Transcript was automatically generated.

0:00:02 – Announcer

Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

0:00:16 – Frank Curzio

How’s it going out there? It’s July 23rd. I’m Frank Curzio. This is the Wall Street Unplugged podcast. I bring you the headlines and Tell you what’s really moving these markets. Daniel Creech, what’s going on, man? How’s everything?

0:00:31 – Daniel Creech

Everything’s great Frank.

0:00:32 – Frank Curzio

Happy Wednesday, sir. Happy Wednesday. So I was actually away this weekend. I had to spend time at a hotel, so I have really really good news. I had to run out this weekend to South Florida Beautiful hotel. Oh, I know the area well, Frank. I was just down there. Yeah, it’s nice, but we just locked in a venue and date for our first ever Curzio One Conference. I know a lot of clients, subscribers, investors have been busting my chops about it For seven years. When are you going to get a conference? Well, this is our first conference. I’m really excited. It’s going to be at Pier 66 in Fort Lauderdale. We locked in at dates from November 9th to 11th. It’s an amazing hotel. Stayed there for a couple days and they showed me everything. It was absolutely beautiful. I don’t know if you know anything about Pier 66, but I think they closed in 2017 for renovations and they just opened up this year.

0:01:22 – Daniel Creech

It’s un-frigging-believable, I don’t you didn’t even bring me a picture or brochure or nothing. Oh, I was like last second.

0:01:27 – Frank Curzio

I find out just like everybody else in this program. It was last second. Yeah, it was like. The people that are helping us are tremendous and you know they say, hey, you got to take a look at this hotel. They’re offering really good prices since they just opened up. It’s.

0:01:41 – Daniel Creech

Dan, you ever use a bidet? No, I was just about to ask what is that? Frank, I don’t want anything like that. I’m a redneck.

0:01:47 – Frank Curzio

Let me tell you, it’s one of those toilets that clean you. Let me tell you something everybody has the same reaction when you hit that thing. They go whoa and then they go whoa.

0:01:58 – Daniel Creech

This is our highlight.

0:02:00 – Frank Curzio

This is how we selected our conference menu. I’m just saying that was a big, big part of the deal. Now, if you haven’t used one, just use it. I’m telling you there’s not one person is going to say don’t like it. It’s the greatest thing on earth I know.

0:02:14 – Daniel Creech

And I’m just saying this is, this is luxury. It’s like Boca Raton, where I was. This is a luxury hotel.

0:02:19 – Frank Curzio

It’s beautiful, absolutely beautiful. They have three major pool areas that they have the uh, uh. The spa has a snow room and stuff. It’s just. It’s really, really nice, the venue’s nice, the food’s great. I think everyone’s gonna have a fantastic time. So we’re gonna start, you know, sending out emails pretty soon and we gotta lock it in now, but we’re looking at November, which is, you know, a couple weeks before Thanksgiving the 9th to the 11th. The 9th, 11th, all right, the 9th to 11th.

0:02:41 – Daniel Creech

So A subscriber is going to be very happy. Somebody approached me I appreciate it at the Boca Raton conference I was at and he was on me about getting serious about getting these dates. So look at that, yeah.

0:02:53 – Frank Curzio

Yeah, I’m telling you. I would say Email me. Actually, don’t email me. Email Frank about this.

0:03:02 – Daniel Creech

There’s at least 150 people in to hear that.

0:03:04 – Frank Curzio

Yeah, it’s really cool. I appreciate it. So, listen guys, curzio was our premier membership. It’s all inclusive. You get access to all of our products and services and we have a lot of products right. We have crypto, small caps, ai, we have a trading portfolio. You have access to all that. And investing in private deals they’re they’re risky and you’re going to lose money on many of them and you know making mistakes on so many of these deals.

Early on in my career, I realized what to look for, uh, and actually help structure these deals and, uh, you know we do. Well, we’re into a lot of great deals over the past like year and a half. I’m very, very excited about it. I invested a lot of money in these deals. Some of them look very, very attractive right now. Look good. Actually, we came in at $25 million valuations and several companies are raising money $100 million valuations in biotech and stuff. I just put together a nice deal You’re going to see for Curzio One members early next week and it’s with an entertainment company.

I don’t want to give you any more details, but they booked their first ever event at Resorts World, where we’re going to own 10% of this company and Curzio 1 investors get VIP tickets and hotel to every event they launch over the next two years and we’re going to try to give you access if this thing really takes off. It’s a great company. Again I don’t want to give too much of the details away to gambling rights as well, so we’re able to structure these deals when we’re early investors and we get to, you know, really structure them in our favor. So if they do work, the upside is going to be much, much, much greater than a lot of these deals. And just if you get warrants and you know you invest in private placements and stuff, but at this level and knowing the right people who are funding these deals and being able to get in and getting a piece of these deals, it’s been really exciting. You just need a couple of these to work out. And also for that Curzio One, you get access to our Curzio One conference, which we’re going to have every year, and I’m putting together a list of prime speakers for November. We should get a list of really good speakers, especially asking this early, considering I’ve been speaking at so many of these conferences for so many years and, man, so many people owe me favors. I’m just saying, I’m just saying Cashing in favors and I’m honored to speak at your conferences. I love it and these guys always take care of me and stuff. But just speaking of conferences the last 20 years all over the world and stuff like that, there’s a lot of people I know that would love to speak at this conference and we’re going to have a great audience there. So I’m really excited. Pier 66, fort Lauderdale, and you know, if you’re curious, and I’m really excited, really, really excited, wonderful.

Now let’s move on, because there’s a little bit of news, a little bit going on, a little bit going on right now and that’s we have Trump signs tariff deal with Japan and it’s every place right. You know, you guys have seen the news Tariff’s going to be low. It’s at 15%. Japan agreed to invest $550 billion. I mean it’s in the US, the numbers that we’re seeing, even in Pennsylvania. When we look at $93 billion, telling you, hey, you know what 93 was, so you used to elicit trillions and deficits and stuff like that. You got to put this shit in perspective. I mean $550 billion is a lot of money, right. I mean, how many plants could you build with that amount of money? You know, even Pennsylvania, it’s like 93 billion is 12% of their GDP put together with all these companies investing, right? So you need to look under the hood when it comes to these deals and the importance of these trade deals. You know, even if Trump is signing deals with states like Pennsylvania we covered that a couple of podcasts ago and said, listen, these are the companies that are going to benefit.

This is big money, big contracts. You’re opening up business to different countries, right? Japan’s going to invest here. We’re going to have access to their markets as well. For Japan, the key here is when you’re walking away from these deals as an investor. Right, japan is the Nikkei 225 pop, 4% all-time high and it’s been flirting with an all-time high leading up to this. It’s positive news, as expected from tariffs, and you know, we’re looking at highs outside of like last year not seen since 1989. I mean, this is game-changing stuff and I don’t know if you saw, because you might be like, oh, that’s pretty cool with the Japan deal, that’s great.

All right, let’s talk from a perspective which you listen to this podcast to get ideas. And, Daniel, you see Toyota up 12%, Honda up 11%, Nissan up 8%, Mazda up 18%. Sony is doing great. These tariff deals. We’re supposed to see tons of announcements over the next few weeks and what we’re seeing is, when we get these deals done, the stocks impacted the most within these countries see major moves. And you’re looking at Japan and their media saying, hey, we signed a great deal, this is great.

Same thing with the Middle East. And we went to the Middle East and took what 12, 15 of the leading CEOs there and hey, you have access to all our technology, you have access to AI, you have access to our energy and just, let’s sign deals. But just, you know, let’s sign deals, but everyone’s walking away, even investors where, holy shit? So how do you play this beforehand? You know, and that’s what I wanted to discuss I don’t know if you have any comments before I really dig in here, because I’m really going to dig in and how to make money on these tariff deals, because there’s a lot of announcements coming and I’m going to break down the countries that are coming over the next, you know, couple of weeks, right Next week, next week really, to August 1st, because you’re going to see deals sign with these countries.

