00:00 Speaker A
With the new year comes a fresh batch of opportunities to set up your portfolio for upside potential. And we’re uncovering which names exactly can help make some investing magic. Barbara Doran, BD8 Capital Partner CEO and CIO joins us now. Thank you for joining us here. And uh I just want to get yes. I I’m I want us to show the Wi-Fi interactive because you have a few picks for uh the next year and we’re showing the 2025 year-to-date totals and you can see some big ones there. NVIDIA, Alphabet, uh Broadcom, Goldman Sachs, Uber, Netflix, Gold, uh Boeing, Starbucks. What’s the theme here? Or are there a couple different themes that you like?
01:05 Barbara Doran
I think there’s I think there’s a bunch of different themes. Um even among the technology stocks, there’s clearly an AI theme. I think Nvidia and Broadcom, um people keep getting spooked about overbuilding, too much capacity, it’s uh a bubble. I don’t see it. In Nvidia right now is a 26 times, you know, earnings next year and those earnings will come up. And so I think by a lot of accounts and I certainly believe this that we are still in the early innings. And if you look at for instance, the number of corporations that have yet to really integrate AI fully into their operations. We’re talking single digits. A lot of people are really working with consultants trying to understand what they need, how they implement and so I think you’re going to continue to see this happen and you’re going to see ongoing productivity increases.
01:54 Barbara Doran
You know, the other names, I mean you have one is a turnaround. Um obviously that’s
01:58 Speaker A
Would that be Starbucks? All right.
02:00 Barbara Doran
Yeah, you got it, you got it. It has not done that well this year because there’s always a question of timing in these things. And I think here you had Brian Nichols, the star CEO who came in after turning around Taco Bell and Chipotle, you know, it was a big hire because Starbucks had lost its way. A great franchise, premium franchise, but they sort of had lost its uh lost its step there. So he’s putting a lot of initiatives into place whether it’s about operational efficiencies, changing the ambiance, the experience of the customer, the staffing, etc. But a lot of those big initiatives are not going to really bear fruit unt fully until this year. However, in the last quarter, we saw for the first time in almost two years, they had positive same-store sales. and to me that’s an indication that the turnaround is working and at these prices, I think the risk reward is very attractive on Starbucks.
02:44 Speaker A
I want to talk to you about another kind of outlier here. We got GLD on your list. That is the gold ETF and we saw gains in the precious metals. Gold was on the small side. We saw silver 150 plus percent. What do you like about the precious metals in 2026? Specifically gold.
03:02 Barbara Doran
Well, Yeah. Well, I think that for me there’s two categories. You know, one is gold and I think what gold is going through, Gold always was the refuge in terms of uh if there was fears, geopolitical uncertainty, inflation. But I think what’s been happening over the last few years since Russia’s um foreign reserves got impounded, um when they invaded Ukraine back in early ’22, and that was some I think 600 billion. A lot of other smaller central banks are saying, hey, wait a minute, we don’t really want to be hostage, you know, to foreign powers. And gold is an easy one to up um in the portfolios. I mean if you look at at um the percentage of gold that we hold or Germany or some of the European countries, it’s over 70%, you know, in our foreign reserves, but other countries it can be under 10%. So I think that is what you’re seeing is steady central bank buying and I don’t think that stops anytime soon. So I think gold despite its big run this year can go higher.
04:02 Barbara Doran
Now the other metals, you’re talking silver, um copper, aluminum, you know, nickel. These are all things that are so important in data center build outs and that as we know is just going gangbusters and there’s a lot of building to do over the next few years and probably longer. So I think the demand for that, it’s almost like that the supercharged commodity cycle we saw when China was just beginning to ramp up and really transition from this very rural backward economy to where they are today. So the commodity cycle was not just a typical cyclical okay, yeah, supply demand was critical to watch for a year or two then it would be over. I think this has legs and for the reasons that you know we just discussed.
04:42 Speaker A
I’ve heard a lot of talk about a possible super cycle as well. So, I want to move on. Netflix, only up 5% this year, but uh admit it has found itself in a lot of M&A drama, shall we call it that. Warner Brother’s Discovery. Um what do you think happens at with Netflix and with some of those um some of those headlines that we’ve seen on the M&A front?
05:07 Barbara Doran
Yeah, you know, Netflix is down some 30% but I I think there’s probably 40% upside because these are, you know, they they have won the streaming awards. I think it’s not I think it’s been more than M&A in the last quarter, they disappointed in terms of subscriber growth. Um churn was a bit higher than people expected. but I think that’s a lot of noise because even if as growth can slow, they have so many levers to pull. They just continue to churn out new content and really new content, I think it’s over 60% um of what viewers watch. and plus if they get this the uh you know, the library, um, you know, of whether the HBO, oh, it’s that’s 100 years of film and TV and franchises like um Lord of the Rings and Harry Potter. and that would be a win-win. but people it’s hard to measure what that’s going to be because they are paying a premium for that. But I think Netflix is still, I think it’s down here, especially the risk reward is extremely attractive.
06:11 Speaker A
I want to ask you about Boeing. Uh this is a stock uh we know it had a huge troubles in 2019, 2020 coming into the pandemic. It’s gone basically sideways for five years, but it’s up 20% 2025. What do you like about Boeing? Have things changed? Is it the year of the Boeing comeback?
06:34 Barbara Doran
Well, there’s been a lot of false starts. You know, I thought a year ago it was the year of the comeback and then they kept having delays. But it looks like what we’re seeing in the last four, five, six months is that deliveries on their some of their key planes are really ramping up. And of course, the stock was moving up nicely then we had a drop because a new plane has been delayed, certification, all that sort of thing. But they are actually the I think the key tell here is that they’re they expect to have positive free cash flow next year for the first time in a long, long time. So I think with the ramp up of two critical planes and the third one will be coming on next year, fingers crossed, but they really seem to have up their quality game with new management etc. So again, the risk reward, I think is attractive here.
07:26 Speaker A
All right, Barbara, we got to leave it there, but it has been a pleasure talking tickers with you. Thank you.
07:31 Barbara Doran
Anytime. Thank you. Happy New Year.