Wall Street Unplugged
Episode: 1138May 8, 2024

This popular uranium stock will go to $0

Inside this episode:
  • A deep dive into the uranium bull market [3:33]
  • How AI is driving uranium demand [6:26]
  • This popular uranium stock is going to $0 [12:24]
  • Why you should be leery of overseas mines [23:23]
  • Avoid this AI stock; buy this one instead [28:15]
  • A key question for DIS investors [30:02]
  • Watch the replay of Crypto 2024: After the Halving [39:55]
Transcript

Wall Street Unplugged | 1138

This popular uranium stock will go to $0

This transcript was automatically generated.

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 May 8th.

I’m Frank Curzio. This is the Wall Street Unplugged podcast where I break down the headlines and tell you what’s really moving these markets.

I have to start out with this.

How about those rangers in New York? Knicks Rangers won double overtime last night.

What a game came back in third period.

Knicks up one.

Nothing on the Pacers.

Played game two tonight.

Jalen Brunson is amazing and what a great story.

I dunno if you remember, we was traded to the Knicks couple years ago.

I mean, the New York media s**t on this poor guy.

It’s a terrible trade.

Why’d you get him? He’s not gonna be the answer.

I don’t know if he’s the answer to a championship, but man, having those three guys from Villanova, those guards just, it’s electric.

It’s hard to hate this team, but it’s nice to see the garden rocking again.

It’s been such a long time since New York had this kind of excitement in the playoffs.

And we’re talking about a major city here that’s just been horrible with their teams for such a long time.

Rangers have been okay the past couple years.

Nick’s made the playoffs last year, but still it’s been this massive drought.

But it’s really nice to see, and you could see from the fans, right? If you’re watching these games, it’s seriously, it’s so electric.

It’s so electric, just so excited.

Really good stuff, really good teams, and hopefully they keep doing what they’re doing and go further and further in the playoffs.

Nice job.

So today I wanna start with probably one of the most popular topics in terms of what my audience likes, and that’s uranium.

I know you guys love when I talk uranium, but have Amir Nani on which I have every few months or so, the most downloads for Wall Street Unplugged, which by the way, one person reached out on Twitter and said, Hey, Frank, and, and tag the mirror on my Twitter at Frank Curzio and set up 500% since you had a mirror on your podcast a few years ago.

And that’s what this is about.

That’s why I do this.

So the Wednesday podcast we used have a lot more interviews.

We’re gonna go back to more interviews.

We’re gonna start interviews.

High profile guests, people that can help you.

Not people are just gonna b******t and talk their book or whatever.

I mean, you know, I wanna have people on just like when we, when we have newsletter offers and, and do it.

It’s, it’s gotta be the timing.

It’s gotta be the timing.

I mean, if I feel the opportunity for you guys or I see someone that, that has something that’s really exciting to say at the opportune time, I’m gonna have them on.

I’m gonna interview, gonna see more interviews going forward for Wall Street Unplugged.

But whenever I have a mirror on, it’s awesome.

Somebody downloads and everyone’s talking about it.

Even last year, I had ’em on a couple months ago.

I should get an update since, you know, UEC is through the roof right now.

But I had ’em on a year ago, and this is when uranium was like 40.

And he was like, it’s probably gonna go a hundred.

I think it might have been like February or March.

I interviewed him of last year.

And man, it, it just surged.

And it was great because the stock did fantastic.

He’s awesome.

And look, uranium is an area I covered for a long time.

I visited sites that pictured me holding yellow cake at, at one of the facilities in Texas when I went with, Amir for most of the publicly traded companies, which is not that many, right? There used to be a lot more pref.

Fukushima used to be a ton more in the seventies.

I mean, all oil companies or I reigning companies back then.

There’s a ton of uranium here in the US a ton.

They just, with all the laws and then oil companies like f that we’re just gonna go to oil, natural gas.

We started shipping uranium from Russia like crazy importing it.

And, and, and now things are changing.

You’re seeing government approval.

The government supports it, the left supports it.

Oh my God, they like anything.

Holy s**t.

I thought they hate everybody and everything.

But now they’re realizing, holy cow, you know, maybe uranium’s not that bad.

We want clean energy.

We wanna support climate change.

Well, I mean, uranium is the best source, right? Nuclear, come on.

Safest, cheapest base load power.

You have power all the time.

Not when the sun comes out.

Not when the wind comes out, not when the water runs.

Now uranium prices starting to surge again.

They, they surge over a hundred dollars a pound and then pull back in the eighties, which is natural for any trend.

And you know, stocks got hit a little bit.

When I say got hit there, they were up probably about a hundred, 200% from their lows.

And they got hit maybe 20, 25, 30%.

Some of these names.

It wasn’t that big of a hit.

But that’s what happens with all growth trends, right? We saw with Nvidia several times, Nvidia pulled back 900 to 700.

