Stop! Check These Stocks Before Earnings

Let's jump right into it. We're going to start off with Google. No need for an intro. Google used to be $400 of a stock and I'm talking about G OG L. Now it dropped down about $50 to about 357 bucks each. I like this one for the long term. If you got a Roth IRA, you work a 9-5, you're trying to retire from your business that you're in or retire from the job that you're in, Google is going to be a stock that I could see helping everybody get there. So, what I want to go forward with is looking at a great fundamental kind of metric or a fundamental number that you need to be able to learn and pay attention to. So, class is in session right now. You ready? You're going to go to Google and you're going to look up any stock name. I picked Google and I said FCF margin. When you look this up, it tells you a number in a percentage. This is 15%. That's a positive number. That means if Google stock falls down, then I'm willing to buy it. Why? Because out of all of the money that Google makes, what they really get to keep is 15% of that money after they paid all the employees, pay for all of the buildings, pay for all of the data centers. That's what they getting to keep. And if it's positive, that means that they got more money to just make some other choices with. But if it's negative, that mean they burning through the cash. And that's terrible for business. So now, if you appreciate that FCF margin tool that I just put into your tool box, write FCF margin in the chat so I know that you remember it. I want you to commit that to your long term. We do not buy the dip when stocks are coming down when they have a negative FCF margin. A lot of people like to over complicate it, but that's how you use it. If the number comes up negative, we ain't buying the dip. If the number comes up positive, then we more willing to buy the dip. And the higher the number, the better. If it's over 20, that's excellent. If it's 50 60, that's great and phenomenal. But Google has their earnings coming up, and this is on Wednesday, the 22nd of July. We like to see it. So, with this being said, I start to look at my Google position. I see how it's moving. On my trading account, I'm up $2,700 or 50%. On my long-term account, I'm up 358K, which is worth more than the house that I own, which means I got more money in Google than I spent buying my first home. That's what it looks like to be a long-term investor through the ups and the downs. And I never say this to brag. I say this to show you what you could do. There's so many people who believe that they can't do it. And the thing about believing that you can't do it is you're probably right. Whatever you put your mind to, you're going to get to. Whatever you believe you can achieve. If you believe that you can't do it, you're probably right. And if you believe that you can do it, then you're probably right, too. And I'm here to help you do it. So, let's get into the real zones on Google. If you happen to see them, you know this is where I'm loading the boat at the 270s. If I see that, I'm going crazy loading the boat on that. If the FCF margin stays positive at the 337, I'll load up there, too. Not as heavy as the lower one. As long as that FCF margin stays positive. And again, when you saying it to yourself, you might think to yourself that you don't get it, but you do get it. And I want to just help you to be confident. So, here's an example. You're going to pause the video. We're going to do this together. We looking up a stock called Service Now. I currently have 10 shares. I got a starter position. I got $1,000 in there. I didn't really load the boat on it yet, but I'm looking to get more when the time calls for it. Let's say we don't know nothing about Service Now. You just hearing about it for the first time. You're going to go to Google. You're going to look up Service Now FCF margin. And if the number is in the negatives, do you buy it? That's the question. If the number is in the negatives, do you buy it or do you buy it when the number is in the positives? If you can answer this correctly, that means you understand how to use the FCF margin. And remember, the higher the number, the better. When you get to 20 and 30, that's exemplary, family. That's excellent. That's elite. And some companies have even higher than that. So, as a piece of homework for you, I want you to do that. I want you to look up Service Now, and I'll give you the answers for that. But a real piece of homework for you is going to be go find a stock that you like and tell me what the FCF margin is on it, and come back to this video. And then once you submit it, you submitted your homework and you working your way up to really understanding how to be elite and a pro on this. And I want to share information with you like this because a lot of people try to gatekeep it or not teach you in a simple way and make it seem so complicated when a lot of these things could be very simple. And even you could teach your grandma how to say, "Oh, the FCF margin is negative. Don't buy the dip. The FCF margin is