- 5/1/2025
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00:00folks welcome to the latest episode of the street stocks and markets podcast i'm chris versace the
00:08portfolio manager of the street pro portfolio joining me this week to tackle what's driving
00:13the markets discuss what's confounding investors and help you move forward as we navigate tariffs
00:19trade deals and the march quarter earnings season is bob burn bob is a street pro contributor and
00:25in his writings he brings his experience as a long-term and short-term swing trader to members
00:36bob thanks for joining me today oh chris it's great to be here now bob you know you have been a street
00:43contributor for a long time just like myself but you know what we're trying to do here is really kind
00:48of set the table for the conversation that we're going to have uh to do so just give us a thumbnail
00:55sketch of your background how you trade how you invest yeah so i began as basically a day trader
01:02uh first part of my career 20 years was day trading equities and futures began in the late 90s 97 98
01:09um dialed back my day trading portion around 2018. so today i'll do i will still do short-term trading
01:16uh but it's definitely around volatility uh but i also managed a long-term book and a lot of private
01:22investments okay so just out of curiosity you said that you kind of put day trading to the side a few
01:29years ago was there something in the market that led to that yeah no that's a great question um on
01:34the equity side of day trading everything changed if you guys remember when um when they adopted hybrid
01:41in 2007 right when they took the nysc and they really tried to make it electronic get rid of the
01:46specialists that completely changed because prior to that it was me versus you it was me versus another
01:52human and so it was a lot more psychology it was a lot more there's a lot easier to be honest what
01:59bob why do i why do i sense a terminator reference coming i wasn't competing against how the super
02:04computer and that's what it became after oh seven so around oh seven oh eight uh me like a lot of day
02:13traders active day traders we did shift from individual equities more toward etfs or futures
02:20okay all right so today you just mentioned that you do manage a long book so kind of what's your
02:27strategy your style for managing that so longer term investments for me kind of fall into two buckets
02:33um you know i think a little dirty secret among active traders is they actually are hidden value
02:38investors it it's a lot easier to value something off of cash flow free cash flow yield even simple
02:45things like dividend yields but we don't i don't look at a dividend yield and say i want to own the
02:50stock i'm going to look at a free cash flow yield dividend payout ratios all these things but i'm going to
02:57chart them so where is the dividend yield in relation to where it typically is right right so i am looking
03:03for something that i believe is a value has sold off maybe the fundamentals are bruised but not broken
03:11okay and so i'm looking for something that is paying out more than it ordinarily would over a 10
03:16plus year horizon so you're kind of looking for compressed valuations i mean that that's really
03:21what you're saying right i mean it's funny that you mention that because typically before i you know
03:26begin a new position i will look back historically at a variety of multiples you know pe's pegs ev to
03:33revenue evita evita but also too as you pointed out for dividend payers dividend yields and that that's
03:38really why i shouldn't say why but it is another reason why i really do prefer companies that not
03:44only pay dividends but they have a rising dividend bent because it's just another tool totally agree
03:49you know one of the examples i like to give and it's a while back but back in 2012 the free cash flow
03:55yield on stocks like microsoft intel cisco yeah yeah yeah yeah they were off the charts no one wanted these
04:02things and it doesn't happen very often you can't you can't think you're going to sit down every day
04:06and say i'm going to go find those great payers today but you're looking for them they do happen
04:11they do appear okay so that's kind of some of the financial metrics that you look at i guess i guess
04:18my next question would be are there any others and then just stepping back when you look at companies
04:24sectors what have you are there particular characteristics or business models that you look at
04:29or look for yeah so i mentioned kind of two buckets there the value dividend but i also like out of
04:34favor growth out of favor technology but when i say out of favor it's kind of the wrong way to put it
04:38you know take today's market in particular everything fell apart together in unison it didn't matter how
04:44well your business was doing two three months ago you basically got sold unless you're maybe mcdonald's
04:51or something okay uh we'll see we'll see we'll see about that but i want to look at companies that
04:58reported really good earnings in the couple quarters prior to this kind of down draft and
05:03then figure out is there something should that change dramatically into the next quarter um one
05:08example i'm not long it now but it's i'm actively watching a snowflake snowflake was completely out of
05:12favor after it came public had a ridiculous valuation really ludicrous but in the two quarters the two most
05:19recent quarters they completely surprised everybody because they they pivoted entirely toward ai
05:24and based on their you know their customer metrics they're doing really well at it
