Jim Lebenthal

Reported a big beat and gain, but shares went down. In the last 12 months, it reported $6 billion in EBITDA. They raised their guidance on price by 17%. Volumes are picking up, including the carmakers. It's annoying that shares are down today--the market is down, and there could be some profit-taking. Today's price is a definite buy. It boasts free cash flow of $6 billion pr 40% FCF yield, which cannot be found in megacap tech stock, and CLF is buying back shares. They are anchored by fixed, long-term contracts. The market is a dingbat when CLF reports.

He's still holding this at a loss. In terms of problem, it's been one thing or another, like Macau or recession talk (in the future). The canary in the coal mine are casino stocks. He believes inflation has peaked, though, so casinos could rip. He's bullish Wynn and casinos.

Today, the CEO boasted of very strong demand. Things are very good for the airlines, which signals a healthy consumer. He believes in the CEO. He just bought this, the only other airline he has bought beside Alaska Air in a very long time. Delta's customer service towers over its peers. international travel is still at 55% of 2019 levels. If testing requirements are removed, he expects this travel to shoot through the roof.

Economic activity is picking up and rail is the way to ship goods.

He's bullish, which is a contrarian view now. We're seeing a natural pause in an upward trend as markets digest a rate shock from the Fed. Yes, there are negatives like the yield curve inverting, the Fed's hawkish comments and Russia/Ukraine. But these are priced into the market. Looking ahead three months: inflation may have peaked, labour force participation is picking up which eases wage pressures and freight supply chains unsnarling and Russia/Ukraine could go either way, but likely will be a stalemate. It's likely the Fed will hike rates in early May but then step back and see how that effects inflation. He's suspicious rates will hit 2.5% by year's end; the Fed doesn't have to.

Cyclicals will do better than large-cap tech, which itself will be fine. Apple is at 25x earning and Google at 23x. These PEs will stay constant, so the share prices will rise at the rate of the EPS rising, roughly 8-10%. These are two of the highest-quality companies in the world.

Cyclicals will do better than large-cap tech, which itself will be fine. Apple is at 25x earning and Google at 23x. These PEs will stay constant, so the share prices will rise at the rate of the EPS rising, roughly 8-10%. These are two of the highest-quality companies in the world.

Tech stocks have been on a tear the last two weeks. He's underweight large-cap tech. They can run further, meaning the FAANG, 7-10% further this year, but not PE expansion. He's less confident the high-PE stocks which will remain challenged--not for long-term investors. He believes more in cyclicals and value stocks where there will be PE expansion. He's all-in in the markets.

He's been trading this, trading it well. Yes, you can trade this stock (and not hold long-term).

The economy appears to be strong in terms of low jobless claims and factories being built. Also, inflation was showing signs of rolling over even before the Russian invasion. WTI at $114, which didn't stop economic expansion a decade ago, might be overcome by supply chain bottlenecks that are starting to ease at ports. Yes, there are clouds, but there are positives, too. The market is now focused on the positive. Today's market rise could be a dead cat bounce, but it doesn't feel that way.

The PE should expand to 20x, which means $230 a share or 45% higher. They're growing and diversifying their earnings away from Apple and smartphones and into cars and the internet of things.

Stocks are rallying for the second straight day. Have we bottomed? Not sure, but this is a good time to buy. He's been buying. It takes time. Look past the negative news. We have jobs and a strong economy.

He sold it six weeks ago at $98 and is $88 today. It faces rising costs in the US while China is a challenged place. SBUX is no longer a growth stock, but mature. Schultz grew the company, but he's not sure he can lead it through the next phase of growth.

Buy. He owns a lot of it already, but would buy. They're getting a lot of orders for the 737 Max and 777s. The overhang is the delivery of the 787s, delayed by the FAA.

All airlines are seeing tremendous demand and are raising prices to absorb higher fuel costs.