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June 2026 Capitalist Times Live Chat
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AvatarRoger Conrad
1:53
Welcome to the Capitalist Times live webchat for June! As always, there is no audio. Type in your questions and we’ll get to them as quickly as we can comprehensively and concisely. If you have to step away, remember we will be sending everyone a link to a transcript of the complete Q&A once we’re finished, which will be when there are no more questions left in the queue and from pre-chat emails.
 
 
As always, we’re going to start with some answers to questions we received prior to the chat. Thanks again for your participation today. We’re looking forward to a lively session.
 
 
Q. Dear Folks, I am wondering whether you are still advising holding ARE, which I bought years ago when you recommended it and is probably my worse performing position. Do you think it will eventually recover before the next Ice Age, or is it time to move on? Secondly, I wonder if you have had a chance to analyze Rexford Industrial (REXR). Does the company's high Southern California concentration make it too risky to considerer? Many thanks, Jeffrey H. 
1:54
 
A. Hi Jeffrey

Thanks for writing. I'm still recommending holding onto Alexandria REIT (NYSE: ARE). My view is the biotech sector tenants are still facing a number of headwinds. And that's weighing down occupancy and rent growth. But the business appears to have bottomed, as managementhas transitioned the tenant base to the "campus" model and to a higher percentage of larger, investment grade companies. Q1 results were in line with management guidance. And the shares are actually in the black by about 13% year to date. The reduced dividend is still
attractive at about 5.4%. And cash flow is covering the dividend plus all CAPEX.
 
I realize the stock is down substantially from the initial recommendation. But I expect to see the biotech sector recover over the next few years with current excess office supply being soaked up. And I think we'll see that reflected in a share price closer to $100 in the next 12 to 18 months.
 
I still prefer Prologis REIT (NYSE: PLD) in the industrial space. And Rexford has slowed its dividend growth this year, which tracks with the -0.9% drop in core FFO in Q1`, as well as the -0.4% from in same store cash NOI (net operating income). Occupancy is still high. But rents have been dropping, which I agree is due to focus on a local market that's been weak. The dividend is covered and management is conservative--with interest costs actually dropping. I don't yet track it in REIT Sheet. But I think this would be an attractive buy at 33 or
less.
 
 
Q. I may not make the chat but have a few questions I’d like to see addressed.
First, your guidance on MGE Energy (MGEE) as an investment. Second some perspective on Telus versus BCE in Canadian telecoms. Third, your energy/oil outlook for remainder of year assuming: a) strait of hormuz is reopened, or b) disruptions continue in strait of hormuz on and off as Iran uses it as leverage in negotiations. Thanks--John C.
 
 
A. Hi John

The issue of Energy and Income Advisor we posted today will I think answer all your questions about how we're viewing this essentially "de-escalation" scenario that oil prices now reflect. It's certainly possible we'll see more disruption in the Strait of Hormuz and another corresponding oil price spike. Certainly, Iran has proven it can effectively shut down traffic there and will leverage that fact as much as they can going forward.

That said, we think there are three more permanent effects from Operation Epic Fury and its fallout that investors need to focus on, rather than trying to guess what Iran will do next. That's (1) A major push by oil and gas importers to diversify sources outside the Middle East, (2) A major push by oil and gas producers to diversify sources outside the Middle East and (3) A major push by producers to use technology to cut costs and raise output from existing fields—also the result of OEF smashing the illusion that energy flows from the Persian Gulf can be taken fo
from the Persian Gulf can be taken for granted.

These are the factors that are going to drive energy stock returns as this upcycle unfolds and demand growth continues to outstrip CAPEX and supply. That's where we need to focus. And the current issue of EIA now posted has our best recommendations.

MGE Energy (NSDQ: MGEE) is a very high quality utility that is unfortunately very expensive, yielding only about 2.3%. I post prices where I recommend taking at least a partial profit for every company I track. And I would consider this more a candidate for taking money off the table where it trades now, rather than something to buy.
1:55
We’ll have Q2 results in the next month for Telus and BCE. As of Q1, both companies were performing right in line with guidance. The sector in Canada faces very tough headwinds as margins and investment are undermined by having four national wireless competitors, rather than following the successful China model of three. And the federal and provincial governments continue to try to manage competition, which also undermines investment and margins. But I expect both companies to maintain guidance with Q2 results. And despite the weak share price performance this year, I think they're suitable for more aggressive income seekers. I also think being priced in and paying dividends in
Canadian dollars will be a plus the next 3 to 5 years.
 
