TDI Podcast: Trump’s Circle (#978)

23:23There is a huge difference because when we saw at dot-com, this stock started going up, and if you look at the profits right before 2000 started going down. Okay, so these companies were just going up in price and they didn't have the earnings, right? These companies have an explosion in earnings because of the amount of money that's being spent on AI and it's real money. Okay, maybe that dries up one day, but companies are spending, right? So you're looking at$700 billion is being spent by the five largest hyperscalers. And this is in 2026, like the next 12 months. Which to put that in perspective, in January 2025, it was massive growth.

23:58They thought it was going to be 235 billion, right? So that's how much they're spending. That money, your job as investors to see where does that money filter down to because it's real money. You can look at Oracle and say, wow, they've got to raise money in debt, and you have Google raising money in stock along with NVIDIA, whatever. But that money has to flow down to certain companies. Now, when you see the P-E ratio to price to earnings, the price could go up tremendously. And then if earnings aren't going up, maybe you have a company like SpaceX where you think it has a huge moat, and this is what could happen in five, ten years, just like Tesla.

24:28It's different with these companies. For example, if I have to ask you, and if you want to guess, you don't have to, but what do you think Micron? Micron is up 900%, I think, this year. It's unbelievable. Where do you think the PE ratio is? I think, well, the – The forward PE. The forward PE is different than the trailing PE. The trailing PE is like 40s or something like that, 50s or some crazy number. The forward PE matters more, and I'll tell you why. No, no, I get that. And that's based on estimates. But, yes, I agree with you 100 % because that's what investors look at, right? Like what's going to be the growth and all that?

24:55I think it's – what is it? It's under 30? It's 11 times. It's 11 times. 11? That's all because these things were kind of in the cyclical department. Now, the reason why there's a change in these industries and why they're re-rating is because it's no longer a cyclical industry. And you know that because – and I remember when it was a cyclical industry, right? This was all commoditized business. One guy came out with Intel, AMD. It was kind of all the same. Now they have 75 % margins on their chips. It's insane. But what makes it non-cyclical? Now it makes it a secular market is because you have these big guys signing three - to five-year contracts guaranteed pricing.

25:27And when you need storage, memory, and there's none there, now you have incredible pricing power. And now that's why you have Microsoft and all these companies and Google and all hyperscales and Amazon saying, hey, we need to lock in three, four, five years. And now they have a runway. If you look at Oracle and they call them, you know, remaining performance obligation, which is a backlog basically. I mean, it grew 450%. And I think what happened with Oracle, when it went to 300, people forgot, wait, this isn't a software company anymore. they actually have to build these data centers. So they're going to have to raise money and it got crushed.

25:59They still have that massive backlog of money that's coming in, right? So when you see this three to four to five years - The promises of the money coming in, right? We have the promises of OpenAI, for example, three,$400 billion over time, which they haven't been profitable yet, but they're going to have a - IPO. IPO. So therefore, just pick your number of what the value is going to be and they can then fund whatever they need to fund by maybe even selling shares, et cetera, and the hope for the fact that they're going to actually have this kind of revenue in three, four, five years. I get it, Frank.

26:33I get it. But do we also agree that there's a limitation of how far this goes to a degree? There is definitely a limitation of how far it goes. Now, where will you see it? Where will you see it show up first? You're going to see it show up in Taiwan Semiconductor. They are the first. That's the leading indicator because people book the orders there and then they build the chips and then they send them to NVIDIA and every place else. record orders, massive date, supply constraints, right? So you're not seeing it there. We have a lot of contacts just like you do. You've been doing this podcast as long as I have.

26:59How many years? 16, 17 years now? That's like 17. Right? I think it started maybe a month after you, two months after you. You're the goat. So, but it's, you know, it's, when I'm looking at, you know, where these companies are, where these companies are trading now, to me, it's, you know, like you say, it was a commoditized business, but there's just, you're going to see it show up in Taiwan Semi. You're going to see it show up in different areas in terms of the spending, in terms of every quarter that these companies are raising their CapEx, right? So you're going to see it in certain areas before it actually comes out.

27:33So when can it stop? Well, it'll stop when you see, not delays, because we have delays. We can go into AI and delays and stuff because I think there's a lot of money to be made on that. But when this money slows down, you're going to be able to see it in certain spots. Taiwan Semi is definitely a way you could see it. I was going to say that the LSB Trader thought when it came to having that podcast for 17 years. I have great contacts. You have great contacts in a network. I know a lot of people that work in data centers that help build them for the hyperscalers. And they, you know, fortunately email me.

