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Hello Scrappers recyclers and investors interested in the world of scrapping and recycling in the companies that surround it welcome to shark Scrapper live where every week we talk about precious metals Industrial Metals stocks of companies that are in our orbit in some fashion and some business related stuff it is
Great to be here this week I’ve got a really fun show planned for us pretty interesting information I think uh and I am really looking forward to diving into it today uh wow we have a lot of folks in already jarat truck fan 542 David Philly
Scrapping Irish uh Tusa away I hope I said that right tus away uh let’s see Roger at CU scrapping is watching on the television man I hope it’s not a big screen I’m ugly enough on a small screen uh let’s see Bush dog is here Bush dog scra ER ew Mike is here
Electronic Scrapper welcome uh let’s see just making sure I haven’t missed anybody everybody saying hello to each other we’re and how we’re doing and everything so that is great um so yeah just a a really fun week here H really interesting stuff coming up so uh
We are going to get right into it with our silver discussion that’s our precious metal um of course we have to do this stuff first that and that and that and that and now you can see what I’m looking [Laughter] at okay so uh Leandro carts welcome um all right so silver what’s
Going on with silver here all right so here’s my take on Silver um I’m calling silver over at a buy stage right now and I’m going to show you why here so I’m saying that that you know this is a reasonable time to be buying silver right now here’s our
24hour chart on Silver as relate to us through apmex now for those of you that are new to my site I am not sponsored by atmex I get no compensation from them at all they are just one of a couple of places that I have used to buy and sell physical
Silver and gold so good company no drama good information I’ve always had good luck and and great success when I buy and sell with them so I just like the company all right so um atmax 24hour chart here you can see we were going along pretty smoothly here for a while
Uh and then you know we’re we’re Trucking along here and then uh it you know about 9:00 it it tanked and was has slowly trying to recover here but not quite sure what’s going on although if we start to broaden out a little bit take a little bit bigger view uh we can
See that silver was you know that same kind of here’s that Plateau only that Plateau was much longer than we thought and now we’re down at another Plateau so uh let’s take a look at the week now it’s it the plateau we were looking at is kind of starts to get a little
Squished and looks different when we look at it from a whole week perspective um here was this what we just talked about with this longer plateau and then we crashed and doesn’t look so much like a plateau when you look at it this way it looks like it’s trying to climb out
Of a out of a hole there uh so that’s fine but if you look at these numbers here for the week we’re down about 1% but we’re only talking the difference between 2350 and 2275 there’s some churn here and this is what this is the story for silver right
I mean throughout 2023 you think about all the discussions that we’ve had now for over a year about whenever we talked about silver it’s the churn it’s the churn it’s there’s this churn going on with silver uh here’s our month and you can see this churn going on here for the
Month we’re down we’re up we’re down we’re up we’re down you know it’s just uh overall it’s down 1.42% but it’s it’s churn that’s going on uh for the quarter again more churn went down a little bit about 3.4% but uh you know not not anything to get
Terribly excited about there for the year we’re down 4.6% so if you draw the line from from here to here you can see that’s yeah we’re down um but again the churn is what you see going on here uh and this is you know this is kind of the story
With silver right this churn that we see going on uh for a whole year the churn gets even more obvious uh you know you just look at all this all these all this jaggedness going on you got churn within the churn almost because you can see that while you have an overall downward
Trend you get a bunch of little Pike uh spikes going on here’s a climb out but a lot of spikes going on and so this is just a a very volatile uh action going on for silver uh let’s just go right out here and look at all the way back to the mid
1990s and um you can you can just see all that churn that’s going on but look at this area right in here uh you can see that churn that most of us have been dealing with recently so the reason why I am calling uh silver you know in in
Good strong buy territory right now uh let’s go here five years so uh you know for the fiveyear period we’re looking at overall I mean not overall but from the highs here uh it’s been dropping down down and uh you know we were up near we’re kind of pushing the 30s
There um and um the research that I’ve been able to put together this week um suggests that Silver’s you know industrial value and such is g to start playing more and more uh as we you know as as things come along here but not great I mean essentially what we’re looking at is
More churn more churn now what are the quote unquote experts saying for the forecast well we’ve got there are some there are some folks that are saying that we’re probably looking at about 28 for uh in 20 in 2024 that silver should get up to $28 I’ve seen another source that is
Saying that in 2024 it’s going to get up to $34 $35 an ounce and then uh by 2025 it’s going to get up into the $48 an ounce now let’s hang on just a second because uh that $48 you know here was here was the all-time high for silver at
47 and there’s some folks out there right now that are saying that silver could by 2025 could get up to $48 so I’m not exactly sure where they’re coming in with that nothing that those folks have talked about really gives a strong argument for why silver
