3 Stocks I'm Buying Now! August 2020
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Teresa combing August 2020 edition Welcome guys to my favorite series I do on this channel each and every month in this video. Today, we’re gonna cover the three stocks that I am planning on buying in the month of August and maybe considerably Okay, I want to explain to you why I want to buy these stocks.
I’ll give you my full bullish thesis as many you guys have seen this series before, you know how it rolls I’m gonna give you my full bull case there okay, but the most important part of these videos is not the actual three stocks I’m buying, in my opinion, especially if you’re newer to the stock market, you’ve been investing for less than two years.
In my opinion, the most important part of these videos is to really hear the thought process that goes behind making an investment and actually putting my money in the stocks and making investments in the stock. So hope you guys enjoyed today’s video.
As always, if you don’t mind smash that thumbs up button that lets me know that you enjoy the video. Also, it helps out the channel in general and if you’re somebody that has five figures plus in the stock market or you’re looking to invest five figures plus over the course of the next 12 months.
Go ahead and check out the first link in the description down there if you’re looking to scale your portfolio out over time Okay, without further ado guys, let’s get into this stock number one of three up here is a company named Nordstrom ticker symbol This one is J w n okay?
And this is one I’ve been watching very closely as everything is transpired with the Rooney runners situation right we know malls closed down a lot of things closed down and I’ve just been keeping track of the stock I just wanted to see how kind of things have played out.
I’ve been to several their stores even in a couple different states just to see you can kind of gauge like how his business like how his business right now, not how his business six months from now.
12 months from now hopefully it’s a lot better than today. But just like seeing what customer activity levels and things like that. And so this stock right now there’s $13 and some change to share the entire market cap for Nordstrom right now is trading at $2 billion just over $2 billion this stock is pretty dang close to its 52 week.
Low which is crazy to think about because a lot of stocks are are you know way off of their 52 week lows or way up since they hit their 52 week low This one’s pretty dang close like this one’s 52 week low is in the 12 and here we are with the stock and the 13 so it’s pretty dang close and a 52 week range is anywhere from $12 to $43 for this particular one in terms of recent history.
This is just a beaten down stock Okay, I mean you look at you go back to November 2018 which is a $65 stock and since that time it has just been beaten down beaten down and obviously Roni Rona situation just as like a dog kicking out okay, but.
I think Wall Street has it wrong with the stock let me be very clear okay Nordstrom if you don’t know they have I let’s call them you know like the upper middle class slash wealthy they love to shop at Nordstrom okay and in their big stores to department stores are usually in big malls but not just any malls a Nordstrom is in like an A plus mall, okay?
Like the malls that are actually doing good. Okay, a lot of malls aren’t doing that great in this environment haven’t been for years. But the fact is, there are actually some malls that still do really, really good.
And those malls are actually the higher end malls. Okay, those are the ones that have done really, really well. So at that side of their business, they have a Nordstrom Rack which is more like stores in strip malls that is going more after like the middle class with that brand because at the end of the day.
You can get some great brands and some great you know, designers and things like that, but for a lot cheaper prices at Nordstrom Rack, okay, so that’s a phenomenal, phenomenal business for them. Then they have their online side of the business.
So actually shopping at Nordstrom calm which they picked up a lot of customers over the past six months. And you know, especially as this Ronnie Ronan situation took off, they picked up a lot of new customers that have never shopped at Nordstrom before actually just listened to a presentation they did a few weeks ago.
And we’re talking about how many customers have just started firstname.lastname@example.org and their websites and things like that, that have never even shopped on Nordstrom they also on trunk club as well which is somewhat of a competitor something like a Stitch Fix, but they compete in a little bit of a different style.
Let’s put it that way. Okay, when it comes to Nordstrom, it’s a company that I think has under a 10% chance of going under okay, but with the capital they raised and with the fact that most of their stores are all open now in those stores are actually you know.
Doing decent business is not back to where it was but they’re actually doing decent business or you know, relatively speaking, I think there’s about a less let’s put it this way less than a 10% chance of this company going under so you know if you’re thinking is the stock going to zero you know.
All things are possible out there but I really don’t think Nordstrom is is going under I think the odds of that happening are pretty slim. Okay. The issue at Nordstrom when it comes to at least a stock price and wild stocks just continue to being kicked and kicked and beaten down is everybody likes to at least on Wall Street.