Q. Hi Sherry. Here is a Question for the Chat.

Who knows when the Strait of Hormuz will be back to pre-war traffic levels, but it seems that coal will have increased demand in East and Southeast Asia during this time lag. What is your take and What are Coal Producers that are
likely to capitalize on the situation?—Kenney G.
 
A. Hi Kenney

The best place in the coal space for income investors is Alliance Resources (NSDQ: ARLP). We track the stock in Energy and Income Advisor.

The company has historically been managed very conservatively, with long term contracts servicing electric utilities securing cash flow. And it has expanded its oil and gas production in recent years, including with a $206 mil acquisition announced earlier this month.

That said, dividend coverage has been thin in recent quarters. The business mix has steadily shifted from long-term US contracts to exports, which sales are less certain and pricing can be volatile. And the Trump Administration's historic intervention in the US electricity business to force coal use notwithstanding, coal is being steadily replaced in this country by much cheaper natural gas--which does not produce massive volumes to ash to store, acid rain gasses, particulate matter or mercury in the water.
I think Alliance will be able to milk the coal business as a cash cow for some years. It competes for sales in Asia with Australian miners. And if you’ve been to a major city in that region recently, it’s hard not to notice they have an air quality problem, in large part because they rely so much on coal. So I think even here, you’ll see a move away from coal over time to cleaner sources—as we have in the US to natural gas, and our cities’ air shows it. But possibly by the time coal is no longer a viable business for ARLP, it will have more than replaced the lost revenue with gas production.
 
 
Q. What are your thoughts on Sabre Health Care REIT? It pays a nice and growing dividend. Earnings estimate for 2027 are up. Thanks . Monroe J

A. Hi Monroe

Do you have a symbol for that one? I would be happy to look into it.
1:56
At this point, my top picks in the health space are senior living
focused: LTC Properties (NYSE: LTC) and Ventas Inc (NYSE: VTR). The medical buildings business has been hurt by rising health care costs and a squeeze on hospital management companies that's led to rent defaults. And REITs like Medical Properties Trust (NYSE: MPT) face threats to their survival. But the senior living business consolidated dramatically after the pandemic. The surviving REITs have overcome any reputational damage. And now they're rising demographics and occupancy fills up and rents rise. That's where I think we need to focus with that property type.
 
 
Q. Hi Roger. In your June CUI, on page 1, you show VZ <50 but on page 15 at <55. ATT on page 1 at <28 & on page 15 at <30. I assume page 1 was your most  ecent recommendation and the info on p 15 wasn't updated, which would mean you're lowering both ATT & VZ. Sorry, as a former publisher, I proof-read this stuff. –Mr G.
 
Hi Mr G
Sorry for the confusion in the issue. What you saw was an error, VZ is still a buy up to 55 and AT&T to 30. Both stocks are well below both of those prices for any new purchases. But I will do a better job policing the numbers in the copy.

I still like both AT&T Inc (NYSE: T) and Verizon (NYSE: VZ) as long-term holdings for growth and income. I expect a strong Q2 result for both and that both will affirm guidance for both 2026 and longer-term--as AT&T in fact did at an investment conference earlier this month. And Verizon's venture with BT removes a major drag to future earnings growth by combining forces.

Both stocks have been weak because of rumors newly IPO'd SpaceX will become a fourth major wireless competitor in the US, undermining sales and margins. And the latest rumor is that SpaceX will use some of its cash to buy T-Mobile US--which would require somehow convincing Deutsche Telekom (52% owner) not to buy in that company itself as has also been rumored.
I'm not a long distance mind reader. And anything is possible. But I would question whether Mr Musk would want to spend at least $230 to $250 billion to buy T-Mobile, which at this point has a clearly defined growth plan. Also, entering US wireless as a disruptor is a very expensive strategy with a high risk of failure, as spectrum seller Echostar discovered. And by entering as a fourth competitor, SpaceX would undermine the entire sector's margins, including its own—and at a time when it’s apparently burning through cash with a high amount of debt.

We'll see what happens. But with both AT&T and Verizon trading at single digit earnings multiples, they're pretty cheap ahead of what should be solid Q2 results.
 
