How Much Life Insurance Do You Need?
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On radio, on youtube, streaming live, on invest talk dot com and for our podcast subscribers, this is invest talk, independent thinking, shared success. Invest talk is made possible by K P P financial, a registered investment advisor firm serving clients throughout the united states. Here is kp p financial portfolio manager luke gero.

Good afternoon, fellow investors, and welcome back to invest talk. My name is look gro and IT is friday, november twenty second, twenty twenty four. Before we start the show today, I think it's important to note that each day of the year had Carries with IT a history.

And today's date, november twenty second, is information for a tragedy that occurred sixty one years ago today, also notably on a friday. And that tragedy was the assassination of president Kennedy in dese, texas. Now, anyone who lived through that event, certainly I was not around during those times, but I have heard from my parents.

Anyone to look through that event most certainly knows the impact that I had on the american psyche and where they were when newspoll of the sassy ation. I think it's important because even though sixty one years have now gone by, there are still many people who doubt the findings of the warm commission report, and that is similar to the distrust with institutions that we have today. And today we're inundated with information and IT becomes difficult to sort through what is true, what is factual, what is important.

And so with that in mind, that's why we come here each and every day to try and find the signals in the noise, what is important, what can help us become Better and more informed investors. And because of this, because we all want to be Better and more informal investors, we bring to the tall and educational items and action items and stories, some market trends, some things that are affecting individual stocks, all companies bonds, all sorts of things that we think is important for you to know. But most importantly, you bring your financing investment questions live or via voice mail or who are invest talking youtube channel, because you would drive the conversation and you help us be Better at our jobs, be Better at helping you. Now just a bit, we're going to talk about today's market performance and run down the show topics. But first, let's tackle this color question.

Hey, i'm entrusted to buying shares of the stack. Can I have your opinion? The stack is R. I. Oh, thank you so much.

To rio. Rio tino is a minor that we get questions about a lot of global mining and materials company that produces iron or copper, aluminum, lithium and other critical mitral. In terms of its revenue with geographic segments, sixty percent comes from china, fourteen percent for the united states, twenty four percent from elsewhere.

Iron ore makes up most of its business, about fifty seven percent of IT, twenty two percent aluminum and tl percent copper. And so with any mining company, the current Price, the estimation of future cash loss, and therefore the current Price, other company is going to be a mining companies being incredibly tied to the commodity that IT minds. Not important to note that they do more than mine.

They also have some refining as well that separate them from some other miners. But one other thing that separates them from other minors is how much controversy there has been. The prizes down, because the commodities, the demand for the commodities is down.

But even a couple days ago, there was a report about a probe, but internal probe, into sexy harassment and assault in their Operating minds. And so this is not the first controversy with this company, right? This is not the first controversy with retina, with minds all over the world.

And so i've always said that, you know, if you want to invest in a minor, that is going to be exposed to the commodities, but maybe able to smooth the investment experience versus investing in the commodities, invest in one less baggage. This one's got a lot of baggage. I think they're Better mining companies elsewhere, certainly ones that are not being constantly investigated for writing.

Thanks for the call. Now we got a lot of going to cover in the next forty five minutes or so. And here, some of what we have a planned time permitting.

My main focus point concerns of this question, how much life insurance do you need? The amount of coverage you need depends on various factors, including your annual income or outstanding death, future expenses, what is your family need. So i'll talk about all of that and how you can potentially estimate what is right for you.

Will also touch on strange partners in Donald trump t brain standards. They are trying to tackle credit card interest. But is that way you should really be tackling? And what are some of the bigger issues with the credit card industry that maybe they should focus more on most attention on how turkey Prices are easing this year compared to last year? But IT doesn't mean that everything for think's giving dinner is cheaper.

And should we have time to be into the show, we will talk about a fed survey and how IT finds that inflation is moving towards the back burner in favor of the risks of debt and the risks of trade wars. We also have some voiced my questions ready to play, including one on return on equity verses return on assets and one on CF, which is CF industries holdings ink. We ask some questions that came in from the comment section of the investor k youtube channel.

