Changing things up a bit this week… Daniel returns to discuss current events. We start by going over a bizarre situation involving Southwest Airlines…
The airline canceled nearly 2,000 flights over the weekend, blaming it on bad weather. Daniel and I discuss the role vaccine mandates are playing in the disruption. [1:30]
Speaking of vaccine mandates, I’m done sugarcoating this: Freedoms are being taken away from individuals here in the U.S. While I’m personally vaccinated, I strongly believe it should be an individual choice… and these mandates will crush our economy. [5:30]
Inflation is making it a tough environment for finding ideas. Daniel explains why he’s focusing on ESG (environmental, social, and governance). [18:40]
With earnings season kicking into full gear, we share what we’re most excited about as we dig through earnings results. [28:20]
Lastly, if you’re looking for an easy way to add crypto to your portfolio, keep an eye out for a special offer I’m putting together for my Crypto Intelligence advisory. We’ve got some massive winners in the portfolio—I’m talking in the triple and quadruple digits—with more room to run… [32:50].
- Vaccine mandates and the Southwest disruption [1:20]
- Why vaccines should be an individual choice [5:20]
- Why Daniel is focusing on ESG in this tough environment [18:30]
- Earnings season: What we’re most excited about [28:00]
- An easy way to add crypto to your portfolio [32:50]
Wall Street Unplugged | 807
Biden’s vaccine mandate will crush our economy
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.
Frank Curzio: How’s it going out there? It’s October 14th. I’m Frank Curzio, host of the Wall Street Unplugged podcast, where I break that headlines and tell you what’s really moving these markets. So real quick, hope you guys are enjoying the new format, trying to get out as many podcasts as possible per week. We started doing interviews on Thursday, but I want it to be freestyling. And that’s why I want to get your thoughts at firstname.lastname@example.org, because I don’t want to just put someone on here where they’re not as relevant because maybe, for example, it’s a specialist in gold, which gold hasn’t really been doing anything lately, right?
Frank Curzio: But yet, we got Amir on uranium, uranium is surging. Came down a little bit, now it’s surging again. So, I wanted to get more guests timely… Get them on and interview them timely for you guys. But which means we might not have interviews sometimes. So then, I could bring in and talk about the markets, a lot going on today, and I’m going to bring in Daniel again to do that. But I want to hear your thoughts on the new format. We’re getting a lot of positivity so far, a lot of positive people, which is not really normal. Right, Daniel? I don’t think. Getting positive emails all the time.
Daniel Creech: That’s a good intro. “Hey, I want to bring in timely guests, but I couldn’t find one this week. So, Daniel…” That’s authentic, people.
Frank Curzio: Basically, yeah. I like to bring in someone to talk about the strikes going on in Southwest, and things like that, last minute. But it’s pretty crazy. I guess Daniel, senior research analyst here at Curzio Research… Let’s start there because the Southwest thing has been interesting. Here they are saying that, “It’s weather related due to Florida.” I live in Florida. You live in Florida. The weather’s been pretty good. It’s been raining here and… There’s no hurricanes. It’s not insane. Sometimes you get, during the day, like normal, a bad thunderstorm for an hour or two. It’s not the weather. Then they’re like, “Is it a cruise?” I don’t know what it is, but I know the other airlines reported… And you didn’t see that from Delta, right? They just highlighted that, “Hey, you know what, those…” Energy is getting higher. So, it’s going to hurt us a little bit, which is expected. And it was a little unexpected because it took a little bit of a pullback there for 5% yesterday, but I don’t know what’s going on over there.
Frank Curzio: And to me it feels like even when you’re seeing a big striking outs today, which resulted for deer where they couldn’t come to agreements. There’s a lot of stuff going out there, I think with labor issues that are a big concern to this market that I feel like are probably in the second inning right now, and going to get a lot worse and people think they’re going to get better. And I want to get your thoughts out on it because I’m going to go really deep into this. But what I’m seeing out there, even with the mandating, the vaccine and things like that, these companies generate massive profits. And now, you have the unions going, “Hey, you guys are doing fantastic right now. We want more…” Which you’re seeing with John Deere and it’s resulting… The bottom line is, few people going to work and you can’t find labor. And if you can’t find labor, that’s a very, very, very, very big issue. And I think it’s going to get a lot worse.
Daniel Creech: Yeah. That’s easily where all the odds are pointing to. The Southwest thing, it’s a coincidence that their pilots are suing the company about this mandating the vaccines, which is even more ironic because the governor, who Frank is rubbing shoulders shoulder with, what is it? Governor Abbott.
