorporated ticker symbol bwxt just reached a 52 week low looking for some nuclear exposure.

[SPEAKER_05]: How do you feel on picking some up on a 50% pick up

[SPEAKER_05]: If it does go lower, stop, thank you.

[SPEAKER_02]: B-W-X-T is B-W-X technologies.

[SPEAKER_02]: It's actually a name that we hold for clients in one of our strategies.

[SPEAKER_02]: It's a nuclear play.

[SPEAKER_02]: It is a nuclear technology company, and the reason why we like it is because it's actually the US government's sole source manufacturer for nuclear reactors, for naval subs, for aircraft carriers, and especially at a time in a heightened military spending, there's a huge backlog.

[SPEAKER_02]: an 80% increase in their backlog year over year, recently, and really when I say recently, I mean, past couple months, because they did reach an all-time high in April.

[SPEAKER_02]: So since April 17th, it's been on a bit of a downtrend year to date.

[SPEAKER_02]: It's down 949 over the past three months, it's down 2281.

[SPEAKER_02]: with the best of YouTube weeks.

[SPEAKER_02]: It's down for 35, but that's coming off of years.

[SPEAKER_02]: We're it's up 21, 32, 45, 55% respectively.

[SPEAKER_02]: And it had gotten to a point where the valuation was a bit elevated.

[SPEAKER_02]: And it's now come down to more reasonable territory compared to where it has been.

[SPEAKER_02]: It's trading about 32 times price to forward looking earnings right now.

[SPEAKER_02]: At one point it was trading

[SPEAKER_02]: It's most recent earnings report, which I believe was August 3rd, so not too long ago.

[SPEAKER_02]: Things look pretty good.

[SPEAKER_02]: Revenue was up 18% year over year, 9% of that was organic revenues.

[SPEAKER_02]: That was in line with estimates earning per share.

[SPEAKER_02]: It was up 5% year over year that actually beat by about 2.7% and free cash flow.

[SPEAKER_02]: Was it 115 million, EBITDA was up 7% year over year.

[SPEAKER_02]: And with the best five years it looks like they've had 10.7% an annualized revenue growth that's pretty solid.

[SPEAKER_02]: They announced they're selling their medical business.

[SPEAKER_02]: Often times when companies like this start to spin off, as part of their segments, and aren't part of their core business, I find that to be a bullish thing.

[SPEAKER_02]: It's essentially creating this portfolio simplification.

[SPEAKER_02]: And so to me, this has just really been a bit of re-rading with respect to valuation.

[SPEAKER_02]: I mean, that don't really see much negative here.

[SPEAKER_02]: Maybe you can say, okay, if the long-term EPS growth

[SPEAKER_02]: Let's see.

[SPEAKER_02]: Around 4.2% growth.

[SPEAKER_02]: I mean, they're still sitting at five year over year.

[SPEAKER_02]: Again, revenue up 18%, the leverage is a little bit weak.

[SPEAKER_02]: earnings for share was trailing revenue growth, meaning maybe in terms of cost, they're not able to realize better as good as margins as the market would like.

[SPEAKER_02]: But to me, you have a company that is critical towards the U.S. is nuclear arsenal with a huge backlog that is still growing rapidly.

[SPEAKER_02]: And so, 8.4 billion.

[SPEAKER_02]: in that record total backlog and is spinning off a division that I think is best left towards another company.

[SPEAKER_02]: So we're still bullish on this name.

[SPEAKER_02]: We like this name.

[SPEAKER_02]: It's a bit more reasonable in terms of valuation than where it has been over the past couple months.

[SPEAKER_02]: And we're going to start to find a bottom here.

[SPEAKER_02]: I frankly see this as yet another buying opportunity.

[SPEAKER_02]: That is BWXT.

[SPEAKER_02]: Thanks for the call.

[SPEAKER_02]: We had a great show for you yesterday.

[SPEAKER_02]: We looked into small caps and how they're starting to wake up and how in a lot of ways this rally that we've seen for better part of two years is finally maybe broadening.

[SPEAKER_02]: This leadership rotation historically is a good signal and most importantly, we talked about how you should think about sizing your exposure without feeling like you're just chasing returns.

[SPEAKER_02]: We also answered a listener question on Tigger R-O-L, which is Rollin's Inc.

[SPEAKER_02]: If you happen to miss yesterday's episode, I encourage you to check it out to get all those answers to those important finance and invested questions.

[SPEAKER_02]: And remember, the best way to never miss an episode of Invest Talk is to subscribe wherever you get your podcasts.

[SPEAKER_02]: And on to today, where we have, uh, I think another important story this time will be talking about the dollar's slide, and what it does to your foreign holdings.

