Russia Sanctions Lifted? What the US-Russia Energy Deal Means for Commodity Prices

This is Invest Talk, from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein. Good afternoon, fellow investors, and welcome back to Invest Talk. This is our October 26th, 2026 edition of Invest Talk. It's a start of a new week. A very interesting week, because we have the continuation of earning season, but you also have Fed Day coming up the day after tomorrow that announcement. We know there won't be much change in rates, but the market won't react to that. The market already knows that. It's about what they prognosticate about the future, not just for December's meeting, but 2027 and we're almost there. We're almost through the first month of the quarter. I mean, there's just slightly over two months left in the year. Can you believe that? Pretty crazy. So lots of unpack, lots of talk about during this hour and we're here for you. Whatever's on your mind, we want to talk about it. We want to know what's on your mind. The only way for us to know what's on your mind is if you give us a call. We are not mind readers. So we need your feedback, your input, your questions, and the best way to do that is by reaching out to 8899 chart. You can do it live, 45 Pacific time. That's great. I'm recording this show or you can do it after hours as well. Either one works, we will answer those voice big questions on a future show. So that's what's our is about and just to before we pivot, I want to thank everybody who came out for our Invest Talk Retirement Summit. It was a very productive in person event. Some wonderful feedback. It was this previous Saturday in Irvine, California at our office, at our office complex. So if you were there, you're able to kind of see where we work every day in the KP team and panel of guests, experts covered cover tax strategy, estate planning, real estate investment strategy, as well as financial planning. So thank you all once again for showing up and participating. Now in jibis and just in just a bit, we are going to talk about today's market performance as always and right now. So topics, but first, let's tackle this first color question now. Very much enjoy your show. Listen to you nearly every day. I do have a question about a stock ticker symbol. PBR petrol natural gas headquartered in Brazil. Could you take a look at that and tell me what you think. Thank you. Have a good day. Well, this is an interesting one because it was down considerably, down 14% today, really on the back of the Brazilian elections, which the incumbent candidate on the left looks like has won. Now we know with geopolitics in general these days, you know, there's a lot of always one side calling in question, the legitimacy of the of the other, especially when they lose. So you're kind of getting that now. We'll see how that plays out, but this type of thing is even more prevalent in an emerging market like Brazil. Very common. So what we have today here in America is very similar to what you see down there in Brazil. So I think there's going to be a lot of infighting. It's sold off because a more popular president, one less business, friendly president, one or sorry lost. The less business, friendly president, one. Yeah. So that's why the sector as a whole or the country ETFs as a whole sold off. So the question is, is this a opportunity and I would probably say yes because markets kind of priced in. What is happened with the election and yet could be reversed in some crazy legal battle potentially, but that would probably give this more upside in. I've said this before, if you want exposure to foreign markets with a broad swath of something like a sector ETF or country ETF, excuse me, you want more resource rich countries. And that's what Brazil is in petro bosses, the poster child of that. If you go look at I think it's EW. Yeah, EWZ is the I shares MSCI Brazil ETF and I remember last time I checked it was a huge percentage of that. Oh yeah, so it's 16% excuse me. Yeah, there's two different share classes. Yeah, it's about 16% of that portfolio. So I actually like it. I think it's a good value at these levels, especially after the sell off. I think this is a good name to get exposure to foreign countries as well as harder assets. So I'm giving PBR a thumbs up. Now we had a wonderful show on Friday. We looked into this story. India's geo IPO tests emerging market investing is India better bet than China right now. We also answered a listener question on ticker symbol, the NQ, the main guard real estate index fund ETF. If you haven't missed it, go check it out. That's what every show is to follow every follow best luck wherever you get your podcasts. Now we love a lot of ground cover as usual over the next 45 minutes or so in time permitting. We will get to all of it. So our main focus point is about Russian sanctions relief Russian sanctions relief. Where there looks to be a there is a recent decision to wave certain Russian sanctions and what impact will that have on global global markets global commodity markets, not just here domestically, but also other countries and there's actually one big winner from this move and