05:29and after both earnings releases the stock exploded so i'm i'm gonna toss one to you just to get your
05:36reaction because i felt like you know service now was the exact same thing so ironically enough i was on
05:42a panel about nine months ago and service now was one of my picks um i was blown away by how poorly it
05:48was getting hammered i was not surprised by how well it did after earnings yeah totally agree totally
05:54agree all right um so with those two buckets and you mentioned a couple names just now snowflake are
06:00there any other companies that are you're kind of warming up to just given what we've seen over the
06:04last few months and it appears as we go through earnings that you know so far maybe they're a little
06:10better than expected or shall we say not as bad as feared i don't think much i think earnings are
06:18going to be fine this quarter i mean earnings okay hang on hang on let's bifurcate this right
06:23so there's the march quarter earnings correct and there's the june quarter guidance which one are you
06:28more concerned about oh well june and forward so next so second half of the year yeah second half
06:34of the year i think is going to be scary okay why now i've talked about this quite a bit and i'm
06:39curious you know for what your reasons are i mean i think the most obvious is when you don't know what
06:44to expect you the smart move is to typically do very little right and i think that's where a lot
06:49of companies are i mean you look you don't just up and move a manufacturing plant you don't up and
06:53make multi-billion dollar allocations around the globe on a whim you really do have to have some
07:00certainty um i think it's a little bit silly to expect companies to up and move all their
07:06manufacturing in very very short order it takes a while so short order that that's an interesting point
07:12because you know i'm having conversations with folks you know and they're like you know one year
07:18two year three years you can't build no a world-class auto facility in you know that short a period of
07:25time you know there's just a lot of i guess questions over what we're hearing uh and whether or not how
07:33viable it is over the long term yeah best example i can give is there's a small company that i was
07:40working with recently semiconductor company and a scientific materials took these guys six months
07:44just to get a small little bench test up and running yeah and these guys had proper funding
07:49brilliant people behind them you want to talk about building a fab or building an auto manufacturing
07:54plan or any of these things they're not fast they're doable but they're not fast then they're way
08:00more complicated than i think uh let's just say building an office building is for frame of reference of
08:06100 certain folks in washington that you know are great developers i want to go back you asked for
08:11a couple stocks that i was looking at now and yeah haven't done anything with them but i am looking
08:14at them uh nike and target both those companies have been killed obviously because of tariffs china
08:22in particular nike has their own issues outside of tariffs um you know there's been a couple hedge
08:28funds that are accumulating nike quite a bit part of me thinks there might be something done there on the
08:33activist side more than anything if you look at nike it's basically for example being priced as
08:38though they're never going to make any money again correct um now i don't want to own something that's
08:43just going from the upper left to lower right but i want to find something that is interesting to me
08:48might have an interesting thesis and then i'm going to start looking for a reason to buy it i don't
08:53fundamentals alone are never going to get me into a position right i i born and bred a technical
08:58trader so i want a reason to want to own something and then i need a reason to actually act on it what
09:04about a reason not to own something oh i've got lots of reasons so so so walk me through the bob
09:12burn litmus test right so you know there's there's a lot of folks out there you know in pms especially
09:19where they're going to run a book of 20 30 maybe is you know 40 names but the number of stocks that
09:27they look at the number of stocks that they get pitched by sell siders far greater than that so
09:32they're always looking for reasons to say no so what what are some of the bob burn reasons to say no
09:39on a technical technical standpoint i am a very very basic basic trader i don't use a bunch of
09:45indicators um helene meisler my one of my favorite people to read she's the best she's the best look it's
09:53it doesn't have to be complicated i mean higher highs higher lows if you want if you insist on a
09:59couple um indicators a couple moving averages if you're a short-term trader something like a five
10:05or eight period simple moving average and a 20 or 21 day whichever people go either way they're the
10:11same you're not you are not going to get very different results with this you're a longer term uh
10:16investor kind of i i can't remember who first told me this but good things tend to happen above a 200
10:22day moving average and bad things tend to happen under it it's a really simple way to look at
10:27things i'm not saying you got to bail on everything under a 200-day moving average and i'm not saying
10:32buy it above it okay but it's a very good litmus test to begin with agreed agreed i feel like i'm
10:38channeling our mutual friend bob lang but but so let me ask you this though so in the current market
