Investor's Edge with Gary Kaltbaum - Earnings Time

Episode Date: April 24, 2023

Follow Gary on GaryK.com or http://garykaltbaum.com

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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 Coltbaum, your host. A thanks for being with us today. Glad you here, ladies and gentlemen, happy that you're listening. It's April 24, 2023.

Hope you had a great weekend. And you know, we believe where you're protectors. right especially when things go awry you know in bull markets you know we talk about markets here and everything that affects markets and unfortunately so many people affect markets these days but when you're in a bull market you know everything's cool remember what we always say to you we have these certain lines there's nothing wrong as long as long as markets go up even if there's a lot of bad things chipping away, we call them termites, as long as the market's doing fine, there's nothing wrong, everything's a okay, until the market recognizes it. And what we always say to you,

and by the way, this is a very important lesson for you, I hope you're listening very carefully, and we always say to you that ultimately valuation will matter. Ultimately, you can't pay $20 and trade it in for a dollar. Ultimately, you really need to look underneath the surface, especially when we go into bearish phases, bearish markets. Ultimately, you would better be careful when bubbles pop. We have given you the poster child. I'd like to say it was one of our greatest calls for you on radio and TV.

and it was, but it was really pretty easy. And we're talking about Rivian, the electric vehicle company that they brought public in, what was it, in November of 21, and at the IPO, they gave it like a $75 billion market cap with no sales. But days after the IPO, because of the IPO, because it got touted, it went to a market cap of 160 billion. Their market cap was almost as high as GM and Ford,

even though Rivienne had no sales, and GM in Ford had 250 billion in sales. That's what we mean by this. I just want to start the week, because as of August, amazingly, while we pretty much know that bed, bath, and beyond, will go out of business, file bankruptcy, shut their doors, be worthless. And how do we know this? Well, they couldn't pay their debt. They were already shutting a lot of stores. They were losing three bucks a share, a billion dollars a quarter. They actually stated, we don't know if we can be a going concern going forward.

We're going to try. And we said to you, odds favor, they are going to go bankrupt. Maybe stay in business, but it will wipe out shareholders. That didn't stop another short squeeze from going from $4.54 to $30. bucks in days. In three days, 10 to 30, people didn't give a crap. They knew it was front and center,

that there was a chance that any day you wake up and it's poof. Well, it just so happened, it went from 30 back to eight in two days. But then you went through the slow drift, the slow death, to where now bed, bed, bath, and beyond has announced bankruptcy. They are now in the midst of shutting their stores,

letting people go, who knows, maybe there's going to be some sort of saviour out of bankruptcy. The stock closed today at 19 cents. But in August, 454 to 30, but I'm not done. In January of this year, It went from a buck and a quarter to almost six bucks in two days. In February, early February, it went from three to seven the same day before gaping down four bucks the next day back to three. People were still willing to bet their dimes knowing.

I remember the day well where it went from three to seven closed around. little under six and I said to you these people are nuts maybe it even goes higher maybe they squeeze it up the 30 bucks but we said to you ultimately and the next day they gapped it down at three anybody who bought late in the day that early day in February was down 60% on their money and all we're just trying to do it's less in time That's all. Bad markets, bear markets, will drop the curtains. I think it's Buffett who says, you only know who's swimming naked when the tide goes out. Something to that effect.

So if there's anything ever, I can ever teach you, preach to you, plead with you, without telling you whether to do or not to do. Just know what the hell you're getting into. And we say that knowing last week, two biotechs with no sales were bought out for billions. I'll never play those. Because of the hundreds of biotechs over the years where the placebo did better than the drug,

in phase two trials and the stock gaped down 50%. By the way, I've seen some gap down 90%. So I just wrote Bedbath and Beyond Down. There's going to be more of them going forward. And let me just say again, remember what I just said to you,

maybe the last time when it went three to seven was going to go to 30 again. I think that's what people were betting on. I just hope if you are doing that, you do it with money you can lose quickly and with your eyes wide open because that takes me to the next part of the equation what did we warn you about the latest do you remember what we warned you about recently the speculative froth in artificial intelligence you remember that right the speculative froth froth in artificial intelligence.