[SPEAKER_02]: We have seen the dollar fall to a two month low against the euro.

[SPEAKER_02]: So we'll explain why currency moves quietly drive a large share of international funder turns.

[SPEAKER_02]: In order to hedge your unhedged exposure, it makes more sense moving forward.

[SPEAKER_02]: Also, we got a couple other stories, including one on how market real yields just went negative.

[SPEAKER_02]: So cash is losing even though it feels pretty safe right now.

[SPEAKER_02]: Talk a little bit about the SEC's proposal to potentially kill quarterly earnings reports.

[SPEAKER_02]: Should be a time at the end of the show.

[SPEAKER_02]: Talk a little bit about IRA, RMD's specifically inherited IRA, RMD's.

[SPEAKER_02]: And what not taking them can mean for you.

[SPEAKER_02]: We also have plenty of questions to answer, including VoiceBank calling ETFs, a broad question about how to analyze an ETF, and another on I shares core MSCI, a total international stock ETF for IXUS, and as always, some questions that came in from the comment section of the Invest Talk YouTube channel.

[SPEAKER_02]: All right, we are headed into break.

[SPEAKER_02]: It is a short break.

[SPEAKER_02]: I remind you, you can call anytime and leave your questions on the Investock Voice Bank.

[SPEAKER_02]: And if you're listening via our live stream right now, we're on AM 12, 20 in the Bay Area, give me a call now at 888-99 chart.

[SPEAKER_02]: When we come back, we'll talk about today's market activity.

[SPEAKER_08]: 24-7, Rainer Shine, there's always value in the Invest Talk podcast.

[SPEAKER_08]: 888-99, chart.

[SPEAKER_02]: bad day overall I would say in the market not necessarily bad right down days are buying opportunities but certainly negative across the board we saw the Dow down 131 the S&P down 86 the Nasdaq down 1% and small caps which led the way yesterday on the upside led the way on the downside today down 1.34%

[SPEAKER_02]: A lot of ways we saw a reversal of some of the trends we saw yesterday, memory was a bit better, semis, kind of all over the place, big tech, which had a good day yesterday.

[SPEAKER_02]: It was actually lower today.

[SPEAKER_02]: We saw staple retailers, lower, saw homebuilders, lower.

[SPEAKER_02]: Then we saw an app performance from energy and quantity chemicals.

[SPEAKER_02]: We saw a ag doing well today as well.

[SPEAKER_02]: So from a section perspective, a bit of a reversal from Wednesday trading.

[SPEAKER_02]: And then bonds, which there has been a lot of a focus on, well, bit weaker on the yield side.

[SPEAKER_02]: yields up two to six basis points, 30 year-old actually gave back more than half of the decline that we saw on Wednesday.

[SPEAKER_02]: And then metals do in pretty well, gold up 50 bips silver up 33.5% crude oil up about 2.9 on the day.

[SPEAKER_02]: It has just been a focus on rates.

[SPEAKER_02]: I mean, the long end, giving back much of Wednesday's decline, really not something that Scott Bessant wants to see, not something the Treasury wants to see, especially given the unexpected buyback boost.

[SPEAKER_02]: There is and continues to be a lot of skepticism about whether or not the Treasury will,

[SPEAKER_02]: even be able to, and frankly, I don't think they can, offset these ongoing structural pressures that are moving yields higher, and then you add on to that another day of high oil prices in the wake of the the president's overnight economic threats to Iran and diesel prices moving higher as well.

[SPEAKER_02]: You're having that inflationary pressure continue to be a problem, meaning that well, the Fed is unlikely to be able to cut rates or seeing rate expectations actually reprice a bit higher.

[SPEAKER_02]: Now in the data front, today saw another batch of softer results out of retail, we saw more tariff refund noise, and that's really played into some of the more recent concerns about this waning tailwind from earlier in the year where we had outsized tax refunds.

[SPEAKER_02]: We had initial claims come in a bit better than the consensus, though continuing claims was a bit higher than expected.

[SPEAKER_02]: We had August Philly fed manufacturing posting a surprise increase from the July print and actually having the headline at the highest level in more than five years.

[SPEAKER_02]: Looking ahead, flash PMIs for August cap off the week on Friday, Manufacturing PMI expected to hold steady at 53.9, while services PMI expected to fall to 53.9 from 54.6.

[SPEAKER_02]: All right, let's answer a question that came to a rather through our YouTube channel.

[SPEAKER_02]: And it says, can you give me your opinion of blue bird corporation that is thicker BLBD?

[SPEAKER_02]: Blue bird corporation is pause for dramatic effect while my screen loads.

[SPEAKER_02]: A $2.149 billion market camp company that manufacturers school buses looks like they're actually America's leading electric and alternative school bus manufacturer.