27:59We've made massive, massive money because of the shortages that they told me about in stocks. And they say that demand is off the charts. They can't fulfill their orders. They don't have enough labor, shortage supplies. So you're going to see it show up in different areas and different companies, kind of like when you saw it show up. What was the company? It wasn't just Countrywide. before that was Morgan Stanley's fund blew up before the credit crisis, right? That was like 2000, early 2007, right? And people were like, you know, it didn't really hit until later 2007. It was like nine month warning that two or three companies said, hey, we're going out of business, subprime loan companies.

28:33You're going to see it happen. There's ways, right now you're not seeing it. And when you do, believe me, I'll flip in a second, but every single source that I have, which are great sources, the money's still flowing. You need massive demand and there's massive delays to get these gigawatts. That's a big problem. No, no, that's clear. But I just, I find it really amazing the amount of money that's being pushed into these. That's all I'm saying. Like, you know, like you said in Micron, you know, I mean, we're talking about every single day it's up something. I mean, you know, you look at - As long as - We own a bunch of these, by the way, and I'm happy as a clam, right?

29:01You know what? As long as the E is going up. I mean, your price could go up. I arguably, you could argue that Micron is cheaper today at 900 % than it was six months ago, maybe three years ago, because it's not just the price that's going up. Earnings are going up much more than the price. And that's what happened to NVIDIA. NVIDIA is trading at this astronomical valuation, but then all of a sudden, what was it, like two and a half years ago, three years ago, they were probably the greatest quarter I've ever seen in my life. I was like, whoa. And then now you see the earnings. So as long as the E is going up, if the E slows, and that's what you saw at Broadcom, that's what I got nailed, because they said, well, maybe Google is not going to start, is going to do their chips in-house and not use their technology anymore for chips.

29:40Yeah, that was a one-off. But once you see that earnings slow, that E is not being raised and not raising guidance, look out. But we keep seeing that. And for now, that trend is intact. And it will end one day. Don't get me wrong. But right now, there's nothing that I see. There's no evidence that anyone has presented me that I saw to tell me that the spending is going to slow anytime soon. So, you know, you do a lot of emphasis on, which we just talked about, right? The boots on the ground research. Are you seeing anything right now that is kind of out there that Wall Street's missing? I think Wall Street is really missing the power story.

30:15You're talking about the requirement for data centers to run and the juice that's required to cool and turn the lights on and compute. Yeah, we're going to see blackouts pretty soon. Blackouts where? Where are we having blackouts? I mean, we're going to see blackouts in some states. There's just not enough power. And the summertime is here. Good point. And the summertime is here. You're going to see that. And it's just a matter of math, right? And when I look at these models, and that's what our job is to do. We want to look at the status quo. We want to look at the estimates. We want to look at the consensus and see what they're wrong.

30:49Because that's what the market trades on is where the consensus is really. They're predicting, I think, 100 megawatts of power to come online by 2030. What we need, I think it's 200. It's more like 200. What the models are forecasting for are large language models, which require a lot more power. Argentic AI requires probably about 15x more power. And we're not even talking about robotics, which is the next step. And that's coming close. That's going to be close. So now you have massive delays because of shortages, but there's no delays in AI spend. So you're seeing this rapid push where we need more power for AI.

31:21You see all the new models coming out. I mean, look at the models that have come out with Google and Alphabet, which increased its market cap by over a trillion, right? Because Gemini - By the way, the surprise of the AI move, in my opinion. Oh, me too. I thought they were dead in the water, right? And look, credit to them of how they transitioned, right? And then you see, look at, you know, who's going public with Claude, Anthropic, and all coding. I mean, look what it did to software. Look what it's doing to all these, you know, just it's remarkable of what Claude could do. It's every place, right?

31:52And we're using it as well for AI for our business. But to see how fast these models are changing, how much they're moving, and just we're scratching the surface of agentic AI. where there'll be people predicting like hundreds of millions. There'll be billions of bots. People are using thousands of them for sales, for everything that you would normally do. You'd do it great. You went and ran on my podcast and just went, you know, did a Siri thing and was able to book your trip for you, right? Two seconds. I mean, and that's like light years. That's like light years technology in this right now.

32:18So the power that we need and the requirements is still there. We need a massive amount of power, right? But now you're seeing delays. 60 % of the projects are delayed, which means what? Where's the opportunity here? The opportunity is who has the current power And there's a lot of Bitcoin miners that are changing because Bitcoin mining is not a sustainable business model. It's not a scalable business, meaning that you have to pay more in order for you to generate more money. You have to buy more power, more electricity, the best chips, right, in order for you to produce, right? So it's not a scalable business.