Would go that high so uh what what really seems to be a more reasonable thought to keep in your head is that silver could get to yeah 28 to 30 plus in the year ahead in a not too distant future right so the year ahead so
Um I’m thinking that um if you were to buy right now in these low 20s and look for some opportunities for it to dip maybe even into the High Teens but you know if you’re buying in these low 20s then there’s a good possibility that you can do pretty good you know a
Year or so from now if it does start pushing that 26 28 $30 frame go ahead and sell it uh so you know I that’s based on the research I’ve seen so far that’s kind of the play that I would be making right now if I was in a buying
Mode now um just to be I want to make sure that I’m being straight up with everybody some of you are new here so you haven’t heard me talk about this yet I will be relocating this year so I am not in an acquisition mode I’m actually
In a cash buildup mode right now so I’m looking for opportunities to sell off some of my inventory in order to get some cash on hand to support my move so I’m not very happy right now with these prices I gota be honest with you I would
Like to see them you know up in that 30 plus dollar range right now because I need to get some of this silver turned into cash but yeah that’s a different issue altoe uh so look for uh you know try to my recommendation do a little buying
Right now when it’s in the low 20s um watch for your premium uh avoid paying you know High premiums on stuff if you can if uh you know the the the one of the beautiful things about physical silver is there’s so many uh opportunities to buy silver there’s lots
Of good reputable mints out there you can get 1 o rounds 5 o 10 o those are very uh sellable kind of uh weights that are very reasonable for the average person to buy and then to turn around and sell again uh you might also look uh
Locally instead of buying from a place like apmex or Kito you might check your local pawn shops your um Marketplace um where you might have a little more negotiating room now of course be careful whenever you’re on like Marketplace or something like that you know people get this people tend to look
At it and say oh it’s silver it’s really you you know you should pay me a whole bunch of money for this so you may have to negotiate a little harder with Marketplace because sometimes people don’t understand what the real values are most pawn shops and coin dealers
They know exactly what the spot price is they’re probably M watching it as you’re negotiating the price and so then it just comes down to negotiating the premium for them um and where they are in their cash flow for the month if they need to get some cash going so uh don’t
Be afraid to look locally coin shops and uh pawn shops for some silver uh if you are looking to purchase some silver so let’s see what uh we got going here with you all what have your comments been while we’ve been talking about silver so let’s get up here I’m trying to find
The trying to find the first uh comments oh lonardo from Argentina welcome great to have you here that’s awesome uh So um anybody let’s see Sila silver anybody doing silver okay so truck fan 542 is saying out of Gold Silver Platinum what is your guys favorite investment medal so he’s asking the question and he’s saying that uh he prefers plat Irish of course said gold yeah no kidding
Irish you like like we had a guess for that one uh truck fans likes uh Platinum I’m not a big plat fan of platinum to be perfectly honest with you um I just um for me it’s just one of those things that uh I have a hard time
Wrapping my head around it you know I’ll be honest with you so for me Silver and Gold are my favorites uh for physical uh precious metals to hold uh truck fan probably going to buy some gold next okay by Gold’s kind of well last week we
Were looking at gold and it was pretty high so it’s uh you know uh keep an eye on it wait a minute you know what let’s take a real quick look I’m going to go over here to the gold spot price right now and it is at
2050 so it’s a little bit high right now bud so you might want to um well it’s not yeah Ian it’s uh yeah so 20 2053 right now so um if you’re going to buy some gold you know just on you know watch out for your premium there right uh let’s see who
Else made some comments here sold off when the Hunt Brothers were oh you’re talking about back then yeah yeah I hear you I know man that was a great time uh I did really well back then too uh so um I I liked that time too that was that was very
Awesome uh let’s see although I might buy some silver now and then when the price flies up I can sell it we’ll see yeah so well flies up you know I I don’t think it’s going to fly up I think what’s going to happen is we’re going to see this churn moving its
Way up to that point so this is when it’s really important to set your cell point so that when you see it get there you don’t get tempered into saying oh I’m not going to sell it yet you know set your sell point and and just just do
It when you get there so yeah Jr you gota you got to be really careful with the uh with your coin shops and your pawn shops uh they you know they want to make as much money as they can but uh a lot so the the best thing that I did
When I was buying from my local coin shops and pawn shops was going to the same shops repeatedly getting to know the owners that developed the level of trust and Report and we were able to negotiate in a more direct way and it wasn’t just you know them trying to take
Advantage of me or them feeling like I was trying to take advantage of them so a lot of it just like with your scrapyards a lot of it comes down to the Rapport that you have with the owners of those scrapyards uh excuse me of those
