Frank Curzio 00:00

How’s it going out there. It’s Thursday, August 27. And I’m Frank Curzio, the Wall Street Unplugged podcast. We’re breaking the headlines and saying what’s really moving these markets. So remember, guys, Thursday’s podcast is a Q&A, and since we tell you to go to ask.curzio and everyone’s like, “F you,” we’re not going to go to that site no matter what. We’re still going to email you at frank@curzioresearch.com. Just email me, frank@curzioresearch.com. Maybe that’s easier. Daniel, joining me today. What’s your email address, Daniel?

Daniel Creech 00:35

daniel@curzioresearch.com.

Frank Curzio 00:36

That’s where the questions come in. If that’s what you want, that’s perfect. But everyone’s asking us questions through there. Remember, Thursday’s really cool, so total Q&A, anything. We don’t hold anything back. Okay, there’s no bias or anything here. And, uh, yeah, feel free to ask questions. This is working really, really well. We got a lot of great questions. Daniel, what’s been going on? How’s the week so far?

Daniel Creech 00:53

Uh, week is fantastic, Frank, now that you’re back, of course. Speaking of anything, on Thursday I was waiting to ask you this, sir. Did you see that my great state is once again back in the news in Ohio?

Frank Curzio 01:05

What happened?

Daniel Creech 01:06

Well, evidently a 49ers owner was prowling around Ohio.

Frank Curzio 01:10

Really?

Daniel Creech 01:11

$140. I have my own thoughts about this. I teased this yesterday, Frank. I’m going to tell everybody what country music says about this. I want your opinion first.

Frank Curzio 01:19

What is the big deal? What is the big deal? The guy wants to get laid. Both parties know exactly—I don’t know why prostitution’s not legal. I mean, it’s between two adults. If you make it legal, you could regulate—you could regulate it, make sure you don’t have any crackheads, make sure, you know, you have—again, what’s the difference between that and picking up somebody in a bar? What’s the big deal? Some guys want to pay for it because they don’t want—

Daniel Creech 01:40

Transaction, Frank.

Frank Curzio 01:41

I’m old, Frank. I’m kidding. There’s a lot of women that, that, you know, make a lot of money doing it. Uh, some women do it and pay for that college. You have men that have a lot of money and say, “Hey, I want this, and I never want to talk to anyone ever again.”

Daniel Creech 01:54

Frank—

Frank Curzio 01:54

I don’t want to deal with people calling. But I, I just don’t—it’s almost like giving you a ticket for a seatbelt. If I don’t wear a seatbelt and I go through the window, it’s my fault. You got to, like, give me a seatbelt, let me know I’m an idiot. Like, a ticket for that? I just—I don’t understand that you could go on OnlyFans, pay that person on OnlyFans, have sex on OnlyFans, and that’s perfectly fine, and then you do something like this. And again, this is just a headline to embarrass someone. Just like I embarrassed, you know, the Patriot owner. Uh, getting a little rub and tug there. So I just—yeah, it’s a headline, and I don’t know, it’s crazy. I mean, for me, I think it’s so much better if the cops are doing something, uh, more productive than just, you know, having these things on something that two adults are agreeing on, and everything’s fine, and it’s cool. And I just don’t get it. I mean, the world’s better when more people have sex, they’re more happy. I just don’t get it why—I don’t understand why, why it’s—yeah, I get it.

Frank Curzio 02:43

It’s high-profile guy. Why is he paying $140? He should get someone to do—you don’t want to get someone to do that for you because it’s personal, right? No matter how rich you are. But, you know, I don’t know about going to a trailer park and stuff like that. Maybe that’s what you like.

Daniel Creech 02:54

What do you guys like? Trailer parks?

Frank Curzio 02:55

Maybe—nothing. I’m just saying, someone that could afford to get this person picked up in limos or, you know, again, be very on a down low, but everyone’s into their own thing. You can’t help that. That’s everybody’s choice, personally. Maybe he likes women that hang out in trailer parks, and that’s a lot of fun for him. I have no idea. But, yeah, I don’t know. That’s how I feel about it.

Daniel Creech 03:15

Not that there’s anything wrong with that. The only thing I blatantly disagree with you on, Frank, is that there is absolutely zero, nobody, not one, paying for college. Have you seen the price of college these days? Nobody’s making that kind of money.

Frank Curzio 03:25

Yeah, but it’s good. They’re going to raise—they’re going to raise people’s college tuition by more so they could pay the NILs, right?

Daniel Creech 03:30

I will say, and believe nothing on the internet at first take, and you brought it up slightly, one of the—and I’m having fun here, so I’m in the fun environment, okay?

Frank Curzio 03:41

I’m serious.

Daniel Creech 03:42

Not moralism. I know you are. I’m telling you where I am.

Frank Curzio 03:44

Yeah.

Daniel Creech 03:45

I’m simply saying I cannot believe how people’s first thoughts or reaction go to money and looks. Now, I don’t know if the videos and pictures on the internet are accurate of whoever this woman allegedly was. That’s not important. But the fact that this guy is very well-off and arguably could avoid—avoid—afford anything that your average Joe thinks about when you think of that lifestyle. I will say, Frank, there is a great country song, and it’s by Travis Tripp, “The Whiskey Ain’t Working Anymore.” You probably don’t know it because you’re not as big a redneck as I am. But there is a line in there that says, “A woman warm and willing” is what I am looking for. Notice he did not say anything about height, weight, eye color. That’s—people get over that. Just because you’re rich. Look at all these rich guys. If money made you happy, then People magazine and stuff would not exist.

Frank Curzio 04:36

Yeah.

Daniel Creech 04:36

You wouldn’t have the Hollywood, you know, rotating like musical chairs with spouses and stuff. Anyway, I—it is a headline to embarrass this guy. The only other guy that’s more happy than him is Robert Kraft, because it does take some of that.

Frank Curzio 04:48

It does.

Daniel Creech 04:49

White out there.

Frank Curzio 04:49

It does take a little bit, yeah.

Daniel Creech 04:50

And the internet is undefeated because there’s a hilarious meme and picture of Robert Kraft and this gentleman from the 49ers, like, shaking hands.

Frank Curzio 04:57

Is it really? I’ve—I’ve the owners—the owner meetings, yeah.

Daniel Creech 05:01

Oh, anyway.

Frank Curzio 05:01

Yeah. What are you going to do? So, so let’s get—a lot going on. I know we always start out with something that’s pretty cool and headline-ish, but, uh, got lots of questions. So I just—tons of questions on Nvidia. Uh, yeah, should you buy it here? Do you like it here? Uh, listen, we have in our portfolio, we bought it when it was down a lot. And I think it was down six days going into this. Six out of seven days. I would have been a buyer on this ahead of the quarter only because we knew the risks. And when you know the risks, we say this all the time, Daniel and I always say this all the time. It’s like Elon Musk going into a quarter when, you know, Tesla sucks and things are bad and people worry about this and that. They have like four or five things they worry about, and Elon Musk is the best at addressing those four or five things. And Nvidia did a great job. If you noticed, Daniel, they came out—the Wall Street Journal came out with an article, what, a day ago. I think they were going to print something else that came out because the stock last night when they reported, when they first reported earnings, it was decent.