You’re going to see stocks within these countries that have the most exposure to these countries. They’re going to surge. It’s like you saw Toyota, honda, nissan, mazda up tremendously and unfortunately I’ll get into this in a little while but it creates a significant disadvantage in terms of the cost structure when it comes to Ford and GM. This was bad news for those companies, and you know, but there are a lot of plays on this, Daniel.

0:08:26 – Daniel Creech

Quickly.

For me, I think the big takeaway here is investors, listeners of this podcast and our stuff. You really need to focus on what’s happening and not the message about what’s happening, and what I mean by that is you hear a lot of tariff tantrums and all kinds of stuff and Trump puts his foot in his mouth and he brings a lot of criticism on. I understand that, but you need to be able to take in all the noise, laugh at most of it, ignore most of it and then filter out some on how to make you money. The biggest takeaway here from me and what I think investors need to take away and I have no idea what detail Frank’s about to go in this is why this works so well. The 15% tariff is much lower than the original tariffs that were out there being feared, and I know you have to take everything with a grain of salt. Again, I know Trump leads into that. President Trump leads into that. However, this is the fifth largest trading partner we have. That’s why one reason it’s a big deal. Number two, Frank and I have been pounding the table on this, and it’s one of the reasons why not to put words in his mouth that Boeing is his pick for the best Dow stock because Boeing is going to be used in trades deals, because it’s very easy to narrow deficits by saying hey, you want to make a deal with us, Go buy planes or buy energy. And so the fact that the US is a exporter of energy something that Frank and I have been pounding the Florida table on in energy and energy production and exporting is amazing. And those big catalysts are all but front and center and going to get fire and gasoline just explode on these.

So the tariff tantrum is very overhyped. Look at Truth. Social President Trump talked Frank about how he uses negotiating, or tariffs, as a negotiating tool. If you think he’s still crazy, I respect that, but if you don’t think he has a plan with this, you’re just not paying attention. And this underscores the deals that I think will be announced before the deadline. And don’t even worry about the deadline. It can get pushed back. Deals like this are what’s important. This is the takeaway. The tariff isn’t that big of a deal, Frank. Back to you.

0:10:18 – Frank Curzio

Yeah. So the takeaways for me here is the automakers are going to bring tons of manufacturing back into the US. That’s what I’m seeing. So you talk about, you know, hundreds of billions of dollars are going to be put into these factories. But when you’re looking at the US and you’re increasing that, what do you need? You need people, right, and where do we get the million plus employees that manufacture this stuff? Where are they going to get the experience from?

Even Boeing came out with a note it’s funny that you mentioned that they just released this 2024 Pilot Technician Outlook. So they wait for the end and then they release it early in the next year and it’s a report they publish every year for the past two decades and they talk about the future of commercial aviation industry in terms of supply and demand In this report. Listen to this what Boeing said Okay, quoting the airline industry will need 2.4 million new aviation personnel over the next 20 years to support the recovery in commercial air travel and meet rising long-term growth. 2.4 million over the next 20 years Okay, you talk about hundreds of thousands, right? So every year you’re looking at same with auto industry, with these jobs coming back into the US. I mean, robots are coming. It’s that simple. I mean, tesla is a name we trade in and out of and that’s fine. You know, robots, personalized robots, robotics within these industries I mean, along with AI, this is massive, right. So, as you’re seeing this growth, it’s how do we lower costs? How do we do? And even with Amazon, where I think I saw an interview if you saw Amazon with, it was with the union boss or something, it was with the union boss or something. And now you know the unionized jobs are going to go for like trucks and stuff like that. And what is Amazon doing? Amazon’s saying that robots are going to be driving like almost our whole entire fleet soon. So you know, to avoid all that stuff. And this is what companies are doing. And you’re saying, okay, whether you like it or not, you want to get ahead of it. You know Tesla’s hard. We try to trade, but depends you know what side of the bed Elon Musk wakes up on, whether he likes Trump or not, which impacts his business tremendously, because you’ve got to be on the right side of politics, which we’ve been talking about. I mean robotics has to do with NVIDIA. You know you have Intuitive Surgical on, which just reported pretty good results. Again, it seems like they always beat ABB, rockmill Automation, zebra Technologies Just try to find you know. A lot of these companies are smaller. Those are publicly traded companies, but smaller companies get bought out right away. But robotics is here, you’re going to see this. Even Tesla just had this diner thing or whatever and they’re going to be serving you.

I go to Consumer Electronics Show every year. Last year was all about robots. I mean, they were everywhere. They were massaging you. They were making you coffee, making you dinner. It was incredible, right.

This year is going to be insane. The Consumer Electronics Show. I’m looking forward. This will be the best Consumer Electronics Show which I go every January for the last 13, 14 years, whatever. It’s going to be the best maybe that I’ve ever seen, and I’m hoping for it because there’s so many companies that are going to be showing their technology. You have a booming economy, so they’re going to be spending millions of dollars on these booths, which they do. They cut back over the past couple of years. More and more companies have more technology to show. I mean it’s going to be insane. This event’s going to be insane this year.

I suggest everyone go. Take your wife or whatever your spouse, your husband, whatever. It’s amazing, there’s stuff there for everyone. But this year is going to be a lot of fun. I think you’re going to see lots of displays and it’s going to be a lot of fun looking at these companies and the technology they’re coming out with. It’s just, you know, the amount of money pouring into these industries is on fire right now. That’s the first thing. That’s the first takeaway. The second takeaway for me is we saw what happened with trade deals in the Middle East, right. We saw what happened with UK, Vietnam, indonesia, a preliminary deal with China, and now we have Japan. However, we have the August 1st deadline right around the corner. It’s like a little over a week away.

There’s big countries that need to get it together or their economy is going to get annihilated. It’s that simple, and you’re talking about Brazil Right now. We have 50% tariff. We’re waiting on them. Canada 35% tariff, Mexico 30%. South Korea 25%.

The gorilla in the room is the EU right, which seems like it’s mandated to keep economic growth as slow, as freaking possible over the past two decades. Everything you possibly could to slow economic growth. That’s what the European Union does, and there’s statistics behind it too. I’m not just picking on them. Eu’s GDP grew by 13.5% between 2008 and 2023. I didn’t get 2024 numbers. That compares to the US, which grew 87%. China’s much, much higher than that. Every country’s higher EU just with the policies, the way they do business, the way it’s competition. It’s just. You know the antitrust laws. It’s horrible and they cannot afford to play hard, especially because they need a lot of stuff. I mean a massive deal for Europe, for the EU is on the table. Think about the energy that they need, right, then you don’t have to buy cheap energy from Russia or whoever. They need our military for protection.

They are lagging significantly in technology, which we have, because we have Trump with Jensen, with IBM, with AMD, and all these companies are saying here, you have access to everything. As soon as you sign this trade deal, you have access to everything. You open up your country. You open up our country. Your market goes all-time highs. Our market keeps going higher. We do all these trade deals. You’re bringing more manufacturing back to the US. You signed. It works out for everyone and that’s what he’s doing. Those are the deals that are on the table. Canada again they like to play tough, they like to play hardball. They’re going to absolutely annihilate their economy if they decide to do this. It’s a very small economy. Hopefully they come around, because it’s just energy things, it just works. It’s so easy to get a deal done.

But the two under-the-radar countries that I’m going to talk to you about and that I’m looking into and hopefully they sign a deal for their sake, they sign a trade deal with us, and these are countries that usually don’t come up on everybody’s radar. It’s Cambodia and Bangladesh. You’re like what are you talking about? These are massive, massive sources for apparel exports. In fact, Bangladesh is ranked second as the largest export in the world for ready-made garments, while Cambodia is ranked eighth. Now there hasn’t been deals signed, but we saw what just happened with Japan.