Now it’s, you know, going back up again.

See that a lot with big growth trends.

It’s not this straight up thing like, oh my god, things are great.

No, it’s kinda like a washout doubting.

And then boom, this trend comes in and you get new buyers.

’cause now you’re seeing uranium start to move higher again.

Think it’s in the mid nineties and it’s going to surpass those previous highs.

I forget where it was pre Fukushima 1 21, wherever it was, I forget.

But we are gonna surge past the recent highs.

’cause it’s not based on momentum.

This isn’t a momentum trade.

Like, oh, we gotta get in, we’re gonna miss it.

This is fundamentals.

It’s like gold.

This isn’t like momentum.

This isn’t about, oh my god, a safe haven.

And, and this is fundamentals, but gold as well.

I mean, central banks are buying like crazy and there’s not a lot of gold in the market.

They haven’t produced a lot of gold ’cause prices were low and inflation went higher.

I mean, even as prices went higher, inflation surge, it’s still, the margins weren’t great for, for these large companies to go and acquire junior miners or whatever.

But these aren’t momentum trades that you’re seeing in, in raw materials or you’re seeing in, you know, copper.

This is fundamentally driven in uranium especially.

And we knew this story for a long time.

It was just a matter of the adoption.

When was it gonna happen? We’re gonna see an explosion, electricity demand.

But AI is what really pushed the uranium story.

We all knew that, okay, you gotta go to uranium electricity demands ’cause of EVs and stuff like that.

And EVs are still gonna drive, right? I mean, it’s gonna drive growth.

It’s just not gonna be as big as everybody wants to throw up.

But they’re not going away.

They’re not going away.

Especially when Tesla produces a low price.

Ev China like crazy.

Just electricity demand and, and electricity.

There’s an explosion.

Electricity demand.

And when I say an explosion, I’m not talking, this is gonna happen 10 years from now or by 2050 and zero car.

You know, we’re not talking about b******t dates here.

And if you look at a forecast for EVs, you look at so many forecasts that go out past five years are insane and you, you see them always dial ’em back tremendously, right? That’s what consulting firms do.

The craz, the forecasts have, the more people are gonna buy their reports.

So let’s get stupid with our forecasts.

Doesn’t matter if we’re wrong, nobody’s gonna care.

Just let’s put it out there.

Sell, sell, sell, right? It’s all about revenue.

So we’re not talking about 10 years from now, 2050 we’re talking about right now.

It’s gonna be from data centers.

You are looking at AI the next phase of this incredible growth trend.

I mean, we’re in the early stages here.

We’re in the first inning, guys, we’re in the first inning.

You have no idea what’s going on.

AI, AI is so unbelievable.

People think, oh, it’s Nvidia, it’s not Nvidia.

I mean wait until Apple in June, wait till that event that they had the developer’s conference.

I mean that’s when you’re gonna see it go crazy.

It’s gonna be on steroids ’cause they’re gonna announce so many things within AI.

And everyone has an iPhone, Samsung or Samsung, right? Most people have iPhones.

But once iPhone, I mean it, it’s the one device you have on you every second of every day.

Even when you go to bed, it’s three feet away from you.

But everything that’s on the iPhone is what? Tens of billions of pictures.

Videos.

You have a professional camera on there already.

Now you’re gonna be able to take a picture and then just tell your phone serial whatever and just say, Hey, you know what, change the background.

You don’t have to go into cropping.

You don’t have to go into all this stuff and be a professional editor.

You could just tell it what to do and how it’s gonna do it for you.

Change the background.

Put a lightning bolt in the background.

Have it raining a little bit, lighten this up, take this, put it there.

Do that.

I mean you could do that right now, but you, you can’t really do it on an iPhone.

Now you, you’re taking this and you wanna talk about scale.

I mean that we’re so early in this trend right now.

So when you look at electricity and the ba, we’re gonna see, we’re gonna require massive and massive amounts of electricity.

As this gets bigger and bigger and bigger, we’re going to see likely, and this is probably conservative, a 30% rise in demand in just the next five years.

I know you’re thinking 30%.

I think you’re gonna say 10000%.

and you say, well 30% growth, it’s not a big deal.

These companies grow a lot of their divisions by 30%.

When you say 30% growth in electricity, It’s enormous.

The average growth rate going back to the early eighties is around 1.5%.

That’s how much electricity grows.

It’s gonna grow four x to five x.

That’s a monumental change, a change that most electricity companies are not prepared for.

They don’t have the infrastructure in place, they don’t have the inventory in place, which they lock in for a couple years.

Usually natural gas and coal.

Now they’re starting finally to lock in longer term contract uranium companies.

And what are you seeing? Uranium prices go through the roof and it’s happening at a time where there’s very little supply of uranium, which is crazy.

And I won’t get into the fundamentals and get into the weeds, but you guys could read the story.

