Here’s the transcript for this week’s episode of The Cody Willard Show.
You can watch this week’s full episode on Facebook here or on YouTube here.
The Cody Willard Show is my once weekly 45-50 minute live show that you can find on Facebook, YouTube, Twitch TV, Periscope, Twitter and elsewhere. We also publish it each week in podcast form on iTunes, Soundcloud and Stitcher. And we send out a transcript of each show exclusively to Trading With Cody subscribers.
But first, a couple links, and updates and a flash back:
The Cody Willard Show is already going global, being quoted and imbedded in German press (translated):
“Former hedge fund manager Cody Willard expects the Facebook stock to be traded in the $ 150 to $ 180 range for the foreseeable future. ‘I think it could take a year until Facebook sees new all-time highs again,’ said the 45-year-old onlookers on his web TV show The Cody Willard Show.”
FB is still up 300%+ since this particular MarketWatch article I wrote recommending it in 2013. I also wrote about why I was trying to bet against SPEX — it was at $25 (wait, no, it’s actually a split-adjusted $200!) when I wrote this article and now it is indeed BELOW $5 — at $1, down 96% (wait, no, it’s actually down 99%!) just like I’d warned. In general, please don’t invest in penny stocks.
Now, onto the transcript…
Speaker 1: Coming up on The Cody Willard Show: the Trump administration’s attempt at $100 billion in tax cuts, Facebook raising red flags over the midterm elections, and the outlook for Twitter, Netflix, and other high-flying tech stocks. The Cody Willard Show is brought to you by, tradingwithcody.com.
Cody Willard: How many times did we say Cody in the beginning? What was that movie that Eddie Murphy did … Harlem Nights, I think it was, with … He was executive producer, director, producer, starring, writer. At the end of the movie, it was like 20 names of Eddie Murphy’s name in a row.
Cody Willard: Speaking of names, Chris McHugh, my executive producer, here to join me as always. Thanks so much for being here, Chris.
Chris McHugh: Of course, my friend. What do we got today? Trump administration officials are floating the idea that President Trump could go around Congress and cut taxes on his own. The goal would be to adjust taxes on capital gains for inflation. The goal is $100 billion in tax cuts.
Chris McHugh: What say you, Cody?
Cody Willard: Look, number one, I guess it’s not technically Trump that’s going to try to bypass Congress, it’s the treasury department under Trump’s administration, which, I get, okay, so it’s all the same thing. So, yes.
Cody Willard: Let’s just step back. Capital gains taxes is what happens when you own something, typically for a while, and it goes up a bunch. So, if you bought something. Here are the people that are trying to sell this to you as a main street working class tax cut, they’ll say, “Well, people who bought something at 10,000 and are selling it at 50,000 won’t have to pay as much in taxes,” because typically, what you would do is you’d take the 10,000 from the 50,000; therefore you have 40,000 in profits and that’s what you pay taxes on. What you paid versus what you sold it for.
Cody Willard: So, the problem is, that’s not really who this is gonna be about. It’s not a $10,000-60,000 investment, this is going to help multimillionaires, hundred-millionaires, billionaires, and especially giant corporations who invest into something for 10 million dollars and sell it for 100 million or a billion dollars. And what they’re going to do is …
Cody Willard: What this balloon was floated is trying to do, what they say they wanna do is, add inflation costs to what your actual price was so that … The logic being, that if inflation was 10% per year and you asset went up 10% per year, you’re actually no better off.
Cody Willard: The problem with all of this is that who’s measuring inflation? Where are those numbers gonna come from? You’re gonna end up with two government measurements of inflation. One will be the official … What they’re measuring, ISM, and looking at the economic numbers and what the actual price is paid for producers, for consumers, are. And they’re gonna try to keep that number is low as possible as they measure it, and they’ll do as many exemptions and tricks to measuring that stuff to keep those numbers low to tell everybody that, look, inflation is low.
Cody Willard: But on the other hand, they’re going to have a different inflation number that they will use for capital gains taxes for corporations and billionaires. So, what this is is, yet again, a targeted tax trick for wealthy people. Now, before we pretend that the democrats would be any better, it’s incredible, the hypocrisy, to listen to any democrat sit up there today and talk about this being yet another give-away to giant corporations and welfare when every single bill that Pelosi or Obama or anyone has ever passed has exactly been a giveaway to giant corporations and the wealthy.