 
Q. Hi Roger,

What is your opinion on Lyondell (NYSE: LYB) going forward? I hung on as you advised in December for tax-advantaged accounts. They halved the dividend in March and the price has recovered since the beginning of the year. Do you still see LYB returning to the Income portfolio and
1:57
approaching $100 this cycle? Restoration of the previous dividend level?

You guys may have answered this before, but I am wondering why chem and refining companies are not in the EIA coverage portfolio groups? I really appreciate your great advisories and Sherry’s excellent support! Best regards,
Fred L.
 

A. Hi Fred

Thanks for the suggestion about chemical companies. We do actually cover a few in the MLP and Midstreams space. And one of our favorites Valero Energy (NYSE: VLO) is actually in pretty much the same business.
 
I think Lyondell is a great company that's still facing a pretty big supply headwind in its core chemicals business. The stock got a big lift earlier this year when Operation Epic Fury disrupted global energy supply chains. And the long term plans to cut costs and streamline operations while reducing debt appear to be on track—with the company closing on the sale of certain European assets this spring.
I'm expecting to see more progress in Q2 results at the end of next month. But much of the gain in the stock from earlier this year has evaporated. I think the 5.2% dividend will easily hold. But I think there's a chance this one goes back to the low 40s before it finally bottoms. That's a point I'd consider adding it back to the CUI Plus Portfolio. But for now, I want to see more signs the long-term cycle is bottomed, or a lower price on the shares.
 
Q. Hi Roger,

I just read this article about an IPO for WhiteHawk Minerals (WHK).
A New Energy Firm Debuts With a 7.7% Dividend Yield - Barron's
They promise 7.7% in dividends and have little to no capital expenditures.

In your opinion, is it real or hype? Will you consider adding it to your Report Card? Thanks. Pete K.  
A. Hi Pete

Generally speaking, I'd rather buy a company that's been publicly traded for a while--and there are many in the oil and gas business that have proven they can support an attractive (and growing) dividend. I just added Viper Energy (NSDQ: VNOM), for example, to our High Yield Energy List in Energy and Income Advisor. Let's see how WhiteHawk performs now that it has to release regular financial information that we can see.
Kerry T
2:11
Hi Roger:

Thanks for taking questions!

I noticed CHTR jumped 12% today.  I'm interested in both CHTR and TU. Any updates?
AvatarRoger Conrad
2:11
Hi Kerry. The rumor du jour is that SpaceX is considering a takeover offer for Charter Communications--the idea being that the company would acquire a wireless services provider as a way to enter the business. Charter of course has no wireless infrastructure but essentially rents Verizon's network to offer service under what the parties say is a mutually beneficial MVNO agreement.

Believe what you want. But I do think Charter is a cheap stock at this point, as it prepares to merge with Cox. That deal needs only California approval to close and should by the end of Q3.

BTW, Charter stock is now down about -5%--a pretty clear warning of what happens when people chase rumors.
Frank
2:19
I keep on seeing MLPI being recommended for it's high yield. It looks like it has a portfolio of midstreams, mainly C corps but makes money on covered calls but on the midstream ETF's not on their portfolio stocks. How risky is this 14% yielder?
AvatarRoger Conrad
2:19
Hi Frank. The NEOS ETF Trust is up about 19% year to date. By comparison, AMLP--which is just a portfolio of midstream MLPs that doesn't use any leverage to pump up yield--has returned almost as much (15%).  AMLP's dividend is also not impacted by currency and it rises reliably with the dividends paid by the stocks inside. The NEOS dividend is monthly but highly variable.

The holdings are basically the same. But using in my view, the difference in returns isn't worth the leverage risk--especially compared to owning individual MLPs and midstream companies.
Al C.
2:26
Does today's news alter your advice on AMT? What is your current advice?
AvatarRoger Conrad
2:26
There isn't any real news on American Tower today. The company is expected to report Q2 results at the of July. And we should see stronger results for the tower business with Echostar's default on rents in the rear view mirror, as well as rapid growth at the Coresite data center business.