You got me? Symbol AI, they ramped that sucker up to $34.68. 3 weeks ago. The company has some revenues. Not a lot. But they've never made any money. And at the highs, I had a 3.5 billion market cap with a couple of hundred million in sales. It's gone from 34 and change to 17 and change.

Last I looked in three and a half weeks, that's a 50% drop. Symbol GFAI, they just ram that from 4 to 36. They lose crap loads of money and doesn't have a lot of stock in the float. They had that at 37 bucks 10 days ago. it's 17 and we don't even know why it's at 17. So just out of the box, careful. It's all we want from you.

Just be careful. Know what you're getting into. Up next. Whatever else, the markets. I'm Gary. This is the one only Investor's Edge. Hi, I'm Gary Kalpom, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people.

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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 to. better than this. Okay. So let me read to your bed, bath, and beyond. They announced

It and Certain of its subsidiaries filed voluntary petitions for relief on the Chapter 11. To facilitate this process, the company has received a commitment of approximately $240 million in debtor and possession financing from Sixth Street Specialty Lending. Following court approval, the company expects this finance to provide the necessary liquidity to support operations during the Chapter 11 process. The company's 360 bedbath and beyond and a 120 buy-bye baby stores and websites will remain open and continue serving customers as the company begins its effort to effectuate the closure of its retail locations. While the company has commenced the liquidation sale, bedbath, and beyond, it tends to use

the Chapter 11 proceedings to conduct a limited sale in marketing process for some of all of its assets. The company, that's enough. And a lot of people are going to lose their jobs, unfortunately, which we hate. And in case you don't know, bed, bath, and beyond was one of those category killers. It was one of those category killer retailers. But guess what happened? They took their eye off the ball.

That's the best way I can put it. That's all. They took their eye off the ball. They also, one would suggest, you know, the Amazon thing. And they didn't adjust. they could have probably stayed in business. I believe, and you know, I say this meekly and mildly, mismanaged. They're not the first, they're not the last.

Mismanaged. And as we've always said to you, right here where I live, we had a target, we still have the Target store. We had a Kmart. And in that Kmart, they sell exactly the same things as the Target store. You go into each store The Kmart did not have food The Target where I'm at has food But overall pretty much the same stuff

Why did the Kmart store shut And the rest of the Kmart stores Because They let the store turn to crap When you walk into Target It's bright The shelves are clean They're full

when you walked into the Kmart store, the shelves were dirty, the floors were dirty. It was like they didn't give a crap. Some of the shelves were empty. If you looked for help, there was nobody around. And of course, you know what's happened to Kmart stores. I'm always amazed, really amazed. And that's why we watch closely.

And that's why we watch closely. For the things we see, there's not much of a trick. restaurants, retail, auto dealerships, anything like that that you see. Not hard to figure out, you can just tell. And it's still not easy. So just, again, we're a big believer. Watch price. Just watch price.

It tells you a lot. Bedbath in Beyond was telling you for a long while there was trouble. Yet people were still speculating with their hard-earned dollars, and this last go-round, people lost 60% overnight that held. And I gather a lot of people. And as I look to my left, just looking over to my left, I'm looking at Virgin Galactic, a SPAC, that they hyped up to 61 bucks from 10.

That's now three and change. They never got off the ground. They never had the sales. I'm looking at something called Fubo, TV live streaming, that have lost just a ton of money, 60 down to one. Remember we tell you about bare markets? They destroy companies that lose money, and this one's been classic again. It's been classic.

They have crushed the specs and the SPACs and the money losers. Not all. There's some money losers still out there where the stocks are fine. What did I say to you last week when I go to my IPO page? A ton of them are trading at 50 cents because they brought them out at the end of the cycle. Worse and worse companies. When I use worse and worse, just that means less sales, loses money or no sales. These things have gone from whatever price they came out to 50 cents, 30 cents.

Some are gone. So we just wanted to start the show because Bedbath and Beyond stuck out for me. And I looked at a couple of these AI stocks that they're crushing. and leave no doubt artificial intelligence is a something. I've been studying it and I'm still far away from getting it and where it's going to take us. But I do know what speculative stuff looks like. And for all I know, these AI stocks I just mentioned,

you skyrocket from here. They froth them up, speculate them up. That could happen. Just don't be the last one. in when the $20 bill is buying the $1 bill. So that's how we start the week. And a very big week, that is. Massive earnings to come.

