1 00:00:00,000 --> 00:00:01,800 Welcome back to the jaws of Carlson show. 2 00:00:01,800 --> 00:00:05,400 On today's episode, we're going to be reviewing three deep value 3 00:00:05,400 --> 00:00:09,500 companies, the way that I would define deep value, is basically 4 00:00:09,500 --> 00:00:13,200 every metric on the table. Every one of them from the PE 5 00:00:13,200 --> 00:00:16,200 Ratio, the price to books the price to sales, the dividend 6 00:00:16,200 --> 00:00:19,000 yield the historical valuation. All of them, show that these 7 00:00:19,000 --> 00:00:22,400 companies are very deep value. Ally Financial is one of them. 8 00:00:22,400 --> 00:00:25,400 This company trades at a 4.5 PE ratio. 9 00:00:25,600 --> 00:00:28,500 And it pays a 3.6 percent dividend yield Paramount. 10 00:00:28,500 --> 00:00:30,900 Global is another one. This This company trades at a 11 00:00:30,907 --> 00:00:35,800 nine point three PE ratio and as a dividend yield of 3.7% and 12 00:00:35,800 --> 00:00:38,300 then Intel's the third one. This companies that at n PE 13 00:00:38,300 --> 00:00:42,000 ratio and a 3.9% forward dividend yield, so we'll be 14 00:00:42,000 --> 00:00:44,500 looking in depth on all three of these companies, and I'll share 15 00:00:44,500 --> 00:00:46,500 my opinion on whether or not I plan on buying them. 16 00:00:46,500 --> 00:00:48,800 Now, we also have a lot of news to go over in this episode as 17 00:00:48,800 --> 00:00:50,600 well. Howard Mark says, now is the 18 00:00:50,600 --> 00:00:53,400 time to buy Ed Pitonyak, the CEO of each. 19 00:00:53,400 --> 00:00:57,100 He went on to Mad Money with Jim Cramer to explain new potential 20 00:00:57,100 --> 00:01:01,700 categories that Vici May grow into Cook basically admitted 21 00:01:01,800 --> 00:01:05,099 that apple is working on an AR VR headset, and he even gave 22 00:01:05,099 --> 00:01:07,600 kind of a hint of when it would be released and apple, 23 00:01:07,600 --> 00:01:11,300 reportedly is going to have a flood of new devices coming. 24 00:01:11,300 --> 00:01:13,600 This fall, we'll be looking at this news and the rumored 25 00:01:13,600 --> 00:01:16,000 devices and what it could mean for Apple stock. 26 00:01:16,000 --> 00:01:18,400 So, we have a lot to jump into. Let's go ahead and get started. 27 00:01:18,500 --> 00:01:21,100 First of all, looking at the last week, if I filter by the 28 00:01:21,100 --> 00:01:24,900 past five days were up six, point eight, nine percent, 29 00:01:24,900 --> 00:01:27,500 that's twenty one thousand one hundred and seventy eight 30 00:01:27,500 --> 00:01:29,800 dollars. So this was actually a decent. 31 00:01:29,900 --> 00:01:31,800 Second week, stock price has moved up. 32 00:01:31,800 --> 00:01:34,600 We earned a thousand dollars in dividends in one week, twenty 33 00:01:34,600 --> 00:01:37,900 thousand dollars in capital gains and that's nice to have. 34 00:01:38,000 --> 00:01:40,400 But I really don't pay attention to this too much. 35 00:01:40,400 --> 00:01:43,700 It's interesting to look at but these stock prices trade around 36 00:01:43,700 --> 00:01:46,200 week-by-week like crazy and timing. 37 00:01:46,200 --> 00:01:49,100 These moves is very difficult a week ago. 38 00:01:49,300 --> 00:01:51,700 There is many people, many content creators, many 39 00:01:51,700 --> 00:01:55,200 YouTubers, many tick talkers, many Financial Twitter accounts 40 00:01:55,400 --> 00:01:58,100 saying to not buy the dip to stay away from it. 41 00:01:58,300 --> 00:02:01,500 And here we are up 7%. Sent in the past five days. 42 00:02:01,700 --> 00:02:04,500 This is the risk of trying to time the market that I've 43 00:02:04,500 --> 00:02:06,300 repeatedly warned people against. 44 00:02:06,300 --> 00:02:09,699 It is incredibly difficult to do and most people don't come out 45 00:02:09,699 --> 00:02:11,600 successful. I'm not doing that. 46 00:02:11,600 --> 00:02:14,300 I'm staying invested in these companies and I'm continually 47 00:02:14,300 --> 00:02:17,600 compounding my passive income. I record this level of passive 48 00:02:17,600 --> 00:02:20,500 income on a website that I use called quatrain sites. 49 00:02:20,800 --> 00:02:22,700 This is available to all patreon members. 50 00:02:22,900 --> 00:02:25,400 You can see the growth of it month over month throughout 51 00:02:25,400 --> 00:02:28,500 time, and I'll be adding in June's dividend income at the 52 00:02:28,500 --> 00:02:31,200 end of the month. So next We will see how much I 53 00:02:31,200 --> 00:02:33,600 earned in June, but I'll give you a little bit of a preview so 54 00:02:33,600 --> 00:02:35,300 far. In June, we've had a total of 55 00:02:35,300 --> 00:02:38,100 three dividend payments. We've had one on June 9th from 56 00:02:38,100 --> 00:02:42,400 Microsoft for $95, one from Target for $10, and then one 57 00:02:42,400 --> 00:02:47,100 from Texas Roadhouse, for $140. So only three dividend payments 58 00:02:47,100 --> 00:02:49,400 so far this month. And based off, just these three 59 00:02:49,400 --> 00:02:52,200 payments. It looks like it'll be a pretty 60 00:02:52,200 --> 00:02:54,900 low dividend amount this month. That's what it looks like 61 00:02:55,200 --> 00:02:58,200 because we're only going to get what $200 in dividends 250 62 00:02:58,200 --> 00:03:00,500 bucks. That's not a lot but We can get 63 00:03:00,500 --> 00:03:03,400 some more information on this. If I go back to qual trim, I can 64 00:03:03,400 --> 00:03:06,500 see my upcoming dividends. This is my dividend pipeline. 65 00:03:06,800 --> 00:03:09,000 These are ones that are not projected. 66 00:03:09,000 --> 00:03:12,200 They're not hypothetical. These are officially declared 67 00:03:12,200 --> 00:03:16,500 dividends that I am 100% going to get paid based on my current 68 00:03:16,500 --> 00:03:22,000 Holdings and I will get paid $552 from SC HD tomorrow. 69 00:03:22,100 --> 00:03:23,800 That'll hit my cash balance tomorrow. 70 00:03:23,900 --> 00:03:26,300 So this one dividend payment will raise my entire dividend 71 00:03:26,300 --> 00:03:29,800 income for the month to around 700 $800. 72 00:03:30,000 --> 00:03:33,300 This one dividend payments going to bail me out then on the 29th 73 00:03:33,300 --> 00:03:36,500 we also have 26 dollars from tiro price and then July 7th, I 74 00:03:36,500 --> 00:03:39,600 have that $445 dividend from Vici. 75 00:03:39,700 --> 00:03:43,500 So all in all this is adding up to what could be a pretty close 76 00:03:43,500 --> 00:03:46,000 to record month, it certainly will be a high one. 77 00:03:46,000 --> 00:03:49,100 So I'm excited to see the dividend income growing. 78 00:03:49,100 --> 00:03:52,200 So I'll have some cash to spend. I'll have a little bit to put in 79 00:03:52,200 --> 00:03:56,000 this portfolio and hopefully by the most attractive companies I 80 00:03:56,000 --> 00:03:57,800 can. Now, before we get into 81 00:03:57,800 --> 00:04:00,600 companies, I'm looking at and doing analysis on I want to just 82 00:04:00,600 --> 00:04:04,900 go through some input that Howard marks has in my humble 83 00:04:04,900 --> 00:04:07,200 opinion. I think that Howard marks is one 84 00:04:07,200 --> 00:04:10,500 of the most remarkable introspective investors of at 85 00:04:10,500 --> 00:04:13,600 least the past five years. When I look at different advice 86 00:04:13,600 --> 00:04:17,200 and and different actions that investors took, I think that his 87 00:04:17,200 --> 00:04:21,100 overall was was very good over the past three years, he behaved 88 00:04:21,100 --> 00:04:24,500 and acted and his input. I think was far more valuable 89 00:04:24,500 --> 00:04:27,700 than most other investors input. So I pay attention to what he 90 00:04:27,700 --> 00:04:30,100 says. And to my delight I was Eyes to 91 00:04:30,100 --> 00:04:33,700 see and happy to see an article where Howard marks was not 92 00:04:33,700 --> 00:04:36,500 cautious. He wasn't being defensive for 93 00:04:36,500 --> 00:04:39,000 the past couple of years. He's been defensive and 94 00:04:39,000 --> 00:04:42,800 cautious, but right now he has turned aggressive. 