Beware: Holiday Scams are on the Rise!
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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 o manager luke guero.

Good afternoon, fellow investors, and welcome back to invest talk. My name is Lucy and IT is wednesday, november thirteen th twenty twenty four. At the top of the show, I want to remind you about all the changes that have happened, political changes, potential future trade changes, legislative changes, a change in priorities, all the way to top at the top, which requires a reaction from us down here to find ways to improve our investment point folios.

And so, as with any other day, will have some educational items for you, will have some actionable items for you, actually particularly important actionable item for you today. And of course, most importantly, we will listen to what you would like to talk about, what you would like to discuss, the questions you would like answered. And in that spirit, before we tackle today's market performance and run down what happened economically and also get to those show topics, let's tackle this color question. Now the art .

of asking about is J X. And jack and financial. I'd love to hear you guys think about IT. Thank you.

Jackson financial is a financial services company that is ticker J X N. And they offer a whole bunch of products. They do investment management. They do insurance products. They had a recent successful growth path in our plan, rather in their annual di business.

And because of that, there were about one hundred fifty percent over the past year, up one hundred and eleven percent year to date. As I mention those annuities, those retail annuities make about seventy two percent of their business, national products about seven. Corporate and other products only about two percent.

And they Operate just primarily, if not holy, within the united states. And one thing that's bave benefit from a certainly a favorable market environment with higher interest rates. But their most recent quarterly performance back on november sixth kind of mix back, right? They had a negative surprise on the bottom line.

E P S actual down about one point five percent. Their sales, they did beat on the top line, but about thirty nine percent. And so overall was kind of kind of a mixed, a mixed bag.

They've been very successful. They are growth with their newly business, which is you can see is the primary driver of the revenue and a new ties tend to have good return. If you're sell in annuities, right, they're high fee products.

It's that we generally advise against. Then there are high fee products usually locked into IT. You they sometimes even get paid from the funds that offer them, uh that they they offer um within the annuity products themselves.

And so with all of that in mind, I mean you're see very solid grow net income growth about nine hundred and thirty four million last year project to be one point five billion this upcoming year. Debt pretty modest, about two billion of done on eight billion. Doll business or cash flow looks to be improving there.

They pay a solid divided, about two point five five percent. They pay a dividend each of the past three years, including this year. And so looking at this, IT gets back to that core question of, okay, you've seen a lot of growth.

You've see a lot of Price appreciation because of the growth. And so where does this stand now given its its pretty strong performance again, going back to when the when the company first came, first started trading, going back to toy twenty one. And so taking look at its for the Price learnings about five times, it's five year average, about two point seven Price to book.

It's treat and below its both value though double where IT has been for five years and at the high end of that range. And so with this name in particular, I think this is a perfect example of a company is had solid growth, but the growth has been because of some pretty favorable market conditions that are kind of subsidy where we are now. And so they're going to have to pay IT here.

And while they're pivoting while there up one hundred and eleven percent this year, IT kind of puts up an innovated Price level at which I really don't think it's a good time to get in. Looks like the average consensus rating would agree with me at a hole here target Price around one hundred dollars. So again, good growth.

I don't know if I can continue that going forward, but good thing. Keep on your watches for now. I just do not think that now is the time for Jackson financial ticker J, X, N.

It's like we have our first live called Jordan from data point. Who is a question on C, C, J, B, O. Did you looking to buy IT?

Yeah, I owit holding longer and wondering if I should take profit or just kind of hold the various .

right now. sure. So chemical corp. Ticker cc j is a nuclear fuel products and services company. They focus on uranium production, on nuclear fuel cycling. And so if you look at their geographic business, a lot of IT comes from canada.

What a decent chunks still comes from the united states in terms of their business segment, that uranium is about sixty nine percent of their business, fuel services about fourteen percent. There's been some solid growth there for that name. Over the past five years, sales has grown pretty, pretty well, about four percent, though over the past two, three years, it's almost up one hundred percent from one point one billion project to be two point one billion this year.

And in that time, their margins have improved going back five years, go about eight percent and negative during the pandemic project to be about ten percent at margin this year. Seek with their cash flow growth, which is pulling up right now on this other screen for me. And so look at the world of strength going out of the pandemic.