3M, GE, GM, McDonald's, Google, Packar, Pepsi, Spotify, UPS, Verizon, Chip, Boeing, Visa, Texas Instruments, Microsoft, Juniper, Chicago Mercantile Exchange, Hess, Hilton, Umana, C.H. Robinson worldwide, eBay, Rider, Old Dominion Freight, Norfolk, Southern, Facebook, KLA Tent Corps, Riley Automotives, Roku, Service Now, Terodyne, Caterpillar, Crocs, Been Strong, Honeywell, Hershey's, Harley Davidson, Waste Management, Tractor Supply, Merck, MasterCard, First Solar, Intel, Gilead Scientist, Capital One Financials, Amgen, Amazon, Skechers, U.S. Steel, Chevron, Exxon, and that's just a few this week. There's a ton. So just get ready. We have no clue which one does best or worst.

Up next, today's market. I'm Gary. This is the one only investor's edge. Energy season always has a way of sneaking up on you when you least expect it. One minute you're listening to your favorite podcast. You're locked in hanging on every word when. And bam! A surprise bonus episode drops, brought to you by allergies!

The itchy, watery eyes hit nonstop sneezing kicks in, and a runny nose forces you to hit paws. Suddenly everything is a trigger, the flowers, the breeze, it feels like even the trees are out to get you. Luckily, Kleenex ultra-soft tissues have you covered. They're allergist approved and silky soft to help prevent skin irritation so you can stay comfortable all season long. let allergies put your life on pause, especially not when you finally got your cue exactly where

you wanted. Be prepared with Kleenex ultrsoft tissues. For whatever happens next, grab Kleenex, add them to your cart today. Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy Choice Simply steamers are delicious and healthy. The tray-and-tray steam technology delivers crisp veggies and tender protein and tasty selections, like Healthy Choice Simply Steamers' grilled chicken and broccoli Alfredo. It's a satisfying meal with 28 grams of protein and nothing artificial. Healthy Choice Simply Steamers. What having it all tastes like.

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We're listening to America is talking. Investors edge. He's got to be pleased with that. The crowd is just on it. feet here he's a Cinderella boy with Gary Colbom comes highly recommended

you're gonna feel better if you talk to him and welcome once again to Investors Edge thanks for being with us today I will tell you this was one of those days where they were really

teasing some downside and some important stuff but held them because the Dow got better but another one of those split days today so the market wrap is brought to by Investment-Dashmodels.com. That's Jim Rohrabak, one of the great market

timers. No gray areas with the man you're either in or out of the market with his proprietary indicators. Go check it out. Investment-dash-models.com. Dow up 66. S&P 3, but the NASDAQ down 35, NASDAQ, 100 down 31. The SOX was down 14. We'll explain the second. Transports up 50. Advanced declines, 22, 16 in New York, but 1725 on the NASDAQ. And again, A lot more new yearly lows on the NASDAQ, the new yearly highs, a little bit better on the New York. Before I get into what was getting a little oil, strong day today, strong day in oil prices. Remember, they gapped them up on OPEC, and then they pulled them right back down. They bounced it today.

I have yet to scan. I have to look them over, see if anything shows up. and when you have a chance, go look at natural gas. UNG is a symbol for it. Just go take a look. Maybe bottoming. So good day there. And it was a good day for what we call the stuff.

So let's see. We mentioned the transports was a minor league, though. You had a little bounce in some industrial types and some economically sensitive. The all over the map managed care stocks were green today. Housing, strong group, green today. In the Dow, you had some better Dow. But earlier today, and this is to be watched, the NASDAQ was breaking below a line of support.

And finished, you ready for this? within three points of it. We call it the 21-day moving average. It is the stronger moving average than the 50. We feel like it got defended. The NASDAQ 100 sitting right on it also, within three points. The semiconductors, though, no. Not only below the 21, but below the 50 day,

but was much worse today. And then there's the software, symbol IGV. close to 29879 the 21 day is 29906 27.27 away so we'll call that defense but as they deteriorate they deteriorate a little more and a few more names go by the wayside but we'll call it a decent defense stay even though they were down today. And I will state for the record it is imperative they hold here, or next in line will be that 50 day. Now, mind you, and this is important.