But if you look at the Gap H&M, levi’s, vh Corp, pvh Corp, tommy Hilfiger, Giorgio Armani, Ralph Lauren I mean you have all these companies. Gap’s down 25% in the past two months. Pvh is down 5%. Ralph Lauren, vfc are up 8%, 10% each over the past two months, not really feeling the effect too much. I don’t know VFCorp we know Well. We have that in the portfolio. We’ve done well the first time around. We recommended it because it came down.

But you have to look into these companies to see have they been removing operations out of these countries just to lower their exposure and tariff exposure? But GAAP seems like it hasn’t. But if their deal gets done with Cambodia and Bangladesh, you’re going to see GAAP pop, probably 15% off this deal, because they have massive exposure, just like we’re seeing with the automakers in Japan. That’s how you play this. So if you’re going to GAAP, you’re looking at Levi’s is another one. Levi’s is going to spike higher.

If we announce deals with Bangladesh and Cambodia when everyone’s going to be like, oh, wow, big deal, You’re going to see these stocks pop and maybe they talk about it on CNBC with David Faber and Jim Cramer. You’re going to be like, well, I own that. It’s a good trade. These are good trades, probably for the next deal going to happen, because when it does, it’s good for everyone around those countries. The stock markets usually go much, much higher and also the companies that are specific to those countries do very, very well and are going to pop and try to buy the names that have gotten heard off these tariffs. Because once a deal is signed, like we saw with the Japanese automakers, man, these things really surge 10, 15, 17. I mean, the MAZ is up like 17%. I think so really really, really good stuff. And again it’s helping the whole market. You know, move higher today the whole global market, the global markets are all moving higher today on this deal.

0:17:31 – Daniel Creech

Global Now. Now Trump can declare himself emperor and talk about all kinds of high asset prices.

0:17:39 – Frank Curzio

I know you can hate him or like him, but again, that’s that’s Don’t have hate in your heart.

0:17:42 – Daniel Creech

You mentioned GM. Do you want to talk more about that? Because only, or do you want to? Are we sticking with Japan?

0:17:48 – Frank Curzio

No, no, let’s get to some of the stocks.

0:17:54 – Daniel Creech

I have a couple of things on GM, but I just want to ask you because it stood out to me Shoot. So GM reported earnings and they beat and this is a great educational because, as Frank always jokes about or not not joking, but to point to make a fact it’s not just about beating the estimates, it’s looking into those estimates and then forward guidance. So GM reported better than expected numbers but the stock dropped over 6% the last time I saw it. And the big deal there was tariff, tariff, tariff, and they took a billion dollar hit which they foreshadowed. So it shouldn’t have been that big of a shocker. But CNBC was all over it, Frank, I thought and this is Daniel- Creech’s opinion.

I thought the media especially I can’t think of the gentleman’s name, but he’s a decent reporter on CNBC, but they were just having an orgasm over this tariff and this billion dollar hit, Frank, and they were so excited to tee it up and say, listen, these are ruining the economy.

And the GM CFO came on CNBC and kind of rained on their parade saying, listen, we foreshadowed this billion dollar hit. Earnings and margins did take a hit to the degree of about 20 to 30 percent, depending on how you’re looking at it, and that’s only year over year. So that’s a big number to pay attention to. However, the CFO said this is essentially the worst case behind. Said this is essentially the worst case behind, this should be the worst of the tariffs. And going forward, because of their blending and manufacturing and trying to do different things to offset those tariffs, they are going to think that they could get past this and let’s just say the worst is in the rearview mirror. All pun intended, Frank, do you buy GM and the tariff tantrum and hit headwinds being in the rearview mirror or not?

0:19:25 – Frank Curzio

No, so, you know, just showing a chart now, it’s up 4% today. I’m surprised it’s up 4%. I thought it would be down today on the Japan news, because it’s not good news. It’s, you know, the cost structure for Japan now, with tariffs in place and everything and the deal in place, it’s going to result in more of those cars being sold at cheaper prices. They’re going to have huge cost advantages compared to GM and Ford, which is crazy. Right, because GM and Ford decided because, listen, I broke this down with GM and Ford they did the right thing during the Biden administration. When Trump was elected president the first time, he threatened tariffs and they were thinking about. They made announcements to bring a lot of manufacturing back to the US. As soon as Biden was elected, they’re like no. And they increased their operations tremendously, which they should have done as a business. Right, again, you got to be on the right side of politics and they did in Mexico and Canada and said produce, all the cars are much cheaper. And now it came to bite them in the ass, right? So now they got to move all these operations back here, and you know, especially for their highest margin vehicles.

Uh, so, jim, if you look at the numbers they beat. You’re gonna hear that they beat both on the bottom and top line. By the way, it is a cheap stock. You’re gonna say it’s trading a single digit p. Whatever I. I think you have to avoid it here and for it, because I’m gonna put their numbers in perspective. They beat on the bottom and top line. Now, Daniel, what does that mean? When I say that they beat me, beat expectations, they beat expectations. The expectations that they beat are the analyst expectations that provide the numbers right, so nobody tells you how much the company is growing, not growing. It’s just a matter of if you beat that number or if you don’t.

They beat those numbers, but they lowered free cash flow significantly and you know when you’re looking under the hood. Earnings per share came in at $2.53. Daniel, they were down 17% year over year. In a market where everything’s on I won’t say everything’s on fire, because we saw a lot of other companies report shitty numbers. We’ll get to them in a minute. You’re not seeing. You’re seeing a bull market, but not in everything. Right, it’s selective. But a lot of companies are growing fast, especially in the AI world. Robotics, banks are doing great, even industrials and stuff like that, where some names are not doing that well. This is 17%. Year over year Sales fell 2%, the biggest year over year drop since 2021. They also lowered their free cash flow guidance from 12 billion to 9 billion. That is a massive lower. All right, that’s a massive reduction.

They sold 974,000 vehicles for the quarter. They were supposed to sell over a million. Ev sales totaled 46,000, which is less than 5% of the sales, and I thought that was important, considering GM. We remember they came out, which is less than 5% of the sales and I thought that was important, considering GM. We remember they came out and they still haven’t pulled back on this, but they have a goal to be 100% EVs by 2035, which is not going to happen. It’s less than 5% sales. Everyone’s cutting back because they just can’t make money on these. So good luck with that.

Also, if you’re looking at the trade deal I mentioned earlier, it’s just Japan automakers are going to have significant cost advantages. Bank of America came out with a note this morning about it, saying that it’s not good for Ford and GM. Ford and GM are two names that should not be in your portfolio. Have exposure to these Japanese automakers. Yes, they’re up today. Big deal. I mean just the advantages that they’re going to have until Ford and GM really get their operations to the US is going to take a long time for them to do that. But GM I just look the tariffs are going to impact them. The EV strategy they’re still winding down.

You’re seeing earnings decline dramatically. You know you don’t want to see that with a company investing. You’d be like, well, Frank, what about the dividend? It’s 1%, you know. So you know what are they going to do. They’ve been buying stock. The stock’s down, off its high. So yesterday it went. Yesterday it was down what six percent, you said. And today it’s up. Let me bring up that chart really quick. And you know so it’s 51. When they reported earnings it was 53. Uh, it was high as 54 and you know the stock just just fell from 53 to 49 and now it’s up four percent back to 51. So basically, you know, if you look at a couple days ago, two days ago when they reported it was 53, it’s only it’s back to 51. So, basically, if you look at a couple days ago, two days ago, when they reported it was 53, it’s back to 51. So, and I thought it should have been down today.