32:48Now they got lucky. We're sitting on this massive power that the biggest hyperscalers in the world will pay hundreds of billions of dollars for immediately. So now they're transferring what's called tier one Bitcoin mining to tier three and transitioning. And the companies that made the transition is DigiPower, DGXX. You know, we have this on the books, I think, at$1.67. I have a friend. I'll tell you offline a story about that. It's very interesting. Vivo is another one. Because that one's a recent power company. Vivo is a recent power company. They just came out with their recent presentation.

33:15They have more power. They have about three times the amount of power is DGXX. Iron is another one. I wouldn't go with Mara. Probably the worst. Mara was the old Bitcoin miner. Yeah. I mean. But what about some of the other guys? some of the SMRs. Do you like those guys? The SMRs I'm a little worried about because they do not have technology that's scalable yet. But what we saw early on is the company that did have it was Bloom Energy. And we recommended that in the 20s and that was a thousand percent winner for us. And we closed out that position near, I think 280, 290 because they could scale, right?

33:50Where these other companies, they're based on, hey, this is going to happen. The SMR technology is not here. It's here for, you know, everybody always tells me, Well, it's in submarines and stuff. I'm talking about the portable power, right, that you could scale. Hey, Frank, can you bring over your nuclear reactor for me, please? I've got to plug something in. It's not there yet. But I think uranium is a great, great play here because uranium stocks have fallen and uranium prices have stayed up. You're going to need uranium. You're going to need one sector that I've always hated in my whole life.

34:20Wait, don't say another word. I'm going to take a break right here. When we come back, Frank's going to tell us about his. Everybody's coming back. What? What? What? I want to tell you about interactive brokers. You know, you can trade your portfolio with the power of prediction market probabilities. With interactive brokers, trade prediction markets on election, climate, and economic outcomes. Right alongside stocks, options, and bonds. Prediction market prices reflect probability. And correct predictions receive$1 per contract, plus earn interest on your position. Of course, prediction markets are not suitable for all investors.

34:52Visit ibkr.com slash predictions. That's IBKR.com slash predictions. Interactive Brokers, great company. Frank, what do you hate? Tell me. The sector that I've hated all my life is alternative energy. Because when you have something that needs to be subsidized, I was never on board with it, right? And I've seen good trading options. I'm not telling you how to trade it, but a sustainable business is where you buy and hold forever. Look, when you need the sun to be out, you need the wind to be out for that energy to work, it's not 24-7 baseload. Uh, however, a lot has changed in the solar industry because what these companies need, and just to put this in perspective, Microsoft signed a deal to open a three mile Island, which won't be open for another five years.

35:37That's assuming you're going to get state local approval, federal approval, and they bought electricity out, I think 20 years after. So that doesn't tell you the dire need for these guys for electricity that there it is. Right. So reopening a plant that was closed. what's happened with solar, the battery storage component of solar, that is now hugely economical, hugely better than gas turbine when it comes to power and portable power. And what you need is the peak hours is the toughest because it's 24 seven when you look at AI and they're worried about peak time and it keep, you still have this massive demand.

36:13It's increasing, increasing. So what do we do during the peak hours? Okay, let's get portable stuff that we just come off the grid and help the grid out, right? Kind of like a simple explanation. When you're looking at companies, there's two companies, not the solar panel companies. I'm not talking about those. We know that a lot of funding got cut, but the ones that have the battery storage, Scholz is a company that's$10. That's SHLS. Next Tracker, NXT is another one. These companies are printing money. I wouldn't be surprised if they buy back their stock. You're getting them at a really good discount here.

36:42You know, we're in and we'll probably put 30, 40 % on them. I think these companies skyrocket because it's providing something that you have this massive amount of money that wants to pour into anything that they can get energy. And these guys have the technology, the portable technology. It's exactly, exactly what the hyperscalers are in dire need of. And that's one of the areas that I didn't like at all. And those are the two companies I really like. Is this a backdoor conversation to the rare earths, which you brought up earlier? No, I think it's totally separate. I think, you know, rare earths is more about, look, we just, we probably use the billion drones.

37:18I might be exaggerating there, who knows, but look at all the tech. They got to replenish this, especially in the US, right? I mean, think of how much that we spent in terms of our military and how much that we've used in terms of drones, right? So we're looking at rare earths. We know, especially tungsten and all these rare earths, and we know the China story. Now there's a big push where we don't have – we really don't have the right geography for it where we could produce that here, and it's an incredible dirty process. but we are signing deals with other areas. U.S. rare earths is one that, you know, the government came into.