It’s going on Russia and cameo and just supply coming off the market while the demand is soaring.

Simple economics.

But these trends are not changing anytime soon.

The prices are moving higher again and they’re gonna hit new highs in a months, not just a months, the years ahead.

So how do you play your rainium? How do you make money? You could buy, you know, at et TF that focuses on the spot price, which I think is always good.

But a lot of people think, okay, let me just buy the juniors.

Holy s**t gonna make a lot of money not so fast.

That’s when it pays a listen to people sometimes, because no one’s really gonna tell you this.

You’re not allowed to say this in the mining industry.

You’re not allowed to say when a company’s a real piece of s**t and they’re screwing you over, you’re not allowed to say that They don’t like that at all.

They hate that.

But unlike other industries, this happens at the top.

You don’t see s****y people with s****y company.

You see that right? In Junior Miners.

You see that in biotech.

You see that in crypto.

Younger people just trying to to to, you know, steal money from individual investors and create s**t.

No, no, no.

You see this from the top, the b******t.

That’s what’s different about the mining industry.

’cause you have to be very, very careful.

’cause the structures of these companies are f*****g horrible.

They’re horrible.

And you need to be aware of this as an individual investor.

’cause most, again, it, it, it’s being a doctor.

I’m not gonna look at certain things that you’re gonna look at certain things all the time and say this is how you should, this is what you should do for yourself and you should eat like this.

Whatever.

You’re in the industry.

I’m in the industry.

This is sometimes hard to figure out because you’re not a professional at it.

This is something that I’m professional at.

You’re professional at something else that you listen to this or your job or whatever.

And if I have questions I’m gonna ask you, you are gonna be able to tell me things that I didn’t really know about.

Maybe my HVAC system or how to maintain it better or whatever.

You know, I don’t know that stuff.

I know what a HVAC system is just like, you know how to buy a stock.

But when it comes to the structures of these companies, you have to pay attention because this is an absolute joke and they’re structured to steal from you.

’cause most people say your ram’s going higher.

I’m just buying all these companies.

I’m gonna buy Denison.

I’m gonna buy UEC, I’m gonna buy, GovX eu, you know, go down the line and came go and a bigger play.

I’m gonna buy all these stocks.

You’re gonna do well.

Well you gotta be careful with the juniors, especially with a company called GovX.

’cause GovX is a piece of garbage and it’s run by one of the biggest names, right? Robert Fleet, which is his son, runs his company in, in, in the war, right? This guy’s incredibly rich, probably one of the top if not the top person in the whole industry.

Now they’ve been promoting this stock pretty much for 10 years.

So you should take on the risk of, of Africa ’cause this, they have assets in Africa that they’re gonna develop a high grade uranium.

This is gonna be great.

We’ve been told that we’re gonna develop this.

I mean basically, I I look back at 2017 and they said they’d be in production by 2020.

We’re in 2024.

They’re not even freaking close, right? And they’re not, they’re not.

They’ll never develop these things Now for a fact they’re not gonna develop.

But yeah, Pramod is telling you, you gotta buy this stock and, and, and take on the risk of Africa and unexpected military coups to when I could buy UEC or Encore who are gonna produce uranium in the us.

I mean if you look and you see GovX, I mean just look at what the stock’s done.

I mean that bullish case of, hey Africa, mines is gonna get developed, it’s gonna be great.

It’s gonna be great.

You don’t need that with uranium prices up so much And uranium price of five x in 2017 while the stock was trading at the same price.

And in January I tore this stock apart.

I put it on Twitter at Frank Curzio and I said, it’s a piece of garbage.

Avoid it.

And I did the analysis on it and I got a lot of s**t for it.

Which usually means I’m right when people are fighting about you don’t know what you’re talking about, I’m gonna own this stock.

I don’t have a stake in the f*****g company.

I don’t even care.

I’m just trying to help investors.

That’s that.

I don’t, I’m not short the stock.

I’m not pumping it.

And then, you know, making sure that you know, you guys are, are gonna crash it and sell it and then I’m gonna make money, which is legal.

That’s legal again, how they, you know, it’s not illegal.

I can’t pump a stock and everyone buy it and sell it, right? You go to jail.

But the short sellers are allowed to create to, to short the s**t out of it.

Then create these reports, have disclaimers on it and say, Hey, this information is deemed to be reliable but may not be.

And we may be in and outta the stock.

We’re in the disclaimer either disclaimers.

So they’re basically front running it telling you this story.

It could be true or not.

They don’t care crashes and they sell and make a fortune.

That’s legal according to ISEC.

That’s f*****g legal.

You gotta love it.

But if you look at this company and, and how it sells mom and pop investors on this dream, I mean you’re looking at, at since 2017 the share count is doubled right from 2007, Massive amount of warrants doing these capital raises.