Cody Willard: The democrats have never done anything for poor people or the middle class either, it’s all been targeted tax tricks for wealthy and giant corporations. Obama Care was a giveaway to giant healthcare corporations. I’ve got a simple solution for all of this. Look, if you, republicans and democrats, the republican-democrat regime, want to do targeted tax cuts, you have to simultaneously cut subsidies and welfare programs for that same sector.
Cody Willard: So, if you’re gonna cut taxes for people who have lots of capital gains and lots of wealth, and billionaires and giant corporations, you have to cut just as much port subsidies, targeted welfare for those same sectors, if you’re gonna give them a tax cut.
Cody Willard: The further you give subsidies and welfare to these giant corporations and billionaires, and simultaneously cut their tax obligations, you’re going to gut out the middle class in rural America. And that’s exactly what’s been happening for a long time. I think I’ve been going on this for way to long.
Cody Willard: The final question is this, if none of this has to go through Congress anymore, then are we already stepping towards a complete dictatorship because is one administration going to be able to decide what the tax code is? Is that what our country is supposed to be about?
Cody Willard: Chris, back to you.
Chris McHugh: Alright, Cody. So, it’s really interesting, as you open the paper, if you will, every morning. Or, in this day and age, look at websites on your phone or your computer, and see what’s above the fold as they used to say in the newspaper business, what their highlighting. So, we took a screenshot of Fox, CNN, MSNBC, Reuters, and the AP. And let’s take a look.
Chris McHugh: This morning, if you woke up around 9 AM EST, what you would be seeing on those sites. So, here we got AP.
Cody Willard: Pope charges death penalty teaching …
Cody Willard: He changes the death penalty teaching. It is now inadmissible. I don’t even know how you would interpret that headline. Maybe they’re trying to get you to click through and actually read what it says, cause that headline is completely garbled. But let’s see what the next headline is.
Chris McHugh: Here we got Reuters next.
Cody Willard: Reuters, a ride with Lakota to make treaty anniversary. A ride with the Lakota to mark treaty anniversary. That’s an interesting headline, not something mainstream. I don’t think any other mainstream news is gonna have that as their lead article. Great picture too. That’s beautiful.
Chris McHugh: And as we move over to the left, we have MSNBC.
Cody Willard: Let’s left … Don’t you try to spring things left and right. We can call it “so-called” left, cause the MSNBC, CNN, democrat side of the republican-democrat regime propaganda machine is certainly not left. I just talked about it. It is very, very right compared to what liberal … What the hell? I don’t know. None of this liberal left/right stuff makes any sense.
Cody Willard: Here’s a headline. Mueller’s prosecutors may saves Gates for 2nd Manafort Trial. Oh! So we’re going … Let’s distract ourselves with Manafort and all of this stuff. I don’t know. Kids are starving and people are being shot. Next headline.
Chris McHugh: Before we move on to that, Cody, just look at the difference in the layout on MSNBC’s page, which looks, to me at least, like a complete mess. I don’t know what’s going on. And then you go all the way over here to CNN, which I can actually tell what the [crosstalk 00:07:59]. Yeah, yeah, Here we go. We’re back to the Pope saying, “Death penalty. No, bad.”
Cody Willard: Let’s … I’ll just hit this very controversial topic. I am always, 100%, against violence and death, whether it’s administered by the state or individuals, or corporations, or private armies or militias or anything else. We have seen way, way too many documentaries on Netflix and elsewhere exposing how many times there’s prosecutorial bad actors sending innocent people to death or jail for life. We should never kill someone, because we could be wrong.
Chris McHugh: Okay. And here’s what we got. Last up here. This is Fox News Channel.
Cody Willard: The perceived right. The so-called right. The so-called Conservative. Is that what I’m supposed to believe? Anyway. Yes, they are certainly hitting… Look, it’s gonna be a Trump headline most of the time on Fox News, and a pro-Trump headline most of the time on Fox News, just like on CNN and MSNBC it’s gonna be an anti-Trump headline.
