Investor's Edge with Gary Kaltbaum - Ai Trouble

Episode Date: August 9, 2023

garyK.com or https://garykaltbaum.com/

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Terms apply. Lounge access is subject to change. See Capital One.com for detail. Investor's Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Gary Colbaum, your host day.

Thanks of being with us today. Glad you're here, ladies and gentlemen, happy that you are listening. It is my son Aaron's birthday, August 9, 2023. I have to tell you, he's now 32 years old. as of today. Do you still remember when he was 8, 9, and 10, and we used to bring both him and Eric on every year for their birthdays, and you'd call in and sing happy birthday. We had people play music. We had boy bands call in, country music people call in. We would give out prizes. My son's now 32. I'm getting old. Anyway, happy birthday to my son. Ladies and gentlemen,

And let me start out. Those that follow this show know that through the years we've talked about Hawaii many times. As I have visited Hawaii, I think probably now 12 times. And we're always going to Maui. And one of my favorite, well, we used, at the beginning, we used to stay on Kahnapali Beach, but then we really started like in Wailea, so we would stay there. but my favorite place to always go every time we're there is Lahaina. And I don't know if you saw, but there's been a hurricane south of Maui,

didn't hit, but the winds whipped up and caused some massive fires that went into Lahaina and pretty much destroyed that beautiful street, front street. where I would park my carcass and hang for hours upon hours throughout the day as well as in the evening. Go look at the video. It is heartbreaking. The pride of the Hawaiians have for where they live in their home. I can't imagine what they are going through. to give you an idea you would think it's like a little bit of a western type town but you walk the street and what you have

you got the cheeseburger in paradise you always go I go eat there and you got a couple real nice restaurants but the nice restaurants let other people go there they got the snow cone place they have these great art galleries Ron Wood of the Rolling Stones used to have all this stuff there. The last time I was there, it was gone. But these great art galleries and these great stores with all these chotchkes. And then you have where the marina is where the last time I was there

in Maui about it, what was it, two years ago, I think, what was it? We took a boat out and we scuba dived, snorkeled, and just swam and drove the boat with all these spinning porpoises. It just My heart is breaking For the videos that I'm saying They have this thing They have a banyan tree This monstrous banyan tree

In this little part called the Lahaina Banyan court Where you just sit around Hang out put your feet up Meet the locals Talk to them Find out more about them Under the shade You know

And more But of course more importantly let's hope nobody's injured but we are hearing rumors have it there is some death people that are burned and I don't know what to tell you it's like my home away from home

my goodness go check out the video and you'll see what we're talking about all right we have to move on unfortunately we wanted to start with that and you know I was thinking about you know somebody won the mega millions here in Florida. Neptune Beach, they're going to get something like $500-something million after tax.

They can take that, make $25 million a year. Riskless going forward. I was thinking to myself, man, if I won that, the first thing I do is once everything works out, send $25 million to Maui to do whatever they can to fix that thing up. But no, I didn't win. In fact, I bought what I spent, I spent 20 bucks, which I don't usually do. I like didn't even hit a number. Anyway, that's the lottery for you.

Yay. All right. So, do we segue? I guess we have to. So coming into today, we talked about a few things. mainly number one, the distribution or the selling of a lot of technology, software types, getting squished, getting squashed, gapping down on earnings or guidance or whatever. And that was what we call on the worrisome side.

names that had held up like HubSpot and Palo Alto Networks and Shopify and Crowdstrike and Datadog and synopsis crushed and many others and it's always a worrisome signin when you have what we call the risk on areas get hit but that doesn't mean the rest of the market have to be crushed and it doesn't mean the rest of the market's going to be crushed But today, it worsened. And let me explain what happened today. Super Micro SMCI finished down 80 today. Now, keep in mind, it was so extended that that $80, $81 drop,

just took it below its 50-day moving average. But it really took away the cache. the pixie dust of artificial intelligence stocks they were up strong in the last few months off of Nvidia saying numbers are going to be bigger

Microsoft saying numbers will be bigger throughout the years but all of a sudden the numbers weren't so big so Nvidia was down 20 today just for starters and I bring that up first because leading name, possibly the number one name in AI, down 20, and others. So rough day except for a few areas and we'll get into it. But just today we'll not go down as a good day.