positive. Oh yeah, I'm buying the dip." That's how you do it like a pro. So service now, ticker symbol NW. I have 10 shares of it right now. I'm down by 1%. And it doesn't mean that this thing can't fall further because it could. But it is what it is, right? If we seeing the numbers looking good, then we like that. So service now, I look up NOW FCF margin and I see that it got a 40 to 44% representing a strong ability to convert revenue into straight up cash. So we like to see it. Service Now used to be $150. Then it came down to the $83. So it got a huge range of almost dropping 50%. So that means it could almost double from here too. So when you see the low points, that's when you would prefer to buy it. However, in the 100s, it's okay to buy it, but this is when you get into a starter position so you can see if you could catch it on these low points instead of being so eager and rushing. With that being said, we want to look at what the Wall Street analysts are saying. There's one called Truer Securities, and they're maintaining a buy rating and saying that they can see it going to $130, but it already went to $150. So we can see it going there too, especially with this high free cash flow margin. So here's some information on Service Now. They're saying that it's the AI workflows. What Service Now actually does is work with the Fortune 500 companies. I'm talking about the biggest companies in the United States. And they're saying that most companies have AI, but few of them have the way to deploy it the right way. They just burn it through money. So Service Now is actually helping those companies do it. And you might think to yourself, okay, but is anybody really using Service Now? and they said that they are working in some capacity with 85% of the Fortune 500 companies of the United States. 98% renewal rate. Almost everybody that signs up does it again. And then they got over 95 billion workflows or ways that they could kind of maximize for certain companies to work in their specific area. So Service Now is really going crazy in terms of the artificial intelligence and helping the other companies do it. So now let's get to the next banger on the list and this one is ASML. This is looking like a $1,800 stock. All this company needs to do is a stock split and then you'll be able to get a better idea as to what's really going on here, right? So, this is a company that it get to a high about $1,800, but it's a $700 billion company. What does that mean? Like I said before, it just looks bigger than it is cuz the stock price is so high. But eventually, I can see them splitting the stock and then people will be like, "Oh man, I wish I would have bought that before it split." Just because they didn't understand it and they didn't understand the game. But the PE ratio is now 59, which means this isn't the absolute best time to buy it. But it's still a good company longterm because believe it or not, this is a monopoly company. The type of computer chips and things that they do, nobody else could do it. Not Nvidia, not AMD, and none of these other chip companies could do it the exact way that ASML does it. Nvidia is still the biggest dog in the game. Do not sleep. AMD is still an absolute banger, but this is standing in a lane that's free and clear cuz nobody else is doing what they're doing. So ASML has a support level at about 1,700. I will buy this at this price at 1,700 with the anticipation of seeing it go to over 2,500. But I much prefer to get this lower down in the low thousands. But like I said before, sometimes you got to get things when they on sale. But sometimes you're not going to get the sale, but the value is still there. Everybody always waiting for a sale, sale. You ain't going to always get the sale, right? That ain't how it work. Sometimes you got to get it at the regular price and then the regular price when looking back on hindsight that is a deal now. Just like those of you who I mentioned this before when you bought a home pre- pandemic, it didn't seem like it was a deal back then. It seemed like all right, yeah, we going to make it work. Let's see. And now you look back a few years later and whoa, that was a deal because the value went up. This is how buying assets works. So ASML, I had bought my starter position at $950. I'm looking to acquire more of this and now I'm up over $800 on this one. And I bring this up to say somebody had said to me when I bought it at $950, "Man, that's almost $1,000 stock." I'm thinking, "Man, that's like buying it at $95 if they just did a stock split. They just didn't do it." And we just waiting for that to happen. So, this is a absolute banger. And then I told you how to research these things to see if it dips down, is it something to buy? I look up ASML, FCF margin. All I need was an internet connection and I can see that it's saying that it's between 26.4 and 26.6, meaning they get to keep 26% of all of the money. They turning that into straight cash. Oh yeah, 20% and up on this banger. So family, I love y'all. I appreciate y'all. Make sure you following the right people on the internet.