it's not the United States, not Russia or you could argue one of the or both have one, but there's a third country that's actually looks to be benefiting in the short term as well. So we'll take a look at that. In addition, we have other topics on the docket. One is in regards to AI productivity across the economy. What is the data saying how much productivity is AI actually spreading to the rest of the economy. That also earnings season, we are the midst of earnings season, like I said, S&P overall is expected to see earnings up 30% in the third quarter year over year in the same quarter in 2025. But that's driven by just two companies and there's only 10 companies that are driving two thirds of the profit growth. So we'll look at the data there. What that means for 2027 and beyond. Then lastly, if you have time, there's a lot of stranded accounts out there. 34 billion dollars worth. Sorry, 43 billion dollars worth got that inverted there. Could you be one of them? We have stranded money elsewhere. We're going to talk about that. We also will get to questions on from our voice bank. One is on back door Roth IRAs. The other is eQT corporation. And of course, questions that came into the comments section on the invest stock YouTube channel. But we're going to go to quick break. We should have a week and call anytime and leave your question on the invest stock voice bank. If you're listening to our live stream or possibly an AM-1220 in the Bay area, you can call right now at eight o'clock at 99 chart. It's official. Total lifetime downloads for the invest talk podcast are now more than 63 million. Justin Klein is here now taking your calls live. Invest talk 888 99 chart. Let's take a quick look at the market today. Overall, it was a nice bounce back day. The S&P was up 70 basis points NASDAQ up 82 basis points. That was about a quarter of 1%. Really, the strength in today's market was driven by a bounce back day for a lot of those A&M's. We saw pretty strong sell off for the past three weeks. But as you would imagine, there's oftentimes bounces along the way. And you kind of got that recently. Meta did announce a 95 billion dollar equity race. 35 billion in common and 60 billion in preferred stock. Sorry, 35 billion common and prefers offering as well as 60 billion of at the money share sales, which means that in news classy voting shares, which means that they can just go sell that in the market. So that was down 1.8% on the day. But they're using that to spend elsewhere, right? So if they're able to raise capital, they're going to go buy products and AMD and video, Broadcom, etc. And there's kind of circular financing here, where in those names are also buying up the share insurance. So you continue to see that circular financing within this space. Space X also finalized a 40 billion dollar debt deal to buy more GPUs. So, you know, the worry here with the credit markets around the Neo clouds, especially the oracles and the and the core ways of the world is that the money will dry up with these companies will not be able to raise capital to go spend at the hardware that picks and shovels the hardware names. But this, you know, that's from space X as well as meta kind of says no, they're. they can raise the money. And I think that's why you've got that bounce. Now that's right now, but can they continue to do so over time as their balance sheets are not nearly as stressed as a core weave or an oracle, but as you continue to raise debt, you continue to raise equity, it erodes your balance sheet overall. So it would be very interesting to see how this evolves, especially as we get into 2020. Seven and we get through earnings season because that's going to be a big factor here over the next month is what are all the earnings say for these names, not just about the past, but future orders and what that means for the broader industry. Anthropic did file their IPO and could go public as soon as November 9th at evaluation of what are they targeting? I think it was 1.6 trillion if I remember correctly. I have to go find it, they don't have it in front of me, but yeah, so certainly once again, if they're able, that's another name where they're able to go IPO, they're able to raise the amount of money they're looking for, that's more money to keep the train rolling for a eye. So I think that's why you got the nice bounce back to day, but ultimately, is that one day? Is there a fall through? I think we'll know a lot more after tomorrow. Okay, what else do we get? Dollar index was not 0.2%, gold finished up 0.8% silver up 0.7% on the day, Bitcoin features down 1.7% and you saw WTI down a little bit, 1.5% those off the session lows. That was the market today, very interesting day as we start bed week, continuation of earnings week. Let's keep things moving and pivot back to the best knockboy spank for a question that came in earlier. Hi guys, I love the show. A quick question about backdoor Roth IRAs. Could you explain what they are, how much you can contribute, and if there's a benefit to this process? Thanks, bye. Well, the benefit is you getting around the income limits for Roth contributions. So whether you're filing