Frank Curzio 05:55

And, you know, they beat—it was good, and the stock fell 2%. And by the time they got to the call and they hit the markets, this thing absolutely surged because of the commentary. And then the guidance came in, right? So the easily beat earnings, revenues, uh, they rose 105% year over year to $96 billion versus $92 billion. And I think like $94, $95 was like a whisper number. Again, stock was initially down on that, but then when they had their call and they released their guidance, 2028 guidance, they were expecting 45%, 40, 40, 45% growth. They said 70% growth, implying the AI trade remains intact for the foreseeable future. So anyone tell—we’ve been telling you this over and over again. Doesn’t mean the stocks aren’t going to fluctuate. Doesn’t mean that you’re seeing credit default spreads because they’re taking out so much debt to build data centers and stuff like that. That’s not—we saw Oracle. We liked Oracle. Oracle’s now coming back really nicely, uh, finally. It’s—there’s not one company that’s saying, right?

Frank Curzio 06:51

There’s a couple of analysts out there. There’s a couple of the bears, right? The bears who are not in this trend, never been in this trend, and just, you know, “Oh, it’s going to crash and it’s terrible and it’s going to slow down.” There’s no sign of this slowing down before 2030. I mean, you’re looking at 70% growth implied. They said it would be 100% growth. The only thing that’s stopping them is supply constraints. That’s how much demand still going forward. Uh, the cloud industry backlog now greater than $2 trillion. Okay? Look at cloud. That’s confirmed. That’s why Microsoft went up so much. That’s why Amazon went up so much. Because they’re focused on AI. All of a sudden they said, “Wow, their cloud divisions were going 20, 25%, 27%. Now they’re growing 30% plus going forward.” All of a sudden, again, that percentage usually goes lower. The dollar amount goes higher, but you see the slow growth percentage-wise. The percentage is increasing in cloud because all this does not work without cloud.

Frank Curzio 07:40

Uh, you’re looking at Outlook for Nvidia, which is massive, assumes no growth from China, which is a $5 billion plus revenue opportunity that’s not even priced in. So they’re factoring in zero, or maybe it will be zero. But if they come around and we can work with China and they sell them chips that aren’t as good, you’re looking at another $5 billion easily a year opportunity. So what I love, Daniel, is he—Jensen got on, and he was also on Kramer’s show last night, but on the call, he had rebuttals for every bear case. Uh, he talked about CapEx expected to reach $800 billion this year, $1.3 trillion in 2027. Doesn’t mean it’s great for all the hyperscalers that want to spend the money.

Daniel Creech 08:21

For the hyperscalers, though, not Nvidia.

Frank Curzio 08:23

No, just, just the CapEx for hyperscalers. So the hyperscalers, that’s how much they have to spend, which is great for Nvidia. Maybe not great for them because they’re seeing inflation on memory and stuff like that. He said AI is now both extremely useful and increasingly profitable. Hyperscalers and NeoClouds are earning substantial sums on their AI compute infrastructure, so they’re making tons of money on it. This was important. I feel like nobody’s talking about this. AGI stands for artificial general intelligence, where AI systems surpass the capability of humans when it comes to tasks and domain. And they said that this would happen in 2040, 2035, 2032. Jensen went on and said it’s—it’s has been achieved. Agents have recently surpassed humans in token consumption. So this is AI working off of AI that now this has been reached, AGI. Again, this was scheduled to happen a long time ago, but it just shows you how early we are. What is it? Maybe second inning, third inning?

Frank Curzio 09:24

You know, what we talked about in terms of how much electricity we’re going to be using. Now people are saying, “Oh, we’re going to need 300 gigawatts of power,” when it was like, you know, 180, 170. We’ve been saying this for over a year. That’s why we have DGXX in the portfolio. It’s kicking ass. That’s why we had Vivo in the portfolio. That’s killing it, right? Seeing these trends going forward. But the fact that he was on there after the Wall Street Journal purchased, uh, published that article about circular financing, uh, again, he was exploring how that model creates more proliferation of AI and explained it. I mean, when you have a list of stuff that people are worried about and it’s saying, “Hey, you got to raise your estimates.” We’re worried about this circular stuff where you’re paying these guys and these guys are going to pay you, and, you know, margins held up pretty straight. He talked about how memory prices are increasing. It’s a major headwind for everyone. But the fact that he addressed all of those, took all the risk off the table, now you have a dirt cheap company trading literally at 15 times, below 15 times forward earnings, growing earnings by 70% plus.

Frank Curzio 10:21

I mean, the average right now for the S&P 500 is trading around, what, 21 times forward earnings, 20, 21 times forward earnings, and they’re growing earnings by, you know, maybe 18% this year. I mean, you had a 20% quarter, but still, you’re looking at a company that I think you own it, we own it, continue owning it. I mean, there’s $400 plus price targets on it from a lot of firms now, easily $300. This is going to be a $300 stock pretty soon. Uh, it’s underperformed over the past year, year and a half, and, uh, you know, they confirmed so many doubts about AI that you cannot be a bear in this sector and think it’s going to slow down anytime soon.

Daniel Creech 10:56

Yeah, well said. Um, couple of highlights from here. This was an incredible quarter. I mean, they always put up good numbers, don’t get me wrong, but he did address certain things. Real quickly from me, the circular financing thing, man, I wasn’t that impressed with it on his on the conference call. I understand where he’s coming from. I think it’s okay to call it circular financing, but I think he’s dancing around it because of the negative, um, comments and thoughts that come along with that. I thought he did a good job handling that. What really stood out to me, Frank, is where he talked about how much value or infrastructure that Nvidia can now put into one gigawatt of power. And so when you’re looking at the supply chains and the constraints and the bottlenecks that they’re dealing with, power remains to be the number one source. And I don’t know if you caught this, Frank, but they were talking about how you have Hopper and then Grace Blackwell and then this Vera Rubin. And Rubin is the most latest and greatest technology.

Daniel Creech 11:51

But it’s essentially he was talking about how much Nvidia computing infrastructure revenue can a customer theoretically get out of one gigawatt of power, Frank. Hopefully I’m doing this okay. I just want to explain this trend here to you. With Hopper, it was about $18 billion per gigawatt, Frank. Jumping up to Grace Blackwell, it goes from $18 to $25 billion per gigawatt. Rubin goes up to $40 billion. And what that means, essentially, and he even makes this reference on the conference call, Jensen makes this reference about, you know, if we could, we’d try to get $1 trillion of value in compute capacity into each gigawatt. And the takeaway here for me is these guys are clearly in the lead on everything regarding AI. And what they are doing in the breakthroughs on the technology side and infrastructure side is they are getting more compute power and more value out of their chips for not only them, but their customers, while the world waits on building out the grid and energy infrastructure and power generation.