Likes to just put them in the same category as all the other like junky depart stores like Macy’s and JC Penney’s and Neiman Marcus Saks Fifth Avenue and Sears and Barney’s and dillards. And all these different brands that honestly, it just shouldn’t be in nordstroms category nor shows playing it’s just as to be able to say JC Penney’s is the same as Nordstrom or Macy’s.
Is the same as Nordstrom or Sears is the same as Nordstrom. It’s just to be quite frank, it’s ignorant, but it’s what happens on Wall Street. They like to group stocks. And they’re like, if we’re going to kick all these other ones, we’re kicking you as well. Okay.
And it’s just, it’s preposterous. It’s no different than saying Amazon is the same thing as eBay. Because, gosh, I could go buy a 50 inch flat screen on Amazon, I could do that as well on eBay. And they’re both online platforms. So they’re the same thing, right?
No, they’re not okay. Just like Sears is not the same as Nordstrom and JC Penney’s is not the same as Nordstrom, they shouldn’t be. They shouldn’t be like, put in the same category. It’s just ridiculous are different businesses that compete in different spaces, and ultimately have very different management teams visions and things like that. Okay.
But the fact is, Wall Street has thrown Nordstrom stock in the trash, it is clear as day while so many stocks have bounced way back off their march lows, Nordstrom stock is way down. And I think Wall Street has gotten it way, way wrong here.
Okay. So when it comes to JW, and I think they’re going back to yearly profitability in 2021. Now, we’re not talking like, Oh, it’s gonna take them like three years to get back to profitability, or four years?
No, I’m talking about positive net income in 2021. And that’s on a yearly basis. It’s possible, okay, I’m not not gonna guarantee you this. But it is possible that the company could actually be net income positive in for q2, of this year, okay, this year, keep that in mind.
But in terms of yearly profitability, I’m expecting that to be back in 2021. And some pretty nice numbers, okay. Because at the end of the day, the strongest stronger in the situation, and the weak get weaker and the weak go under, it’s no different than you know, a lot of you guys have been hearing me talk about Cheesecake Factory stock, right.
And Cheesecake Factory big company, as very well run now ultimately, you know, has had their business kind of devastated in the short term because of Ronnie Rona had a forced restaurants to close and things like that.
But at the end of the day, Cheesecake Factory will emerge on this actually stronger than they were before. Meanwhile, a lot of the weaker competitors that were doing small bits of business and just barely making it are going under in the scenario and it’s the exact same thing when it comes to these retail players, a lot of players have been barely making it for a long time.
And a lot of those guys and gals they’re going under, okay, and the strong will get stronger, which ultimately means Nordstrom will have even less and less competitors and less and less people trying to throw crazy deals out there and sales in those sorts of things.
Okay. Also, this is a dividend stock usually Okay, in my opinion, the dividends will return for the stock in the back half of 2021 or early 2022. In my personal opinion, okay, remember, I think this company can be profitable on a yearly basis in 2021, which means, you know, there’ll be able to bring back the dividend.
I think the company wants to make sure they’re going to get back to profitability before they bring back the dividend. I think that is smart, I think preserve cash for the rest of 2020. And just you know, hopefully for cues, a really good quarter there.
And then, you know, as this company proves out, it’s going to be profitable again, things you get back on the on the right track, Ronnie, Ronnie starts to you know, get in the rearview mirror, all of a sudden, then you can bring back the dividend and the businesses back in the right place. Okay, so this will be a dividend stock in my opinion again in the future.
And keep in mind, this was a super consistent dividend paying company, they paid 37 cents a quarter for every share you held for years and years and years and years now, and this company would still be doing this to this day, if it wasn’t for a once in 100 year event named Ronnie Rhone.
Okay, so the fact is, this company will get back to dividends in my opinion, and you know, fairly nice dividends. I don’t know if they’ll jump right back to 37 cents a share, but 10 cents 15 cents, I think that’s definitely a very much possibility and then raising and maybe in future quarters and years into the future.
Okay, when it comes to Nordstrom stock, okay, under $25 on the stock is good value to me, whenever I see the stock go under 25 it just represents good value to me. I’m like, Okay, I gotta really think about buying some Nordstrom stock because this is a good value here.