And of course, I welcome your finance and investment questions now or any time throughout the show. Now we're going to do break. And on the other side, we will talk about today's market productivity and take your questions on the any time. Listen online you know the number eighty eight, ninety nine years.

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Let's dig in to the market today and some up the V, U. S. Stocks and had higher today lucking in some pretty solid weekly gains. The developed ninety seven basis points today. S M, P, five hundred large caps up thirty five best points in aspect of sixteen basis points, and rustle two thousand leading the way.

Small caps at one point eight percent respective perspective that performers included, retail, a peril banks, small caps, I said, auto supply, oil services, credit cards, underperformers included semi, semi cap named hospitals, china attack, manage care and medical. Ch dollar nex, up fifty basis points, said for an eighth straight weekly gain. Goals finished up one point four percent.

W, J, crude l settle up one point six percent as well and really near best levels of the day. The rotation was the big story again today with trumping small capacity les among the standards, while big tech was a notably lagging. The latter part really big text lag was mostly just a function of a recent rap up in regulatory headwinds.

The big news on the week being google pretty quite a elsewhere looks like though the microscope of minimum focus with november ash composite pm s highest since April of twenty twenty two services, the big driver of that number that the release noted. A rising optimism and renewed strength and hiring in manufacturing also from the from the michigan consumer sentiment number revised down in the final remember reading. While one year inflation expectations remain unchanged, some of the week on the bull side of video had another big beat, while underwhelming guidance chalked up to supply constraints, but still A I commentary or was pretty positive, walmart beat and raised guidance.

Trump reportedly focus focus on a treasury secretary pic who was just announced that we will certainly make the markets happy. So we may talk about that a little bit later on. Services PMI again in highest since April twenty, twenty two.

Initial claims also fell to the lowest levels since April, while the four week moving average the lowest since may. On the bare side, difficult regulate backdrop. As I mentioned, spirit airlines for bankrupcy after the planned acquisition by jet blue was blocked.

Target had a notable q three miss and q four guidance downward, which we talked about earlier in the week with a listen a collar question. Those flagged continue affordability chAllenges from inflation and rates, geopolitical attention, cert ratched ed at higher as ukraine Carried out first strike in russian territory with us supplied missiles. Because I saw more companies talking about how they planned to raise Prices in response to terrace s, which would play into some of the recent scrutiny surrounding the trump two point o agenda.

Looking at the next week, that is a holiday short and calendar and IT looks fairly unevenly. New home sales, which had been fed manufacturing on tuesday, GDP initial claims jebal goods oris PC in pending home sales on wednesday in chicago PMI on friday, also keeping in mind the F, M, C minutes are out on tuesday. Let's shift gears back to the invest talk voice are sorry, the invest talk youtube comment section question bank because when you head over to our youtube channel l, you watched instead of listening.

And if you have a question, what you don't really have to call, and you could just leave IT right there in the comment section. And we look at us each and every day, and we like to get to those as soon as we possibly can. So let's tackle one right now.

This question is about E X ls. That is exel services holdings. And IT says, hi, happy movember. Really appreciate that.

Could you share your thoughts on EXO services? E X L X E X L S, sorry, thanks for the podcast. Now XL services is a company provides data analytics, digital Operations and solutions to global companies across various industries. And so deeply, analytics is really one of the big parts that has been driving IT. They service insurance, healthcare, banking, travel leaders.

So pretty, pretty well diversified there through analytics division is about forty five percent of the total revenue, insurance about thirty two and emerging businesses, sixteen percent of their revenue in terms of growth felt pretty lid thirteen percent year over year on an annualized basis. Net income also growing as well from fifty seven million back and twenty eighteen to one hundred and ninety eight million is where they're projected to be this year. They don't have a much debt for a seven point three billion dollar market cap company, only four hundred and twenty six million dollars in dead.