your single or filing jointly, their income limits for how or how much and it's a phased out and it changes every year. So you have to look up what it is, but a lot of people who make above that limit, they still want to make their Roth contributions. I argue, if you were at the retirement summit earlier on Saturday, you'll know that if you're in a high tax bracket, getting money into a Roth in particular year is probably not the smartest plan, but maybe you're in a middleing tax bracket, still above those those limits, etc. And maybe you still want to get money into a Roth and that's fine. So what you would do is you make a non deductible contribution to your IRA, but the the catch here is that that IRA at the end has to be empty. So if you have an IRA already, you have to actually start the backdoor Roth, you have to convert all of your IRA money, and that could be a tax impact and you have to worry about that. So what you do is if you have an empty IRA, you put the $7,000 into it, depending on your your actually thinks up to $7,500 now, and then what's $8,600 if you're over 50. Once again, these things change all the time. You make that contribution and then you convert it immediately to a Roth. And therefore you never took the deduction. It was a non deductible contribution to your IRA, you converted it. There's no additional tax consequence or anything like that. And now you have the money into the in your in your Roth IRA as a conversion as opposed to a contribution. And that's the backdoor idea. Might make sense for you. Just depends on your current tax rate, your future tax rate. This is what I emphasized on Saturday, which was get a plan for it and know what the future looks like. All right, we're heading into a break. Give me a call now at 8-899 chart. The investment business, it's a trust business. But you shouldn't have to just trust that your advisor will hold your assets safely. At KPP Financial, we use established custodians like Charles Schwab and Fideli. They hold your assets. KPP provides investment management and financial advice. Learn more about working with us at KPP Financial. It all starts with a free, portfolio review and investtalk.com. 8-899 chart, 8-899-24278. Take a second to ask your question on today's show. Talk about some recent report. This is coming from Apollo Global Management, one of the largest private equity firms in asset managers out there. And they did a study about not just technology companies, but really the rest of the economy called the S&P 493. There's the Mag 7, a revenue per worker for the Mag 7. It's going up. But the idea of AI is to make the entire economy more productive, right? To create efficiencies, find efficiencies that weren't there before. And that will ultimately justify all of the spending. But if you go look at the profit margins for the 497, as well as the revenue per worker, it's essentially flat. So there's not really a payoff for corporate America outside of the technology industry. So yeah, it helps with coding, for example. But mainstream corporate America, not the Mag 7, they're seeing token spend as a source of cost, not growth. The industry wants you to say, hey, go spend on these models. It's going to help you grow your business, expand your profit margins, make your workers more efficient. And it may be doing so in specific instances, but in aggregate, you are not really getting the confirmation. The data is not saying that. And if that's not the case, if that's not actually creating productivity, which is what's with the number saying, then where will the revenue come from? Why would you pay for a product that isn't actually benefiting you from a business perspective in a material way? Because once again, that's what the data is saying outside of the Mag 7. And that's why Gartner, market research firm, says that more than three and a half trillion dollars of AI infrastructure spending could be at risk of impairment by 2030, if AI revenue fails to justify the spending. Once again, that's where AI revenue is going to come from. It's going to come from the entire economy, not just the tech industry. That's how this will work if it's going to. And then you look at token usage, especially of the more sophisticated models, the newer models coming out of OpenAI and Thropic, etc. These feedback companies are increasingly spending money on those tokens. So startups, but mainstream corporate America is realizing they don't need the latest model and they're unwilling to pay for it. And a lot of them are using open-way models that they can put on their local server and run it locally and therefore get rid of a lot of security questions. So as long as agentic AI and token spending are just being used or utilized or growing within a small subset of the economy, the impact of AI on the broader economy is going to be very, very limited. So I wanted to highlight that because there's this narrative. There's always the narrative. But real investors focus far less on the narrative because narratives can add and flow in both directions, usually either too optimistically, too pessimistically, etc. They're rarely in the right realm of reality. But your job