10:45environment right tariff uncertainty questions about trade deals we're kind of migrating through the
10:51earnings season and you know like like you said you think that you know the march card will be okay
10:56june quarter guidance is the question i agree with that but the market that we're in we're off our you
11:02know april lows we're kind of careening with the s p 500 towards the 50-day moving average could have
11:09resistance ahead how are you navigating the market you know near term uh so from a from a short-term
11:16trading standpoint if there's not a lot of volatility i'm not trading it uh for a couple
11:20reasons one you know in my kind of 20 years of day trading there were two groups of people there
11:27were the there were the people that traded in the first two hours and maybe the last 90 minutes of
11:31the day they typically made money then there were the people that traded all day every day okay right
11:37over lunch when you had a lot of random chop random chop it's random you're going to make mistakes
11:43you're going to see patterns where patterns don't exist i think that's what we are right
11:46now in the market as well when a market when it compresses back down there's not a lot of sense
11:52to most strategies if you have a strategy that works in it and you can see it in your own results
11:56great most people need volatility and price moves i need it so for it's right now when the volatility
12:03comes back which i think it will i think volatility is going to be back in another week or two
12:07100 now why that time frame um we've rebounded sharply i don't know if we're in a bear market but
12:14we're certainly in a bear pulse if you will um what's been settled like what what there's no
12:21clarity there's no clarity none everything that sent us lower it's still there it's just that the
12:26bond market and maybe the equities but the bond market scared you know president and the
12:30administration whether they want to discuss it or not and they had to pull back and say okay maybe
12:35we need to not rip the band-aid quite so hard right right nothing has changed well you know
12:41it's interesting because you know the conversations that you hear in these at least this week the 100
12:46day briefings that we're getting at 8 30 in the morning you know there are questions around oh
12:52is there potential progress with you know um india japan korea you know japan and korea have
12:59elections that are coming up so that we may not see anything on that front until you know july
13:05right china is obviously going to take their time uh my understanding is that they are talking about
13:11the bully in washington and how they are warning people not to appease him so it tells me that
13:18there's going to be a slow road to this and on the you know the sorry the topic of tax reform
13:26you know there's conflicting stories there too you know you know the administration wants july 4th
13:31but if you look at different comments it's likely to be later than that and then deregulation later
13:36in the year so you know if i'm gaming out the current quarter i don't really expect all that much
13:42no not at all i mean going to the tariffs in particular it's all it seemed like from kind of the
13:49i won't say the very beginning but right around that whole 90-day pause time frame
13:53the administration wants to put china in a box okay when you look at all the other countries
14:00and their tariffs and we're negotiating tariffs but at the same time we want manufacturing back in the
14:05states which is right i don't think anybody knows because if if i have a business and you're gonna put
14:12a 50 tariff or whatever it is on me well maybe i might think about moving manufacturing but if it's down
14:18at five percent two percent ten percent right why would i move so we don't even know what the actual
14:24goal is except to isolate china so maybe that maybe the ultimate agreement is tariffs go somewhere near
14:32zero or approaching zero as long as those other countries also agree to put china in a box and if
14:39they do that that still makes things very very complicated agreed 100 all right we're gonna have to
14:45wait and see how all this plays out but i wanted to ask you a different question bob um you know
14:51i think for folks it's really easy to deal with stocks that are doing well for them but in a
14:56challenging market how do you handle i guess the only way to call it is a call gone wrong so i think
15:02it comes down to two things whether it's a short-term trading call which i think are easy you know you
15:07know you're wrong if you buy something without knowing where you're wrong and where you're out you
15:11shouldn't have bought it in the first place um and i think that kind of realization comes from getting
15:16stung a whole bunch of times when you start out as a trader uh when i started i was in college and i
15:23had a string of probably eight nine months where i was doing great i thought i knew everything it turned
15:28out i didn't know anything and ended up losing half my account in virtually one trade i have never made
15:35that mistake again and that was so it sounds like discipline is what discipline is 100 it it's all
15:41risk management what's what's the staying uh a chip in a seat or something like that as long as you
15:48have a chip and a seat at the table you're still in the game don't ever make a bet that pushes you out
15:54of the game both from a monetary standpoint and a psychological standpoint how do you react to things
16:01so like for me personally um i feel far more pain when i lose than than pleasure when i win so it helps