That's a million with an m, not billion with A B. And in the past five years, they've been buying back shares. Now if you're looking for a dividend, this is the wrong company because they do not pay one. They are cashle generally positive growth over the past five years, expanding with their profitability against bottle.

My energies for share has grown from just sixty seven cents and twenty twenty one to a dollar tencent ce last year, projecting to be one sixty three this year and then forward more to one ninety next year. And so take a look at this company. IT looks like he has some pretty solid growth Price appreciation also.

Nothing, nothing to shake a stick out of forty nine percent year to date, up sixty four percent on the fifty two weeks. So with all this in mind, with all this growth, certainly there with doing IT not overly levered and being able to buy backstairs, with casual improving, with pop private margins expanding, how's evaluate valuation? Well, twenty and twenty four and a half times, which is a little bit above its five year average, but nothing too crazy Price to book about eight times that is in the upper end of its arrange Price to cash for thirty times.

That is a giant, giant number. There are Price to sell only about four times though very reasonable in my opinion. Interesting ly enough, especially good geographically, where this revenue comes from, eighty four percent, ninety united states, seven percent in united kingdom, none from india, five from other places around here.

You know, honestly, I really do like the way this company looks from from a technical perspective that that looks very solid as well. It's reason from under forty dollars, about forty five in the past month or so. It's as strength look solid.

It's cash loans improving, their buying backchat s profitability ties expanding. Revenue growth is a little bit backloaded, but still it's pretty solid, right? They're growing from one point six billion last year project to be one point eight billion this year.

Honestly, not a lot to not like. So on ex ls, even that it's a little expensive, little expensive Price to sell. So pretty reasonable. So I going to have to get this one of thugs up that is E X ls excel service holdings ink.

Now in a briefly mention before we had to our first breaking the news K P P premium news letter, which will be distributed tomorrow this week in the kp p insight section, we're going to talk about the inner play between the treasury department, the fed, the commerce department. What a second trumpet administration is like you to look like, given that we now know who is going to be holding the head of each of those positions. The stock ideas section, we mentioned an electric company and a tech company.

And in the portfolio management section, we touched on for a one k management. You're interested in learning more with the us. And invest.

Talk to come. The news letter will come to subscriber in boxes saturday mornings, no heading to new break and still to come. My main focus, point more answers to you, your questions, both voice mell, youtube and hopefully live. So give me a call. Eighty eighty nine.

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It's dive read into our main focus point today, which is about life insurance and more specifically, how much you need. Now i've ensure this is a critical tool to ensure that your loved ones are financially secure if you are in no longer there, but figure out how much coverage you need can really feel overwhelmed.

So let's break IT down into a couple simple steps and explore some of the methods to estimate the right amount for your situation pursuing. To start by looking at your financial obligations and the assets you already have that can help cover those strait forward ways to calculate financial obligations minus liquid assets, which includes replacing your income, paying off a mortgage, covering debts, future expenses like college, even childcare costs. If your a stay at home parent now, you want to take away your savings, your current life insurance or college funds to really start to find the gap, right, insurances about filling the gap between what your assets can cover and what they cannot.

There are also some quick estimation methods. Now they aren't perfect, but they should give you a general. Guess of what you may need, for instance, want us to multiple your income by ten. While simple IT doesn't really account for specific needs like education costs or existing savings, using the dime formula, dime D I M E, which sends debt income, mortgage and education, you can do a more detail book. You're going to want to add some additional vets, their funeral expenses, income replacment for your family mortgage baLances, education costs for really a well rounded view.

Another thing you could do is you could replace your income with a cushion is a simple estimation of what you may need order to do, that you want to divide and come by maybe a safe return way, like five percent. So if you're earning fifty thousand dollars a year, then dividing up by five percent told you that a million dollar policy could generate enough interest to replace your income for state, home, parents, maybe one, a factor in the cost of services that you're providing, like childcare and apply the same type of formula that we've already discussed. Remember, life insurance is part of a bigger financial plane.

