Watch Our Earnings Recap on JPMorgan, Wells Fargo, Johnson & Johnson, UnitedHealth Group, and More

Welcome everybody to our latest earnings watch for first quarter. Excited to do some more of these this month. Look, this is going to be one of the most important, exciting earnings watches and earnings seasons that we've seen, I think, in years. I mean, not since COVID have we seen this much uncertainty going into an earnings season. And I think this is very different from COVID as signaled yesterday by Fed Chair Jerome Powell. There is no Fed put. In COVID, we had a Fed put. And that's trader lingo for, if things get really bad, we'll put a bunch of money into the economy. Well, They've put so much in that we got so much inflation that they can't do that again. They do that again with inflation not under control, it's going to run crazy. So, we're headed into a recessionary environment. There is no question. And what we're going to be seeing in these first quarter results is a lot of companies starting to change their numbers. I mean, what happened recently with United Airlines? They said, oh, you know what? I'm going to give you 2 numbers for our expected estimates, a high one and a low one. If things stay normal, okay, earnings up here. If things, if it's a recession, they're going to be down here. A couple of firms pulled their estimates altogether. So we're going to be learning a lot about earnings this season. Let's get to it here. As usual, if you have requests, we got some folks have been with me a few times here, so they know to put their tickers in here pretty soon. Let me share my screen. Also, if you guys have questions, shoot them at me. I want to make this dynamic, and I like hearing what you guys have to say. So let's get into it here. All right, where do we want to start? I've got 12 tickers for you today, so I may not have a chance to do that many. Let's take a look at UnitedHealthcare Group because this one's— there's a lot of action today. By the way, we're covering banks, healthcare stocks, Retail stocks, grocery stores, financials. This is going to be a lot. So United missed the numbers big time. Stock's down 22% today. Yeah, over the last 5 days, 24%. Year to date, it's actually done really well. So before today, it was up like 10%. What does our system say about United here? Let's go to our portfolio. Has all the stocks. Let's just click on here, get an answer. All right, neutral rated stock. We were expecting a, a beat, so that's a surprise. Let's see if there's some detail on, on the miss. What happened here? Cast gloom over insurers after shock forecast cut. What does that mean? Falls most in 25 years after shock forecast cut. Cut its annual reported earnings, missing over a decade, causing shares to tumble. Was blindsided by rising medical costs, particularly in its Medicare Advantage plans, which were affected by Medicare payment changes, lowered its earnings forecast to $22.50 from $29 to $30. Interesting. So big miss, big rise in costs, which I guess they didn't see coming. So I think one of the takeaways from this situation with respect to UnitedHealthcare, you got a neutral stock. So that would be one we would say probably you don't own. Fully, you know, fully valued. At the same time, decent economics, not too crazy. You know, you're still up. You're still doing better than the market, I think, year to date at this point. Let's see that. You're about the same as the market. So what you're getting here, kind of, I guess, you know, the neutral rating is about the same as the market, even with bad news. I think that's our takeaway on UnitedHealth. Let's go to JP Morgan. This has been one of my favorite stocks for a long time. I've said for a couple of years now that I think JP Morgan is better to own than the S&P 500. I think it's safer than the S&P 500 because I don't believe in the diversification in the S&P 500 anymore. Number one, because of the huge amount of concentration, but when they're letting in junk codes like Tesla, that's putting more risk in the S&P 500 than there is in an individual stock that I think is as solid as JP Morgan. That's my take. JP Morgan, see on the list here, it's up. What is it doing year to date? It's way better than the S&P 500. Super profitable business. I've liked this business for a long time. We can see that the rating, very attractive. And by the way, very attractive stocks do extremely well. Here's an index based on the very attractive stocks. Here's how it's performed over the last 5 years compared to the S&P. Double the S&P, almost double the S&P. Year to date, outperforming by 5%. So outperforms in the short term, outperforms in the long term. Short term, long term, outperforms. Very attractive stocks. So in general, I'm giving you a nice gift here. Very attractive. This is one of our very attractive stocks. Now, we actually just did a special training on an even better version of very attractive stocks where we went and said, very attractive stocks, they're great, we know it. But you know what else is really great is when a stock gets