Frank Curzio: Abbott. It was cool. He just came, I was tying my shoe, he’s like, “How you doing?” I was at a fundraiser that I shouldn’t have… It was a crowd that was well, well, well above my pay grade, I’m not kidding you. It was well above the pay grade. I’m like, “How are you doing?” And they will be like, “Yeah.” They’re walking away like this guy’s a nobody. But Abbott was there. Was about 60 people and he spoke and it was a fundraiser but-
Daniel Creech: But he did an executive order about basically saying, hey, you can’t… In the state of Texas, you’re not allowed to mandate these vaccines. And you can double check me on this, but Southwest is headquartered in Texas, right?
Frank Curzio: Yes. I believe they are.
Daniel Creech: Okay. So, you got this odd… And I’m not saying that other airlines didn’t cancel any flights over this past weekend. Because things happen and traveling sucks in general for the most part now, but you can’t get around the fact that Southwest canceled many more flights. This is affecting them personally as an airline, much more than it is their competitors. And I guess it’s just a big coincidence that you have the lawsuit from the pilots going on, you have the date… It was October something that they had to get these mandatory shots by, and to your greater point, just like the supply chain issues that we’re seeing now across all different sectors and products and materials. This labor thing is going to continue to get worse because you’re only going to alienate more and more people.
Daniel Creech: So, you’ve seen headlines about everything from hospital workers in your home state, Frank. Upstate New York had to fire a lot of hospitals because of some people refusing to get the vaccine. There’s headlines out of Chicago and LA, where if they start mandating vaccines, you’re going to lose a lot of the police force, up to 10% sometimes. So, you have a deterioration there on that side, and it’s only going to affect delays and products and the economics. And that’s what we focus on here. We look through everything from an economical lens and that’s going to slow down earnings. And it’s also going to hurt margins, which happens to be a good topic, Frank. We’re in the harder earning season.
Frank Curzio: Yeah, we are on a harder earning season, but-
Daniel Creech: We’re kicking off.
Frank Curzio: This mandating the vaccine. Mandating it. I’ve always been careful, Daniel with you. Not careful, but sensitive because everyone’s so sensitive these days, everyone’s like a big baby when you offend them and you say something and it’s like the biggest deal in the world. Oh man. I lived in New York, if someone saying that you’ve fought them. And then a day later, you were hanging out with them again and everything was cool. Now it’s, “I’m offended forever.” And everybody’s a baby. I’m not going to baby this. Mandating the vaccine must be the most ridiculous thing I’ve ever seen since I’ve been alive. We are a free country. We have freedoms. You’re mandating that people take a vaccine, and I’m not anti-vax. I have the vaccine. I’m forced. I was forced to get the vaccine because of the conferences I’m going to go to. I’m forced.
Frank Curzio: I’m okay. I was able to look at the data and determine it, but I had COVID and even with Delta. Delta doesn’t impact people who have COVID as much as it does with when you have the vaccine. And when I see this, and some people are against this. Kyrie Irving’s against it. He doesn’t want to do it. They’re like, well, you ain’t playing basketball. Sorry. Goodbye. Are you kidding me? You’re forcing this and you’re forced… Absolutely forcing it because you’re taking away the freedoms that we’ve had since America’s been built. You can’t go here. You can’t go indoors. Pretty soon, you can’t get it on an airplane. Pretty soon, you’re not going to be able go in any of these buildings. You’re going to have to wear like a lanyard around with the fricking vaccine card. And to actually do this…
Frank Curzio: And it’s funny because what’s the argument for doing this, Daniel? What’s the argument. Well, if you don’t get vaccinated, you’re hurting other people. Which is complete, complete, complete bullshit. It’s a hundred percent false. If you talk to the scientist, they’re like, “Well, then Delta and other strains, they could work through your body quicker and…” I got news for you. They’re going to work through your body quicker even if you’ve got the vaccine, because it doesn’t matter if you have the vaccine or not. If you don’t have the vaccine and somebody does have the vaccine, you’re being told, “Hey, 95% efficacy, you’re fine.” That’s what we were told. Remember when we got the vaccine? Hey, why are you going to get the vaccine? Because everyone hates wearing masks. You don’t have to wear masks anymore. Okay. And plus, you won’t get COVID again. Right?
Frank Curzio: Okay. We look now, people who got the vaccine are getting COVID. Now, you’re mandating everybody get the vaccine. Now you say, now that you have the vaccine, but if you’re indoors in a place like New York, California, you still have to wear a mask. What is it? Because it keeps changing and changing and changing. People are sick of it. If you want to get the vaccine, you get it. If you don’t want to get the vaccine, don’t get it. But to mandate it means, there are people out there that are going to be like F you, I’m scared to put this on my body. I had COVID. I have antibodies. There’s not one doctor on the planet that could tell me how long those antibodies lasts. There’s not one because we don’t know yet. There’s no data. So, there’s a shot that if you had COVID you would never have to get the vaccine ever again.