Okay, under $20 for Nordstrom stock, in my opinion is great value, that’s when it’s like okay, let’s buy some Nordstrom shares and buy pretty heavily okay, but under 15 and that’s where we’re at here today. You know, when I just been looking at the stock I’m like, wow, like what am I doing? I have to have to put money in this ASAP including today.
I think I put 10 or $15,000 in the stock across my different accounts in August, as long as the stock remains you know low price, especially if it means under 15. I will continue to be a buyer Nordstrom stock and add to this position quite considerably and keep him I’ve been in the market for about 12 years now.
And what I’ve always seen is rotation money, okay? And what I feel is going to be a rotation mind change coming soon, in my personal opinion, maybe even as early as September, October, where essentially we’ll actually see money rotate out a lot of these high flying tech stocks that I’ve just been doing amazing and seeing their stock prices go up and up.
And a lot of funds will be forced to rotate some money to more of these retail sectors, restaurant sectors, things like that, as well as you’ll definitely have some hedge funds out there looking at value and looking at it and being like, hey, do I want to buy this stock over here that’s already ran, you know, 600% this year and you know.
It’s a possibility it could pull back 20 30% or do I want to buy one of these beaten down retailers somebody like a great name, like obviously a Nordstrom and maybe make 100% over the next year or two as the stock gets back in the right place.
The revenue starts to climb again company gets back to profitability and also some people like whoa, this stock deserves to be 2535 maybe even a $40 stock once again Okay, so that rotation money will come and yeah, so I definitely love Nordstrom stock and I will be adding that considerably in August as long as it is under $15 a share.
Okay, stock number two of three up here’s a company named cruisey doozy Cirrus Logic okay ticker symbol CR u s. On this one, the stock number two or three. It’s a company with a little under a $4 billion market cap so you know, relatively smaller but not like a teeny tiny company by any means okay?
Cirrus Logic to announce q1 results on August 3. I am prepping this video I’m recording this video on July 31. Which means earnings are coming in a few days okay, but we have gotten a few clues around those earnings very recently. Okay, look at Apple stock here today.
Apple stock up over 10% here today Why is this so important in relation to Cirrus Logic well Cirrus Logic last year, but 79% of their revenues from one company. Do you want to know what that one company was? Apple Okay, Apple.
This is this is Cirrus logics business at the end of the day. They have a lot of different customers. But ultimately, they do so much business and they have so many chips in the iPhones and different devices that Apple makes the apple just dominates their revenue of 79%.
So if Apple’s business is really weak, obviously right? It’s a really bad thing for Cirrus Logic Okay, and that’s a risk to Cirrus logics business man if Apple has to also start doing really bad numbers.
Oh man, that would be devastating obviously the Cirrus Logic but in the great times, like oh my gosh, apples quarter they just reported all of a sudden now it’s like a scenario where this is this is amazing.
Okay, this is amazing for Cirrus Logic. Look at these numbers Apple just reported yesterday, they beat revenues by over $7 billion. A ridiculous number. Okay, iPhone revenues beat by over $4 billion. Why is that so important? Well, Cirrus Logic makes chips in many different Apple devices, some iPads, Macs, Mac books, things like that.
But ultimately, their biggest advice their biggest moneymaker are iPhones, okay, they get several dollars for every single iPhone that has sold. And so when Apple comes in with a 4 billion plus dollar beat on iPhone revenues, that probably bodes very, very, very, very well, for a company like Cirrus Logic who gets you know, let’s say 80% of their revenues from this company named apple.
So this is phenomenal, phenomenal news. Look at what analysts are expecting for the stock tape. You know, this are expecting the companies to report $225 million of revenue for this quarter that’s about to be reported in a couple of days, right? versus a year ago.
I don’t know why Yahoo Finance didn’t have the number I went and research what Cirrus Logic did a year ago, a year ago, the company did $238 million. Okay. Now keep in mind, that is basically an expectation that the company’s business will decline by roughly $13 million in this current quarter.
Okay, but keep in mind the guidance first company was at 225 for the mid when the company you know, announced numbers a few months ago for their latest quarter right to 25 was the mid 200 to 250 is what they expected. If I had to guess being the apple just massively crushed numbers.