upgraded. Typically, those stocks move like 20-30% within a month. And then even better than that, we're going to take very attractive stocks that have been down 10% or more. So they're, they're due for a rebound. And then we added one other stringent criteria, a 1% or more dividend. I think one of the stocks in this, in this group has like a 10% plus dividend. So you take super strong performing kind of peer group of stocks, you say, oh, I want the ones that recently upgraded, which makes them even better, ones that have been unfairly knocked down even better, and a dividend. We think that's an incredible goldmine of stocks. If you're interested in learning more about that, take a look here. I'm going to drop a link in here for you guys to see. You can get access to those stocks at that link. I'm pumped about this. Like, this is one of the best. We do some— we do a lot of R&D at New Constructs on our dataset. We got proprietary dataset, best fundamental data in the world. If you haven't seen any of the trainings that explain that, trust me, Bloomberg doesn't create indices based on somebody's rating system because it's not good. Right? They don't create an index based on my core earnings because our core earnings, because it's not good. Here's another outperformer, core earnings leaders. How'd it do versus the S&P this year? Year to date, outperforming. 5 years, outperforming. Core earnings, that's just the income statement adjustments. That's just our superior income statements. We also have superior balance sheet analysis as well as valuation analysis. hidden liabilities and assets. Our rating system takes advantage of all 3. Core earnings just takes advantage of the income statement adjustments. That by itself has alpha. When you take the S&P and you weight it based on core earnings as opposed to market cap, what happens? You get outperformance. Short-term, long-term. Short-term, long-term. Outperformance. Alpha. All right, let's talk about some more specific stocks. This market correction cash-in bundle, this is a very special offer that I, I got to bring to you as we're talking about other stocks. So JP Morgan, we like it. It's down a little bit today, um, over the last month performed very well compared to the rest of the market. This is one of those stocks that I just think is— and companies— it's just, it's a crusher, you know. It's on my focus list, it's on our most attractive stocks list. I like everything about it, especially the fact that the valuation implies profits are going to decline by 20%. I don't think that's happening. The fundamentals are ahead of the stock price on this one, and that's a good place to be. Better than anything, in my opinion, even gold, right? Gold is great, but you know what? I can't measure how profitable gold is. So, the performance of gold could change on the wind, right? We could have some grand sweeping solution to all of our macro problems and gold goes down. We could have more problems. It goes up. Its gold move is going to be based on things we can't predict. We do, and I can't predict the future on JP Morgan, but I have a better sense of risk-reward. I have a sense of, oh, quality earnings, high-quality earnings, cheap valuation. That's what gives a very attractive stock rating that's been shown to outperform. That's more of a prediction. Now, it's not a prediction. I don't predict. I'm not a tax advisor. I'm not an investment advisor or any of that. I don't make predictions, but I do help people position themselves with more intelligence, and I think that's what we can do here with JPMorgan. All right, let's— we're not going to talk about Netflix. We're leaving Netflix to the end. Let's talk about J&J, another healthcare stock. What's going on with these guys today? It's up 2.8%. The rest of the market, I believe, is kind of flat here today, so that's a good number for J&J. They reported A couple days ago. So earnings beat expectations but still down. How are we doing over the last 5 days? Up 6%. Last month, down a little bit. For the year, up 10%. You know, this is a— this is what happens when you're in attractive stocks. We predicted the beat on this one. It got upgraded pretty recently from neutral, I guess when the stock went down a bit here recently. So in the last month, yeah, we upgraded it because it's cheaper and we think it's got good performance. And, you know, interesting, you know, maybe it didn't perform so well after earnings, but it has performed well since. We'll take it, we'll take it. Maybe people were paying attention to the rating. So yeah, this is high-quality earnings and, you know, decent valuation, right? Not awesome, not very attractive, but decent. So J&J didn't do so well with earnings, but neutral-rated to attractive-rated stock, and it did all right. And maybe it popped up, maybe it was down during the day and came back up, but they topped their earnings as we expected. And maybe it was a down day. I mean, that could have been a down day for the market. I'm not going back that far to know for sure, but 5 days, couple days ago was here. This was a