00:00SHE SUSPECTS THAT COULD MEAN A HIKE THIS WEEK. LET'S WELCOME HILARY KRAMER FROM KRAMER CAPITAL RESEARCH. WE HAVE SEEN THE S & P 500 ENTERING BULL MARKET TERRITORY TOGETHER WITH A SOFT 600, THE DAX, THE SOUTH KOREAN KOSPI. IT SEEMS THE MOOD IS UPBEAT WHEN IT COMES TO RISK ASSETS. ARE YOU EXPECTING A HAWKISH TONE TO COME FROM THIS WEEK'S MEETING? HILARY: IT ALL DEPENDS WHAT HAPPENS WITH THE CPI NUMBER PRIOR ANGER -- PRIOR TO THE MEETING WEDNESDAY. THE EXPECTATION IS 4.4%. WE ARE TALKING ABOUT INFLATION AND WHATEVER THING IS COSTING FOR EVERYONE. IF FOR SOME REASON WE DON'T SEE RATES INCREASE THIS MONTH, AND NO ONE IS EXPECTING IT. EVERYBODY IS THINKING WE WILL NOT HAVE A RATE INCREASE, BUT IT'S DEFINITELY ON THE TABLE FOR NEXT MONTH, IT'S COMING. BECAUSE WE ARE GETTING AHEAD OF OURSELVES. WE ARE FROTHY AGAIN. EVEN WITH THE MONEY NOT BEING FREE, IT IS STILL FLOWING. WE ARE SEEING INFLATED VALUATIONS. SOME OF WHICH ARE JUSTIFIED AND OTHERS HAVE GOTTEN AHEAD OF THEMSELVES SUCH AS, I LOVE NVIDIA. IT'S GOTTEN AHEAD OF ITSELF. SHERY: WE CONTINUE SEE THAT -- TO SEIZE THIS ROTATION BACK INTO TECH STOCKS. NVIDIA AND THE FRENZY AROUND ANYTHING RELATED TO ARTIFICIAL INTELLIGENCE. WHERE WOULD YOU GO FOR VALUE IN THIS SECTOR THAT SEEMS OVERHEATED AT THE MOMENT? HILARY: RIGHT NOW WE ARE LOOKING FOR COMPANIES THAT STILL REPRESENT VALUE. THAT IS WHY WE ARE LOOKING AT COMPANIES LIKE OXLEY PETROLEUM. WARREN BUFFETT OWNS 20 WEIGHT PERCENT OF THE COMPANY -- 28% OF THE COMPANY. WE BELIEVE IT'S UNDERVALUED. IT'S NOT JUST OIL, IT'S NATURAL GAS. IN THE RIGHT DIRECTION. WE THINK LOOKING AT AREAS LIKE THAT, I WANT TO ADD, EVEN THOUGH ORIGINALLY I HAD NOT DISCUSSED IT PRE-INTERVIEW, BUT U.S. BANCORP, USB, THERE ARE STILL SOME FINANCIALS, EVEN IF THE FED RAISES RATES, THERE ARE SO MANY SHORTS ON A BANK LIKE USB THAT ALL WE NEED IS GOOD NEWS AND WE WILL SEE USB SUDDENLY GET BACK TO WHERE IT WAS. THERE IS ALSO VALUE IN SOME OF THE ELECTRIC VEHICLE COMPANIES THAT HAVE BEEN LEFT BEHIND WITH EVERYBODY CRAZY ABOUT ARTIFICIAL INTELLIGENCE. SHERY: ARE YOU MAKING AN AI BED AT THIS POINT? HILARY: THE ONLY AI PET I WOULD MAKE IS PALANTIR. PALANTIR'S PROBLEM IS TRANSPARENCY. EVERYBODY BELIEVES SINCE THE MINUTE PALANTIR WENT PUBLIC, AND FIRST IT DID WELL IN THE $30-$40 RANGE THAT PALANTIR WOULD BE THE NEXT 1000 DOLLARS STOCK. PETER THIEL WAS BEHIND IT. BUT SO