Maybe it’s just this little bit of a rebound, but I just don’t like GM here, I don’t like Ford here. I just think there’s better opportunities. Maybe they go up from here. I’m just saying that the opportunity is really if, if you want to have auto exposure, I would buy. You know, if you want to buy Tesla again, it’s hard with Elon Musk back and forth. They just have so many cows, especially robotics and everything going on with. You know, driverless cars and stuff like that, driverless taxis and robot taxis and stuff. But I would have more exposure to the Japanese automakers because now you see this huge growth profile, you’re going to see momentum behind. You’re going to see more money pouring into these names. These guys are really, really excited. Where GM4 is still trying to figure it out, they’re still trying to figure out.

So, yeah, be careful with these two names. I don’t think they should be in your portfolio. I don’t see major catalysts and even if they go higher, kind of like Disney Disney has been going higher, you’ve been doing great might be happy. Hey, it’s up, maybe it’s outperforming the S&P 500, but another one in there, and that’s how you become a great investor. You want to pick one of the better names in the industry where that’s going to.

You know the nvidia’s and amd’s really starting to come back, and I told you, amd looks really, really good. I just bought some of my personal portfolio, uh, you know a couple a couple weeks ago, which is, you know, a name that I didn’t like. But just from my contacts you’ve seen amd really step up in chips and a lot of these guys build hyperscalers that they’re signing deals for amd’s new chips, uh, and I haven’t seen that before and now I’m seeing it. So they’re catching up. They’re finally catching up. I’m interested to see what AMD reports. They do have other shitty divisions, but we’re going to see also who’s reporting tomorrow. And Max said we got Tesla reporting tomorrow and also Google. No.

0:24:55 – Daniel Creech

Oh, tonight, after the bell Tonight after the bell is Google?

0:24:57 – Frank Curzio

Yes, so we’ll talk about that.

0:25:06 – Daniel Creech

Those names tomorrow in Wall Street Unplugged Premium. But for GM guys, I suggest I would avoid it. Did I tell you I rode in a Tesla for the first time the other day? Did you? How’d you like it? A friend of mine was in town drives a Tesla and he gave me a ride. We went to breakfast you’ll know this off of 14th Street, heading south, and he said, hey, hold on to your coffee. And I knew they were fast.

I’ve watched YouTube videos of Tesla regular cars at the line versus supercars and all that, and it’s not that I don’t believe it. I knew that, but I had never experienced it. Frank, it is like a roller coaster and I’m a big roller coaster buff because the greatest roller coaster amusement park is Cedar Point and that happens to be in Ohio. Everybody down here in Disney World and all that kind. I’m telling you you guys have no idea what you’re missing. Stay down there, don’t go up there and visit. But I have to say, Frank, it was awesome. It’s literally a roller coaster. I mean, it pins you to your seat, that thing. Kudos to them. I don’t think there’s any other reason to have one, but I thought that was awesome and I have to give credit where credit is due, because I’ve criticized them.

0:26:02 – Frank Curzio

They’re it’s crazy. I mean this is three years ago the XI, which is one of the biggest sellers, which is for BMW, for electric car. I mean what is it? 700 horsepower or something. I mean I was in that car and they let you test drive it and then they have like a big area. It’s like a three mile test drive around, like this, you know, around, not around the whole city but around the area.

And you know, when you hit the gas and I had a camera guy with me when I went there three years ago and your head snaps back, it snaps back and the colors and just the lighting behind it, you know again, I just bought the first electric vehicle for my daughter. She’s kind of hating it now because she just hates charging it. She likes to go, you know, hang out an hour away with her friends and drive around and maybe spend a couple days sleeping at a friend’s house and stuff like that, and she just hates charging it. But you know these cars are super fast, they’re comfortable, they’re cool and, um, yeah, there’s definitely a market for them. I just don’t think the whole entire market should be 100 like gm oh hell.

0:26:54 – Daniel Creech

No, that’s ridiculous. I’m just saying forget all that stuff. It was just fun to go zero to whatever no, it is.

0:26:59 – Frank Curzio

They’re very, very fast. It’s cool. So, uh, Daniel, I’m gonna set the stage here, because we’ve been talking about AI demand surging. We saw GE Vranova report great results. Vistra report great results for some CRA, GE Vranova, Dan’s been pounding the table on as well, just saying you know talking about it for what? Since April right.

0:27:17 – Daniel Creech

Well, we’ve been talking about it, but I filled in for you in April one time and I mentioned GEV, along with Southern Duke and Dominion, so most of them are doing decent flat.

0:27:28 – Frank Curzio

I think one’s slightly down, but GEV is tearing it up, yeah, and we’re looking at these numbers and it’s incredible because people are just wondering, even we’re wondering when is demand going to slow?

And it’s not slowing, it’s picking up dramatically and evidenced by you talked about this, which is the talk about the PGM auctions, because I think that’s fascinating. It just shows you, you know, again, we talk about the AI demand. We look at the power rates, we look at CapEx spending, which is through the roof and it keeps going higher and higher, especially for the hyperscalers. You know there’s no sign of slowing down and we have great contacts in this industry and when it does slow down, we’re going to let you know because it will slow down. It will slow down hundreds of billions of dollars, you know, over the next few years to really be first right to just build these AI systems for the hyperscalers. It is going to slow down. We want to be there and let you know, but right now, even Taiwan Semi was another indicator. But talk about the PGM auctions, what they are, because that was fascinating, which just came out with, you know, some information on that past couple of days.

0:28:18 – Daniel Creech

Yeah, and so these are held. Pgm interconnection auction it’s for the base residual auction. All that means is hey, how much electricity do we need to keep our homes and businesses running during really hot, humid days during the summer and cold nights in the winter? Frank, pjm is the largest US electrical grid operator, serves over 65 million customers. To give you an idea of how big that is, now I’m going to throw some numbers at you. So bear with me here, Frank. You’ll like this. And also keep in mind, Frank, we’re talking about GEV more in a minute. Vst if you have a chart pulled up, that’s Vistra Energy and also CEG that’s Constellation. No doubt you’ve heard a lot about them, Frank.

134,311 megawatts were auctioned. Un. 1,311 megawatts were auctioned Unforced capacity, don’t worry about that and then they had 146,244 to cover peak demand. So to put that in perspective, Frank, how much is 134,311 megawatts? Well, it’s roughly enough to power 107 to 134 million homes for an hour, assuming 800 to 1,000 homes per megawatt. Frank, dumb it down to my level. Your hometown, New York City, seems like nobody cares about moving away. New York City and Chicago combined, is what that 134,000 is like.

Adding, Frank, are you interested in the resource mix of how this is going to break down 45% to natural gas, 21% to nuclear. Don’t tell the environmentalist. 22% of this energy is going to be made up by coal. But it’s okay, coal makes sense. Big beautiful, clean coal Shouldn’t say coal, you should say clean coal. Now, 4% hydro, 3% wind, 1% solar.

Now, quick note here for a moment the reason, one of the reasons we are so bullish on energy natural gas, oil, etc. Is because despite all of and I have fun with it and I’m not against it but despite the hydro, wind and solar investments and that’s very popular right now, because the big beautiful bill, a lot of these credits and tax advantages were pulled out and back in and all this kind of stuff. Tax advantages were pulled out and back in and all this kind of stuff. The takeaway here is we have to have power right now and in the short term, and the vast majority of power is coming from 45% natural gas, 21% nuclear, 22% coal. Think of all the investments over the last several years. And I know we’re just talking about one region.

