The Capitalist Investor

Holidays / Black Friday / Stocking Stuffers, Ep. #204

November 22, 2023 Strategic Wealth Partners
The Capitalist Investor
Holidays / Black Friday / Stocking Stuffers, Ep. #204
Show Notes Transcript

Will Microsoft soon take the throne from Apple? We delve into the perceived lack of innovation from Apple and the escalating investments from Meta in the AR and VR industry. And, what's this about Vuzix joining the AR glasses realm? 

As always, we make sure to cover where the best deals are for Black Friday and, surprise surprise, they're not in tech! From pre-packaged Thanksgiving dinners to unpredictable furniture sales, we leave no stone unturned. In the world of stocks, we're focusing our sights on up-and-comers in the EV market, while keeping our eyes peeled for traditional car stocks, a hot topic for our hosts. 

In the spirit of the season, we dish on our favorite Thanksgiving foods and introduce you to the mythical beet sandwich. Will this be the year a $10 Thanksgiving feast goes viral on TikTok? To wrap up, we delve into a sports update and share our current stock picks. Buckle up and let's get started; you don't want to miss this episode of Capitalist Investor."

War for the Tech Giants:
Microsoft and Apple are locked in a battle for world dominance, with Microsoft on its way to overtake its traditional rival. While Apple faces criticism over a perceived lack of innovation, particularly in virtual reality, a wildcard enters the fray. Meta has built a considerable investment footprint in AR and VR technology. The hosts also spotlight Vuzix, a stock specializing in augmented reality glasses and seen as a potential acquisition candidate.

The Illusion of Black Friday and Cyber Monday Discounts:
Once steeped in both anticipation and buyer's remorse, Black Friday and Cyber Monday could potentially lose their luster this year. According to the hosts, packaged goods and appliances might see the biggest price drops, while tech and furniture prices could stagnate. They also discuss how consumer attitudes have shifted, with less confrontation over mispriced items. This trend could affect the sales of big box stores dealing with compressed margins and a reduced sales forecast.

The Unhealthy Reality of Processed Foods:
Thanksgiving brought about a wave of patrons looking for cheap meal options, and the hosts sounded the alarm over heavily processed and unhealthy options. They weigh in on the health implications based on their own experiences with fast food and condemn the false economy and health risks of rock bottom prices when it comes to what we put on our plates.

The Rise of the EV Market:
Amid discussions about growth and green initiatives, electric vehicles (EVs) have piqued the hosts' interest. They cover stock movements from earlier in the year, interest rate hikes affecting businesses, and the current market valuation. The hosts show particular interest in a company with significant potential in the EV space, setting them up as potential winners in the EV market.

OpenAI under the microscope:
The hosts dive into the dismissal of OpenAI's CEO and what that may mean for Microsoft. Speculation arises over how this could affect Microsoft's strategic plans and whether they may incorporate OpenAI's technology into their own products. Similarly, Elon Musk's involvement with OpenAI comes under scrutiny, with speculation mounting about his intentions and any potential developments.