I see this as a cheap stock and the best play right now in the data center REIT sector. Further selling based on what SpaceX might or might not do with the cash from its IPO and bond issue would provide a better entry point.
Jack A
2:29
Hi Elliott:

Chesapeake Energy has been a disappointment. It went up nicely with the Iran War, and then fell when there was peace. I know you mentioned that Chesapeake's fields require natural gas to be above $6 on the futures curve. Where is it now, and how high do you see it going over what time frame? You would think with the high temperatures here and in Europe we would see a rise in natural gas prices.
AvatarElliott Gue
2:29
Expand Energy (EXE, formerly known as Chesapeake) needs about $2.65/Mcfe based on their 2026 guidance to be free cash flow breakeven. The company produces from two regions -- Marcellus/Appalachia and Haynesville (LA/TX). Marcellus breakevens are lower (low $2s for EXE) while Haynesville BEs are higher at somewhere in that $2.80 to $3 range. Current front-month is August and the calendar strip for the final 5 months of 2026 is about $3.38/MMBtu. EXE also has hedged a sizable amount of its 2026 production at higher prices than that. the 2027 strip is about $3.45 to $3.50 and they have significant hedges through 2027 as well that protect their downside. SO, EXE can generate significant free cash flow at the current strip and hedges protect their downside. That said, recall that front month gas prices spiked over $7/MMBtu in January and February amid that cold snap we had and the strip was well over $4.50 at the time. So, from a trading perspective, that weather-driven optimism faded, causing the stock to drop.
AvatarElliott Gue
2:30
The US is maxxed out in terms of LNG exports. There's growth through year-end as new facilities ramp up, but it's not possible for US producers to fully arb out the huge TTF (Europe) or JKM (Asia) price premiums because there just isn't enough LNG export capacity to export adequate volumes. This will change over time as new terminals come online, but (I fear) it may be too late for Europe as their storage situation is already uncomfortable. Also, US LNG export facilities have to undergo maintenance and they usually do that in spring or autumn when demand is lower; that (artificially) depressed gas export feedstock demand in May-June though it's now rebounding.
US summer heat helps but, the period of peak gas demand is still winter for heating and El Nino, which we’re seeing right now, tends to result in warmer than average winters. My view has been, and remains, that these seasonal considerations are less important than the long-term picture – strong growth in LNG exports through 2030 as new terminals come online and amid the loss of significant Qatari volumes though at least that time, strong growth in demand from data centers and strong growth in industrial demand as elevated foreign energy prices support US manufacturing and industrial activity. SO, my long-term assumption for US gas prices is $4/MMBtu and I can see EXE trading north of $150 on that basis.
Frank
2:34
Elon Musk has mentioned Starlink in reference to starting up a wireless carrier. How much would this effect legacy names like Verizon, AT&T and T-Mobile
AvatarRoger Conrad
2:34
Hi Frank. I'll believe that when I see it. But in any case, the US wireless Big 3 are already priced as though it's a done deal. These stocks are very cheap relative to earnings (and dividends). and they're about to report very strong Q2 results, demonstrating how they're consolidating the US communications market.0

Musk does want Starlink to have access to wireless spectrum and it's been pointed out satellite businesses of one stripe or another are about 70% of SpaceX revenue at this point. But starting a viable fourth wireless competitor in the US takes a lot more than just hanging out a shingle, even if you have own spectrum as Echostar did before exiting the business and selling it to SpaceX and AT&T. And the first thing that would happen is margins industry wide would erode.

SpaceX will do a lot better reaching some sort of agreement with the Big 3. What you're seeing now is I think a lot of jawboning to try to get a deal on his terms.
AvatarRoger Conrad
2:36
But some of the things we're hearing from supposedly professional analysts make no sense at all--buying Charter Communications, which has only a deal in place to use Verizon's network? Buying T-Mobile US--which is 52% owned and controlled by Deutsche Telekom?
2:37
The best idea when the rumor mill is percolating like this is just to take a deep breath, have confidence in the companies you own and ignore the volatility until we know something for certain. Talk is cheap.
Brian O.
2:39
What do you think of the threat to Verizon from SPCE.
Thanks
AvatarRoger Conrad
2:39
Hi Brian. I don't think there is one. As I answered to a previous question, what's happening now is a lot of jawboning. SpaceX wants access to wireless spectrum for various reasons and Musk wants the US Big 3 to give it to him on terms favorable to him. The fact so many rumors are being thrown around now is a pretty clear sign they're rebuffing him. And unless he backs off and deals he might want up repeating what happened to DISH/Echostar--and without the benefit of all that spectrum that company owned.
MK
2:45
Roger, communication services are selling off across the board for a few days now because Starlink started to offer direct to consumer cell service. Is the sell off justified? What should be the strategy now. Thanks
AvatarRoger Conrad
2:45
Hi MK. No, I think it's more another demonstration of how star struck many investors are--and very likely the fact so much money is traded by algorithms trained to follow headlines.