Again, an incredible strong name up twenty two percent year to date. So they aren't er performing the S M P slightly though terms of their industry, they are outperforming by about five percent now for debt, very modest under a billion dollars on a twenty three billion dollar market cap company. They pay a small vivid in their cash flow has been improved proving and the earnings have been upgraded.

It's pretty consistently sense january now they have been they had a slight run up in september in another kind of trending between fifty and fifty five level for chemical cc J. I will tell you, we do owit for clients. We are still holding onto this name though.

Just because we're hold on to name doesn't mean we don't take profit along the way. If I has an outside posicor in your portfolio, I think taking profit is a good idea given where IT has been over the past three months. But for now, we ourselves are still holding on a cc j because we like the theme.

We like how IT is going to essentially necessary the demand for energy going forward. And so we're going to continue to hang onto this name though, again, as we tend to do once we get outside of our target range, we do to take profits. So that is always a good idea.

Thanks to the call, joran. We're gonna show breaking on the other side will talk about today's market activity. By the way, we did IT.

Thanks to you. We hit sixty million downes of thank you. And please remember you can call anytime and leave your questions on the invest talk voice back. That number is eighty eight ninety nine chart.

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Talk about the market today. U. S. Stocks finished mixed after an uneventful afternoon. Other performers included samos, tech hardware, industrial metals, home builders, managed care. The dough finished up the eleven basis point.

S, S, N, P finished pretty flat as deck down twenty six and small cbs continuing a second strict decline of this one, about one percent at ninety four basis points. Big tech was was mixed. Amazon the notable gainer on the day.

And I would say that our performers are really focused on airlines software names, objec vehicles in P, E, named refiners doing particularly well today. Treasuries of mixed curve steep and following tuesday is big sell off. The dollar was up fifty basis of points with solid gains on the major crosses.

Gold finish down eighty basis points. Crude I settled up fifty basis points as well. Big headline today was the october CPI number was in line core print was in line with what was expected, which really confronted with some of the fears that there would be a hotter number. Port improved the market based odds for twenty five, the basis point cut in december, with federal ch.

Now noting that just there's just an eighteen percent chance of a pause next my downtown forty one percent yesterday and also comes off some hawk is repricing around federate cut path recently as inflation is reemerged as a key focus in terms of the last mile of beating down the the battle with inflation over the past two years, but also concerns around potential policy from the trump administration and how that could bring a resurgence of inflation. Shelter was a key upside driver and accelerated to forty basis points from twenty basis points, half of the total increase that was expected. Use vehicles also jumped, though kind of expected given hurricane impact.

Ppi on tap for d thursday, while retail sales is the stand out on friday budget. I feels me today, but most of the notes were, and they surrounded by a cautious tone, washington news. Out of washington south, the coa senator john thon elected top senate majority leader.

Multiple media outlets also have projected the geo people would retain majority in the house. Those several races remain on caldas. One is unclear of the size of that majority in the lower, lower chAmber.

Now we got a lot of ground to cover in the next of forty five minutes or so. One, here's some of what we have planned, time permitting. My main focus point concerns this warning.

Holiday scams are on the rise. The holiday season approaches. Fraud stairs are intensifying their tactics and hopes, catching unsuspecting shoppers off guard. But we went to make sure that all of you listening have those guards up and are ready for whatever may come your way.

Also touch on how the dollar has hit a high, at least for the past half of year as talk about potential trade policy and terrorist next year fuel the fears of a resurgence of inflation. Also touch on some potential nominees for trumps next treasury secretary and how that may impact trade and economic policy going forward and should be have time at the end of the show, we will talk about a doctor. copper.

Certainly, there has been discussion about dampening down investment in renewable energy and renewable vehicle electric vehicles. And so what effect may that have on the copper market and what other external drivers outside the united states may drive demand for copper higher regardless? We also have color, voice, my questions ready to play, including one on s cco, very convenient southern copper, and one on cdn, which is church hill downs ink.

There's awesome questions that came in from the investment from the comment section of the stock youtube channel. And of course, we ve already had one today, but would love to hear more live calls throughout the show. Let's keep things moving and at least get to the question from this voice. Big question. Hello.

i'm thinking of buying some shares of this stock. I would love to hear your opinion on owning stuck, stuck in S, C, C, O, again. S, C, C, O, thank you so much.

So this is the perfect question. Get to first, given what our last topic may be for the day. And so s, cco, take her.