Coin shops or those pawn shops so you go in and you talk with them and you get to know them and then they get to figure out that okay this person knows what they’re talking about um then they’re more likely to negotiate in a more upfront good faith kind of way and I’m
Not saying that it’s you know that they’re out there just ripping people off you know they’re trying to make money and if they get somebody comes in that doesn’t know what they’re talking about and is willing to pay stupid money for for silver well they’re going to
Sell them the silver at stupid money because you know that’s a that person deserves to get taken advantage of because they didn’t bother to do their homework before they went in so uh let’s see truck fan wants to know if I’ve had any recent bloopers in I
Always have bloopers in the shark cage are you kidding man it’s a it’s a freaking disaster I’m joking all right well um so let’s um you know I think we’re wrapped up for silver uh interesting comments going on there and um I uh you know just we’ll we’ll see how it plays
Out with silver but uh you know it’s it it’s going to be a year of churn I think that’s just the way we all look at it uh going to be a year of churn whoa get over here so now uh we’re going to jump right into our safety note for for
Today and um the safety note as is frequently the case the safety note was brought to us today because um I kind of um you know I just it was one of these things that I was doing a bunch of grinding of stuff this week in the cage
And so I was constantly putting my dust mask on and off my dust mask on and off and so um it just you know one of those things is stuck in my head I said oh okay you know what let’s talk about um the air that we breathe uh for our safety consideration
It’s really easy for us to forget about the dust and the air that we breathe when we’re scrapping I think most folks are good about remembering to put on some sort of eye protection when they pick up their grinder or their sawsa or you know that kind of tool hopefully they
Are but it’s easy to forget the dust mask and I know I’ve made the same mistake myself I have to constantly remind myself that’s why now what I what I do in the shark cage is the my grinder and my sawsaw are right next to my eye
Protection and the dust mask is right there inside of my eye protection because I wear one of of those full face shield masks so it’s all right there and I it’s a it’s a no it’s a just a trick to make sure that I remember to put on
The dust mask but there are many types of uh things to protect our lungs from the stuff that we breathe so I thought I would just take a little bit to talk about the different types of protection that are out there now we’re all used to this kind of protection right here this
Um let’s make it a little bit thicker so a lot of us are used to these kind of dust masks uh they’re relatively inexpensive um they have numbers on them like n95 and stuff and such which um you know by the way that the number that
Comes after it is to tell you the uh how good it is at filtering out particles right so an n95 should filter out 95% of the particles particulates in the air um the then and then there’s r95s and P95 which are uh which can protect you against oil
Or some protection against oil or they’re resistant to oil um but the important thing to remember with these masks is that they’re not going to protect you against Vapors so they will protect you these will protect you from the dust and this is at a minimum level
Of protection that you would want to have on when you’re grinding or cutting or operating in a high dust kind of environment um I’ve even had some people who have commented to me when I’m taking apart some of the dirtier PCS uh especially if there’s signs of of
Uh of rats or mice or heavy cockroach cockroach infestation that I should be wearing one of these masks because it you know that the especially if you had rats or mice they might transmit some diseases that you don’t want to be inhaling and and stuff like that so uh
At a minimum you want to make sure you have some of these in your shop throw it on I recommend you get the ones that have the nose clip that goes right up there so that you can make sure you’ve got a good tight fit around the
Face and uh you know these are intended to be uh not I want to say not multi-use but you don’t want to use them too much right so after you’ve used it a couple of times throw it away get a clean one they’re relatively inexpensive next up is your elastomeric half face
Piece and the big difference here is that these will have filtered cartridges so depending upon what type of filter cartridge you put on this type of mask you can get protection against fumes the the this is this is important if you’re going to do any of your home refining kind of stuff okay
So um you uh you’re not going to get any protection against fumes from the dust mask right so if you’re refining your silver your gold and you know you got nasty gases coming out this is not going to do you any good this one will give you protection if you have the right
Filters installed on the mask and you have properly fitted The Mask now in an industrial setting in a commercial business the safety manager is trained on how to fit these and test these for people uh so that they get the kind of protection that they’re supposed to have
And depending upon the nature of the of what they’re doing there they may have a very very rigorous face mask system in place uh to protect their workers and OSHA you know has some pretty strict standards on this kind of stuff to protect workers next up is the full
Elastomeric or elastomeric full face piece this one covers your eyes uh this is important because again those fumes that are coming off from the um uh refining process or the melting process yes exactly the melting process here those fumes uh can also be a bit harsh on uh