tough day in general. But it came right back. That's the way it's going to be with the attractive and very attractive stocks, everybody, is that I'm not going to say they're immune to the ebbs and flows of the overall market, right? No one has a beta of zero. So we can't avoid that. That's what stock market investing is. If you don't want any kind of volatility, then you need to be in— I was going to say bonds, but bonds have been volatile too. I don't really know. If you don't want any volatility, just put it under your mattress. Answer to that. I was going to say real estate, but that's been crazy. Gold, commodities, those have been crazy. So, there's not really any place to hide from volatility. So, what I would recommend, though, is that you be in stocks that you can understand. If you can't avoid volatility, make sure that you can work with stocks where volatility will, in the long term, work with you. Volatility is unavoidable. Some things are going to get baby washed out with the bathwater. That's why we did this special bundle on very attractive stocks that are down. They're unfairly beaten down. They're going the wrong direction, which means they got more room to pop and pop fast. And that's what you saw here with J&J. It got cheap, popped up, bam. The attractive and very attractive stocks, they're going to do better when the market rebounds. And they may rebound well before the bad stocks. But I'm not saying they'll be immune from going down at all. They may go down some. All right, let's go next here. Let's go to Bank of America. So Bank of America, you know, this is why I like JP Morgan so much better. Like, I mean, Bank of America, still pretty good business. Financials, good business. Yeah, Charles, maybe a money market, but you got no return in a money market. So like, even though there's no volatility or less volatility in money market, you know, you still— I mean, we did, didn't we have some, didn't we have a little volatility in the money markets during COVID Didn't they break the buck or something? That was the global financial crisis. My bad. Anyway, back to the point here. Bank of America, I don't like it as much as JP Morgan. It's not on any of our lists. The economics of the business are bad. They got positive accounting earnings even though economic earnings are negative. I don't like that. They're almost headed in the opposite direction. That's why we got a false positive here. Really low return on capital, just not as well run. Not as well run. Second tier. for sure versus JP Morgan. Does that mean it's terrible, terrible stock? I mean, no, no. You've got good valuation, cheap valuation. It's priced as if profits will never grow. I don't feel so confident in the upside here because I don't have the quality of earnings. And that's what's beautiful about very attractive ratings is when you got both, let's go. When you got both and they've been knocked down 10% and it's got a dividend and it's recently upgraded, that's like an amazing— and by the way, it was hard to find those stocks. I mean, the team went through and the number of stocks we had to choose from, not many. It's pretty valuable. And as you guys probably know, less than 4% of the stocks that we cover even get a very attractive rating. It's a very select group of stocks. By the way, you have to be selective to outperform. And so, we made this enhanced group even more selective. So that's, that's what I think about Bank of America. What happened with Bank of America in the news? Let's take a look at that. What's going on so far? Up 6% year to date, down 14%. So yeah, you know, this is not one of the better stocks. It's gotten crushed with some of the nuttiness going on. It's coming back some. But yeah, I think you're going to see, you know, even though it's had a good run here in the last week or two, Weaker stock got beat up worse in the downturn. Got beat up worse in the downturn because it's a weaker stock, worse rating. Abbott Labs, another big cap stock, strong miss. What happened with these guys? Take a look at the full list. Abbott Labs up pretty good today. Year to date, up pretty good, up a lot. That looks awesome. Last month down. So this one's been a strong one. It's been a strong one. What do we have to say about Abbott Labs? Well, we thought they're gonna have a strong miss. What did they do? Strong earnings. Doesn't say if they beat earnings, surpass expectations. Well, they did it. Now overall stock, it's gotten expensive here recently, moved up a lot for the year. We can see We got strong underlying economic earnings, but I think we must have seen a trend where accounting earnings went up way more than economic earnings. So interesting in terms of what's happening there. So that's a bad sign, but they still beat. I wonder what it was. We can take a look here. Let's go into the— see that? You know, that's not always healthy. And the return on capital isn't that great. So you got a big jump. You can see NOPAT kind of stayed flat. Let's go. Let's go to the source here. Let's see what happened. I always like to do that. What's