Frank Curzio: There’s no data out there. That’s an interesting data point. So, there’s people that feel like, hey, I had COVID and I don’t want to get it. And what’s going to result, like you said, there’s nurses that are getting fired. Not quitting, some of them have to quit, but they’re getting fired. You’re seeing coaches, in the NFL, you seeing players now. What’s going to come down to, because right now the labor issues are crazy intense. What happens when we have doctors or nurses that aren’t going to show up to work? What happens when we don’t have policemen? Which again, liberals love that. Less police, this way you can go fricking nuts. Just defund everything. But I know it’s going to be the first people to call when the house is getting robbed.
Frank Curzio: Oh, can the police come? You know what I think is, they should make a record of everyone that’s in support of defunding the police. And if they ever get robbed, you automatically come up and say, sorry, we’re not going to come to the house and help you. I mean that, that should be… That would be great. That would be great fricking policy. But I am so sick of sugarcoating this, because if you want to get the vaccine, get it. There’s people that should get it. And I’m going to go on further here with this rant. If they mandate that kids have to get the vaccine…
Daniel Creech: Oh boy.
Frank Curzio: Biden should go away from murder. He should go away for murder. Because there’s 300 kids so far that die. And half of those, the CDC admits, are probably not from COVID-related or other serious injuries. There’s more kids that die from the flu, and you’re not mandating flu shots. You’re mandating this. I will guarantee more kids, if you take a three-year timeframe from when you mandate it, will die from getting the vaccine than dying from getting COVID. And that news won’t come out because getting the kids… We have a lot of statistics of it. We saw that in most schools not… Take away colleges, take away over 17, under 17, how many have you seen the virus spread throughout… You hear about a kid getting it. And then they put them in isolation or whatever it doesn’t… They carry it differently, that a lot of them are immune to it, their systems… A lot of them have COVID and don’t even know it, but to mandate… But they’re forcing a mandate for kids right now. Where do we live? What is this? What are we doing here?
Frank Curzio: For me, again, I sugarcoat, I try to be sensitive of it, there’s no sensitivity around this, but I’m bringing this up. This is a financial podcast. And we have one of the biggest concerns of labor issues. People can’t get other people to work. People are used to working at home. And now you’re mandating… You’re going to take a lot of people… Say, if it’s only 10%, you can’t afford… You can’t hire anyone now. If you take 10% of the people out of the workforce, which you’re seeing those numbers go down, more and more people out of the workforce. What’s that going to say for companies, it means that they have to raise prices in order to make ends meet even further, which is going to cost more and more and more inflation. That’s not a pretty scenario. And I think that this has to be an issue more and more people talk about if we’re mandating… If we’re going to mandate that everyone has to get the vaccine, and they’re mandating it because if you don’t, you can’t enjoy the freedoms, which so many people died for to give us for this country anymore. And that’s what they’re taking away from you. It’s crazy.
Daniel Creech: Yeah. It’s beyond crazy. Two quick points on that. Kyrie Irving, it was at $400,000 a game? Did I see it and read that correctly, Frank? It’s about 400 grand a game he makes that he’d have to-
Frank Curzio: At least. His contract is… I’ll look it up. He’s one of the biggest contracts. And he should have one of the biggest contracts, because one of the best players… He’s one of the best players in the league. But think about that guy to give up that much money-
Daniel Creech: Is he continuing to hold out? I’m not up to date on that.
Frank Curzio: As of right now. Yes.
Daniel Creech: Okay.
Frank Curzio: And his team’s like, oh, well, we’ve got to practice. We got to move on without him. Because they’re actually favored with Kyrie Irving. And if those guys didn’t get hurt, I think it was Kyrie got hurt, Durant was hurt early in the season and Hard was playing on one leg, but they would’ve won a championship pretty easily over Milwaukee, but-
Daniel Creech: They’re favored to win at all-
Frank Curzio: They’re favorite to win at all. And they do have the best team. They’re great. And now that changes things. So, they’re like, oh, we’re going to have to move… But this is a guy that believes in it so much to lose that much money per game and get punished for it. And he’s not telling people, hey, you’re an idiot for getting vaccinated. He’s not saying, oh, you’re an idiot…
Frank Curzio: There’s people that need to get vaccinated. Of course, we know if you’re over 65 and you have underlying conditions… If you have underlying condition, you could be younger than that, you should get vaccinated, of course. But for us to tell people that don’t want to get vaccinated that had COVID already… Where not one doctor, not one can tell us how long those antibodies work. And if you think I’m wrong, just Google it. Gottlieb and Fauci are the two that the whole entire world listens to and even they say, “We’re not…” They both came on, “We’re not too sure how long they last. We see that count going down a little bit. We’re not too sure.” It can last nine months. It could last two… Who knows? But the fact that you don’t know that and you’re mandating it.