Cody Willard: Chris, it’s amazing to look at these headlines. Every day that I look … I read, all day every day. I read news, books, everything I can get my hands on. And I read the New York Times and then I’ll switch over to the New York Post. That gets me perceived left and perceived right. And then, I’ll go over to the Washington Post and I’ll go over to Fox News. And again, I’ll just try to see how the propaganda from the democrat-liberal media is framing stuff and how the propaganda from the conservative-right-republican side of media is framing things, and you just highlighted it right there.
Chris McHugh: And when I worked in TV News, we would subscribe to Reuters and AP news wires. And I always thought, though, the most concise, quick, read where I could get my arms around it was probably the Associated Press. And now I just put Reuters and AP apps on my phone. So, as the weeks go on, it’s gonna be interesting to see how they frame things.
Chris McHugh: And these are, for people that don’t know, your local TV station or any TV network is gonna subscribe to those. And they’re basically rewriting that content. So, a lot of times, they’re the originators of the content. It’s interesting, analyzing what the Associated Press is dishing out.
Cody Willard: Great point, Chris. And I don’t read the Associated Press and Reuters daily. I’ll hit CNBC, the Wall Street Journal, and just headlines from Yahoo or Google, and those, you’ll see Reuters and AP. I’ll start paying more attention to those two. That’ll be interesting. We’ll see how propagandic they are too.
Chris McHugh: That’s your bathroom reading for the week then, Cody. Alright, so Facebook, as lots of people know, is heightening those concerns about election interference, now saying that it’s uncovered sophisticated efforts possibly linked to Russia to manipulate US politics in the upcoming midterm elections. Can we get a break, Cody?
Cody Willard: I’ll give you a break. And I thank you so much for doing the …
Chris McHugh: Snare marks.
Cody Willard: Parenthesis, wait, quotations around sophisticated, cause the first point that I can’t fathom is how hard is it to tell that these are spam, fake, accounts that are putting this stuff up there? I get five to ten friend requests per day on my Facebook account. And I would bet 60-80% of them, at any given week, are fake accounts. And they’re clear!
Cody Willard: I’ll click on it if I have any question at all, just to make sure, and just … When was it? Last night, there was a friend request. It was a woman. It wasn’t all busty, 22-year old selfie looking thing. I wondered, though, if it might be a Wall Street kinda marketing thing. But I clicked on it and I was wrong, it was actually a fake account from some … I don’t even know what nationality it was, but it was a girl trying to get people …Not even a girl. It was a fake girl’s Facebook page, trying to get people like me to click on it, like all this stuff. It’s so obvious that that is fake!
Cody Willard: I don’t know what’s wrong with Facebook. It’s so easy.
Chris McHugh: And I know I’m a middle guy, so I don’t even fall for it. There’s no way I know anybody that attractive and that young. So, I just skip right over it.
Cody Willard: It’s astounding to me that they’re gonna call it sophisticated. This is not sophisticated stuff, and if Facebook’s got supposedly tens of thousands of people working on this … I could personally wipe out a thousand fake Facebook accounts a day. Now, get to the fact that these fake accounts are actually propagandizing and trying to get people to be all racially inflamed, trying to get racist tensions flamed. I don’t even … It’s anti-abolish ICE, or it was pro-abolish ICE. Or are we supposed to be abolishing ICE? All of this stuff.
Cody Willard: But if you look on the people that are putting that fake stuff up, it’s clearly not real people. Piper and I are not putting stuff up. My wife gets so much good stuff outta Facebook. There is beautiful stuff on Facebook. My wife will post videos of my daughter, of Amaris, and me and my buddy Rod, that I work with in this office here, playing piano and singing. And it’s terrible footage, but look how cute that is! And you can see Amaris looking back at Rod, and we’re singing Buddy Holly every day.
Cody Willard: See? He played a note for us there.