I’m gonna go out there on a limb and say cruisey doozy is probably going to be a lot closer to 250 when it comes to revenue 250 mil then 200 mil Okay, let’s just put the pieces together. Okay. Apple reports great numbers.
They’re selling way more devices anybody thought they’re selling way more devices and Cirrus Logic thought, okay, hmm. Cirrus logics probably going to beat numbers by quite a considerable margin. And so this bodes very, very well.
And this is why ultimately I bought recently actually bought I think it was $10,000 worth of shares here today and cruzi do Right, right before earnings, you know, I could have said well let me just wait a few days and buys you know, some with some more shares after earnings.
But ultimately guys, when we’re talking about an expectation to 25 and they’re probably gonna come in with a number way over that, oh, it’s probably gonna end up being a situation where the stock ends up going up quite a bit after earnings.
Okay, I’m much more scared when it comes to the stock of the stock being $70 plus after earnings and then the stock being in the $50 range after earnings. Let’s just put it that way. Because like I said, I think they’re gonna probably crush earnings being the apple just crushed earnings. And if they end up crushing earnings more likely the stocks gonna go considerably higher.
Wall Street’s gonna wake back up to the stock like, Whoa, whoa, whoa, cruisey doozy we need to get back on that cruzi doozy train like we were before. Okay, now for a short term negative thing, but I don’t know how negative this really is.
Apple’s confirming that new iPhones won’t arrive in September. So it looks like they’re just going to be you know, possibility of early October for the iPhones to go on sale. Usually it’s around like September 12. somewhere around there that you can actually start getting iPhones sometimes September 25, but sometime around there.
So he said a few weeks later is going to get pushed back. So likely early October is when we’ll get the new iPhones and remember the iPhone is the most important device when it comes to cruisey doozy Cirrus Logic Okay, so when we look at next quarters numbers Thuringian 15 million is expected.
Who knows you know, who knows what would that quarter will come in that’s going to be that’s going to be a questionable quarter you know, maybe they come in beat that with the guidance huge maybe they don’t we’ll see that’s just one of those that’s kind of a wild card right now because you know.
The fact that the iPhones being pushed back a few weeks but the end the day Wall Street analysts have this company seeing their revenues declined 7% plus for this year, right? Because everybody’s expecting a little iPhone was gonna be down huge.
Well, guess what, that’s not happening. So what happens if a scenario happens? You’re cruzi doozy we’re not only does a company not shrink their business, but they actually grow their business this year.
Okay, that’s when you’re talking about stock price moves that can be huge, massive to the upside Okay, that’s the type of scenarios so we’ll see what happens here we’re cruzi doozy but you know, if
I had a bet one way or another I don’t think their revenues are going to decline 7.4% this year it’s probably going to be a whole lot closer to break even if not growth this year and that’s massive Okay, move the supplier to the top eight smartphone OEMs Okay.
This company is the top eight smartphone manufacturers their suppliers them okay smart accessories, their supplier to two of the top three truly wireless headset brands. As far as smart home devices remember these chips go in everything it’s not just smartphones.
They also can be things like tablets, smart accessories, think about you know Ella watches right smartwatches think about things like you know headsets think about things like you know speakers like a you know, the Alexa speakers and those sorts of things right as well as you know, almost every brand Apple Google everybody has a speaker now Heck, you know.
FB they obviously have products in the market that you know can sit on your counter and have a camera and voice going through them and everything. All those different devices need amplifiers, all those different devices needs smart codecs and those sorts of things. And guess who provides that Cirrus Logic, they’re the number one player in this market.
Okay, now something huge to keep in mind here other than just, you know, Apple just doing a lot better than anybody expected, is the company expects to expand pontent with new and existing customers this year, fiscal 2021. So if you didn’t know Cirrus Logic is already in their fiscal year 2021.
And they’re saying they expect to expand content with new and existing customers. This is huge. You know, it’s always been thought about the good cruzi doozie could expand content with Apple in this iPhone generation with some new things are trying to do even maybe even specifically around voice biometrics, which it looks like that could very much well be what ends up happening.
And that’s huge for the company. It’s one thing for volumes to be up at devices. It’s another if you can basically get more money per device. Let’s say you were getting $4 for each smartphone sold before and now you get $5 you know.