Frank Curzio: Again, this isn’t about anti-vax. This isn’t about vaccines. This isn’t about Democrats, about Republicans, but the separation that our politics and the people in politics are… Just what we’re doing right now to make sure that there’s conflict, that people hate each other. That I have to go on this podcast and get this pissed off about something like this, where it should be up to you if you want to get or not. And if you don’t and you get COVID and you die, that’s you. That’s up to you. That’s your fault. That’s your responsibility. But it’s a crazy world out there and we have to bring it up on this podcast, Daniel. Because it is going to impact companies going forward. You’re seeing it right now. You’re seeing even… And even going further with the massive profits. I don’t know if you had anything else to say to this because I’ve been shooting off my mouth all the time.
Daniel Creech: Yeah, I got one more point here. Well, I like this. This is funny, but we are capitalist here. And so I got to ask you an honest question. So, you’re vaccinated. I’m not. So, we’re a good team here. We’re balancing out. Now when they make it to where I can’t buy groceries and such without the vaccine, how much are you going to charge me to deliver groceries or do my orders? Because we’re all capitalists here. So, I need it on record. Is it 10%? Think of the Uber, Uber had it best. Uber Delivery, Uber Eats, they’re ahead of the game. They’re just waiting on the vaccine thing.
Frank Curzio: No, they do though, since every place else has mandated, get the vaccine. If you don’t want it, I’m going to cut your salary at 25%.
Daniel Creech: Everybody’s got a price.
Frank Curzio: Where are you going to go, Daniel? You can work anywhere. There’s no place you could work anymore.
Daniel Creech: I’m telling you, it’s fun to grow up on a podcast because I don’t want to go back to being dead broke, but I know I can survive.
Frank Curzio: And then, you look at their situation where they’re striking. So, the striking right now, what is it? The UAW or whatever, they want more because you seeing these companies report massive, massive, massive profits. And it’s so funny because as I’m doing this guys and I should… We’ll have lots of cameras in here anyway. I keep CBC on, in cases any headlines going on, we’re doing this around 10 o’clock and you guys would probably get a couple hours from now. The major banks reported, almost all of them reported now. And Daniel, we have Morgan Stanley, we had Citi, Wells Fargo, and I’m going to quote these numbers for you. Because I just saw on the bottom, I have it on mute with CNBC, I’m watching and the CEO of Morgan Stanley came on and I actually wrote it down. Because he said, he’s seeing fruits of their long-term strategy right now. That’s what he said.
Daniel Creech: What? Say that again.
Frank Curzio: “We’re seeing the fruits of our long-term strategy.” All these measures they put in place in the past are finally coming to fruition right now. That’s why they’re seeing profits. No, you idiot. You idiot. You moron. You’re seeing profits because we have a beautiful government that injected 11 and a half trillion dollars into the freaking system. You are not the only one because of your long-term strategies. Because when I look at Morgan Stanley, record investment banking and asset management, their sales 14 and a half billion, Citi reported a 50% surge and profit on 17 billion in sales and Wells Fargo’s profit jumped 60% to five billion on 18 billion in sales. So, it’s not you, it’s not your long-term strategies. That’s every bank reporting this numbers. Because we just flooded the money with system.
Frank Curzio: There’s a reason why all your credit losses are going down because we handed free money to people and a lot of them are using it too… Not a lot, but you’re seeing debt get paid down, their asset prices are going higher and higher, but you’re looking at just those three guys that report it. So, you got Morgan Stanley, Citi, Wells Fargo, 50 billion in sales between the three of them in one freaking quarter. Great long-term strategies. All you guys at the same time, man. That’s amazing. All of them just at the same time said, hey, these are long-term strategies. And right after the government injects all his money, all his freaking money. Eleven and a half trillion, they’re all going to work out perfectly. Yeah, right. Anyway. Sorry, I’m in a ranty mood today.
Daniel Creech: I like that. That’s okay. The only thing I’ll say about banks is, I believe it’s tomorrow the mighty… Is it tomorrow or Friday that Goldman Sachs reports. That’s the only bank we care about because it’s NCRA Portfolio and it’s doing well.
Frank Curzio: Keep talking about the Goldman Sachs because I want to bring up these numbers here.
Daniel Creech: The bigger point there, if I can get something across here is that, don’t just get upset and rant like us to the point of inaction, take advantage of it. If you believe that or want to take advantage of that, then buy Goldman Sachs like we did or by some of these banks and make money off of it. It doesn’t matter that… You don’t have to agree with it, which is our bigger point. We do need to talk about… You can come back to the banks whenever you find what you’re looking for, Frank, but the ESG movement, environmental social governments’ thing that… Frank’s been pounding the table on that for several months now and maybe even longer. But there was a bank of America report out today, Frank and I didn’t get to read through it all. We were busy this morning. That’s a bad excuse for being unprepared. But basically I think they said over 30 years, they’re estimating a 150 trillion, with a T as in T-Rex. 150 trillion over 30 years to go into this ESG climate change, race to zero, race to neutral. There’s all kinds of great headlines out there.