Having big name executives at the top running a company.

It always makes it easy to raise money.

Oh you wanna follow, right? That’s what they say that that’s the number one rule of mining.

The number one rule everyone says is make sure you’re investing in the right person that’s CEO, that big name investor, that person that’s been there.

And that’s terrible advice because you could have done that and got f*****g annihilated over the past 10 years if that’s the advice you filed.

’cause everything crashed.

The number one thing should be, hey, does this market make sense for me to invest in uranium or gold? If gold prices are crappy, don’t invest in a sector, especially when interest rates are zero for 10 years and they’re trying to tell you, well that’s good because gold doesn’t pay anything.

So as long as interest rates is zero, it makes the case, right? They just try to find cases to buy gold.

When reality, when interest rates is zero, every single asset class in the world is gonna go high except for gold.

’cause it’s seen as a store of value in a safe haven.

And it’s significantly underperformed the markets over the past 15 years.

And it’s outperforming the markets finally this year.

And not by much but like six, 7% you would think it’s more ’cause they, it’s at all time high.

Everybody’s excited.

But I’m glad I own gold.

I’m not saying not to own it, but if you at Goal VX and how much money they raised from 2015 to 2023, they raised over $140 million.

It’s in Canadian includes 16 separate rounds of financing.

This is a junior, they don’t generate revenue.

So this is what they have to do most were done through pipe deals.

So you’re not gonna see all the details, right? You’re gonna see at almost all the financings included, what two to five year warrants.

Which companies are gonna say warrants are good for us because when you exercise them, we get money and we get cash in the bank.

In the meantime, it’s terrible for you ’cause they dilute the s**t out of you, okay? They’re always gonna spend something and trying to help you out.

I have no stake in this.

Now 140 million may sound like a lot, but it’s still the money they raise, it’s still well it $200 million short of the 339 million initial capital costs needed to build out their biggest project, which they’re probably gonna destroy the name, which in Africa Manola project, we’ll call it the M project since I’m gonna say it a few times.

So this $339 million estimate from GovX and this is their press release with a stock iPod in 2014.

They said it’s gonna cost $339 million to build this app today.

If you look on their presentation, they say it’s gonna cost $343 million to build out.

That’s from the latest presentation.

So I guess inflation doesn’t apply to projects in Africa.

Maybe it’s me.

It should be at least 40% higher than that number from 2014 till today.

The dilution from those financings, stay with me here In 2015, Gox had 168 million shares outstanding after these financings.

Today the company’s outstanding shares is 812 million.

That’s an increase of 383%.

If you don’t understand what that means, that’s like robbing you of 383% gains in the stock.

Except instead for the stock going higher, the share count’s going higher.

So the market cap’s going higher, but the share price is not appreciating ’cause the value of the company is getting bigger, but the share prices isn’t moving ’cause you’re increasing the outstanding shares dramatically by almost 400%.

This explains why the stock’s down 50% since 2021, despite uranium prices being up over 400%.

And by the way, by the way, that dilution, it does not include the $249 million in warrants or 4 204 9 million in warrants and the 52 million in options that are outstanding.

If these get exercised, it would increase the total share count to $1.1 billion for a company that’s not generated revenue that would never get its minds developed.

We’re talking about like Virgin Galactic.

We’re all going to space now.

The stock’s a dollar, you’re not gonna to space.

You gotta look at this stuff.

And by the way, I don’t see those 249 million warrants, because it would have to happen at a 25 cent price and it’s 5 cents now.

It crashed.

But based on that dilution alone, where you need to understand, you see this a lot in mining companies, it’s almost impossible for you the shareholders to make money in the stock, especially GovX, unless it’s African mines go into production, which is never ever gonna happen.

So now GovX, like I said, does not generate a lot of revenue, relies on financing and fund operations.

Now for a company that’s not generating revenue, the executive chair and CEO, that compensation is really steep, right? Freeman Freeman, if you look at him, his sons run the company, for example, the executive chairman made 2.4 million while the CEO made To me that seems like a lot of money to pay two people running a company that iPod in 2014 at $2 and 14 cents and it trades at 6 cents today.

So executive chairman, why this stock absolutely got annihilated made 2.4 million and the CEO made 3.1 million.

It’s also a lot of money to pay two people who are not all in on GovX.

I can’t explain this enough to you ’cause the one thing I freaking hate is when I do like a stock, which is rare when I like a junior miner company and when I like it and CEO you know is able to give you all the details, answer my questions like hey, this is a pretty good situation.

I think it’s good to bring my investors.

I like it.

Maybe I’ll invest in it.

Whatever.

The one thing I f*****g hate is when three months later they call me back with another idea that’s in a total nother industry that I should invest in.

Hey, I’m on the border, this biotech company, I’m on the board of this marijuana company you might wanna get in.