16:09me avoid a lot of situations i don't miss out on opportunities so if i can't identify precisely where
16:15i believe i'm wrong based on why i'm getting in i don't take the trade so wait say that again say that
16:22again before i enter a trade i have to know where i'm wrong or at least where i think i'm wrong
16:31if i look at the chart so what could go wrong yes if i look at a chart and say i just i'm not
16:37entirely sure if it's this point this point this point or this point where i should be getting out
16:42my thesis is off the trade is too complicated don't make it harder than it has to be and at
16:47the end of the day sell first ask questions later if you're not sure sell okay what about with your
16:54longer term portfolio when you're trying to build a position right you may not be as anxious to rip the
17:00band-aid to use you know the language that some like to use um you might say okay let's retest the
17:06thesis where can i you know bring down my cost basis but at what point do you go you know what i got to
17:13throw in the towel i need to revisit you need to let it cool off i mean if it's a real long-term position
17:19and i'm invested in understanding the management the the uh the operations everything about it
17:25you do ultimately uh got to do two things one for me i have to be willing to trade around the position
17:31especially if it's something volatile you know if you're if you're in a small cap position it you
17:37shouldn't be trading small caps or investing in small caps if you can't handle 30 40 oscillations it's
17:43part of the game okay um did price move because of volatility or did price move because bad earnings
17:50and if they're bad earnings why were they bad is it a slight dislocation or did they take horrible
17:56financing indicating that they really don't have a capital market strategy right so if it's a long-term
18:01position you do have to ask deeper questions of why why is the volatility there and if the volatility
18:06is there because it has a high beta then you just have to be willing to navigate that
18:09right okay it sounds like you're kind of touching on something that you didn't say but can be inferred
18:16which is you really need to check your emotions at the door you can't have any it's pretty easy like
18:21when you meet someone never traded before they're interested in your past you tell them what you did
18:26you could probably figure out relatively quickly if they have the personality to be a trader if they're
18:31real if they kind of wear their emotions on their sleeve and are kind of a little bit up and down
18:35they're gonna um i i had some good friends you know back in early 2000s that were traders that were
18:43kind of more emotional people and they do they would do well for a while but once you have a a
18:48down draft they get killed they would just be killed uh yeah i could see that because what happens
18:54then too is you have that big down draft and then you have to get more aggressive you have to
18:58double triple down and almost instead of going for that base hit or stand up double you're swinging for
19:04the fence yeah you know look as a trader your job is to take losses that's what your job really is
19:10it's to identify when something's not working and get out you can always get back in i mean remember
19:15unless you're moving in some cases billions of dollars it's the greatest ability of the individual
19:22investor or traders that you can get in and out in a split second right with with nothing it's great
19:30it's your advantage in large part it's your edge over the larger players so with that being said
19:36are there any other pearls of wisdom that you would share with short-term traders
19:44so this is probably one you won't find in a book but uh you asked about kind of risk management
19:50yeah figure out how your body responds in in uh moments of stress so for me it was my love your
19:57physical body your physical body so this is going back again when i was in college i noticed that
20:03it wasn't the dollar figure of a loss that impacted me it was how internally i was reacting to a gain
20:11or a loss of any amount and for me it was my lower back my lower back would start to really tense up and
20:16seize when i knew i was getting too emotional about anything it could be a hundred dollar loss
20:24or a ten thousand dollar loss it did not matter there were there were points where i would make
20:29or lose a lot of money and i would have zero feeling about it and that would tell me to keep
20:34going don't get up from the don't get up from the computer there were other times where i could take
20:38a loss that was trivial or gain or have a win that really was trivial but i felt the excitement my lower
20:45back might seize up on a loss and i had to get up and walk away for a little bit because for whatever
20:50reason i was not grounded um did we try yoga a foam roller anything like that you know i i found a
20:57weight room yoga never did it for me well you know it works for some i i dabbled in pilates but that's a
21:05whole other story that we don't need to talk about all right let's let's segue bob into some member
21:10questions and remember listeners if you want your question asked and answered on the podcast you have
21:16to be a street pro member so bob we got a handful of questions let's just rip right through them
21:21number one bob what is the latest on your stock pick of the year for 2025 defy technologies ticker
21:28symbol d-e-f-t-f yeah so defy it trades in canada and on the otc you gave the otc uh symbol it's a
21:36financial technology company that basically connects your traditional finance with cryptocurrency markets
