usdaed

Tepper’s movements, as always, are observed with the intensity usually reserved for divining the future from tea leaves. He has, predictably, been dabbling in the realm of Artificial Intelligence, a field currently experiencing the manic energy of a fever dream. It’s all very well and good, this pursuit of the digital mind, but one can’t help but suspect it’s a distraction from the rather more pressing matter of actual, tangible dividends. Still, let us examine his choices, shall we? A hunter must know the habits of his prey, even if that prey is a phantom built of silicon and code.

There are brands that aren’t just names, they’re echoes. Coca-Cola is one of those. It’s a taste most folks recognize before they learn to read, a little sweetness carried on the wind. That kind of hold isn’t built on luck. It’s built on decades of knowing what people want, even when they don’t know it themselves. And in a world that changes with the seasons, that kind of recognition is a powerful thing. It’s a company that’s seen booms and busts, wars and peace, and still, folks reach for that familiar bottle.

One notes, with a certain melancholy, that the masses flock to the obvious – Nvidia, AMD – chasing the fleeting illusion of exponential growth. Their valuations, already stretched thin, resemble towers built on sand. A mere correction, a whisper of doubt, could bring them crashing down. They are preoccupied with the spectacle of artificial intelligence, while we, the more contemplative among us, seek the substance.

They’re dangling the usual financial carrots – $2.6 billion in revenue, $1.2 billion in EBITDA, $900 million in free cash flow by 2030. It’s helpful, this forecasting, even if it feels like predicting the weather a decade out. Gives you something to compare to the current $4.4 billion market cap, which, if those numbers hold, would mean the stock isn’t completely insane. Less than 5x FCF, 3.7x EBITDA. My aunt Mildred always said anything under 10x was a steal. She also collected porcelain dolls, so take that as you will.

The whole thing just feels…precarious. They’re saddled with debt, tenant issues… it’s a whole saga. They’ve had to slice the dividend, sell assets. It’s like they’re constantly putting out fires with leaky hoses. And everyone acts like it’s just a temporary blip! “Oh, they’re rebuilding.” Rebuilding? It’s like saying your foundation is a little cracked, but you’re adding a nice coat of paint. It doesn’t fix anything. Their leverage ratio is…8.5 times. 8.5! It’s like balancing a tower of dishes. One wrong move…

There are two outfits, though, that have been tossed aside with the rest of the refuse, and I reckon they might just be worth a closer look. I speak of Microsoft (MSFT +0.28%) and Meta Platforms (META +0.47%). The market’s thrown ’em in the bargain bin, and that, my friends, is where the smart money often resides.

These aren’t the hulking, Chernobyl-esque behemoths of yesteryear. Think of them as, well, pint-sized power plants. They can be largely constructed in a factory – which is a rather clever idea, really, because trying to build a nuclear reactor on site is a bit like assembling a complicated clock while standing on a wobbly ladder. Several companies are having a go, and two in particular, Oklo and BWX Technologies, have garnered quite a bit of attention. Both are attempting to solve a very pressing problem, but with markedly different approaches and, crucially, different levels of financial stability.