Hello, and welcome to this week's episode of The Capitalist Investor. As always, you have me, Diamond Hands D. And we got Tony the Tiger and Cool Hand Luke. What's going on, guys? How we doing? Living the dream. Nice. Big Thanksgiving show this week. Yeah. Oh, yeah. Coming in hot. Talking about turkeys, talking stocks. We're gonna talk some stocks today. I love food. I can't wait to pick out. I really can. I'm so excited. Just dig into stuffing. I'm sure we'll hit on, like, our favorite Thanksgiving foods. I'll start off stuffing. Oh, my gosh. I know we'll talk about it, but. I'm just going to this is great stuff that people want. That's right. Stuffing and turkey is overrated. I'd rather have ham. Just saying. So I made one of my relatives makes this. I don't know. It's like cranberry in a can. Like the big red cylinder looking thing. Yeah, right in the bowl. It's got the ribs on it. Right? Well, my one relative makes sandwiches. I call them sandwiches, and I actually call them beet sandwiches. And they keep on yelling me like, you know, it's cranberry. And I'm like, you made a sandwich out of that thing? I call it whatever I want. That's right. They basically take that thing, they cut it up, they put cream cheese in. The middle of it. Right? And so the one year I call them, like, just messing with everybody. I'm like, hey, Amp dad, while you're in the kitchen, can you go grab those beet sandwiches? And everyone just started laughing. Actually, this year, my surprise to the whole family is that I made everyone a beet sandwich shirt. That's not a surprise anymore. It's like, can you please pass the beet sandwiches? It's a red shirt with what, dude? It's going to be electric. Can you bring one in for I'll. Show you the picture of it, but I got a Beat character holding a sandwich. Come on, dude. It is electric. I'm going to turn that house upside down. Win in Thanksgiving. I love it. I love it. All right. But yeah, I think you're right, Luke. Stuffing definitely the I agree. Yeah. Without just tell it how it is, Derek. Corn right on top of the mashed potatoes, man. I do like the mixing. Yeah, I do like that. Usually, like, the next day, make a little snack. Turkey, mashed potatoes. The diet officially starts after Thanksgiving, right? The diet officially starts on Monday. That's right. We got some interesting stuff today. I know. Today we're talking OpenAI Microsoft. There's some heat coming in over there with what's going on with CEOs and we're no longer CEOs, things like that. Talking Black Friday, kind of like we talked about earlier, about savings versus pre savings before the pandemic, savings after the pandemic compared to pre pandemic savings. Basically, there's nothing going to be on sale this year is what they're saying. So we'll talk number four, we're going to talk about how to survive holiday budget. How do you buy things for under $10? Essentially, basically somebody on TikTok created, made a Thanksgiving dinner for $10, serves one, but it's$10. We'll talk about that. And we got I'm sure it canceled that you guys came in hot with. Which we'll get to, I don't know, did we have canceled more stocks? I don't know if we're going to. Have a cancel, we're canceling stock market because all it does is go up apparently now anyway, number one, OpenAI, Microsoft. So essentially the OpenAI was just chat GPT. So the technology AI that everybody talks about nowadays, their CEO was just fired, which kind of blindsided Microsoft. Apparently Microsoft did not have any idea this was happening until like ten minutes before it actually. Now why are they pissed off? Because what I see is that they're 49% owner of this invested $10 billion. Right, six months ago or something. They own 49%, but they have no control over the board. And the board fired that dude. Now they're like, what do we do with him? All the employees want to follow this guy because he's, I guess a great CEO and things like that. So I guess we'll see how it plays. The question you have to ask is why did this happen? What does that do for. So I'm sure Microsoft talked very intensively with the old CEO, right, and had some plans about future growth, things like that. Right. Now the fact that they were kind of blindsided by this means they may have to revisit all their strategic planning over the next year. Two years of execution. I mean, there's all kinds of cloud service software. They didn't microsoft just hit like all time highs too. Yeah. And I mean they were thinking about incorporating microsoft was thinking about incorporating this technology into the Word, like Word Documents and PowerPoint, all this stuff, right. So I need a computer to write. All my done writing. I'm not saying that the CEO not being around is going to change his plans, but there's definitely some more planning and things that need to be talked about again, right. Especially as we enter into next year. And as we all know, next year might be very important to make sure you're hitting your numbers. Because if we are right about the economy, recession, things like that, I thought. It was pretty interesting. OpenAI was like elon Musk was a co founder, co owner, and he dipped out in like 2018, dummy. Now he's got gronk on Twitter. Yeah. I mean, who knows what that dude's thinking? He's probably