Speaker 1: Bloomberg Audio Studios, podcasts, radio news, single.
Speaker 2: Best idea, tough decisions today. I had to coverage some great,
Speaker 2: great conversations out there. We'll get to John Stolfas with
Speaker 2: Oppenheimer Company in a moment with this call a seventy
Speaker 2: one hundred standard Pors five hundred in a real optimistic tone.
Speaker 2: What a joy to head Today'd have truly a legend.
Speaker 2: Charles Clough Chuck Clow with his own shop up in Conquer, Massachusetts,
Speaker 2: definitive with Marrileach for years and sometimes very cautious on
Speaker 2: the market, but shockingly optimistic on the quality of profit
Speaker 2: and the quality of cash flow. We looked at growth
Speaker 2: and we looked at value with Chuck Clow. Does value
Speaker 2: do well only when there's a bear market? Do you
Speaker 2: need a bad market for value to do better than growth?
Speaker 3: I would say no. I think there's a tendency to
Speaker 3: move towards things that people think are value. I would say,
Speaker 3: I would say the most important engine of a value
Speaker 3: company is that it generates free cash flow and construct
Speaker 3: to collapse the capitalization the most important thing. If it's
Speaker 3: a mature industry, we would be generating cash flow because
Speaker 3: you're not investing. If you're generating cash flow and can
Speaker 3: move the capitalization to a point that it's still efficient,
Speaker 3: that will make you money into value.
Speaker 2: So you're worried about the accounting for all this capex
Speaker 2: investment in AI if we have some form of write
Speaker 2: down or depreciation of it in a normal sense. Do
Speaker 2: you believe the math now like Paul and I believe
Speaker 2: the math in February of two.
Speaker 3: Thousand, Well, again, I think the point about my hyperscale
Speaker 3: is they generate huge amounts of cash flow. The dot
Speaker 3: com companies didn't with one exception, two exceptions. I was
Speaker 3: Apple and Microsoft and Chuck Cloud there of.
Speaker 2: His own shot clone company up in Conquer, Massachusetts. John
Speaker 2: Stulphus was with us today much more into writing a
Speaker 2: weekly note about where are we in the market? John
Speaker 2: Stulfus reaffirming optimism.
Speaker 4: We've got earnings growth up eleven point seven percent on
Speaker 4: back of eight point one percent revenue growth. You've got
Speaker 4: tech twenty four percent growth year over year financial Q
Speaker 4: three or year over year twenty three point nine, so
Speaker 4: that's another twenty four piece. You've got materials double digit growth,
Speaker 4: industrials double digit growth. This is looking pretty good. And
Speaker 4: the single digits aren't bad. Uh, And you've only got
Speaker 4: two sectors with negative growth, that's energy negative two point
Speaker 4: two six percent on the screen and communication services eight
Speaker 4: point one nine percent, and that some of that may
Speaker 4: be the result of just incredible investment at a watershed
Speaker 4: period related to AI technology.
Speaker 2: John Sulfas he has been out only optimistic on the market,
Speaker 2: even with some of the stresses over the last number
Speaker 2: of years, and he reaffirmed that today I'm podcasts, We're
Speaker 2: out of Apple word at Spotify on YouTube podcasts its
Speaker 2: single best idea