S cco is southern copper CoOperation we owe IT for our clients. That is a mining and Melody ical company. IT produces and refines copper, silver, zank, LED gold, all sorts of industrial metals.

And so if you take a look at their business segment breakdown, right, their sensual segment in based upon on where their minds are. So their mexican minds are proved in minds. They are centered in in central latin america.

And so the breakdown here is a side north, north and central america, north, central and south amErica area, those the directions. So the business breaks down geographically, about sixty, forty along those lines. And so let's take look at their revenue. Actually, I am being notified that we are heading into a break. And so when we come back, i'll talk about maybe what are the external drivers that could help that could hurt copper over the next year, two years, three years, four years, how that may affect this specific comedy and removing in your break still to come and answer that question, and i'll get to my main focus point to stay with me. Give me a call IT eighty eight and ninety nine chart.

I would like to know more about the a company which i've been tracking for sometimes.

Look, gero is here and ready to tackle your questions.

And I was just wondering, are there any investment accounts with different banks that you would recommend something that.

that may offer a good resources? Don't forget to call me eighty eight ninety nine short.

You've got finance and investment questions and luck aro is ready to provide his unbias dancers call now or anytime eight, eight, eight, ninety nine chart.

So for for when you break. We teased the question on southern copper, and I was explaining how southern copper is the largest copper mining company, though they don't only specialize in copper. Now terms of the revenue group, pretty solid over the past five years heading back to twenty eighteen revenue about seven billion project to be about eleven billion this year and actually going to be at an all time high over the past five years.

Over the past year, they're about forty seven percent. There are net margin has expanded um in since twenty twenty one. It's actually found a little bit from thirty one percent to thirty point five, not to be a little either way.

The trend is still a positive trend as is the case for cash flow nearly doubling in the past five years. Divided yield, this is about two point three percent on the low end of the range of the past five years, where it's typically been around four percent. And so one of the things here is right over the past three months, it's only up about one percent with the year.

It's under performed the S M P five hundred by about six percent. And it's currently trading at about Price of twenty one, which Brown. It's five year average. It's Price to book as a little overvalued, right, as as its Price to cash flow and Price to sell. But I still think in spite of the potential for the U.

S too, maybe pulled back from all of the renewable energy spending, the the Green revolution spending right in an extra p administration, would you can certainly expect them to do. I think that there are still some positive catalans on horizon, mainly being china is, I believe, now the number one producer of electric vehicles. They certainly, as they ramp up economically, you're going to have high demand for copper corporis, still a backbone of the industrial space.

And so should we continue bring manufacture back to the united states only, that would be a boom to copper from that end as well. And so we hold C C, O O A clients. We hold IT for a long term respect.

We think the long term case for a copper is bullish doesn't necessarily mean in the short term that it's not going to perform at the market level. But sco has showed that when copper does well, well, kind of gives you a levered bet on copper there. So as long as they have strong crafted ability, which they have, they have strong and improving cash line, which they have, their earnings have been upgraded.

They have very little death, only about seven billion on eight one billion dollar cap company. Again, there are some things that may be waning down its profitability in the short term, but we still think the medium to a long term base case for copper and in general is positive and therefore, for southern copper as well. Thanks for the call.

Now my main focus concerns this morning holiday scams are on the rise. And so this is important to note, because this is the time of year where scammers are more active than ever. Their goal primarily is to put you want to heighten emotional state and use pressure tactics to get your personal information before you even have .

time to think about IT.

And so protecting your identity means number. What's staying calm, avoiding those suspicious links and being cautious with any requests for details will personal or financial. And so let's take a look at some of the common holiday scans and how you can protect yourself and ensure your safety this holiday season.

First up, fake online retailers. I actually see these on that all the time. And the reason why this works is because online shopping is convenient.

But scammers know that too, they target holiday shoppers with big stores, unbelievable discounts and flashy ads. And so if you see hard defined items that steep discounts, well, then you need to watch out. A good rule of thumb, not just about scammers, but about life, is if IT sounds too good to be true, IT probably is.

And so stickit trusted sites, really full product descriptions, even do a little research with the door's nameless sm or complaint to check the reputation. I've done that several times to save myself. Now if you think you've been scammed by online retailer, while there's a couple steps you can take, you can report them to the federal trade commission, but also you're going to want to contact your bank or your credit card company and report this suspected fraud.