thinking like, I'm just going to do this on my own and really crush it. He's going to start putting GBT in. Your head with the microchip, the neurolink, whatever it is. Yeah man. There's a South Park episode I'd love to talk about right now related to. That, but anyway but Microsoft is about to overtake Apple as actually the biggest company in the world. That's something I would like to bring up as well. We've talked about before how we like Microsoft over Apple, and this is showing you just how far ahead of the game is Microsoft is with innovation still, even as a two and a half trillion dollar company, microsoft is still innovating compared to someone like Apple. Apple does, which you hear about all the time. Yeah, they're just not innovating. And I think I had a conversation with somebody this weekend about what happened to the Apple Goggles, the VR Goggles. Weren't we all supposed to be Iron Man and wear Goggles? That's gone, right? No one's wearing them, no one buying them. I should like to do some research. Meta has done the best job with AR, artificial augmented reality and then the virtual reality Meta. Facebook's actually done probably the most for that space, which is very dumped billions. Of dollars into the Metaverse, the one stock like that whole thing and it's gone. The one stock going to hit. I'm sorry, Derek. Go ahead. Yeah, actually I did see the Quest came out with a new VR headset, the Three, and I looked it, looked into it a little bit. It appears to be quite a jump from what it was. And it does have it's very cool. It has that augmented reality. So you're looking through the glasses and you can see reality, but then you can see people and things animated in there, which isn't easy to do. Well, if you want to talk about a stock that hits on that exact thing. One of the reasons why the stock was a multibillion dollar stock at one point, now it's only 100 million dollar market cap. The stock is vuzix. V-U-Z-I is the ticker. This isn't recommendation advice, we don't own it. Okay? This is a very speculative stock. That's why the stock dropped from a $2 billion market cap to 100 million. But their technologies, they're down 80. What is it? I don't even know the math. 95% now $2 stock, it was trading at like 30, I think $40 at one point. But apparently their technology, seconds of that. Their technology is apparently the best with the most patents around. The augmented reality of glasses. So this is kind of where it starts to become a question. Is this stock going to get acquired? Is someone like Apple going to come in and say, hey, instead of trying to build this from the ground up, we're going to acquire this company for 200 or $300 million, maybe pay two, three times market value, but they get nice software and technology for $300 million. Right? So this is where M and A activity probably will start to happen as evaluations of stocks like this have gotten cut so much just because they were very speculative stocks to begin with. A lot of M and A activity could happen within technology, I think, next year. This is an example of that. I think it'd be so cool, too. One area I could really see that is we're looking to redesign our office. It'd be really cool to put some goggles on and walk through this office with like I'm sure they do. I'd like to see it, but the people we're working with don't have it. Yeah. What about clothes? If you want to try and clothes instead of actually trying them on, you can somehow see yourself in some sort of way with the clothes on already. There's all kinds of utility cases for this technology. Yeah. All right. That's probably five minutes. I did not time that. So Black Friday is next. So basically the headline of the article we were looking at was essentially 35% of the Black Friday deals are going to be the same exact prices that they are right now. And I'm just going to go and say, start this one off. That seems to be the case for a long time. I don't understand the Black Friday stuff because it doesn't seem like you get that great of deals unless you're looking for something specific. Like TV is always a big one. I can see if you need a couple of TVs. And I know going out at five in the morning is like a fun thing to do. I'm not questioning. I don't recommend some people like it, and that's great. But yeah, I've always found better luck just kind of sifting through the deals online on Friday. Yeah, Cyber Monday. I remember growing up, back in the day, with technology becoming so much more important, like the mid 2000s, my dad would always be on Newegg. Every Monday, Cyber Monday newegg had the best tech deals you could. I remember that they even arrived. I looked up the stock. They're a public stock. Did you know this? Newegg? Yes. The technology, like, online store, right? Yeah, like the Amazon of technology. Essentially. This stock also has gotten beat down heavily because Amazon's just probably taking their lunch over the past decade. But yeah, I remember that's the thing to do. I would rather be a Cyber Monday shopper. But it's very interesting. The best deals found were packaged goods. Yeah. So explain what that is, because I had to look it up. Do you know what? You can explain what it is. Basically, it's like things we use all the time, like shampoo. It's like consumer