Three-Stock Lunch: Microsoft, KB Home and Bitcoin

Eva Ados, ER Shares CIO, joins ‘Power Lunch’ to discuss three stocks: Microsoft, KB Home and Bitcoin.

Time for today’s three stock launch starting with Microsoft briefly overtaking apple is the most valuable company in the world before retreating some here with our trades is Ava AOS CIO of er shares Ava what do you think of Microsoft welcome first of all but what do you think of

Microsoft Al so Microsoft is a hold um it’s almost as you said a three TR trillion dollar stock almost at its alltime high but we need to remember it has among the best margins in its sector 43% for ebit that’s three to four times larger than its beers and also we have

Seen recently a shift when it comes to the market to a less aggressive position and that has benefited on large cap stock stocks Mega caps and in that case Microsoft and so for that reason with the with the tensions in the Middle East uh with the in the Red Sea uh the supply

Shocks that we are seeing and also the current um the recent um inflation reading with PO with a 3% increase and that’s slightly elevated so I think I think this tension in the market in a less aggressive position is going to benefit um it’s going to benefit

Microsoft and also large cap and mega caps exciting day to see them at least briefly overtake Apple feels like a preview of a bigger story this year in meantime KB Home Ava better than expected Q4 results beat on the top and bottom lines but EPs and revenue were

Down year on-ear and the stock is in the red right now what do you do with it uh so that’s a sale as you said um their home sales are down and also their home prices are down revenues um are are also down for the last year and we

Believe that’s going to continue with a 7 to eight% mortgage um rate range uh that’s not allowing uh especially younger firsttime buyers to buy a new house but also for current uh homeowners who have secured a 3% mortgage rate during covid they’re reluctant to face a seven to eight% so they’re not selling

Their houses to buy new ones there’s very low activity and we think the low demand will continue until we see a significant drop in mortgage rate and so for that reason I think there are better locations for investors in other sectors all right Ava let’s move on to

The question of the day and that is Bitcoin up more than 10% this month on hopes the SEC would approve spot ETFs which it did game Cher that lets investers play the space without directly owning the stuff the SEC of course did so yesterday 11 new spot Bitcoin ETFs started trading today which

One if any do you like best AA I would say black Rock first of of all I think the underlying asset will appreciate in value because there’s higher demand but also owning an ETF is a safer most most importantly a safer but also more convenient way for institutions and money managers but also

Firsttime retail investors to buy and get exposure to bitcoin instead of instead of buying it directly the reason why I choose black rock is that we’re speaking about a portfolio of one asset one single security which there’s nothing creative about it so it all comes down to who the custodian is in

Most cases that’s coinbase except for Fidelity which is its own custodian and also the expense ratio that’s why that’s there is a price War we have seen the prices come down the expense ratios come down they’re waving their fees for the first six months or 1 billion or five

Billion and I think Black Rock being the biggest asset manager out there with 2.5 trillion in assets they have economies of scale to compete in this war and be among the winners with further drops as we have already seen them dropping their R AA great to see you thanks for being

With us today thank you Ava OS