But my point is you want to have exposure to natural gas and nuclear. These are going to bounce around, Frank, even if natural gas goes down from 45 to 40,. Do you think coal or, do you excuse me, do you think hydro and wind and solar are going to make up that difference? No, it’s going to be nuclear or it’s going to be coal, because they are more abundant than the other ones, than the other resources right now. So that’s a good breakdown. The takeaway here from just the auction, Frank, is the price per megawatt came in at $329.17. Now that by itself is worthless, but here we provide context and value. Remember context and environment.

0:31:16 – Frank Curzio

It’s true? No, it’s good.

0:31:18 – Daniel Creech

So last year we’re looking at the auction at $269.92. What do you want to take? That’s a 22% increase year over year. Now the total amount spent was $14.7 billion. Last year, $16.1 billion. That’s about 9.5%. Now the increase of 22% is key takeaway and the total spending is key takeaway. So remember 22%, remember 9.5%.

This is a good segue or not segue, but just a quick rabbit trail here on just because you hear the price going up that is paid does not mean the price at the end of the consumer is paid up is going to the same rate, and what I mean by that is that there’s an increase in megawatts at 22%. Frank, some of these suggestions could say that the impact on consumers because you want to know how this impacts you well, one if the cost of electricity is going up, then it’s not too hard of a limb, or too far of a limb, to go out and think us consumers are going to be paying higher and that will happen. Now suggestions are between one and a half and 5% that you could see your electricity bill go up. So if you’re paying $100 a month, you could see it increase up to say, 105. Some people in different areas, depending on transmissions, depending on resources and all that kind of stuff, will actually see some of their electricity costs go down. Don’t worry about where that is. You’ll hear about it, because Trump will be the first guy to point to any price decrease in the world about that.

Now the other thing here is Frank. The reason I bring that up is because this is like tariffs. If you have a 22% increase in electricity, kilowatt doesn’t mean and that equates to one and a half to 5% increase on the consumer. Think of that in the same terms of tariffs. It doesn’t mean that if you slap a 20% tariff on something that the end consumer is going to end up paying 20% higher, it’s absorbed and I got to give a Fed chair, powell, credit because he tries to break this down it’s absorbed between the exporter, the importer, the supply chains and the consumers and the manufacturers. So just understand that from a from an investing standpoint. Frank, are you impressed by the 22? Does anything stand out? I have some more stats I want to talk to you about. What do you?

0:33:20 – Frank Curzio

I’ve heard it too from other power supplies and constellation and deals that that you know and this was about nine months ago. And you see a contract for one of these deals and I think they booked I don’t know if it was from Microsoft and it was a 70% increase, annual increase, for three straight years. It was nine months ago. Microsoft couldn’t sign the deal fast enough. This is going to result. We talked about electricity. I have no idea.

When I looked at numbers I mean the current numbers and the current models are all broken for this they’re not accounting for the massive energy for the new generation of chips that are coming out. You know NVIDIA says well, you know it’s less power consumption for the chips. When you put them all together and you put them on the racks it’s a massive increase. And they’re just assuming that. You know you’re going to get more power by using less energy and that cannot happen. That’s not going to happen. So when I’m looking at these models and how much that we need like, you’re going to see price hikes across the United States for the electricity bill. I mean Illinois said that. You know consumers, they saw a 20, 25% increase and that’s from the last PGM. You know auction. So you know, now it’s 22% higher. So it’s going to continue to go higher and higher and higher. And I don’t know where they’re going to get the electricity from. I really don’t. That’s why they’re booking stuff. Like you know, again, oklo is doing great.

You’re seeing, you know, some of these SMRs right, which is, you know, basically portable uranium and stuff for power, doing great, even though they can’t scale this technology. They can’t. I keep saying that People are like well, Frank, they can’t scale it yet they can’t scale it. It’s not even existing yet it’s existing on such a small capacity and that’s why they’re signing deals so far out. But you look for technology that doesn’t even exist, that hasn’t even got the approval from the local, state and federal level, which is it gets nuclear.

How, how hard is it to get approval for that stuff? I mean, good luck if you’re in California, new York, and approval for that stuff. I mean you walk in, you knock on the door and they’re like no, they don’t even ask you your name. Who do you know? They’re like no, no, we don’t do deals here, no matter what, no matter what. If you want to participate, if you want to give us a ton of money. We may think about it, or that’s Businesses are going higher. Own power companies We’ve been telling you that for at least I think for two years now. Just own power companies. We have them all over our portfolios.

0:35:28 – Daniel Creech

We’re doing great and, Daniel, I know you can’t see from there, but we have a portfolio just showing Vistra and also GEV. Gev’s been on a tear. Obviously, they came out with positive earnings, but Vistra is up a little over 80% in CRA 80% in CRA for the year, it’s up 160%.

0:35:50 – Frank Curzio

And when you look at GF Renova, it’s up 277% for the year for the year right. So you know we’ve been on these names. Hopefully you’re doing well on them Again. Sometimes we get stuff wrong, but you know we’ve really been on the energy trend, the AI trend and hopefully been doing really well in these things, but there’s just no sign right now of any demand slowing. So it’s not and we’re not just look, the gold bugs are going to tell you to recommend gold no matter what for the next 100 years, no matter what conditions they are. We’re going to let you know.

I mean, Taiwan Semi is the easiest way to know. You see declines in Taiwan Semi. They’re raising free cash flow guys raising the numbers. Taiwan semi, that’s where most of the chips are produced and that’s you’re going to see it there first. Uh, before you see nvidia even report and say, hey, you know we saw a slowdown or whatever, but you’re not seeing the slowdowns they all have.

Anyone in this industry had still has pricing power. There’s still innovation going on this industry. It’s incredible in terms of you know going from just you know going to liquid cool systems. Now it’s, it’s, it’s remark, and even that there’s another step up, that they talk about technology. It’s going to be even better than that to cool these systems. So when we know, we’ll let you know. When we see a slowdown, you’ll probably see some of these things get hit a little bit. We’re not seeing a slowdown. We’re seeing demand actually increase. Demand is increasing across the board for AI, for power, for everything involved in this trend, and it really is incredible, incredible. So we definitely want to bring that up and good job doing the research on that, because a lot of people don’t know, I would say, and because it’s complicated. But we’re trying to explain to you and not throw in numbers and megawatts and gigawatts and tell you you know how many houses this fuels and how big this trend is. But now all you need to know is companies are signing contracts and prices are increasing by 20% year over year.

When do you see that? Okay, think about what happened during the credit crisis. Before the credit crisis and the credit crisis was 2007. It really started. You started seeing countrywide and shit hit the fan. 2008 was the actual crash into 2009. But when you look at 2005, 4, 5, 6, like 3, 4, 5, 6, I mean home prices going up 20. I mean the amount of money you could have made during that trend before this shit hit the fan I’m not saying it’s going to hit like a credit crisis thing, but you’re going to see demand fall off a little bit the amount of money to be made in those stocks is just incredible. And you still have room to run. We’re still holding a lot of these names. I’ve been doing very well and hopefully said so, what do you want to talk about now? Coca-cola Coca-Cola reported.

0:38:06 – Daniel Creech

Coca-Cola’s. Just the only thing I know about Coke is supposedly they’re going to use real cane sugar in some new drink because Trump was beating them up over that. That’s the headlines say. I don’t know if that’s true. I’m a Diet Coke guy too, which evidently is worse for you than regular Coke.

0:38:21 – Frank Curzio

How is that possible? It says diet Exactly. I don’t know. I love Diet Coke too. I do that. I don’t drink it as much.

0:38:27 – Daniel Creech

My habits must be decent cocktail for decent health because, thank goodness and I’m very blessed, thank God I have a wonderful immune system.

0:38:36 – Frank Curzio

What’s your favorite cocktail?

0:38:38 – Daniel Creech

Bourbon and red wine. Actually, I’m getting older, Frank. I’m approaching 40 very quickly, which I couldn’t be happier about. I’m starting to go more red wine than bourbon, are you really? Yeah, yeah, I’m telling you, oh gosh.