You need to think about your future expenses, how costs may rise, how income may grow over time. But most importantly, we want to talk to your family. You need to talk to your family about these numbers to ensure that the policy alliance with their needs, you can also mix certain policies at thirty, your term policy might cover your spouse until retirement, while adding on a twenty year policy could be focused on supporting your kids until they're independent.

And all term life insurance cover specific periods. Whole life insurance provides life elong coverage, making IT ideal for final, final expenses like burial costs. Ultimately, life insurance is not about guessing, right? It's about planning.

It's about figuring out what you actually need. By assessing your financial picture and expLoring your options, you can secure piece of mind for you and your loved ones. And this is something that comes up with our clients all the time at something that we help to advise our that's part of our relationship with our clients is beyond investments we do advising.

And so as always, if you think IT is important, if your situation is more complex or if you just need help, I recommend reaching out to a financial advisor who can help you beyond investments and the broader financial plan, any of which should include life insurance. Now on fridays, we generally makes time to fit in a quick run down of key benchmark numbers. So me hit you with that list right now.

The G U. Treasure yit was at four point three seven, three percent a day for perspective last week that was four point two, nine, nine, sixteen weeks back that was three point eight, eight, two, fifty four weeks go five point o five. And close to three years ago, IT was point six four percent.

The tending your treasury, you was at four point four one four today. Last week there was four point four three four. Twelve weeks ago is three point nine two one.

And fifty four weeks back I was at four point six three percent. Gold was Price at twenty seven hundred and eight dollars. Prince, today last week I was twenty five hundred and sixty two dollars.

Fifty four weeks back I was one thousand nine hundred and thirty five dollars hundred and forty two weeks. So is one thousand eight hundred and six dollars. Silver today was Priced thirty one dollars in twenty four cents.

Prince, last week, that was thirty dollars, thirty two cents. Forty weeks ago, twenty two dollars and eighty cents. And one hundred thirty five weeks old was twenty three dollars and ninety four cents.

Oil was selling for seven one dollars and twenty since per bail the day last week, that number was sixty seven and twenty seven. Eight weeks back, IT was sixty seven and seventy nine and fifty weeks ago, seventy four thirty. The national average for a gallon of regular gasoline is three dollars and five cents today, a three cent decrease from last week.

Seventy seven weeks go that numbers three hours and fifty six. Ccs, one hundred and twenty five weeks ago, that was four hours and twenty five cents and one hundred and forty five. So so does one.

Twenty five weeks ago, one hundred forty five weeks ago, there was three dollars and fifty seven cents in california. IT was averaging four dollars and forty four cents per thousand and three cent decrease from last week thirty six weeks ago. That number was five, thirty two and one hundred and thirty two weeks back, I was five, eighty seven.

For comparison, in the state of alama, gas was averaging two dollars and seventy seven cents s per gan day. That is one dollar and sixty seven cents less per gan than gas in california. Now we want of time to tackle this one, but we can tease IT heading into this next break and this question coming in from the invest talk youtube channel.

Remember, as I mentioned earlier, you can go over there search invest talk with two ties, and you can watch us. You can see the charts we're looking at. You can see all of the data that helps us answer your questions.

When we come back, we will answer one of those questions on the next invest stock will look into this topic, how to celebrate thanksgiving without overspending the Prices for thanksgiving expenses up by nineteen percent. You want practical tips for celebrating affordably. That's on monday.

But for now, i'm luco. I'm ready to take a your calls at eighty eight, ninety, ninety chart. At ten chicago wavers, black friday previous sale is here early right now, four of the seventy person off everything home shop early black body deals now at the way per store at ea and line there. Every style, every home .

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The weekend is here or almost here, but you've got an answer and investment questions. So step up and call in invest talk eighty eight ninety nine shirt.