Cody Willard: Beautiful stuff. And that stuff is one Facebook. You can find beautiful stuff on Facebook. My wife uses Facebook for [inaudible 00:14:09] support groups. She gets so much out of being part of a community that my daughter, there, that you just saw, my daughter Amaris has a genetic disorder called Trisomy 13. And my wife is in these groups and she’ll spend so much time interacting, working with these groups, getting them to … Oh. Getting them involved and having support.
Cody Willard: And here’s one. [inaudible 00:14:34], my daughter has a g-tube. She eats through a gastro-tube. We feed her blenderized food. And my wife learns this stuff, and our lives are better because of some of the stuff we get out of Facebook.
Cody Willard: But yes, there’s so much evil and so much bad stuff on Facebook. But I put it to you guys, are you that dumb? Are you that dumb that you can’t tell the difference?
Chris McHugh: Here’s the thing, Russia was trying to meddle with the elections by getting people to talk at each other and have debate. Isn’t that democracy? Aren’t they just making us do what we already do so well? What was the end game there?
Cody Willard: That’s an interesting way to flip it, Chris, cause it is almost like, what’s the down side of them stimulating conversation? What the downside is, is that that’s not real people stimulating the conversation. And again, it’s sort of like what you get when you want cable new media, or even just network news, reading the newspaper, any corporate news outlet is framing the topics in ways that are probably not helpful or real but they’re probably loaded in some slanted, biased take that they’re wanting you to look at the world through that lens.
Cody Willard: And that’s the same thing. I don’t wanna look through the world in the lens that Russian propaganda-Mafia-KGB-Putins are trying to make me perceive the world as some place that’s all about this stuff. I mean, we certainly need to talk about it but not in the way that Russia is framing it.
Chris McHugh: Now on deck, we got a new segment. Alright, you guys have heard of Star Wars but maybe not Turkish Star Wars. The new segment we got here is Cory Turner and he’s gonna tell us why you should watch this so-bad-it’s-good flick, in his Amazingly Bad Movie Reviews.
Cory Turner: This is Cory Turner, and welcome to Cory Turner’s Amazingly Bad Movie Reviews. Looking for an early 80’s, foreign, science fiction, Star Wars knock off? Instead of a knock off, how about one that just stole footage and scenes directly from Star Wars? Then Dunyayi Kurtaran Adam is just the movie for you.
Cory Turner: Nailed the name. Only fourteen takes. Now, translated, the title is The Man Who Saved the World. Or, better known as, The Turkish Star Wars. This movie may have stolen Star Wars footage of X-Wing fighters, the Millennium Falcon, and the attack on the Death Star, but it sure didn’t steal it’s storyline.
Cory Turner: This plot follows our two pilot heroes as they fight against an evil wizard and his comical host of minions to save the world. Mummies, skeletons, Sasquatches, and robots are no match for our heroes, who trained heavily for this mission.
Cory Turner: They can take on Darth Vader with those classy leg weights. If you’re ready to bust a couple of ribs laughing, check out this cult classic.
Speaker 1: A former CNBC and Fox News anchor, hedge fund manager, and the go-to stock market guest for the tonight show, Cody Willard and his stock analysis have been published in the Financial Times, The Wall Street Journal, Fortune Magazine, and many other places. Wanna follow his secrets to investment success? Go to tradingwithcody.com.
Speaker 1: There, you can get analysis on stocks, cryptos, markets, and the economy, a full list of Cody’s positions, access to Cody’s chat room, trade alerts every time Cody buys or sells, and much more.
Speaker 1: To find out more, go to tradingwithcody.com. The Cody Willard Show.
Chris McHugh: High flying tech stocks have been hit for 20-30% in the last week or so, what are your thoughts on the markets in general and tech stocks specifically now?
Cody Willard: So, my Trading with Cody subscribers have know that for the last year, several months, certainly since the beginning of this year. I have been increasingly cautious on the stock market. I’ve been trimming, raising cash, preaching caution, and just the data points we’ve collected in the last week, really does underscore what I see as a battlefield environment for stocks that has me continuing to … Not necessarily favor cash, but certainly to have more cash on the sheets today than I did six months ago or two years ago.
Cody Willard: On the one hand, Google and Amazon, and last night, Apple, blowing people’s minds. Tesla, blowing people’s minds with how good their earnings reports were, their guidance was, how well the companies are actually performing.