37:53You know, there's other ones with tungsten that I'm probably going to be working with in the marketing consulting part of our company, which is really, really exploding right now. It's fantastic. And this company is just putting themselves together and they're part of the Trump circle as well, where we need rare earths. We're in dire need of them, right? And we don't want to rely on China because that's one of the things. So, you know, companies like that, that I'm looking at, I think, when it comes to rare earths and, you know, what is the government supporting? because when the government supports, especially that industry, it's the worst industry because it's so cost intensive.

38:21But more importantly, the delays and the permitting and all this crap, right? So when you have the government, our government coming in and taking a stake or saying, hey, we're going to support you guys. Now it opens a door to private capital to come in because now they can say, okay, this is going to fast track these projects and build them really quicker. And believe me, a lot of these stocks will take off once that happens. That's what happened with Intel. Is that part of maybe the animal spirits that we're seeing right now? because literally every time we see a little bit of a dip, it's like, okay, let's go in.

38:49Or even, even, I'll tell you the other side, is even when we see it move higher, everybody's like, okay, let's go in. You know, there's a lot of animal spirits right now. Do you think that this is because that so much of this is going to be backed by government, fast track, no red tape, and everybody's kind of, it's bleeding over into all this other stuff? Because, you know, when we started the, before, before 2026, forget about the war. I don't even want to talk about the war. I'm not even talking about it because it's pissing me off.

39:19But before that, we saw actually a lot of these companies taking a bit of a hit. And you saw Microsoft get whacked, Google got whacked. All these companies got whacked for a minute there. Everybody's like, well, we're not sure where that's going, how much is going to be. And then all of a sudden, like money further exploded. It was already exploding anyway, what was going into this. But it exploded even further. And then it seemed like with the government coming into the rare earths, into the intels, into the other companies, You know, and then the threats or the discussions of, hey, you know what, maybe we'll get involved in that.

39:47Do you think that's helping to backstop and then create further animal spirits? Like, you know what, the government's going to be involved here. If they're going to be talking about the markets all the time, let's just go. We're going to do it. I don't think that's the backstop of the market. I really don't. I sold a lot of stocks about a month and a half ago and, you know, worried that, you know, we were pricing in three months ago, you know, rate cuts. And the market was pricing that in. And I don't think we're going to get a rate hike. I know it's the percentage that say we're going to get a rate hike.

40:16I think it's just, you know, the new Fed, whatever, just trying to, you could talk it up and get your results. You're right, right, right. So, so next, I mean, if you look a year from now, okay, IRAM, you know, the world of IRAM, what tariffs is going to come down. We're seeing other things roll over. I mean, housing's really rolling over. No one's talking about it. I mean, houses are on sale for a very long time, and we used to have an inventory problem. And actually, we have some of the highest level. We just talked about this on DHM Plug this week. We have the highest level of sellers retracting, coming off the market, 7%, 8 % in certain areas in, we'll call it, not the Midwest, but the Southwest, right?

40:48The Southwest, California, 7.8%, 7.8 % to 8.5 % of sellers that are saying, you know what? This isn't selling. We're taking it off the market. Taking it off the market. Which will actually increase prices potentially because there's less supply out there. But it also talks about the frustration of what's happening. So, yeah, continue on. But that's a big issue. That's the thing. We had a supply problem, right? There's not enough inventory. Now you look at the home builders, there's inventory in the market now. And you're seeing those prices come down now because there is inventory in the markets.

41:19And it's not just the interest rate. I mean, you can't move sideways if you bought a house six, seven years ago, right? Say if you live in New York, California, like I want to move to Florida. I want to go to Texas, right? and whatever it is, whatever your politics are. But say if you have a house, just hypothetically a million dollars, and you have a mortgage on it, and you want to move – you can't buy a million-dollar house. Your mortgage was 3.1, 3.3, and now it's going to be 6.5%. You throw in electricity prices. And the taxes. And the tax increases. The taxes. It's not just tax increases, but insurance, insurance, and then oil and energy and everything is – people just – it's just completely unaffordable, right?

41:54I mean, if I was to literally move next door, right? My house, let's assume it's the same house, right? If I was literally to sell my house and move next door, I'd have like a 25 % increase in overall cost. That's such a great example. Right? That's such a great, like I always say, if you move from here to here, but even if you move next door to your house. Yes, exactly. And that's - Or if I sell my house and buy it back, it's just going to be the same situation, right? Even the same situation. Now I'm going to have higher taxes. I'm going to have higher costs overall. I'm going to have higher mortgage.