95 00:04:42,800 --> 00:04:45,500 And in the article he goes on about why he's being more 96 00:04:45,500 --> 00:04:47,500 aggressive. He says, quote today I'm 97 00:04:47,500 --> 00:04:50,700 starting to behave more aggressively everything we deal 98 00:04:50,700 --> 00:04:54,400 in is significantly cheaper than it was six or 12 months ago. 99 00:04:54,700 --> 00:04:57,800 That is the key line there. Howard marks does look at 100 00:04:57,800 --> 00:05:01,500 relative valuation. If Is go up rapidly. 101 00:05:01,700 --> 00:05:04,700 He's less eager to continue buying because he knows that 102 00:05:04,700 --> 00:05:07,700 those tend to revert. Back to the mean when prices go 103 00:05:07,700 --> 00:05:11,900 down rapidly that catches Howard marks attention and he's more 104 00:05:11,900 --> 00:05:15,200 eager to start buying and it is true that basically everything 105 00:05:15,200 --> 00:05:18,600 in the equity markets right now is significantly cheaper than it 106 00:05:18,600 --> 00:05:21,300 was 12 months ago. Now, what he deals with is high 107 00:05:21,300 --> 00:05:24,300 yield bonds, leveraged, loans mortgage-backed Securities and 108 00:05:24,300 --> 00:05:27,300 collateralized Loan obligations. He's in a different category of 109 00:05:27,300 --> 00:05:30,500 investment but the point Still Remains and I think His advice 110 00:05:30,500 --> 00:05:33,500 here is completely applicable to what we're buying, which is 111 00:05:33,500 --> 00:05:35,800 typically stocks. And even though Howard marks 112 00:05:35,800 --> 00:05:39,000 will posture himself to become a little bit more aggressive in 113 00:05:39,000 --> 00:05:41,700 his buying and a little bit more conservative. 114 00:05:41,800 --> 00:05:45,400 He also thinks that timing the market is a terrible idea. 115 00:05:45,400 --> 00:05:48,500 He says, quote, I think the idea of waiting for a bottom is a 116 00:05:48,500 --> 00:05:52,100 terrible idea assets, could get cheaper than current valuations, 117 00:05:52,500 --> 00:05:57,200 in which case we'll buy more. Now this statement can be 118 00:05:57,200 --> 00:06:01,200 confusing if he is 100%. Sent invested right now. 119 00:06:01,300 --> 00:06:02,600 He has all of his money invested. 120 00:06:02,600 --> 00:06:05,500 He's not waiting for a bottom and prices move down. 121 00:06:06,100 --> 00:06:09,000 What is he going to use to buy more in his case? 122 00:06:09,000 --> 00:06:11,200 He could raise money. Through different means you 123 00:06:11,200 --> 00:06:14,000 could raise cash maybe from investors and then you could do 124 00:06:14,000 --> 00:06:16,200 something else that we could do. He could look at Investments 125 00:06:16,400 --> 00:06:19,300 that did not move much during those downward movements because 126 00:06:19,300 --> 00:06:21,200 not every Investments going to fall in price. 127 00:06:21,500 --> 00:06:25,300 So if the market move down more, he could sell some Investments 128 00:06:25,600 --> 00:06:28,700 that have held up relatively well and move that money into 129 00:06:28,700 --> 00:06:31,100 the ones that have come down. And price significantly. 130 00:06:31,100 --> 00:06:34,700 So even though you're 100% invested, that doesn't 131 00:06:34,700 --> 00:06:37,300 necessarily mean that you can't buy more in the future. 132 00:06:37,500 --> 00:06:40,700 Most of us are going to continue working will have incomes that 133 00:06:40,700 --> 00:06:43,100 we can use to fund future Investments. 134 00:06:43,400 --> 00:06:46,500 And we can sell conservative Investments to make room for 135 00:06:46,500 --> 00:06:49,500 more aggressive ones. For example, if the stock market 136 00:06:49,500 --> 00:06:53,200 goes down, another 20% odds are Pepsi will go down like five 137 00:06:53,200 --> 00:06:55,300 percent. That's the case I could sell my 138 00:06:55,300 --> 00:06:58,500 Pepsi holding to buy more aggressive Holdings in something 139 00:06:58,500 --> 00:07:01,500 like tech companies. So there's Are ways to stay 100% 140 00:07:01,500 --> 00:07:04,000 invested and continue to buy as the market moves down. 141 00:07:04,100 --> 00:07:06,800 And Howard marks goes on of why he's being more aggressive right 142 00:07:06,800 --> 00:07:08,700 now than other points in the market. 143 00:07:08,800 --> 00:07:11,800 He says, quote were more aggressive if we think Bargains 144 00:07:11,800 --> 00:07:14,200 are Rife. So Howard marks thinks right 145 00:07:14,200 --> 00:07:15,500 now. Bargains are right. 146 00:07:15,500 --> 00:07:17,800 He says and we are more defensive. 147 00:07:17,800 --> 00:07:21,000 If we think the market is elevated and investor behavior 148 00:07:21,000 --> 00:07:24,000 is imprudent and this is something that is repeated over 149 00:07:24,000 --> 00:07:27,200 and over again, with the less Prudence that other investors 150 00:07:27,200 --> 00:07:29,700 conduct themselves. The more Prudence you need to 151 00:07:29,800 --> 00:07:33,600 You have and the more prudent, other investors become, the less 152 00:07:33,600 --> 00:07:35,400 imprudent you should conduct yourself. 153 00:07:35,500 --> 00:07:38,600 So when other investors become less greedy, they start giving 154 00:07:38,600 --> 00:07:41,400 up on the stock market, they become fearful, they start 155 00:07:41,400 --> 00:07:44,300 selling out of good companies. That's when it's time to become 156 00:07:44,300 --> 00:07:47,100 a really aggressive and by Deep value companies. 157 00:07:47,100 --> 00:07:49,400 Right now, if I look at my portfolio on the dip finder 158 00:07:49,400 --> 00:07:52,200 which is a tool I developed as part of the patreon membership, 159 00:07:52,500 --> 00:07:55,200 this tracks, the movement of every single company against 160 00:07:55,200 --> 00:07:58,300 their 200-day moving average, that is a technical analysis 161 00:07:58,300 --> 00:08:01,700 term of tracking them. Mentum of a stock if these 162 00:08:01,700 --> 00:08:04,700 companies have momentum downwards and momentum upwards. 163 00:08:05,000 --> 00:08:08,200 Right now, every company in my portfolio has momentum 164 00:08:08,200 --> 00:08:12,800 downwards, except for Pepsi and Vici vgz only one that has 165 00:08:12,800 --> 00:08:14,900 positive momentum. So I completely agree with 166 00:08:14,900 --> 00:08:17,400 Howard marks sentiment here. So having said that, let's go 167 00:08:17,400 --> 00:08:20,500 ahead and look for deep value. Dividend-paying companies, I 168 00:08:20,508 --> 00:08:23,000 have three of them currently that I want to review the first 169 00:08:23,000 --> 00:08:25,100 one that we're going to. Look at is Ally Financial. 170 00:08:25,100 --> 00:08:28,400 And the website we're using here is quatrain site. 171 00:08:28,400 --> 00:08:30,500 It's something we've developed as Part of the patreon 172 00:08:30,500 --> 00:08:33,200 membership, you can join the patron with a free trial with 173 00:08:33,200 --> 00:08:35,900 the link in the description or the pin comment below. 174 00:08:36,200 --> 00:08:41,000 Now, Ally Financial is a bank, so it's it's an online bank. 175 00:08:41,000 --> 00:08:43,700 It's kind of a newer version of a bank where they don't have 176 00:08:43,799 --> 00:08:47,400 physical branches, and that's been a big cost Advantage for 177 00:08:47,400 --> 00:08:49,900 Ally Financial. Because if you compare Ally 178 00:08:49,900 --> 00:08:53,400 Financial to something like Bank of America, right? 179 00:08:53,400 --> 00:08:56,000 You compare it to these two different companies Bank of 180 00:08:56,000 --> 00:09:00,000 America or Wells Fargo or JP Morgan or Citigroup, All of 181 00:09:00,000 --> 00:09:03,000 them, have thousands of different physical branches, all 182 00:09:03,000 --> 00:09:05,700 across the United States. All of those branches have 183 00:09:05,700 --> 00:09:07,700 employees in them. They have rent. 184 00:09:07,800 --> 00:09:10,500 They have leases that they have to pay, and that adds to the 185 00:09:10,500 --> 00:09:12,600 cost of running a Bank of America. 