[SPEAKER_02]: And so they have a big business that creates not just EVs but propane, compressed natural gas as well as diesel platforms as well.

[SPEAKER_02]: Now, it is based in Georgia.

[SPEAKER_02]: It's had a bit of a rough three months, down about 6.08% over the past few months, but still about 11.06% over the past 72 weeks and 30.49% over the past year.

[SPEAKER_02]: They recently reported earnings on August 5th, revenue was up 29.9% year over year earnings per share, missed however.

[SPEAKER_02]: Even to margin is about 13.8% you saw EBITDA actually beating by about 8.5%.

[SPEAKER_02]: and guidance kind of hit towards the midpoint of where it was expected.

[SPEAKER_02]: They recently closed an acquisition of MicroBird, which is a Canadian mini bus unit.

[SPEAKER_02]: Now, I think that

[SPEAKER_02]: Oftentimes, when school districts are trying to cut down on costs, this is one way they can go about it.

[SPEAKER_02]: And that's what there's a reason why this company has record profitability, as well as what looks like a 900 plus EV bus backlog with a five year earnings per share, analyze growth rate of my reading.

[SPEAKER_02]: This quickly 53.9%.

[SPEAKER_02]: Ooh, that is, that is incredibly impressive.

[SPEAKER_02]: The same time you have margins expanding and a company trading in a 13.2 price to forward looking earnings, I would say that obviously a lot of these trends can reverse pretty quickly for small cap company like this.

[SPEAKER_02]: You can also understand that as rates move higher, things become a bit more expensive, it asymmetrically affects companies like this.

[SPEAKER_02]: where you have a federal grant program that an administration that is more keen to cut that may damp down some of the demand for these products, but either way, you can't deny the growth here.

[SPEAKER_02]: You know, this is honestly a company that I've looked at before, but this is one that's a bit interesting to me.

[SPEAKER_02]: I would love to look at a bit more here, but from what I can see, it looks like a pretty solid company, certainly on a solid,

[SPEAKER_02]: uh... footing with respect to its balance sheet as well so i'm interested that is blue bird corporation ticker blbd except called thanks for watching headed in jubrik we come back more answers to your finance and investment questions here on investor

[UNKNOWN]: Thank you.

[SPEAKER_08]: There are a few things that make KPP financial special, one of them is parallel investing.

[SPEAKER_08]: This means they invest right alongside their clients.

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[SPEAKER_08]: When KPP financial makes a trade for their clients, just in client makes the same trade for himself and KPP.

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[SPEAKER_02]: Now I want to talk about something that is probably going to resonate for a lot of people.

[SPEAKER_02]: Because a lot of investors are sitting in money market funds right now, thinking they're being smart, they're being conservative, they're being responsible.

[SPEAKER_02]: And the realities they're losing money.

[SPEAKER_02]: There was a recent report from my CI, and it showed the total money market fund assets rose 18.26 billion to $7.93 trillion dollars.

[SPEAKER_02]: Retail money fund assets alone.

[SPEAKER_02]: All right, 3.1 trillion.

[SPEAKER_02]: And Fed's Z, excuse me, was he one financial accounts?

[SPEAKER_02]: Show household money fund balances reach 5.21 trillion in Q1.

[SPEAKER_02]: That's roughly double where they sat in Q1 of 2022.

[SPEAKER_02]: Americans have absolutely piled into cash.

[SPEAKER_02]: The problem is, what you're earning on it.

[SPEAKER_02]: Money funds are yielding roughly three and a half right now.

[SPEAKER_02]: Down from over five and 2024 before the Fed started cutting and CPI's running it, three and a half.

[SPEAKER_02]: 3.8 in April, 4.2 in May, even with the latest readings moderating slightly, the real term on money market funds has turned negative.

[SPEAKER_02]: Your 3.5 yield minus 3.5 to 4% inflation and best is zero.

[SPEAKER_02]: That means it's 7.93 trillion, sitting in money market funds is an aggregate just losing purchasing power every single day.

[SPEAKER_02]: And the investors holding it don't feel like they're losing because the nominal balance keeps going up.

[SPEAKER_02]: That's the trap.

[SPEAKER_02]: The number on your statement is higher than it was last month.

[SPEAKER_02]: But the groceries, the gas, the insurance premiums, the health care costs, they're all rising faster than that number.

[SPEAKER_02]: This is what we go anchoring by us.

[SPEAKER_02]: Investors who part cash when money funds yielded 5.3 are still sitting there at 3.5 because well, 3.5, still sounds pretty good.

[SPEAKER_02]: It's still positive their mental benchmark is the zero interest world before the pandemic.

[SPEAKER_02]: when savings accounts paid nothing.