What that tells me is you are not 100% focused on your company, which I’m investing in the biggest red flag.

And you see that happen time and time again.

If you look at these guys, the executive chairman and the CEO, they’re not all in on GovX the old executive positions on a bunch of other mining companies as well.

So they’re not really focused on that.

They don’t care.

They’re making money while everyone else is losing money, right? You’re making 2.4, 3.1 million.

Why do I give a s**t about investors? And we need money.

Hey, I have a big name on be able to raise money and, and and fine, we’ll just screw the shareholders.

They’re not gonna learn.

We keep raising money from them.

You gotta be aware of this s**t ’cause everyone on Wall Street and everyone, they’re all out to get you.

Everything works as long as you could sell the garbage in the s**t to the retail investors.

It’s what happened with SPACs.

It happened during the credit crisis.

As long as you could sell the s**t and convince the retail investor, these guys get richer and richer and richer and they’ll never get punished.

The SEC will never punish them.

If they wanted to punish these guys, you would’ve saw so many CEOs in jail after the credit crisis.

You would see all these management teams, almost all of ’em for SPACs.

I mean these guys made an absolute fortune while everyone got wrecked.

They’re not going after them.

They’re trying to go after crypto companies, the SEC, they’re trying to go after Tesla now.

Well you got Facebook TikTok shut down.

You say well it still works.

Wait, just wait a couple months before the election.

There’s no way TikTok is going to be online and working and operational during the election.

Guaranteed they’re going after Elon Musk again ’cause he has another free platform.

They’re doing it Drew Tesla constantly going after this guy.

That’s the way it is.

But not only that, it’s a lot of money for these guys to make considering the massive losses.

Shareholders endure holding GovX for the last 10 years.

But it gets worse.

So in January when I wrote this post on Twitter, The government of Niger announced, and this is where the Maine, the their biggest asset is that mind the M mind, right? The suspending, the granting of new mining licenses and would begin an audit of the mining sector.

So this followed a successful military coup a few months earlier, which resulted the formation of a new government.

And it was so bad the US said, you know what? We’re removing all of our military personnel from the country total, right? This is why you don’t invest in mining companies that are not in the right areas, right? ’cause it carries your political risk.

And I’ve seen it happen time and time and time again where the government just says, you know what? We’re taking this over and bye-bye.

Too bad investors get nothing.

Now after this news in January, GovX came out, they assured investors, Hey, this news is being blown outta proportion.

It’s only related to the gold center, not uranium.

Which was an outright lie.

They lied to you.

And you know how you knew that? Because a couple months later in March they said that it’s an advanced due diligence talks with a select group of lenders to raise $200 million in debt financing.

And this has helped pay for its man project.

The company, I don’t think raised more than $15 million ever.

Why the rush? And to raise 13 million, it was odd because they just literally raised Now you’re like, well we wanna get financing 200.

Why you, why the whole financing at once? So they knew this was coming, they knew you should know.

You see they, they just didn’t tell anybody.

But they told you, Hey, it’s not a big deal.

That’s what they told you.

So you stay in the stock.

Now the 13.8 million that they raised was fully bought because uranium prices started surging.

They went to $90 a pound for the first time in like 15 years.

I was like, holy s**t.

But I have to ask a question for investors who bought that financing? And this was like, I think it was like 18, 19, Again, it’s 5 cents.

Now did they know GovX was gonna turn around a couple months later and look to raise 200 million so quickly and dilute the s**t outta you? I would say no.

But then on April 19th, couple weeks ago, now you can connect the dots because in a surprise move, Niger gave GovX an ultimatum.

They said, Hey guys, you’re either gonna commence mining At the Bandwell site and that project by July 3rd, 2024.

Or we’re gonna revoke your mining permit.

When you say commence mining, just to be clear, that means you have to actually start producing uranium, which they’re light years away from doing.

So’s true to its word GovX.

They gonna raise that 200 million, forget it.

Who the hell is gonna come into that financing knowing that their biggest asset, they’re gonna lose the permit on their biggest asset.

And how valuable is that asset to GovX the Mandu asset? It lists it’s carrying value of that asset at 65.

2 million.

What does that mean? That amounts to 96% of its total mining portfolio.

So if they lose that permit, this is a zero.

This is a zero outside of maybe the 12 million, But now they’re looking raise $200 million when you’re gonna lose the per.

What are you gonna raise it for? Gonna lose the permit on this.

Okay, why take on that risk to go vx losing its mining permit on on Mandela? Mine is like TikTok losing its license to produce videos, right? It’s worthless.

No one’s gonna go there anymore.

And if you need further proof that the stock is worthless on April 25th, this is just two weeks ago, their auditor, which is Pricewaterhouse Cooper, and you have to read this, it’s great the way they tailor it and the way it reads, it’s almost like you gotta watch out but you have to read it three times to figure out what they’re saying.

