Todd Schoenberger - The BlackBay Group

Welcome back into the financial exchange jobs -- -- billion poor Barry Armstrong on Friday October 19 and joining us now. We have Todd shown burger from the Blackberry group and Todd. How are you this morning. I'm doing great shot by Travis and. Absolutely so let's let's talk first I know there's been well. It's it's the middle of earnings season right now so with regards to traders looking at earnings what exactly are traders focused on at this point in earnings season. Right well that's one thing to look at Hapsburg Foreman said the quarterly earnings season. Clearly is that quarterly compassion on you start looking at some of these numbers that -- -- companies are giving so we wanted to. Clearly we want to see a speed of what the Wall Street consensus is is looking. Where that's at -- signing period. But really going forward a step forward looking guidance it's actually what the company is going to talents. Well we can expect that were coming quarters and with the recent action from the head. You would think that a lot of these companies would be a little bit more all -- -- more optimistic. And we quite we haven't quite heard that these bad bet overwhelming positive on companies that are. And do you think of a big portion that has to do with his looming fiscal cliff in the uncertainty that is out there I mean I don't if if I were running a business right now. The last thing I wanted to do was make could be doing is making big capital investments are going on hiring someone. Simply because I don't know how much it's gonna cost and I don't know what my revenues will be for next year. Bingo that that's a brilliant topic because. When you start thinking of this fiscal let -- -- election as well. It has created an overwhelming amount of uncertainty and proper for porcupine at a -- -- -- which are staying. -- with a lot of these corporations and what they know we talk about economics -- should spitting on the books a -- company's balance sheets. By it they're not going out and investing it because they know that they don't need to go out they don't need to go out and they don't like a lot higher because debate period and had deep. He had he answered any actor as far as how much because it's going to be -- mean we just heard from. Ramallah would be the -- -- -- some are about stretching every suite with garden and eight cent a bit reluctant to take. And or major metropolitan cities exports -- and -- police. Actually limit their hours dependent our current category. So they don't have to worry about health care opponent to. And their -- they're going to be able to say so yeah there is that fiscal that the issue would hire actors and obviously -- With the current that is status of things at the White House. And turning to that election now -- if Romney could potentially wide in his that gap and pick up some continued momentum over the next couple weeks leading into the election. Do you think you could see a little bit more bullish activity over the next few weeks. Yeah -- academy. When you actually would the first debate. You you've sought a little bit crazy or Wall Street there was this overwhelming feeling that that Obama was going to be reelected. And and with that said. He has more government spending budget I have further action from the Fed and as you know Ben Bernanke's term. Expired in January 20 or so to Wall Street traders are agent since there's nothing organic. About the economy all we want -- -- at some type of aid exposure from the spread at least a little bit more in our country. And and therefore -- -- apartment -- you pretty much guaranteed that's going to happen. Which pay out with a running into Credo. Well that's actually telling it especially now have a little bit of a gap that Gallup actually has Romney -- that we -- seven point right now. So once said the tunnel Wall Street at least. Well -- traders is that now with a Romney victory we note that Nokia -- somebody and they are probably not gonna seed gardening deep. Out there or for the long term however you are going to have a little bit. More competent in the business -- -- is that the and I published an impact beat a you will have more spending more hiring were higher paying job and I can only help the economy and therefore valuations and -- -- market. So together good at doing that are on each and really in the next couple weeks. Really widen that -- Preparing our wore a skirt you have more abortion and I think by law. So so -- into the nitty gritty at this point. In this type of economy what types of stocks do you like right now specifically whether any companies that are really on your radar screen at this point. What McDonald's reported earnings this morning and the company is getting slammed. A bit actually down 4% as we speak. And a big -- and I went higher commodity are they were at the bit poverty warned us about. But also the week is in Europe 40% of McDonald's revenue is actually not a purist. So because people in the yards and an actor -- Doing their feet and there -- that they have the -- in -- earning. I love this story it would make I mean that accompanied that it actually 30%. Profit margin when it's strange. There's mixed at patriots are worried. Great Petersburg or other products but there -- other lines. A bit considered doing so that's one other companies that if you wanna get into a great entry point -- an investment and thinking long term. -- -- -- -- -- -- -- And then he lost to continue to look into Coca-Cola. So we have 70% profit margin McDonald's went to a links. I had with Coca-Cola it's another purse great. Got a company actually saw our first part -- -- in the carbonated drink occasion. Actually grew 4% last year market share increased workers and -- that's tremendous car company it's been around fervor under years. And they action hero and target the -- ordered did that 20/20. So again I'm not long term or a great -- story ago. -- and it -- copy 2.4 as court ordered her portfolio and Iowa recently as McDonald's and Coke color that it has winner. And it -- say that someone is looking maybe a little bit more growth oriented and know that you also talked about Linkedin in the past he -- a little bit more about this story. Yeah I love going and because here Abbott company. That -- into a social networking companies like at peace what they've relied so much on advertising -- it clean and doesn't do that. They actually received two thirds of their revenues from premium memberships. And what -- -- -- a candidate stopped and it people look at -- jeopardy one. They won a promotion or whatever they don't want this site and they they paid a premium membership something between twenty I -- get our mind. But two thirds of all their revenue is our premium membership and that a couple hundred -- only a million subscribers. I -- it intended it it's really study out. The much smaller than what they look at. When you think that the worst story that's out there -- -- -- -- is not only growing domestically but also internationally 60% of all our members. Are from outside of the United States. So you look for the trooper story did you also look for things that you think the labor market is going to improve and -- -- got a little bit. It especially -- it's into the White House but as we move forward what's not right that more people going to be its search engine. Such as they act up quite a spectacle in debt and they -- -- the preparation of a monster.com. When you tell women into one of these current -- they have all of Britain at that point out. To employers to -- burgers. Bet here is something that they're not as keywords but it also who are connected to what you posted a -- or your -- when -- order are are out. And that's a bit. When we separate that. From the monsters of the world so yeah Lincoln had a great -- great I love it because the company and it. To cancel that could be two weeks I got when that company the I. For the trade and -- for the long term about. Absolutely well -- appreciate the insight and we will catch up with you soon. Following up on these companies. RHI -- have a great weekend. All right you too that was Todd -- -- from the black big group. Coming up next on the financial exchange we're gonna be joined by Larry Kudlow from CNBC that's coming up right after this break.