Your eyes you know uh you’re talking about you know acid gases and things like that so you know they’re going to hurt your eyes too and you don’t want to do that you don’t want to damage your eyes so uh plus they can Splash and other things like that so if you’re
Wearing the half mask you want to have eye protection on if you’re wearing the full mask then you’ve got your eye protection covered again make sure you have the right filters installed and that the filters are fresh enough that they’re going to give you the protection that you
Need then we come to the level that I don’t think any of us are dealing with unless you are dealing with it at your workplace but uh even those of us that are in the small business side of this thing we’re not we’re probably not getting into the air powered air
Supplied kind of masks so you have these masks that have uh purifying respirators you have these that the air is that you plug into an Air Supply system you also have the the the ones with the tanks that this would be similar to what you would see a Hazmat crew or firefighters
Wearing um it is supplying air to them um so they’ve got they’re not even taking air from the atmosphere now these kind of systems are very important when uh there is the very real possibility that breathable air is being displaced by the fumes in the space that you’re at
Or that they’re too dangerous and it cannot be properly filtered so that’s frequently you know you’ll see firefighters wearing uh the the uh the tank the air tanks because if they’re in a house in a building and there’s fire there’s probably not a lot of oxygen for
The firefighter to breathe or the air is so hot that it makes it hard to breathe so that’s why they get their supplied air um highly contamination highly contaminated spaces uh people you know people in biocham kind of things will wear uh these kind of devices to protect them
Against the very hazardous potential diseases and stuff so um my recommendation uh and again I’m not I’m not qualified by osia standards uh for you know these for safety recommendations but um what I suggest at a minimum for us Scrapper type folks is have a big supply
Of these on hand and if you’re doing any kind of uh refining and and some of your melting processes too then you’re going to want to have one or the other of these and be in a well ventilated space uh and that comment came up right
Here from Earl good ventilation is a big key absolutely man you definitely need to have the ventilation because even though you might be filtering out those fumes if the space isn’t well ventilated and the air is being displaced by the fumes yeah then you got a different
Problem okay so uh make sure you have good ventilation and the appropriate uh air breathing apparatus filtering uh for yourself um I have really been doing what I can in the shark gauge to remind myself to just make it so that I don’t even have to
Think anymore if I pick up my face mask the dust mask is right inside the face mask so I might as well just go ahead and put it on and protect myself so um that is you know that that that’s the way to do it make it so you don’t
Have to think just put the mask and your eye protection right next to your grinder or your saw and that way you are it’s all right there you don’t have to think about it and you’re good to go uh no HH recycling that’s not what we’re talking about okay oh man
Oh this crowd I tell you oh man all right so on that note um it is time to move on over to our aluminum discussion but before I get to the aluminum discussion I I want to talk about something that I I read this week really interest interesting article about a
German company that is just about ready to open up a new recycling uh Center here in the United States um they they it’s both a secondary smelting area and a multimetal recycling uh capability it’s going to be in Augusta Georgia well it is in Augusta Georgia um and I just these numbers I
Just thought these numbers were so interesting interesting right so the company is called arubus they have invested $346 A5 million to open up to build this facility I think it’s on 50 acres of land or something like that um and uh they are forecasting that the site will turn
About 180,000 tons of material each year think about that 180,000 tons of material and this is going to include electronic scrap so printed circuit boards this is really exciting especially for those of us in the Southeast because it means that we’ve got we may have another buyer for
Material um now a company like a place like AR rubis they are going to be want they are going to want to buy quantities such as from boardsort.com not the 40 50 pound boxes that we sell to boardsort but the truckloads of material that board sort sells to places like rubis so
Yes it’s it’s exciting for us in the sense that with another smelting or refining operation in the United States There’s an opportunity for the people that buy material from us to be able to sell that material perhaps making a little bit more maybe maybe not and
Therefore be able to you know pass on some of that to us so it’ll be really interesting to see what happens with the printed circuit board scrap values as this plant comes online and I’m going to be paying attention to it hopefully I will be able to get up to that plant
Maybe even get a tour of it take a look around that should make for a really interesting video if they will let me um the uh one of the the uh other other interesting metrics that I saw was that they expect this plant to produce about 70,000 tons of what they call blister
Copper um blister copper is when the copper is being processed but it still has the bubbles of sulfur dioxide and other gases that haven’t fully uh refined out yet it gets little blisters on the the Ingot so they call it blister copper that was kind of interesting um