Cody Willard: On the other hand, Twitter, Facebook, blowing people’s minds with how bad their quarterly reports and guidance were. On the one hand, you had a GDP growth rate, economic growth is 4.1% according to the republican-democrat regime data points and how they massaged them and reported them to you. On the other hand, there’s a lot of industrial companies out there warning that inflation is really starting to spike, and aluminum prices, steel prices, those tariffs are hitting the infrastructure costs of this world, of this country.
Cody Willard: On the one hand, you’ve got the [inaudible 00:20:14] up 10%, plus, on the year, near all-time highs. On the other hand, the Shanghai index, China’s stock market, down more than 15% and down 40% from it’s all-time highs in 2015.
Cody Willard: On the one hand, the great trade war of the 21st century is escalating. On the other hand, the global economy is creating of new middle class consumers and workings, and the tech revolutions, like the app revolution, the smartphone revolution, robotics revolution, driverless revolution, they are creating hidden productivity and consumption factors. Access to capital in this world has never been better cause we can move I’s and 1’s and 0’s all around the world and call it money.
Cody Willard: That’s what I think. It’s a battlefield out there, guys. So, look, it’s not the bubble blowing bull market is probably over. It’s not like you should sell everything and freak out and go to cash, but I can’t find many stocks I wanna buy at this particular moment. There are some, but not many.
Chris McHugh: You will see on the left side of your screen, we have a brand new segment here on the Cody Willard Show. So let’s get out the rye bread mustard, Grandma! It’s time for Ross the Boss.
Ross the Boss: Hey everybody! I’m Ross the Boss, and I wanna talk sports with you, cowboy. Thank you for having me. The big story right now in sports, which we can’t get away from, is Urban Meyer. Urban Meyer was the coach of the Ohio State Buckeyes. He no longer is. They put him on administration leave because of all the allegations going on with his assistant coach that beat his wife up and the wife of the coach, his name is Zach Smith, and his wife’s name is Courtney Smith. And, long story short, she sent pictures of the abuse to Coach Urban three years ago. Supposedly, nothing happened.
Ross the Boss: Urban kinda didn’t do anything about it. All of a sudden, these allegations are coming out now, again, and the same coach was arrested in 2009 for domestic abuse and nothing happened. So, he fired this coach last week. And now, all of a sudden, it’s coming out that Urban knew about what was going on the whole time. And the school’s not happy about it. Again, it goes beyond football. We’re talking about human lives here.
Cody Willard: Ross?
Ross the Boss: Yes?
Cody Willard: And that’s exactly it. I just sorta glanced at some of those reports this morning and it looked like Urban had players on his team who were stalking and/or raping and/or burglarizing and committing crimes, and he’s suspend them for like two games or something. And none of this was being reported. If this is as endemic as I think it is, I’m so cynical about college sports and these millionaire coaches not paying their players and 18 year old workers not being paid for what they’re actually doing. The whole thing is corrupt.
Cody Willard: I can’t imagine that any major division-one football program is any better than what we just found out from Ohio State.
Ross the Boss: Yeah, the whole this is, we’re talking about this woman who had no place to go, I’m talking about the assistant coach’s wife. She had pictures she sent to Urban’s wife, nothing happened. She’s alone on an island. Everyone protects the coach of the Ohio State Buckeyes. I mean, I feel bad for her. Again, they’re still investigating. I don’t wanna say all this stuff is true. Where there’s smoke, there’s fire, as we know, Cody.
Cody Willard: Ross, let me think, is this the tip of the iceberg? Are we gonna find out that dozens, if not most major division-one football programs are guilty of these same kinda things?
Cody Willard: I know when I played division-one basketball at the Lobo’s. We had players who were caught burglarizing and committing crimes, and they were suspended maybe for … They couldn’t start the next game or something. [crosstalk 00:24:19]
Ross the Boss: Do we remember the FBI probe they had last year with the University of Arizona, University of Kentucky, University of Louisville? They were doing this big FBI sting. And we heard about it, they had video, they had tapes of people exchanging money. And then it kinda disappeared. Nothing happened. The NCA stepped away. No one did anything. I still haven’t heard about it. Nobody is fired. Nobody is suspended. Everyone’s going to the tournament. No one cares.