Daniel Creech 12:49

I thought that’s amazing. And when you just look at $18 to $25 to $40, Frank, it’s not hard to follow along. That is a hell of a trend and an incredible increase over time. Um, the other thing I thought he that stood out to me was open versus closed models. I don’t know if you want to get into that or, uh, talk about much of that, but essentially they’re going to continue to be winning because they run all open models as well.

Frank Curzio 13:10

Partners everywhere. This isn’t a hardware company. It’s not, it’s, it’s, I mean, the software part of this reminds me of Apple when Apple was a hardware company and then the service revenue, which is massive for them, right? Huge margins. You know, they’re partnered with everybody. And that’s, that’s their secret sauce because nobody in technology likes to have a lot of partners. We’ve never seen partners like this. Apple always stays close to the vest. They don’t, these guys are like, “Hey, instead let’s partner with every single company. Let’s devise systems for every single one of them and work closely with them because all their systems, everything that they’re going to do is all different, specific to their company.” That’s what AI is about, right? AI isn’t about, “Oh, I could use it. It’s great.” It’s how you use it personally. And that’s how you could make or take the most advantage of it. So, you know, it’s not like, “Oh, I could use AI and build a business off of it.” It’s how do you use it personally yourself?

Frank Curzio 13:57

Uh, and that separates everyone else. And when you use it that way, now you say, “Okay, maybe it’s not going to take as many jobs.” Yes, it’s going to take some jobs, but there’s so many advantages to AI where you’re going to need specialists in this industry. You could build your companies up, but not everyone’s able to do it. You have to find ways to do it. We just invested in a private company that we raised a million dollars in like a, you know, three days for this company because they found a way to use AI to help farmers out when it comes to breeding. Uh, and it’s incredible. Technology is unbelievable. Their revenue went from $400,000 a year to over $10 million in nine months, right? So, you know, using this around your business, that’s the value of AI. It’s not like, “Oh my God, AI, everyone’s going to make money. It’s going to lose jobs.” You have to do a lot around it where you use these systems and capabilities, you test everything out. That’s what we’re doing with us. And we found out how to use it to build our traffic and it’s working tremendously.

Frank Curzio 14:45

Not everyone can, but we found a way to use it to us specifically where we have podcasts for 20 years almost that we could all put into this, right? It can almost write exactly like you when you have that much and we’re commenting on stocks for such a long time. Uh, but last thing here, this is the most important thing from an investor standpoint. This is how you should think about it. “Oh my God, Nvidia is great. I’m going to buy.” You should own Nvidia here. Okay? We own it. We’re up. I don’t care that it went down six days out of seven before this because you get it at the right price. You don’t worry about this. Same with DGXX and Vivo. Yes, they’re down 50% from their highs, but we’re up 100% plus on these stocks because we recommend them at the right price so we can go through the ups and downs. The biggest takeaway is the CapEx. It’s real spend. This isn’t, you know, BSO, you know, all these companies like the dot-com era and, you know, these guys don’t have any, you know, free cash flow coming.

Frank Curzio 15:33

This CapEx spend is real, right? You have memory prices surging, which hurts the major hyperscalers. Probably why they’re all down today, even though Nvidia is up 6%. You thought, I thought the whole entire market would be up today, even if Dow’s down. You would have a good quarter from Salesforce, which finally turned the quarter. Uh, the question you should be asking is, where does that spending go? So you’re looking for Nvidia to grow, for hyperscalers to grow their AI capabilities, they all need one thing. And what do we say, Joe? Electricity. More power, right? More power. We need more electricity. That’s why we talk about DGXX. That’s why we talk about Vivo. Right? Just signed a very, very big deal, uh, Soded Iron recently. You want to look at suppliers, uh, that are well off their highs. Celestica well off their highs. And, uh, you know, this is a name that we made so much money on. We were so early to it. It was almost a, you know, a 10Xer for us. And also with Bloom Energy. I mean, Celestica, I’m looking here, the high was $474, it’s $315, right?

Frank Curzio 16:29

They do supply chain solutions. They provide the switches, which are great. You look at Bloom Energy here, uh, one of the only companies that actually has power outside of fossil fuels, which is fuel cell technology, uh, to power, which, you know, offsite power, which is massive, right? For grid, if you can’t lock into the grid, how do we get more power that we’re not taking off the peak times of the grid, which is a massive, massive problem. I said we’re going to see blackouts coming pretty soon. You’ll see. Been following electricity trend forever. So you look at Celestica, you look at these are the companies like, you know, BE, you know, and Bloom Energy is getting tons and tons of billion-dollar contracts. Uh, cooling technology, so many companies in this field, which is so disruptive, I feel like every six months of how do we provide these efficiencies? Because that’s what these companies are looking for. As memory prices increase, it’s going to hurt their margins. Things get more expensive and inflation’s running wild right now in technology, most parts of it.

Frank Curzio 17:24

You know, what’s a company that comes up with increased efficiencies? Because that’s a company that can get a contract. And when you look at the numbers, $1.3 trillion in CapEx spending for the year. If you find a small-cap company with a $250 million market cap, generating $25 million in sales, trading at 10 times sales, which is cheaper technology. Okay, say if it’s trading at $10 hypothetically. If this company could find a way to get just a small piece, 0.1% of the $1.3 trillion, you’re looking at a $1.3 billion revenue opportunity for a company generating $25 million in sales. Okay? You’re going to see that small-cap pop 10, 20X immediately. That’s how you make a fortune. You see where the money’s coming from. The money is real. Our job is to analyze companies, to get in early. We did it with Celestica. We did that with Bloom. You know, we have a great track record of this. We pulled back and sold a lot of our AI companies before it fell. We’ve been very, very active in this industry and been very good.

Frank Curzio 18:18

Of course, our returns could be better, but I’m very, very happy with those returns. Going forward, it’s the DGXXs, the Vivos. I’m going to look more into Ryan, look more into Iron. Uh, Iron has already moved up a lot. That has pulled back as well. But there’s a lot of companies in here in the supply chain. We have great, great, uh, contacts in this industry that helped us out to Bloom Energy, that led to Celestica and said, “Hey, this is a new company. It’s providing switches, and Cisco doesn’t have, you know, these are the guys that, you know, basically were able to solve the bottleneck problem.” And what happens? You have pricing power and everyone’s like, “Okay, these guys got switches. Boom.” It’s like the plumbing. You know, you can’t live in a house without the plumbing. This is what Celestica does. So that’s how you want to look at this. And, you know, just train your mind to be like, “Oh, wow, Nvidia is great. That’s great. Okay, you own it.” But the amount of money to CapEx going in, if you could find some small caps, even mid-caps, these guys, if they’re able to get just a small percentage, these are billion-dollar contracts being announced to small caps that change the entire landscape of that company.