It’s relatively pure copper but it still has to have further processing to uh improve to get all those gases out of there so um really interesting to see that coming online everyday solar welcome great to have you here um and uh joining the show so um I will
Uh I’m going to look and see if I can’t uh if I can’t get an invitation if I can’t fin niggle my way up there uh to Georgia and see this place and you know see if they’ll let me do do a video on it or something of that nature that
Would be really cool that’d be really cool okay aluminum let’s get on with our aluminum discussion get over here we bring up this one we bring up this one we do this one and we do this one really important to get all buttons in the right [Laughter] order
So here’s our aluminum spot prices for the year and the thing that is most obvious when you look at these prices is uh a lot of churn and it kind of you know it’s heading down and then we’ve been somewhat stable here now uh you
Know going back to say I don’t know this July you know about July is last year March April June July is I stable in the sense that the the ba the the the the the standard price in between all the churn is about flat but you got lots of churn going on
Around that price it’s almost looks like a sine wave that’s been drawn over top of some baseline price uh for aluminum and uh you know that’s uh that that’s kind of that that really speaks to the challenges that are going on in the aluminum market right now um there’s
Just there there’s just they’re really stuck I mean they’re just having some problems uh and I one of the articles that I found this week I thought did a fantastic job of addressing the what we’ve been seeing going on with aluminum so um the uh the AR article was
Called demand doldrums it was written by George uh de Cruz and shopa bajaa and um uh you know what I mean they did a great job of discussing that while they’ve had while the Chinese market has been kind of in a downturn for aluminum demand there is increasing demand in places like India
Japan Hong Kong and Malaysia um but because the Chinese demand has dropped off the increased demand from these other places really hasn’t made up for that that difference so you’ve got you know you’ve got some good news you got some bad news the result is you get this churn now another
Very interesting thing that they talked about was and they’re talking about India here so on the one side you’ve got the aluminum producers the primary aluminum producers in India these are the people that are making aluminum out of raw ore the boide um they want the Indian government to increase the
2.5% import Duty on scrap aluminum they want it increase to 10% why do they want it increase to 10% because that means that their Prime primary aluminum is a greater value they are in a more competitive position to scrapple aluminum um but of course the flip side
Of that is there’s a scrap aluminum industry in India and they don’t want that tariff imposed on the scrap aluminum uh because it turns out that at least according to this article it turns out that the bulk of the aluminum that goes into the various foundaries and Mills is actually recycled aluminum
Because they don’t have enough primary aluminum to keep feeding the beast on a regular basis and so you’ve got this Push Pull of primary or raw aluminum from ore and scrap aluminum that are having competing influences on what India is willing to pay for um you know
For aluminum and that is being felt across the world then in the aluminum markets so I just found that really fascinating how uh you know the the political mations in India between between primary aluminum producers and their scrap aluminum suppliers can have such an impact uh even over here uh in the
US uh in the US uh we’ve got a tightening supply of the domestic uh aluminum uh scrap aluminum and uh a lot of fluctuations going on and what a lot of the aluminum producers the people that have the foundaries and the Mills and stuff uh what they did was
They negotiated prices for a year out so they’ve already set their prices for the scrap aluminum and now what be interesting is how do the yards meet the demands of the contracts they have um as prices fluctuate for scrap aluminum uh so just just a really interesting uh Push Pull going on uh
When it comes to the scrap aluminum and the Dynamics of raw aluminum versus the scrap aluminum I learned a new term today too which I this was really really cool um I love when I I love when I pick up these uh you know this this uh this
New information like this you know you get involved in this from a from in this industry in this recycling business and scrap from a certain perspective and you don’t necessarily get exposed to all of the pieces all of the little tidbits and stuff and so you know it’s fascinating
To me so anyway here’s the term I learned today they call it it’s called Zorba aluminum so Zorba um and it just makes me think of I don’t know uh wasn’t it like Zorba the Greek or something like that yeah anyway so um Zorba is defined as shredded mixed nonf feris of mostly
Aluminum from Edie current or other separators so if you ever hear someone in the business talk about Zorba now you got it now you know what that is um the other thing that I saw and I’ve seen this one myself uh is what they call adc2 um it’s an aluminum
Alloy uh it’s used for Diecast purposes uh it can also be called a383 um it is 7 77 to 86 12% aluminum maybe up to 4 and a half% copper and up to 12% silicon so where I used to see this adc2 mostly was in the material that I was getting from
The cell phone tower repair company that was a client of mine um they had a lot of this casted aluminum that needed to both mean needed to be heat and weather resistant and have good strength qualities and I remember seeing the nomenclature on the material and um uh
We probably talked about it in one of my videos back then um so just uh you know just to me it’s really interesting as you see uh these codes and these uh nomenclatures and you look them up and you say oh okay yeah that makes sense I