I’ll make it simple.

’cause this is what they said.

And this is financial statements for December 31st, 2023 and 22.

They came out with, so you know, which they produced on April 25th.

And I’m quoting here, we draw attention to the consolidated financial statements which describe events or conditions that indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.

So I’m gonna reiterate what I said in January 26th when everyone went rip me and, and again I don’t have any stake in this.

I’m not patting myself on the back.

What I’m trying to teach you is that there’s a big difference between companies.

Just because the underlying commodity goes higher doesn’t mean you should buy anything.

But my thesis was why should any investor take on the risk of Africa and military coups and all this s**t when you could buy UEC Or Encore Energy who’s gonna produce uranium in the US very shortly.

And these companies are transparent.

They’re finally having huge government support from the US gonna take full advantage of surgery, uranium prices without having to take on a massive geopolitical risk.

And When it comes to investing, this is how you become a great investor because you invested in UEC, you’re on you, you made a fortune, you invested in Encore Energy, you made a fortune.

These are names we’ve been talking about for a long time.

Even, even you could have went to to to cameo.

You did well, this company was a piece of s**t from the start all the time from the start.

But so many people are in some of these names and you have to look at that because you can’t just say uranium, I’m gonna buy this and I love this and all that.

You know, even when it comes to Denison, I think that there’s much better plays than Denison when it comes to AI or anything else.

I mean there’s better plays.

Nvidia’s not AMD.

I mean seriously, you look at Nvidia and this is what we’ve been pounding the table on.

I mean people like AMD is gonna benefit from A AMD is not an AI play yet.

It trades at a higher multiple than Nvidia based on hopes.

On hopes it’s gonna capitalize on AI.

If you went to our live events, the Curzio AI, when we talked about AI and, and you know, we held live events, you know, we held a live event a couple, I think what, two, three months ago now.

I said that’s one of the companies you have to watch out for is AMD I think it was at 180, 1 90 where is at one 50 wherever and video’s gone up.

AMD trades a higher multiple video.

Yeah, based on those hopes, it’s gonna capitalize on AI.

Yet you look at Nvidia, which is cheaper, is already capitalizing.

It’s there.

You see a massive growth sales earnings, free cash flow demand is off the charts.

And every single company that reported every, all the major companies that have hundreds of billions of dollars in free cash flow.

And, and you know, again, Apple buying back 110 billion of its stock generating a hundred billion in free cash flow annually.

All these companies, Google, Oracle, what do they say? We’re cutting back spending on everything except, except for AI.

That means we’re buying a shitload more from Nvidia.

Well, AMD is barely growing at all.

There’s a big difference.

I mean I can see if, if AMD was a lot cheaper, but how has it traded a higher multiple? That’s what I don’t understand.

How do you trade a higher multiple than a company that’s showing these results constantly? And the last 6, 7, 8 quarters for Nvidia have been blow out.

They were generating like $4 in earnings.

They projected to generate 22, 23, 20 $4 in earnings.

Holy s**t.

In a 24 month period.

That’s unheard of for any company.

I mean another good example is Disney.

Disney just reported and I talk about Disney and it’s not like I have this negative tone on Disney.

I just see things the way they are.

Okay? Even said, listen, I think Disney is gonna go higher.

Over the past couple of quarters, expectations were low going into this quarter.

It was the first time in four years the expectations were sky high.

When I say sky high, analysts significantly lowered the bar on Disney every single quarter for the past four years.

Except this one.

This was the one quarter where analysts are raising estimates into the quarter.

It didn’t make sense.

’cause Disney, right now, if you’re an investor in Disney, you need to ask yourself one question.

How does a company go from cost cutting story to a growth story? Because there’s been a cost cutting story.

It’s not a growth story.

You can say earnings and growth, they’re growing because they’re, they’re cutting costs.

That’s what the fast four years were about.

But now the street wants growth.

And how the hell is this company going to grow? If you, if your business model is solely rely on streaming, it’s solely relying on streaming to be its growth model.

And you say, well Frank, you know the DTC losses, right? Direct to consumer, which is that division have come down and it’s almost profitable, but it came at a cost.

I mean, have you seen any new content, any barely any a Disney plus and you’re producing very little new content.

New content is the lifeblood of streaming.

It keeps subscribers around.

It’s not like a big library.

You’re not gonna watch movies a hundred times.

You get sick of it after a while.

Now there’s 50 streaming platforms and you’re paying for ’em and you’re paying twice more than what you pay for cable.

But new content is huge.

Why Netflix works, it’s why Max works get Disney.

What are they doing? Not producing new content and raising prices dramatically and throwing ads everywhere, which makes the user experience suck.

That’s probably why they warned that direct to consumers gonna be soft at core.

They’re blaming their hot star Disney division, which is their international division, which over the past three years, especially when Chap was there, you know that was the division they use to manipulate the stock because they added tens and 20 50 million subscribers.