Frank Curzio 19:15

It’s a totally different company. That’s where you have to look to make money in AI.

Daniel Creech 19:20

Well said. Very good.

Frank Curzio 19:22

Very, very good. That was a lot.

Daniel Creech 19:24

I can keep going on Nvidia, but there’s so much good in there. We can move on.

Frank Curzio 19:27

Okay. So we have a question on DIX, right?

Daniel Creech 19:31

Yes, sir.

Frank Curzio 19:31

Do you know who asked it? I forgot.

Daniel Creech 19:34

Yeah, he asked for, uh, DIX in a more of an update. Where is the, uh?

Frank Curzio 19:41

So DIX reported.

Daniel Creech 19:42

Joe, Joe asked.

Frank Curzio 19:44

Okay, Joe asked. He talked about DIX and it was a disaster.

Daniel Creech 19:47

Not this, Joe.

Frank Curzio 19:48

It was a disaster, right? If you put up DKS there, Joe, uh, they reported earnings earlier this week, I believe. Uh, and the earnings, eh, okay, it’s all about guidance. And for 2027 full year, they were supposed to report $14. They lowered it to $11.50. That is a major, major, major, major miss. Put it in the last like five days even. And that’s a major, major, major miss. Wow, CNBC sucks, huh? There you go. Okay, cool. Uh, stock fell 30% in a day. And a lot of times sometimes say, “Well, this is an overreaction or maybe it’s a buying opportunity.” One of the things that I realize is when you see a lot of downgrades, I saw at least five. I guarantee there’s more than that. When you see a lot of downgrades, that means you caught the street by surprise and they’re really pissed off. When I say the street, I mean the analysts that cover the stock. For all of the downgrade after the stock is down 30%, it means they had no idea why. Because last quarter they were talking about how great Foot Locker was.

Frank Curzio 20:50

We’re on fire. Things are awesome. Kind of like Mark Benioff’s talked on the call. He’s such, I shouldn’t say this.

Daniel Creech 20:56

Got to be nice now, Frank. The stock’s up 20%.

Frank Curzio 20:58

He’s such an asshole. He really is. Mark Benioff. Did you see him on the call? Like Salesforce? I’m so glad because that’s the quarter you needed to see. And you can say, “Well, it’s up 40%. They’re still down well off their highs.” But finally you’re getting AI and he’s like, “Just like the critics said, look at us now. Just like the critics said, look at us now.” Like he’s always like, “Okay, you know, you annihilated people over the past year with your stock, right?” So I like it. I like that you’re patting yourself on the back. You know, I don’t think you deserve patting the back after, you know, your stock performance a year before that. That’s okay. We don’t care about the CEO. We do care who he is. I’d rather you be arrogant, uh, and good at your job than nice and not good at your job, right? So I don’t really mind that. But, you know, when you’re looking at these guys saying what they said last quarter compared to this quarter, what a difference. And quote everyone finds a surprise. When you catch one surprise, you get this massive sell-off.

Frank Curzio 21:45

Sometimes it’s a buying opportunity. This time it’s not. I don’t like it here because this isn’t a short-term blip. It’s not like, “Hey, traffic is a little weak, but, you know, we’re expected to pick up later.” No. Their brand runs on athletic footwear and apparel and sales were horrible, especially for footwear. So you’re looking at sneakers, athletics. If you’re looking at the price hikes in sneakers, if you want to talk about inflation, you say everything else is moderating, go buy a pair of sneakers. I mean, New Balance came out with really good sneakers finally after a very, very long time. They’re selling their brands for $125. You cannot get a brand. I don’t think you can get like a decent brand that looks good for under $100 in DIX Sporting Goods. And a lot of the, there’s a lot of competition there. So they’re like, “Okay, we’re not going to go to Foot Locker. We’re going to go to RoomRack or whatever and, you know, buy sneakers that are a little older.” But it’s so competitive now and they’ve raised prices tremendously.

Frank Curzio 22:42

People are like, “You know what? I’m going to cut back a little bit. I mean, this is getting a little crazy.” And that’s what’s happening. So it puts in question the biggest part is they take over a Foot Locker, which investors hated when they announced it. And would they spend something like $2.4 billion on it and, you know, people didn’t like it. And now all of a sudden it was working. And you see that a lot. A lot of people don’t like, remember when Facebook and Zuckerberg bought Instagram? We talked about it a lot, right? And they almost like had his head in a platter for buying for $2 billion. It’s worth $600 billion now, right? Who cares? Good buying opportunity. They actually looked like Foot Locker was a great acquisition because they were coming out with their numbers the past couple of quarters and they looked really good. But now it puts in question the takeover of Foot Locker because Foot Locker itself, they lowered those comps from 2.5%, same store sales to 1% and expected to lose $80 million in 2027 on this, on this division.

Frank Curzio 23:36

So again, huge brand, paid $2.4 billion, 3,200 stores. Imagine having to restructure that business now. You know how hard it is to close certain stores underperforming stores? It’s not easy. So investors who hated this acquisition, now with this stock fall, they’re out of the stock and they’re not coming back. They’re pissed and they’re gone. And when you see a lot of these downgrades coming in, it just, it means that they were caught off guard. They’re really pissed off. Management has lost all credibility. It’s okay if your stock goes down, you miss a little bit. Some of the AI companies went down and, you know, they lowered their target price. They didn’t downgrade it. When you see this many downgrades, it means that they’re really pissed off at management. Management was not transparent going in. You had this really, you built up this quarter before, past couple of quarters saying, “This is great. Put in a six-month chart, Joe, or even year-to-date.” All right, look at that stock. It was $215 a couple of weeks ago and it’s now at $130.

Frank Curzio 24:31

Don’t bottom fish on this one. I think it’s very dangerous to bottom fish on this one. They have to get that credibility back. Salesforce now has got it back finally. Yes, you might say, “Well, I missed the, you know, a lot of the move.” Okay, but you avoided a massive downfall in that stock because management was telling you one thing and AI is great and he didn’t have that in the numbers. And, you know, we’ll see what happens. Again, you have 20% today on CRM going near its two-week high of $270, but this is a stock that was, what, $140 and beaten up for a while. So it’s nice to see this thing return and investors got what they wanted to see when it comes to Salesforce. This company is the opposite. You’re going to need to see something here for DIX Sporting Goods. You have to wait a quarter or two because they lost their mojo and this is their core business that’s coming down and you’re questioning that Foot Locker acquisition now.

Daniel Creech 25:18

Lost the mojo. Good Austin Power reference.

Frank Curzio 25:21

Yes.