Medics, one is gift card scams. Gift cards are popular because they let the recipients choose what they want. They are great gifts, but gamers love them to, and that's because they don't leave any trace once they've been used.

The scammer might ask for payment to the gift card, claiming that it's safe but don't fall for legitimate sons will never ask you to pay with only gift cards, which is why I think the core hears that give cards are for gifts. They're not for primary sources of payment generally, especially for people you do not know. Once again, if you think that you have been a scamped, the ftc is open and willing to hear about IT.

And then there's holiday travel, whether its family visits or a festival ation, travelers are prime targets for scams, promising deals or free prizes. Always book through rated sites and confirm the details before you pay. If you receive an unsolicited text to an email offering your free chip or really offering you anything ever, you should be skeptical if you have to pay anything with a gift card to clean your Price, just like with the previous scan, it's likely a scan again.

If you, if you happen to be a victim of one of these for any of these skips, the two things you want to do, contact your bank reports, suspicious charges, and contact the ftc, whose job IT is to look out for consumers. Finally, remember that you have the right to walk away, just hanging up, or delete any suspicious message and never click on those links. The best way to protect yourself is a tailor, and use caution with any unsolicited offers, whether it's on line shopping, give cards or travel.

Following these steps can help keep you safe from holiday scams. On the next invest talk, we'll look into this question. Born buffer ts cash stash, are we headed free market? Market bowls are expressing concern over over healthways record to have one hundred and fifty seven billion dollars stockwell of cash.

That's tomorrow. But for now, i'm lugo. I'm ready to take your calls now at eighty eight ninety nine charge.

At ten chicago wait is black friday. Previous sale is here early right now. Score after seventy percent of everything. Home, after early life. Bride's at there, every style, every home.

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The numbers are in invest talk now with more than sixty million download. Justin line and luck aro are ready to answer your finances investment questions twenty four, seven invest talk eight, eight, eight, ninety nine years.

It's going to john and son huz this question about navii a you looking about .

IT well i'm a Petering day trader. I love IT. I have made a tony money with IT but I think they they announce earning believe its on the twenty five and with all the craziness with the election, everything I would just seen what european ion was I love your show and listen to you for a long, long time. Well, thanks for being .

a loyal listener. We definitely appreciate that over here. And I don't think I have to remind any of our listeners what NVIDIA does or their track record of incredible Price appreciation.

Certainly, over the past year, there are up two hundred percent of one hundred and ninety five percent year to date after that draw down towards the end of last year. And the reason they do this is because, well, they keep pump in out some incredible growth numbers quarter after quarter. Looks like they're most recent.

The next report, rathers actually do the twenty fifth just to correct your calendar there. Don't want you to get the wrong, wrong date out of that. And so you know, I think this is in the the realm of i'm not sure how their margins may be affected by a change in trade policy, right? One of their big suppliers, obviously a taiwan micon ductor manufacturing.

And so if the if the goal of the trumpet administration is to repeat rate manufacturing by also putting terf s on imported products, that could affect the video, could affect companies like a NVIDIA as well. Now at its core, right, the reason why i've always been cautious about any video is it's incredibly expensive. IT has always been expensive.

It's training at sixty two times this book value and be a long term base cases predicated upon a couple of things, one that nobody can build Better chips than they can even internally write. A lot of companies are working at a foundry model to do. And internally, the other is that larger, more complex models that require lot of computing power are Better than smaller, more specialize models.

I do not convince that, that either of those are necessarily true, but the radio question is probably surrounding around the earnings. And so here's how I generally think about earnings, right? It's either going to surprise it's going to be online rather to be going to surprisingly upside, downside to be in mind.

And so there is a big chance, a big risk you take when trading run earnings that the Price moves against you in a big way. Now IT doesn't necessarily tend to move in, in massive ways, right, especially for a company of this size, on the downside at least. But for me, right, being being a discipline value investor means that it's difficult, even with the company like the video, to stomach buying IT at these Prices.

And so what that means is, well, you are going to miss out on some of these names, but generally speaking, what we've seen is investing in value in the names that reasonable valuations that have high profits tend to, over the long run, out perform. Now that doesn't mean you're gonna get you know the best of the best, but you may also miss the worst of the worst. We're talking about averages here or so for me, trading at the levels that IT does given a lot of uncertainty.