Ross the Boss: So, I think they want ratings, they want money. It’s all about money, Cody. It’s not about anything else. It’s money.
Cody Willard: Always follow the money, the corruption … If it’s other people’s money, and these division-one programs, Alabama, Ohio State, they are funded with tax dollars. You either need to separate that from those teams or you need to make them completely private. And by the way, the same thing with the professional sports teams getting their free stadiums. Why are public dollars supporting billionaires?
Ross the Boss: Let’s talk about pro-footballers. Pro football starts tonight. Tonight is the first game, NBC hall of fame game, Bears versus the Ravens. It’s gonna be in Canyon, Ohio. You’ll probably see your favorite player maybe play one series and that’s it. It’ll be a bunch of third and fourth screen players playing. Again, I’m an expert gambler. I give picks. I don’t get them myself, but I go on these huge winning streaks. I did it last basketball season.
Cody Willard: Who’s gonna win tonight?
Ross the Boss: I looked at both rosters. I looked at the third and fourth strains, and I like the Bears team better. So I’m taking the Bears tonight, plus the 2 and a half points. We’ll see what happens, but again…
Cody Willard: Bears plus two and a half.
Ross the Boss: Yeah.
Cody Willard: Piper, make note. We gotta call our local bookie.
Ross the Boss: And talking about gambling, the odds came out for the Superbowl. The New England Patriots are 6 to 1 to win it. They’re the favorites. The Rams are 10 to 1. The team I like, the New Orleans Saints, I love their running game, I love their quarterback, I love their defense. They’re 18 to 1. [inaudible 00:26:16], Piper, and make that bet. I’m excited about football season, it’s one of my favorite sports to follow.
Cody Willard: What are the odds on the Saints, do you know?
Ross the Boss: 18 to 1.
Cody Willard: 18 to 1. I didn’t hear if you said that part. So, that’s … I mean, it sucks to run for, they’re not exactly long shots. I guess that puts them right in the middle of the pack, I guess, cause there’s 30 teams.
Ross the Boss: Yeah, there’s other teams who are 100 to 1, but the Rams are up there. They’d also like the Eagles to repeat. The Eagles are 10 to 1. But, again, the team I like, if you’re going to Vegas in the next month and you gotta make a bet who wins the Superbowl, I think the best odds and the best team to bet are the Saints.
Ross the Boss: And what’s a sports segment without talking about Lebron James, right Cody? We have to talk about Lebron.
Cody Willard: [crosstalk 00:27:05]
Ross the Boss: Every time I do a sports show, I do Lebron. So, my favorite story about Lebron this week, he started a school In Akron, Ohio called I Promise School. And basically, what it is, he pays for everything. He pays for the kids bike to ride to school. He pays for the helmet. He pays for the uniform. He pays for the lunch and breakfast. He even gives the kids groceries for the families if they can’t afford it.
Ross the Boss: He even finds a job for the parents if they’re not working. And if the kid graduates from this school, Cody, he pays four years education at the University of Akron, so the kid can go to college. Everything is paid for in this school. I never heard of somebody doing this in my life. I have a whole new respect for Lebron James. I never was a big fan of him- You got the idea, yeah. What?
Cody Willard: Who was the point guard for the Phoenix Suns who then became the Sacramento Mayor? He was on my show a few times.
Ross the Boss: Kevin Johnson, University of California.
Cody Willard: Mr. Johnson… WHat’s the first name again?
Ross the Boss: Kevin Johnson.
Cody Willard: Kevin! Yeah. He used to wear Air Jordan’s. I had a picture cut out from a Sports Illustrated, his rookie season, wearing Air Jordan’s. He had a great vertical jump. Point being, he also, he and his wife pretend that they’re doing all this stuff for public schools, for private schools and the charter schools. Meanwhile, all it is in their case has been scamming the tax payer and taking money out of public schools and putting it into their charter so that they can pay themselves and the cronies hundreds of thousands, if not millions, of dollars.
Cody Willard: Is there, do you know, any public funding, tax payer dollars, going in to help Lebron do this?