Daniel Creech 25:22

To your point, the first question on the conference call was from Morgan Stanley and it says, “I guess the first question simply is what’s changed since we were sitting here 90 days ago and you were raising guidance and speaking very optimistically about both DIX and Foot Locker.” The reaction from the chairman says, “Thanks for the call and thanks for being so direct.” And then he shifts to DIX, same store sales growing in the past. That’s a deflection. That’s not good. They did zero to help themselves out here. This isn’t really in my wheelhouse or bag anyway. I won’t jump on them, but that was absolutely horrible.

Frank Curzio 25:54

Don’t ever, if you’re a CEO listening to this, someone who’s covering companies for 30 years, don’t ever, ever overpromise and then deliver, especially when it comes to stocks. You get wrecked. You get destroyed. Okay? Always come in conservative and people and analysts are going to know if you’re conservative. They cover your stock for a long time. They’re all right, these numbers are a little conservative. We think they’re going to beat them. And if you don’t, you still come in a little bit ahead and whatever. But when you’re like, you know, pedal to the metal, things are great. It’s awesome. It’s great. And these guys, you know, the analysts are listening, upgrading and also going into this, it’s a complete, I mean, that’s a massive, massive, uh, you know, guidance. I mean, you lower guidance tremendously, right? So, and not only that, you saw the quarter, okay, it’s all about the guidance. We tell you that in the quarter, last quarter, how to do the World Cup, inflating earnings, and then it’s gone.

Frank Curzio 26:42

You know, football is coming.

Daniel Creech 26:43

And tariff refunds.

Frank Curzio 26:44

Tariff refunds.

Daniel Creech 26:45

And if you’re a fan of this segment and you like this sector and these types of stocks, which I’m not bashing, but I would watch, they DIX management really blamed Europe, Middle East, and Africa. And they talked about how that’s not turning around near as fast as they thought it would. North America was supposed to do faster. So just follow some of those markets. But yeah, this is, this has zero buy interest.

Frank Curzio 27:03

And you’re not buying a cheap stock. This is still trading at 25 times total earnings, high than a market multiple that just lowered guidance tremendously. So, uh, yeah, I would definitely stay away from this one. Um, and even I think another brand that’s going to hurt these guys is Noble. So, um, which is, you know, MicroPoly’s brand, uh, old friend of mine who, uh, you know, Smart Water and sold two different brands, Coca-Cola, for billions and billions of dollars. And now one of the largest owners of racehorses, Renegade. We got the, on Saturday, huge Travers. It’s a rematch of Golden Tempo, which should be really cool. And Renegade, uh, first time I think they’re running together and that’s going to be maybe the last time both of those horses run. That’s going to be the Travers at Saratoga on Saturday. It should be really cool. Uh, but he has a partnership with Tom Brady that’s everywhere all over the internet, sneakers, athletic, and stuff like that. Again, things that are cutting into this DIX Sporting Goods.

Frank Curzio 27:51

When you walk in there, I mean, you know, the prices in DIX Sporting Goods, it’s very expensive. It’s very, very expensive. I know they have new line of everything in there, but everything’s very expensive and people are saying, “Hey, you know what? I got to cut back. Maybe I buy sneakers that came out like six months ago, a year ago at some other place and, uh, you know, I’ll save 30%.” That’s what’s happening. I don’t know if that’s going to change anytime soon, so stay away. Daniel Kreach. I love this question for you. Go over the Smith & Wesson because this is all you. Daniel, by the way, I told the story, if you’re not familiar, it’s, I now a proud gun owner. I never owned a gun. I was in New York, went to Florida, and then I had a subscriber come here and teach me how to shoot. Daniel came with me and had a, you know, six-foot target. I’m like, “Six feet, what’s this?” And I bought a Glock and, you know, you had the middle piece and, I mean, I wasn’t even close. I think I hit his shoulders.

Frank Curzio 28:38

I’m like, “What the hell is going on?” And Daniel just takes the gun, bang, bang, bang, all in the circle. I’m like, “Whoa.” So I love this question for you, Smith & Wesson. I put up a nice pedestal for you. So.

Daniel Creech 28:47

Yeah, thank you. Very kind of you. Yeah, Brian writes in and I’m not going to go over his full email, but he’s essentially asking, and I appreciate the way he said this. He says, “Listening to you since joining Curzio Research, I think you’re in better position to comment on this stock. That’s because I am a much bigger redneck than Frank.” I take that as a compliment, Brian. I appreciate it. He’s asking if Smith & Wesson, SWBI, thank you there, Joe, is in a good position to increase revenue and earnings now that suppressors, silencers, et cetera, for your guns are easier to get. Now, there’s still laws in there. If you anti-gunner’s out there, be careful and don’t get upset. You’re not just allowed to go in and get these things anywhere like regular firearms and such. So there is a process there. I know a lot of people that have been buying these. They are absolutely amazing. Frank, I don’t know if you’ve ever seen a silencer in person or anything, but they are a lord of fantasy.

Frank Curzio 29:36

There’s 42 states where civilian suppressor ownership is legal. There’s 42 states.

Daniel Creech 29:40

Yeah.

Frank Curzio 29:41

Is that right? Holy cow.

Daniel Creech 29:42

I know several people that have them. They are awesome and they work. Um, how do I say this? It’s like everything else. You know, you have different quality, you have different price points and such, but if you have one that is legit, yes, it’s going to cost you some, but the ability to cancel out the noise and stuff is absolutely incredible. Uh, makes everybody feel like John Wick or, you know, that’s what they want. Anyway, so Brian says he gives some great references here and essentially he’s asking if Smith & Wesson are going to increase or get a bump from all this. My short answer is yes, I think they can get a bump off of this. However, I would not run out and buy the stock just because of this. And here’s why. The biggest silencers, suppressions, and such are privately held companies. And just doing a little bit of research here. Now, can Schromer Uger, that’s also publicly traded, or SWBI do some acquisitions? They have partnerships, outdoors, sporting events, and stores can all sell these things.

Daniel Creech 30:39

Maybe they get a little bit of a bump here. The way I think about this is that I wouldn’t buy that stock simply for that reason because I don’t think that it’s going to be that big of an uptick to make its way down that entire chain. So if you have privately held companies really kicking butt here because they are manufacturing and making the products that are hot, I don’t think that those kind of increases are going to funnel down to necessarily Smith & Wesson and Schromer Uger. I could be wrong about that. I’m just giving you my off the cuff here. The other thing is the thing that I’m trying to wrap my head around in any stock, but this is a great example, is that if you pull up, so you have Smith & Wesson brands here and Joe, it doesn’t matter if you extend it out to a weekly chart or monthly chart, you’d probably have to hit five years on the CNBC. The only time this absolutely spikes is kind of similar to the gold thesis when crap hits the fan. And if you look at these long-term charts, you’ll notice if you could hit all, just show the, okay, so the biggest spike on this chart is what?

