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There’s a new generation of Teslanaires being created—I hope you’re one of ‘em!

Jan 27, 2023

Good morning!

Looks like we might have a weak finish today based on early trading action as I write.

If you’re tempted to hit the eject handle, I get it… just don’t forget that the index is headed for a higher week!

Here’s my playbook.

Big Oil clobbers it (again)

Big Oil will report combined profits of $190 billion for 2022, according to Refinitiv. Expect a whole new rash of punitive taxes from political types, but then take a deep breath. (Read)

I hope you’ve gotten on board—heck knows we’ve talked about it enough. My favourite choice among the majors has tacked on 107.4% since I recommended it to the One Bar Ahead® Family. The S&P 500, by contrast, has lost -6.7% over the same time frame. That’s a 114% performance advantage for anybody following along as directed. Yee-haw!

There’s still plenty of room to run. All that cash means higher dividends and probably more aggressive buybacks.

Key OBA Point: The simple reality is that the world “must have” dinosaur juice for years to come. There is no doubt we will ultimately go EV (and should, IMHO)... but for now, that’s a “nice to have” choice and a very different investment proposition. Meanwhile, it’s also time to create a “Free Trade” using one of my favourite tactics. More to follow in today’s AMAs! Upgrade to Paid

What to make of Intel

What’s happening. Intel reported results that were dramatically less than analysts expected. Not surprisingly, the sensationalism has already started. Various news sources are calling the results everything from horrible to brutal. CNBC is reporting a “historic collapse.”

I get so tired of this nonsense.

Do you really think CEO Pat Gelsinger was “surprised” by the results?

If you do, I have a bridge to sell you.

The real surprise is that analysts got it as wrong as they did and that “expectations” were as high as they were... at a time when overall chip demand is declining. Remember, these analysts are supposed to be “experts” in the companies they follow—which begs the question why they’re often not.

The main reasons for the decline are things we talk about frequently: supply challenges and less spending as consumers hang onto older machines because COVID (and now the threat of a recession) forced ‘em to cut back. But, like it or not, that’s how the game is played, and there’s not a lot I can do about the tomfoolery.

Let’s review:

Revenue: $14 billion versus $14.4 billion expected
Adjusted EPS: $0.10 versus $0.19 expected
Client Computing: $6.6 billion versus $7.4 billion expected
Datacenter and AI: $4.3 billion versus $4 billion expected

What to do now: Gelsinger made the obvious point that chip makers will ultimately work through the supply glut. During his prepared remarks, he was very frank about where the company’s going. Shares are down -38.7% over the past 12 months, and while I’m not happy about that either, we knew this was coming. And changed up our tactics accordingly. Now we’ll… Upgrade to Paid

Chaos creates opportunity!

A generation of Teslanaires is being created right now

Elon Musk made $11.98 billion in just 7 days, reports Fox Business. (Read) And mind you, that’s NOT counting SpaceX, Neuralink, OpenAI, the Boring Company, or even Twitter!

Musk noted that the company has “seen the strongest orders year to date” in company history. Demand is 2X production. $$$

You can do the math just like I can. 😊

There’s a new generation of Teslanaires being created right now.

I hope you’re one of ‘em!

Growth & dividends: It IS possible!

Many investors think that growth and income are separate propositions.

Not so.

Canadian Natural Resources Limited (CNQ), just declared a 13% increase in its quarterly dividend. If you’re not familiar, CNQ is a senior Canadian oil and natural gas company operating mostly in the Canadian West,

I think it could make for a juicy 2023, or at least an oily one... and with a yield that’s now 4.06%, who am I to argue.