21:41okay um i was attracted to it for one really basic reason i am a old school equity trader i'm not a
21:50currency or i'm not a cryptocurrency trader um i've never been a big bitcoin ethereum type of fella
21:56but there was enough there that i wanted exposure but i wanted it in a in a form that i was comfortable
22:01with and that that's defy so it it offers kind of that accessible crypto investment product for an
22:09investor like me or a trader like me um two things got me excited about these guys one they're making
22:15money a lot of money so it's basically an asset manager i almost want to call it a state street
22:19or a black rock for cryptocurrency i like that it was easy for me to understand they're not just
22:24buying necessarily buying cryptos and seeing what happens it made sense their revenue i want to say
22:31they're managing over a billion dollars now um market caps around a billion dollars and it's on the otc
22:38why is it there because gary gensler did not like cryptocurrency when he was right the sec well he
22:44is out now right do you see that changing do you think they might list in the u.s 100 percent um you
22:52know i don't have any any information that's not out there all i can tell you is they filed their 40f
22:57which is what a foreign company has to do to be uplisted to a senior u.s exchange um now that gary
23:03gensler is out yes i expect this to uh be uplisted soon i hold a position in it um my main thesis here
23:11is it gets re-rated financially one once it is on a senior exchange remember there's a lot of people
23:17and institutions that either can't or won't buy otc symbols otc stocks so yeah 100 all right let's uh
23:27and you'll keep pro members updated on this right in your alerts i will excellent excellent all right
23:33let's let's get a second question this question is a little surprising extremely timely though and it's
23:37on a topic that i think uh well combines a couple different things so here we go um bob what is your
23:43take on amazon's plan to limit a line item sorry to provide a line item for tariff charges in the amazon
23:50shopping cart kind of speaks to transparency tariffs what do you think as a consumer i love it
23:57um you break out your taxes you break out your shipping well tariffs just another expense
24:03you know what you know whether you agree with kind of the administration's approach or not doesn't
24:06matter it's it is it is part of what i'm paying i would like to know if i'm going to buy a widget
24:11for 20 bucks i would like to know if that the the real cost of that widget is ten dollars and i'm
24:16paying another 10 because it's made in china or pick your country so yeah great from a consumer
24:22standpoint as a from a company standpoint look i think amazon is trying to also tell their customers
24:27hey it's not us it's not us right don't blame us when you know whether it's they want to keep their
24:34margins up they can't slash prices or any of this stuff okay so it makes complete sense the
24:40administration of course the administration hates it they're still hoping that you believe that that
24:44someone on the other side of the world is going to pay that tariff right so right right right yeah
24:50i i believe the white house press secretary um had some very nasty things to use donald trump's
24:57language about that news item yes she was not pleased about it at all it's a look it is a my
25:02opinion is a good move for consumers and it's a great move for amazon it makes total sense do you
25:07think others you mentioned target earlier do you think others will follow suit online yes it's easier
25:13um too many stickers in the store to change yeah you know when you're looking at bricks and mortar
25:18will they if it sticks sure like if we really get to the point where everyone else around the world
25:24is paying that kind of 10 global tariff and it all boils down to keeping china in a box and
25:30it's all around them yeah i could absolutely see it but it's just like anything else a company's not
25:34going to want to make that turn that that change as a bricks and mortar unless they think the
25:39tariffs here to stay well did you hear what's happening in canada with retailers no
25:43they're putting little um u.s flag like stickers on u.s products where the pricing is
25:50so they can they can tell people hey this is from the united states and all and all the canadian and
25:55other products are selling the u.s goods are stockpiling i mean look if you can find if you can
26:02find an alternative most people are price sensitive i mean you're going to have some group that says i want
26:07to buy you know american made only you've got a much larger group that's saying well this thing that i
26:12want it is 20 bucks but this thing that really does the same thing for me is 12 or 14 i'll just buy
26:18that i mean it it is kind of basic economics i don't think it has to be overly political or anything
26:25else it's it's just basic economics i agree but i will say that the chocolate in canada much better
26:33just saying just saying all right last question um and this one is going to be a little different it
26:38actually touches too bob on something that you wrote a little while ago and shared your thoughts
26:43on with pro members so um you know currently you know the ipo market is once again appearing to be in
26:48a pause but why do you think bob the newsmax ipo was successful while core we've struggled and since
26:56then we've seen uh clarna stub hub kind of pause pull their ipo transactions what was so special about