0:38:50 – Frank Curzio

You know why? Because you go to all these cigar bars and you meet all these people, and now you’re going to be snobby. That’s a snobby, you know.

0:38:56 – Daniel Creech

Yeah, I’m working on the snobby part. Change your field, type of everything. Take the red wine please.

0:39:02 – Frank Curzio

Yeah, imagine saying that when you’re in your 20s with your friends yeah, hey, what beer you want, you got to do shots. I’ll take a red wine. Yeah, you get punched in the face in that.

0:39:10 – Daniel Creech

You can only say that with a good-looking woman on your arm. That’s how you get away with that.

0:39:13 – Frank Curzio

Yeah, you get away with anything with a good-looking woman on your arm probably 1% to 12.5 billion global unit. Case volume fell 1% in the quarter, every division but Coke’s Europe’s division. So you have a Middle East Africa business. They report a shrinking volume. And when I look at Coca-Cola and they’re getting into prebiotics and stuff like that along with Pepsi, I thought Pepsi reported a much better quarter than these guys. Coke is like this company that just chugs along and does well. I just want to bring up some statistics here.

0:39:45 – Daniel Creech

So sales up, volumes down. What makes up the difference? Oh, price hikes Exactly. Don’t they just jack them up?

0:39:50 – Frank Curzio

But the thing is, and that’s what I was going to talk about because Coca-Cola has raised prices, I want to say for 40 consecutive quarters. Am I right? 40, 12, 16, 20. I’m sorry, I think it fountain sodas now, when they used to be. You know, the gas station is still kind of low, right, the gas station like, oh, it’s $1.50 or whatever, but remember they used to be a lot cheaper.

But you know, I look at Coca-Cola and I want to see what the all-time the S&P 500, because this company, while it hits highs, I feel like it goes up slower than the S&P 500. And the S&P 500 has outperformed Coke. S&p 500 is up 14% over the past what 12 months, while Coke is up 6%. I mean, if we look at five-year chart as well, the S&P 500 is up 97% and let me show you guys this, if you’re watching on YouTube and Coke is up 47% and you can throw Coke’s dividend in there. I don’t think this includes the S&P 500 dividend, because Coke’s dividend is where? Is it? 3%? So you know, coke is like this company everybody talks about. It’s constantly going along and, just you know, report, but it’s just a slow-growing company and they lack innovation to the point where they just acquire everything and wait for a company to really grow and be great, and then they acquire it.

What I did notice in this quarter is those numbers, like you said, which makes up the difference. I’m noticing that they seem to be I don’t want to say losing pricing power, but it’s having less of an effect. They’re not being able to raise the prices like they raised in past quarters and I think in the past four quarters before this one that I reported, I’m pretty sure they raised prices by I think it’s close to like 35%, and I did this analysis a while ago from last quarter. So they continue to raise their prices. But you get to a point where you know, hey, pepsi corner was good and now you’re losing people who maybe have Coke and now they want Pepsi and working out deals, but there’s a limit to your pricing power. There’s a limit to your pricing power when it comes to Airbnb, where this company’s starting up right now that are challenging them because their fees are too high.

I take taxis sometimes when I get out of the airport because the taxi is right there and going to an Uber is further because the fees on Uber used to be so much cheaper. They going to an Uber is further because the fees on Uber used to be so much cheaper. They’re not cheaper anymore because they’re raising prices. So you’re in an environment. Just because you’re raising prices doesn’t mean the consumer is going to pay, and I think that’s what Powell might have it wrong on tariffs. Just because you’re raising, you know, if your cars cost more, then you got to shop. Maybe I’m not going to get the. You know whatever. A Ford Bronco, whatever you’re going to get a Ford. You know Explorer, whatever. Maybe you’re going to get something else because the price is too high.

So when I look at Coca-Cola, I see a company that the only reason why it’s grown as much as it has because it has pricing power, and you’re taking that away right now it seems like they don’t have as much pricing power. I just don’t like Coca-Cola here. You know Pepsi reported a better quarter. If you have to own one of them, I’d probably own Pepsi, but you know I don’t know if I own them both. They’re slow growers. But Coca-Cola I just didn’t like the quarter and you know people say it’s closer, it’s all-time high and stuff no-transcript for you. But there’s so many other options that have outgrown Coca-Cola, to be honest with you and that’s going to be the case, I think, over.

Don’t know what’s going on with that team, but it’s just you know and again, my friend is the best beneficiary of it who stole two companies for over a billion dollars, which is Vitamin Water and what is it? Body Armor, right so Micropoly from Queens, right. So you know two companies he created and they had Micropoly working at Coca-Cola for a while after they bought his company, who he told me he was making, Derek Jeter money. At the time Coca-Cola paid him to keep him on board for a little while, but you know you got to learn how to. Not only that, you pay him a fortune, but you know you have to learn to innovate. And just, the innovation is not there. They just take over companies, which is fine. Oracle does a much better job at it. You’ve seen that company at all-time highs, just record. Just. You know you could do that as a roll-up. But just, coca-cola doesn’t buy these companies at the right price. They pay huge premiums after they have these massive growth. And you know, even that model I think you’re starting to see it hasn’t really been working, as the disconnect between Coca-Cola and the S&P 500. You can’t brag about how Coca-Cola last five years when the S&P 500 outperformed it by 100%. So you know and this quarter just didn’t give me any confidence that you should go into Coca-Cola and buy Coca-Cola Like J&J.

J&j reported a great quarter. I was like J&J finally turned the corner. They were just shit, shit, shit. They lowered their costs. They had that great cancer portfolio. They sold their consumer portfolio, which they don’t have to compete with freaking Amazon anymore. Yeah, they took the necessary steps. They just reported a reporter great quarter. That’s a name I really like as a staple, but when I look at coca-cola I just don’t see it, especially with these numbers didn’t confirm anything that makes me tell you to go out there and buy it.

0:44:43 – Daniel Creech

So I’m I’m still disappointed that diet coke is worse than the other one. I thought I was doing something well there, yeah has the word die in it.

0:44:51 – Frank Curzio

Come on, it’s gotta be good. So what else do we have? Come on, company, see if philip morris, philip morris, kind of shit the bed right. I mean Philip Morris didn’t do too well, but that stock fell by like 7% of their earnings.

0:45:01 – Daniel Creech

Yeah, but Philip Morris had a great run. Let me pull up the PM here. It had a solid run. I mean, it was at or near all-time highs and, Frank, if you look at it from the beginning of 2025, even if you take the tariff tantrum, because everything sold off in April, but if you’re looking at it, went down to say, a buck 45. It’s a nice year chart. It’s rallied up to what? 180 and then dropped.

Listen, these guys, these guys are one of. We joke about this and you know it’s not funny. It’s just dark sense of humor. These guys are the only ones that can kill your customers. Okay, these businesses, you just wait for a sell off.

If you want the, if you want exposure to these types of businesses and I say these types of businesses as just the steady grind higher. Yes, they could go through sideways periods, but your risk of loss, your risk of total capital loss of these companies going out of business, are very, very, very low. So this is just a very boring grinding higher. Do you have to chase it here? No, but I would use this pullback as a buying opportunity if you wanted exposure to just this kind of constant juggernaut. That’s always going to be there. It’s always going to get financing.

All the fears and BS you hear in the media are just simply wrong. People are not going to give up on this product. They’re going to continue innovating. They always can tap the debt markets.