186 00:09:12,900 --> 00:09:15,500 Well, Ally Financial came up with a different business model 187 00:09:15,900 --> 00:09:17,800 of having their Bank have no physical. 188 00:09:17,800 --> 00:09:21,600 Branches 100% online and being 100% online. 189 00:09:21,800 --> 00:09:24,300 Improves their cost structure and allows them to do things 190 00:09:24,600 --> 00:09:26,300 that other Banks simply don't do. 191 00:09:26,400 --> 00:09:28,800 For example, they have a 1% interest on their savings 192 00:09:28,800 --> 00:09:31,300 account. Be Morgan Bank of America Wells, 193 00:09:31,300 --> 00:09:33,900 Fargo Citigroup typically, they don't do that. 194 00:09:33,900 --> 00:09:36,700 It's much lower, they have no overdraft fees. 195 00:09:36,700 --> 00:09:39,000 They were one of the first Banks to get rid of the overdraft 196 00:09:39,000 --> 00:09:40,700 fees. And in terms of the concern of 197 00:09:40,700 --> 00:09:45,100 customer support, they have 24/7 customer support and both live 198 00:09:45,100 --> 00:09:49,100 chat and phone so you can get a hold of them at any time even 199 00:09:49,100 --> 00:09:51,500 though they have no physical branch that you can walk into. 200 00:09:51,500 --> 00:09:54,200 Now, this business model that Ally Financial has having no 201 00:09:54,200 --> 00:09:57,200 physical branch has made it so that they could build up their 202 00:09:57,200 --> 00:09:59,700 business without taking on as much debt. 203 00:09:59,800 --> 00:10:02,200 That's one of the huge advantages that they have, for 204 00:10:02,200 --> 00:10:04,300 example, take a look at their funding composition. 205 00:10:04,300 --> 00:10:07,600 This is off of their most recent earnings report, they have 206 00:10:07,600 --> 00:10:11,300 deposits, and purple secured debt, which is the really bad 207 00:10:11,300 --> 00:10:14,000 debt in the gray there. And then they have other and 208 00:10:14,000 --> 00:10:15,500 unsecured debt. Over time. 209 00:10:15,500 --> 00:10:18,000 Ally Financial has gotten rid of more and more debt. 210 00:10:18,000 --> 00:10:20,900 And now they have almost no secured debt. 211 00:10:20,900 --> 00:10:23,500 So they've gotten rid of almost all of their bad debt. 212 00:10:23,500 --> 00:10:27,400 Only one percent of their funding is from secured debt and 213 00:10:27,400 --> 00:10:30,700 even unsecured debt only makes up five percent. 214 00:10:30,700 --> 00:10:33,700 That is a very small amount and they do this because they can 215 00:10:33,700 --> 00:10:36,600 fund their entire business purely from deposits. 216 00:10:36,800 --> 00:10:38,800 That's the difference between them and other Banks. 217 00:10:38,800 --> 00:10:40,900 They don't have as much overhead, so they don't need to 218 00:10:40,900 --> 00:10:43,700 take on as much dead. Now, in terms of valuation, it 219 00:10:43,700 --> 00:10:46,300 doesn't really get much cheaper for this high quality of a 220 00:10:46,308 --> 00:10:51,100 company Ally Financial currently trades at a 4.5 PE ratio. 221 00:10:51,400 --> 00:10:54,900 That's a very low price to earnings even if we are going 222 00:10:54,900 --> 00:10:59,100 into recession this is really low in 2019, for example, this 223 00:10:59,100 --> 00:11:03,600 was a nice So Ally, financials trading at half the PE at was 224 00:11:03,600 --> 00:11:06,700 pre covid and then the price to book is point eight, which in 225 00:11:06,700 --> 00:11:09,200 absolute terms is also very inexpensive. 226 00:11:09,200 --> 00:11:12,600 So the basic metrics right now look like a lies deep value. 227 00:11:12,600 --> 00:11:15,300 If we bring up the price chart hair, we can look at the past 228 00:11:15,300 --> 00:11:17,800 five years. This is how the companies traded 229 00:11:17,800 --> 00:11:24,600 in 2017 to 2019, the company traded around 25 to 30 dollars. 230 00:11:24,600 --> 00:11:27,800 That's the price range. Then of course, it's sold off 231 00:11:27,800 --> 00:11:29,100 during covid with everything else. 232 00:11:29,700 --> 00:11:33,900 And then it started at steady climb all the way back up to $55 233 00:11:34,200 --> 00:11:36,600 investors were excited. During this time, all of 234 00:11:36,600 --> 00:11:40,100 financials including JPMorgan and other big Banks traded up to 235 00:11:40,100 --> 00:11:43,200 record highs and now the excitement has fizzled off and 236 00:11:43,200 --> 00:11:46,500 it's been replaced with fairs, many fears concerning their 237 00:11:46,500 --> 00:11:50,400 future and right now, the company trades at $35 per share, 238 00:11:50,800 --> 00:11:54,500 which you'll notice is right around where it was pre covid in 239 00:11:54,500 --> 00:11:56,300 2019. But things have improved 240 00:11:56,300 --> 00:11:59,600 dramatically for Ally Financial since 2009. 241 00:11:59,800 --> 00:12:00,900 Kane. We've already seen that their 242 00:12:00,900 --> 00:12:03,400 balance sheet, their deposits, and their debt have all 243 00:12:03,400 --> 00:12:05,700 improved. They've had more deposits and 244 00:12:05,700 --> 00:12:07,700 less debt. That's a good thing and it's 245 00:12:07,700 --> 00:12:10,700 actually improved significantly since 2019. 246 00:12:11,000 --> 00:12:14,200 Yet the stock trades at the same price, the liquidity composition 247 00:12:14,200 --> 00:12:16,100 of the company has also improved. 248 00:12:16,100 --> 00:12:18,700 They've added billions of Highly liquid Securities and cash 249 00:12:18,700 --> 00:12:23,100 equivalents, their allowance for loan losses which means how much 250 00:12:23,100 --> 00:12:26,800 wiggle room they have for loan. Losses has also over doubled. 251 00:12:27,000 --> 00:12:30,700 In 2019 it was point nine. Nine percent So under one 252 00:12:30,700 --> 00:12:33,800 percent and now it's 2.63 percent. 253 00:12:34,000 --> 00:12:36,800 So Ally Financial has a lot more margin of safety. 254 00:12:37,100 --> 00:12:40,000 They have a lot more wiggle room in case they take on loan losses 255 00:12:40,400 --> 00:12:43,200 and this is important to keep in mind because the reason that 256 00:12:43,200 --> 00:12:46,500 Ally financials trading down, so much right now is specifically 257 00:12:46,500 --> 00:12:49,500 for this concern, and that is because Ally Financial makes 258 00:12:49,500 --> 00:12:53,500 around 70 percent of their earnings from used auto loans. 259 00:12:53,600 --> 00:12:57,100 They are huge in the used auto loan market, and investors have 260 00:12:57,100 --> 00:12:59,600 very big concerns about that. Here is a chart showing the 261 00:12:59,800 --> 00:13:04,300 Average price of used cars over the past three years in 2019 262 00:13:04,300 --> 00:13:07,000 there around 21,000. So if you wanted to buy an 263 00:13:07,000 --> 00:13:10,600 average is car, you're paying 21 Grand then it went down a little 264 00:13:10,600 --> 00:13:14,500 bit to 20,000. Then in 2020 it started to climb 265 00:13:14,500 --> 00:13:18,100 22,000. Then in 2021 used car prices 266 00:13:18,100 --> 00:13:21,800 really exploded going up to twenty seven, twenty eight, 267 00:13:21,800 --> 00:13:25,800 twenty nine, thirty thousand dollars and they have not begun 268 00:13:25,800 --> 00:13:29,600 to come back down. Use car prices are now at 30,000 269 00:13:29,700 --> 00:13:33,500 And $786. And this is the index price. 270 00:13:33,500 --> 00:13:36,100 Meaning, this is the average of all us car brands. 271 00:13:36,100 --> 00:13:39,800 This is a 44 percent increase in price over the past two years. 272 00:13:39,800 --> 00:13:43,200 And this increase in used car prices has certainly benefited 273 00:13:43,200 --> 00:13:45,300 Ally Financial. This is a big part of the reason 274 00:13:45,300 --> 00:13:49,900 their net income went from 380 million, 400 million to 900 275 00:13:49,900 --> 00:13:52,000 million in the course of one year. 276 00:13:52,100 --> 00:13:54,900 Loan volumes increased significantly because of used 277 00:13:54,900 --> 00:13:57,700 car prices, going up 40%. And although that's been great 278 00:13:57,700 --> 00:14:01,300 for Ally Financial for 20 21, The question is, how long will 279 00:14:01,300 --> 00:14:03,900 those used car prices? Stay this high will they 280 00:14:03,900 --> 00:14:06,400 collapse? Will they go down 30-40 percent? 