CIO Scott Martin Interviewed on Fox News 5.13.22
Program: Your World with Cavuto
Station: Fox News Channel
NEIL CAVUTO: To Susan Lee on that, Scott Martin of Kingview Wealth Management. Susan, looking at that, if I’m a Tesla shareholder and I think the guy and the genius behind my company might not pursue or be distracted by by this other company, I’m going to be happy. Conversely, if I’m a Twitter shareholder, every company and I’m going to go the other way because this thing is looking dicey, or at least at its price. What are you hearing?
SUSAN LI: Yeah, and if I’m Elon Musk and I’m pledging some of my wealth in that $44 Billion takeover offer, I want the best deal, especially if social media companies are down 25%, discounted 25% since I made that bid. And you know, Elon Musk, he’s not just putting up this bid by himself. So he’s probably huddled with the Larry Ellison’s and other potential private equity, those other financiers in this deal, saying, should we be paying 54 to 20 when Twitter is trading at $40? I think there’s probably been a rethink, and especially in these times, by the way, where $1,000,000,000. Yes, that sounds like a lot for most people, for Elon Musk, not much. And especially if you can get the the property for cheaper for $10 cheaper, that might be a deal for him.
CAVUTO: You know, Scott, I wonder what the background for this could have been or backdrop and that is safe today. The selloff in technology shares, even Tesla shares to the point that, you know, he’s lost tens of billions of dollars on paper. Now he’s still the world’s richest man by far. I got that. But do you think secretly or privately he reassesses this? You know, that continues. I’ve got problems.
SCOTT MARTIN: Great call. It was a game. I think it was a game from the start, as we talked about on FBN a couple of times, Neil. Here’s the thing, though. Musk won because remember the libs that got freaked out about when he was coming in to even talk about buying Twitter and then when he made the offer and they accepted it. I mean, I watched the reaction of a lot of the left wing liberals and they got freaked out. I mean, they dedicated their whole shows, their whole Twitter accounts to how this was a takeover and it was going to mess up free speech and all that stuff. So he laughed. I mean, he kind of got the reaction that he wanted. And to Susan’s point, the stock was probably the buy was probably too much, 54 to 20. Everybody knows why he did that. He’s probably going to come back in and say, hey, I’m going to offer 42. And if you don’t know what that means, go watch Dazed and Confused. All right. Because here’s the thing. He got kind of the reaction that he wanted for $20 billion.
CAVUTO: It’s a it’s a pot reference. It’s a family show.
LI: Exactly. April 20th recognized pot thing. So, you know.
CAVUTO: That’s right. But but on that point and it’s a very good one on Scott’s point, Susan, this issue with the technology sector in general, it had an extremely, extremely rough week and a lot of the stocks have been decimated. We can get off those boards, guys. I’m wondering here, talking about the markets now and talking about where they stand. This deal notwithstanding, I have a feeling that a lot of tech investors are debating, all right, I’m up a little bit. I’m going to cash out now when the getting’s good or how does this play, you think?
LI: And what’s the pain threshold? Is $11 trillion in losses enough? As Scottie will tell you, in these type of bear market sell offs, you have markets and sellers really exhausting themselves, meaning that they run out of things to sell and usually want to sell the things that you like the most lasts. And I think the fact that Apple fell into bear market territory down some 20% from recent peaks yesterday, probably the most widely held stock on the planet, the most liked since it’s a cash machine and returning a lot of cash to shareholders. And that’s why Warren Buffett bought in. I think that was an inflection point thinking, okay, well, I’m already selling my favorite stocks. What else is there to sell? And maybe there isn’t that much more in the portfolio and especially on a Friday. I think it’s indicative if stock markets go up, especially when you heard Jerome Powell yesterday talking about short term pain to get inflation lower and raising interest rates by one full percentage point, at least this summer and stocks in the week lower. Higher part of me and stocks rally into the weekend. I think that’s positive.
CAVUTO: If you have a rally, do you want to believe, Scott? You normally need to see it at least for a second day. And the rallies that we’ve seen have been one day wonders. I’m not dismissing this or pooh poohing it. I’m just saying that’s been the way it’s been going. How important will Monday trading be to you?
MARTIN: Big. Although today, to Susan’s point, was great. I mean, we actually held the rally most of the day in rally to beat into the close. I’ll tell you what, Neil, the only thing left in this market, though, there aren’t a lot of sellers left. It doesn’t look like, but there’s still emotion. And so as an investment manager for many of our clients and even my own account and both the Twitter hold her and a Tesla holder. So I need my medication this weekend. I’ll tell you what, when you’re buying stocks, when you buy something and you have to go to the laboratory afterwards, that’s probably a good buy. But if you’re buying something and it feels like it’s a surefire win, you’re complacent. This is a can’t miss. That’s when you should be selling. So take your emotion, flip it around, and that will tell you what to do.
CAVUTO: I could help you with that medication thing, young man, but that’s a whole separate issue.
MARTIN: Send it over. I’m out.
CAVUTO: Yeah. All right, guys. Thank you both very much. Have a wonderful weekend.