They try to rally it. It was really down a lot early and they tried to rally it and then they sank it into the close. Sunk it into the closes it sank or sunk they dropped it into the close and as you know we are we have the belief that the close of the markets really do count a lot So rough rough day Facebook down seven guess what that's kind of AIish Microsoft down almost another four that's a aish and that's trading below the 50 day Semiconductors down 70 and they were basically winning off the AIS. Salesforce.com and the Dow is all but cracked the 50 day. AMD. Semiconductor cracked the 50 day. And just more bad reaction to earnings though. There was some good ones.

And that's basically the gist. A rough, rough day again. The market wrap brought to you by Investment dash models.com. That's Jim Roarback, one of the great market timers. No gray areas with the man you're either in or out of the market with its proprietary indicators. Go check it out. investment dash models.com so the Dow was down like 200 early then it was up the NASDAQ was down 180 early and then it was only down 60 and then in the last hour the Dow finished down 191 S&P 31 NASDAQ 162 NASDAQ 100 171 transports 134 the SOX almost 70 advanced decline's not that bad 1821 New York 1526 on the NASDA not so good but again on the NASDAQ you ready for this 168 new yearly lows only

63 new yearly highs and if you look at the new yearly highs believe me there's not 63 there's a bunch of non-operating companies in there but the most important part of the equation a lot of the risk on yikes and some leading names leading growth names going night night going by the wayside and that's something to watch on the other end oils on higher oil prices lower beta stuff caterpillar was up today deer was up today

that type of stuff how long that lasts beats the heck out of us more up next on this the one only investors edge hi I'm Gary Kalpom hosted a nationally syndicated radio show Investors Edge we're not just handsome radio people we manage investors money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed.

We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals to determine a proper investment strategy. If your current approach to investing is not getting you, to where you would like to be, call us to make an appointment for a complimentary portfolio review. The number to call is 888-4-2-5-59. That's 888-4-2-5-59.

That's 888-4-2-2-5-59. Investment Advisory Services offered through call-bomb Capital Management. This message is brought to you by the Capital One VentureX card. Venture X offers the premium benefits you expect. Like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide.

The Capital One Venture X card. What's in your wallet? Terms apply, lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio.

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It's time to switch on the integrator units and get the brain cells working. You're listening to. Hey, this promises to be fun. Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. and welcome once again to Investors Edge.

The hope today was that the 50-day moving average would contain things, and in the middle of the day when the NASDAQ was rallying, it was getting contained, but the NASDAQ did finish a wee bit below the 50-day moving average, so one good day can get it right back above, and the same with the NASDAQ 100. That said, even when the market was rallying, right into our peeps that boy a bunch of damage done we've given you the short shrift the sampling if there was only a hundred stocks in the market and then they start going by the wayside and that changes the market's condition well it worsened a little bit more today now that said on the

other end there's some good reactions Celsius that's that drink Up 29 at the close on the big gap today. Very good move to a new high. For one. Ackamai break out to new high on earnings, A.K.A.M. Brothers coffee. Up five. Good day. Duolingo up nine. Good day.

Oil's up today. Good day. But then you got the downside. And it's icky. It's yucky. You just got to be a little bit more defensive here. That's all. How long it lasts, how far it goes, don't know if the 50-day moving average is breached on the NASDAQ and NASDAQ 100.

Until it can get back above, you've got to be wary. But the best thing about that is we explained it to you, we'll start really have an eye on what's not going with it. Where's the strength? why isn't it going down and right now we're not in that position just yet we kind of know where the strength is we've mentioned it to you it's the ones that gaped up are real strong off earnings but then we got to see if the market worsens what happens a little rough going here one of the reasons we think oil prices 8420 now it was 68 just over a month ago that's

a loss of money. Drivers, truckers, you want to buy tires, they're going to go up in price. Solar panels, they're going to go up in price. Do you know how many products are used with petroleum? A bazillion. They're going to go up in price.

If this sticks, of course. 10-year yield back above 4%. I got news for you. That's not so good. And let me give you some info. I want to thank some of my friends for sending this. and we check it out. As we have told you, credit cards.