For a company like cruisey doozy an extra dollar per device, if not an extra $2 massive when you’re talking about hundreds of million sold and a company that doesn’t have a massive market cap on or something like that. This is huge stuff.
Okay, expanding product portfolio, mobile. Okay, they have flagship smart codecs. These usually go for about $1.50 to like $2.50 audio amplifiers. asp is a 40 cents to 75 cents haptic drivers. 50 cents 75 cents.
So guess what if you’re watching this video right now on an iPhone, okay, and by the way, let me know in the comment section if you’re watching this video on an iPhone, okay, you’re watching this video right now on an iPhone.
Guess how my voice is getting to you right now. It’s happening through Cirrus Logic semiconductor chips. That is how the technology is getting to you right now. And when you go to talk to somebody on the phone later, do people actually talk on the phone anymore nowadays I don’t really know okay, but if you go to talk to somebody on the phone Later.
Guess how your voice is going to get to them through Cirrus Logic chips. Okay. Also when it comes to smart accessories smart home, they have codecs for that haptic drivers, audio amplifiers, everything across the board. When it comes to audio amplifiers, everyone wants their devices to be louder, right?
Whether it’s a tablet, whether it’s a smartphone, everybody wants it to be louder, you want to be able to just, you know, have a have a smartphone that you don’t have to like, hold up to your ear, if you have on speakerphone, because it’s so dang quiet, right? We all want louder devices, you got to have speaker protection in there, you want to really like high quality.
I mean, imagine if you’re watching a video or a movie, or listen to music or something like that, you want it to sound as high quality as possible. You don’t I mean, some of these devices, especially back in the day, it sounds so bad.
Anybody remember, like the old old smartphones? Oh, the audio was so bad on them back in the day, right? battery management, you know, when it comes to suppliers, you know, it’s so important to have a such and such runtime of how long your device can last for whether it’s eight hours, 10 hours, 12 hours, something like that.
So while you’re doing all this and you want clear audio, you want loud audio, you want all those sorts of things to go through an amplifier like Cirrus Logic makes, you also want super low power.
Now if you want all those things, it takes innovation, it takes a lot of research and development from cruisey doozy, but that’s great for cruzi doozy, although it’s a big investment for them. Because ultimately, it’s innovation.
And this isn’t a commoditized business. It’s not like it’s just a commodity business where it’s like, oh, I’ll swap you in and out, I’ll swap this one in or something like that. At the end of the day, when you’re talking about all this innovation that needs to happen.
You’re talking about specialized employees specialized processes to achieve, you know, things like this out there. So this is all very, very big, okay, haptic incensing solution. So keep in mind, anytime you you know.
Feel it like a vibration come from especially like any type of Apple product, any type of newer Apple product, that’s because of a haptic driver that Cirrus Logic puts in those devices. Okay, so if you feel that you got you know, some type of you know, device on such as an apple watch or something.
Maybe you get a notification and you feel it on your wrist, that’s actually a haptic driver in there that’s doing it. It’s not an actual motor you back in the day used to be like motorized, like a little motor in there, spins this thing around. And that’s how it gives you the vibration.
It doesn’t happen like that. Now it’s all through like basically an amplifier, but that’s just used for haptic sensing. So like, gives you that vibration like do do to your to your wrist or whatever, or you feel that in your phone or, I mean, imagine playing a game and on your on a tablet, like an iPad or something like that again, right?
A racing game, and you could feel like haptic feedback, like how cool would that be? Okay, all those things have to happen through haptic drivers. And guess who’s a massive player, if not the biggest player in the world in this space? cruisey doozy Okay, smart codecs, voice processors, when you’re talking about voice biometrics.
That’s ability to essentially say, you know, hey, Cyrus, let’s call it okay, because I don’t want to send all my devices off right now, read me my latest email, or read me my latest text message. And even though the device was locked at that time.
It can go ahead and do that, because it recognizes your particular voice, no different than if you pick up your phone, and you pointed at somebody else, it doesn’t recognize their face, it won’t unlock, right, but you pointed your face, it unlocks for you, right?
Same exact type of thing, but with voice voice activation, so you don’t have to be by your phone. And you can actually unlock it through your voice and have it do something for you. Okay, everybody wants these to be ultra low power.