281 00:14:06,400 --> 00:14:09,100 Or will they stay at a very high level for a long period of time 282 00:14:09,400 --> 00:14:11,300 and this is where opinions differ greatly. 283 00:14:11,400 --> 00:14:14,100 Here's the CEO of Ally Financial and his opinion on the subject. 284 00:14:14,100 --> 00:14:17,200 But we think the normalization and used car pricing is going to 285 00:14:17,200 --> 00:14:21,400 be very, very gradual. In early signs in 2022, is the 286 00:14:21,400 --> 00:14:23,200 market staying quite strong. What? 287 00:14:23,200 --> 00:14:25,900 I will tell you within our financial projections that we 288 00:14:25,908 --> 00:14:30,100 provide to the street we call, for a 15% decline between Tween, 289 00:14:30,400 --> 00:14:33,300 the start of 2022 and the end of 2023. 290 00:14:33,600 --> 00:14:36,100 I think the reality is going to likely pan out to be something 291 00:14:36,100 --> 00:14:38,000 different. We think used car prices are 292 00:14:38,000 --> 00:14:40,600 going to remain quite robust for the foreseeable future. 293 00:14:40,700 --> 00:14:47,100 He just said that he's calling for a 15% decline. 15% from 2022 294 00:14:47,100 --> 00:14:51,300 to 2023 so they think used car prices will only decrease by 15 295 00:14:51,300 --> 00:14:54,900 percent over the year and he even says that those estimates 296 00:14:55,100 --> 00:14:58,100 are conservative and more than likely, it'll go down. 297 00:14:58,100 --> 00:14:59,600 Less now Ally Financial stability. 298 00:14:59,700 --> 00:15:02,400 It's on the subject differ greatly from other YouTubers and 299 00:15:02,400 --> 00:15:03,700 people that work in the industry. 300 00:15:03,800 --> 00:15:06,500 Here is one example that recently got highlighted the use 301 00:15:06,500 --> 00:15:10,300 car bubble, lucky Lopez hair goes to a repossession lot and 302 00:15:10,300 --> 00:15:12,800 says that repossessions are picking up because people are 303 00:15:12,800 --> 00:15:15,400 underwater and they're used cars and they're going to start 304 00:15:15,400 --> 00:15:18,800 ditching them which would cause low and losses for investors in 305 00:15:18,800 --> 00:15:21,200 Ally Financial. He goes to parking lots where 306 00:15:21,200 --> 00:15:25,400 there is repossessed vehicles or unsold vehicles and he shows how 307 00:15:25,400 --> 00:15:28,100 many of them are coming in that more and more repossessed or 308 00:15:28,100 --> 00:15:30,900 unsold vehicles are filling lat. It's and there's actually going 309 00:15:30,900 --> 00:15:33,900 to be a cart influx, not a desperate need for them. 310 00:15:33,900 --> 00:15:35,700 Like we have. Right now, there's also another 311 00:15:35,700 --> 00:15:39,600 piece of data I looked at, from KPMG, which is a used car price 312 00:15:39,600 --> 00:15:42,000 market, and whether or not it will crash in it. 313 00:15:42,000 --> 00:15:45,600 They have a section called when the Music Stops nature abhors 314 00:15:45,600 --> 00:15:49,100 vacuums and Market support, and balances demand. 315 00:15:49,100 --> 00:15:52,200 And supply of new vehicles. In the US will come back into 316 00:15:52,200 --> 00:15:55,100 equilibrium, how that happens. We'll make an enormous 317 00:15:55,100 --> 00:15:58,600 difference to automakers consumers, Parts, suppliers Auto 318 00:15:58,600 --> 00:16:01,100 retailers. Perhaps the economy itself, 319 00:16:01,300 --> 00:16:04,500 given the current trends of inflation, new car prices could 320 00:16:04,500 --> 00:16:08,800 continue to rise through 2022. However, as Supply comes back, 321 00:16:08,900 --> 00:16:12,000 automakers are likely to reintroduce incentives and 322 00:16:12,000 --> 00:16:15,900 dealer margins will compress. As a result, we may see a 323 00:16:15,900 --> 00:16:19,900 reversal of some portion of the price increases, whatever path, 324 00:16:19,900 --> 00:16:23,300 the new car market takes to The New Normal used car prices will 325 00:16:23,300 --> 00:16:26,200 eventually return to the traditional relationship with 326 00:16:26,200 --> 00:16:29,800 new vehicle prices. In other words, a 20 to And 327 00:16:29,800 --> 00:16:33,100 plunge and used vehicle prices is in the cards and then they 328 00:16:33,100 --> 00:16:35,500 show different charts, illustrating likely outcomes 329 00:16:35,500 --> 00:16:38,400 based on inflation. But they admit this is not a 330 00:16:38,400 --> 00:16:40,900 perfect science and they really can't predict the outcome. 331 00:16:41,200 --> 00:16:43,900 What they can predict with a certain level of confidence, is 332 00:16:43,900 --> 00:16:47,800 it used car prices, won't trade in line with new cars for long. 333 00:16:48,000 --> 00:16:50,100 That is an imbalance in the market. 334 00:16:50,100 --> 00:16:53,100 And as we've seen over the past two years imbalances, eventually 335 00:16:53,100 --> 00:16:55,200 get worked out. So, as of right now, I'm pretty 336 00:16:55,200 --> 00:16:57,100 torn on Ally Financial. I really am. 337 00:16:57,300 --> 00:16:58,900 The company's a fantastic company. 338 00:16:58,900 --> 00:17:01,200 That's honesty. If you can't dip, it has growing 339 00:17:01,200 --> 00:17:04,800 revenues ibadah cash flow. It has a better balance sheet. 340 00:17:04,800 --> 00:17:08,099 That dividend growth is superb. This company has grown its 341 00:17:08,099 --> 00:17:10,300 dividend like crazy over the past five years. 342 00:17:10,700 --> 00:17:15,500 It pays a very high 3.6 percent yield with the low payout ratio. 343 00:17:15,800 --> 00:17:19,000 So the dividend does have room to raise over time even more 344 00:17:19,000 --> 00:17:21,700 than what it's currently at and the company's doing share 345 00:17:21,700 --> 00:17:23,800 BuyBacks. They raise their buyback program 346 00:17:23,800 --> 00:17:26,300 to two billion and the shares have been going down. 347 00:17:26,300 --> 00:17:30,200 Steadily over the past five years in terms of the Metrics in 348 00:17:30,200 --> 00:17:31,700 the fundamentals of this company. 349 00:17:31,800 --> 00:17:35,600 It looks like it's incredibly well priced deep value and it 350 00:17:35,600 --> 00:17:38,900 has very strong fundamentals and maybe the market is overreacting 351 00:17:38,900 --> 00:17:41,400 and this is a great entry point. Now, the next deep value 352 00:17:41,400 --> 00:17:43,700 dividend-paying company we have is Paramount Global. 353 00:17:43,700 --> 00:17:46,100 This is the Paramount plus company. 354 00:17:46,100 --> 00:17:47,700 This caught a lot of investors attention. 355 00:17:47,700 --> 00:17:50,000 When Warren Buffett added it to his portfolio. 356 00:17:50,000 --> 00:17:52,100 This is actually a decent amount to their portfolio. 357 00:17:52,100 --> 00:17:55,200 A point seven two percent waiting not insignificant when 358 00:17:55,200 --> 00:17:57,200 you're looking at two point, six billion dollars. 359 00:17:57,200 --> 00:17:59,500 So Berkshire, thought Paramount was worth holding. 360 00:17:59,700 --> 00:18:03,200 The company also trades at a very low valuation, a 9.3 361 00:18:03,200 --> 00:18:07,400 forward, P/E ratio that is well below the S&P 500 17 over the 362 00:18:07,400 --> 00:18:09,900 past five years. This stock has continually been 363 00:18:09,900 --> 00:18:13,600 on a downward Trend it dipped heavily in 2020 then it 364 00:18:13,600 --> 00:18:15,900 skyrocketed. When Bill Huang used his twenty 365 00:18:15,900 --> 00:18:19,000 billion dollars of Leverage to bid up to ninety four dollars, a 366 00:18:19,000 --> 00:18:21,600 share, all that leverage quickly, got unraveled back to 367 00:18:21,600 --> 00:18:23,900 where it was at forty, one dollars, a share. 368 00:18:24,000 --> 00:18:27,200 And now, the stock price is all the way down to $25 per share. 