MANY OF PALANTIR'S CLIENTS ARE GOVERNMENTS. THE SECRETIVE SIDE OF GOVERNMENTS. SO THERE IS NOT A LOT OF INFORMATION TO GO ON. BUT IF THERE WAS EVER A COMPANY THAT HAS THE TECHNOLOGY FOR ARTIFICIAL INTELLIGENCE AND FOR LOW UNDERSTANDING DATA AND DATA ANALYSIS AND USING IT IT IS A COMPANY LIKE PALANTIR. WITH SUCH A DEPRESSED STOCK PRICE NOW, PALANTIR UNTIL A FEW WEEKS AGO WAS TRADING UNDER $10. INSTITUTIONS WERE NOT EVEN BUYING PALANTIR. IT LOOKED LIKE IT WOULD GO BELOW FIVE DOLLARS. BUT NOW WE ARE BACK IN THE TEENS WITH PALANTIR. IF THAT TAKES OFF IT COULD BE READ A REALLY STRONG ONE -- BE A REALLY STRONG ONE. WE THINK PALANTIR WOULD BE A REALLY GOOD WAY TO GO WITH ARTIFICIAL INTELLIGENCE. SHERY: HILARY, ARE THERE ANY OTHER AI ADJACENT OR AI BENEFICIARIES WE HAVE FOR NOT -- PERHAPS NOT BEEN THINKING OF? WHAT COMPONENTS WILL YOU BE LOOKING FOR IN THESE OPPORTUNITIES? HILARY: THERE ARE COMPANIES LIKE CREDO TECHNOLOGY. THE TICKER SYMBOL CRDO. THIS IS A $16 STOCK. IT IS THE CISCO OF NETWORKING. AI NEEDS A VERY STRONG NETWORK BEHIND IT. IT NEEDS A CLOUD-BASED NETWORK FOR ALL THE INFORMATION TO BE ORGANIZED, ANALYZED, AND TO COME BACK OUT AT THE END USER. AI IS ACTUALLY NOT SOMETHING THAT IS SO NEW TO US. IT IS JUST THAT WE HAVE COINED IT AND WE ARE FINALLY FINDING APPLICATIONS FOR IT. DATA ANALYSIS COMPANIES LIKE SPLUNK HAS BEEN AROUND FOR MANY YEARS LOOKING AT DATA AND UNDERSTANDING THAT DATA CAN BE TAKEN AND EXTRAPOLATED TO MAKE ITS OWN DECISIONS. THAT IS WHAT WE ARE SEEING. EVERY TIME WE GET ON OUR IPHONE AND WE ARE TALKING TO SOMEONE AND SUDDENLY WE SEE AN ADVERTISEMENT COME TO US, IN MANY WAYS, THAT IS AI. THAT IS DATA BEING COLLECTED THAT IN A MILLISECOND IS BEING SHIPPED BACK TO THE COMPANIES THAT ARE DECIDING, THE AI COMPANIES THAT, OH, THIS PERSON NEEDS INFORMATION ON VACCINES, OR NEW CARS, OR INSURANCE. THAT IS WHAT ARTIFICIAL INTELLIGENCES. THAT IS WHY IT IS SO SCARY TO SO MANY. OF COURSE, I HAVE TO ADD THAT ON ARTIFICIAL INTELLIGENCE ONE OF THE MOST IMPORTANT POINTS IS ONE OF THE REASONS IT HAS BECOME SUCH HYSTERIA AROUND IT IS THE CONCERN THAT SO MANY JOBS WILL BE REPLACED. I THINK WE MUST ALL UNDERSTAND, IT'S NOT LIKE EVERY JOURNALIST IT'S NO LONGER GOING TO HAVE A JOB. IT WILL NOT WORK THAT WAY. EVERY DOCTOR IS STILL GOING TO BE WORKING. WE WILL NOT BE LETTING ARTIFICIAL INTELLIGENCE DECIDE, YOU KNOW, WHAT KIND OF