[SPEAKER_02]: Relative to that, three and a half is great, but relative to inflation, which is the only comparison that matters for purchasing power it's underwater.

[SPEAKER_02]: The data on small cities actually confirms how rates sensitive these flows are.

[SPEAKER_02]: CD's under 100,000 ticked up to 1.02 trillion in April after six straight months of declines.

[SPEAKER_02]: They've fallen 172 billion since the cutting cycle began.

[SPEAKER_02]: Small savers chase even modest yield changes in either direction, which tells you.

[SPEAKER_02]: The allocation is not strategic.

[SPEAKER_02]: It's reflexive.

[SPEAKER_02]: Whatever paid the most last month gets the money.

[SPEAKER_02]: That's not planning.

[SPEAKER_02]: That's being stuck in the same strategy.

[SPEAKER_02]: Now I want to be clear, cash has a job in a portfolio, liquidity, optionality, the job is having dry power to deploy.

[SPEAKER_02]: When opportunities arise or to cover expenses without selling investments at the wrong time, those are legitimate valuable functions, but the job is not returned.

[SPEAKER_02]: And the mistake I see investors treating money markets as a return generating allocation instead of a parking lot.

[SPEAKER_02]: If 30% of your portfolio is sitting in money funds, earning 3.5, while inflation is 4, you're not being conservative, you're guaranteeing a loss of purchasing power, you're just doing it slowly enough, that it doesn't feel like a loss.

[SPEAKER_02]: All right, why don't we pivot back to the Invest Talk of Voice Bank?

[SPEAKER_02]: You know the number 888, 99 chart.

[SPEAKER_06]: Hey Luke and Justin, I'm just calling regarding owning physical silver versus owning some of the minors.

[SPEAKER_06]: Right now, I'm in SIVR.

[SPEAKER_06]: and I wanted to get your opinion on AG, which is first majestic silver.

[SPEAKER_06]: I just want to know kind of the reason why you guys prefer to hold the miners versus like the physical metal itself.

[SPEAKER_06]: So just let me know what you think of AG.

[SPEAKER_06]: Thank you.

[SPEAKER_02]: Yeah, so you know, I don't have any particular problem with holding the physical silver.

[SPEAKER_02]: I will say, because of how thinly traded silver markets are relative to gold markets, there are a lot more open to manipulation from hedgers, from liquidity providers, and so holding physical silver doesn't necessarily give you a representative slice of what the

[SPEAKER_02]: uh, uh, true in store, you know, buying something of silver might do in the same way that gold does because of liquidity and spreads and all those things, but in the same way that I answered the question, yes, today when we're talking about gold, the real difference here is what kind of exposure you want.

[SPEAKER_02]: If you want exposure to the spot price of silver, silver ETFs are a good way to do it.

[SPEAKER_02]: The benefit of that is you don't have to deal with individual company risks, specific risks, if you've some credit risks of businesses, minds collapsing any of these things.

[SPEAKER_02]: You just get exposure to the metal.

[SPEAKER_02]: If you want to have with high conviction leverage to exposure to that metal, then you want to invest in the businesses that silver is the product that they're mining, the product that they're selling.

[SPEAKER_02]: But understand the inherent risks of that.

[SPEAKER_02]: It's already an incredibly volatile asset class, owning a silver miner that is majority silver miner would lead you to have an even more volatile experience.

[SPEAKER_02]: Thanks for the call.

[SPEAKER_02]: On the next invest talk, we'll look into this story.

[SPEAKER_02]: Financial innovation is now a fed problem.

[SPEAKER_02]: We'll break down what tokenized money and instant payments actually change about the plumbing of the financial system and what investors should and should not read into.

[SPEAKER_02]: That's tomorrow.

[SPEAKER_02]: Fernando Guerrero ready to take your calls any time at 888-99 chart.

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[SPEAKER_07]: It means we invest alongside you, through our parallel investing approach.

[SPEAKER_07]: When we recommend an investment for clients, one or more KPP principles invest their own capital at the same time.

[SPEAKER_07]: Same day, same price, same percentage.

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[SPEAKER_02]: So the Euro hit a three month high yesterday after the US Treasury decided to announce it was doubling its bond by back limits and effectively send the signal that Washington is prioritizing lower long-term yields even if it means weakening the dollar.

[SPEAKER_02]: The dollar index has been falling for weeks now, it hit a four-year low, back in January before the war temporarily reversed the slide, but now it's sliding again, and I think what most people don't realize is if you own an international fund, the currency move you just ignored, probably matters more to your returns than the stock picking your fund managers doing.

[SPEAKER_02]: And this is one of those concepts that I think sounds a bit technical, but is actually really simple.