That’s the biggest thing like don’t waste all our battery or otherwise, you know, customers might go to another competitor because Gosh, or our products don’t have good battery life or something. Right.
And those smart codecs, voice processors, they do everything from voice capture to voice activation, bargin farfield, voice custom software for the customers, okay, third party ecosystems can even use these different applications.
It’s just a massive product category. And this is where Cirrus Logic gets the bulk of their revenues for although the AMP business is continuing to build, build, and build, okay, headset codecs.
So I mean, think about air pods nowadays and all those different devices and headphones in general, right. This is something that just continues to get bigger and bigger voice capture, noise reduction, echo cancellation, sensing applications, hearing augmentation, all these sorts of things.
It’s just getting bigger and bigger. Now think about it. Like Like, look at me right now. I’m prepping this video. I’m listening to music while I was prepping it for you guys, right. And guess what I got a pair of air pods in and this is just becoming a bigger and bigger thing people having headsets of some kind, especially wireless ones.
It’s just getting bigger and bigger and it’s just going to continue to get bigger and bigger over the next five to 10 years which is a very good thing for cruisey doozy okay when it comes to all their products now in terms of a track record of long term revenue growth.
This is a company that’s very well run by gentleman named Jason road done a phenomenal job growing this business looking at players grown from a $200 million a year business a decade ago to now 1.2 almost 1.3 billion right now her fiscal 18 and 19 they took a big drop off in revenue because essentially you remember back when it was a few iPhone generations that used a dongle in there, right?
It was like this little dongle connector and this was in the hole like you know when when Apple switched to Basically a different way you could plug in devices and wasn’t like the headphone jack thing. Well, Cirrus Logic actually, you know, made the main chip that was used for that dongle.
So Cirrus Logic got a huge bump up in revenue from 16 to 17. Because of that, unfortunately, the dongle went away in 19. So it hurt revenues in the short term company went right back to growth last year.
And this year, you know, if it wasn’t for running growth, there was no question this was gonna be a very nice growth year, it might still be a nice growth year. Okay, wait to see these numbers that come out in a few days, and we’ll get a lot more clarity.
Their balance sheet wise, is always one of my favorite companies in the world balance sheet was almost $600 million in cash debt that has non existent 140 $7 million in inventory. Okay, they got another 100 and $20 million on the share repurchase program that’s available.
And that was as of their latest quarter they report it tax wise, they’re always able to get a pretty low tax rate, you know, relatively speaking 15 to 17%. expected. Okay, so, so many great things you’re obviously seeing here with this company. Okay. Let’s talk about Samsung for a minute.
So for a few years, you know, cruisey doozy and Samsung, they kind of their relationship kind of broke up. I’m not sure what for I think Samsung wanted to use a cheaper supplier. I think that went really bad for Samsung, and it hurt their business and they realize, oh, man, we should probably use cruisey doozy again for voice related things. Okay.
So if you look back when the S 10 came out s 10 plus tear down back in 2019, their relationship finally started working up again. Okay, they had an audio amplifier and that device in audio codec, a smart codec, and that they had another audio amplifier.
And so ultimately, their relationship with Samsung is back up and running now. And that’s phenomenal news, because you don’t want them just to have, you know, all the business with Apple. Remember Samsung’s a big customer as well out there.
So you know, the fact that they can have some Samsung business is absolutely massive. No, when it comes to cruisey doozy This is a hard company to compete with, I know you’re seeing the mark happening like oh, it’s under a $4 billion market cap can Qualcomm or or you know, skyworks solutions or you know.
Which is another one of my investments are some of these other companies that are big, big semiconductor companies that have 10 billion 20 billion 50 billion type market caps, right? Keep they just come in and crush a little guy like cruzi doozy, but the truth is, it is so hard to compete with Cruz, okay. Why?
Because Cruz actually works with customers very closely. Okay, picture here, it’s not an actual picture of Cruz and Apple working together is like a construction picture. But that’s basically the relationship. These companies work very, very closely.
This isn’t some plug and play, like, oh, let’s just get rid of the Cirrus Logic smart codec. And let’s just plug in somebody else. It doesn’t work like this, this is a very difficult stuff, you have to work very closely with the companies, it’s very much a white glove service industry.