Ross the Boss: You know, they showed the school. The school is elaborate. It looks like the Sistine Chapel. It’s a beautiful school.
Cody Willard: I saw those pictures. Marble staircases.
Ross the Boss: Yeah, I don’t know the public funding on it. I can’t speak for Lebron. I can’t speak for the state of Ohio, but all I know is he’s doing something that’s really never been done. I love the whole program. I love how he’s basically just taking his money and making kids’ dreams come true.
Ross the Boss: I mean, this is bringing it back to the community. Know what I mean? Even LA now, he’s in my area.
Cody Willard: I truly hope it’s his money–
Cody Willard: I truly hope it’s mostly his money, but I will say, if they are using, if the republican-democrat regime people in office, in Cleveland and in Ohio, are choosing to use tax payer dollars to help those kids at that school, that’s something I’m okay with, at least in concept.
Cody Willard: I just don’t want anyone making millions of dollars in the name of charter schools off of tax payer money. That’s not accurate of privatization [crosstalk 00:29:50]
Ross the Boss: All of my team will investigate that. I have a staff here that will do that and I’ll have the answer for you next week.
Ross the Boss: Really quick, Carmelo Anthony, he was traded to Atlanta Hawks a week ago. They waived him yesterday. He got paid, listen to this, five days work on the Atlanta Hawks. He was working hard for five days during the off season. They had to pay him out 25 million dollars so that he can be a free agent. So, he was an Atlanta Hawk for five days and he made 25 million. Anthony Davis, Quinn Leonard, a bunch of major stars won’t even make that next season. This guy made 25 million in five days for the Hawks, which is unbelievable.
Cody Willard: Ross, 5 million dollars in five days, that’s basically–
Ross the Boss: But 25! 25 million.
Cody Willard: Five million dollars a day for five days is almost exactly what, I guarantee you can get by subscribing with tradingwithcody.com. Go to tradingwithcody.com. You’re gonna make five million dollar per day for five days straight!
Ross the Boss: [crosstalk 00:30:46]
Cody Willard: And I’m kidding. You cannot. There is no easy money unless your name is Carmelo Anthony.
Ross the Boss: Talking about money, Woods, Tiger Woods is gonna play Phil Nicholson in a one-on-one competition in Las Vegas either November 23-24, winner take 10 million dollars. The winner gets 10 million.
Cody Willard: Brilliant! Pay-per-view cage battle.
Ross the Boss: I don’t think pay-per-view, I don’t know where it’s gonna be. I don’t know who gets the TV.
Cody Willard: I’ll bet you right now, Ross. That’s a pay-per-view.
Ross the Boss: I don’t know if I would pay a dollar to watch that.
Cody Willard: And I love that idea. Ross, who’s gonna win?
Ross the Boss: I’d say, Vegas has Tiger winning. I went to Arizona State, Phil Nicholson went to Arizona State. He’s left-handed, I’m left-handed. Ross the Boss will take Phil Nicholson. You heard it first.
Cody Willard: That is the worst reason ever! That’s like buying a stock because the stock ticker is ROSS. Oh wait, by the way, if you bought ROSS, the stock, Ross Stores, it would be up ten … Wait, 1000% in the last ten years.
Ross the Boss: Thank you! Thank you! Thank you!
Cody Willard: Just listen to Ross and buy all things Ross.
Ross the Boss: Ross the Boss, you can’t go wrong. I’m never wrong. I’m always right.
Cody Willard: Thank you. I love you. It’s so good to see you. Ross is a partner, friend of mine, for many years, former Tonight Show, all star producer.
Cody Willard: Chris.
Chris McHugh: Okay. Alright, so we got questions. We got Cody’s Mail Bag coming up here. And the first question we got, Cody, is why am I reading articles regarding the impending death of the FANG for high-performing technology stocks when Apple, Google, and Amazon posted excellent numbers but Facebook fumbled the ball? Seems okay to me.
Cody Willard: Lets not whistle past any graveyards. Actually, I’m never actually sure. I told my Trading with Cody subscribers yesterday when I wrote that about this question.