[SPEAKER_02]: Once you see it, so when you buy an international equity fund, your dollars get converted into euros and a yen into pounds into Swiss frog and whatever currencies required in order to buy things.

[SPEAKER_02]: When those stocks paid dividends or appreciate and value, the gains are in those foreign currencies, then what the fund calculates its nav and dollars, those foreign currency gains get converted back into dollars at the current exchange rate.

[SPEAKER_02]: So, with the dollar weakens between when you bought and when you sell, you get a tailwind.

[SPEAKER_02]: New euros and yen and pounds are worth more in dollar terms.

[SPEAKER_02]: The dollar strengthens you get a headwind, same stock performance, different returns.

[SPEAKER_02]: For an unhaged international equity fund, currency moves can drive 30 to 50% of total return variability and in some years, the currency effect is actually bigger than the effect of the equity returns themselves.

[SPEAKER_02]: And so it's important because right now the dollar is weakening.

[SPEAKER_02]: The euro has climbed from about 13 in late June to about 116 in the ECBs expected to high grades in September.

[SPEAKER_02]: The market is pricing an 84% probability of that.

[SPEAKER_02]: The Fed by Contrast is expected to hold that widening rate differential, Europe hiking, the US standing still, favors the euro, and the Treasury buyback announcement this week added fuel by signaling the US is willing to increase dollar supply to push down long-term yields.

[SPEAKER_02]: So if you're in an unhead unheached international fund, which is the default for most retail products, the dollar slide is quietly boosting your recharge right now.

[SPEAKER_02]: European stocks denominated in euros are converting into more dollars.

[SPEAKER_02]: Japanese stocks from yen into more dollars.

[SPEAKER_02]: And then if you're an EM emerging markets, they tend to appreciate when the dollar

[SPEAKER_02]: So given all this, hedge are unhatched.

[SPEAKER_02]: Well, if you're hedged, you use currency derivatives to neutralize the exchange rate effect itself.

[SPEAKER_02]: You get the pure local micro-return without any currency overlay.

[SPEAKER_02]: If you look all the way back to the dawn of time, I'm joking back to like 22 when the dollar surged to 20 year high as against the euro, hedged in a national fund's dramatically outperformed.

[SPEAKER_02]: They're unhinged peace, because that dollar strength was erasing the equity returns.

[SPEAKER_02]: This year the opposite is playing out, unhinged is beating hedged, and so here's really how you got to think about it.

[SPEAKER_02]: If you believe,

[SPEAKER_02]: The dollar has further to fall, and the structural case for dollar weakness, I think is strong, given the massive deficits we have, the insane debt GDP rate issue, the treasury, actively pursuing lower long-term rates, de-dollarization trend we've been talking about for so long, then unhanged international exposure makes sense.

[SPEAKER_02]: You're getting the equity return, plus the currency appreciation.

[SPEAKER_02]: Conversely,

[SPEAKER_02]: Uh, if you think that the dollar is moving stronger from here, it's going to stabilize.

[SPEAKER_02]: Maybe the war escalates, or the Fed Hikes, maybe the safe haven bid returns, and hedging protects you from giving back the currency gains.

[SPEAKER_02]: Honestly,

[SPEAKER_02]: Most of which are about to hold a mix.

[SPEAKER_02]: Your core allocation for your portfolio that's, you know, permanently allocated internationally that 20 to 30% we've been talking about for quite some time.

[SPEAKER_02]: It's probably be unhatched because over multi-decade horizons, currency effects tend to wash out and the hedging costs eat into returns.

[SPEAKER_02]: We shouldn't do his Ignore Currency in turn.

[SPEAKER_02]: When you see your international fund up 8 this quarter, and think, great stockpicking.

[SPEAKER_02]: Understand that maybe three of those percentage points came from the dollar falling, not from the fund manager's skill, and then the dollar eventually bounces and it will, because currencies mean avert, well those three points come back the other way.

[SPEAKER_02]: The dollar slide is not just an FX story, it's a portfolio story that matters to you.

[SPEAKER_02]: And right now, it's working in your favorite of the international exposure, enjoy it, but understand what's driving it, because the same forces that's giving you a tailwind today could be giving you a headwind tomorrow.

[SPEAKER_02]: All right, let's...

[SPEAKER_02]: answer a live call.

[SPEAKER_02]: It's like you got Jeff from Kansas on the line.

[SPEAKER_02]: You got a question about and you eat.

[SPEAKER_02]: Oh, did you look into buying?

[SPEAKER_04]: I'm thinking about picking some up.

[SPEAKER_04]: It looks like it's dropped over the last few days probably because of the tariff announcements trying to think and decide whether or not you know wait till it hits a bottom and then pick it up.