369 00:18:27,300 --> 00:18:30,200 Now, over that steady decline in stock price, It's a lot is 370 00:18:30,200 --> 00:18:34,300 change Viacom and CBS merged together in 2019 to form 371 00:18:34,300 --> 00:18:36,100 Paramount. Plus that's why you see the 372 00:18:36,100 --> 00:18:39,500 rapid increase in their revenue, going from fourteen point five 373 00:18:39,500 --> 00:18:41,900 billion to twenty seven point eight million. 374 00:18:42,100 --> 00:18:45,500 This was because of a merger. This also caused their ibadah to 375 00:18:45,500 --> 00:18:48,200 climb. You can see it go up in 2019. 376 00:18:48,500 --> 00:18:51,800 So even though the ibadah is going up like many content 377 00:18:51,800 --> 00:18:55,500 companies we've seen similar to Netflix, the free cash flow is 378 00:18:55,500 --> 00:18:58,800 going down because they have outflows of cash to pay for 379 00:18:58,800 --> 00:19:01,400 content. That they all hopefully monetize 380 00:19:01,400 --> 00:19:04,500 by new subscriber gains and this is where the difficulty of the 381 00:19:04,500 --> 00:19:07,900 story comes into play. The free cash flow is going down 382 00:19:07,900 --> 00:19:12,500 over time because the economics of cable companies is well 383 00:19:12,500 --> 00:19:15,300 proven to be very good economics, very profitable. 384 00:19:15,300 --> 00:19:18,200 The economics of streaming businesses is not yet proven to 385 00:19:18,200 --> 00:19:21,300 be very profitable, and you can see that through the free cash 386 00:19:21,300 --> 00:19:23,600 flow line. So, as they make this transition 387 00:19:23,600 --> 00:19:26,800 from cable company to streaming company, it's very similar to 388 00:19:26,808 --> 00:19:30,400 what Disney's doing, and there's a lot of volatility And unknowns 389 00:19:30,400 --> 00:19:34,000 in the process, but they are driven to make this a successful 390 00:19:34,000 --> 00:19:36,900 and profitable change. Now, the balance sheet shows 391 00:19:36,900 --> 00:19:39,300 that they have a lot of debt. In fact, if we filter by the 392 00:19:39,300 --> 00:19:42,400 amount of debt, you can see that in 2019 with that deal their 393 00:19:42,400 --> 00:19:45,500 debt, roughly doubled. And right now it's at 18, point 394 00:19:45,500 --> 00:19:48,300 three billion, but this debt has been moving in the right 395 00:19:48,300 --> 00:19:51,900 direction down from 21 billion to 18 point three billion. 396 00:19:52,200 --> 00:19:54,100 So their debts going down and their cash. 397 00:19:54,100 --> 00:19:58,100 Balance is increasing over time to things that I like to see and 398 00:19:58,100 --> 00:20:00,400 as of right now their debt really Isn't considered a 399 00:20:00,400 --> 00:20:02,900 problem they can cover through their ibadah. 400 00:20:03,000 --> 00:20:05,500 Now the shares outstanding for this stock jumped, when they did 401 00:20:05,500 --> 00:20:08,000 the mergers. So, in 2019 that shares 402 00:20:08,000 --> 00:20:11,500 outstanding went up like crazy, but it's sense basically leveled 403 00:20:11,500 --> 00:20:14,700 off and the past four quarters, they haven't really issued any 404 00:20:14,700 --> 00:20:17,600 new shares and they're not a company that I think wants to 405 00:20:17,600 --> 00:20:19,800 dilute the shareholder. So, here's my thoughts on 406 00:20:19,800 --> 00:20:23,100 Paramount, overall the company fundamentally looks fine, the 407 00:20:23,100 --> 00:20:25,500 valuation of its low, the dividend yield is high. 408 00:20:25,500 --> 00:20:28,100 The payout ratio is low. It looks like it's going in the 409 00:20:28,108 --> 00:20:32,100 right direction, but I very hesitant to jump in to another 410 00:20:32,100 --> 00:20:35,600 big entertainment company. With a lot of debt transitioning 411 00:20:35,600 --> 00:20:39,200 from a legacy cable company, to a new streaming company, the 412 00:20:39,200 --> 00:20:41,700 challenges, these companies face in the process, I think are 413 00:20:41,700 --> 00:20:44,300 immense and we can see Disney going through these challenges 414 00:20:44,300 --> 00:20:47,000 right now. Disney is my biggest loser, in 415 00:20:47,000 --> 00:20:49,600 my entire portfolio. The stock price went up like 416 00:20:49,600 --> 00:20:52,600 crazy and then it's gone back down since investors are 417 00:20:52,600 --> 00:20:54,900 starting to question the economics of streaming. 418 00:20:55,200 --> 00:20:57,800 So right now, I'm already exposed to the streaming 419 00:20:57,800 --> 00:21:01,000 industry through Disney. Eventually Disney and Netflix 420 00:21:01,000 --> 00:21:04,000 and other companies will prove that streaming has good 421 00:21:04,000 --> 00:21:06,300 economics. But as of right now, I don't 422 00:21:06,300 --> 00:21:09,200 want to add any additional exposure to my portfolio. 423 00:21:09,500 --> 00:21:11,900 I already have Disney in it. Already have a thesis on this 424 00:21:11,900 --> 00:21:15,500 company and I think Paramount plus would be kind of, more of 425 00:21:15,500 --> 00:21:17,900 the same. A big Legacy company with a lot 426 00:21:17,900 --> 00:21:20,200 of debt moving from cable to streaming. 427 00:21:20,200 --> 00:21:22,700 So, I know that Paramount plus is not the same as Disney. 428 00:21:22,700 --> 00:21:24,900 I realize they're different companies, but they're in 429 00:21:24,900 --> 00:21:27,800 similar enough Industries and situations that I don't want to 430 00:21:27,808 --> 00:21:30,200 double my exposure. Now the next That deep value 431 00:21:30,200 --> 00:21:32,700 dividend-paying company. I'm looking at is Intel it 432 00:21:32,700 --> 00:21:38,100 trades at a 10 forward, P/E ratio, and Evita ibadah of 3.7. 433 00:21:38,400 --> 00:21:41,100 This is cheap. This is numerically cheap. 434 00:21:41,100 --> 00:21:44,000 The dividend yield is three point nine five percent. 435 00:21:44,000 --> 00:21:46,300 So you're getting almost a four percent starting yield on the 436 00:21:46,300 --> 00:21:49,100 company with a low payout ratio of 24. 437 00:21:49,400 --> 00:21:52,000 Moreover, if we look at the valuation, we can look at the 438 00:21:52,008 --> 00:21:54,900 free cash flow. This company generally speaking 439 00:21:54,900 --> 00:21:57,300 it's been growing over time and 2020. 440 00:21:57,300 --> 00:21:59,400 It was twenty point nine billion last year. 441 00:21:59,600 --> 00:22:03,200 Is nine point six billion. This is significant free cash 442 00:22:03,200 --> 00:22:05,800 flow. This means the company with its 443 00:22:05,800 --> 00:22:09,700 157 billion market cap is trading anywhere from a 10 444 00:22:09,700 --> 00:22:13,200 priced free, cash flow to a 20. That's a very cheap price to 445 00:22:13,200 --> 00:22:15,600 free cash flow ratio. And it's not like this company 446 00:22:15,600 --> 00:22:18,200 is trading at a price that normally trades that it's 447 00:22:18,200 --> 00:22:22,000 currently down, 21% below, its 200-day moving average which 448 00:22:22,000 --> 00:22:25,100 means the company is in a dip. In fact if we bring up the price 449 00:22:25,100 --> 00:22:27,100 chart here we zoom out ten years. 450 00:22:27,100 --> 00:22:29,400 We can see that until right now is around 37. 451 00:22:29,500 --> 00:22:32,000 Evan per share and its trading around the same price. 452 00:22:32,000 --> 00:22:36,000 It was in 2017. And in between that time period, 453 00:22:36,000 --> 00:22:39,200 it's traded well above that up into $67 per share. 454 00:22:39,200 --> 00:22:40,800 So, let's go ahead and look at the fundamentals of this 455 00:22:40,800 --> 00:22:42,900 company. First of all, we want Revenue 456 00:22:42,900 --> 00:22:44,800 growth. This company is growing its 457 00:22:44,800 --> 00:22:48,100 Revenue, even though it's an old company that's getting beaten up 458 00:22:48,100 --> 00:22:51,300 by AMD and Nvidia. They're still growing Revenue, 459 00:22:51,300 --> 00:22:53,800 which is something reassuring to investors. 