is to find the right realm of reality. Where is the market too pessimistic about a particular company or a sector as a whole, subsector, and vice versa? And the way to help perform, the way to find the opportunity to avoid the risk is to recognize the real data from the hype. Now the next and best talk we'll look into this story. Should I buy bonds now? The 10-year treasury is at 5%. The 10-year treasury yield has pulled back to the psychologically significant 5% level as investors seek safety amid growing concerns about sector valuation and broader market volatility. But we will discuss whether this is the moment to finally lock in bond yields and how to think about fixed income allocation in a world of elevated rates. That story tomorrow, and for now I'm Justin Klein and ready to take your calls now at or any time at 8.00 to 8.00 to 9.00. [Music] Got a question for Justin or Luke? I've heard you say multiple times that you prefer shorter duration trash rate barred. You're the best person to ask is it? Can you explain to me why it is more advisable? The symbol is you and I T wondering what you thought about this rate if it would be a good time to get in. Invest talk is ready 24/7. So I was thinking is it a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest into better stocks? I just wanted to ask you about one stock that I'm looking at. Enter G-E-T-R. If you could run that down for me. Don't forget to call Invest Talk 888-99 sharp. [Music] At KPP Financial, accountability means more than advice. It means we invest alongside you through our parallel investing approach. When we recommend an investment for clients, one or more KPP principles invest their own capital at the same time. Same day, same price, same percentage. If your portfolio moves, ours does too. That is alignment. That is transparency. That is the KPP difference. Visit investtalk.com to get your free portfolio review. Invest Talk. Tell your friends they can listen live, download the free podcast, or watch Invest Talk on our YouTube channel. And they can leave their finance and investment questions any time on 888-99 sharp. This is Dan from Walnut Creek. Thanks for answering my question. I've got EQT Corporation. Stocksable EQT is in my portfolio and it represents about 4% of that portfolio. It's been in a slight downtrend. Late and done, it's also just announced a $50 billion deal to acquire another company. So I was wondering, for a long term hold, would it be wise to purchase any more of the stock, or should I just let it ride as it is? Bye. Looking at EQT had big volume today. I don't see the news, but it is historically a very profitable name. It is in the oil and gas space. And it mainly is focused -- if I remember correctly -- on shale in the Appalachian Basin. So it's mainly focused on natural gas, but it is one of the best operators within the space. So I kind of like it just for a longer term demand for natural gas. Let me see. Yeah, generally, I like it. I mean, it has a solid balance sheet. Good cash for about 3.7 billion, which is about a 10% free cash flow yield, which they're using to -- let's see, are they buying back shares? Not quite. But they are paying down their debt, which is a big smart in this environment. So you saw a debt go from 13.7 billion in the fall of 2024, and now it's only at 5.6 billion. So in just two years, they've dropped their debt considerably, and obviously going to continue to probably pay that down. And then I think there's room for chair buybacks, increased dividend, et cetera. So I kind of like it. I would be -- I would probably buy a little bit more, depending on your allocation to energy as a whole. Let's focus on -- I focus point on the day, which is about Russian sanction relief, what the US energy -- US Russia energy deal means for commodity prices. And what you saw a couple of weeks ago was the White House issued an executive order or waiver on the Lenzio Graham sanctions on Russia and Iran Act. So just months after his death. Broke a directed diesel deal with Moscow. So that sanction act was all about preventing us and our allies from doing business with Russia. But now there is a waiver, at least until April of next year, that allow for 1 million tons of diesel per month imported into the United States. That equates about two days of demand. So if they're doing that every month, that it's a decent amount of diesel potentially. So it reduces overall global trade flows. And the question, I think for the average person, is that worth it? Is that worth selling or buying oil from Russia, allowing them to have more money? What are the geopolitical impacts of that, shall we say? That's a question really not for this podcast. But the question is, what impact will that have on the overall economy? So far, which is interesting is that it's not really helping oil prices. Oil prices continue to go up. Diesel prices continue to go up. I think this is done to maybe help the midterms a little bit, but it's overall impact has been pretty muted. But it has helped other countries, mainly, mainly India. Now, Secretary of State Rubio met with India last week. And this waiver is going to help India. And if