Frank Curzio: Now, where was this 150 trillion?
Daniel Creech: I think it’s Bank Of America reported it-
Frank Curzio: What’s the timeframe?
Daniel Creech: For 30 years over the climate change and all that kind of stuff. And of course, very little of that has anything to do with China, the biggest polluter in the world. But again, you can’t use common sense or point of facts when you’re looking at that. We say all that to say this, start investing in companies that are going to benefit from this. And here’s a little plug, Frank because the dollar stock club pick this week comes from me, yours truly, since Frank couldn’t find a better guest and I’ve been focused on how you navigate tough environments. So, we got rising inflation through cost and everything materials, labor, and you have supply chain issues. Been digging the last couple of weeks. There’s a company I’ve been following for a long time and their stock has been sold off.
Daniel Creech: And I just think it’s a good risk reward opportunity here because they own the majority of their manufacturing and supply chain process, which means they’re not going to have the bottleneck issues that you’re seeing across all kinds of sectors from furniture to iPhones, to automobiles and everything else. And they have a strong brand name and we’ll lay it out there and we’ll see if… We’ll have to see if I’m right as time unfolds, but that’s the thing you want to focus on. And the ESG thing I was hinting at, they’re a big player in that. And they got a nice presentation on their website about how they’re doing good for the environment. They have been. And I’m not making fun of that. I’m not anti-environment. I’m just anti-environment when no matter what the question is, the answer is always higher taxes and more power for a government. That’s when you know they have no goodness in their heart. It’s not about making anything better. It’s simply about creating more power and money on their end.
Frank Curzio: So, I’m going to get that-
Daniel Creech: Give you enough time?
Frank Curzio: Yeah, no, it’s got to get to… Yeah, you gave me perfect time to figure everything out. That’s why I didn’t even listen to a word you said. No, I’m not kidding. Daniel’s like laughing right now. So, I just brought… This is one of the sites we used, briefing.com. We don’t get paid by them. It’s just a really good site. But you put in GE and they show when they’re reporting, which is right here and again, you can go see this on YouTube. Go over there for those of you who are just listening. But it shows that the earnings call is… The next earnings release actually it says, confirmed for the 26. So, you said they’re reporting tomorrow?
Daniel Creech: Goldman Sachs?
Frank Curzio: Yeah.
Daniel Creech: It’s tomorrow, Friday, isn’t it?
Frank Curzio: It says right here, unless they didn’t update it, but usually this stuff is accurate, but even if it isn’t… But the point I was going to make is the estimates… Because that says the estimates are 45 cents for earnings per share. And revenue is coming in at close to 20 billion, which I think would be higher than all three companies I mentioned. Between, I think, 17 and 14 billion in sales. Those numbers are going to get blown out completely. Blown out of the water. And the stock might pull back. I don’t know, but just to see the numbers that these guys are all reporting… Listen, more volatility, more money into the system. It’s just everything that factors in it, you’re looking at interest rates are… They’re going up a little bit. So, they’ve always dealt with that and found different ways to make money because if your net is shrinking, which lower rates, that’s going to happen. They found ways to make money.
Frank Curzio: Now, we have rates going a little bit higher and then you have all this money flooding directly into the system. It didn’t flood into the banks where the banks had to lend this out, which their lending policies, by the way, are crazy. I know because I’m trying to get a construction loan right now. Holy cow. It doesn’t matter. It doesn’t matter. Daniel, if I have $10 million in assets and I wanted to buy a $3 million house, it doesn’t matter. It all matters about income, how long you’ve been working at different places. And look, we’re a public traded company. So, I keep my income at a minimum. I do own stock or whatever, but just the fact that what they look at doesn’t make sense. It’s a whole algorithm, and if it just checks up and it comes up, oh, okay, it’s a yes or no.
Frank Curzio: And the people are doing this, it doesn’t matter. It’s no. This is the way it is. They don’t look at common sense. They don’t look at anything else, but just to see how great they’re doing, what the restrictions they have still from Dodd-Frank, which has a lot of them… Not a lot of them, most hasn’t been eased, some of it a little bit is remarkable and those earnings are going to continue. Now, you were talking about, I want to get back on this because CO2, and I actually wrote it down, $150 trillion in 30 years. You got to put that in perspective guys. I think it costs, what is it? A hundred billion, maybe up to 125 billion for the cancer treatment market. You’re looking at I think… Man, how much in sales? I don’t even think we’re at $30 million… I don’t know. $30 billion in sales for marijuana right now. That’s the other day. But you’re looking at all the trends combined, all the major trends combined.