Cody Willard: I don’t know when that analogy ever works. I think it applies here. And the point is, don’t be complacent. I agree that, look, it’s not like the whole bubble blowing bull market has had it’s bell rung … It’s ring belled.
Cody Willard: It’s not like the whole bubble blowing bull market has had it’s … Bell rung, thanks Piper. It’s not like all of sudden, there’s the top, ding ding ding, let’s sell everything… And those articles aren’t necessarily saying that. But we also need to be aware that valuations in the market are through the roof in the last five years. So many middling, not revolutionary, just decent technology or consumer goods or defense companies, stocks, are up 300 or 500%. They’ve doubled or tripled, at least.
Cody Willard: So many companies trading at 5 to 100 billion dollar market caps are trading at 10 times or 12 times sales, revenues, not earnings. Buy a company at 10 or 12 times earnings, you can argue is, cheap depending on it’s growth rate.
Cody Willard: Buying a company at 10 or 12 times sales, it’s tough to argue that that is a cheap stock. Apple, by the way, trading at like 4 times sales. So, I just wanna be aware that stocks can turn and go down and start pricing in bad times. They can start having their valuations clipped, the stock multiples can come down even if earnings continue to grow. I bubble blowing bull market isn’t guaranteed, even if the fundamentals and earnings of these companies continue to grow very quickly like they have been for the last five years.
Cody Willard: So, I’ve owned Facebook since 20. I’ve owned since it was at a dollar, March 2003. I’ve owned Google since the day it came public at 45. And I still own them, but I’ve trimmed some of all of them. And I own Amazon. But I’ve trimmed it. I think you might just not want to be as aggressive right now as you have been. And I don’t wanna be complacent. I don’t wanna just whistle past any graveyards and think that stocks always go up just because earnings and fundamentals are good.
Chris McHugh: Alright, Cody. The next one we got here, they’re asking if you have any interest in a hardware producer for 5G, somewhat along the lines of Nokia or Ericsson. And they go on to say, I doubt you have lots of love for Huawei but the other two, after missteps are down a bunch, Verizon will benefit domestically and producers, hopefully, globally.
Cody Willard: Alright, so, that question is addressing something I’ve talked about over the past couple of shows, and my Trading with Cody subscribers, excuse me, know well. I’m invested in Verizon. And it’s mostly because I think they are the best way to invest in 5G in the United States. They have more cash, more access to capital, and better infrastructure, and are more focused on building 5G than any other competitors, T-Mobile, Sprint, or AT&T.
Cody Willard: The question is about, can you buy the suppliers, the companies that are selling that equipment, to Verizon? Like, the companies, really, these days, like everything else have been consolidated down to just two or three competitors cause the republican-democrat regime doesn’t enforce anti-trust law.
Cody Willard: But the two competitors in this case are Ericsson and Nokia. There is Huawei and a couple other Chinese or Asian companies that are in there selling 5G equipment. There’s lots of smaller players out there that sell into 5G in some fashion. But I don’t like Verizon and Nokia. They still have so much legacy business and so much legacy debt. Their balance sheets are terrible.
Cody Willard: I don’t even know if they’ll have the profit margins on 5G or the size of orders, the average selling price for each of the orders of the equipment that they sell for 5G versus what they did for LTE and 4G and wireless in the past here.
Cody Willard: So, I stick with Verizon as a 5G play, and I avoid Ericsson and Lucent. Just kidding.
Chris McHugh: Alright, Cody. Well, all the questions have been answered, Ross the Boss has spoke.
Cody Willard: Thank you all for watching. [inaudible 00:37:37]
Speaker 1: A former CNBC and Fox News anchor, hedge fund manager, and the go-to stock market guest for the tonight show, Cody Willard and his stock analysis have been published in the Financial Times, The Wall Street Journal, Fortune Magazine, and many other places. Wanna follow his secrets to investment success? Go to tradingwithcody.com.
Speaker 1: There, you can get analysis on stocks, cryptos, markets, and the economy, a full list of Cody’s positions, access to Cody’s chat room, trade alerts every time Cody buys or sells, and much more.
Speaker 1: To find out more, go to tradingwithcody.com.