going on here? Let me take a look at the income statement. So net earnings, we see the big jump here. What was it that made the difference? Revenue is about the same. Operating expenses about the same. Oh, it was a big negative tax number. So the big negative tax number, which is just noise that probably most people saw through. Interesting. Anything else here to think about? Got a bunch of— otherwise you got a bunch of restructuring, inventory-related charges for impairments, and then restructuring. So not a lot there in terms of notes. It's— those are sizable, but Nothing to speak of, but they came in and looks like they beat the number. Probably the earnings number had removed that tax anomaly, the Wall Street number. And so it may have been a surprise on a Wall Street number as opposed to a GAAP number. Anyway, getting expensive. It's had a good run so far this year. We would say it's time to back off at this point in time on Abbott. So good month, good move. There's better risk-reward out there for folks. Let's talk about Albertsons. Oops. I'd love to talk about Albertsons. So we've been talking about another grocery company that's on our focus list that we liked a lot, Kroger. I was actually on TV talking about, you know, this is one of the stocks to buy no matter what happens with tariffs. Because Kroger has had a great year and a great month, and it remains on our attractive stocks list. Look, people got to buy groceries. And if you think about someone that's going to benefit from sort of maybe consumer spending stepping down, everyone's got to eat, but you don't have to eat out. So, you buy groceries and you cook. It's good for grocery stores. And Kroger is the US leader in terms of discount prices and the largest US grocery store. So that's our top pick. We like that business. It's still cheap. Albertsons today doing great, outperforming the market year to date. It's up 9.6%. I'm telling you, man, that's immune to tariffs. That's good stuff. And I like this too. Not as much as Kroger. I don't like it as much as Kroger, but I still like it. You know, in fact, this doesn't look too different. This is— there's gonna be some issues about Kroger and the merger stuff, that's not great. But I don't— I like this rating, guys. Here's why. I've got decent quality of earnings in a business where we know it's very difficult to compete in general. Very, very, very difficult. Very high barriers to entry. A lot of scale involved. Razor-thin margins. And then I got a valuation here, though, that's implying a permanent 30% decline in profits going into a world where we think More of the market is moving to them. So this is something to think about. If any of the team publishing team is on here, this is a long idea right here, folks. Just like same thesis for Kroger. This is good. Let's check the credit rate. Make sure no. I don't like this this credit rating as much. That's that's pretty heavily debted business. It looks like. But I do like how cheap it is, especially going into a world where I think cheap stocks are going to matter a lot. Like people are going to I think flock to value. When liquidity gets pulled out of the system, it's just like when someone takes money out of your wallet when you go to Vegas. Are you going to bet more or less when you got more in your wallet in Vegas? So, there's been a big drain on the global liquidity system, whether it's cutting government spending, whether it's businesses holding back, whether it's investors afraid of tariffs. Big shift. That hit to liquidity is what's causing all these super expensive stocks to go down. But people still want to invest. And you can invest smart. You just got to make sure they're in cheap stocks in the right industry with decent economics. And I think Albertsons fits the bill for me. This is something we would consider as a long idea. So, I like this. And it's been a good performer. I put it on this list of stocks that would probably do well no matter what happens with tariffs. Let's go to the airlines. We talked a little bit about United already. We're getting a new 10-K from these guys any minute now. They just, they just went on, they just came out with their earnings. And United Airlines down a little bit more than the market today, down 32%. For sure, this is one of those that's going to be affected by tariffs a lot. We've already seen people cut back on travel, heard probably all the stories, all the stories about people having trouble at the border. So yeah, United Airlines is a tough one, and this is almost a commodity stock. I mean, there's really— it's becoming an oligopoly more and more. Not a lot of competition here. Goodness gracious, you know, they've all been crushed. United Airlines getting crushed. And I wouldn't mess with this, you know, if I'm looking at the rating, neutral. Now the stock price is cheap. It's implying a permanent 40% decline in profits on top of a really good rise in profits here recently. I think we've heard like how the airlines are doing great again. They're making money. They don't make money for long. They're