Frank Curzio: It’s not even close to what you’re talking about for this. And when you do look at the data, you have everyone scattered and crazy. Everyone’s saving the planet. Even right now, if you’re looking at CO2 emissions, we’re responsible for 18% of that in the US. 18%. So, no matter how great we do, Asia is at 53%, if Asia does nothing, I don’t know, Daniel, let me ask you. Is a planet going to be saved? So, if we lower our carbon emissions to basically nothing and is China going to do that? Absolutely not. They’re not going to do it. They’re going to try to do for Beijing, try to lower it as they can, which is great to have power outages. It’s not there, but just… 53% of global emissions comes from China. So, we need help here, we need other countries to help out. But how do you get China to help out when they can’t even let anyone in the country to study where the virus was originated in. Now, I know you can’t go to war. Well, we want to help you. And so, we’re going to… Nope. We’re good. We’re good.
Daniel Creech: Yeah. Well, you got to understand that this is why we want to help investors navigate this kind of stuff, because this isn’t about results. It’s all about feelings. That’s what you’re talking about here. It’s the feel good about saving this or that, and the environment, or it’s better for children, or it’s safer for everybody and your neighbors and all that kind of stuff. That’s just the way it is, and how to profit from that is again, to look at where that money is going to flow and just position yourself accordingly and set yourself apart. That way, you can at least be free and have economic freedom for you and your family.
Frank Curzio: Now, look-
Daniel Creech: That’s our calling, Frank. That’s what we’re trying to do here.
Frank Curzio: I got to tell you something, it’s something you said before. You’re like, hey, instead of ranting on it, you want to do something about it. It feels good just to rant on it sometimes.
Daniel Creech: Oh yeah.
Frank Curzio: You guys have to get a podcast. When there’s some bothering you, you get out, you just feel so much better the rest of the day. I don’t just rant like crazy. But today, I’m just in a pissed off mood for some reason. But I mean, holy cow, just the mandating of vaccines right now. Again, every decision has consequences. Every single decision you make. This is going to have consequences… And I don’t think people are talking about it enough. They talk about labor issues, but now you’re seeing it. With the massive profits coming out, you’re going to… If you’re unionized, hey, demand, whatever you want, you can’t hire anybody else.
Frank Curzio: And it’s not just hiring people. Imagine if you’re an oil industry, the industry that you’re in. Everyone listen to this, especially if you own your own business, try hiring great talent right now. You know how much you have to pay for that. You’re going to pay an absolute fortune for that. And now that pool is getting limited and limited and limited. So, you can’t just pull a guy that says, hey, I want a job in an oil field. Okay. Here, go work on a rig. That thing goes wrong. Believe me. I don’t know if you ever saw the drilling sites and everything. They have wires, they go all the way out this way if anything is about to blow, anything happens… And also, they can just get off and slide down these things but also all their cars, if you notice they’re all backed in.
Frank Curzio: So, if anything happens, they can get in and get out there fast. And I’m like, this is crazy. No, we’ve seen it happen. And this was back in… When I was going to the Permian base, with my buddy Cactus, who’s been doing this for 30, 35 years. He’s like, yeah. He’s like, look, you carry a gun. That’s where you shoot all the rattlesnakes and stuff like that. And then you’re back… Because he’s backing in, I’m like, “Why are you backing in?” And he’s like, “Look, every single car is backed in.” I’m like, you really expect this thing… I don’t know how it is now. Maybe it’s like that, but this was 2011, 2012. But you got to get good talent.
Frank Curzio: It’s hard to get. You can’t just hire anyone. Now, you have people in the workforce who really truly believe… Me, listen, I got it. I’m okay. All right. I took the plunge. I got, I didn’t want to get it. I got it. There’s people out there that aren’t going to get it. There’s Kyrie Irving’s out there saying, listen, my life’s more important. I feel like I’m threatening my life with this. And that’s fine. Even though statistics show support, that’s not true. Some people feel that way. And now, you’re going to see a bunch of people in very important positions come out of the marketplace. And maybe you’ve seen that with Southwest, maybe you’re seeing that across the board with and healthcare industry what we’re hearing about. A lot of doctors want to hear from you just… This is going to have serious consequences. I feel like that story’s not really being told right now, which is going to impact a lot of companies and could result in even further inflation, which we’re hoping… All hoping that’s going to be transitory.