Ty, over the next six, I still think it's very expensive. They could once again prove me wrong and and pump after this this upcoming earnings. But within the discipline value framework, I still am in a no Annie dea for now.

Thanks for the call. I'm sure that there's they'll do well. And then you know we'll be talking about novitiate two hundred just keeps pumping up hie.

Anyway, let shift gears back to talk about the U. S. dollar. And so the U. S. Dollar has reached a six months high on tuesday as treasure yields were surging, which reflected investor concerns over potential inflation risks under a second trump presidency dollar index, which tracks the dollar against a range of global currencies, rose sixty basis points at its peak.

While treasure yields also speak with the ten year yield climbing to four point four two percent, which is near its post election highs. This shift in market sentiment signals investors may be adJusting their outlook for federal reserve policy, also unfolds against the backdrop of potential new terrace and changes foreign policy that could exacerbate some trade tensions. Reports indicated that trump may tap florida congressman mike walls, that is w.

Tz, as a national security visor and a point senator marker ruba, who's a well known china critic as secretary of state. And so such appointments could signally more assertive stands towards china and other trade partners, adding uncertainty around inflation and growth. And so some stocks have already felt this impact.

The european stocks dropped pretty sharply with the stock, the ck, the stocks, it's tough to say because S, K, O, xx stocks six hundred. And next thing, it's worst one day loss since early August. Major disease paris and frame fer also suffered as european manufacturer brace with the potential of terrifying and competition from low cost chinese goods that could potentially flood the market.

Now try to hit ted tabs of up to sixty percent on chinese imports, longer blanket duties of ten to twenty percent on other trading partners. Such measures raise ed concerns for european manufacturer, especially industry like automotive, which could be affected by not just us terrorists, but also those low cost imports coming out of china. Copper Prices, a traditional al barometer of global economic health friends called doctor copper through early two percent in london suggestion traders embracing for the river effects of tensions and how that may affect commodities in the short term, noted analysts from dnb markets.

Kelly key, sue chen warned that a rubi appointment could strain any chance of dialogue between the U. S. In china. And so as markets brace for changes and involve fiscal and trade policy, the coming months promised to bring little bit of volatility. Is more comes out about the direction of both that fiscal and trade policy in the next administration sufferer. Our investors are really on each trying to figure out and pass through the news and the signals and and determine what's signal, what's noise to try and understand um how to adjust strategies in response to the prospect of hier inflation and more importantly, a new era in trade relations.

I hope you ve been telling all your friends and family members that our investor k audio podcasts also posted in video form and from time to time, our listeners who have turned into viewers head over there and they have got a question and the burden through their mind, and they can't necessarily reach for their phones, and they go and they leave IT in the invest talk, youtube, the comments section of one of our videos. And so when you do that, we like to get to that question as soon as we possibly can cause we really appreciate everybody who heads over and watches the show and looks our charts and now sees that my beard has gone and now I have a mustache. So i'd love to hear your comments on on what your thoughts are there.

But either way, this kit to this question, and this one is on ticker N O G. IT says, enjoy the show and weekly newsletters as well. Keep him coming. I would like your show to analyze northern oil and gas for an energy play.

Would this be a good time to take a small in one point two five percent physical ican of my total portfolio? And so in northern oil and gas, that is take her N O G is a energy company that acquires, explores, develops and produces oil and natural gas within the the united states. And in terms of breakdown, it's kind about eighty seven percent of its revenue derived from oil, about thirteen percent of its revenue is derived from natural gas.

And looking back at the past year, it's like about eleven, twelve percent up in the past year. You're a date. It's only up about ten percent, though IT is out performing its industry this year by about five point eight percent.

Two terms of its growth of the past five years. It's grow a lot, about thirty one percent on analia ed basis from half a billion back and twenty eighteen try to be two point two billion this year. That income has also grown from one hundred and forty four billion, projected to be about four hundred fifty billion this year, though that is noted.

That margin has fAllen in about half, actually more than half down from forty eight percent, almost fifty percent down to twenty point two percent this year. Now they have a decent amount of debt, about two billion and down on a four billion dollar market cap company. Their dividend yield is about four percent, which is really double.

It's been a double of what IT has been with the exception of twenty twenty three usually ranges you know, around that two percent range. And divided per share is actually increased since they started pang a divided back in twenty twenty one from sixteen cents, but two, about a dollar succe two cents per share. Now one thing that I do not like is that as well as having a lot of that theyve issued lot of shares double their shares outstanding, more than double for forty million outstanding to one hundred million in just over five years, and cash low has grown at a steady pace.