Daniel Creech 31:42

Right after 2020, right after what? COVID. When the government made you fear for your life and let craziness go. So everybody went out and bought a gun. That’s why this stock really jumped up there. And then what happens? Well, the more guns you give to people, the safer it gets, Frank. I’m waiting on emails for that. Stock sells back off. The issue here that I have is I don’t know what’s going to make companies or money flow into this stock. And what I mean by that is if you look at Finviz, and Joe, I don’t mean you don’t have to, but when you look at Finviz, they’ve done a great job on their homepage and you type in any stock, if you scroll down, it shows you the big funds that own this company. I’m still looking at Smith & Wesson. BlackRock is the big dog. They own everything. They own over 9%. Okay. Then you got Vanguard over owns about 4%. All the big dogs that you constantly hear own this stock. But what would make them buy a lot more? What’s going to get momentum into this name?

Daniel Creech 32:33

And outside of a huge influx and buying like you saw during COVID, I just don’t know what causes that. So my point is I don’t think that this is a rush in to get it because they’re about to see this surge because of these new rules and regulations. That being said, I think the best opportunity here, if you like this, and I’m a huge fan of the industry, you don’t get me wrong, shares outstanding have been declining for Smith & Wesson, which is good. Sales have been flat essentially the last couple of years, but management has been paying down debt. They are cash flow positive. They pay a dividend. They have an excellent business. It’s just in a niche business to where money is going to be cautious on flooding into that. That’s my biggest thing. Last thing here, I would look for acquisitions between one another or on the more private companies making accessories and such like that. Best thing here is buy this stock. It’s got a great business. It’ll generate internal returns that are solid.

Daniel Creech 33:28

And then I think it’s a matter of when, not if, Frank. This should be taken private by a private equity firm or those guys that know what they’re doing. I understand being public, access to credit, but these guys have such a strong balance sheet. They’re paying down debt. I think this is a no-brainer for going private at some point, but I wouldn’t buy it just for that. I’m trying to explain this is not really a trade. If you love this industry and you want a solid business, this is one of those though.

Frank Curzio 33:55

So Joe, do me a favor. Scroll down for Smith & Wesson. And this is what I like to see. Something that’s simple, you have to look into a little bit more. But when you’re looking at the P ratio, TTM means trailing 12 months. Don’t really care about that. I want to look forward, right? That’s what matters, the guidance. So the fact that that number is lower than the next 12 months is lower, that’s the forward PE, is lower than the trailing 12 months means that they’re growing earnings, right? Which means that that’s a good thing. So if you see those two numbers even, it means that they’re not really growing earnings, right? Which is not good. Now scroll up a little bit and put in year to date, Smith & Wesson.

Frank Curzio 34:33

Okay. So year to date you’re looking at a stock. It has come down, right? So it has come down. Uh, and as it’s coming down, their earnings are doing pretty well. So, you know, that to me, just again, you got to do more research and look under the hood a little bit more. But, you know, to see a company that is growing earnings, that stock, you know, it’s the P ratio, right? Price. So the price is coming down. Um, and you have to look at the earnings growth. But again, if it’s a silencer market, they do have like three different brands. They sell licenses under that the private companies that they sell the silencers under. But again, then I don’t know how big those brands are, how to look for it. But, you know, I think you’re right, Daniel. This is more of one of those companies where it’s like, what is it? Um, what’s a generator company?

Daniel Creech 35:14

Generac.

Frank Curzio 35:14

Generac. When you see like right before hurricane season, you expect a lot of hurricane. I mean, that stock moves dramatically, right? So this is something like going into midterms, what’s on the docket, you know, uh, which matters, right? And same with marijuana stocks and things like that. When you see, you know, is Florida going to finally approve it? No, the Sands is against marijuana, right? So, you know, if they approve it, that’s a very big deal. More states are going to approve it. You usually see these trends with this. I don’t know. It’s kind of like the sideways business that has pulled back, you know.

Daniel Creech 35:39

I’ll sum it up very easily to make everybody mad politically since we got midterms coming up. This is not a Republican Donald Trump stock. This is an oat moment when Democrats take power in two years. That’s when you want to buy this stock.

Frank Curzio 35:49

There you go.

Daniel Creech 35:50

If it doesn’t go private by then. Last thing to management, Frank, if I had a head on, I’d tip it. They had $80 million in debt at the end of fiscal year 2025, Frank. They are down to 20 million in debt now. That is a disciplined management team. And also, as briefing, and it can be wrong or change from time to time, but as a heads up, Smith & Wesson reports earnings next week, next Thursday, according to this. So hats on or heads on a swivel for that. Thanks, Brian.

Frank Curzio 36:15

Nice question, Brian. So, um, another Brian X, I goes, uh, Frank, do you think the data centers slow down due to politics will hurt the valuation of some AI companies like Meta, Nvidia, Google, Amazon, Microsoft? Uh, how can they grow without data centers? It’s, look, I think this is temporary, right? It’s just a midterm thing. And it turns out that everybody’s able to see this through polls in lots of states. This isn’t just Democrats. We saw it in New York. We’re seeing Texas as well. And it’s a battleground state right now. So, you know, when it comes to the Senate and the House. So a lot of them are saying, hey, you know what? We want more information on this. And whatever it is, if they say it’s because of climate change and environmental or whatever it is, it’s just so, hey, let’s halt this. This way we could say that and check that box in midterm elections. Uh, I talked to some of my sources, uh, who help build these data centers and they’re actually happy because they are booked just like Nvidia said, like, our growth will be 100% for the supply constraints.

Frank Curzio 37:14

They are, they just, they don’t have the capacity to take on new business right away and they just don’t have the workers either. So, you know, if you think about electricity, infrastructure, or whatever, I mean, that’s where you could make an absolute fortune. This is a trend that’s not going away anytime soon. Uh, you’re going to see massive jobs, uh, being created in this industry, which is great. But, you know, they’re like, hey, you know what? We could use a little bit of the break. I’m sure the CEOs of the companies want more and more, you know, in a long-term runway. Uh, but as of right now, they just, it’s amazing and incredible of how busy they are that they can’t really fill the orders and they’re trying to, and they obviously you got to take the money, but each data center buildout’s taking longer and longer. With that said, I mean, and I want to get to politics here because we always talk about, you know, the United States of America and democracy and, you know, it’s the best system around.

Frank Curzio 38:02

Look at our country compared to everyone else. I, where we’re going right now, democracy doesn’t work. And I’m being serious too. It doesn’t.

Daniel Creech 38:13

Let’s not have laughing. You don’t want to talk politics and then we get into that.

Frank Curzio 38:16

No, no, I’m serious because it’s a big deal because, and this pisses me off, you know, think about it. So we need to be ahead of everyone else when it comes to AI. That’s one of the biggest national security threats if China beats us in an AI race. I mean, think about electricity, think about in terms of defense, right? It’s unbelievable. I mean, you want to know how great technology is. I mean, Ukraine should have lost that war years ago. And, you know, look what they did to Russia with drones and stuff like that. Look what Iran, where, you know, we’re supposed to go in there and just take them out like in two seconds and look how long this is, right? So, you know, technology is a very big deal, but there’s not one American that would say it’s not important for America to win an AI race, right? Not one American would say it. It’s very, very important. However, does democracy really work? Because right now our politicians are saying that they don’t want to provide licenses for AI data centers within their states because they’re afraid of losing the reelection.