you'll look at the Indian ETFs, they rallied on this news. Why? Because they had been buying less and less oil over the past couple of months to avoid diplomatic strain. Because they didn't want to kind of cross the line of the sanctions. And India is the world's third largest oil importer and consumer. And in Russia accounts for nearly half of the country's oil imports, because it's right next door. But purchases fell in August. They continue to climb in September. And here in October or here in October. But now that is reversing a bit. They've been persistently cutting Russian oil imports to avoid new U.S. tariff risk. So we'll see if this finalizes anything. There's still issues with the Section 301 tariffs, which the current administration is kind of threatening unfair foreign trade practice accusations against not only India, but countries around the world. That's what's kind of holding this a broader deal up. But at least in the near term, it's certainly helping the Indian economy import oil more oil and cheap prices. Who else is it helping? Well, global shipping and tankers. Because Russian fuels now permitted back into America and allied ports, it expands the routes available for global maritime transport companies. So higher tanker utilization rates or tankers being used. Simple as that means more profits. So tanker and shipping companies are doing better. Russian energy equities are now able to get some more revenue and don't take a discount to sell their oil into the global market throughout able to get a market rate for a period of time. Now, potential headwind would be maybe if you think this is for a broader, the start of a broader. But our broader negotiations for peace in Russian Ukraine, that would be the potential headwind for any military companies. I don't necessarily think it's the case. I think this is more of just trying to help with the midterms if I'm honest with you. So I think that argument some might make is pretty muted. So low point here is that this is going to have an impact in the short term. Say the medium term because the short term hasn't really had much impact. But the question is, will that verse maybe if you get a democratic Senate and a democratic house coming in January, we'll see how that evolves. But at least in the near term, it should help move a little bit more oil around the world, although I think a lot of the oil that will be sold in this instance. Artie is being sold in the black market. It's very hard to track. Let's play another listener question from 888 99 chart. Hello and with talk. This is Matt calling again. I have a question regarding Toro company, the Casimbo TTC. I own it. It's about 2% of my portfolio. I'm down about 15%. Just wondering if it's still a good company to hold long term or should I sell and move on. Thanks a lot for everything you do. All right, looking at the Toro company's name that we used to own for clients, they. They had a rough kind of slow down from the pandemic era. I think that's probably it's kind of been the issue as a over last couple years. It's kind of been stagnant. Talks around nowhere. since late 2021. And what's going to, I think that's all because of the lack of earnings growth since that time. So it peaked out in earnings at $4.20 in 2022. And it's basically been stuck there at low growth since then. Now that is they bought back 12% of the shares over the last five years. So they're plowing a lot of that free cash flow back into their business, returning equity is still 26%. Which I think is good. But that is down from the 35% we saw in 2021, which probably was over earnings. So their profitability has eroded a bit. They do make a lot of their products here in the eight states. So I think the tariffs probably in some ways have helped them, but it hasn't really helped their overall. What's getting their profitability there? Their growth or anything like that. So I still think it's a good business. I think it will break out of this funk in time, especially as it can plow a lot of that free cash flow, which is now at $711 million trailing 12 months near an all time high. I think where I would continue to hold it, I guess, the question. I think it is still a very, very good business. I just need a little bit of growth. And I think we'll start to see some higher multiples for Toro company, TTC. Let's make it two in a row from eight to eight, 99 chart. Hey guys, I love the show. This is Eric from Michal. Just got a quick question. I like the aerospace and uranium industries a little bit. And I'm looking at ticker symbol B W X T. You just wanted to know your thoughts, but you have a position and at that looking at buying more. Look forward to hearing your answer. I was going to B W X T B W X technologies. This name we own for clients. It's pulled back pretty considerably. We owned it for a while. It did really well. We trimmed it. I think around the 200 level. That has continued to pull back though down about 131 at the close today, but still well off, you know, it's lows from last year when it was at 85 was the low. So still in a long term uptrend, although near term, it's certainly in a pretty considerable pull back. And