- 2023-07-20
- Posted by: kimsite
- Categories: Commentary, Insights
Click here to listen to the full interview.
CHARLES PAYNE: All right, folks, we’re in the thick of it now. Earnings season and this one old school axiom that’s proven to be true. Sell on the news or even slightly before the news. Joining me now from the Fitzgerald Group, their principal, Keith Fitzgerald. Also Kingsview wealth management CIO, Scott Martin. Hey, Keith, let me start with you. Your assessment of earnings so far?
KEITH FITZGERALD: I love what I’m seeing. You got this strong companies running to the top and the fact that everybody else thinks they’re going to be priced like they’re going out of existence. I’m drooling like a Viking and and all. You can eat buffet. Charles. I hear you.
PAYNE: Hey, Scott, don’t start talking about buffets around you. But you know
SCOTT MARTIN: He knows better than that, Charles!
PAYNE: I know. He opened the door for that one. How are you feeling this earnings season? It’s. It’s about 50 companies so far. But what do you think?
MARTIN: I like it. Market reaction has been maybe a little suspect here. With respect, Charles, to I think some investors are using the excuse of maybe some weak guidance and some weak margin maybe or some margin compression, rather, in the future to take profits, which isn’t bad because we’ve seen that before throughout the year and it’s led to big buying of these dips. And I don’t think this is going to be any different. However, we could see a little bit more appetite, as you’ve been talking about all show buddy with the value side of things which have been left for dead now in the last few months. I’m expecting that to come back big time here in the fall.
PAYNE: I’m going to get back to you on that in a minute. But we’re talking about you mentioned buy the dips, Keith. I know you like I know you talk a lot about Tesla also JP Morgan. I want to just mention on the call yesterday, a wild call. Elon Musk essentially giving investment advice. He mentions Benjamin Graham and the notion that Tesla could be up ten times from here. I’m not sure. I’m not sure if Benjamin Graham is rolling in his grave at that assessment. It seems a little bit risky for Benjamin Graham. He also said Ark investment is the best research out there. So do we follow the do we follow Elon Musk, the market analyst, at this point?
FITZGERALD: Well, I wouldn’t put him down as a market analyst, but I would take a look at history. Right. You wouldn’t bet against Steve Jobs back in the day and a lot of people tried. That didn’t end well. You don’t bet against the visionaries. I’m beginning to wrap my head around $500 a share with regard to Tesla. 36 months from now, maybe another split. Charles, the company is on fire was not the one I heard investing in growth. I looking at the electric grid, looking at the charging network, looking at the fact that they’ve still got a 60% market share. He is just getting started, my friend. Yeah.
PAYNE: And he says, hey, even your assessment of that is not right. He’s saying Tesla could go up ten times from here. It would be a $9 trillion company. Hey, listen, I’m not here dissing him, by the way, because I. Everything he’s ever said has come to fruition. Let me talk to you, Scott, because you’re not too happy about chasing these crazy valuations. But you do like where banks are. By the way, you’ve been talking banks before. As soon as they dropped, as soon as Silicon Valley sent the bank stocks down, you said go after them. You particularly you specifically talked about regional names. You still like them big time.
MARTIN: I mean, like Keith said earlier, drooling like a Vikings fan at a Bears game here with some of these names, Charles CME. Comerica is one of our favorite ones, Fifth Third Bancorp as well. Fitb, another great one that is finally starting to wake up and finally starting to get the girls to talk to them in the sense that we’re starting to get that flow in from the sidelines, which, by the way, Charles, you know, we had many months to start adding to these names as we did as they fell. And now we’re licking our lips here because of the fact that these are starting to move up after, by the way, some good earnings reports and some good guidance.
PAYNE: You know. I think a lot of folks, though, just wanted to see the good news first that you speak of rather than roll the dice real quick, Keith, you like the momentum stuff, but I’m looking here that you think Pfizer is extremely oversold and Lockheed Martin is a no brainer.
FITZGERALD: Absolutely. To me, this comes down to notwithstanding the terrifically terrible news about the tornado in their factory, they’re on the cusp of customizable medicine. So to me, looking at these prices with a big dividend, with great coverage, with a history of innovation, that’s a no brainer for Pfizer. Lockheed Martin defense, I mean, this is just self-explanatory. The world is a complicated place. We’re going to need all the things they make. Every government in the world is going to need those things. So to me, both of those stocks are something I want to edge into. I hope I own more. Yeah.
PAYNE: And before I before I let you guys go, you never know where you’re going to get great stock ideas from, you know, And I want to bring this to your attention, Scott. So about an hour or so ago, I’m going through my inbox and I got an offer from Uber Eats. Apparently they’ve hooked up with KFC and you’re going to really want to hear this free eight piece nugget combo with any KFC order over 20 bucks. My man, that’s got Scott Martin written all over it.
MARTIN: Yeah. You know, Charles, they probably know better than to send me those offers because I’ll find a way to get three of them. But I do like that picture of the food there. I mean, it looks delicious. And I’ll eat that with you any day of the week, pal.
PAYNE: All right. Does that make Uber a stock pick or at least put it on your watch list?
MARTIN: It does. Or maybe Yum Brands, man. And we’ve talked about Taco Bell with Yum Brands, KFC. I mean, and I love DPZ, by the way. I spent a bunch of money at Domino’s Pizza two days ago, almost $50 for an ultimate pepperoni pizza, some of the cheesy bread and then a Fanta orange two liter. My goodness, is that stuff expensive? But man, is it good?
PAYNE: I hear you. I tell you what, honestly, Scott, if you want a great meal, go to Keith’s house. The meals that he and his wife prepare, they’re like, I mean, just restaurant quality stuff. All right, guys, I got to leave it there. Keith Scott, thank you both very much.