cyclical. It's a commodity. When you're on Orbitz or you're on Booking or whatever site you are using to find flights, what are you looking at? Price. Do you care who the provider is? No. Except there's a couple out there that are really cheap that you got to be careful. I'm not going to name any names, but they're like, oh hey, you can fly here for $49. By the time you check out, you're paying just as much or more than you on a regular airline because they're going to charge you like Where you stand in line, how many times you can get up out of your seat, how many, you know, whether or not you can bring your wallet with you. I mean, a lot of those super low rates are fake. Point being, they all kind of charge the same. You know, you just, you just got to get lucky and figure out where they've got excess capacity. And that's what the, these websites do. I mean, you know, if there's an industry that's kind of set up to have low margins, it's travel. Because there's how many websites out there that go out there and find you the best price? They got no way to sneak in high prices on you. And they really ultimately, at the end of the day, the profits on these guys, they depend on the business travel. That's where the margin is. Because when you're not paying for it, you might play, you might fly first class or business class, but not many people in the world are doing that unless someone else is paying for it. And you're looking to pay as little as possible to get on a plane because the experience from one plane to the next is not that different. Now, there are a couple airlines I do not fly. They're not the major ones. There's a couple where I've just had some bad experiences. The airline attendants were like freaking angry, slamming those overhead things down when they come through. Hurts my ears. But like 90% of them, I don't care. I don't care. I'm just going to go who gets me a good deal, which is not really a great business model. You're not differentiated. So whereas with Albertsons, I could tolerate a neutral rating, I would not on an airline, especially not with the way we're dealing with going into a potential Recession. Let's talk about Schwab. We like Schwab. I think this was a long idea for a while. We closed it because it went up when it got really cheap. We were like, you know, this is too cheap. This is too cheap. It's going to come back, and I believe it has got expensive. So neutral rated. What's happened here? What happened with Schwab? How do they do? You know, and Schwab is kind of near near and dear to my heart. You know, I think they they are one of the more honest brokers out there. And they're definitely telling individuals they shouldn't be trading a bunch of individual stocks as much. They just—they—they—I think they coach intelligently and fairly and honestly. And so that makes me a fan of Schwab. And look, that's up five percent year to date, flat for the month. So it's bounced back again. You know, your quality companies, quality stocks—they may get hit when everyone else gets hit because, as a friend of mine who's a hedge fund manager's. Loves to say, when the market's headed down, the beta is 1 for everybody. The key is when it's going to bounce back. Key is when it's going to bounce back. And it just— this bounced back a lot faster than the junk companies, junk stocks I like to call them. So yeah, Schwab has had a pretty good year and definitely good in this market. Again, when you're talking about good quality of earnings You know, you're gonna, you're gonna see, you know, they deserve a little bit more valuation here. They deserve a little bit higher valuation. Otherwise, nothing too objectionable for Schwab. All right, who else we need to talk about? I think I've moved through a lot of the list here. Wells Fargo, we talk about, let's talk about American Express. All right, quality of earnings. Oh yeah, looking pretty good. What happened with these guys this week? All right, down about with the market. The market's kind of mixed. You got the Dow down, the S&P up, the NASDAQ down. Year to date, American Express not done so well. Yeah, I mean, look, I think it's more of a niche credit card business. It's tougher. It's more commoditized. I think they got rid of the planning version of the business a while ago. There's a little more financial planning, got a little bit more opportunity to differentiate. And decommoditized. But as a credit card company, kind of not a lot there. And, and how you're going to like generate incremental profits, I think Amex is one of the best at it. And, you know, and it's kind of what we're getting here, you know, neutral, good economics, valuation probably about right, probably about right, probably about right. So yeah, I would, I would, I would, I would move to very attractive stocks. All right, who haven't we covered? Netflix. Alrighty, so classic good company, bad stock, really expensive. It's going to be out later today. And I remember a long time ago when I was talking about Netflix and its valuation, and I was on CNBC, and this is one of the few that didn't