I think I do a valuation. Valuation got a bit extreme. One of reasons why we did we did take some profits on it. Now, valuations back to more reasonable levels. Price sales three and a half, which is right in the middle of its 10-year average. Price the book at 9.7 and the low end of its 10-year average. Enterprise value to free cash flow about 58, which you think is high, but historically that is kind of a little bit lower than the longer term, the 10-year average. So, you know, it's a business that continues to grow at a very, very healthy clip. Earnings for Q3s are supposed to be up 19% and then 12% on revenue. So we'll see how earnings come out. But ultimately, do you think this is a good area to buy it in? You're approaching the 200-week moving average. It's a pretty good support. So I do think this continues to be a name to pick up as it continues to pull back. And I think we're getting close to the end of this pullback. Let me see here. Yeah, you're at some pretty good support down here, which is also the breakout area around the one. I guess 115 would be better support, but if you're here in 115, I think that's a good place to pick it up. Let's pivot over to another voicemail question now. Hey guys, we'd like to show one to give you a call and ask you about Palantir technologies. I was listening to this lady talking about how this particular company may have an edge with government contracts going forward. The ticker symbol is TLTR. I know you get a lot of calls about this stuff. Please write it down for me if I want it. I don't know that, but if I want to buy it, what's a good starting price? Appreciate it. Sure, thanks. Ask yourself a question on Palantir of what the political environment will be going forward? Because yes, I think it has a built-in customer demand from the government, but I think it depends on what government you're talking about. This is a company founded by Peter Teal. He has strong connections to this White House, especially JD Vance. Will JD Vance be the next presidential nominee for Republicans? Will he win in 2028? All of those are big questions. We have heading to the midterms. Obviously, most midterms, you flip to the other party. We'll see how strongly that comes to fruition this year. My sense is it will be a pretty strong move to the Democrats. What does that mean for 2028 as well? Will they be as friendly to a Palantir in that type of environment? I have big questions about that. To me, Palantir is a big political question. Who's going to win? There's a lot of surveillance technology around Palantir that will certainly, this administration is a bit more friendly to, than potentially a Democratic administration. That's your big question. It's very, very from a fundamental standpoint. It's extremely overvalued. As you get deeper and deeper, and if you get a administration that is utilizing technology to a large degree, and there's some, I think it's being used in the Iran War pretty extensively as well. Who's in charge? That's the question. Let's pivot and talk a little bit about 401(k)s or safe harbor plans. Millions of Americans are losing out to losing money on retirement accounts when they left their job, whether they were like go of the job, they move jobs, whatever. There's something called safe harbor IRAs and pension B estimates that 13 million safe harbor IRAs holding roughly about 43 billion dollars in assets will exist by 2030. What happens here is that if accounts are under $7,000, employers aren't obligated to keep the plans in a 401(k) or keep the money in the 401(k), they can roll that out into a safe harbor IRA, but most people don't know about them. They don't. And then there's high fees, a lot of times it's parked in conservative allocations designed to protect principal rather than grow the money. And it was some interesting statistics here. Nearly two million workplace retirement accounts with balances of less than $7,000 are moved into safe harbor IRAs each year, each year. This is only intended for a 30 to 60 day transition period before that employee goes and rolls it into their own IRA and takes control of it, but the vast majority of accounts 87% remain after one year. It's only 13% actually do this. Then there's maintenance fees that erodes away the principal after one year, 68% of these accounts are worth less than they were at the start. 5% of these accounts have lost at least a quarter of their value due to these fees. After eight years, 52% of accounts moved into these plans remain there. And some are just totally eventually exhausted by fees. So there's 43 billion dollars in this. If you have an old employer, you need to go figure out. This money is probably just eroding. Go get it. Go transfer into your IRA. Don't let it sit there. There's some best talk. I'm ready for your calls now at 888. Hang in there and share. Every investor is working to build a secure financial future. How they get there and when they get there, that depends on many factors. The more you learn about how the market works, the better your chances for success. So don't forget to call invest talk 888 99 chart. Hey Justin and Luke, just have a question about kicker