Let's assume Starlink offers communications by satellite that are actually superior in areas with large populations to the Big 3's combination of fiber and 5G wireless. A big push will only undermine Starlink's margins for operating the service along with the rest of the industry. That's what's happened in every country that hasn't followed the China model of 3. And at the end of the day, it means less investment and worse service quality.

My opinion is a lot people are moving money around based on assumptions that are hugely speculative.
Jack A
2:47
Hi Elliott:

You had once mentioned Comstock Resources is a company you were taking a look at, but did not recommend yet. Unfortunately, I jumped the gun and bought some. Since then, they reported disappointing earnings based on some bad weather hurting production, and also some bad hedging decisions. The stock took a significant hit. What are your thoughts about the company as an investment at the current price? Thank you
AvatarElliott Gue
2:47
Comstock is a pure-play Haynesville producer and, as I outlined above in reference to EXE, Haynesville breakeven are high relative to Marcellus/Appalachia. That is why, when gas prices are weak/flat, you will tend to see EQT outperform (pure-play Marc.), EXE sort of in the middle and CRK underperform. On top of that, CRK is basically developing a new play, called the Western Haynesville, which is centered in Texas, west of the core of the play in Louisiana. It's the same formation though wells are deeper/hotter on the western portion of the play. What that means is that well costs are higher (bigger, more complex wells) but productivity is also higher (more pressure). So, they are drilling some great wells out there, driving down costs, but there's always a learning curve before you establish a well design and then go into full production mode. Bottom line is that makes your production costs short term higher. I still like CRK and have actually been looking at that as a trade for my options service. As I
AvatarElliott Gue
2:47
explained above in reference to EXE, I don't think current sub $4/MMBtu gas prices are sustainable over the long haul. And at $4+ CRK can generate some impressive free cash flow. That's why you tend to get these huge rallies in the stock when gas prices are strong. From a trading perspective, I am eyeing a close above $15.50 or so (we could get there today) to signal a failed breakdown below the 2025 lows. This could then bring us a fast move in the opposite direction (higher). From a long-term investment perspective you just need to see more stability in gas prices around $4/MMBtu for this stock to work. Two side notes: 1. CRK has huge short interest (37%+) so that's one reason the stock moves so fast because periodically those shorts get squeezed. 2. It's basically controlled by Jerry Jones, who is a savvy energy operator and has been willing to directly support CRK when necessary.
Bill M.
2:52
Hello Roger and Elliot,
I guess you will be asked by a number of people about Verizon and T. Verizon being removed from the DOW resulted in Index selling, but what about the competition from SpaceX? Does SpaceX have enough bandwidth to compete? Thank you for your response
AvatarRoger Conrad
2:52
Hi Bill. Removing Verizon from the S&P 500 would be a much bigger deal, as that's what the passive money follows. But there's no chance of that. Dropping it from Dow Jones Industrial Average is a non-event.

As for competition from SpaceX, the last satellite company that attempted to enter the wireless business in the US was DISH/Echostar--it failed and sold half its spectrum to AT&T. So the SpaceX starts with even less.

Let's also not forget that SpaceX has just raised a lot of money. But it lost $4 billion plus last and comes into the game with a massive amount of debt. And if it comes in as a fourth competitor, it will drive industry margins down.

Again, I think what we're seeing here is a lot of jawboning to get a deal to use spectrum. We'll see how it plays out. But I'm not selling my VZ on what amounts to rumors--or T or TMUS.
Gary L.
2:56
Hello Roger - Could I get your reaction to the recent news about SpaceX/Starlink competition with telecoms such as Verizon, AT&T and T-Mobile? Is this a buying opportunity or is it time to get out? Thanks
AvatarRoger Conrad
2:56
Hi Gary. I think any selling on what amounts to rumors is a great opportunity to buy the US Big 3, which will show their growing dominance of their industry in Q2 earnings over the next month. I'm also taking a harder look at the second tier companies like Comcast and Charter, as well as Shenandoah Telecom.

Those who buy and sell rumors wind up regretting it unless they trade very quickly.
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