[SPEAKER_04]: it is that a good strategy, how long do you think I should be waiting as a specific target price?

[SPEAKER_02]: Sure.

[SPEAKER_02]: Let's take a look at new core corporation that is NUE.

[SPEAKER_02]: It is America's largest steel producer and recycling.

[SPEAKER_02]: So they operate steel mills down, create downstream steel products.

[SPEAKER_02]: They

[SPEAKER_02]: So they're involved all throughout North America, not just in the United States, in selling these steel products.

[SPEAKER_02]: Geographically speaking, 100% of the revenue comes from North America.

[SPEAKER_02]: And they've been doing real well over the past year or so.

[SPEAKER_02]: I mean, a revenue is up on an annual basis about 10% year over year.

[SPEAKER_02]: Stocks up 6762 over the past 52 weeks, net sales in their most recent quarter,

[SPEAKER_02]: was up 23% year over year, that beat estimates, EBITDA hit $2 billion.

[SPEAKER_02]: And they saw record Q2 steel shipments at 91% utilization.

[SPEAKER_02]: So the higher average selling prices are really helping this company.

[SPEAKER_02]: And in fact, off of earnings, which were at the end of July, management said that they're expecting higher consolidated earnings in Q3 as well.

[SPEAKER_02]: One thing that you might see as a flag, which I'm seeing here, has been a lot of net selling from insiders.

[SPEAKER_02]: But I mean, this thing is reaching all time high here back when it was trading just under $300 a share a mere days ago.

[SPEAKER_02]: You know, it was a healthy pullback, 3.32%, but,

[SPEAKER_02]: You know, from a valuation perspective, I mean, this company is still pretty much near the average of words been over the past five years, not too expensive, not too cheap.

[SPEAKER_02]: The momentum trend is certainly still strong and positive here.

[SPEAKER_02]: It's crushing, it's industry, performing by about 13%.

[SPEAKER_02]: you know, I like this company.

[SPEAKER_02]: It's got very little debt.

[SPEAKER_02]: It's got only 7 billion in debt on a $56 billion market cap company with projected 3.35 billion in free cash flow.

[SPEAKER_02]: I think even at these multiples it appears to be a pretty solid deal because in a lot of ways this is really America's best run a steel maker on the back of the best performance.

[SPEAKER_02]: It's had for

[SPEAKER_02]: Now, I like it, I think a pullback here is probably a bit healthy, but given its valuation, I don't know how much more it has to run down should this growth keep up.

[SPEAKER_02]: So I'm a fan of it, that is new core corporation, corporation, kicker, and UE.

[SPEAKER_02]: Thanks to the call.

[SPEAKER_02]: All right, from time to time, we get questions on our invest talk, or from HubSpot, that is.

[SPEAKER_02]: Upspot is our questions from our website, invest.com.

[SPEAKER_02]: So here's one that came in actually just today.

[SPEAKER_02]: And it is on ticker ZTS.

[SPEAKER_02]: It says, so what does Inc?

[SPEAKER_02]: Is aggressively buying back shares at current prices?

[SPEAKER_02]: I would appreciate your insight.

[SPEAKER_02]: All right.

[SPEAKER_02]: This company has, in fact, been buying back shares in a pretty aggressive way recently.

[SPEAKER_02]: It is the world's largest animal health company, typed in the wrong ticker there.

[SPEAKER_02]: Yeah, worlds that largest animal health company, they have not been doing well in terms of their performance over the past three years from a pricing perspective.

[SPEAKER_02]: You are seeing

[SPEAKER_02]: revenue falling year over year you are seeing earnings per share remaining steady return on equity is growing margins are are steady as well.

[SPEAKER_02]: It is a 31 billion dollar market cap company with only about nine billion in debts and nothing too crazy there from a balance sheet perspective.

[SPEAKER_02]: But I mean, they reported earnings on August 6th, and things weren't great.

[SPEAKER_02]: They missed on revenue.

[SPEAKER_02]: They had organic revenue down 1% year over year.

[SPEAKER_02]: They're companion animal division, which is their largest division.

[SPEAKER_02]: Saw revenue down 11%.

[SPEAKER_02]: Year over year within the United States.

[SPEAKER_02]: They even revised their guidance downward.

[SPEAKER_02]: So I don't know, I mean...

[SPEAKER_02]: This thing's been trading sideways since the beginning of May.

[SPEAKER_02]: But there's not a lot of light here.

[SPEAKER_02]: You got a company that has had poor performance.

[SPEAKER_02]: It's trading at the low end of its valuation, yes.

[SPEAKER_02]: But again, these are relative multiples.

[SPEAKER_02]: So earnings reset certainly can head higher.