get recorded because I was, I was out of town and I went to some studio in St. Louis. Back before everything went on Zoom. And, and the studios I used in Nashville, they always recorded them for me and gave me the recording. And this one didn't get recorded, but it was one of the most classic CNBC interviews I ever did. I was on there. I was a bear. The other guy was a bull. And I was talking about the cash flows, which for Netflix until recently had been very negative. And, and this was a long time ago. You can see here cash flows have gotten positive in the last few years, not 2021, but before that. I can go back further in our model. Maybe I'll open that up. But cash flows were really negative for Netflix for a long time, and a lot of that was because they were capitalizing expenses. And I mentioned cash flows, and the guy on the other side, Wall Street analyst, said, what? We're talking about cash flow? Stock doesn't have anything to do with cash flow. It has everything to do with subscriber growth. And that was true, but it was a very classic moment. And Netflix is one where cash flow really kind of didn't matter because as Bill Gurley said in a podcast once, I thought it was brilliant, is that they raised so much capital that they could use that capital as a weapon against other content providers. And by using it as a weapon, he meant that they could be an irrational competitor for a sustained period of time. Irrational competitors are businesses that will lose money purposely to gain market share. It's irrational because a business is supposed to make money. Now, it can turn irrational if you believe that they, at some point in time, if they lose enough money, they'll make more than enough to make up for that. Has that fully happened with Netflix? I'm not totally sure, to be honest with you. I think if we go back over time and we look at free cash flow, Over time, I would imagine, because you can see here, right? This is this is the CD business. I'm sorry, the DVD business. Slow, low, low cash flow. And then when they get into streaming, negative, negative, negative, negative, negative, negative, negative. And not into 2020 COVID, a positive, then a negative again. And here they've turned pretty positive here recently. I mean, I think the capital is a weapon. If you can give someone that much, give you that much capital that you can lose that much money for that long, I mean, maybe it can work for you. I'm going to throw this into an Excel file real fast. We can look. What's that? So if you look through to this point in time, they lost $18 billion and This is a repeat. So over its life, negative $1 billion. So they're about to break even, about to break even if they can maintain the super profitability. And they were kind of able to kind of to be the exception to the rule. I mean, if you build it, they will come kind of has worked, you know, so pretty good on Netflix. So what does that mean for what to expect today? What does our rating say? Earnings distortion score, we got a miss. We still think the valuation is way too high. And that is because since we're in the model here, we can look at the implied growth baked into the stock price. You can see even in my optimistic scenario here where the valuation is going way up, we can't get to a price much above $540. So let's see how optimistic that is. Let's go optimistic here. It's got 25%. Let's just go 20%. Let's just keep the— Growth rate up for 15 years out. We'll leave margins about where they are. Let's save that off. This will explain to you, you know, really how valuation works. Our thoughts on valuation, how it works. It's a big model, so it takes a while to run. In the meantime, I'm dropping the link in here again to the market correction enhanced very attractive stocks. Promotion. Incredible opportunity on those. I think that's going to be a— one of the best bundles we've ever created, if not the best. Again, if the Very Attractive Stocks by themselves do great, well then this enhanced version of Very Attractive Stocks should do great. And by the way, I'm not just saying today, tomorrow, the next month. I'm thinking over the long, long term. And that's what you see here. 5 years, it's like twice the S&P. Year to date, 5% more than the S&P. So short-term, long-term, great outperformance. All right, Netflix model, here we go. Let's go optimistic. Okay, so to justify $960, they got to grow revenues at 10% compounded annually for 32 years, and they got to have even better margins than they do now on average over that time frame. What does that mean in terms of revenue? Applied revenue gets up to $1.2 trillion, $1.16, $1.2 trillion bucks. How does that compare to the market today? So if we can look at the S&P 500 and we're going to sort by revenue, the biggest revenue right now we have is Walmart. So Netflix is going to be twice the revenue of Walmart in 2057. That's a big number. Let's talk about— let's look at profits. What do the profits have to be? Profits are going to be $206— $217 billion. Compare that to the S&P. We'll sort by notepad, largest to