AILMENT OR CHRONIC DISEASE SOMEONE HAS OR PHARMACY. SO, EVERYONE NEEDS TO BE MINDFUL AND REALIZE AI IS A CRAZE RIGHT NOW. HAIDI: IF YOU ARE SCARED FOR OTHER REASONS, ABOUT BROADER MACROECONOMIC INSURGENCIES, YOU ARE SAYING THERE IS NOTHING WRONG WITH BUILDING A VALUE PORTFOLIO AT THE MOMENT? HILARY: THAT'S RIGHT. THAT IS EXACTLY WHAT YOU WANT TO DO. LOOK FOR VALUE. ONE OF THE COMPANIES WE HAVE ALWAYS LOVED IS FIVE OR ANIMAL HEALTH --FIBRO ANIMAL HEALTH WITH A 3.5 PERCENT DIVIDEND YIELD. WE LOVE THIS BECAUSE IT'S ABOUT TAKING CARE OF HERDS AND PETS. WHEN I SAY HURTS, HERD IMMUNITY. THESE ARE VACCINES, ANTIBIOTICS, MEDICATIONS. NUTRACEUTICALS. THAT'S MORE IMPORTANT THAN EVER BEFORE. I THINK POST-COVID WORLD, THE INTEREST IN MAKING SURE THAT ARE HE RDS, WEATHER HOGS, COWS, OR GOATS ALL HAVE TO STAY HEALTHY. SOMETHING LIKE FIBRO ANIMAL HEALTH, A SMALL-CAP STOCK, HAS BEEN YET -- LEFT BEHIND. BUT YOU HAVE A DIVIDEND YIELD AND A COMPANY WHOSE MARKET CAP SHOULD PROBABLY BE FIVE TIMES HIGHER THAN IT IS WHEN YOU LOOK AT NOT JUST THE REVENUE, BUT THE EARNINGS GROWTH. THERE ARE COMPANIES LIKE THAT YOU SHOULD BE BUYING. THERE ARE OTHER COMPANIES. IT IS REALLY FASCINATING. WE HAVE ALL BEEN INTERESTED IN AI FOR THE LAST FOUR WEEKS WATCHING THIS CRAZE WITH THE BIG TECH COMPANIES COMING BACK. BUT WE HAVE FORGOTTEN SOME EV COMPANIES AND COMPANIES THAT HELP EV. MOBILE E A SPINOFF THAT USEYE EXIST AS AN ISRAELI COMPANY. INTEL OWNED MOBILEYE. WHEN INTEL HAD TAX CREDITS TO BUILD ITS OWN SHIP PLANS IT SAID, I WILL SPIN OFF MOBILEYE AND USE THAT MONEY TO BUILD CHIP PLANTS IN THE U.S.. SO THAT IS EASILY A 100 DOLLAR COMPANY BECAUSE MOBILEYE IS NOT JUST DOING SELF-DRIVING. THE KEY IS ITS ASSISTED DRIVING. NO MATTER WHAT KIND OF CAR YOU HAVE NOW, JUST GOING TO CHANGE LANES AND HAVING A BEAT THAT SINCE YOU BACK IN YOUR LANE IS WHAT MOBILEYE DOES. IT'S VERY IMPORTANT. IT HAS WIDE USE ACROSS ALL AUTOMOTIVE AND TRUCKING CAPACITIES. SO, PLEASE, LOOK AT COMPANIES LIKE THAT. WHERE THERE IS STILL OPPORTUNITY. THERE ARE COMPANIES THAT WENT PUBLIC THAT NO ONE HAS LOOKED AT BECAUSE THE IDEAL MARKET IS COMPLETELY DEAD. IF I HAVE A MINUTE OR 30 SECONDS TO TELL YOU, THE NEXT TRACKER TAKES BIG INSTITUTIONAL SOLAR FARMS AND THEY ARE ABLE TO ADJUST THE SOLAR PANELS TO MEET THE DEMANDS OF THE LIGHT TO OPTIMIZE HOW MUCH SOLAR POWER IS BEING BROUGHT DOWN INTO THE GRID.