42:20If I had a mortgage, you know, it's just, it's a problem. And that's the one thing that scares me because we need rates to come lower and they're not going to come low where inflation is right now. And, you know, we have projection where inflation will come down a year from now, but it's still very, very high. It's, you know, highest levels. We got a footprint on it, right? So, you know, in CPI. So it's, you know, we thought we were done with this and we know a lot of it's from the war now that, you know, it's opened up the strait depending on what day we're looking at this. But and it could change, right?

42:49Don't get me started. It's just crazy. But anyway, you want to see inflation come down. The job market's good. Yes, we have massive inflation. The reason why the market is up with this inflation is because we've seen wages grow alongside. So people are making more money while their costs are increasing for now. But now you're seeing wage growth starting to slow. And that has me nervous because I don't think the market's really pricing in higher interest rates for another 12 months. And that's going to remove the housing catalyst. That's going to remove – you look at technology. We see interest rates high in borrowing costs.

43:19I mean these companies aren't even going to the debt market anymore. I mean, Google went and raised money through stock. So did NVIDIA, which makes sense. I mean, they were able to raise it at the exact same price, right? $85 billion. I mean, to put that in perspective, we just saw the largest IPO in history, and that was less than what Google just raised in terms of the money that they raised. I think they raised$75 billion, SpaceX. But I think NVIDIA— Google raised$85 billion. Well, it was$75 billion. SpaceX was$75 billion with a$10 billion green shoe. And then—but didn't NVIDIA just raise$20 billion through debt?

43:48NVIDIA, too, through stock. So you're looking at these companies. but okay. Oh, no, it might've been debt for NVIDIA. I know. I think NVIDIA was 20 billion debt. It was like, okay, thank you. We snapped that up. That's very nice. Like 20 billion. 20 billion, like nothing. I mean, these, it's, it's, what is it? You know, 4 trillion, whatever the market cap is now. It's, it's, it's unbelievable when you see these companies that what's going to move the needle for them. And that's why they're going all in on AI. It's, you know, you're looking at some of these guys are forming, you know, $20 billion businesses that don't move the needle for them.

44:18That's incredible, right? When you think about it. I agree. That's a sheer size of it. Is the boogeyman under the bed, the monster under the bed for you, the housing issue? Is there something that's kind of, you know, perking you up that there's something out there that's a concern? Are you just thinking like most people, by the way, that every concern just gets washed over? The concern for me is that the lack of positive catalysts. We do have government spending. We're going to get tax checks. Of course, we're going to get tax checks probably a month and a half before the elections, right? That's what's planned.

44:47And that's going to be nice. That's going to give people, you know, a little shot in the arm of the economy. We'll get those, you know, for midterm elections, of course. You know, so we have the government that's always going to spend. We have that catalyst. We have a massive amount of money from AI that's still going to be spent. So those are catalysts. The thing is, we need interest rates. Right now, earnings are supporting our valuation. We have probably 21 times forward earnings we're trading at S &P 500. We're growing earnings by 20%. So you can't argue that we're an expensive market because our market was more expensive pretty much the past five years than it is now.

45:17when you factor in growth. Like, I mean, you and I talk about this all the time, Andrew, when it comes to earnings. I mean, earnings are growing 20%. Which is unbelievable, by the way. And then - And you have sales at 10%, 12%, which is the highest since 2022, right? So it, you know, these guys aren't just cutting costs and using, they're seeing their sales, their productivity is increasing tremendously. We're seeing some, I mean, listen, Meta and several other companies, several, many other companies are actually leaning out, right? They're thinning out and nobody's blaming AI because you can't blame AI because you blame AI.

45:49It's a problem. God forbid you say something like that, you can't. The fact of the matter is that AI is part of the deal. I can tell you that AI for our company, it's like we just increased productivity X times due to the fact that just a small amount, small amount of AI that's used for things like, you know, grammatical review, assistance in writing, you know, things about, for example, Today, we have a client portfolio that we redid, right? He's like, you know, I think I want to change my risk profiles. So we did that. Usually I have to go, okay, look, we reduced this, we increased this, you know, the way we did this, right?

46:26You know what I did? I cut and pasted this huge spreadsheet, just grabbed it, like literally just grabbed it, right? And I said, do me a favor. Tell me what the differentials are. Tell me what we increased, what we decreased, sector by sector, an individual name through the change of the model, and make it into an email that I can send to a client. Clip, paste. It's done. Like literally that would take me an hour and a half, two hours, somebody in my office to do just, you know, to kind of put that together. It took 30 seconds. A bigger example is you really not going to need your Bloomberg terminal pretty soon.

