Program:  Making Money with Charles Payne

Date:  6/9/2022

Station:  Fox Business News

Time:  2:00PM

CHARLES PAYNE: All right, folks, I want to bring in our friend Scott Martin. Scott, let me just pick up on that. How much do you consider intrinsic value when you’re buying or selling stocks?

SCOTT MARTIN: I consider it, I guess against the backdrop and I love the comments you shared there with David, because intrinsic value is great and it’s great for the long term, but it’s sometimes tough in the short term because as we’ve seen, Charles would say, today’s market, I’m sure Facebook is he noted Amazon, Google, you know, stocks we hold as well. Those looked like they had intrinsic value three months ago or even maybe six months ago to some degree. And some of them. Yeah, and they’ve fallen further since. So the reality is I think you have to check the market kind of emotions as well, Charles, and the backdrop, but just know what you’re kind of getting into with respect to that, because sometimes stocks can fall further, they can get more into value, and then they eventually rise again. When the market say emotions dissipate and get more towards, say, a normal trading upward sloping market environment.

PAYNE: You know, Scott, that reminds me when I was a broker and we, you know, someone we get someone in a stock at 30 and calling back up, Hey, Mrs. Jones, you like the stock at 30? You’re going to love it at ten. You want to buy some more. So that’s what.

MARTIN: It sounds like a can’t miss. And Charles, a couple of names that are out there that we’ve kind of looked at the same intrinsic value play. And remember, we have the fastest growing economy in the world, the world. The world, as somebody once said, and you might hear that quote last night from somebody very important. The point is, though, we do have a good economy, I think, coming out of this current recession that we’re in. So companies like Southern Company Charles we found in a recent recent purchase that have some nice intrinsic value Netflix. Yes boys and girls there’s intrinsic value there as well as possibly Zoom Communications and some other names that are along those lines, Snowflake, that are seriously beat up, seriously in the trash. But ones that, as David just said previously, based on some future cash flow analysis and future assumptions that I think are likely to come true, these are stocks that are going to go up over the next 12 to 18 months.

PAYNE: I’m not sure what you’re talking about. Last night I was watching reruns of Banner Check. You need to check that show. Fantastic.

MARTIN: I was watching Lifetime, man, just to go to sleep.

PAYNE: Sorry. Let’s talk about the CPI number tomorrow. I mean, everyone is worried about it. Concerned. You’ve been playing it pretty cool. You’ve been positioning yourself because you’re a longer term investor. But let’s just play around with this. If it comes in below consensus, then we get a pop. And does it have any staying power?

MARTIN: I think markets have to be happy with that because finally, I think we’re starting to see that slowing of the inflation rate of growth. Here’s the question, though. What is the bond market do next next door to say that inflationary number, Charles? Because the bond market does not react. Meaning if bonds don’t get bid and rates don’t come down, I think the market blows that thing off is maybe a temporary thing to get excited about, meaning that if Bonds can respond and you can start seeing that bid and bonds in correlation to say maybe a lower than expected CPI number, then you’ve got the setup for a market rally into month end.

PAYNE: Scott I’ve got less than a little less than a minute. What is the market worried about, though? That’s that’s an unknown. In other words, we know about inflation. We know the threat of recession. We even know the threat of stagflation. We know the Fed’s going to hike at least three times 50 basis points and they’re going to start to let the balance sheet run off. We know all of the dangerous things out there. What part of that are we so concerned about?

MARTIN: Yeah. You know, I think it’s a labor issue now, Charles, you know, I was just at a conference a couple of days ago talking about how in virtual one, but talking about with a lot of folks about how tough the labor market is right now. I mean, how many jobs are out there, how much labor there supposedly is out there? But they’re not willing to work or they’re not fitting up with, say, the jobs that are out there. So I think the market is concerned, Charles, that we don’t unlinked these supply chain issues as much as we can. We don’t get people back to work and being where they should be when they do need to go to work, do need to go to the offices, do need to go to the restaurants, the service industries and so forth. So that’s the kind of thing that the market, I think, worries about because there’s still demand out there, folks. So you have to match that up with the areas where you need the supply of the workers to deliver those goods and services.

PAYNE: Yeah, that’s why I’m investing in automation stuff, man. I think businesses are going to have to invest big time. Yeah, you get a chance. Check out that banner. Check that first season of banner. Check, Scott. I’ll let you go, my man. All right.

***