You got some biggies reporting. The good news is they've held up the indices well because of how much influence they have. On the other side of the coin, they better continue to hold them. Best way I can put it. because ultimately, listen carefully. You can't have an index go up while the advance decline line goes down. That tells you the plethora of stocks are going down while just the select few are going up. And basically what that reminds you of is parking into the most liquid areas until it's time to go get them.

So the next two weeks, we'll call it Mui Importante. I took six years of Spanish and I think I know 10 words. But I have promised myself to learn Spanish all over again. I heard it's much easier with some of these apps. And I want to learn Italian too. So that's the story of today. Yields were down, dollar down a little bit, gold up a little bit, just a mix bag. But an important finish on the day.

the question is, was it about the Dow holding and bringing things back up? Because I got Newsfea. At 1220, the Dow was down 90. And at that time, the NASDAQ is down about 110. And it was not a pretty sight. So again, the next few days and some big names reporting, we'll see what happens. We have absolutely zero clue how they report and how they react. Hopeful, hoping, doesn't matter.

Hope and prayer doesn't work. I've tried it. Financials, I would call them still troublesome, especially the regionals. Just so you know, the regionals are hovering around the lows of this crash. The regionals. The big guys, much better, much, much better. than the regionals. And I noticed that First Republic reported after the closed today and is not happy. Closed at 16, it's $13.40. So I'll have to see what they have to say. And I am asked very often about whether I think we're out of the woods or not. I don't know. I really do not know.

I would be surprised by not much. First Republic beats by something. 72 cents but announces a 20 to 25 percent workforce reduction. Oh, here you go. Deposits are down 40.8 percent from December 31st. Deposit activity began to stabilize the week of March 27th and has remained stable but has not grown. That is your story. And what have I said to you? I hate saying it, but I wouldn't invest in regionals or put my money with the small ones. You're not going to lose anything, but why even deal with it? They've been backed up by a government that doesn't have any money to back it up. Their hope and prayer mode.

But I do think we're okay, I think. We'll be way on top of these earnings, and just so you know what we do. So they have the aftermarket report right now, and symbol TENB is a name that has been acting better in the software, but is down 18% in the aftermarket, buy-bye. CDNS, by the way, downside guidance. CDNS has been a strong name in that area, down 10 bucks in the aftermarket on downside guidance.

So there's two. But then you have symbol MEDP. Just letting you know. You ready for this? The stock has just gone from 241 to 187 recently. It's 233 in the aftermarket up a whopping 46 bucks. Like 25%. Guess what we do after the close today?

We go over what the hell's going on there. It's a medical research, clinical development, and they have earnings and sales, and that's what we do. And whatever reports, we go over. exhaustive going over and we start with the biggest reactions up and down and then we look at the big names

and see what we can find and then see where they open here's one that's really weird Ameriprise financial an important financial name closed at 313 I got it at 280 in the aftermarket that's a big surprise

I'll have to take a look at that one. Up next, and whatever I can think of. This is the one only investor's edge. Energy season always has a way of sneaking up on you when you least expect it. One minute you're listening to your favorite podcast. You're locked in, hanging on every word

when bam! A surprise bonus episode drops. Brought to you by allergies. The itchy, watery eyes hit, non-stop sneezing kicks in and a runny nose forces you to hit paws. Suddenly, everything is a trigger, the flowers, the breeze. It feels like even the trees are out to get you.

Luckily, Kleenex ultrsoft tissues have you covered. They're allergist approved and silky soft to help prevent skin irritation, so you can stay comfortable all season long. Don't let allergies put your life on pause, especially not when you finally got your cue exactly where you wanted. Be prepared with Kleenex Ultrasoft tissues. For whatever happens next, grab Kleenex. Add them to your cart today.

Enjoying a healthy dinner that tastes great means eating out at a pricey restaurant, right? Wrong. Healthy Choice Simply steamers are delicious and healthy. The Tray-in-Tray steam technology delivers crisp veggies and tender protein and tasty selections. Like Healthy Choice Simply Steamers grilled chicken and broccoli alfredo. It's a satisfying meal with 28 grams of protein and nothing artificial. Healthy Choice Simply Steamers, what having it all tastes like.