Frank Curzio 39:13

And this is mostly due to young voters who are becoming a bigger part, right, of the power. Since everything’s very close, the Senate races in the House, I mean, it could go either way. Yes, Democrats would like to get the House if you look on, you know, Cauchy or Polymarket and you have the Republicans pretty much in the lead for the Senate. But it’s a very big deal, right, of who controls the government and each branch. So you have these young voters saying, you know, and they have grown tremendously, tremendously in terms of their power and voting because it’s so close. Every little bit matters. They’re in enormous debt due to student loans. They’re watching AI take their jobs and like, F you and AI, we don’t want to see this happen. So if you think about it, does democracy really work? Because right now, as a nation, we need to be first in AI. Again, not one American would disagree with this, but yet all of our politicians who are running for reelection are doing what? They’re not allowing that to happen because they’re afraid they won’t get reelected.

Frank Curzio 40:07

And the Democrats and Republicans are afraid that they’re going to lose control of one of those branches of the government. So if you look at our democratic system, it’s more about our politicians getting reelected than doing the right thing or what’s in the best interest for America that protects us from probably the biggest threat to our national security. And that’s where we are right now where, you know, again, it’s never going to change because the people who make the laws, these are the people. The people who make the laws in politics aren’t going to say, okay, we’re going to lower term limits on ourselves. No, it’s all about them keeping their job. So the fact that we need AI, we need to be, we all know that as Americans, how important it is. And the only way we do is more data centers, right? More electricity billed. And the fact that they’re saying this, okay, we’re just going to temporarily do this because, you know, it’s a checkmark and, you know, we’ll get an extra few votes. You know, to me, it’s kind of ridiculous.

Frank Curzio 40:54

It pisses me off. I really think this is a huge issue though. I mean, you know, again, not so much, you know, stock-related AI data centers. I think, you know, temporarily you’re going to see Republicans say, no, it’s the worst thing ever. And as soon as, you know, the midterms are over, they’re going to go, you know, full force and say, okay, we want to build these things because they’re going to create lots of jobs. They’re going to create lots of revenue. Uh, you know, huge, right? And there’s no environmental concerns on these things at all. It’s amazing. But, you know, to me, when I look at everyone pulling back on states only because they want to get reelected, we’re not doing what’s the best interest of America, which means, does this form of government really work? Because you’re not doing what’s best for the country, you’re doing what’s best for yourself. And that’s not how democracy is supposed to be. It’s supposed to be people are there representing all of our people, not just a tiny subset of people that could determine whether you get reelected or not.

Frank Curzio 41:39

And, you know, just thinking about that AI centers and trying to hold that up while China’s pedal to the metal and you look at DeepSeek, which is basically a total, is what China’s great at doing, stealing all of our technology, right? Like everyone spent a shitload of money on it. We’re going to steal the shit. No one’s going to stop it ever. And then we’re like, DeepSeek is great. You can’t see it though. You can’t see it. And we’re starting to use DeepSeek within our systems too. I mean, it’s amazing, but because it’s cheaper, because they’re stealing everyone else’s technology that they spend all the money on, which is Anthropic OpenAI, they’re going to do forever. No one’s stopping them, no one will ever stop them. But just to have a country like that beat us in an AI race is so dangerous for our national security, which people, again, Americans take for granted. Believe me, they all take it for granted of the freedom just by some of the shit that they say and do all the time. I’d love to see that. That’s another reason why sometimes you wish it was this, you know, totalitarian government.

Frank Curzio 42:27

Imagine saying something or yelling at a cop in some of these places. Do that in Singapore. See what happens. Holy shit. But yeah, so I don’t think it’s going to impact these companies. A lot of the data centers are already built. These are for new ones, new plans. I think that changes early next year once the midterms are over.

Daniel Creech 42:44

I think that’s a good point. And, you know, I do think that there’s some political headwinds and I have been completely wrong on my timing and that such. So apologies there. I will admit I am a skeptical on this US-China AI race. I don’t know if we need to get into that today, but I’m a little skeptical on that. Obviously, I want to win. I think we should invest and do that. I just, I keep coming back to this. I’ve said this and kudos to Southern Power, SO is the ticker there, utility company, their CEO, as well as others. They come out, they need to tell the story. They need to tell voters and customers what they’re doing and why they’re doing. It is not the big boogeyman that is going to ruin the environment. I just, it’s, I love how you’re upset about democracy. I’m upset about people and how they fall for the same end of the world story every time. It’s, uh, I guess I’m kind of jealous that I don’t have that convincing power, Frank.

Frank Curzio 43:39

Yeah, yeah. Play on fears. Fears and greeds, two things that are going to sell and get people to pay attention. So let’s get to this last question here. This is from Bruce. I’m going to give you, now as I’m reading this question, Joe, you too, I want you to think if this person, Bruce, nice guy, actually owns a stock or not. He goes, Frank, you were praising Peter Thiel yesterday, and this is what, two weeks ago, I think he sent this to me. Uh, on Wall Street Unplugged, one of the greatest investors of all time. So why is Financial Bank cryptocurrency exchange bullish? Stock symbol BLSH that peaked at 118 over a year ago after the $37 IPO is now hovering in the $20 range. Peter Thiel’s name is not mentioned since it’s sustained annihilation. Nor is his bullish crypto exchange. He goes, maybe we will rebrand his investment, uh, and call it bullshit. What are your thoughts? And then he says, holding on from the beginning. So he’s down 46%. Uh, down 46%. Again, this is like a week ago, it was in the 20s and look where the stock is, 34.

Frank Curzio 44:39

Uh, listen, everybody has winners and losers, Bruce. And I feel you because you’re going to be, everyone, if you own the stock and it’s down, you’re going to be really, really pissed off. But, you know, when I look at Peter Thiel, Facebook, Palantir, PayPal, SpaceX, Stripe, I mean, you know, billionaire, this guy has gotten it right many, many more times, much more than everyone, almost anyone else you could possibly name, including Teppa, including Warren Buffett, right? I mean, all those guys had huge losers, like everybody’s going to have in this industry, and you’re highlighting one of his losers. But the one thing I’ll say about this, Peter Thiel, from what I saw, he still has this investment. This is a crypto exchange, global digital asset crypto exchange based on institutional advanced traders, kind of like interactive brokers for crypto. Now, not so much bullish as a piece of dog shit. It’s that the whole industry collapsed, right, in crypto. So anything related to crypto has gotten annihilated.