They’re like, oh my God, we’re bigger than Netflix.

They will offer free basically.

’cause they pay a dollar for the service and like India.

But nobody cared if they were paying anything.

They just wanna see subscriber growth.

They don’t care if the average reverend per user was $3 or $2 and Netflix is 15, 16.

Nobody gave a s**t about the numbers.

JP was like, Hey, this is what investors wanna see.

Let’s just give everyone free.

Well these numbers will go higher and higher and our stock could go higher.

Went to 180 and that’s why I became really negative on it.

But if you look at Disney, Hulu live streaming is also a disaster.

It’s in direct competition with YouTube tv, which Google locked in the NFL package and they’re marketing like hell.

You could say whatever you want about DirecTV.

It’s a s****y service, I hate it.

But the NFL package made that company.

Now Google has it.

So I can’t see anyone new to streaming saying I wanna go to Hulu and instead of YouTube tv, but Disney relying on streaming as its growth model.

Think about that for a minute.

That’s their growth model.

Oh, it’s just growth.

Disney is a feature company.

We wanna be like, they’re going head to head with the biggest technology companies in the world, in the most competitive industry you’ll ever see in your life, giving you all this service, 10, and we’re gonna charge you six, seven, $8.

Now they wanna charge you 15, $20.

And all the companies are competing against all the big guys.

They’re fortress, balance sheets, Google, Apple what? Apple TV, Amazon what Prime Netflix.

That’s who they’re competing with.

They’re also, and I mean you want more competition, max, paramount, peacock, sling, fubu, Roku, dozens of niche players who are offering free content now through streaming.

Just buy a new tv.

If you buy Samsung tv, they’re gonna have free content on there.

Not that it’s any good, but still that’s your competition.

So I ask if you really own Disney right now, how are they going to grow? How are they gonna keep their existing subs given the highly competitive marketplace? Also, You know, not only is it competitive, you’re not producing a lot of new content and you’re raising price and putting ads all over the site.

That’s why they’re warning.

This is their growth model.

They’re going 100%.

That’s Disney’s growth model.

It’s not building a million parks.

It’s not just generating a s**t load of movies, which we could generate instead of one Marvel or two, you’ll generate six.

Now with AI, six of those could go out.

Billion dollar movies, maybe even a little less than that.

They haven’t been generating billion dollars over the past couple Marvel movies, star Wars, all that stuff.

Generate all AI, all this content coming out, have it in the movies.

And then you license your content, which Sony’s doing.

Netflix is paying ’em billions of dollars to produce or to get the rights to show all the movies that they produce six months after they come out in the theaters.

That’s a pretty good business model.

That’s free money.

So I ask you, could Disney go higher from me? Maybe.

Maybe.

I mean, I’m not surprised it went down 10% yesterday.

But here’s how you look at investing.

I’m not s******g on Disney.

I’m just giving you the facts here that people aren’t gonna tell you on tv.

Oh, streaming’s almost profitable.

This is great.

Of course it’s profitable.

You’re not producing anything and you fired everyone in division.

You have less creativity there.

You’re raising prices, of course you’re gonna see losses come down, but you’re not gonna be able to grow this thing.

But this is how you approach investing.

Why own Disney at 23 times forward earnings still trading at 23 times forward earnings.

By the way, trading at a growth multiple SP five is trading around 19, 20 times forward earnings.

Disney has a growth multiple.

But why own that? Where you could own Google, which is trading at the same multiple or a similar multiple.

You could own Google.

It gives you exposure to streaming that you want along with what cloud and AI to the biggest growth markets in the world, along with a much stronger balance sheet.

So when you look at companies like this at GovX and UEC and and Encore, if you look at at AMD compared to Nvidia, I mean even right now, maybe AMD goes higher, that’s fine.

Maybe Disney goes higher, GovX is not going higher, they’re going outta business.

But you’re losing, it’s the opportunity cost.

’cause you wanna be a great investor.

You should approach every company like this before buying shares.

Like, wow, I really like this company.

However, if you look at their competitors and, and again, sure Disney AMD may move high, but Google has moved higher over the past four years.

It’s starting to surge right now.

You look at, at AMD moved higher a little bit.

Nvidia moved a lot higher than AMD, tremendously higher than AMD. AMD had a nice run.

But now it, now you see an AMD crash basically come down Nvidia’s doing great price talk is being raised to to 1100.

I mean you, you’re still seeing that massive demand.

But why buy these companies? ’cause even if they go up and you’re like, Hey Frank, I made 5%, 7%, you’re missing out on those 30% returns.

Now times that by two years, five years, 10 years, I mean you’re le you’re talking about a portfolio of, of hypothetically a million dollars being maybe 1,000,005 in 10 years compared to 3 million, 4 million.

