usdaed

The official parchment, filed with the Securities and Exchange Commission (a body whose acronym, SEC, is often mistaken for a particularly grumpy sea serpent), revealed that Oxbow reduced its holdings in VBIL by the aforementioned number of shares. The value, as previously noted, hovered around $25.83 million, a sum large enough to impress a dragon, but hardly enough to bankrupt one. The overall value of Oxbow’s VBIL stake, however, declined by $26.20 million – a curious discrepancy that suggests either a particularly aggressive accounting gnome, or that the shares simply decided to take a short holiday.

The Vanguard Dividend Appreciation ETF (VIG) is, on the surface, a sensible sort of fund. It seeks companies that have consistently increased their dividends for at least ten years. A noble goal, certainly. Though it then rather spoils the effect by discarding the highest yields. Why? Because apparently, a good dividend is one that doesn’t quite reward you as much as it could. It’s a bit like a wizard who insists on casting spells that are mostly harmless.²

Royal Bank of Canada, or RY as the ticker tape whispers, is a big bank. Two hundred and forty-six billion dollars big. It’s gained 46% in the last twelve months. That’s… something. They spread their bets around – wealth management, personal banking, capital markets, the usual. Diversification. A sensible idea, really. Especially for us Americans, who sometimes act as if the world ends at the border. They also happen to be based in Toronto. It’s a city. Like any other.

The company admits, with a practiced humility, to a “challenging environment.” A delicate phrasing for a slowdown. For the carpenter who sees fewer contracts, the homeowner postponing repairs. The markets, of course, react. A flat return in the last year, while the S&P 500 dances ahead. They call it a correction. I call it gravity. Everything falls eventually.

Western Digital has risen, a rather astonishing 465% in the last twelve months. Micron, not to be outdone, has managed a respectable 313%. Such figures, of course, invite skepticism. One wonders if the enthusiasm is based on genuine prospects, or merely a collective forgetting of past disappointments. Still, even after this display, a certain appeal remains.

There’s a good bit of chatter ’bout companies like Nvidia (NVDA 0.79%), and rightly so. They’ve built themselves a fine engine for these thinking machines, a sort of brain-builder, if you will. And Micron Technologies (MU 2.61%) is seeing a boom, as these machines are thirsty for memory – more so than a politician for votes, I suspect. These are good companies, no doubt, but chasing individual stocks in this whirlwind is like trying to catch greased lightning. A man needs a wider net, a bit more stability.

is this merely another iteration in the endless cycle of technological advancement, or does it represent a genuine disruption, a turning of the tide?

Tesla reported a profit. A modest one, to be sure, and achieved against a backdrop of declining revenue. A profit nonetheless. This is not to say the company is failing; merely that the appearance of success can be maintained through a judicious application of financial maneuvers. The key, as always, lies in understanding where the numbers are truly coming from.

They’ve managed to erase last year’s losses, which is impressive, I suppose. Though I’m always suspicious of anything that sounds like a financial resurrection. It usually involves someone else’s misfortune. The key, it seems, is cost-cutting. A simple concept, really. Though try telling that to the marketing department at any company. They’ll tell you about “brand synergy” and “thought leadership” while simultaneously ordering artisanal water for the office. Their fourth-quarter revenue was…flat. Barely a twitch. But profitability? That showed a little life. They’ve trimmed the fat, apparently. Or at least, rearranged it.