The amount of money on credit cards now is the highest ever. First off of the first time in history, there are 600 million credit card accounts. That means there's 2.3 credit card accounts per U.S. adults. Credit card is over a trillion bucks. The interest rates on credit cards now in the last year, gone from 14 to 21%. New car loan rates have gone from 4 to 8%. Use car rates are at 12%. Catching my drift?

What else? Oh, the lying sack in chief in the White House? You know, I've dropped the deficit in the first 10 months of this year. 1.62 trillion deficit. First 10 months of the fiscal year. That is a record in 10 months. We're not talking about COVID years. This is a record in 10 months

From the liar-in-chief From the White House Who's making Trump look like a truth-teller We're going to be somewhere around I think 1.9 to 2 trillion bucks this year In deficit Oh, we'll talk a little bit more about the liar and truth in a froum And it's just to cover our butts

On what we've been telling you about the corruption And why do we say this to you? You know what the corrupt are in politicians. They're great at using our money in corrupt ways, and if they don't have enough, they go into debt. Is it any wonder, this guy's break in all records?

We'll get back to that in a little bit. That's just some of our worries. And they're pretty darn good worries. The other little thing is there's not a lot of housing inventory, and the reason that is that people and tons of people adjusted their mortgages. They were able to take it down to 3% and sometimes less.

Well, mortgages are now 7. So if you own a home and you got a mortgage that's 2 and 3 quarters of 3, why the hell do you want to transfer into another home and get 7? What happens if that changes? What happens if that changes? We'll be watching. Just the little things. Mui and Portante that we watch over for ourselves,

you, our families, and of course the market, we'll kind of sort of flush it out if things worse. Next, we warned you. Just another thing we couldn't believe Wall Street did. Amazing what they foist onto your backs. This one happened, I think it was somewhere in the neighborhood of October of 21. You know what we work is, right? this company that has these work spaces, they buy up a bunch of office and they break it up

and you lease it and whatever. And they had this CEO and he, I don't know what happened there, but they kicked his ass out. And they had all kinds of problems. Well, they still had a bunch of problems. And they were still losing money. Yet these ass clowns put it into a SPAC at 10 bucks. I came on to this show and I said to you,

I cannot believe they're putting this back into the public's hands. And I think I use the word scumbags on this show. I don't use that often. I think I pretty much said I can't believe these scumbags foisted this crap out into the public domain again. And why'd I say that? I went on to tell you, there's no way it lasts as a going concern. There's no way. There's no way. COVID. We already knew a lot of people weren't going in anymore. And we thought the culture was changing. Well, the stock finished at 13 cents today, down 10 cents, 42%. And they have stated that they do not believe they will be able to continue to stay as a business. We'll put a bow tie on that up next. Or a bow. I'm Gary. This

the one known investors edge. We're listening to. America is talking. Investors edge. He's got to be pleased with that. The crowd is just on its feet here. He's a Cinderella boy. With Gary Coltbaum.

It comes highly recommended. You're going to feel better if you talk to him. So, we work. The company discloses as a result of the company's losses and projected cast needs combined with increased number of churn and current liquidity level. levels, substantial doubt exists about the company's ability to continue as a going concern. Additionally, we weren't downgraded to neutral from a buy at BTIG research. Who the hell is BTIG research that had a buy on this?

Idiots. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet?

Terms apply, lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confuse. used relatives, and saying things like, Sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster.

The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen. Apple Podcasts, Spotify, and about a dozen apps your cousin's swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. This message is brought to you by the Capital One VentureX card.

Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet? Terms apply. Lounge access is subject to change. See Capital One.com for details.

Oh, here's what BTIG research said. Unfortunately, a further road in our conviction second quarter of 23. Occupancy declined for the second straight quarter, adjusted EBIDA was well below the low end of guidance and the quarterly cash burn rate remained stubbornly elevated. Additionally, we worked to announce the departure of three more board members, hell yeah, including Daniel Hurwitz, who joined the board in June 22, assumed the chairman position, followed the departure of some other dude and was leading the special committee's search for a permanent C&O.