So nothing, nothing crazy, nothing really to write home about, in my opinion, has been ranging since about july when I dropped off to about thirty two dollars. Now been ranging from anywhere between home, sorry, dropped off to thirty eight dollars. There is been ranging from about thirty six to forty four quite some time now.

And so you know, i'm a little less bullish. We actually talking about this today on the energy sector, a sensitively oil. Then a lot people are heading into the next administration.

why? Well, we've been drill a lot, right? The us. Is the number one exporter of a boil. And our nature gas exports increased x on I believe I was either today, yesterday said you can you can tell us to drill, to drill all you want. But now sometimes we're really drill.

They have not fully used all the permits that they have been issued, and that's that's an industry wide thing. Now that does not necessarily mean that you aren't going to get massive increases in subsidization of a lot of these projects to try and incentivize boosting of oil supply and oil exploration further. But I just don't think that know there's going to be some massive turn and other energy policy because yeah, we're going to pair back probably on the renewable energy aspect of that.

But really, oil been in been doing very well. And so from a relative valuation basis, this is on the upper end of its range. Price to book is also, uh you know I guess is an expression can might not be the best way to look at Price to book.

Price cash flow about where it's been on its five year average, same as Price to sales. And so I think that are all listen, the oil volumes are definite improving. They have grown very well, though the growth has really slowed down going back to twenty, twenty two. But like any other oil company, the profitability of this company, right, the amount of revenue they bring in the bottom I need income is going to be predicated upon the commodity here. And so I think that oil um is likely to be rather energy is likely to probably be at a market weight kind of thing, not under not overweight heading into the next six months to a year.

But I would probably trend towards those companies that have more diversification, right? I would probably trend towards one of those large cap companies that have diversification more broadly across oil, natural gas and annual energy, which still will be in demand, though maybe and not as much demand headed forward. So for g, it's a small company.

They're got a lot of a death. You're issuing a lot of shares. Their earnings are being downgraded.

I just think there are Better opportunity communities out there and look at that seventeen percent short interest. So looks to me like the market agrees. Thanks for watching. Let's drop in another color question from eighty ninety nine.

So is just from a was wanting to get your thoughts to been a really strong stock for some years and want to know your thoughts if IT would be smart, maybe investments for the next spot to ten years. Its churchill down. C H, D, M, it's done really well, has a good mode. And that industry wanting your thoughts on that big fat.

So churchill downs incorporated, that is ticker. C, H, D, N is A, I would say, industry leading casino racing property owner. They owe the conduct ky.

derby. They own the property where the conducting darby is raised to two downs. Excuse me, and you're a date.

I mean, they are performing not great, right? There are only up about four percent, four, five percent. Relativity VS. p. Five hundred. The under performing by twenty, there are performing their industry by eleven, but they have so had some, some strength, handing back into well about twenty twenty and coming out of the as well versus the the large cap in next. In terms of growth, it's been pretty solid.

They've doubled more than doubled actually the revenue from twenty eighteen from one billion project to be two point seven billion this year. That income has grown slightly though down from the two h twenty two heights s their debt. You get out four point billion and dead on a ten billion dollar market cap company.

Um interesting enough they pay a lot of interest on that debt because they are interest cover ratio again, which is the earnings before interests in taxes relative to the interest expense paid about one point seven two. Now it's not an alarming figure, but IT is worth noting that it's fAllen back in twenty twenty that was under one, meaning that three bit doesn't cover their interest. But then that rose to three point six three and has fAllen each year since then to where we stand now at one point seven two.

Now over the past five years, they have bought back shares from eighty million to seventy four million. Cash low is improving. Their profitability is improving as well.

And so I think the thing that I like the most is that growth, right? The growth is revenue growth has has fAllen off a little bit, but it's still pretty solid growth from two point four billion to two point seven billion this year. Their margins staying about where they should be around fifteen, sixteen percent, and their quarterly results were certainly not disappointing the last the last year.

And so the question is, is IT worth is IT worth the high leverage, right? Is IT worth the high leverage? Because again, it's not a lot of a debt in terms of its mark cap. It's only only about half of but in terms of the money is actually making, I mean, one point seven two is not a lot of breathing room there.