46:57I mean, we use capital IQ. I'm canceling it. It was 30 ,000. Then I paid 22. I don't need it anymore because everything I can get on. If you think about what these systems are, what do they do? It's not like they're analyzing for you. What they're doing is they're pulling data. That's very hard to get in 10 K's and 10 Q's and past data and give you consensus estimates and everything. And literally you could get that through AI now, right? So they just, it's a bunch of a million APIs that they say, and you say, give me all the Walmart suppliers that are publicly traded companies, right? Which would take you a year to find, right?

47:26And capital IQ would do that in two seconds on a screen. AI could do that two seconds on a screen. So I used to pay$30 ,000 for capital IQ and that's an alternative to Bloomberg. I think you used Bloomberg. I mean - We use a variety of things. Why charge on it? Have you seen those stocks? But wait, wait, wait, Frank, I have a question. That's because there's cost effective right now. Now, are these companies, once they get this thing locked and loaded, are they going to start doing the whole, you know, the token cost factor? Because, I mean, we're paying for what? For a co-pilot,$30 per seat,$30 a month for ChatGPT, clawed nothing at this moment.

48:01ChatGPT,$20,$25 a month. Is that going to be like, no, that was the teaser. You know, now that we've hooked you. That was a streaming teaser. It's going to be cheaper for everybody. Maybe. Maybe. And streaming is a fortune. But I think people are going to – what you're seeing now is separation where it's open AI and Anthropic. I mean, Anthropic has really taken a lead. Gemini has taken a lead, right, where Microsoft is hurting. You're seeing – I want to kill my Microsoft guy, the co-pilot guy. When I talk to him on my phone, I'm like, literally, I could be arrested for some kind of AI abuse. I'm like, yeah, it's bad meta too.

48:47And you're seeing the separation. I'm not saying that, you know, even NVIDIA, I mean, when you have, you know, it's up so high. There's just so much underneath that underneath these levels where it comes to, you know, some of these Bitcoin miners who are making the transition, not saying they are who made it already, who are getting contracts. DGXX just got a contract. Vivo said, hey, we just interviewed, you know, a bunch of hyperscalers for our power. Iron's another one that signed contracts. Right. So it's one thing that if you say you're going to do, it's another thing to do it and get a contract.

49:12That means it's validated. I will say we go back to some of these informational providers. Have you seen the stock prices for Faxet, IT, which is - Oh, terrible. Awful. I mean, it's Accenture. Accenture had the biggest drop they had ever last week. 2017 levels. So if you want to know if these guys are going to get it right, we saw it software companies that got annihilated, and now they've come back. They're still well off their highs. They're starting to figure it out a little bit. They don't have pricing power. They're going to lose that huge premium they had to the market because they don't have massive pricing power.

49:43But this industry, if you look at those stocks, they continue to fall rapidly and they're losing business. They haven't found a bottom yet, which means you can't go in there and say, wow, look how cheap this is. They haven't figured it out. You have to get a quarter under your belt where, hey, this is better. And then another quarter, which we saw some of these software companies are getting impacted. I mean, facts at Accenture. I mean, all these companies that used to just pull data and provide reports for you. I mean, all that could be done through AI almost for free now or a membership for a couple hundred dollars.

50:11By the way, let me tell you a great AI, relatively inexpensive. You know, briefing.com, I love it. I love it. I use it. I still use briefing.com, yeah. Have you seen the AI component? Yeah, and it generates. It's not as good as their bullets that they put out, but it says AI. No, no, it's great, but if you want to look at, hey, do me a favor, just give me some of the past, blah, blah, blah, blah, blah. It gives you nice tables. It's very, it's like, okay. Very, you know, why is this stock moving today? As opposed to me going to look for it all the way down, it gives you a whole bunch of information.

50:43It's just right there. And they needed to do that because that's another informational provider that's pulling information from all these sources that are giving it. So anybody that's that middleman that's pulling stuff, any middleman, good luck. Man, you better figure out a different business model because AI is coming for you. Right. So let me close with this question for you and ask this.

51:06where is the easy money? Well, we talked a little bit about this, but where's the easy money over the next 12 months? I mean, is it going to be your power? Is it going to be your chip plays? Is it going to be, like you mentioned, uranium coming back and that's needed? And by the way, the uranium, which is interesting about the uranium, and I'm not talking to you uranium bugs out there because we've got the gold bugs, we've got the uranium bugs, you know what I'm talking about, right? But what's interesting is if, in fact, Microsoft is signing a deal with a three mile and you see Turkey point and you see all these other ones and the potential for SMR to come online, all that stuff is all uranium, right?