By the time I hit my 50s, I'd learned a few things, like how family is precious. Work can always wait. And 99% of people over 50 already have the virus that causes shingles. Not everyone at risk will develop it, but I did. The painful, blistering rash disrupted my life for weeks. Don't learn about your shingles risk the hard way. Talk to your doctor or pharmacist today.

Sponsored by GSK. You're listening to What are we waiting for? Well, what are you waiting for? One, two, ready, go. Investors Edge with Gary Culper. And welcome once again to Investors Edge.

A whirlpool is up five bucks in the aftermarket. So that's one. And I'm writing this down. Stock is smacked. that's what we do. So the indices remain fine. Ain't gone anywhere,

but okay. If they break above range, we'll yell at you. If they break below range, we'll yell at you. But I will tell you underneath the surface, it's very weird. And now, for the first time in a bit,

we're going to look at oils. There's nothing to do, nothing breaking out. But we recognize. recognize when things are a little bit better. It's going to be an interesting NASDAQ two weeks. That's the best way I can put it. In the news, Joe Biden is running for president again.

They will be announcing it Wednesday, I believe. What's interesting is, very simple. His poll numbers are terrible. I mean absolutely terrible nationally to where no president has ever won with those poll numbers there's also a poll and you know me I'm not a big poll person a poll of a thousand people but we're just reporting this to you on the Democrat side don't want him even to run but he's running we'll see how it plays out we shall cover it in the news Bud Light, a huge 17% sales plunge since what people are calling a controversy.

I'll let you decide what to call it. And two of the people who made the decisions have not been let go, but are on leave of absence. We let you decide what you think about all this. but when it comes to business, a lot of weird crap going on. It's almost like these people believe that there is a monitor on them, and if they don't count out what the monitor says about anything, they're going to be slapped. And what do they do?

They piss off their consumers. They forget, know your customer rules. Know your customer. And that's what happened. By the way, the number 70% they don't want Biden to run. In the news, Aaron Rogers has been traded to the Jets. Just letting you know. They picked up a very old quarterback that probably do some good for them.

That's your sports news of the day. I've been emailed 100 times today about changes at a place that I appear on. on TV. This is not the first time. It's not the second. It's not the third. It's not the fourth. It's not the fifth. Welcome to the news. Just so you know, you know what changes a lot? News people. You ever see what happens with local news people? They go from one place to the next. Same goes for the opinion people. And as I've said every time, I have no opinion. Wish everybody well. Wish everybody well. that's my answer to the hundred and so emails today. I love appearing on Fox News and Fox Business.

Some of the best people I know, the opportunity they have given me throughout the years, I can never thank them enough that they would trust me to go on live TV with my opinions on the world. I can't tell you how much gratitude I have. for these people through the years. And may I state for the record, the people who make the decisions have changed throughout the years.

So I had to impress different people. Well, since I'm still there, I guess I impress them. In the news. And I just noticed this. Anybody know this company, LVMH? It is a high-end Louis Vuitton, Moe-Schandone, Hennessy, givanchi, bulgari, Sephora.

High end. $500 billion in market value. So recession this or recession that, the rich are buying $5,000 pocketbooks and $1,000 bottles of champagne. Still, that is not changed. And I will tell you, I'm surprised.

You know what else stock has been strong? Ferrari! Simple LVMU. U-Y and the CEO of the company, I guess, owner whatever, is the most, the richest person in the world now. Bernard Arnault, A-R-N-A-U-L-T, unbelievable. In 21, they bought Tiffany for $15.8 billion. And there's your story. Anyway, have a great evening, drive carefully.

and when you get home, do like we do. It's quite simple. Make sure you hug your family. Make sure you hug your children. They will feel better. You will feel better. I promise. Have a great night, everybody.

Thanks so much. Take care. Bye-bye. This has been Investor's Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to Garyk.com. That's GaryK.com. By the time I hit my 50s, I'd learn. a few things. Like how family is precious. Work can always wait. And 99% of people over 50 already have

the virus that causes shingles. Not everyone at risk will develop it, but I did. The painful, blistering rash disrupted my life for weeks. Don't learn about your shingles risk the hard way. Talk to your doctor or pharmacist today. Sponsored by GSK. 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 Capital1.com for details.