27:04newsmax other than the other than the obvious yeah look this one is super interesting because um
27:11in order to really understand this you have to get completely off of wall street you need to
27:16this has never been discussed on bloomberg cnbc pick your media outlet of traditional wall street this
27:23has never been out there all right break it bob break it down core weave core weave was your
27:28traditional ipo brought by traditional wall street banks money was raised from accredited investors
27:34venture capitalists your 506 c's all that newsmax did it very very differently okay newsmax well they did
27:44raise their money initially with a 506 okay then they switched into what's called a reg a plus now hang on
27:51hang on hang on hang on for the average listener 506 is what 506 c is a company wants to raise 10
27:58million dollars they're going to call their banker they're going to put out a document that document
28:04is going to first and foremost insist that you're an accredited investor which means you make a certain
28:08amount of money or you have a certain net worth they use those metrics to basically insist that you
28:14know what's going on whether you agree with that or not okay there's another avenue to raise money
28:20called reggae plus or crowdfunding regcf anybody can invest in these it does not matter what your
28:28income is or your net worth because you can typically invest a few hundred bucks whatever it is
28:34i i operate in that world in reggae plus and regcf i work with a lot of companies that are trying to go
28:40that route to explain it because it's different okay that is what newsmax did okay so this is the first
28:46part of why newsmax was successful they raised a lot of money with the 506c then they did a reggae plus
28:53to ipo their mechanism to ipo was not a traditional s1 it was a reggae plus okay if you if you got the
29:01email you could invest at ten dollars now what did they do they sent that to the newsmax viewers
29:08okay so in other words they tapped their own list is what you're saying they tapped their own list but
29:15they also did it with a small firm digital offering that specializes in these they know them well
29:21i know the digital offering guys well well i am not a you know loyal newsmax viewer i don't watch
29:26much tv i knew of the offering okay that made a big difference the second part and this is the most
29:33important one when core weave came public it came public with a lot of shares a lot of shares and it
29:38was fully valued you got to understand silicon valley or sand hill road your traditional venture
29:45capitalists your your traditional early investors they're not going to bring a company public until
29:50it's pretty well fully valued this is not 1998 where you got the yahoos and and those type of
29:57companies coming out in the nine figures in today's world most ipos don't come out until they're fully
30:03valued this is why i think you are going to see a complete move away from 506c to reg a plus and reg cf
30:11it allows the ipo market to flourish again so when newsmax came out there were only a few million shares
30:18in the public float when core weave came out there were millions upon millions it was a lot easier for
30:24newsmax to move with strong demand so are you thinking that if we see the ipo market kind of
30:32reopen right we get some certainty in the markets are you looking for a a larger wave of small midsize ipos
30:41led us led by smaller investment banks that frankly most people never would have heard from or heard of
30:48and it's because people are realizing that it's not that the ipo market should be dead or is dead
30:54it's that the old way of bringing things public that is what needs to die okay when you bring an ipo
31:02public today and very often they're in the billions upon billions and they've had you know the names of
31:08all the venture capitalists we've all heard them the sequoia all the rest of them those guys were in
31:13these things when they were initially raising at 20 million bucks and then they bring them out at 20
31:17billion 40 billion they bring them out as their liquidity events for those early investors correct
31:23the reg a plus the reg cf okay those are the ones that are going to be coming public more toward the
31:29100 million valuation 200 400 million when there is a ton of growth left in them
31:35again most people have not even heard of these avenues of investing they are just really catching
31:41hold a reg a plus can raise 75 million a reg cf can raise 5 million there's talks that the
31:48administration is going to raise those levels dramatically so bob you're steeped in this world
31:53for you know pro members or other people listening to the podcast that want to become a little more
31:58familiar with this maybe even see some of these you know deals that are transpiring well what are one
32:04or two helpful resources you know if you want to just read basically you can google reg a plus to
32:09get a feel for what they are um i do write about these on a website it's a subscription model it's
32:14asymmetricpublishing.com maybe i'll start bringing some of these to the street pro and seeing it what
32:21people think of them there you know there's a lot of offerings that are coming out there again newsmax
32:27showed everybody that there's a way for the ipo market to frankly work um stocks pulled back
32:33dramatically but come on it ran it priced at 10 it was supposed to open it at 14. i can tell you that
32:40our venture fund sold well before it saw 200 plus dollars um but it's still a double and that's a lot
32:47better than most ipos these days yeah true true all right all right anything to watch on that particular
