The Roth Conversion Window

**SPEAKER_1** (0:01)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

**Luke Guerrero** (0:16)
Good afternoon, fellow investors, and welcome back to Invest Talk. I'm your host, Luke Guerrero, and I wish you had a very relaxing weekend because it's time to dive back in. We have some work to do today.
Before we move forward, though, I do want to remind you that our latest Invest Talk wealth webinar, Beyond the Yield, is available now on our YouTube channel if you missed it. Here's a presentation about how you can invest for your income needs followed by answers to finance and investment questions. If you haven't checked it out yet, I encourage you to do so. Just head over to YouTube and type Invest Talk, with two Ts. Now, in just a bit, we'll talk about today's market performance and run down the show topics. But let's tackle this caller question now.

**SPEAKER_3** (1:05)
Hi, Invest Talk.

**SPEAKER_4** (1:06)
I have a question about Comcast. I own the stock.

**Matt** (1:11)
It's Cmcsa.

**Robert** (1:13)
Could you please share your thoughts? Does it sell or hold? I will listen to your podcast and thank you very much for all your help. Thanks. Bye.

**Luke Guerrero** (1:23)
Let's take a look at Comcast. That is ticker Cmcsa. And that is a name that we actually hold in one of our strategies for our clients. It's actually in Target right now. Rather, it's in the Target, but we don't yet hold it. And the reason why we never bought into it.
Well, I mean, the momentum has been really poor for quite some time. We're down 30.66% over the past 52 weeks, down 15.47 over the past three months. Now, I forgot to mention what the heck this company is. And what it is, is a media conglomerate, right? They have, as of now, their Xfinity, they have their business services, they got NBC Universal, Telemundo, Peacock, Streaming, Universal Studios. But that is gonna change soon, because in mid-2027, they announced they are spinning off NBC Universal and Sky into a separate public company. Now, they announced this spinoff on, looks like June 29th. And this new spinoff company is supposed to carry off 100 billion of its debt.
Recently, they had an earnings beat, both on top line revenue and bottom line earnings. They had a really strong February, the reason being, okay, you had a combination of, you know, the Super Bowl, which drove revenue, it was NBC's time to host that. You had the Winter Olympics, which certainly was a big driver in revenue. But then when you go to their broadband business, they lost 65,000 customers. Now, the sad part is, is it's an improvement, because a year prior, they lost 183,000 customers. But it's a business that just has not been doing well thus far, growing, yes, beating earnings, yes, but it has been struggling. And that's really one of the reasons why, you know, there has been an inability to sustain rallies over the past couple years.
I think one of the worst things for this company right now is even a bit of margin compression. I mean, it's down from 30.2% to 27.5%.
It's going to undergo probably the most significant restructuring since Warner Brothers' discovery was spun off by AT&T. If it works, whatever remains probably deserves a materially higher multiple than 6.6 times price to forward-looking earnings.
But the momentum is really poor. It's why we've kept it on our watchlist. In spite of that, I think there is some good stuff underneath the hood. Just got to wait for a bit of a technical turn. That is Comcast Corporation, ticker Cmcsa. Thanks for the call.
Well, we had a great show for you last Thursday. We looked into a story about what it really means when you say you own index funds or you own the index. We also answered a listener question on McDonald's. That was submitted via our YouTube channel. If you happened to miss last Thursday's episode, because Friday was a holiday, I encourage you to go check it out. And remember, the best way to never miss an episode is to subscribe to Invest Talk wherever you get your podcasts. Onto today, where my main focus point will be about the Roth Conversion Window. The reason why we're talking about this is because mid-year is a pretty smart time to model conversions. Before year-end tax planning starts to get rushed, so we'll take you on a practical walkthrough of who benefits, how to size a conversion, and the bracket management math that makes it all work. We also have another story about the dangers of what has really become a top-heavy economy. A little bit of a deep dive into Michael Saylor's MicroStrategy and why it's really a victim of his own math at this point. And should we have time at the end of the show, we'll touch on the potential fear, or rather the fuel, the fears of a potential earnings bubble. We also have some voicemail calls ready to play, including one on stock splits and another on the Vanguard Health Care Index Fund ETF, that's VHT. So we'll have some questions that came in from the comment section of the Invest Talk YouTube channel, and hopefully we'll hear from some of you live throughout the show. Now we're headed into a break. It is a quick one, and when we come back, we have plenty more to talk about. And it all starts with our Market Wrap, so hang on.