51:45So those are long-term plays with potential, right? There's always going to be a spark right now. If the idea is going to be that somewhere in the future, it's going to happen. So I think that the long-term play of there is reasonable. The long-term play is reasonable, but remember, it's all about pricing, right? Cause right now, if you're buying chip stocks, they're pricing in this huge demand for AI, right? If you're buying anything within the infrastructure data since they're pricing in. Uranium right now, if you look at a company like UEC, it's from my buddy Amir Adnani, who's great, he ran this company for 15, 17 years.

52:13This is a company that was trading at 20, it's now at 12. So when I look at the pricing and you still have the demand curve of saying, hey, we need power and we can't get it. And uranium's a very easy source of them to get it. And now you have Goldman Sachs raising money for UEC and a big partner with them. And they're part of the Trump circle as well, a lot of these uranium companies. not that they have a stake in the company, but the laws are opening up for uranium, right? In the United States where, hey, let's have stockpiles and stuff like that, where when I see the pricing of where it is, that determines of what I like.

52:43And when I'm seeing what happens to uranium, it's down so much. I think it's a very low risk, very high reward place to be in the market right now because the stocks are down. So, you know, it depends. Like you said, I love Google when Google is getting hammered, right? That's what I recommend, we're up 180 % on it. I wouldn't tell you to buy, you know, NVIDIA might be a little bit better now. Now it's come off its highs, but you know, you want to make sure you're getting it at a good price and you're not just closing your eyes. And, and, you know, that's worked for a little while, but filtering down to Bitcoin miners, I think who are making that transition are good.

53:11And also there's a lot of small caps and we'll work with a couple of companies here, like, you know, like like telescope innovations or blue energies where these companies are able to use AI now and, and build out and these smaller companies where it's very hard to get capital or it's very hard to get good teams. AI is helping them tremendously. And that's, I really believe that's why you've seen small caps outperform the entire market for the first time in a very, very long time where these companies are so efficient. They were so bad and out of favor that they cut costs for the past two or three years.

53:40Now they're sitting there lean, and now they've figured out, okay, how could we grow being this lean? And you're seeing these companies put up the earnings. So I really like some of these small caps. One of the best things and one of the best setups is companies that are actually having problems that cut the fat. They really go through a reorg, management change to a potential, looking at what they're doing from a holistic standpoint. And all of a sudden they become in favor, their sector, their product and all that. And then they're just like printing bucks, right? I love that setup. And when do you see that?

54:07There's two key indicators. I would say one is wait for the quarter to come out. And all of a sudden you're like, whoa, these guys figured it out, right? And you might wait another quarter. So what? You miss a 30 % move higher. These things, some down 60%. But the other thing is, are you seeing insider buying? And you see insider buyings on some of these things because they're like, wow, we're about to explode. And when you see insider buys, and I'm not talking about from 13Fs. I'm talking about like the CEOs or the CFOs, like decent insider buys. These guys are not buying for a month or two. They see a trend over the next couple of years that they're buying their stock.

54:39They're cheap. And those are two indicators that I like to look at instead of just going in there blindly and saying, wow, this company could be good now. It's down. They cut costs. Those are two indicators I like. One quarter of, wow, this is good, and turn business around and some insider buying. Sure. All right. Before we finish, because I want to get some time for this. There's a big announcement that you made last week, Frank. And to be honest with you, I have no idea what it is. I'm telling you right now. I'm not lying. I mean, because you wrote me like, hey, something big's happened. And I literally don't know what it is.

55:07So you're talking to me directly now. I want to know what Curzio Alpha is. So we're trying to, I've been doing this for 30 years and a newsletter industry lost its way, right? It's more about they become part of the system. Like my dad did this 25 years ago, Andrew. It was, you know, they looked at guys even like you and me because, you know, to ignore the BS on Wall Street and get taken advantage of. And now the newsletter industry became part of the system. And, you know, you have editors launching nine different newsletters and they'll charge you$1 ,000,$5 ,000,$3 ,000,$2 ,000. And next thing you know, you're paying$10 ,000,$20 ,000 in newsletters.