smallest. Apple at $109 billion. So Netflix will be twice profitable as what Apple is. So we think it's expensive. We think all the good news is priced in. I don't think that Netflix should ever be as profitable as Apple. I mean, it's mostly a commodity business. We've seen like how many streaming providers are there these days? There's a lot. And there's a lot of— some are dying and some are coming online. Some are doing better than others. It's going to be a loss leader for Disney, for HBO, for these other firms, these bigger firms. They can afford to make it a loss leader. I don't think that Netflix is going to be able to be much of a standalone business for much longer, especially on Amazon and Prime. Like, so those are tough businesses to compare. So yeah, we're still bearish on Netflix. Still bearish on Netflix. All right, I'm going to take a couple of suggestions here. Who got in first? All right, timestamps. All right, Curtis, you're the winner. TTWO, Take-Two Interactive. It's a video game company, am I right? Yeah, yeah. No, don't buy it. Unattractive. Wouldn't do that. No reason, in my opinion, to own unattractive stocks when you can own very attractive stocks, unless you've got some thesis around how the business is going to dramatically turn around and, and, and be so profitable that this valuation stuff actually looks cheap. Or you want to just focus on the earnings distortion because there could get a beat. It might be right. There's a, there's a strong beat signal here because their accounting earnings are way below economic earnings. I'm sorry, core earnings. So that's an opportunity for a beat, assuming the Street estimates are based on this lower accounting earnings number. What about the new release of Grand Theft Auto? I'm telling you, it's already priced in, brother. I mean, look at this. You got to grow profits for more than 100 years to justify the price. It's all priced in. People know about Grand Theft Auto. Like, is this like, you know what I mean? Like, if you know about it, then it's likely that the smart analysts on Wall Street and everybody else, they know about it. So things that are in the public domain, it's very difficult to say they could be much of a catalyst for the stock because why wouldn't it already be priced in? And what I'm showing here is that it's already priced in. I mean, price to economic book value of -4.4. These guys have some major liabilities. Oh yeah, you got $4 billion of debt. What's the market cap? $37 billion. So yeah, 10% of the market cap in debt. So it's, it's going to be difficult with this much debt on the books for the company to ever generate enough profit for investors to see anything. So Grand Theft Auto, not a fan of the game myself. My kids like it. I don't really like all that violence. I may have even turned it off because it's kind of nasty, or maybe I just browbeat them to the point where they quit doing it. By the way, I would not allow kids under like 17 to play this game. And only because, like, you know, the 2 older boys, like, they've gotten into good colleges. They've done really well. On a lot of levels, I'll let them do that stuff. But my younger son, no, not even close. That's my take on that. And I think more people might be thinking about that these days as they recognize how these media companies are taking over our kids' minds. I don't think that's a good thing. So, yeah. Alrighty. Thanks everybody. We'll be doing something like this next week. We published a new report on Tesla. I think you guys maybe know if you follow me, like what we think about Tesla. This is a new report. It's kind of like a— it's awesome. I said to the team, listen, it's been a while since we talked about Tesla. None of our thesis has changed. In fact, all of our theses have been proven true, all of them. But let's put together a report that goes through every single argument, positive or negative about Tesla, and just let our readers decide. Let our readers decide. So excited to be sharing that next week. Right now it's available to clients only. Uh, we may release it next week, but I'm gonna— I'm definitely gonna be doing an earnings watch on Tesla as well. I'm excited to see what's gonna happen there. I think we're gonna continue to see a lot of, a lot of wheat separated from chaff here. We're gonna see which companies can handle a little adversity and which can't, and we're gonna see which valuations can handle a little adversity and which can't. And I'm telling you, a valuation that That's already this extended cannot handle any adversity. It's going to get crushed. But a valuation that's really cheap like this can handle a lot of adversity. That's why you're seeing these stocks outperform and other stocks underperform. Okay, thanks everybody. Have a great weekend. Have a great holiday weekend. I appreciate you being with me. Leave me some comments in the survey when you're done, and for sure. Make sure you take advantage. 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That's, that's my story and I'm sticking to it. Thank you and have a great weekend.