So with this recent lack of Price appreciation going back a year, right there, only up twenty percent uh in the past year can only up five percent this year is IT in a reasonable Price. And so for the in Price earnings, twenty times Price to book about nine point. Five times Price sales about three point.

Now those are all well below the five year average here. And so I think that IT IT has the ability to grow well. I think that their diversification across the gambling space, right from casinos to racing, uh, I think put IT in A H unique position, especially given the properties that I don't sorry, churchill downs specifically is A A storage storage institution of horse racing.

And so I think their growth has been fantastic. I think that they're not not really overvalued, ed at all whatsoever, if not, if not a little undervalue. And so be wary of the debt levels they have, be wary of the leverage.

I would hope that over time, that falls back down to a more reasonable or rather up to maybe two, two and a half. But still, I think it's an attractive name. And I do like churchill downs, take her cdn is invest talk.

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James from georgia love the show, calling about rios as take a symbol. R, Y, I, i've had IT for a long time. I was curious to know what you at work is for the stock. What's IT look like going forward if you have any advice? Once again, we love the show, and thanks.

So rison holding court, that is ticker R Y I, is a metal distributor and processor, a supply steel, steel, steel, aluminum, aluminum rather, and other alloys. And so let's take a look at its baLance. SHE was got but eight hundred and ninety two billion and debt on a seven hundred and ninety seven billion dollar company is projected to lose money this year.

And it's even interest coverage ratio. The interest coverage we just talked about that, right? You bit relative to the interest of us to pay point three eight, that means it's not even covering the interest that IT needs to pick.

Now casual, the past year has fAllen. Its Price really fell off a Cliff back in march, down from about thirty five dollars a share, dipped down about twenty two as trade, about twenty six right to post election. A lot of steel socks have been doing a well.

why? You know, steel is a legacy industry of the united states, right? We're bigger than U. S. Deal for all our godfather fans out there.

And so there could be an emphasis in the maximinus strain, especially with manufacturing and infrastructure to support some of these businesses, right? The president electors already said that he is likely to veto the depone steel U. S.

Steel acquisition. And so people are extrapolating that trend onto other companies. But Frankly, I just think this company is a lot of debt. I think IT has far too much debt and growth is not look and great.

It's very negative from twenty twenty two hundred, from six point three billion in revenue to four point six billion and is projected where to be this year. Again, there's proposed to lose money this year. And so if you're to make a bet on the steel industry, I just think they're Better places to make bets out there.

Certainly, companies that are not close to being a under water h, companies that are projected to be profitable and companies that don't have debt that are waning down very heavily on their baLance sheet over rios and holding corporation. R Y, I am going to have to pass. Thanks for the call.

According to Donald bpt transition team, top business leaders are eager to work with him in his potential or in his second term, our linc C E O of kanter, fitz ero and ahead of transfer tine, both sive contact with the top one hundred fifty business people in the country and many high profile names are circulating for rules, including an important one, which is treasury secretary. Those have a declined clear front. Runners are emerging, and each of them has different economic priorities that could potentially help shift, craft and execute the trip agenda.

Toba list is scotland and head of key square capital business change to search after weekend, meaning with trumped maroga. And he has a lot of key trump advisors backing him. He's aligned with trust, economic vision favoring deregulation and lower corporate taxes and and terrace.

And so one key thing to know about him, and he's also been pretty vocal about fiscal restraint, he labeled the by administration subsidies as a doomsday machine and called for cuts to Green subsidies in the inflation reduction act to help curb the deficit. Present sees trumps hair threat is IT more than negotiation tactic to rather than than policy and blues the doors recent strength is more than anything you vote confidence in U. S.

Leadership meanwhile, let that can self remains in y're running and like best. And he's a season new york finance executive and a trump supporter that advocates for those the same probe business policies. But I would say the biggest wild card there is, is somebody who has helped craft Donald trump economic policy four years, who was his trade advisor in the last administration.

And that is Robert light iser. He was really the architecture of trump's first term, terf, who's known for his top stands on trade. And so he's appointment, mood signaling, more protection instruction with a potential focus on high turfs, not as a bargaining tactic, but as something to say.

And so as trumps came nearer down its pics, each choice reflects distinct priorities. And who trumps select for these key rules will reveal more about the administration's s economic vision in a second term and could set the tone for years to come. I'm lucon.

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