Got it yeah so two new terms for us this week Zorba and adc2 well they might not be New U but you know just interesting so you know having said that now if we take a look at this price for aluminum and let’s zoom in here and you you can
See that remember with these candlesticks when they’re red that means that the closing price was below the opening price um on that for that period and you can see you know it dropped off here we climbed up we dropped off and we’re currently in a dropping off uh
Line here all right so what is that going to mean for us from uh our scrapping perspective and what we would expect to see from the scrapyards I wouldn’t get too anxious I don’t imagine you’re going to see a whole lot of change going on in the
Prices uh and um you know for your for the aluminum scrap um I treat my aluminum scrap as a cash flow item anyway so you know I try to take in at least some of my aluminum every week sometimes it’s cast sometimes it’s extruded I mean I get a lot of my
Extruded from the um heat sinks that I get off of the computers uh so uh you know it’s um uh you know just just cash flow your aluminum treat it as a cash flow item uh and just keep it moving and theice prices are going to keep on uh
Fluctuating around and you know we’re just we’re just at those of us that are the Peddlers or the smalltime scrap operations man we are so far at the end of this food chain that we just get whipped around as as it as it snakes its way through the
System alrighty then it is time for our business note of the week and and this one was also another one of those you know kind of experience type things um and that is the use of credit cards to fund your business now I’ve heard a number of the business
Consultant talking head kind of people and they will say never never never never fund your business with credit cards now unfortunately that leads some people think that they shouldn’t be us credit cards for their business the important thing is to understand just like with your personal credit cards
That you know you can rack up a lot of debt really fast with a credit card uh so in your business operations think about why you’re using that credit card does it make sense to use that credit card when you’re making the purchases that you are for your business now in
Some cases the a credit card makes a lot of sense because you’re going to have have some sort of recurring payment and a credit card is great for that because you can put all the information in uh such as you know your software sometimes your the security software on your
Computer a software that you’re using for uh your video editing maybe you know I mean there’s those are the kind of examples that come to the top of my head as the recurring type of charges and it’s much easier to deal with those by giving you know by putting credit card
On it um but where the credit card can become dangerous is when you’re going to pay for some high-end kind of item right you’re not you don’t want to go buy a forklift with a credit card all right uh that’s a really expensive way to buy a
Forklift and that’s where I think the a lot of small business owners they get kind of confused because they hear people say don’t use a credit card to fund your business and then they’re like yeah but wait a minute but you know when I travel I need to pay for hotels and
Airfare and that kind of stuff so there are appropriate uses of your credit card for your business travel expenses your recurring payments and such what you do not want to do is use your credit card for Major Capital Investments that’s where you want to go look at other avenues of financing uh
That can be available to small businesses for that kind of equipment uh and yet you are exactly right uh things like your your your scales your xrf guns uh you know I mean unless you make the unless you know right up front so when I when I purchased my 3 foot by
3 foot deck scale um it was about $2,000 so the easiest thing for me to do was to give the vendor a credit card number and then what I did was you know I mean I knew that credit card charge was coming that month and so I was able to pay it
Off so there wasn’t any interest in crude on that statement I had planned for that purchase it was the easiest way to make the purchase and so I was able to you know do that with a plan in mind now that’s a lot different than a $40,000 xrf gun um or forklift or
Something of that nature so that’s you know that’s where you need to be careful when you when you’re making those credit card purchases um uh so you know think about your your business credit card just like you would your personal credit card in fact maybe even have uh you know maybe
Even treat it more delicately than you would your personal credit cards and uh if you are going to put a big ticket item on there understand how you’re going to pay for it and understand understand what the charges are going to be if you’re not going to pay it off
Right away because it might be less expensive for you to find some other funding source uh to pay for it a loan from your bank many banks have opportunities for small business capital investment loans where the interest rate is better uh than on a credit card uh sometimes you
Can even get some help with those kind of acquisitions uh from organizations uh local state federal kind of uh groups that are out there so just watch out for that because your business credit card can really burn you if you aren’t using it carefully and I’m not saying don’t use a
Credit card for your business sometimes you have no choice sometimes it is the best tool but there are plenty of other ways that you can fund major Capital Acquisitions Big Ticket items that don’t require a credit card and the huge expenses that go along with credit card