staples kind of things like shampoo and perfume and things like that. Obviously, no technology is going to be on sale. Like the things that don't expect to sell on phones. iPhone is never on sale. It's always going up. Right. You ever seen a sale on an iPhone? Like 1020 30% off now? No. So don't expect that. But they said 35% on that stuff. But that's always appliances. I mean appliances. You always yeah, appliances. Maybe a TV or two, I guess. That's always the big deals. If you need TV, but they said they're expecting furniture to be cut by 10%, 20%, but they're not expecting big furniture sales. And I'm like, Why? Well, my question would well, I know the answer to that. Everyone bought everything during the pandemic. Wasn't everyone buying everything on wayfair and beefing up their house and stuff? Who needs new couch when you bought it two years ago when you're locked in your house? But it's also the margins. I mean, that's what matters when it comes to the actual how much profitability these companies are making when they sell products versus what they get them at. That's going to determine, obviously, the sale prices. So the fact that you have some of the biggest discounts in certain areas tells you that you're overpaying most of the time for most of these items anyway. Oh, yeah, right. Just something to think about as well. A lot during the things that I noticed through this last earnings seasons, going into the holidays was a lot of the big box stores and things like that said that the manufacturers have been compressed with margins and they're not expecting a lot of sales this year. A lot of people are just buying the overly discretionary items. They're buying Christmas stuff, but they're not spending big dollars this year because everything else is so expensive. My take would be that I think that companies have learned the game now, meaning that I think companies have learned that no matter what something is priced at, people will still spend the money. That's what we've seen this whole entire. Year until they don't have the money. I'm saying, who cares? They discount 1015 percent. I mean, is the experience of Black Friday shopping more important than the actual deal itself at this point? Yes, exactly. Sure. Yeah, that's my point. That's inflation, right? That's the definition of inflation, is more dollars chasing fewer goods. And I think that has a lot to do with what's going on. And like I mentioned last week, I'm shopping for a car because my lease is up. I've never had so many kind of take it or leave it offers, you. Know, they're they're not chasing you down? No, they're like, here's the price, we'll see you later. I was like, okay, yeah. And, you know, I don't people I don't think people are willing to walk away. I think that's the thing. I'm not going to pay these prices. I don't mind driving whatever I need to drive. But I think the mentality, especially over the last three years, is I want this and I'm going to buy it. And if it's on sale, great. If it's not, that's okay, too. Trying to at least mix in like some free floor mats or something, some free window tint? No. Well, I also don't think people are confrontational anymore either. I know my grandparents generation, I have my parents in generation, or they thought something was mispriced. I mean, they would let you know about it, or they would walk away from a deal just because they didn't want to pay the price. Now it's like whether or not they're saving money, whether or not that generation. Didn'T have credit cards either, that they can rack up and then also apply for new credit and get their limit pushed up. Yeah. I just know when people are forced into scenarios to buy things nowadays, for some reason, people just don't push back. It is what it is. All right, good luck out there. Yeah. Hope you get some good deals. What else we got? Food. $10. Oh, you came in hot with this, too, Tony. Apparently you've been a dumb. I read it and I know I just read the thing, and they were so the TikTok thing said they showed how they got this dinner together under $10 within 30 seconds. And I'm, like, thinking I'm like, okay, they spent, like,$3 on two turkey legs, and then everything else was like, a dollar. A dollar for instant mash and a dollar for pack of frozen Brussels, brussels sprouts and butter, like a can of gravy and stuff, and a piece of pie for a dollar. I'm like, I was looking at this and like, huh. Nowhere in hell does there a store that you can piece that together. How many stop? There was, like, seven items. They made seven different stops to get this. How much did you spend in time and gas and just travel to get that meal together? Also, how many preservatives and additives are added into this kind of thing as well? It can't be all this stuff if. It'S cheap, it's very processed, and it's very not good for you. The whole point of Thanksgiving is, like, to actually it was almost back in the day, go hunt your own turkey. Like, go kill the damn animal yourself. Cook it yourself. It's the experience aspect. Another experience. Why are we so, like, instant gratification in today's world, who cares even about the $10? It's more about I think the more important part to that, that most people would get excited about is the 28 minutes aspect is the new thing for. Presidents to pardon the turkey lives. Because Joe just did that. Did he really? They've been doing that for a long. Yeah, everyone just pardons the turkeys, right? They bring them, throw them on the front lawn and say, Go, that's animal abuse, guys. Jesus, go back. Anyway. Well, speaking of the processed foods, so I was at Costco this weekend, and Costco has a premade dinner. Did you see that one Thanksgiving dinner? A lot of stuff. Oh, I did not see it, but I heard about it. All right, explain it to me. It's $36.