WEBVTT - Single Best Idea with Tom Keene: Darrell Cronk & Amy Wu Silverman

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>Single best idea quick after a crazy day, just to

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<v Speaker 2>give you a window into the sausage making here where,

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<v Speaker 2>of course, hugely advantaged by a team that is trying

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<v Speaker 2>to get us good conversations and trying to keep up

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<v Speaker 2>with the newsflow. The headlines came out, there was one,

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<v Speaker 2>Paul saw it, I missed it. Paul saw it, and

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<v Speaker 2>Paul Sweeney saved us. And then a couple minutes later

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<v Speaker 2>there was more than a few headlines and oil went

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<v Speaker 2>down ten dollars. I don't have anything to do with this.

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<v Speaker 2>I'm in a hermetically sealed room, and they just know

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<v Speaker 2>what to do. The team SI one and all the

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<v Speaker 2>rest of them, and all of a sudden on the

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<v Speaker 2>phone is Patrick Sykes of the University of Cambridge in Istanbul,

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<v Speaker 2>driving all of our midies breaking new coverage. That's the

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<v Speaker 2>advantage we have is to get Patrick Syke's interpretation as

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<v Speaker 2>the news breaks and oil goes down ten dollars, and

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<v Speaker 2>we get lucky, and so much of this, folks is

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<v Speaker 2>get lucky. We get lucky to go to Margaret Brennan

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<v Speaker 2>a CBS to talk about facination, of course, and that's

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<v Speaker 2>out on Bloomberg Radio Sunday after noon. We also got

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<v Speaker 2>lucky that Darryl Kronk joined us with Wills Fargo. He's

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<v Speaker 2>absolutely prodigious in financial mathematics. He's one of my favorite people.

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<v Speaker 2>He wandered into the studio Darryl Krnk on the moment

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<v Speaker 2>at hand, to be candid and direct.

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<v Speaker 3>They don't care that much about this quarter and what's

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<v Speaker 3>actually reported. We know it's going to be good, right.

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<v Speaker 3>The quarter is going to be up thirteen percent on

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<v Speaker 3>Q one. Forward twelve month earnings are going to be

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<v Speaker 3>up seventeen to eighteen percent, which is unheard of. This

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<v Speaker 3>is the sixth straight quarter in a row we've had

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<v Speaker 3>double digital earnings growth. Right, So it's all about forward guidance.

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<v Speaker 3>It's all about what they say out into Q two

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<v Speaker 3>and Q three. That's what's going to separate the winners

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<v Speaker 3>from the losers here as we go. And remember we

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<v Speaker 3>got big banks and financials. Between financials and tech, they're

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<v Speaker 3>forty six percent of the market cap of the SMP,

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<v Speaker 3>so they matter, right. What they do is going to

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<v Speaker 3>drive where we go.

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<v Speaker 2>Daryl Kronk, Wells Fargo. I would mention their folks and

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<v Speaker 2>this is you know, it's not a pro tip, but

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<v Speaker 2>it's really the way people like Darryl Kronk think. He

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<v Speaker 2>studied his vbode at Boston University ages ago. The media

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<v Speaker 2>is very much focused on single statistics, which is fine.

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<v Speaker 2>You know, the earnings come out in this revenue and

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<v Speaker 2>this that and the other thing, or even economic data

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<v Speaker 2>pros comparing contrast, which is the numerator and the denominator.

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<v Speaker 2>In British talk, they look at ratios, or at American

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<v Speaker 2>talk they look at fractions. But I can't say enough

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<v Speaker 2>about in the earnings. Yeah, look at the single points,

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<v Speaker 2>but also look at some of the ratios like return

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<v Speaker 2>on equity and some of the fancier cash flow ratios.

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<v Speaker 2>Is well, Darryl and I were talking thinking about twenty percent,

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<v Speaker 2>nineteen percent, seventeen percent, return on equity. They were not

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<v Speaker 2>in our textbooks years ago. It is a profit juggernaut,

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<v Speaker 2>at least for now. Ammi Woo Silverman was with us.

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<v Speaker 2>She's in derivatives, to say the least in RBC Capital markets,

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<v Speaker 2>and she was brilliant on how you shift from an oops,

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<v Speaker 2>I'm wrong, we're not going down short cover or short

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<v Speaker 2>squeeze out to an OMG, I've got to buy it.

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<v Speaker 2>Here's Amy Woo Silverman right now.

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<v Speaker 1>What we're seeing happening is the beginning of the chase,

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<v Speaker 1>and oftentimes when we get that beginning of the chase,

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<v Speaker 1>that is a secondary effect of it. I think we're

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<v Speaker 1>actually even earlier in terms of the positioning. So it's

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<v Speaker 1>been this spot up volatil the upmarket, you know, which

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<v Speaker 1>is kind of the opposite of what we would expect,

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<v Speaker 1>really big bid to call options. And then I think

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<v Speaker 1>even down the line, we might get the mechanics of

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<v Speaker 1>the gamma squeeze, not the short squeeze, which is why

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<v Speaker 1>I think there is still some continuation to this momentum.

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<v Speaker 2>I have never heard her more optimistic. We bust her

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<v Speaker 2>chops about it all the time. But you know, the

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<v Speaker 2>tag team at RBC Capital Markets of Lori Kelvicina and

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<v Speaker 2>Amy Wi Silverman is exceptionally math focused. The rigidity of

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<v Speaker 2>their mathematics is noted. And all I can say in

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<v Speaker 2>these tumultuous times, We're going to continue to get you

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<v Speaker 2>a cross section of voices as we go down and

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<v Speaker 2>we spring back this spring on podcasts, where at Apple,

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<v Speaker 2>where at Spotify, a YouTube podcasts, its single best idea