It’s a big difference.

And maybe not that high of returns.

But when you’re compounding over time and say 10 years, it’s a big, big difference.

I mean even if it’s two or 3% returns higher compared to if it’s 11% compared to 8%, if you look over a 10 year period, it’s massive.

Those compounds when you’re compounding that.

But if you wanna be a great investor, that’s how you look and that’s how you approach investing in stocks.

’cause you’re basically buying Mercedes for the price.

You’re gonna pay for a Hyundai and that’s how you wanna approach investing.

And you take it on much less risk.

And in case of GovX, it’s much, much worse than that.

I don’t know what kind of crappiest car you could possibly think of.

The GovX looks like it’s a zero.

And to me it always was a zero.

But it’s sad that they use a big name on that stock.

They lied to investors.

It’s a lot of b******t.

And you see that a lot in the mining industry.

It’s why you have to be careful and someone’s gotta call these guys out.

You gotta call some of these people out because they’re f*****g you.

And I’m done with it.

I’m done with it.

Enough of this enough because there’s nobody regulating it.

The SEC’s not there, they don’t care.

They don’t care.

The SEC, they don’t care.

Did they say, oh well we’re protecting you a crypto.

You’re not protecting anyone and you want FTX. FTX may be, I think the only company ever in the world to go bankrupt in the world in the history of, of the world that claim that went bankrupt and are paying out its investors more money.

They’re paying their investors.

They’re not paying ’em a hundred percent, they’re paying ’em 118%.

That’s how effed up things are when it comes to the SEC.

It’s fraudulent.

It’s terrible.

They right, they, and they, they lied too.

They talked about all the massive debts and this company and and and bankruptcy hearings and all credit is gonna get paid.

But they didn’t a account for the assets.

They only said the liquid assets.

But what about the illiquid assets, which are the investments, which are in Anthropic, which were in some of these cryptos that are tremendously from a year ago.

So nobody’s there to help you, no one’s there to regulate you.

But you have to be careful ’cause this s**t is clear as day to me.

’cause this is, you know, I like doing this stuff.

I like looking under the hood and seeing this stuff, but it’s not clear to everyone else because the CEO’s are able to tell a good story.

And remember, this is gonna go to zero.

You’re gonna get f*****g an eye lady, you’re gonna lose all your money.

And these two guys running the company both made $3 million each while you got wrecked.

And you know what’s gonna happen to them.

Nothing.

They’re gonna start up another four companies and do the same thing over and over and over again.

That’s why you listen to Wall, wall Street Unplugged.

Very few people are gonna tell you that.

I’m gonna tell you that because I don’t get paid by anybody and I’m independent and I don’t give a s**t.

We’ll leave it there.

Final note here.

Two weeks ago we held our latest crypto event, Crypto 2024 series.

It was our third one, the live presentation, also live Q & A.

I answered, man, probably 50 questions, maybe more about crypto with different things about the halving and everything.

It was a free event.

You could still view it by gonna www.Curziocrypto.com.

But if you want to view it, today’s the last day to do so.

It’s also the last day to get a 70% discount on my Crypto Intelligence newsletter on You guys know, at least over the past six months, pounding the table on crypto when Bitcoin was 40,000 and yes, it came down from 73 and it’s 64, whatever.

And people are like, oh, we got in early.

Same with AI.

I mean, two of the biggest growth trends you’ll see at least over the next 10 years, probably much, much longer.

And the money that you could make in both these sectors could literally be life changing.

I’m not just saying that.

’cause that’s where I’m putting most of my money in the market right now is in these two sectors.

That’s where the market’s heading and that’s where the growth is.

That’s why I offer a special discount to Wall Street Unplug listeners.

But that discount for Curzio AI that ended a while ago, the 7% discount on Crypto Intelligence is gonna end tonight.

So if you’re interested in buying that newsletter, it’s a great time to buy it.

Guys.

I don’t say that often.

It’s a great time because a lot of the cryptos in there have come down.

It will up a lot for us.

We will up tremendously and they pull back a little bit.

There’s just a blip in the road.

Bitcoin’s going a lot higher.

It may take six months, it may take 12 months.

It’s gonna go to a hundred thousand when it does to all coins underneath the good companies, underneath the Oracles and Microsoft.

All these companies, the good names, not the s**t go up three to one, four to one compared to Bitcoin after the Halving and we’re right after the Halving.

We’re talking about that 18 month period.

It’s prime right now to make big, big returns, especially with these stocks pulling back just a little bit over the past couple weeks.

But if you went to same set discount Crypto Intelligence today, and to get that, you can go to www.Curziocrypto.com.

So guys, that’s it for me.

Questions, comments.

Email me frank@curzioresearch.com.

Thank you so much for listening.

Love you guys.

I’ll see you tomorrow.

Wall Street Unplugged Premium.

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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.

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