And so if you’re trying to compete with crews is hard, because Apple would basically have to say, we don’t want to work with you anymore crews, and we’re gonna start working with this other company and they just start working with that other day. Like that’s a difficult decision.
Remember, these iPhones come out every year. And if you’re gonna make a big switch like that on it’s such an important thing like this is we’re talking about all the audio that goes through your device, the speech that goes through your device, it is a phone at the end of the day, like this is all the most important stuff, arguably, of that device, to all doesn’t just say.
Hey, we’re not working with you like what would have to happen there. I mean, at the end of the day, you know, they’ve done a very good job of keeping the relationship very good for the past decade, you know, is more likely going to continue to work out in the future as long as both the companies have the same type of visions.
Okay, now cruisey doozy they have a beautiful office open for the issue to might be about eight years ago now thinking about it. in Austin, Texas. That’s our corporate campus as our main headquarters. They’re beautiful, beautiful building. I’ve always loved that building.
And kind of the way they did it there. They also have several other offices around the United States. They got one in Phoenix, a smaller office actually got one in Salt Lake. Then they got this one office, huh, look at this one. Okay, Cirrus Logic Cupertino office 19419.
Stevens Creek Boulevard suite 200, Cupertino California member said they they work closely with a customer. Let’s go ahead and copy and paste the address and maps and see where it is. Oh, it’s right across the street from Apple’s corporate campus.
Wow, that just can’t be a coincidence. Asia offices so keep in mind a lot of Asian players in the Chinese market that are on the come up in the basically the smartphone market. They have several offices in Asia to actually you know.
Help assist those customers as they continue to build out in the Android space with a lot of those Chinese you know, companies that are trying to compete in the smartphone market and things like that because now I know you know, the United States for all you guys watching you think like everybody just has apple or Samsung and Apple and Samsung like what the heck other brand you have?
Well in other parts of the world, it’s different. Okay, Apple’s not nearly as big in China as they are in the United States. And so a lot of actually, you know, big companies, smartphone brands in China that you probably never even heard of again but Cirrus Logic actually supplies a lot of those different companies.
Okay. They also have a really big office from a company they acquired a few years ago named Wolfson, which kind of made them into an audio giant. Okay. And that’s actually in United Kingdom. They have offices all over the world, you know, as a company, it’s a worldwide company.
Okay, so crews when it comes to cruisey doozy, they’re the only direct play on audio and voice chips becoming more and more important over time. Okay, remember, a lot of other companies might try to compete in this space and might try to have some audio amplifiers or have some smart codecs or things like that, but they don’t that’s not their main business.
They usually do have other like main businesses like even Qualcomm, right? Which is a big competitor to cruisey doozy in the Android space. Qualcomm you know, audio chips, that’s like, you know, might be the fifth or 10th most support business for them.
They have some they have other businesses that are so much bigger than their audio chip business, right. And you have crews that is just focus on this stuff. So as you when you just think about you know, louder smartphones, when you think about voice becoming more important when you think about you’re expected to talk to all your devices and things like that in the future, right.
All this stuff’s going to get you know, get more and more important over time and including headsets and all that bodes very well for cruisey doozy, which is the only direct play in the stock market on this Okay, the only direct play so when you think about cruisey doozy very bright future in my opinion market cap under.
4 billion I definitely definitely definitely definitely love that stock. I made a lot of money on the past you know, it’s been a it’s been a profit machine for me for years and years. And I think it’s going to be a profit machine for me for years and years to go in the future.
Okay, already got so those are the first two stocks, those are like the the definite buys in August. Stocks, number three of three, okay has three choices. Let’s put it that way. Okay. three choices.
And all three of these are maybes like I’m probably going to buy all three of these stocks in the month of August, but they’re not like for shures cruisey doozy, Nordstrom. Those are for sure buys these three like Hmm, okay.
I’m probably gonna buy these three stocks. Okay. And I was thinking about just putting one stock but I was like, there’s really three other stocks out there that could potentially be buying in August. Okay.
The first one of the three maybes up there. Or footlocker Okay, footlocker ticker symbol FL on this one, I love this company, $3 billion market cap, usually a very profitable business. I’ve been to many, many foot lockers over the past month or two.