M-O-D. It's been on my watch list for a while and seems like it's tanking pretty hard and water notes. This is a good time to get into it. Now I think it's coming down with all of the AI build out things. I think there's still a lot of potential in this company, though. So let me know what you think about getting into it now. Thanks. Bye. Looking at MoDine manufacturing, they're all about thermal management products and solutions. And we know in the eye space, the data center space, it's all about, there's a lot of electricity flowing through there, a lot of ships that need to stay cool. And so that's where their products of services have really come in very beneficial to these build outs. The problem here is that the profitability hasn't really exploded. A lot of this is narrative. If you go look at its return on equity, it was higher in 2023 at 36%. Now it's only at 13%. Free cash flow is 100 million, which is down from its high, around 155 million at the beginning of 2024. And frankly, it's just too expensive. And earnings are revenue at least is expected to slow. If you go look at earnings, plus we have 37% this year or this quarter, Q3. And then Q4, this quarter, I guess the last quarter, 37%, this quarter, 34%, but revenue next quarter, this quarter, so it's to be down 1.6%. So growth is slowing considerably. And what I see with these smaller, especially smaller names, where they're You're very reliant on these bills. dial. If it kind of disappears or slows down considerably, what's going to happen to their business? I think you're seeing that right now. The market's kind of front running back. What I see is typically these good names go down 80 to 90% from their high. Let's peak that around 300 bucks. So 80%, 70% minimum is usually what they fall. That brings you to 90 dollars. And on six dollars in earnings, I think that's a more reasonable place. So somewhere on 100 bucks, we're getting there at 130 now. So we're closing in on it. But the technicals are pretty bad. Even a day like today, where a lot of names in this space bounced, it's down 2%. So I need some relative strength here. I need something on the chart that's going to give me excited about it. I would also be looking for a capitulatory event. I would be looking at that volume, seeing a spike in volume. Really, last time you saw a spike in volume was the breakdown, which is back on June 26th. That's when you had huge spike in volume. That's often a signal that the uptrend, uptrend is over, but also going to be a signal that downtrend is over. Well, you're not getting that quite yet. It's been a downtrend since that spike in volume on June 26th, because that was the signal that it was over, right? I want to signal that this downtrend is over. I want everybody puking their shares. Everybody's saying, I can't take the pain anymore, because guess what? Within the AI space, there are a lot of weekends, right? There is your average retail investor who doesn't really understand probably the end and out to the business. It's more buying for the narrative, more chasing returns. I think what you're looking at here is, yes, it's a picks and shovel type of name that I would like over the long term, but it's also very small. It's also not cheap, especially if you look at it based on its profitability, it's free cash flow, et cetera. You're not getting anything that screams this is a bargain quite yet. And they continue to issue more and more shares. I want them to stop issuing shares. I want to take cash flow and buy back shares. You're not getting there yet. So be very patient on this. Honestly, I probably wouldn't touch it until about 60 bucks. That's over half from here. That about does it. I want to remind you of KPP financials parallel investing and make a trade for our clients, make the same trade for ourselves, same day, same price, same percentage, no front running, no special treatment. We invest right alongside our clients. We share the same risk and potential for success. And you can learn more by heading over to investtalk.com. And please tell your friends and family about a free podcast downloads, which by any time at iTunes or Spotify and watch our videos over on YouTube. And please be sure to rate and review on iTunes as well. Independent thinking should success. Listen best talk. Good night. Invest talk is a trademark of KPP financial because of the nature of the interactive dialogue inherent in the format of this program. It's important for the listener to understand that not all comments made will apply to them. Specifically, nothing said she'll be taken to be investment advice or shall statements on this program be considered an offer to buy or sell security because such advice is rendered solely on an individual basis and at times will require that the investor review a prospectus before investing. Invest talk is a copyrighted program of client, Pavless and Peasley financial, a registered investment advisor firm, which retains all rights. For more information regarding KPP's investment advisors, call 1-800-557-5461. Thank you for listening and your comments and questions are welcome on our 24-hour listener line at 888-99 chart. [Music]