It’s just one of those unique wild stories, Frank, that I would argue the biggest risk here is, Frank, tell me you got to look at what triggers market movement, and a lot of that is momentum and money flow. You tell me water cooler talk. When is it going to get popular on social media? Or what portfolio manager is bragging to them others about buying Philip Morris or Altria? Not a Florida one of them? And that’s the weird big risk here. But that doesn’t mean that money won’t flow into it. It flows where it’s, nice it’s. Just do not give up on these. Don’t buy into the. Dame Sanders, I know Frank isn’t saying that he was pulling out the pullback, but, man, if you, if you glance out, I wouldn’t trade these. I would buy them and hold them if you want exposure to this. But there’s a lot of options to play for these great dividend churning hires, if you like.

0:47:01 – Frank Curzio

Yeah, and you look at Coca-Cola like significantly underperforming this. I just have a chart of a year, chart just of the. You know, SPX, Coke and Philip Morris, and Philip Morris up 53% for the year. Well, you know, SP’s up 14% Coke underperformed as well, so half of that. So Pee’s up 14% Coke underperformed as well, so half of that. So it’s pretty remarkable when you see how great this company did when I say shit to bet. It just had a bad quarter. Stock fell off 7%.

0:47:24 – Daniel Creech

Which is a massive move. It was worth paying two years for that stock yeah.

0:47:26 – Frank Curzio

You’re right, it was a massive move, and you know what I looked at too. I was like what’s the dividend on this thing? You know the stock’s really kicking ass you know, what I mean?

Because it means as the stock goes higher, the dividend gets a percentage. Right, the dividend’s a percentage, so when the stock’s lower it’s going to pay a higher percentage, like when GM was a lot lower, paid higher. Who’s the other dividend? I remember that was really sky high. Exxon, exxon, I just thought they did a horrible job keeping their dividend. I know why Dividend at it, you know, but it’s just. You know things were really bad for them a while ago and now the stock has come back. But you know the amount of money you put into dividend, the amount the assets you could have bought at the bottom over the past five, six years in oil would have outpaced that dramatically and even buyback. So you know I’m looking at this company. It’s just yeah, is it a buy and a pullback? I mean, look, they’ve really been kicking ass. I mean this just is a year. You look at the five-year chart. Maybe the five years up 100 and 19%. Compared to S&P is up almost 100%. Cole, over the past five years only up 47%. So look, it might be a good name in your portfolio, it might be a good pick on a pullback here. And just let me show you these if you’re watching on YouTube, just comparisons.

But the bottom line here is we talk a lot about speculative names. We talk a lot about trends. I love to follow trends. I’m just, you know, fascinated by by trends and how that they’re built and how it’s time just fizzle out. I’ve always been in in the last 20 years of my career uh, you should have these things in your portfolio. I mean these boring, freaking, stupid names. I just say, like, like the philip morris’s or you know, maybe it was an energy company where energy companies are kind of like the growth companies now. But, you know, you might have a Johnson Johnson in the portfolio. You might have an Exxon in the portfolio. You need some of these, just like that steady, okay, it’s paying dividends, you know chugging along, and then you have your aggressive portfolio.

You should have access to digital assets, which we’ve been, you know, promoting for, you know, at least six years, five years, six years now, and hopefully you own them because the genius bill passed. I mean, sky’s the limit. It’s a $4 trillion economy right now. For crypto, it’s going to be a $10, $15 trillion economy. It’s going to disrupt so many industries, especially finance. We’re going to talk about more of this tomorrow, Daniel. But Goldman Sachs came out big news with digital assets as well. In terms of launching, is it the stable coin that they’re launching?

0:49:42 – Daniel Creech

Goldman and BNY. You mean, Is that what you’re? Talking about, yeah, partnership that’s around a hold my feet to the fire, but that’s around a tokenized money market.

0:49:51 – Frank Curzio

Yeah, tokenized money market, because there’s something to do, because I remember seeing the seven trillion.

0:49:56 – Daniel Creech

You see, this seven trillion figure in money markets. That was yep. What am I? What am I looking? That was in addition to that was talked about when this uh Goldman Sachs bny deal yes, it’s just digitalized the revolutions here.

0:50:10 – Frank Curzio

I mean, you have all the laws passed. You have trump taking you know through his uh, uh, trump media stock just bought. He raised two and a half billion dollars like this from from 50 investors. Like that. That’s what you do when you’re in power. Everyone wants to invest in you. And then they bought over $2 billion in Bitcoin and it’s in his best interest of Bitcoin to skyrocket, because that’s his investment vehicle, that’s the vehicle that’s the Adnani Group, that’s the Berkshire Hathaway, that’s the icon at the prizes, that’s his wealth, even after the presidency. Right, and that’s a $5 billion market cap. They just have $3 billion on a balance sheet where they use $2.5 or $2 billion to buy Bitcoin. Right, and remember when they passed the law for Bitcoin, when it came to the executive order, with having a strategic reserve, that only includes and people were disappointed, I was disappointed it only includes everything that they confiscate. But Senator Loomis and the deal on the table was hey, we’re going to buy 100,000 or 200,000 Bitcoin every year for the next five years to get up to a million. There’s only right now, based on a halving 160,000 being produced, and the reason why Trump didn’t announce that is because he needs Congress approval for that.

I don’t know if you’ve been following the news. Everything that Trump wants he gets Anything right when it comes to Congress approval everything. You got the genius bill. I think there was a defense spending bill underneath that. That was passed. You had the big, beautiful bill. That’s what happens when you have all the branches of the government. No one’s going to go against them, or they’re not going now, which is in his best interest.

And again you could hate the guy and say this is bullshit. Whatever I’m talking about making money. You know you’re looking at a guy who now owns Bitcoin on a balance sheet where you know personally. Basically, he’s one of the biggest, biggest owner of that, that vehicle. It really is incredible to see. You know what’s coming down the pipeline in crypto and digital assets, which is remarkable. I mean that whole industry has just opened up tremendously. And man, all those billionaires, all of them. If you look at Justin Sun, you look at CZ, you look at the Winklevoss twins, you know just across the board. All these people just owe Trump big time. He’s dismissed lawsuits. You look at Coinbase where Coinbase is, Daniel. No, I’m not going to bring that up with you. Of course he beats himself so much about getting. I he beats himself so much about getting.

0:52:18 – Daniel Creech

I’ll tell you the same damn thing happened on Coinbase and then CRA members can know. I recommend a block. Xyz Sold it at the absolute bottom. It’s an absolute black eye. And then it strikes again they get accepted into the S&P 500. Frank, pull up XYZ for Humble Pie, if you would, please. Do you have a chart up? I’ll bring it up for you. I don’t know what it’s at, but just look at the very florida low and that’s where I sold it. So what is it? Xyz, xyz that’s funny.

0:52:45 – Frank Curzio

In fact, now I gotta pull it out. What block? Yes, the block is up, so yeah.

0:52:48 – Daniel Creech

So if you look back, at uh, the may see that. See that bar in may where it was around 45 right there.

0:52:56 – Frank Curzio

Yeah, sometimes that happens. You have to risk. Sometimes that happens.

0:52:59 – Daniel Creech

You want to reduce your risk.

0:53:00 – Frank Curzio

Sometimes that happens, it happens, and we talk about our losers because we’re always up front and that’s the way it should be, but again, we have a lot of winners in our portfolio. People are doing well and we’re really happy about that. We’ve done a good job in the market, especially over the past few months, being able to add to our positions on tariffs and doing very, very well here, and hopefully everyone’s participating, even a lot of our aggressive stocks. Some of them are doing incredibly well for us, with some of the small caps and names that we’ve gotten into very early, which we’re very excited about. So just a couple of names. What were you going to say? Can I say something, Daniel?

0:53:31 – Daniel Creech

Well, yeah, I was going to say I’m glad you corrected yourself on the legislation. I thought you were saying Trump needs to position himself in front running by Bitcoin before he can get Congress’s approval.

