Three-Stock Lunch: Broadcom, 3M, & Bowlero

Published: Sep 05, 2024 Duration: 00:05:03 Category: News & Politics

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>>> WE'RE HOVERING NEAR THE WORST LEVELS OF THE DAY. AS STOCKS SELL OFF, IT'S TIME FOR THE THREE STOCK LUNCH. HERE WITH OUR TRADE IS THE COFOUNDER AND CEO OF DEFIANCE ETF. FIRST UP, IT'S GOT TO BE BROADCOM. I HATE TO DO THIS TO YOU, BUT IT'S A BIG STORY. THE STOCK IS A BIG LOSER TODAY. IT'S TAKING A TUMBLE ALONG WITH THE REST OF THE MARKET. THE CHIP MAKER REPORTING -- THEY REPORTED GOOD THIRD QUARTER RESULTS. THEY BLEW PAST EXPECTATIONS, BUT GAVE MUTED GUIDANCE. THE STOCK IS NOW ON PACE FOR ITS LARGEST DECREASE SINCE MARCH OF 2020. THAT WAS DURING THE DEPTHS OF THE VIRUS PANDEMIC. WHAT'S THE TRADE? >> I THINK THAT THE BIGGEST LOSER WAS USED. >> IS A DIP. I LOVE THIS STOCK. THEY ARE ONE OF THE BEST CHIP PROVIDERS OUT THERE THEY ARE PART OF 5G, THE WIRELESS SIDE OF THINGS. THE BIGGEST CLIENTS ARE APPLE, GOOGLE, THEY TOUCH ALL OF THE MAG 7 NAMES. EARNINGS WERE VERY GOOD. THE MARKET IS EXPECTING A LITTLE TOO MUCH. THERE'S THIS OVERGELLOUS NEED FOR FUTURE OUTLOOKS THAT ARE HIGHER AND HIGHER. BUT WHAT WE'RE SEEING HERE IS SLOW AND STEADY. THE AI RACE CONTINUES. I LOVE THIS. WE EVEN LAUNCHED ETF ON IT. THERE'S SO MUCH DEMAND ON THIS. >> I WAS EXCITED UNTIL THE ETF. LET'S TALK ABOUT 3M. AN UNDERWEIGHT AND PRICE TARGETS ABOUT $3 WHERE WE ARE NOW. IT'S RALLIED. AND A LOT OF TALK ABOUT THE NEW LEADERSHIP AND SO ON AND SO FORTH. WHY DO YOU THINK THIS ONE IS AN ATTRACTIVE NAME? >> I LIKE THIS LONG-TERM. I THINK BROADCOM WILL PLAY OUT SOONER, BUT IF YOU'RE LOOKING FOR A STOCK ON SALE THAT CAN PLAY OUT IN THE FUTURE, THEY HAVE HAD KIND OF A ROUGH FOUR TO FIVE YEARS. THEY HAVEN'T DONE A LOT OVER THE LAST YEAR. THEY HAVE SETTLE THEED THEIR LAWSUITS. THEY CUT THEIR DIVIDENDS THAT THEY HAVE CASH FLOW. AND THEY ARE INVESTING IN THE MARKETS THAT MAKE SENSE. CLIMATE, TECH, INDUSTRIAL, ROBOTICS PART OF THE MARKET. THE AI TRADE INSTEAD OF SOME OF THE BUSINESSES THEY WERE IN BEFORE THAT WEREN'T PROFITABLE. WITH A NEW CEO, TA TAKES TIME TO CLEAN UP SHOP. THEY PAY 2% DIVIDEND, $400 MILLION BUYBACK. THEY ARE ON THEIR WAY TO MAKING CHANGES GOING THE RIGHT DIRECTION. I THINK IT'S LIKE A TWO TO THREE YEAR HOLD FOR ME. >> THAT'S A BLUE CHIP NAME AS THE WELL. IT'S NOT UNHEARD OF. FINALLY, LET'S TALK ABOUT V BOWLERO. THE REVENUE IN EXPECTATIONS, WHAT'S THE TRADE ON BOWLERO AND HOW MUCH MORE AM I GONG TOGOINGO BE BOWLING IN THE COMING MONTHS? >> I HATE TO SAY THIS BECAUSE IT'S SUCH A FUN COMPANY. WHO DOESN'T LIKE BOWLING. I THINK THEY GO AT IT IN A UNIQUE WAY. IT'S THE HIGHER CLASS ENTERTAINMENTMENT. THEY HAVE A MEDIA VIBE TO WHAT THEY ARE DOING. 300 LOCATIONS GLOBALLY, A LOT OF ACTIVITY. BUT I THINK THEY HAVE DONE QUITE WELL, BUT THEY ARE SLOWING. IF YOU LOOK AT REVENUES, WE HAVE ABOUT 12.5%, WHICH IS GOOD, BUT SLOWER THAN THE LAST THREE YEARS. THEIR GROWTH OUTLOOK IS 6% OVERALL. THAT'S LOWER THAN IT HAS BEEN. AND I JUSTCAN'T GET EXCITED ABOUT HYPERBOLIC GROWTH IN THE BOWLING INDUSTRY. A GREAT COMPANY. THEIR LEADERS, BUT NOT A BUYER HERE. >> BEFORE WE LET YOU GO, I'D LIKE COMMENTARY ON THE SELLOFF. YOU ARE SOMEBODY THAT WATCHES A LOT OF ETF FLOWS, THAT SORT OF THING. WHAT ARE THOSE FLOWS TELLING YOU ABOUT JUST HOW DEEP A POTENTIAL PULLBACK COULD BE IN THIS ENVIRONMENT? >> IF I CAN REFERENCE OUR OWN FLOWS OVER THE LAST COUPLE DAYS, WE HAVE SEEN A LOT OF FLOWS INTO MICROCOMPUTER, BROADCOM, MICROSTRATEGY, SO THAT TELLS ME INVESTORS ARE BUYING ON THE DIPS HERE. THEY THINK THAT PERHAPS THE MARKET WILL RECOVER. IT'S AN ELECTION YEAR. WE HAVE A COUPLE MONTHS TO GO. SEPTEMBER IS SEASONABLY TERRIBLE. WE GOT THE SLIGHTLY WEAK ER JOB INFORMATION, BUT THE FED IS ON THEIR WAY TO CUT. AND WE HAVE FOR ALL INTENTS AND PURPOSES SEEN A SOFT LANDING HERE. CORPORATE EARNINGS ARE GREAT. 90% OF S&P 500, 2 TO 3% GDP. WE'RE IN A GOOD SPOT FOR RECOVERY. I THINK IT'S GOING TO BE VOLATILITY IS PAR FOR THE COURSE

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