Given all the above, we are no longer confident that company can reach profitability without the need to raise incremental capital. We downgrader rating from Biden neutral. Yeah, at 10 cents. I'm not going to mention the analyst's name. We take no joy in that. But what are they thinking? I'm on the outside looking in.

It was so easy to figure out they had no shot. That's why we really don't pay attention to anything but price. Imagine riding this from 10 down to 10 cents and then downgrading it. They had a restructure $3 billion in debt in March of this year. Do you know why a company has to research? structured debt because they got problems. In February, the chief legal officer, chief compliance officer, left. How hard is it to figure this crap out?

Easy for us. Watch price, kids. Quite often, it'll tell you everything you need to know about a market. Simple as that. Watch. My favorite one of all time, by the way, my favorite one of all time that I saw I think it was 91

so I lived in Boker Raton, Florida, right off southwest 18th Street. I lived in a place called Boka Point Country Club and about a mile from my place there was a strip shopping center. It was a strip shopping center. It had this great bookstore, magazine store, I used to get my professional wrestling magazines. And when I would bet football, the gold sheet in the sports reporter, it had a health club and some other stuff in there.

But they put up an outback steakhouse. You couldn't get it on the weekends. During the week, there were like 90 minute wait, sometimes two hours. And Barron's puts out a negative article on it that, America is going away from beef and meat. That was the article. I think Outback went up like 10, 15-fold from there. As they took that restaurant, they already had a bunch.

They put them everywhere and everywhere and everywhere, to the point where they changed their name to Blumen Brands. Now they're a very mature company. As I said the other day, and I meant this. If Taylor Swift was a stock, she'd be the strongest stock in the market. That's what you've got to look for. And when you read a we work, oh, businesses down, they're losing money, they have to restructure debt. Get the hell out of Dodge.

Oh, and people are quitting the firm. It's not hard to figure out. There really is a constant in my business. Bad gets worse. Worse gets worse. and then splat so we pay attention

we don't listen to opinion the market is a great arbiter and most often the final arbiter remember back in 07 the financials didn't crash in 08

it was the final drop they started topping in 07 the market had already start to flush it out. And we remember it very carefully where the Dow dropped a thousand points and the financials let it down. And then the Dow rallied up a thousand points

and the financials hardly budged up. And then the Dow topped and the financials led down. And we had no idea that the Bear Stearns and the Lehman brothers and the Wachcovy and the Washington Mutual and the countrywide financial and whoever else, Merrill Lynch. We didn't know it was going to be. City Group should have been under. They saved it. By the way, Citigroup right now is trading it 44 bucks. That's $4.40. They did a one for 10 split. The market knew it early on. That was another one of our great calls just because we led the market

led us. And we didn't own any financials. So back to Wework. Holy crap. Comes out of to 10 everybody gets excited for one day i think it goes to 14 bucks initially and 14 down to 10 cents excuse me closed to 13 cents today and it was telling you all along and people were quitting and losses were mounting and all you have to do is read what's going on in office buildings in all these cities who needs we work one plus one one and very often does equal to in the markets. Hope you keep listening. We have a pretty decent feel.

Decent feel, not 100%, decent feel, especially when things go awry. Like I read about Rivian, which, by the way, has been acting much better, but still what is still down 90% from the highs, on how much money they lose on every car that they sell is just like gargantuan but they're losing less than they did last year

what kind of a business is that and how long can it last without having to raise money go deeper into debt we'll see and that's why we're so insistent We're so insistent. Got to have companies making money.

I want companies who are making money. Cost of something is a buck and you're selling it for 110 or 120 or 150, whatever it may be. And that's why in bare markets, they will just crumble anything that loses money. In bull markets, you get Teflon. Not in bear. And when another bear hits, we'll say the same thing we did in the last one that kept you out if you listened. And by the way, there's some things that are in bear right now. And some things that were bullish that are turning into bear right now. Up next, Joe Biden,

he's running the country. This is one and only investors edge. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet?

Terms apply. Lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster.

The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Sprinker distributes it everywhere people listen, Apple Podcasts, Spotify, and about a dozen apps your cousin's swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. You're listening to What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! In the Gester's Edge. With Gary Culpa.