0:53:42 – Frank Curzio

No. So what he’s going to do is I’m just telling you that you’re going to see that take place right there. You’re going to see, probably, the government come out with a law and saying, OK, now you know and go through Congress that we’re going to be purchasing, and maybe it’s not 200,000. If it’s 200,000, guys think where Bitcoin is going to go. Think where Bitcoin’s going to go. Okay, there’s only 160,000 Bitcoin that are produced now since the halving and just the US Treasury.

0:54:03 – Daniel Creech

What is it? Four a day, 400 a day you use that stat a lot. What is it?

0:54:06 – Frank Curzio

Yeah, so I have a picture here, so hold on, I can show it to you. So it’s, 450 Bitcoin are produced every day.

0:54:12 – Daniel Creech

Okay, so times that. That’s where you get that.

0:54:14 – Frank Curzio

It’s $164,250 produced annually and just the treasury alone wants to buy $200,000. We’re not talking about the 2% allocation that BlackRock and $13 trillion assets and now Fidelity as well A lot of these big companies are all saying you’re allowed to take custody. 2% of the $100 trillion market is another $2 trillion that can come into this market Probably more, because people are excited about digital assets. You’re not talking about all the Bitcoin strategies going on now, all these SPACs and reverse mergers that are becoming Bitcoin treasury companies. You’re not talking about strategic Bitcoin reserves for other countries which are probably going to launch. You’re looking at Bitcoin at $250,000 plus in 12 months if they announce that there’s just no supply in the market. There’s just no supply in the market. So you wonder why this thing is really going to take off, why these Bitcoin strategy things are working there it is, and you know we’ll talk about more and get into that a little bit more tomorrow in our premium podcast. But I just wanted to say one company I was surprised Lockheed. You know Lockheed reported in numbers that weren’t that good right, and that stock fell pretty sharply, which I was surprised about because you want to say, well, is that based on defense spending and why did it pull back so much? And then you have, you know, General Dynamics just reported great numbers, but Lockheed is wow. I don’t know why I got to look into Lockheed a little bit and see if it’s a buy.

Lockheed is one of the only companies I know of right now, one of the large cap companies I know of, that’s near its 52-week low. It’s trading at 420. Its companies I know of that’s it’s near it’s 52 week low. It’s trading at 420. It’s 52 week low was 410 and it’s 52 week high was 618. So you know it’s just within. If it’s the, if it’s missiles, if it’s again, you know you might have drones taking over. A lot of this with avavr, fire, credos, tunings that we own a portfolio, just absolutely have taken off. We’ve been well ahead of the drone trend, uh.

But it’s just curious because, uh, yeah, this is the name that down, you would think at 460 when they reported that. You’re like, okay, this company is down and you know, just like every company that’s really any large cap company that’s down a lot in the bull market is almost kind of a buy because even if you know, again, the bull market, you just you just need to not even meet numbers. They just can’t be really terrible. Lockheed’s numbers, what they had low expectations and they were horrible. And the stock just you know, 460 to 420. And then, yeah, let’s take a look at General Dynamics really quick, because they reported those numbers were pretty good and that name’s up 6% right now. So I don’t know what’s up with Lockheed. I’ve got to look more into it. If anyone follows Lockheed you’d know the answers to that. But we don’t follow every detail of every single stock. But I really want to take a look and see general dynamics.

0:56:45 – Daniel Creech

All we care about, Frank, is RTX, which is your pick in dollar stock clubs at a 52-week high.

0:56:52 – Frank Curzio

So we’re not worried about Lockheed.

0:56:54 – Daniel Creech

Yeah, but, Lockheed, you pick on that one because you picked the right one.

0:56:57 – Frank Curzio

Yeah, and you’re looking at general dynamics, which is that they’re pretty much all-time high 318 bucks up 6% today. So it’s not a reflection of Lockheed, that defense is really rolling over, like you may see, oil rolling over or the industry is rolling over. It’s just sometimes it’s company-specific. What we’re seeing with home builders as well home builders we’ll talk about tomorrow. Home prices continue to hit record highs. What’s going to happen with mortgage rates? You know how many people the high-end houses are starting to really fly off the markets A million dollars more. There’s so many people on the sidelines that want to buy homes that they don’t want to pay high interest rates If you really believe that interest rates are going to come down a lot more. The homebuilders you just saw a massive pop. We’re going to talk about more tomorrow on the premium podcast and maybe give you a few names. But homebuilders, interest rates going lower, the housing market we’re seeing an economy that’s doing very well. Stock market’s doing well without housing, which is pretty incredible because that’s one of the biggest drivers of economic growth and we haven’t really seen that participation. We’re going to see rates going lower and hopefully they do go lower, because I think they should go lower. I think they should go lower. I think they should lower rates and shout out to Muhammad Alarian, someone I interviewed very early at thestreetcom when I was doing the podcast, when I just took it over, the real story for Kramer, great guy, I love them, you know, I never forget. He was like those are amazing questions, you’re great. I mean, actually he tried to hire me for PIMCO when he was working there and he came out and said that the Fed chairman should retire or just, you know, to step down, resign Frank and resign, which is kind of retiring right, retiring from the Fed, but which is because he just, you know, just to maintain the independence. So you know, I was surprised as someone. Usually those guys stick together, the Steve Leismans, they stick together, the economists stick together and I get it, that’s cool. People in different industries stick together. I understand that that’s cool, it’s like a brotherhood. But for him to really defect and say that I was surprised, because he usually toes the lines very careful what he says and the pipes are clogged and they got a clean here in a credit crisis. He’s just great, I love him. He’s a great guy, he’s a brilliant economist. But I was surprised that he said that and, uh, very, very interesting.

So, um, yeah, we’re going to get we’re going to go over a lot of stuff tomorrow more crypto stuff tomorrow in the premium podcast We’ll be offer. You know, the value of that is probably thousands and thousands. I mean, people are trading portfolios, what we have there, seriously in our industry, because I know everyone in the industry they charge pretty much $2,500 for that. You’re getting it for a hundred dollars. You know we wanted to provide something that’s a really good value for everyone. So if you want to learn more about Walsh and Blunt Premium, go to our website, CurzioResearch.com. Other than that, we’re out of here.

So, any final thoughts? Daniel, no, before you say no, I’m going to say there is one final thought RIP to Ozzy Osbourne. Ozzy Osbourne man, he was freaking amazing, amazing, amazing. So yeah, so RIP, but just love his music. I’ve always loved his music.

I love the crazy stories I was told about him. Just, I know we’re going to go over. I got to tell you a story that you know Motley Crue right, motley Crue is the craziest band drugs hookers, girls, everything crazy, right, the nuttiest band. Most bands, like you know, go crazy and they would talk about Ozzy Osbourne one day and they were like coca-cola. They were all wrecked and I don’t know, stoned and coked up or whatever. And he said he poured coca-cola along like right by like a little anthill, in a straight line and all the ants like started going and and he took it, he snorted all the ants up. It’s kind of like imagine, like you’re looking at, molly crew is absolutely insane those guys going like, no, no, you have no idea.

O Ozzy’s on another level, right and just a reality show. I just thought he was entertaining and they tried to bring him out a couple weeks ago for a show and people are like, why are you bringing him out for, or whatever they didn’t try to. They did. Yeah, good for him, though I mean, yeah, they might not look good in the audience or whatever. So, yeah, I’m an Ozzy Osbourne fan, so I just want to give him a shout out. So, guys, that’s it for us. Questions, comments feel free to email me Frank@curzioresearch.com. Daniel, what’s your email?

1:01:03 – Daniel Creech

Daniel@curzioresearch.com.

1:01:06 – Frank Curzio

All right, guys, we’ll see you tomorrow on Wall Street. Unplugged Premium.

1:01:17 – Daniel Creech

Take care.

1:01:18 – Announcer

Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its host and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money, and your responsibility.