And I can tell you, they’re almost always busy. They’re almost always busy. They’re almost always doing business. They’re always almost always selling shoes. And a time when you think like this business wouldn’t be very healthy.
They’re actually doing pretty decent. And I think you’ll start to see that as soon as this upcoming quarters numbers that will probably get announced at some point in August. Okay. I think as soon as August was we’ll start to see some numbers come out of footlocker that like Holy smoke is is a no joke is in business is actually decent right now.
When a lot of people are expecting to just be bad right now. Okay, well, that’s why you see his mark cap at 3 billion. I think this is another one of those stocks, kind of like a JW. Then they’ll bring back their dividend probably as early as 2021.
And it’s going to be a very nice dividend and the stock will be up in a way again, footlocker zone, amazing job, like just continue to build that business. Now another one that wall street’s thrown out is the old shoe mall based retail and not realizing the brand footlocker has built over time, the connections they have with you know, the most important shoe companies in the world.
Including the most important which is Nike, right? So footlocker has done amazing job. Love that one. Absolutely love that one. And Wall Street’s kind of thrown it out. And I think it’s a mistake. Okay. Stock number two or three, that is a maybe for the month of August is Planet 13. Okay, p LNHF.
This is a maybe for me, so the stock has climbed so dang much. Okay, market cap is almost $400 million. Now on this point in time for plan 13. You know, ultimately, I think it’s going a lot higher long term than where it’s at.
So you shouldn’t, you know, you can definitely make an argument that I should be buying the stock. And that’s the only reason I considered you know, you know, potentially buying more of the stock in August, even though it’s up like, I think it’s up 100%, if not more than 100% from where we started buying it.
But at the end of the day, I imagined the stock being a $10 stock, if not $20, stock 510 years out. And so when I look at it, I’m like two bucks. Gosh, it seems really high at 281 versus where it was buying it, you know, a month or two ago. But then again, when I start thinking about this, and I start thinking about where the long term potential is.
I’m like, hmm, $2 is kind of a decent deal here. And the interesting thing I’ve seen with plant 13 is how well the stock has held up despite it you know, rising considerably. Let’s be very frank, the stock has gone up a lot and hasn’t sold off.
Which means the folks that are buying in the stock are having the basically the same mindset as me, let’s buy in let’s hold for the next 510 years. And let’s see what happens with this baby. Okay, because there’s a high probability his company’s going to succeed in a major way because look at I have I have you know, that circle there.
That’s very important. Why? Because essentially, I took a week off from YouTube, a lot of people are like making, you know, like conspiracies that I’m the only reason This stock was holding up, you know, essentially I go away from YouTube for an entire week in the stock never sells off during that entire week I didn’t post videos, the stock didn’t sell off, which means essentially.
There aren’t a lot of breadcrumb chasers in that stock. The people that have been buying into the stock and pushing up the stock price are in this game for the long term and that I absolutely love okay, because the last thing I want is, you know, fellow investors, if we can call them that they’re just getting in and out of the stock and they’re like.
Well what went up 10% I’m selling I’m taking my profit or something like that. And you know, just a big big big mistake in my personal opinion so I love seeing the price action there and that makes me even more confident to you know, be tempted to potentially buy even more this one in August despite it being up a lot. Okay.
And stock number three of three that is a maybe here is Berkshire Hathaway ticker symbol b r k and then a B Okay, obviously I want to buy the B shares of a shirt because he shares like oh gosh, like 300 or $400,000 some insane number these shares are you know, just a portion of the eight shares $195 for those anytime Berkshires under $500 billion.
My opinion, it’s almost like stealing money. So that one’s very much a probability I will buy that one. I like that one more than I like like an index fund. I think it will outperform the stock market over the next decade. Even though it underperformed the market in the last decade.
I think this next decade 2020 through 2030 I think it will actually outperform the stock market. So that’s the other maybe there so hope you guys enjoyed this as always my favorite series do each and every month I’m happy I did a lot of work to put these videos together the amount of slides and things so smash that thumbs up if you don’t mind that definitely helps out the channel.
lets me know you guys enjoyed the video. And also if you’re looking to scale your portfolio, seriously, check out the first link in the description. Get on a call with us from the team and we can definitely help you out and lead you in the right direction there. Thank you for watching and have a great day.