32:53deal bob or are you just kind of moving on look on newsmax at the end of the day it is going to come
32:59back to valuation uh newsmax has a ton of revenue but they're also losing a lot of money for for their
33:06growth they do have to they have to keep a handle on that with newsmax obviously it had a very very
33:11loyal audience and a very loyal shareholder base if i go back to simple price when newsmax came public
33:21it priced at 10. it indicated at 14 it printed golly i don't even know if it printed more than
33:28a few shares at 14 before it was already halted and reopened at 22. if i'm looking at a chart of
33:33newsmax just because i remember the ipo day as this thing loses 20 if you're trading it i wouldn't want
33:39to be long and if it breaks and if it breaks 14 not 10 but 14 i don't want to be in it at all
33:45okay good to know good to know all right bob you've been generous with your time but before we
33:50get out of here any parting words to the listeners as we get ready from earnings a big week of earnings
33:56apple microsoft amazon meta you know it's funny i was looking at these things earlier
34:04i guess i'm one of those people that has never for the life of me understood apple i try not to opine on
34:08it because i have been so wrong i have thought apple should be significantly lower for ages it doesn't have
34:15the growth it just it just doesn't make a lot of sense to me now if you go to meta meta has it's a
34:23great company makes a ton of money i'm a little nervous about their advertising for the rest of
34:28the year again like all these companies i think the number their numbers are going to be fine for
34:32the last quarter so hang on hang on so when you say they're advertising you're talking about their
34:37advertising revenue stream against the back of a slowing economy and companies cutting back their
34:42spending yes okay yes um i think they're going to be conservative and i think it's going to be
34:51i don't want to say red wrong but i think the stock could take a hit um amazon
34:58you're going to i think you're going to i think there's going to be a lot of questions around
35:01amazon's tariff decision today to list the tariffs on the call there's obviously going to be a lot of
35:06political pressure put on them going into it i think all all the mag seven numbers are going to
35:13be generally okay i think their guidance is going to be less than impressive to concerning across the
35:20board again i i don't think when you look at the market word is now and how it's rebounded over the
35:24last x number of days and my own two cents is you're a hell of a lot closer to it rolling back over
35:30than continuing higher um i i don't dispute that that's why we have a lot of cash yeah we've
35:37continued to held on to our inverse etf positions in the pro portfolio i will say that in addition to
35:44those companies right i think what they say about capital spending will be very important um you know
35:50with microsoft i think you're going to have to understand you know how much is through open ai how
35:54much is through core weave right but when you amass it all together right the company that you
36:00have to be concerned about is going to be nvidia 100 when you look at microsoft they've been walking
36:04back their ai capex for ages for a while yeah i want to see what they say formally on their call um
36:10i don't expect it to be terribly bullish for nvidia you can look at nvidia and save based on their
36:16numbers and pe sure it can be fine but it's impossible everybody everybody's looking at nvidia that's been in
36:22trading for a while and saying is it is it cisco is this back to the infrastructure play of cisco
36:27in the late 90s early 2000s um ai is going to be huge 100 just like the internet was huge
36:34but eventually the price of that infrastructure came down dramatically it kept building out but
36:40the prices came down is it going to be the same thing for the chips was deep seek did that show us the
36:44path out that the prices are going to come down i i don't think that i don't think there's any
36:49question that prices are going to come down i think when we step back and we look at the
36:53accelerating ai adoption that just tells us that we're going to need incremental capacity over time
36:59yes and that and there there's two parts to that right there's the data center side and then there's
37:06the network side right because when you think about how we use ai it creates and consumes a tremendous
37:13amount of data right that is going to congest the networks and candidly that's why in the portfolio
37:19we're long not only nvidia but we're long marvel as well for that communications infrastructure business
37:24so you beat me to it because i was going to say if you're if you're really interested in being in
37:30that chip related to ai or something to that effect marvel broadcom i i would pro i would lean toward
37:37those marvel i like for one simple reason i i'm not going to guess it who might do it but it's a
37:43heck of a lot easier for another company to swallow up marvel which gives it another reason to own it
37:47interesting interesting all right all right bob burn thank you so much for joining us today we will
37:53have you back because we're going to want to tap that uh reggae market and other deals as well as
37:59get some insight on what you're thinking as we kind of get more certainty in the market folks we will be
38:04back with a new episode before you know it thanks for tuning in to this episode of the streets stocks
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