Daniel Creech: Yeah. Well, it’s not going to be transitory, but we want to just be able to… The new normal, which would be manageable. And it will be, like I said, it’s not time to panic. We don’t want to go off the deep end with our fun rants and gestures, but it is something you have to pay attention to. And it’s going to affect everything from your investing to your individual decisions. And that’s what the economy is. The economy is just a bunch of people making random choices to better themselves and have that ripple effect. These things are going to hinder a lot of that. So, you need to navigate that accordingly. You focus on strong brand names. Again, I already talked about the manufacturing and supply chain controls and then who… The best management teams, during environments where a rising tide lifts all boats, everything’s fine.
Daniel Creech: What’s Buffett saying about you find out who’s swimming naked when the tide goes out or something like that. Now, we’re getting into that arena and there’s still going to be plenty of easing and plenty of stuff from the Fed. So, don’t worry about that. But as you have all these combinations continue to get worse. Supply chains are going to continue to be stressed before they get better. Labor, shortages, mandates, et cetera, et cetera. You’re going to see the best management and operating teams rise to the top. And that’s what you want to be invested in. And the sooner, the better for that. And that’s what we’re going to try to point out for you.
Frank Curzio: No, it definitely makes sense. So real quick here, we’ve got a minute left. What are you looking for? A new season just started. Less than 40 companies report S&P 500. What are you looking to see? You could trade. You can go crazy. It’s a difficult trading environment, especially going into this earning season, buying anything ahead of time because even companies that are… That report good numbers like Delta and said, hey, we could see a little bit of headwind. So, whichever one the industry is going to see a headwind, it’s not specific to Delta. With the stock, took a 5% pullback, which I think is incredible buying opportunity. But it’s hard to buy into earning season when some of these companies are beating by a mile. But yet, pulling back because they’ve run out, especially banks and energy.
Frank Curzio: What are you looking forward to seeing? Even for me, I could start here where I want to see the infrastructure companies go… Even the GEs that the… Just across the board. I remember Ford… Just all these companies have a listen to, because they cover so many geographies that… And so many areas where you can really see demand picking up, construction coming up. A lot of these guys have exposure to China, which you’ll see how serious the evergreen situation is through them. When it comes to construction, even like caterpillar. And I’m also looking at travel related accompanies because I feel like there’s a difference there. Not everyone is seeing the huge benefits where, Caesars came out and said, we just had record EBITDA. And I said that probably three times in the past two weeks, I find that amazing considering it’s Vegas, international travel, still restricted.
Frank Curzio: Wearing masks. What happens when all that stuff opens up? It tells me that they have incredible pricing power. But not all of them are created equal. I want to hear how demands getting… Especially in the last month as Delta, you’re seeing it subside. You’re seeing ICU percentage of ICU… Well, every state’s below 90%. In almost every single state you’re seeing that downtrend now, instead of seeing an uptrend of more cases and more people getting infected, I want to hear what they’re saying, because we don’t get another Delta or anything. And they’re like, hey, last month we killed it. We kicked ass. It’s going to be a really good opportunity to buy some of these names. That have been a little beaten up over the past couple of months as Delta surfaced. So, that’s earning season. That’s how I’m playing it. What about you, Daniel?
Daniel Creech: The two sectors, energy and retail, I want to see about guidance going forward. The coronavirus was the best excuse for a management team you could ask for in the sense of you don’t have to guide for upcoming quarters or upcoming years. And so I want to see who is going to reverse that trend and go out there and say, hey, we project or we’re guiding for X, Y, Z going forward. Obviously, it’ll be great to go through the conference call transcripts and listen about inflation and cost because in tandem with that, you want to see who’s going to expect or announced to raise prices.
Daniel Creech: That way we can get an idea who has pricing power. Again, you’re going to just… This is low hanging fruit. I’m not saying anything breakthrough here. I don’t mean to be boring, but that’s going to be strongest brands and strongest products. So, guidance and what’s the energy companies looking forward to, are they going to maintain discipline and focus on shareholders, dividends, buybacks, et cetera, and manage that because they have the easiest runway for high oil prices they’ve had in years and years. And so, that’s going to be really good. That’s what-
Frank Curzio: I actually to hear that too, because they do have to keep that… It’s like you’re taking operations offline, which you’re going to be forced to, but yet, higher price is going to adjust for that. Just like you saw like an audit industry where fewer cars, but hey, you’re not getting any incentives, you’re paying sticker, even a post-it maybe, which is crazy in terms of the addons and everything. But that’s something that I’m interested in seeing as well.
Daniel Creech: And last thing, insider buying and buybacks. Because as we get through this environment, you always say you only buy for one reason typically. So, insider’s buying stock would be great. And then, companies that take advantage of getting punished and start using their buybacks when they should and be good allocators of capital, that’ll stand out very well.