Debt the other thing you have to be careful of is that um you may have when you applied for that credit card tied it back to you the person and so now you’ve got this risk that that credit card can come after your personal money so like with anything in business be careful
Understand separate your business from your person so that um you’re not piercing that corporate veil and putting your personal assets at risk and trust me this is hard when you’re in the when you’re starting a small business and you’re bootstrapping it you know funding it yourself and you don’t have a huge
Amount of money available it’s very easy to per to to make those mistakes of intermingling funds and getting things confused and that’s where where you really want to be as upfront as you can with your accountant uh so that they can differentiate things and then work as
Hard as you can to keep separating all your business expenses away from anything related to your personal finances very very important that you do that um I know it’s tough I know it’s hard but hey it’s small business and small business is tough and hard so watch those credit
Cards alrighty it is time to get on to the the amazing world of the stocks that we are going to be talking about today and our first stock uh is one that I think a lot of you have um hey Andrew great to have you
Here man uh Andrew pal by the way for those of you that don’t know is in New Zealand so great to have you here Andrew um so our first company for the stock that we’re going to analyze a lot of you have probably heard of this
Company um so before we get over to the spreadsheet though let’s take a quick look at what they do uh so and we’ll see if anybody I don’t think the name is on here anywhere yet so some of you may recognize this uh go ahead and drop a comment as soon as
You recognize what company this is and I’m I don’t know if I’ve got the name up here or not we’ll see um oh they also do things that are on the road as well as off-road oh and they make snowmobiles oh they also make boats they have commercial products and they also
Supply to the defense departments who’s got it figured out who knows who knows what company this is come on come on there you go Homer reluctant Odyssey gets it exactly we’re gonna talk about Polaris so here is Polaris Industries their ticker symbol is PLL their current dividend is
3.0 per which is not great but it’s also not terrible um you know when I invest for dividends I’m trying to get about 4% or more because you I’m trying to beat inflation 3% isn’t terrible especially if it’s a good steady uh dividend with a company whose value is going to keep
Going up um along with the dividend their price right now is 8816 well at least as of the 26th of January now for those of you that are new to this channel we’ve got a few new names in here I have some pretty rigorous standards that I apply when I talk about
A company for investment purposes they have to have had either increasing cash flow per share earnings per share or dividends per share for the last 17 years at least the last 17 years and so what I do is I use a uh Source called the value line investment survey
They do not take any advertising so it’s all strictly data and Analysis of the data without any bias to an Advertiser I put that into this spreadsheet and then I analyze if they have had the increasing dividend cash flow earnings or dividends per share if they have not then I show
How many times they failed the selection now in the case of Polaris they are qualified to be on my list because they had 17 years of increasing dividends per share and I call that a div zero so they had zero hits if we look at that graphically we
Can see what that looks like right here you know there’s an upward slope there it’s not great but it’s a nice steady upward slope so uh um real nice uh you know you know a good interesting company if you’re looking to have something a little bit different in your
Portfolio um because they are a recreation they’re they’re technically classified in the recreational industry but as you could see they make stuff for defense they make stuff that businesses would use as well as just people out there uh you know doing their thing and having some fun so Polaris Industries is a possible
Contender um I do not own any stock in Polaris Industries I’m not buying any stock uh at this point again because I’m going into a cash position uh so um you know we’re just uh uh it’s just something for you know for consideration the other companies that
We’re going to look at today and you may have seen the title The the teaser in my title for this for this session today was uh fun and chemicals so Polaris Industries was the fun part uh the chemical industries that we’re going to talk about we’re starting out first with
Air Products APD Air Products uh supplies a variety of atmospheric which are oxygen and nitrogen and process chemical gases which are hydrogen and helium to the energy industrial technology and Health Care Industries the company is the world’s largest supplier of hydrogen with leading positions serving the refining the refining of hydrogen
Semiconductor materials and natural gas liquification Markets my guess is that most of you have seen either an air product’s truck or tank somewhere in your many uh dealings back and forth uh it’s kind of hard to miss to miss to miss these folks now they’re qualified as a div zero so that means 17 years of increasing dividends
Per share but holy B Jolie 2.7% on $264 a share come on man that’s expensive that’s expensive and for 2.7 a%c oh I’d have a real hard time convincing myself to buy into this I really would I mean I can get much better percentages from less expensive companies out
There but because you know these folks Supply the gases that are scrapyards used that a lot of our industries use I wanted to make sure that we talked about this as you know a player for people to consider they’re a good company I mean they’ve been around for a good long time