[SPEAKER_02]: That's what happens when you divide one number by another number.

[SPEAKER_02]: If the denominator goes down,

[SPEAKER_02]: prices gonna follow and so i'm not really in favor of of buying a company that is just delivered its second consecutive guidance cut uh... so for me you know uh... as a way to see ts can have to pass i want to be fit in another voicemail question now hello and that's what this is joe humbry play

[SPEAKER_00]: I'm calling and we got to International Fund.

[SPEAKER_00]: I'm looking for International Exposure and I have a I'm choosing between either ETF or Mutual Fund.

[SPEAKER_00]: The Mutual Fund I was looking at was T-R-O-Price, PR-I-G-X, International Fund, or an I-Share Fund.

[SPEAKER_00]: I-X-U-S, which is an I-Share Core International.

[SPEAKER_00]: I would like your take on which one will be a better choice.

[SPEAKER_00]: Look forward to your answer on that.

[SPEAKER_00]: And thank you very much to your service.

[SPEAKER_02]: Okay, what do we start with here IGX, which is the T-Row price international value fund, pretty expensive 63 basis points at tracks, the World XUS Large Cat value index, looks like over the past year, it's underperformed, it's underperformed on the three year, the five year and the ten year.

[SPEAKER_02]: So this is a fund that is perineally underperforming its benchmark.

[SPEAKER_02]: but it's trying to give you a bit of value exposure and it's really only focused on the large cap space.

[SPEAKER_02]: Now let's look at iXUS which is, you know, it gives you an extremely broad portfolio of international securities.

[SPEAKER_02]: It is not just within large caps, it also invests in mid and small caps and it's expense ratio is 7 basis points.

[SPEAKER_02]: It has outperformed its benchmark on the 1 month quarter-to-date, 3 month, year-to-date, 1-year time frame, really all across the board.

[SPEAKER_02]: From what I'm seeing here, in terms of its performance, its benchmark is an IMI, which is an investable market index, so it's going to include large

[SPEAKER_02]: I mean, if you're trying to get pure in a national exposure and the both of these are XUS funds, I'm definitely going to lean towards IXUS for multiple reasons.

[SPEAKER_02]: One gives you a small and big cap exposure.

[SPEAKER_02]: And two, it's like 55 basis points cheaper and does pretty well compared to its benchmark over the long term.

[SPEAKER_02]: That is IXUS and TRIGX.

[SPEAKER_02]: My vote goes for IXUS.

[SPEAKER_02]: Thanks to the call.

[SPEAKER_02]: So if we got plenty of time, maybe a question on ETFs?

[SPEAKER_03]: I just had a simple question about how best to analyze an ETF to decide whether or not.

[SPEAKER_03]: To buy, I get some of the ratios you want to look at for individual companies, but some of them don't directly apply.

[SPEAKER_03]: So I'm wondering, what translates and what doesn't end to analyzing an ETF would love to.

[SPEAKER_03]: And you guys answer, look forward to it.

[SPEAKER_02]: Sure, so, you know, I think you can't really look at ETFs through the same lens of how you look at a company because ETFs are generally more diversified ways to invest in some sort of asset class, maybe you want small caps, maybe you want the aerospace industry, maybe you want software names.

[SPEAKER_02]: And so the way that you should be looking at whether or not an ETF is one you want to invest in,

[SPEAKER_02]: There are companies like Morningstar that give them grades, which are good, but you really need to dive in and understand what those ETFs are investing in.

[SPEAKER_02]: So if I'm looking for a small cap, US small cap fund.

[SPEAKER_02]: The SAP 600, which is, calls itself a small cap index, has a lot of mid cap exposure.

[SPEAKER_02]: So if I purely want small cap exposure, that's not where I should go.

[SPEAKER_02]: Your question should be, how good of a job does this specific ETF do at attacking the asset class or theme, or whatever thing I'm trying to invest in?

[SPEAKER_02]: As number one, number two, do I understand what it's doing?

[SPEAKER_02]: Is it a black box of investment?

[SPEAKER_02]: Does it do a good job describing?

[SPEAKER_02]: Is its investment strategy sensible in how it's attacking that asset class?

[SPEAKER_02]: And then also a really important thing as well.

[SPEAKER_02]: How much of it can be in charge for this?

[SPEAKER_02]: If you're investing in US large caps, you shouldn't be paying more than 15, 20 basis points if it's probably diversified.

[SPEAKER_02]: EM, 60, 70 basis points.

[SPEAKER_02]: Understand the different asset classes demand different costs.

[SPEAKER_02]: All of these things are critical to know when choosing an ETF.

[SPEAKER_02]: Thanks to the call.

[SPEAKER_02]: Isn't that stock?