55:37And what we did is we consolidated all of our newsletters into one. And we did that because AI is absolutely on fire for us. Small caps is on fire for us. But we also had a crypto newsletter that we shut down about nine months ago because I saw six to nine months ago. I saw a change in that industry, a fundamental change where people can't make money. And I pushed everyone into AI and our AI stocks. I mean, we had a thousand percent winner. We had Celestica. It's up 450 percent, big winners. But if you decided to buy just that one newsletter, you're getting crushed. So for us, we said, you know, everybody should have access to everything that we do.

56:08Right. And that's the way it should be. And so we created this one-stop product, everything under one umbrella, where we interviewed lots of CEOs. It's called Alpha, right? Curzio Alpha? Curzio Alpha. You're going to get that. So it's one membership, and you get everything that we do now, right? And we're going to have specialized podcasts, live broadcasts within it. We're going to set up chat rooms, text messaging, you know, recommend stocks whenever we want. Not wait for a month to go by. This way everybody gets it, you know. So it's more interactive. We have all kinds of screening features, too, because we have a bunch of stocks that we combine in portfolios.

56:37So if you just want AI, if you just want small caps, you just want large caps, you want biotech. Wow. You can click it. It has features. It's massive. It's been nine months in the making, and it's a lot. And now consolidating what we felt is this is a better product for you, right, for the customer. Because you and I really don't have to work anymore. And we've done very well because we've worked very, very hard over the past 30 years. We did. You know, I love helping people. You love helping people. We love what we do. And we want to provide that because when I see the newsletter industry where you're buying seven or eight different products and you happen to buy the wrong one.

57:05Right. You have to be part of it. We know where to go with the market. We talked about eight different sectors just now. You know, you shouldn't be limited to one because you brought the wrong product. Right. And we're very excited. I think this is going to transform the entire industry, not just us. So we just launched this. You can go to Curzio Research to learn more about it. And, yeah, we're going to talk a lot about that on Wall Street Unplugged podcast, even on Wednesday. Let's promote something also while we're at it here. It's way out in the future. It's like four or five months out in the future.

57:29But each year you have an annual meeting with people. and you just happen to have it in Fort Lauderdale. I mean, literally down the block from where I am. And you invited me to come and speak this year. To speak. Curzio. So it's called the Curzio One Wealth Forum. And we launched it last year. It's for credit investors only. That's our Curzio One membership. We get it to private deals. And private deals are fantastic. I think it's horrible that they want to open up the entire market to everyone. I think it's dangerous. We saw that with SPACs and everyone took advantage. People don't, my job in getting people in here is one, I'm investing my own money.

58:00I'm not getting paid by the companies, right? So you pay for a membership to get access to this and you invest alongside me if you want. I'm going to show you probably five, six, seven deals a year, maybe two, three deals. And we've done very well getting into the private markets. And then we have a conference that we launched first time last year. And I think we had 125 people there. And what a network. And I interviewed. I didn't have anyone. The 12 different companies that we're associated with. When I say associated with that, we either private companies or companies that we recommended. We had CEOs.

58:27And I interviewed every one of them on stage. So I didn't let them do a presentation because presentations can be boring as shit. So it was interactive. People got to ask questions. Everybody talked to each other. It was one of the best things. It was a pure 66. And I invited you. I said, you know, I got to speak to you on stage because you're going to love it. The group was great. Everybody checks their ego at the door. There's companies raising money there. There was just so many ideas that we shared. Guys that run data centers that help build data centers. Just so many different, the largest bond fund, independent bond fund manager in the world is a client of mine.

58:56And he's there too. So it's just so many different perspectives. It's not about me. It's about the network and having everyone there and being able to talk to everyone. It was an unbelievable experience. Everybody loved it. And I can't wait for you to speak there because you're going to really like it's good, good people. And, um, great facility. Here 66. We're having it there again, because it's so good. We're going to have it different parts of the country, but it was unbelievable. How great it's October. If what water day can get better than that. If you someplace else in the country. Perfect.

59:21Perfect. Thanks for that. I appreciate that. Frank, Xavier, Curzio. Thank you very much for always being a good friend. Great, great guest. I appreciate you, and we'll talk soon. Yeah, thanks, brother. I appreciate it, too. All right. Let's talk. And that's going to wrap up this episode of the Disciplined Investor Podcast. Thanks for joining me this week. Thanks for joining me every single week. Make sure to tell your friends, your family, everybody that you know, you've got to listen to the Disciplined Investor Podcast. Thank you so much. Check it out on Apple Podcasts, Spotify, Amazon Music.

59:51We even got a YouTube. Oh, go over to Twitter. We've got some little clips and videos that are on there as well. Thanks for joining me this week and every week. I'll see you again real soon.

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