460 00:22:53,800 --> 00:22:55,800 Another thing we want to see is that ibadah growing over time 461 00:22:55,800 --> 00:22:59,000 and clearly that ibadah is growing especially over the past 462 00:22:59,000 --> 00:23:00,800 four years. Here's the free cash flow like 463 00:23:00,800 --> 00:23:03,500 we've seen is generally speaking growing over time. 464 00:23:03,700 --> 00:23:07,000 This won't be perfectly consistent every single year but 465 00:23:07,000 --> 00:23:09,600 you can see the Trends. They are pumping out a lot of 466 00:23:09,600 --> 00:23:11,600 free cash flow every year they're balanced. 467 00:23:11,600 --> 00:23:15,100 She actually looks really good. They currently have 38 billion 468 00:23:15,100 --> 00:23:17,400 dollars in cash. Thirty two billion dollars in 469 00:23:17,400 --> 00:23:18,900 debt. So this is actually a company 470 00:23:18,900 --> 00:23:22,200 that's cash-rich they have more cash than debt and Intel also 471 00:23:22,200 --> 00:23:24,500 has been a very consistent dividend pair. 472 00:23:24,700 --> 00:23:27,600 They haven't grown it consecutively every single year. 473 00:23:27,900 --> 00:23:30,300 There's some years where they've taken a break and raising it, 474 00:23:30,400 --> 00:23:33,300 which I think is prudent from the management team to do when 475 00:23:33,300 --> 00:23:35,500 they need to. But you can see over the past 10 476 00:23:35,500 --> 00:23:38,000 or so years. You've had pretty significant 477 00:23:38,000 --> 00:23:39,500 dividend growth with this company. 478 00:23:39,500 --> 00:23:42,100 Now, this is a company that historically has done a lot of 479 00:23:42,108 --> 00:23:44,900 share BuyBacks, so they've been paying a dividend and doing 480 00:23:44,900 --> 00:23:48,300 share, BuyBacks returning. Most of the capital immediately 481 00:23:48,300 --> 00:23:51,300 to shareholders, but you can see that over the past couple of 482 00:23:51,300 --> 00:23:54,400 quarters, they've taken a break from it and I believe to do more 483 00:23:54,400 --> 00:23:56,600 capex, spend. They're trying to reinvest back 484 00:23:56,600 --> 00:23:59,400 into the business to compete with AMD and Nvidia. 485 00:23:59,900 --> 00:24:03,000 And other chip makers because we can see if we look at the capex, 486 00:24:03,000 --> 00:24:06,900 spend that it's gone up quite a bit over the past five years and 487 00:24:06,900 --> 00:24:10,400 this can be viewed as a positive or A negative for Intel 488 00:24:10,400 --> 00:24:12,900 investors. I view this as a positive, they 489 00:24:12,900 --> 00:24:16,200 have to spend heavily to continue making money and 490 00:24:16,300 --> 00:24:18,200 maintaining a competitive Advantage. 491 00:24:18,400 --> 00:24:21,500 So I think this 20 billion dollars in capex spend is 492 00:24:21,500 --> 00:24:24,500 probably well spent, so overall in tells another good dividend 493 00:24:24,500 --> 00:24:28,100 paying company that I think is in deep value territory, the big 494 00:24:28,100 --> 00:24:31,100 assessment here is whether or not You think this company can 495 00:24:31,100 --> 00:24:33,700 continue to compete with the likes of AMD? 496 00:24:33,700 --> 00:24:36,600 These companies have really raced ahead and their technology 497 00:24:36,900 --> 00:24:39,100 and Intel is kind of in catch-up mode. 498 00:24:39,300 --> 00:24:42,100 You can see the revenue growth of a company like AMD. 499 00:24:42,400 --> 00:24:43,900 This is what they're competing with. 500 00:24:43,900 --> 00:24:46,900 Nvidia is another one. This company's raced ahead and 501 00:24:46,900 --> 00:24:49,600 Technology leaving until in the dust. 502 00:24:49,600 --> 00:24:52,700 So these are the issues at Intel's dealing with and I don't 503 00:24:52,700 --> 00:24:55,200 think that it's it's a death sentence for Intel. 504 00:24:55,300 --> 00:24:57,500 I don't think it means the company is a bad investment. 505 00:24:57,600 --> 00:24:59,400 It's just a judgment from the investor. 506 00:24:59,800 --> 00:25:02,400 Do you think Intel will continue to grow and keep up with 507 00:25:02,400 --> 00:25:04,900 competition? Or will it get steamrolled by 508 00:25:04,900 --> 00:25:09,300 AMD and my big reservation that I've always had with Intel is 509 00:25:09,300 --> 00:25:12,000 them keeping up of competition? In fact, out of these three 510 00:25:12,000 --> 00:25:14,800 companies one that I'm closest to buying, the one that I think 511 00:25:14,800 --> 00:25:17,100 has the best story of the best fundamentals in, the least 512 00:25:17,100 --> 00:25:20,700 amount of overall risk to its future, is Ally Financial. 513 00:25:20,700 --> 00:25:22,800 This is one that I really could see myself buying in the 514 00:25:22,800 --> 00:25:25,400 near-term future. I think that there's a decent 515 00:25:25,400 --> 00:25:28,700 chance that the concerns with Ally Financial are being 516 00:25:28,700 --> 00:25:31,800 overstated. By the market ever since 2008, 517 00:25:31,800 --> 00:25:35,500 the market looks at any type of recession, Fair any type of loan 518 00:25:35,500 --> 00:25:39,000 losses, and they think that banks are poison that you have 519 00:25:39,000 --> 00:25:40,800 to avoid them. You have to get out of 520 00:25:40,800 --> 00:25:42,500 financials. And I think there's a very good 521 00:25:42,500 --> 00:25:45,700 chance that companies like Ally Financial will fare far better 522 00:25:45,700 --> 00:25:48,000 than expected even in a recession. 523 00:25:48,000 --> 00:25:50,600 So those are three companies I'm looking at but I haven't added 524 00:25:50,600 --> 00:25:54,000 any of them to the portfolio and in the meantime, I will be using 525 00:25:54,000 --> 00:25:57,800 my cash balance to reinvest, so if I can't find any new company 526 00:25:57,800 --> 00:26:01,500 to buy currently all Ploy my cash into my current Holdings. 527 00:26:01,500 --> 00:26:03,100 The way I do that is pretty simple. 528 00:26:03,100 --> 00:26:05,400 I just look at which companies selling off the most. 529 00:26:05,400 --> 00:26:08,200 I go in and add to the ones that I think have the best 530 00:26:08,200 --> 00:26:11,100 combination of their current future outlook and the lowest 531 00:26:11,100 --> 00:26:13,000 price. Now, moving on, I want to jump 532 00:26:13,000 --> 00:26:15,500 into some news here. One of my largest Holdings which 533 00:26:15,500 --> 00:26:19,900 is VT property, the CEO went on to mad money last week and he 534 00:26:19,900 --> 00:26:24,100 shared with Jim Cramer some, some different categories that 535 00:26:24,100 --> 00:26:27,000 VG's looking into expanding into different real estate that 536 00:26:27,000 --> 00:26:30,000 they're in talks of buying and I want to give my action to this. 537 00:26:30,000 --> 00:26:33,400 Now, before we jump into this clip, I have to mention today's 538 00:26:33,400 --> 00:26:37,200 sponsor, you probably know them. It's FTX us which is one of the 539 00:26:37,200 --> 00:26:39,200 largest US regulated crypto exchanges. 540 00:26:39,600 --> 00:26:42,300 And this company's been on a sponsorship spree, you've seen 541 00:26:42,300 --> 00:26:45,000 their name all over the place. From the Miami Heat arena. 542 00:26:45,000 --> 00:26:47,200 They sponsored Steph Curry. Trevor Lawrence, Tom. 543 00:26:47,200 --> 00:26:50,600 Brady, Kevin O'Leary all these different bigwigs because they 544 00:26:50,600 --> 00:26:53,100 want to get their name out of their product and platform. 545 00:26:53,100 --> 00:26:56,600 Most people are familiar with ft x as a large crypto currency 546 00:26:56,600 --> 00:27:00,100 exchange and it is true if you're into And seeing you like 547 00:27:00,100 --> 00:27:02,100 trading this. You can go in and trade 548 00:27:02,100 --> 00:27:05,100 cryptocurrencies on FTX with with minimal fees. 549 00:27:05,200 --> 00:27:07,800 So their fees are far less than most of their competitors. 550 00:27:08,000 --> 00:27:10,900 They're also very well back. So there are a lot more stable. 