[SPEAKER_02]: I'm Lou Guerrero.

[SPEAKER_02]: We have one goal here to help you achieve your financial freedom.

[SPEAKER_02]: And our work continues after our final break.

[SPEAKER_02]: So get your questions in now at 888-99 chart.

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[SPEAKER_02]: So we bet when we talked a little bit about how the SEC has a proposal to make quarterly reporting optional.

[SPEAKER_02]: All right, we talked about this back at May when over 200,000 comments came in overwhelmingly opposing it.

[SPEAKER_02]: In the comment period, well, close in July, which means a final rule decision is the next step.

[SPEAKER_02]: And this could move fast enough that calendar year companies filing their fiscal 2026 10k's would be the first to check the semi-annual box.

[SPEAKER_02]: Now, I want to revisit this because I don't think listeners fully appreciate what changes in their day-to-day investing if this goes through.

[SPEAKER_02]: The proposal doesn't ban quarterly finding filings, companies can still report every quarter they want to.

[SPEAKER_02]: Form 8K obligations for material events, so your major contracts, your executives leaving acquisitions, your restructuring, those remain in place.

[SPEAKER_02]: But what changes is that companies can choose to file a new Form 10S, semi-annually instead of the quarterly 10Q.

[SPEAKER_02]: So if Apple decides to keep voting quarterly and for decides to switch to semi-animal, you now have two companies in your portfolio on different reporting cadences.

[SPEAKER_02]: And the honest tension here is that evidence from the UK, which ran exactly this experiment, is probably mixed at best, Britain made quarterly reporting mandatory in 07, then made it optional in 2014, and the peer reviewed research on whether reducing reporting cured this short termism in markets or unlocked long-term investment or revived IPOs is

[SPEAKER_02]: unsupportive at times and in contradictory at others, I mean, some studies found no effect on investment horizon.

[SPEAKER_02]: Others found that companies which stopped reporting quarterly saw wider bidass spreads and increased information asymmetry.

[SPEAKER_02]: Now, the SEC itself is soliciting feedback on two specific concerns.

[SPEAKER_02]: Comparability across issuers and the time-lness information.

[SPEAKER_02]: If company A reports quarterly and company B reports every six months, how does an investor compare them during the off-quarter?

[SPEAKER_02]: The answer, you can't.

[SPEAKER_02]: Not with the same confidence at least.

[SPEAKER_02]: You're relying on press releases on those eight K filings, on management guidance, not of which carry the same audit rigor, as a legally binding filing like a 10-Q.

[SPEAKER_02]: You're going to have to wait more highly on a case on that management, guys.

[SPEAKER_02]: It means wider information dispersion between companies that report frequently in those that don't.

[SPEAKER_02]: It changes how you monitor stock you up.

[SPEAKER_02]: Instead of checking quarterly earnings against consensus four times, you're doing a twice with six months of business activity compressed into a single filing.

[SPEAKER_02]: And the companies that are most likely to opt out of quarterly reporting, probably not Apple or Microsoft, probably not in video, probably not mega caps, probably not large caps, probably the smaller ones, the smaller public companies, where analysts coverage is already fined and information flow is already limited.

[SPEAKER_02]: The ones where quarterly reports are the primary way investors learn about what's happening.

[SPEAKER_02]: Those are exactly the companies where reducing the disclosure creates the most risk.

[SPEAKER_02]: Are this passes?

[SPEAKER_02]: You're gonna have to get familiar with other types of filings.

[SPEAKER_02]: You're gonna have to read your 8k, seriously.

[SPEAKER_02]: The 8k becomes the primary real-time disclosure mechanism between semi-annual findings.

[SPEAKER_02]: And this is a report, a filing rather, that probably most people have never heard of, and certainly most retail investors have never read one.

[SPEAKER_02]: So, if these changes go through and there's still a possibility that they won't.

[SPEAKER_02]: Understand that you information flow from company to investor fundamentally changes and so too will you have to change the way you get your critical information

[SPEAKER_02]: Alright everybody, that does it for another episode of Invest Talk, Justin and I, and the whole team over here, thank you for listening, and we encourage you to tell your friends and family members that this is a free show with free podcast downloads.

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[SPEAKER_02]: Lastly, I wanted to bring up our practice at KVP of parallel investing, where when we make a trade for our clients to make the same trade for ourselves on the same day of the same price, same percentage, no front running, no special treatment,

[SPEAKER_02]: We invest right alongside our clients in order to share in the risks in the potential for success.

[SPEAKER_02]: So that sounds like a quality you want in your advisor.

[SPEAKER_02]: I encourage you to head over to Investor.com to learn more and schedule a free portfolio review.

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[SPEAKER_02]: Sure it's success.

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