Unfortunately, the mayor in Maui has said that six people have passed away in the fires. And hospitals are overwhelmed with burn patients in some areas. They're also saying many people escaped into the ocean to get away from fires and were picked up by boats. Right now, 911 services and cell phone services. are pretty much down, and they're doing everything they can. And, you know, one resident described, I'm looking at video right now. It looks like a horror movie.

There's erratic winds and steep terrain there, and that's what's challenging, and that is what the problem is. My goodness. In other news, we told you, what about a week ago, I'm going to actually tell you when now. I'm pretty sure by next Tuesday or Wednesday, the Georgia prosecutor will indict President Trump on a bunch of indictments for trying to interfere and change the election. That is what's coming next.

Just reporting the news to you. You know, yippee. You know where I stand on the man. I am hoping he drops out. There's a couple of good people in that party who would make much better president than him. And we certainly need the guy running the show right now to get the hell out of there. It has now been found out, in fact, that the Biden family and quite a few of them, more than $20 million in payments from some characters from Romania, Russia, China, Kazakhstan that had business with the United States or was trying to do business with the United States.

You're not going to hear it at CNN, MSNBC, NBC, ABC, CBS, New York Times, Washington Post, because they're a bunch of corrupt, sleazy, slimy, not doing their job of holding all. to account, not just the ones they don't like. Over 20 million bucks. Just hand it over for nothing. Hunter Biden didn't do squat for any of these people, got millions. It was all influence peddling, and they learned from two of the best, the Clintons that are out of the news now with their couple of hundred million bucks in their big mansions and their foundation that took in bazillions of dollars and didn't pay out much.

And no media covers it. And that's why we cover it to make sure you know it is collusion between the media and the politics and the media don't give a crap. And Trump had it wrong. There wasn't the fraud. voting. The collusion was the media and social media and blacking out any bad news on Biden and Hunter Biden and his family before the election while ripping the stuffings out of Trump. It was not fair. There was a big gigantic lie on Russia collusion. They did make a bunch of stuff up with that Adam Shifty Shift. Trump was right about all that. But boy, he turned into a big,

gigantic sore loser by claiming the election itself was fraud. With a cast of characters like Giuliani, who went from a great mayor to a weirdo and Sidney and Sidney Powell and the like, both of these men should get the hell out of the race and leave us the hell alone and have some adults show up. But that's not going to happen, it looks like. Well, indictments can change that and Joe Biden's age can change that. But as of this second, it's these two. I wish I led a different path years ago because I'd kick both their arses in the election with just three words.

We the people. Set the conditions for all of you to accomplish and accelerate and do better for your lives. keep taxes low, regulations in check, protect the citizenry by making sure crime pays, making sure countries like China and Russia know we mean freaking business and if you play with us, we ain't going to play back, we're going to be dead Syria's back. The Permian basin would be going full tilt

with more oil to keep oil price. is down. Education. We would lift up the educators like there would be no tomorrow. And the people in the unions in the education department, you don't start answering to us. We're going to knock you out on you. You know what.

They're failing the education system. And when charter schools try to come up in certain states, they knock them down because some of these governors, like in Jersey don't give a crap about the kids. They give a crap about there's certain voters and unions. That would have been me. And I would do everything in my power.

Everything in my power to get a better Nets team to finally win a World Series because they haven't won since 86 and do everything in my power for the Knicks. What? They haven't won since 72? How do New York teams not win championships and so long with all that money. As president, obviously that's a little bit of sarcasm.

And as president, I'd make sure I have front row at WrestleMania. That would be my, in a nutshell. How hard is that? Congress would not be able to trade stocks ever again. That would be gone. Corruption out. Ethics violations. Have a nice day.

Simple as that. And that all said, crappy finish to the day. Wish it was better. Have a great evening drive carefully. I'll be on with Varney and Company tomorrow. About 9.25 a.m. Gilmore Alice on the show tomorrow. You don't want to miss that.

And until tomorrow, have a great evening drive carefully. I'm going to the pool. When you get home, make sure you hug your children. Seriously. They'll feel better. You will feel better. Have a great night, everybody. Peace out.

Good night. This has been Investors Edge with Gary Cultbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryKK dot com.