Frank Curzio: I did get to see a lot of buyback announcements here. Announced during the quarter, but the inside of buying, there’s usually a period where it’s a quiet period and you can’t do anything within that quiet period. I like to see companies that get hit on news that could be temporary. And then you’ll see insiders… When I say insiders, and I’m talking about 10% owners who own massive positions, I’m talking about the CEO, CFO, when you see them take a million dollar purchase, billion half dollar purchase and they already own stock. It’s really a good indication. Something I like to see as well. So, Daniel, really great stuff. Thanks for coming on.
Daniel Creech: Absolutely. Cheers.
Frank Curzio: All right. I don’t know. We’ll get some more interviews for you, but I really liked the format. Whatever happens, happens. But again, I don’t want to put… Seriously, I don’t want to put somebody on where we’re just going to be talking about… And I have a very big network, but I like getting someone on that’s relevant and that could talk about what’s going on right now. And even with Bitcoin and stuff like that and the context we have in that industry, you’re going to hear a lot more. I told you guys, I promised you guys are going to come out with a special opportunity newsletter, only because we have five positions in there that could be bought right now. I’m going to do a video, explaining the massive potential, why we’re in a great position for this. Because I’ve gotten so many questions from people saying, hey, you don’t want to subscribe. How can I subscribe? And I said, just wait. Otherwise, you’re going to pay full price. I don’t want you to pay full price.
Frank Curzio: So, we’re going to discount that product incredibly, but I want you to watch the presentation because even if you’re not going to say, hey, you know what? That results in me buying a newsletter or whatever. And again, my job is to make you money. If I don’t, you cancel, but I’m going to provide a great price, but I’m going to just show you why right now we’re in an unbelievable stage in crypto where it’s like the internet where we saw at the very early stages, everybody getting a website and stuff like that. And you’ll find… Many names, you had Google come out and Google search engine and stuff. That was the nineties. That was mid- to late 1990s. And now look where we are now, where we’re still being disruptive, innovative. This in crypto, it’s going to be the most innovative market going forward.
Frank Curzio: And it’s not just today. It’s decades to come and is three segments right now. They’re exploding. It’s like the new generation. You’re seeing better companies come out and ICO’s, you’re going to see security tokens, absolutely take off. And there’s just companies that can benefit tremendously. And this is the only place I know of guys who have retail investors, where you could get 20X, 30X, 40X returns. I never ever say those numbers ever because it’s most of the time bullshit. I’m going to show you how that happens and how often it happens in crypto. More than you believe. I’m not going to cherry pick one name here. You’re going to see tons of names that you see these gains and now the next generation of players are coming out. I really want you guys to learn this, especially since we’re at the heart of this, you guys know about a CEO token.
Frank Curzio: I base my company on this trend and security tokens and to see where it’s going right now, and the access we’re going to have to this industry is incredible. It’s going to give you a great opportunity to get a look at amazing companies at the ground floor, not the Robinhood at $40 billion evaluations, not the snowflakes at these billion dollar evaluations or Palantir’s when they come out, when all the insiders are looking to sell. I’m talking about companies hundred… $50 million market cap, a hundred million dollar market cap that go to 10, 20, 30 billion. That’s how you make life-changing returns. There’s not a person on this podcast or person that invests that doesn’t think like that. That wants to make the most amount of money in the shortest amount of time. This place in crypto, when it comes to crypto, and I’ve been doing this 27 years, it’s the only place I know of where you could consistently do this, where you see those returns. Will it happen in the future?
Frank Curzio: I don’t know. Maybe it won’t, I can’t guarantee anything in the future as you guys know, but what I’ve seen in that industry take place over the past two years and the enormous, enormous gains. Their gains are very difficult to see in a stock market because they come out such high valuations, have the specs on IPOs. It’s a lot different there, you can get in the ground floor and especially since we’re in security tokens, know everything about NFTs and everything about DeFi, getting into the right names at the right time and research in so many of these things. It’s really provided some amazing, amazing returns for our shareholders. Not just shareholders, but for our Crypto Intelligence subscribers. And I want to bring that to everybody, especially now at times, absolutely perfect. Because you’re seeing Bitcoin start to rise again and is going to hit new highs. I really believe that.
Frank Curzio: So expect to see that in a couple of days, I’m working on that. Put a nice presentation. If you want it, that’s fine. If not, no worries, but don’t subscribe now. You can look at that and going to provide just for podcast listeners, guys, just so people of Curzio Research. I’m not sending this promotion out to anywhere because of the returns we have in Crypto Intelligence, I could be selling anything for 10 grand and probably getting it, I think an outside list, but I want to get in right now because there’s a lot of great, great, great companies, four or five of them right now, you could buy right now. It’s not just one idea. It’s four or five of them in these trends. And I’m very excited about, and I want to see you guys make money. So Daniel, thanks again so much for coming on. Sorry to go on and on about that, but you know how excited I am about crypto. That’s it for me. Really appreciate all the support and guys great weekend. See you next week. Take care.
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