Mad Money Host at CNBC
Member since: Sep '20 · 5338 Opinions
Very disappointed. Gold has made a big run lately, but Barrick hasn't done much. The best thing about it is its 2.5% dividend. That's it.
A juggernaut. Great CEO. Keeps selling at low prices. Always a good time to buy this.
Today's share price increase was significant. Shares have come down too far, 30% this year.
Has liked this since 2008. Rallied over 30% since last October, but trading sideways lately. When it reported a few months ago it was in-line with solid guidance though there was a little hair on the dog. Management gave a optimistic comments on its largest market, southern California, and made big money in the red-hot data centre business.
Reported a great quarter a few weeks ago and announced a cloud partnership with Nvidia.
Not every semis stock has rallied. Some have lagged due top their end markets. ON serves cars, solar energy and EVs, which went out of style. But investors bet that these end markets could bottom soon. ON management issued conservative guidance recently.
Reported a mixed quarter with only part of its business on fire. Wait.
They were doing well until they issued a convertible bond. Now, it's in the dog house.
A controversial quarter that split the street. He's on the fence.
Shares have been in the doghouse with the street complaining that it isn't innovating particularly in AI and isn't growing. He disagrees. Their services stream is thriving based on a massive user base. Still says own, don't trade it. The news today about Apple talking about licensing Gemini AI for its phone is promising.
Reports today of it in talks with Apple to license its Gemini AI for Apple's iPhones. That's positive. GOOG is a kind of dysfunctional stock. Own, don't trade Apple, but he can't say the same about Alphabet.
He gave up on JNJ (and made a small profit), because he was tired of being held hostage to legal decisions that had little to do with the greatness of this company. The legality concerned traces of asbestos in its baby powder that may have caused cancer in some customers. Twenty years ago, any whiff of an asbestos lawsuit would have triggered an instant sell. He forget how ugly such lawsuits could be. In the 1980s, a number of companies lost asbestos lawsuits. After researching the JNJ suit, he concluded that JNJ acted in good faith or didn't know about the asbestos or an accident at worst. Turns out that was a mis-judgement he made. A seemingly endless number of lawsuits were launch, and there was a $2 billion judgement against JNJ that stated that the company didn't take the plaintiff seriously enough. Then, JNJ paid $8.9 billion to the plaintiffs, which he thought was a brilliant strategy, but the 3rd-circuit court in Philadelphia hated this settlement. Meanwhile, JNJ reported a terrific quarter and spun-off its consumer products division successfully. He bought JNJ for its fundamentals, but he was actually betting on the thing that controlled the stock--the litigation. You never want to play that game. In the end, he was far too sanguine about JNJ's handling of the lawsuits. When a judge ruled that JNJ would not go bankrupt or blocked the company pursuing bankruptcy. That's when he sold.
50/50 and maybe mix in some bonds. The index fund is the bedrock of the investment, though.
He recommended it in February 2023, right before SVB collapsed and triggered the regional bank meltdown. He takes full responsibility for that call, even though most analysts recommended the stock. How did we call get it wrong? SVB once ran a fantastic business, financing a lot of tech start-ups, then expanded into R&D banking. They were on a roll as their deposits mushroomed and their EPS soared. But then in 2022, the Fed's aggressive interest rates hikes led to the IPO market shutting down and existing clients couldn't raise more cash. He assumed these effects were baked into the fallen share price. If the Fed had stopped cutting rates (as the market wrongly assumed) in early 2023, SVB could have survived. However, SVB didn't reveal how concentrated their deposit base was or how aggressively they'd invested in government bonds. They were reckless.
They screwed up their last two quarters, but delivered on their last, share up big because of AI. The CEO is good. He should have had more faith. Shares will likely keep rising and remain inexpensive.