Now we ve got time to drop another question for invest youtube channel, this one for our friend Jimmy, he about international and emerging market stocks. He says, as a general rule of thumb, what percent would you recommend to allocate international and emerging market stocks? And there is a good question because given the recent performance of the U.

S. Stock market versus international and emerging markets, you tend to see investors exhibit more and more something that we refer to in the us. For us investors as home bias, meaning you tend to overweight your home country stocks more than what you'd expect in a well diversified portfolio.

Now as early twenty twenty four, U. S. Stock market was about forty five, forty two to forty five percent of the overall market.

But a lot of people in the us. Have one hundred percent of their stocks exposure in the united states. So generally, I get IT depends because the reason why the expected or return of international emerging stocks is different, the U.

S. Is because the risks are different. Emerging markets tend to be the most risky.

And so with you a risk verse investor, maybe don't want anything in there, but generally, I think five to ten percent is good for international stocks for those returns tend to be more similar to the U. S. Market is in the developed market.

And so maybe you wanted twenty to thirty percent allocation to that, but I think is important because just because in the recent past, the U S. Is how perform doesn't mean that will continue forever. And that is the benefit of diversification.

You diversify across companies, you diversify across sectors. It's even a good idea to diversify across market type, but as always, this doesn't fit every investor. It's important to take take in consideration your risk tolerance, your investment horizon and what your ultimate goals are. This invest talk and we're going to get to one of my next talky points after we play another color question.

Hey, guys, this is up right border. Again, just the call. Get your take on c of industries. I know you guys we're found that appear at time and that was, uh, kind of a play on natural gas Prices. Curious, you know where you see this going to good enterprises this point looking forward to the notes, probably somewhat lever to nature gas. So just want to get take on IT.

Thank you. So C F industries is a global manufacturer of hydrogen and nitrogen products for a butch thinks for clean energy, for fertilizer and for emissions. From a revenue perspectives, the growth looks pretty solid though IT is set to drop off really from twenty twenty two, right? You go back to twenty eighteen while you're at four point four billion in revenue and this year of five point eight billion, but I really peaked out in twenty twenty two where revenue is about eleven point one billion.

Taking a look at their cash, little cash, alison, and following a little bit since twenty two, the relative strength looks kind of a week right now, if about three point two billion in debt on a fifteen billion dollar market cap company, but over the past three years, they've been buying back shares, right? They went from about two hundred and ten million shares outstanding, two, about one hundred and eighty seven million excess million as of the most recent quarter. The learnings for share growth again has kind of moved around with their revenue taking.

Look at their margins, their margins have been pretty solid even though twenty twenty one or twenty twenty two was the peak doesn't dropped off that much, right? The peak is about twenty nine percent. Net margin down to twenty three percent last year, projected to be about nineteen percent this year.

And so with profitability falling, with cash flow falling, with revenue falling as well, the rolt evaluation is near its average about fifteen times. For looking Price learning, about thirteen is where its average was three times Price to book as to below its average point, nine times a Price to cash low. So even with all of this in mind, it's important to note that the Price of this company is essentially going where the market for fertilizer has gone, right.

See if industries is the leader in ammonium production and it's a solid company. It's financially healthy. Again, IT only has three point two billion in debt on a fifteen point seven billion dollar cab company.

There's not a lot of shorteners out there pays a solid dividend that has been expanding from dollar twenty to two dollars. Now a lot of that will be helped out by the share by back. But the math tells me that, that, that dividend is still expanding. Repair issues also only about twenty, and so they have a lot of breathing room there.

And so I think this is a situation where, again, you have a good company that is dealing with secular tailwinds, but could certainly be a good time to pick up for the long term when the cyclical issues that IT is facing within its specific industry starts to a bit. And so even though we have may be a shift in environmental regulations within the us, IT doesn't necessarily mean that the company that is, is focusing on, uh, an environmental and agricultural side could not continue to do well. It's still up to one percent year to date, fifty under performing the market, but still up about thirteen percent over the past three months.