551 00:27:10,900 --> 00:27:14,300 There are just valued at thirty two billion dollars so it's a 552 00:27:14,308 --> 00:27:17,500 pretty big Stable Company and they're moving into different 553 00:27:17,500 --> 00:27:19,500 categories. One of them that they're moving 554 00:27:19,500 --> 00:27:22,600 into right now and this is currently in beta with thousands 555 00:27:22,600 --> 00:27:25,400 of testers is their stock trading platform. 556 00:27:25,600 --> 00:27:28,400 This is what they wanted to sponsor me and get get more 557 00:27:28,400 --> 00:27:31,000 people aware of their I'm moving into stocks and they're doing 558 00:27:31,000 --> 00:27:33,400 this aggressively. They have a lot of ambitious 559 00:27:33,400 --> 00:27:36,000 plans with it. For one, you can simply go in 560 00:27:36,000 --> 00:27:39,400 right now do buys and sells of any company during Market hours, 561 00:27:39,600 --> 00:27:42,000 you can do fractional, shares, or whole shares, and you can 562 00:27:42,000 --> 00:27:45,700 also trade without worry of them selling your information for 563 00:27:45,700 --> 00:27:48,300 payment for order flow. A lot of the other brokerages 564 00:27:48,300 --> 00:27:51,100 are doing that right now. FTX doesn't do that and there's 565 00:27:51,100 --> 00:27:53,300 no fees what they're trading. So go ahead and set up your 566 00:27:53,300 --> 00:27:55,000 account right now. It takes two minutes to do. 567 00:27:55,000 --> 00:27:57,900 It's completely free. There's no bait and switch. 568 00:27:57,900 --> 00:28:01,500 There's no upsells or anything. That you simply open up an 569 00:28:01,500 --> 00:28:03,100 account. When you're opening up the 570 00:28:03,108 --> 00:28:05,600 account, use the referral code Carlson. 571 00:28:05,800 --> 00:28:08,600 My last name. That lets them know that I sent 572 00:28:08,600 --> 00:28:11,100 you a help support the channel, and when you use that code 573 00:28:11,100 --> 00:28:14,400 Carlson, you will be automatically credited $10. 574 00:28:14,400 --> 00:28:17,200 When you do your first 100 dollar trade. 575 00:28:17,200 --> 00:28:21,300 So your first 100 dollar trade, you'll automatically get a 10% 576 00:28:21,300 --> 00:28:22,900 return. So there's a link in the pink 577 00:28:22,900 --> 00:28:24,800 comment below if you want to sign up now. 578 00:28:25,200 --> 00:28:26,400 All right. Now let's go ahead and get back 579 00:28:26,400 --> 00:28:29,200 to this clip. Here we have the VTC 0 which is 580 00:28:29,200 --> 00:28:32,200 a A CEO of one of my biggest Holdings in my portfolio. 581 00:28:32,200 --> 00:28:34,800 I currently have a value of thirty seven thousand nine 582 00:28:34,800 --> 00:28:37,600 hundred and Vici around 6,000 of that gains. 583 00:28:37,800 --> 00:28:40,600 And I plan to continue adding more to this company. 584 00:28:40,800 --> 00:28:43,800 I really like the leadership. I like the future of it and I 585 00:28:43,808 --> 00:28:46,400 especially like the valuation and risk profile. 586 00:28:46,500 --> 00:28:49,900 I think the risk adjusted returns Avicii, in my opinion, I 587 00:28:49,908 --> 00:28:52,000 think it will be pretty good over the next ten years. 588 00:28:52,200 --> 00:28:55,300 But VG has started off with the majority of its exposure. 589 00:28:55,300 --> 00:28:57,600 In gaming. Real estate which is is 590 00:28:57,600 --> 00:29:02,000 basically gambling like Caesars Palace and MGM and the VTC 591 00:29:02,000 --> 00:29:05,300 O'Hara's explaining different experiential categories that 592 00:29:05,300 --> 00:29:07,600 they're going into. We're also very excited about 593 00:29:07,600 --> 00:29:11,300 growth in non-gaming which was evident when we announced our 594 00:29:11,300 --> 00:29:14,400 very exciting transactional. Cavett the first place outside 595 00:29:14,400 --> 00:29:17,500 of casinos that he mentions is Cabot, which I've known for a 596 00:29:17,508 --> 00:29:20,000 while that VG's going into golfing. 597 00:29:20,200 --> 00:29:23,000 So, this wasn't much of a surprise, one of the leading 598 00:29:23,200 --> 00:29:26,700 Place makers and operators and what we call pilgrimage golf 599 00:29:26,700 --> 00:29:28,500 globally. So we know that VG's, big into 600 00:29:28,500 --> 00:29:32,200 casinos, Hotels and golf, but what other categories might they 601 00:29:32,200 --> 00:29:34,500 be looking at now? Jim asks him if they plan on 602 00:29:34,508 --> 00:29:38,200 doing deals with the NFL and Ed has a different category of 603 00:29:38,200 --> 00:29:40,700 sport in mind. We know we haven't cracked the 604 00:29:40,700 --> 00:29:44,400 NFL yet but I will tell you that the global soccer Global 605 00:29:44,400 --> 00:29:46,500 football is a category. We're intrigued with the 606 00:29:46,508 --> 00:29:49,200 category in which we are having some initial discussions and 607 00:29:49,200 --> 00:29:52,300 Global soccer. Global football is a category 608 00:29:52,300 --> 00:29:55,500 that they're having initial discussions with and he goes on 609 00:29:55,500 --> 00:29:59,300 to highlight that Global soccer they believe will have more. 610 00:29:59,400 --> 00:30:02,600 Flex of cash and New Capital into that sport category than 611 00:30:02,600 --> 00:30:04,400 the NFL. So we've seen Vici grow its 612 00:30:04,400 --> 00:30:07,800 business from gambling hotels, golfing, and now they may be 613 00:30:07,800 --> 00:30:10,100 going into soccer. So I'll be along for the ride 614 00:30:10,100 --> 00:30:12,000 and I'll let you know if they announce any new deals. 615 00:30:12,000 --> 00:30:14,100 Now, moving up to a different category of company. 616 00:30:14,100 --> 00:30:16,400 My biggest holding and total value is Apple. 617 00:30:16,600 --> 00:30:18,600 This company's been a great performer so far. 618 00:30:18,600 --> 00:30:21,100 Even after the pullback I'm still up twelve thousand 619 00:30:21,100 --> 00:30:23,100 dollars. Now we know that Mark Zuckerberg 620 00:30:23,100 --> 00:30:24,800 is really excited about the metaverse. 621 00:30:24,800 --> 00:30:28,600 They bought Oculus, they've sold millions of these devices and 622 00:30:28,600 --> 00:30:31,900 their spending and around 10 billion dollars per year on 623 00:30:31,900 --> 00:30:34,400 research and development just for the metaverse. 624 00:30:34,400 --> 00:30:37,600 Just for a are Mark Zuckerberg sees the metaverse and these 625 00:30:37,600 --> 00:30:40,200 headsets as the growth path for Facebook. 626 00:30:40,200 --> 00:30:43,000 It's why they changed the name of Facebook to Metta and he 627 00:30:43,000 --> 00:30:45,300 recently just released a video of all the different headsets 628 00:30:45,300 --> 00:30:48,100 they're developing. Today, I want to show you for VR 629 00:30:48,100 --> 00:30:51,300 research prototypes that we're working on to invent displays 630 00:30:51,300 --> 00:30:55,200 that are as Vivid and realistic as the physical world and much 631 00:30:55,200 --> 00:30:58,100 more advanced than traditional computer screens we use today. 632 00:30:58,800 --> 00:31:02,300 First we need retinol resolution and that means getting up 633 00:31:02,300 --> 00:31:05,000 towards, you know, that 60 pixels per degree. 634 00:31:05,400 --> 00:31:08,300 So we built butterscotch? That's this prototype that lets 635 00:31:08,300 --> 00:31:11,200 you comfortably. Read the smallest letters on an 636 00:31:11,200 --> 00:31:14,300 eye chart. Second is focal depth, normal 637 00:31:14,300 --> 00:31:17,500 monitors or a set distance away. So you just focus on one place 638 00:31:17,500 --> 00:31:20,700 but in VR and AR you need to be able to focus on things that are 639 00:31:20,700 --> 00:31:24,500 very close and very far from you with varifocal and eye, tracking 640 00:31:24,500 --> 00:31:28,500 tech power, half tone prototypes but you focus on any object. 