$36. So it's not $10, that's for sure. But I would say it's probably in, like, a nine x 13 container. It's probably got a good quarter turkey in there already seasoned up. They had green beans, mashed, potatoes, stuffing. It looked really nice for$36. It's not bad. Yeah. I don't think about eating healthy all the time. But what has happened recently I don't eat at McDonald's anymore just because every time I go there, I just always feel so awful and the food is so cheap. And I see all these videos online. It's just like, I can't eat. That hamburger has been sitting behind my stove for two years and it's got no mold on it. Yeah, I don't get that. It randomly started hitting me one day. It felt like eating fast food. I was ruined for two days. I just felt like crap garbage for two days. Before that. It's like you can eat whatever you want and you feel fine. It's just really weird. That kind of getting older aspect of how your body handles certain things. It's annoying. It's really annoying. Maybe it was COVID, maybe the way they process and keep the food down or keep the price down on something. Here comes the conspiracies again. That's not a conspiracy. Have you heard about their French fries? No. Not made of real potatoes. No, they're real potatoes. But the chemical that they have to put on them, if you ever notice the French fries at McDonald's, they don't have any brown spots or knots. I think they're called that's because they add a chemical when they're growing the potatoes. And when they harvest them, they basically have to put them in a shed for six to eight weeks. I want to say, because they're toxic, they have to off gas all the pesticides that they put on them to. Make them that way. Making like real French fries out of a baby fry. So good. Yeah, it tastes good. Tastes really good. Yeah, get them right out of the fryer. But yeah, if you do that, fair fries. I just came up with the cancel. Before we get into sock picks, the canceled topic is going to be Matt Canada. Oh, yeah. Matt Canada is canceled. The Steelers offensive coordinator. Oh, we got fired from the so. Yeah, I just found out when I sat down here. If you don't know who that is, he's been a very hot topic around the NFL. There's Fire Canada chance going on all over the country. He's the offensive coordinator of the Pittsburgh Steelers. Every Pittsburgh Steeler game the chance go fire canada. But I mean, what do you do when you're given a quarterback? Like picket? I know, man. Everyone's given Bill Belichick is he on the hot seat? Be like, that dude's won 1000 championships in the last 25 years. He loses, obviously. He loses a hall of Fame quarterback. Yeah, he's going to suck for a few years. He doesn't get a pass. Yeah. I got to commend though. Like the Steelers though, man. I'm a Browns fan, but Tomlin always seems to put some kind of winning ish team on the field. Yeah, I don't know how they're doing it this year, man. I really mean, you guys didn't look great Sunday either, but you guys looked a hell of a lot better, I still think, than the Steelers. Yeah, well, the Browns are missing their two best players. Exactly. All right, well, let's close things down here with some stock picks. So we thought we'd each come to the table with a name or two. Kind of, what is this for just kind of going forward or for 2020. Going into a holiday. I'm like, hey, what do you guys like right now? Like, stocking stuff or kind of idea? Could be something our firm owns, something you own. Personally disclose it. Yeah. I'll go. Mine first. I guess. I don't own it yet, but I'm thinking about pulling the trigger personally. It's stock we don't own currently right now. I don't even think we would take a look at it just because it has way too much debt on their balance sheet. It doesn't fit our strategy. But I'm looking at Advanced Auto Parts stocks gotten absolutely hammered this year. I think it was trading close to, like, 100 and $5200 a share beginning this year, end of last year. Now it's down to$50 a share. So it's down 70%, down a ton. But I know we do like firmwide. We do like the auto industry. Ours are the oldest they've ever been fleets. How are the other ones? Do you know how, like, all the other Sully or AutoZone are doing? They're rocking. They're like, at all time highs. So you're hitching your wagon to bad management. Yeah. O'Reilly, I think, is the best. O'Reilly is the best. Well, they just got new CEO. That's one of the reasons why I'm pulling the trigger. It's a turnaround story. New management team coming in there. They're selling off the Canada business. They're going to focus more on the US. Business, turn that into more of a profitability to make the margins look a little better over long term. So it's more of a turnaround story. That's