We still do hold IT for some clients in one of our strategies. And so for CF industries, I would still wait to see what happens on a technical basis because IT doesn't look a little week right now though, IT is on an uptrain in the short term. But let's see if that continues for the next couple of months for hours to holding on IT for clients.

But IT may be a way and see to see some some medium term, longer germ trends. Uh, hold. Thanks for the call.

I don't if you knew this, but those in election recently and Donald pl berny centers don't necessarily see I D eye on much, but they did find rare common ground and that both say that they support capping credit card interest strates at ten percent. No, what the idea may sound appealing. It's important, though, that such policy could really backfire.

Caps on interest strates could lead credit or issues to limit access to less reliable borrowers, leaving many without needed credit while fAiling to address deeper issues in the credit card system. One of the biggest overlook problems, ultra generous credit card reward programs that full disclosure I certainly love in the us. Credit cards words are far more lavish than in much of the world, from cash back to travel points.

These parks are funded by largely having higher fees on merchants on every transaction call an interchange fee. And in the U. S. Is usually two percent I was I compared to europe when europe is about thirty basis points.

So these costs are passed on all consumers to higher Prices, meaning even those without credit cards subsidized these rewards more over rewards programs disproportion unav benefit the well off wealth your households use create cards more often. And sophisticated consumers who optimized words, strategies, sometimes called Turners, read the biggest benefits. Meanwhile, lower income, housework and those of the less financial knowledge are left footing the bill.

And so research has shown that american credit or rewards programs SHE about fifteen billion annually, from less savy to more sophisticated consumers, with poor and high school graduates and minorities often losing out the most. And so what can be done? Well, some point of the european unit, they had a twenty fifteen decision to cap enter change fees.

While controversial at the time, the move has reportedly past significant savings on to consumers through lower Prices. Adopting a similar policy in the U. S.

Could descript the current reward heavy system, lowering costs for everybody. However, such a measure would definitely face push back from banks, from credit card companies and consumers who enjoy those port perks. And so for that, america's credit art system remains deeply unequal, rewarding the savi and wealthy at the expense of the rest.

And so it'll be interesting to see given who some of the appointments are within treasury with in commerce, some the economic advisors, if this potential cap on credit ard interest moves forward. But I think that if if they want to truly tackle an issue, right, the number one issue in the election was cost of living. You want to tackle a cost of living. A great way to bring you down is to reduce these interchange fees, which affect everybody. Let's keep things moving forward and put the back to the investor voice bank eighty eight and ninety nine chart.

I'm wondering what's the difference between return on equity and return on assets is and a family evaluating an equity company? I'm not a read which one is more appropriate for you. I love the show. Thanks for all the help guide.

So return on assets are away as IT is commonly abbreviated, essentially measures profitability relative to the total assets of the company. So that shows how efficiently a company is converting its asset base into revenue that return on equity, which is R O E IT measures of profitability relative to shareholder equity. So IT is essentially saying what returns are generated for equity investors.

So again, the key difference here is R A focus on focuses on acid efficiency, where as r we really emphasize this shared the returns. And so if you are trying to be an equity investor, generally, you're probably more concerned with return on equity, right? How is IT efficiently and directly relating to investors, shareholders.

But as we try to stress as I try to stress all the time, there is no one metric that tells you if a company is good, right of a company is the right company, they're all sorts of things you need to see. And so just because you're an equity shareholder certainly does not mean you should be ignoring growth in return on assets of the company as a whole. Now we ve got plenty of time, so let's see if we can get to any another color question.

Now many, David, from portland, I was calling in today to get your take on Warner brothers discovery. Unfortunately, we have the stock driver. thanks.

A T N T off for what have you? And this socks really done. Nothing go down. And I also me do. But I anyway, like you take on that is his pink one, a brother discovery stock will ever turn around and be worth something? Or should I just how many loses?

OK OK. So seek look at Warner brothers discovery as these things start to pull up. And for those of you who cannot clean from the name, Warner brother's discovery is a media company.