They’re they’re you know qualified as a div zero so they’re doing some stuff right if you look at this graphically you know this are pretty stable cash flow and earnings charts here so not a lot of churn you know they’re definitely doing something right so from the perspective of a good long-term
Investment uh where you would probably um you know do do well both from your dividends and eventually when you sell it might be something to think about but it is definitely not on my radar for acquisition the other company that we’re going to look at here is a company called
PPG PPG Industries is a global manufacturer of a broad range of performance and Industrial codings so think paint um so they have uh architectural codings Optical and Specialty materials uh you know they just it’s it’s really interesting the niche that they’re in in the industry but this dividend is that’s terrible oh
My gracious especially when we’re talking about $145 and55 cents a share ouch again there are much there are companies out there where you’re going to get a lot more yield for a lot less money and still be able to go to sleep at night and feel good about where you’ve
Put your money however they are a div zero so it’s worth talking about them and they were discussed in this latest issue so you know it’s it’s something for us to take a look at now unlike Air Products look at all of the churn that’s going on with
PPG I mean that’s that’s a lot of churn if we look at the year-to-year changes you can see you can see it even clearer I mean we’re we’re on both sides of this zero line up and down and up and down man I tell you what this would just make
My stomach ache if I was if I was an investor in this company so um I do not hold any shares I have no intention of buying any shares however they are technically qualified to be on our list for consideration so that’s why we’re talking about them now while I was
Looking at these stocks this week um I saw something that was kind of interesting that I wanted to talk about um real quick um when one of the companies that uh by the way this is what the value value line investment survey looks like
Um some of you have seen me hold that up before there’s a company that um is uh here in the US Alber murl Corporation and they make chemicals uh for additives for Plastics and polymers and things like that the reason I that I’m bringing this up is not because they’re a great
Investment or anything but because one of the discussions that I saw that really caught my eye they were in negotiations to buy a huge lithium mine um a comp actually going to acquire a company that you know was mining lithium and um the deal fell through uh
So you know that they’re back to the drawing board on this but this was the comment that really got my attention Global lithium demand has hit a Hiatus throughout the whole of 22 and the first half of 23 worldwide demand for lithium which is 66% of Alber Merl’s operating income
Exploded and this was thanks to the huge increase in electric vehicles uh electric battery makers took during that time period were loading up on lithium um and the result now is that with the EV Market starting to settle out the battery makers have a huge supply of lithium on hand or under
Contract to be delivered so the lithium Market is sort of tailed off a little bit so the analysts are thinking that the slump in demand will continue through at least the first half of 2024 before we start seeing any movement again excuse me sorry didn’t mean to cough when you there like
That um excuse me so um I just thought it was really interesting that this that album Corp operation which you know is really big into lithium uh was had run into a little bit of a challenge trying to one acquire this big lithium play that they wanted but also the the whole discussion
About how lithium is kind of on a Hiatus now look this happens in the markets uh when manufacturers believe that they’re going to need a lot of something they buy up a whole bunch of it they try to get some good deals on pricing they try to stabilize their their inventory so
That they don’t have uh supply chain issues down the road and then as the markets Wan and then pick up and then slow up and then pick up and then slow up and then pick up the inventories get consumed and then they need to build them back up again
And get consumed and need to build them back up again and this is what’s going to happen especially in lithium as we see this shift and this you know the the the world of Eves and other electrification take place one of the common recurring themes in a lot of the
Metals that we have that we’ve talked about is this this this push pull of the old cycle of China was consuming every metal available and now they’re slowing down and the metals that support the electrification of the world is starting to pick up but we’re kind of stuck in
The middle of that and it’s going back and forth and we can take advantage of that if we know how to play it and we’re smart and we’re patient I’ve had a blast chatting with everybody this week and I look forward to seeing you now over in Ireland now I
Was not able to get the redirect setup today so unfortunately you’re gonna have to take yourselves across the pond to Ireland when I shut down the show here but I encourage everybody to go into YouTube and type in scrapping Irish and go to that live stream uh scrapping irish’s
Live stream is always a lot of fun never know who’s going to come up on the panel we never know what way the discussion is going to go uh it’s a much looser format than what we have here but it is a Bast so I look forward to seeing everybody over in Ireland
And uh I don’t know how many stat St are on the scrap train tonight but I know the next station is Ireland all off for Ireland take care everybody we’ll see you over in Ireland
1 Comment
Very exciting. Please keep us posted on the new plant and if that will effect the e waste market. Im starting to get into this.