why it's risky. It is speculative. They do have a lot of down the balance sheet. Just cut their dividend. I'm looking at Advanced Auto Parts, maybe start dollar cost averaging in a little bit on my own personal money. Interesting. Tony always gets mad at me. He's like, you don't come know. He's always just coming off the cuff. Well, I just pay attention every single second of the day. He just knows. He's just dialed in. It's like the Matrix. All right, what do you got? Is I've talked about it before. I just missed on this one. Even though I have identified it as a company I liked a long time ago. Never pulled the trigger. CRM. So I was trying to find one of those beaten up stocks as well, but this is actually in our portfolio, I believe, select Equity. So more of the growth portfolio. It's up big, but it's still down from its all time high. It's around$225 right now. And I think the all time high broke through 300. So it's had a big year so far, but everything in the tech sector has. And the reason that I like it, I think Mark says this all the time, it's a mission critical stock. Right? It's something that if you buy into the salesforce system, it's your CRM for your company. You're not getting rid of it. And so that's what I was trying to look for. My theme was, if the economy slows or there is even a recession next year, what could survive? So that's why I picked that one. It's also, like a lot of other tech companies, was super bloated with too many employees. They made a couple of bad acquisitions. They seem to have cleaned a lot of that up over the last 18 months. So CRM. Nice. Okay, so mine is Aspen Aerogels. So I own this, and so does the firm. And I've talked about it earlier in the year if I was on TV or whatnot. So what they do is they make, like, this insulate. They have a product called Pyrothin, and basically it's an insulator around the batteries of electronic vehicles, EVs to prevent fires. And it's what do they call that technology that's oh, patent. They got a patented idea, and then now they're starting to sell it to other bigger automakers. License it or something. Yeah, they license it. They sell it. They sell their product. So they made a couple of big announcements already this year. They're expecting to make more announcements. They have a backlog of work. They've recapitalized their debt. They're building a second factory. So the growth initiative is there, especially with the drive of the green initiative, drive for EVs and things like that. But I talked about it early in the year. It was $11 a share. Back in April and August, it dipped down to like, five or six. It's back up around, like, ten. And I think it just got sold off with a lot of that. As interest rates were going up all year, I think small businesses that had debt were just getting crushed. And if you weren't the top seven companies of the S and P 500, you just had a bad year. But this company is back to where it was earlier in the year, and it's got a good vision. I think it's got good potential in a very infancy. Avs are in infancy, I would say. Not everyone has them. I don't know what it's been a. Very up and down year for them. The only reason I know that because I paid close attention to it. I did a lot of research with the team to pitch that, like, in February or March earlier this year, on, like, a Maria show, Mornings with Maria. I've been watching that since because I pitched, like, 850. And this is why you just never know with timing because we're looking at stock for more of a long term investment. As long as we still believe in Thesis, we don't think nothing major has changed. I know we bought it near like the$859 mark. I think it was right around there. Don't quote me on that. And then we dollar cost average, we actually took in second position in there lower at six or seven to dollar cost average into that position. And now it's higher than when we bought it at. But we went through a lot of rough phases with that. I just know it's very interesting. Just market timing. As long as no big thesis has changed on the stock. Sometimes valuations can go up and down on a yearly basis, on an intraday basis. But the story for the most part makes sense. The story is there, and you know what I mean. If they land a couple of big more contracts, sky's the limit. And then they're also a smaller company. They're only a $750,000,000 market cap. I mean, they're not even a billion. They're very small. They're in a growing space. Yes, I like them, so I push some chips in on them. Yeah, two car stocks. Two cars. Yeah. One's for the dinosaur cars and one's. For the new cars. I like it. That's a good take. All right, well, happy Thanksgiving to everyone out there. We kind of already covered Thanksgiving, so I don't think we need to do it again. But hope you guys have a great break, maybe long weekend. If you have any questions, comments for us, let us know at and we'll talk to you next week. The opinions expressed in the podcast are for general informational purposes only and are not intended to provide specific advice or recommendations for any investment, legal, financial or tax strategy. It is only intended to provide education about the financial industry. Please consult a qualified professional about your individual needs. Hot takes.