IT was a spin off. And so the question is, is IT beneficial to the shareholders that are left holding the spin off company? If you take a look at its relative strength, that would not tell you.

Certainly in the past four years, net right IT started to fall off a Cliff back in twenty twenty one, and things have not gotten much Better since rather of strengths is down over the past five years. Cattle o is improving though, but profitability looks pretty negative, right? You had you are making money back in twenty twenty one, and then he started to lose in a bunch of money.

He's a lot of streaming services did and twenty twenty two neck twenty one percent at margin. The negative seven percent project be a negative at twenty seven percent this year. And I think this is an example of a company that has a lot more debt than that I can handle.

Right is dead is forty billion on a twenty five billion dollar market cap company, its interests confederation of point six one, meaning the interest before innings and taxes can even cover the interest pense of this company. And so the baLances is too ever. It's not healthy, you know, its debt levels have improved right there at fifty two billion and twenty twenty two, they projected to have forty billion, or rather, they had forty billion at the end of the most recent quarter.

And so I would love to tell you that you know, things are improving though. They tend to they look like they are with cash flow positive. But investing is about more than just looking at a company isolation, right? It's about the opportunity cost of investing in another company.

And this one has a lot of room and still a lot is still has to work through before I would consider to buy. Namely, he has to bring in more money than IT costs to service its debt. And IT certainly has not been doing that for quite some time. Thanks with a call. Can we play a three international?

Let's try. I'm calling about gehe's th care symbol H C. So i'm just wondering your take on this on this stock G E, health care. And by the way, this is nick from seattle. Thank you for taking my call.

Well, nick from seattle, thank you for calling. And let's take a look at the health care that is taking A C G. Health care is a community specializes in precision care and advanced healthcare technologies, right? Health tech mettez is suffer IT, patient monitoring, medical imaging, drug discovery and essential delivery.

And so they started at trading when they were fun off at the end of twenty twenty two. IT is a twenty five billion dollars sizes is not loading over here. Give me one moment, the thirty seven billion dollar market cap company whose revenue growth has been pretty slow but still positive, right from sixteen point six billion, the division back in twenty eighteen try to be about nineteen nine point six billion this year.

Now, unlike Warner brother's discovery, they didn't spend, often have a bunch of debt, right? They only a ten billion in debt on a thirty seven billion dollar market cap company capo doesn't really growing that much, but IT is still growing, still trending in the correct direction. Margins, however, have slipped since a peek in twenty twenty one.

and. They look to be kind of slowing down or rather compressing even more aggressively in the past couple years. Now they do pay dividend but divided dealers currently twenty basis points.

But again, they just started treating more recently. So there is not a long term track record of a divided being paper, but their pay issue is three, right? They have a lot of room to run there.

And so know meet tech. Health tech has not been doing particularly well recently. I think there is a lot of uncertainty within the health care space about generally cost structures and what insurance may look like in the next administration.

But even with that in mind, I think this is a company that has not been issuing what of shares. They have fine, a five baLance sheet or cash low trending in the right direction. But either way, I think there's still a lot of uncertainty for me.

And so we're still waiting to see who is a point of two various positions within the health care Operatics of the next administration. And so until then, I would tend to want to stay away from some of these health care tech companies because, honestly, we just don't know what to expect. This invest talk, I will grow.

And we have a one goal here, this to help you achieve your financial freedom. Our continues after this break, our final break. So get your questions. And now at eighty ninety nine years.

Loop buro is here and ready to tackle your questions.

I would like to know a more about the a company, which, how I been dragged for sometime. Quite question on a very risky play. IT is a company. I caught my attention because the R O E is like close to one hundred percent.

Invest talk is ready twenty four or .

seven and and I was just wondering, are there any investment accounts with different things that you would recommend something that that may offer a good .

resources call invest talk, a ninety nine chart.