Frank Curzio 45:30

And now what’s happening, you’re seeing crypto and gold move higher. A lot has to do with best income and out. I think that’s a very, very big deal, manipulating, saying, hey, we’re going to buy more bonds, trying to get interest rates lower. We see the deficits going higher and higher. So that’s going to inflate Bitcoin, it’s going to inflate gold. We’re seeing that. And it’s probably going to continue because we’re not going to see, what is it, 40 trillion spending? Well, we were spending well over a trillion dollars just in interest. It’s going to be, you know, it’s more than that now, but it keeps going higher no matter who’s at the helm, what administration, we know for a fact, it’s going to go higher and higher. The thing that’s going to scare the shit out of you is we usually see national deficits go higher during a recession, less tax receipts coming in. We’re in a market that’s near its all-time highs. We’re in an economy where Trump’s like, the economy’s great. It’s awesome. It’s so awesome that when you see that kind of growth in the economy, it should amount to us paying down the deficit.

Frank Curzio 46:20

And it’s not. Our deficit continues to go higher, which is scary because what happens when we get into a recession? We’re going to see 50 trillion in debt. Nobody cares. Nobody cares until they have to care. Right now, you don’t have to care. We’re paying our bills. Everything’s good. But you’re seeing little cracks, especially since the Fed just saw pretty, besides PC reading last week, a couple days ago, saw that, hey, inflation’s moderating, so we’re not going to have to raise rates on the low level of the Fed funds rate. But look where long-term rates are going. They’re saying, F you. They’re going higher and higher and higher, right? So we are not able to control that. Besim’s trying to manipulate the market, which you will only see that.

Daniel Creech 46:53

Signal, Frank. He’s signaling to the market.

Frank Curzio 46:55

You only see that, right, when you have a catastrophe. You don’t see that in a bull market, which is different. It’s different this time. We said that two weeks ago. Thank you. Who was it? John, who was it? Who wrote the op-ed that just said the same thing like a couple days ago? It was saying like two weeks ago.

Daniel Creech 47:10

Drunken Miller.

Frank Curzio 47:10

What happened? Yeah. We said the same thing. The Fed usually doesn’t step in unless they have to. And the fact they have to should raise some red flags for you. But my point to this here, Bruce, is that bullish is down because of the whole entire industry. All right? So not that someone gets a pass, but if gold crashes 30, 40%, you own a gold stock, you’re going to get another gold stock no matter if Jesus Christ is the CEO. Doesn’t matter. Doesn’t matter who the CEO is, right? If you own industry shit, that’s what’s going to happen. So when I look at this stock, I’m glad. I think if you had to resend that email, because I think it was like 22, 23, it’s 33 now. So you’re probably happier. I know you’re not down as much, which is good. But Peter Thiel is still the greatest investor in the world, I think. You know, next to Tepper. And this guy just has a knack of going in very early companies, putting a stamp on it, and helping out those management teams and understanding how to scale a business, not just to get to, you know, 20 million, 100 million, to get to that billion dollars instead of the billion dollar market cap.

Frank Curzio 48:08

He understands that. It’s a different skill set. There’s entrepreneurs that could start companies and they sell them at 100 million, 200 million, 300 million. I’ve seen it. I’ve seen people make so much money, but they sell them to the big guys and the big guys take it to the next level. They have everything in place. They have distribution, everything, right? The right sales teams, everything, massive. This is a company that I think is very, very good. Fundamentals are good. The platform’s good. And if crypto does continue to go higher, especially Bitcoin continues to go higher, this thing is going to take off. So I would definitely hold onto it because I do see crypto and Bitcoin going higher as well as gold. And that’s going to be bullish for bullish. You like what I did there, right?

Daniel Creech 48:46

No, I like that.

Frank Curzio 48:47

That’s terrible.

Daniel Creech 48:48

Also, Thiel probably still holds this because his cost basis is probably like 50 cents or something.

Frank Curzio 48:53

Yeah. I mean, yeah, he was very early in it. So the fact they still hold it is good.

Daniel Creech 48:57

I like that email. That guy’s got a good sense of humor.

Frank Curzio 48:59

Yeah, Bruce. Listen, we always hope, I’d rather be wrong and see you make money if I don’t own the stock. And I hope this thing, it’s nice to see this thing, you know, come back a lot for you. And just a quick thing I want to say here, and this is to you, Bruce. I’m talking to you personally because I’ve been there and done this, right? I don’t sound like I know everything. It’s because I made mistakes. When you’re at the point where you’re going to send an email and you’re pissed off on a stock, or where you’re so pissed off on something where it’s like, I’m done, I can’t believe it anymore, that’s usually the biggest buy-sim good. It’s usually the biggest, when you’re ready to, it’s called puking. When you’re ready to puke and be like, oh my God, this shit, and you’re so pissed off, it usually turns out like that’s near the low. I did a wrap when it went down to a dollar, I bought it, I sold it, you know, those shares above 180, 190, and it went over two. Now it’s pulled back. They raised money. But when I get to the point where I’m really pissed off at something where it comes down to a level where it’s just, I’m almost done now, especially the last three, four years, and doing it for such a long time, I’m usually, you know, go against my feelings and everything that’s happening, and pretty much I’ll go ahead and buy the stock.

Frank Curzio 49:59

So just as you sent that email, I knew you owned it as soon as you sent it before I read the last line. It’s great to see that it’s up like a week and a half after you emailed. This is really, really cool. And I think it’s going to go higher for you. So that’s awesome.

Daniel Creech 50:11

I like that email. It was good.

Frank Curzio 50:12

Yeah, it was good. All right. I think that’s it for some of our questions. I don’t know if Dan you had anything else, but keep them coming in, guys. You know, frank@curzioresearch.com, for some reason, askcurzio.com does not work. We still get it to my email address, Daniel, your email address?

Daniel Creech 50:28

daniel@curzioresearch.com.

Frank Curzio 50:29

I love when you say it. I know, but I just love when Daniel says it. So remember, this Thursday podcast for you. It’s all Q&A. So keep those questions coming in. Lots of questions. We had, you know, Salesforce, we had CrowdStrike with a good number. We had Hewlett Packard, not so good. So yeah, if you own any of those stocks, you want us to look at them and take a look at anything, just, yeah, give us a shout. That’s what we’re here for. Q&A, we go in depth. We let you know everything. No bias or anything and unfiltered. And we like to have a lot of fun on this one. So this is Thursday podcast for you guys. So definitely the Q&A is working. It’s awesome. And thank you so much for listening. Have a great weekend. College football starts this weekend. This weekend, you guys see really ramp up during the week, but this weekend, college football, and then we have pro football coming. But the biggest event of this weekend, Daniel, is.

Daniel Creech 51:15

PGA Tour Championship.

Frank Curzio 51:16

The Tour Championship should be a lot of fun. So guys, enjoy the weekend and we’ll see you on the other side. Take care.

Announcer 51:21

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.