641 00:31:28,600 --> 00:31:32,700 Eject at any distance, we also need to fix Optical distortions 642 00:31:32,700 --> 00:31:35,800 and software so quickly that it's imperceptible to the human 643 00:31:35,800 --> 00:31:38,700 eye. Next is high dynamic range 644 00:31:38,900 --> 00:31:43,500 nature is often 10 or 100 times brighter than modern HD TVs and 645 00:31:43,500 --> 00:31:46,900 the highest and monitors and we need those colors to be just as 646 00:31:46,900 --> 00:31:50,000 Vivid to feel realistic. So we built Starburst. 647 00:31:50,100 --> 00:31:55,100 The first HDR VR system that we know of the goal is to fit all 648 00:31:55,100 --> 00:31:58,300 of these Technologies into a device that is lighter and 649 00:31:58,300 --> 00:32:00,100 thinner. Than anything that currently 650 00:32:00,100 --> 00:32:03,700 exists. So we built Halo kick to a 651 00:32:03,700 --> 00:32:07,000 working experimental device, using holographic displays that 652 00:32:07,000 --> 00:32:10,700 can already play PC VR experiences and there's still a 653 00:32:10,708 --> 00:32:13,700 long way to go, but I'm excited to bring all this Tech to our 654 00:32:13,700 --> 00:32:16,800 products in the coming years. Now while Zuckerberg and meta 655 00:32:16,800 --> 00:32:20,100 has been very open about their development, and their goals, 656 00:32:20,100 --> 00:32:23,500 and their process, even showing us, their prototypes, there's 657 00:32:23,500 --> 00:32:26,200 other big competitors that have taken a different approach. 658 00:32:26,300 --> 00:32:28,500 Apple has been rumored to be working on the same project. 659 00:32:28,600 --> 00:32:31,500 For some time, but all of this has really been rumors. 660 00:32:31,500 --> 00:32:33,200 We know that they've been working on this through 661 00:32:33,200 --> 00:32:35,500 deduction of employees and different people that have been 662 00:32:35,500 --> 00:32:38,700 hired at the company, different rumors and maybe a couple leaks. 663 00:32:39,000 --> 00:32:42,000 But so far this has been second and third party sources. 664 00:32:42,000 --> 00:32:45,100 Here is a clip right from the CEO of the company, the actual 665 00:32:45,100 --> 00:32:48,700 source and he's asked specifically about AR and VR. 666 00:32:48,900 --> 00:32:51,800 Hi, mr. Cook nice to meet you online. 667 00:32:52,400 --> 00:32:56,400 Chinese consumers are highly enthusiastic about VR and AR 668 00:32:56,400 --> 00:33:00,400 Technologies, but some of them Not very satisfied with the 669 00:33:00,400 --> 00:33:02,900 products currently available on the market. 670 00:33:03,200 --> 00:33:06,800 So what do you think are the key factors for a our products such 671 00:33:06,800 --> 00:33:10,400 as a I had access to succeeding in the consumer Market? 672 00:33:10,400 --> 00:33:14,400 He's a specifically about AR and VR headset Chinese consumers are 673 00:33:14,400 --> 00:33:17,200 excited about the prospects but they don't like the devices that 674 00:33:17,200 --> 00:33:19,200 much. What does Apple have up its 675 00:33:19,200 --> 00:33:21,300 sleeve? That's a great question. 676 00:33:21,800 --> 00:33:26,700 I am incredibly excited about AR as you might know and the 677 00:33:26,700 --> 00:33:31,600 critical thing to any Technology including a are, is putting 678 00:33:31,600 --> 00:33:35,900 Humanity at the center of it and that is what we focus on 679 00:33:35,900 --> 00:33:39,500 everyday. I couldn't be more excited about 680 00:33:39,500 --> 00:33:42,100 the opportunities we see in this space. 681 00:33:43,100 --> 00:33:46,700 This is where he gets to the important line of his little 682 00:33:46,700 --> 00:33:50,200 speech here and sort of stay tuned. 683 00:33:50,700 --> 00:33:55,400 And you'll see what we have to offer and sort of stay tuned. 684 00:33:55,400 --> 00:33:57,400 And you'll see what we have to offer. 685 00:33:57,600 --> 00:34:00,200 I don't know if that could be. More direct apple is going to 686 00:34:00,200 --> 00:34:02,400 release a virtual reality headset. 687 00:34:02,400 --> 00:34:04,300 Now, there's still lots of questions surrounding this. 688 00:34:04,300 --> 00:34:06,700 When is it going to be released? What is it going to look like, 689 00:34:06,700 --> 00:34:09,500 what type of technology is it going to use a report by Mark 690 00:34:09,500 --> 00:34:12,900 Germann on Bloomberg? Which is one of the best leakers 691 00:34:12,900 --> 00:34:15,199 of Apple news. He's been pretty accurate. 692 00:34:15,400 --> 00:34:18,199 He says that apple is going to flood the market with new 693 00:34:18,199 --> 00:34:20,300 products. Later this year, these new 694 00:34:20,300 --> 00:34:23,199 products should be somewhere between fall of 2022. 695 00:34:23,199 --> 00:34:26,600 And the first half of 2023, the new products will include for 696 00:34:26,600 --> 00:34:31,500 iPhone 14 models 38 Apple watch variations several Max with M2 697 00:34:31,500 --> 00:34:34,699 and M3 chips. The company's first mixed 698 00:34:34,699 --> 00:34:38,199 reality headset so they're calling it mixed reality low end 699 00:34:38,199 --> 00:34:42,400 and high end iPads updated earpod Pro are buds a fresh home 700 00:34:42,400 --> 00:34:45,600 pod and an upgraded Apple TV. Sounds like they have a number 701 00:34:45,600 --> 00:34:47,900 of devices in store. Now, Mark also goes into more 702 00:34:47,900 --> 00:34:49,699 detail on the mixed reality headset. 703 00:34:49,900 --> 00:34:52,600 He says that he's told the latest internal incarnations of 704 00:34:52,600 --> 00:34:57,300 the device, run the base M2 Chip along with 16 gigabytes of RAM. 705 00:34:57,500 --> 00:35:00,300 That's pretty powerful. That's like a lot of high end 706 00:35:00,300 --> 00:35:03,200 laptops having the M2 Chip and 16 gigs of RAM. 707 00:35:03,400 --> 00:35:05,300 They also say that they're already working on the release 708 00:35:05,300 --> 00:35:09,200 of the M3 chip, the successor to the M2 again, technically, these 709 00:35:09,200 --> 00:35:12,700 are rumors, these are reported from third parties but when Tim 710 00:35:12,700 --> 00:35:16,100 Cook himself, is saying just wait and see, see what we have 711 00:35:16,100 --> 00:35:18,200 in store. I think he's giving some 712 00:35:18,200 --> 00:35:21,000 validation to the fact that they're going to be releasing an 713 00:35:21,000 --> 00:35:23,100 AR headset. And I've said this many times 714 00:35:23,100 --> 00:35:25,800 and I know that it upsets people and I say because Facebook's and 715 00:35:25,800 --> 00:35:29,000 undervalued stock, lots of value investors have piled Add into 716 00:35:29,000 --> 00:35:31,100 it, in many cases, it's their biggest holding. 717 00:35:31,400 --> 00:35:34,800 But again, if I have to choose between Facebook, say R VR 718 00:35:34,800 --> 00:35:37,600 headset and apples, which one I think will be the most 719 00:35:37,600 --> 00:35:40,300 successful. I much rather bet on Apple's 720 00:35:40,300 --> 00:35:42,800 Hardware Division and their developer base. 721 00:35:42,900 --> 00:35:46,400 I think in both cases, apples ecosystem, their developer base. 722 00:35:46,400 --> 00:35:49,400 And their Hardware team is far superior to Facebook's. 723 00:35:49,600 --> 00:35:52,600 So, when I look at the two options, I think that apple is 724 00:35:52,600 --> 00:35:54,300 going to run away with this category. 725 00:35:54,500 --> 00:35:56,900 That's my prediction. I think they'll make Facebook 726 00:35:56,900 --> 00:35:59,900 become a small player. If Apple does eventually 727 00:35:59,900 --> 00:36:02,400 introduced their own VR headset. Now, that doesn't mean that 728 00:36:02,400 --> 00:36:05,500 Facebook's not a goodbye, it can still be a good investment but 729 00:36:05,500 --> 00:36:08,000 if I'm talking specifically about these two companies 730 00:36:08,000 --> 00:36:11,600 competing an AR and VR, I will bet on Apple every day of the 731 00:36:11,600 --> 00:36:12,500 week. Now, that's all for. 732 00:36:12,500 --> 00:36:15,200 Now, I hope you enjoyed the show and I'll have more content out 733 00:36:15,200 --> 00:36:16,900 later this week. So if you haven't already 734 00:36:17,200 --> 00:36:19,400 subscribe to the channel and we'll have another update out 735 00:36:19,400 --> 00:36:20,000 this week.