usdaed

The thing about semiconductors, beyond the fact that they’re bafflingly complex, is that they need to move. And movement, these days, costs money. A lot of it. The price of oil, predictably, has decided to stage a dramatic comeback, largely because of the situation in the Strait of Hormuz. Apparently, it’s a choke point. Who knew? I always pictured oil just…floating along, politely asking to be refined. But no, it needs a clear path, and when that path gets constricted, everything gets more expensive.

To understand ExxonMobil and Chevron, one must discard the notion that they are merely ‘oil companies.’ They are, in fact, complex systems, engaged in every stage of the energy process – from extraction (‘upstream’) to transportation (‘midstream’) and refining (‘downstream’). This diversification is not a pursuit of maximum profit in a rising market, but a calculated attempt to mitigate risk when prices inevitably fall. It is a recognition that booms are temporary, while the need for energy is not.

Eduardo snagged 4,300 shares. Then, poof, 4,300 more magically appeared. These aren’t shares you can flip on the open market to fund your yacht purchase, though. Oh no. They vest over three years, in thirds. So, he’s stuck around. It’s like a really boring, financially-motivated hostage situation. Here’s the breakdown:

The year unfolds, and Delek US has climbed nearly fifty-five percent. A substantial flowering, and one easily explained. Like Valero Energy and PBF Energy, larger brethren in the refining world, it thrives on the ‘crack spread’ – that subtle alchemy where crude oil, the earth’s dark blood, is transformed into the fuels that propel our restless age. The difference, a margin, a breath between cost and price, is where fortunes are made.

The sum, though not insignificant, is but a ripple in the vast ocean of market capitalization. The weighted average price of twenty-six dollars and forty-six cents per share, a trifle below the closing price of that day, suggests not a panicked flight, but a deliberate, measured action. Indeed, this was not an isolated event, but the final act in a series commenced months prior, in May of the previous year. Seven such transactions, each of identical size, had unfolded with the regularity of the seasons, a pattern suggesting not impulsive decision-making, but a preordained course. One is reminded of the careful pruning of a garden, removing what is no longer essential to ensure the continued flourishing of the whole.

The narrative of accelerated growth is, upon closer examination, a carefully constructed illusion. While Microsoft speaks of “remaining performance obligations,” it is crucial to remember that these are not immediate revenues, but promises deferred. To base valuations on such intangible commitments is akin to building a cathedral on the foundation of whispered prayers. The true measure of a company’s health lies not in its future promises, but in its present capacity to generate sustainable profits.

Each method, naturally, possesses its own peculiar advantages and disadvantages. The choice, it seems, hinges upon one’s desire for control – or the charming delusion thereof – and the length of one’s investment horizon. To believe one truly controls a digital asset is, of course, a delightful irony.

The company, after decades of merely suggesting how things might be made, has dared to venture into the messy, unpredictable realm of physical silicon. A most unusual development, one might add, like a bookkeeper suddenly deciding to become a blacksmith. This week, in San Francisco – a city perpetually on the verge of dissolving into the sea, both literally and metaphorically – they unveiled the Arm AGI CPU. A name, it must be said, that sounds suspiciously like a bureaucratic decree from a forgotten empire.

Fifty-point-five million shares traded. Which, if you picture it, is a lot of little digital transactions happening, all fueled by the vague promise of faster downloads. It makes you wonder what everyone’s downloading, doesn’t it? Probably cat videos. It always comes back to cat videos. Nokia’s been around since 1994, a veritable dinosaur in the tech world, and has managed a 525% climb since its IPO. My grandmother has a Nokia brick phone she refuses to part with, claiming it has “better reception.” She’s probably right.

Both companies have enjoyed a recent surge in performance, a phenomenon attributable to the aforementioned AI boom. However, like two spacecraft attempting to dock in zero gravity, their trajectories have diverged. One continues to climb, while the other has… well, not exactly fallen, but perhaps experienced a slight deceleration in its upward momentum. Which, then, presents the more compelling investment opportunity? Let’s attempt to unravel this digital conundrum.