Investor, tell your friends they can listen live, download the free podcast or watch invest talk on our youtube channel, and they can leave their financial investment questions anytime. Ninety nine, just so this .

is jeff from the california. Have a question about I E, P that I can stock. I have quite A I quite a large position and um you been declined greatly in value and paper. So IT was a wondering what i'll save as a dividend with I E P icon enterprises. Thank you.

Well, let's take a look at ie p, that is icon enterprises. And icon enterprises is a holding firm, right is a diversified holding company that is run by coral icon that has various investments in various portfolio companies. More recently, they had a lawsuit against them that I think was dismissed prety recently like a couple months ago.

And so you didn't see the the Price roll over a little bit in september when that was announced at since then after peaking out IT about november, right early november and has started to trickle down again. Now my issue with this companies generally IT trades at a premium to its now, which for value investors such as myself, not something you want to see, but regardless of the loss of being dismissed, IT just has poor performance, right? The issue, a bunch of shares, they have a bunch of debt, their cashle is not improving.

Their net income is is negative. And so for me, this is this is a clear indication of the company that even though the lawsuit, the cloud of the lawsuit seems to be gone, I said what I want to be here. The dividend deal is thirty one percent right now, and dividends are not set in stone.

They can be cut. And this is a situation where I think you have a company that is under threat of that. So far, I, E, P, icon enterprises going to have to pass. But before we head off our talk, our focus, one on monkeys about thanksgiving, but I wanted talk about thanksgiving as well.

And that is because there is good news for saving host this year, and that's because the cost of the centerpiece turkey is expected to drop for the second year in a rup accordance to the american farm biaro federation. The average Price for a turkey is projected to fall by six point one percent, down to twenty five, sixty seven or one point six eight dollars per pound. This comes this by chAllenges in culture production caused by bird flu, which has drastically reduced the american turkey flock to its smaller ze since one thousand nine hundred eighty five.

Now what turkey Prices are down, thanks to reduce demand and lower feed costs. The story isn't rosy for many favorite side dishes. Prices for potatoes are key ingredient in math potatoes, really the only major ingredient math potatoes, about seven point six percent due to a smaller north american crop and changing consumer demand process.

Foods like a stuffing mix and dinner roles have also reason by over eight percent. And for dessert, peak on pie lovers, I am one of them. We'll we feel the pinch with the costume packets driving and eight percent increase in pie Prices despite cheaper sugar and button.

Overall, the farm due estimates that the cost of the things giving meal for ten people will average fifty eight dollars and eight cents, down five percent from last year and nine percent from the record high. Sixty four dollars and six cents set in twenty twenty two. Phone in hands remain more affluent, able protein alternative, with whole Prices around half that of turkey, just by an eleven percent increase from last year, shoppers looking to save on their holiday fees might find less relief in store brand items this year.

All neighbor turkey's are down two percent. Stop and turkeys are up five percent. Similar transport ly to other staples like crying barriers and pumpkin pies, where the Price gap between name, brand and store brand ims is narrowing.

Inflation remains effect. Food Prices have even reason two point one percent over the past year, according to the year of labor statistics. But that hasn't stopped seventy nine percent of americans from planning traditional thanksgiving ics.

Thirty consumers say they expect to spend more on groceries this year that they're unlikely to cut back on their holiday purchases. For those planning the thanksgiving menu, the key to savings may lie in comparing Prices, in finding alternatives. And so on monday, when we come back, we will talk about some of the ways that you and someone who is planning a thanksgiving feast can look to save on those dishes.

Now already mentioned IT once, but I want to mention IT again. And that is, we sent out A K, P, P premium news letter every saturday morning, but is composed of three sections, insights, stock ideas and portfolio management. You can help you get a guide to what is going on in the markets, maybe give you some ideas for companies that should be in your portfolio.

And overall, help you manage towards you are find chocs. I'm looking. And this completes another investor k program. We thank you for your listening. We encourage you to tell your friends and family members about our free podcast download.

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