Jan 18, 2013|
Stock Talk - Jeanie Wyatt, South Texas Money Management
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
All right it's time to talk stock as a matter fact we're going to be talking about auto stocks were joined by. -- Wyatt from south Texas money management Jeanine good morning welcomed this. Good morning bearing down -- No state income tax in Texas right. Back rioted. It helped things a lot. -- -- you know -- and I don't mean that day you know get off topic but. Our governor dean has decided he wants to raise our income taxes. 26 point 25% can you imagine. That would define Texas would. And are now so it I am alive and now speaking of. -- let's take a look at your stocks today you like the domestic auto makers specifically. We're talking about General Motors. And forward why would you like auto stocks. Well I tell you we liked them for a while and we're glad to see they're now performing so well in the fourth quarter of last year. Continue the momentum this year. May not counter intuitive but last year. We felt so positive about the US economy because of the housing market. How strong the trends were becoming housing yeah. And you thought. Report this morning. They confirmed that -- has the highest. The highest. Sales and for years and in house. All and there's a very direct and strong correlation between. Not only had the housing market paying US GDP. But housing and honestly. OK so -- -- fact that housing is getting stronger leads you to believe that GM will do better are now I know. That auto sales were very light meaning we didn't buy a lot of new cars and 89 even ten they've started to recover now. They have they have and we think that momentum. Will continue to build in the US. Because both Ford and GM are doing. Major. It that we -- -- are not only there are there existing models by introducing new models it's going to be. You know just just. -- process. I heard the Ford F 150 is the -- -- truck mechanic came -- -- I heard it's like just unbelievable I've got to go take a look at one. Now you know the technology. And and are on those is just going to continue to build. And it's you know everybody today wants I iPad iPod all the technology they can get -- And it's gonna be even more important to have the updated technology in their and their product. With you by General Motors stock right now it's about 2961. Share right what do you think the upside -- my dad is. Well and I work. And and we we consider these Chinese stocks and we by the values stocks and growth stocks -- there's going to be some real earnings visibility here but. Just based on cash flow. Reasonable multiples to cash -- we get about thirty. Between 3035%. Upside down of the. On Ford as well as Ford set fourteen dollars a share. -- -- is thought and it's party had a good man of the -- stay -- -- around nine dollars and now. You know -- -- closed at fifteen but yet we still think there's not. I'm old enough to remember when GM paid a dividend the -- ever picked up their dividend again. I so I think that they've announced that huge stock repurchase program -- the five -- -- any in stock repurchase program I think that's there. Their goal right now is that to get that stock back. From you know from the government and back -- That board just recently. Doubled their dividends now in the dividend is close to three. Yes Soledad that's pretty good you know you you look at especially if you're thinking get another 30% in price appreciation on the stock. And you couple that you're getting paid to wait right so get the wait two years for the 30% gain in the value of the stock. At least your -- a dividend on your money. And how they deal with the unions and -- going to be of the -- you know the union's gonna put a gun to their head once they start making some money. Well I had. I think as long as the unemployment rate is as high as it is we think that will increase. Certainly certainly that jobless. Environment I think will will hopefully help them. Should. Not Jeannie thanks for your time appreciate your -- thank you very good -- comment stating. Yeah now the. We're gonna need to lock and a lot of other things or eight. Minutes of Texas attitude up here in Massachusetts June -- and a -- no state income tax cowboy talents I had no state income tax in Florida. No state income tax in New Hampshire it would it would with the governor. Fails to understand is that you know we're not stupid. Americans are not stupid Boston people are not stupid and Massachusetts residents are not stupid so if you're gonna taxes at six point 25%. What's going to happen is you're gonna get to retirement age in -- okay. I'm done work and for Raytheon I'm done work and for fidelity and done work and for State Street I'm retiring I'm gonna move to New Hampshire why in state income tax and in -- move to Florida. In devastating attacks and those -- the worst. People that you want to possibly lose EEE do not want your retirees. Moving out of the common well they're they're great maybe. The good citizens you know commit crimes they don't go on food stamps they don't take advantage of public assistance use cash money buying things they pay they pay their bills via the don't have kids in the high school -- I mean it's just. We knew you think about the actions and be the consequences. Of raising income taxes what it does is it. -- if it did. Blitzes behavior -- if you are re retiring. In your saint yourself -- I was gonna retired and Kate and I Al are retired and keep our retired economy times have we heard that right. You go down there he spent the Summers down there are retired and keep. But what people are gonna do losers say. Well I'll spend. Five months and Kate and spent seven months in Florida and I'll be -- Florida resident yeah. Or I'll spend instead of retiring indicate as -- -- residents are booked a -- at the -- Rate outlook to Portsmouth, New Hampshire it's beautiful and I would you go out there. Rate lower cost of insurance no sales tax no income tax so governor I hope you're listening I hope you're paying attention what you're doing is. Forcing a continued exodus of the good people of Massachusetts in your forcing them. To move outside can you speak to you know we we did have a text or -- into the -- like I guess they laughed at me for saying. I'm gonna run out and get a part time job. And you know hey you you're only gonna lose ten bucks a week for you make me laugh by saying -- you explain to them up between the payroll tax cut. In this sales income tax increase how much money could be affected for somebody out there you know that's -- month. That's the thing that people. Antique -- who pulling the sale okay big deal 2% paid. Cut because of the increased tax war another 1% a big deal to only thirty dollars a week. Let your make it fifty grand a year Wright and and that the C 2000 dollar paycheck. Medical insurance it's coming out of that yet like that's coming out of that you've got your work that the federal income taxes that are coming out of your state income taxes. Your 401K you're gonna have thirty dollars less so if you have a thousand dollars you might have only been bringing home 700 anyway right. So now that 700 isn't 70670. Dollars that you're bringing home instead of the original 700 talked about a 140 dollars a month gone well in -- the people that are making a thousand dollars a week they spend all that 700 right they sped off and just do. And an in their. You know so if you're making half a million bucks a year. And your taxes go up -- -- you're still you're not spending your half a million dollars a year if you're making 50000 dollars a year in your taxes go up. It's gonna cut down on how much money you were able to spend it sat down on the amount of times you go out to dinner it's gonna reduce. The amount of money that you're able to spend on and on optional type items you know optional meaning you know -- by chicken or do I buy hamburger immediately if it it's. It boggles the mind. To think about what who was advising the governor when he made this decision. To propose raising income tax he can look at the near hit hit it for the candidate agonized and just a fundamental lack of understanding about basic economics a sales tax. --