Five surprising downsides of being rich

Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.

This week, we bring you

  1. Five surprising downsides of being rich
  2. Microsoft is going hard on Nuclear energy
  3. Why are Bitcoin and Stocks Trading in Opposite Directions?
  4. Big Tech is Crushing it

Five surprising downsides of being rich

via ​Short Squeez​

Mo money, mo problems. Maybe not exactly, but wealth comes with ​various subtle downsides​ that may surprise mere mortals.

Short Squeez unearthed this ​gem​ that originally appeared in Inc.

​Subscribe to Short Squeez​

Microsoft is going hard on Nuclear energy

via ​Marginal REVOLUTION​

Spotted in ​last week’s link dump​ from Marginal REVOLUTION, ​Microsoft​ will build its own nuclear reactors to power its data centers.

One more piece in the bullish puzzle for uranium.

​Subscribe to Marginal REVOLUTION​

Why are Bitcoin and Stocks Trading in Opposite Directions?

via ​Daily Dough​

For nearly a decade, ​Bitcoin​ remained uncorrelated to the broader equity and bond markets. Then everything changed in 2021, and crypto and equities started moving in lockstep.

That’s changed again, and ​Daily Dough​ tells us (a) why and (b) ​why it’s important​.

​Subscribe to the Daily Dough.​

Big Tech is Crushing it

via ​Charlie Bilello​

While the ​S&P 500​ has corrected 10% since its summer highs, it could be much worse. Big tech is propping up the index.

As ​Charlie Bilello​ points out, ​the tech behemoths are slaughtering earnings​:

  • ​Microsoft’s​ revenues increased 13% over the last year to a new quarterly high of $56.5 billion. Net income grew 27% YoY to a record $22.3 billion. Operating profit margins increased to 47.6% from 42.9% a year ago.
  • ​Google’s​ revenues increased 11% over the last year to a new quarterly high of $76.69 billion. Net income increased 42% YoY to $19.69 billion. Operating profit margins increased to 28% from 25% a year ago.
  • ​Meta’s​ Q3 revenues increased 23% over the prior year to a new quarterly high of $34.2 billion. This was their highest revenue growth since Q3 2021. Net income increased 164% YoY to a record $11.6 billion, and operating margins increased from 20% to 40%.

​Subscribe to Charlie Bilello’s The Week in Charts​

Stock ideas

With hedge funds “​piling into​” uranium stocks, which are up 34% TTM, here are three solid options for your portfolio.

Up and to the right

Remember to always DYOR.

Uranium Energy ($UEC)

Bull Case

  1. Expanding Operations: UEC has significantly expanded its operations and is poised to benefit from the anticipated stabilization of uranium prices at $60 per lbs.
  2. Strong Financial Performance: Despite a net income deficit, UEC recorded a transformative year with record revenues, fueled by accretive North American acquisitions and is now production-ready in the USA.
  3. Positive Analyst Outlook: Analysts rate UEC a “Strong Buy” with a 12-month stock price forecast indicating a potential upside of approximately 17% from its current price.

Bear Case

  1. Financial Health Concerns: With a net income of -$3.31M in the trailing twelve months, the financial health of UEC could be a concern.
  2. Dependency on Uranium Prices: UEC’s profitability is heavily dependent on the stabilization and increase of uranium prices.
  3. High Volatility: With a beta of 1.89, UEC’s stock is quite volatile which could mean higher risk for investors, particularly in a market where prices are driven by global geopolitical and economic factors..

Full analysis

​Cameco Co ($CCJ)​

Bull Case:

  • Robust Financial Performance: Cameco’s Q3 2023 net earnings of $148 million and adjusted net earnings of $137 million demonstrate a strong financial performance. The gross profit improved due to lower unit costs in the uranium segment and higher average realized prices driven by increases in the uranium spot price.
  • Promising Revenue Outlook: Cameco has increased its 2023 consolidated revenue outlook to between $2.43 billion and $2.58 billion.
  • Long-term Contracting Success: With commitments requiring delivery of an average of about 29 million pounds per year from 2023 through 2027, and a large and growing pipeline of business under discussion, Cameco is well-positioned to benefit from long-term contracts.

Bear Case:

  • Production Challenges: A reduction in production due to a snag in Cameco’s production schedule, coupled with potential further delays in expected shipments, could impact the company’s ability to meet delivery commitments and potentially affect revenue.
  • High Valuation: Despite a strong financial performance, the stock is trading at a P/E ratio of 261.67.
  • Geopolitical Uncertainty: The geopolitical uncertainty brought on by Russia’s invasion of Ukraine and a coup in Niger has intensified supply concerns. This geopolitical backdrop could pose risks to uranium supply and downstream processing, impacting Cameco’s operations and the broader uranium market.

Full analysis

​Global X Uranium ETF ($URA)​

Bull Case:

  • Diversified Exposure: URA offers diversified exposure to companies involved in uranium mining and the production of nuclear components, aligning with the broader theme of nuclear energy resurgence.
  • Strong Performance: URA, being the world’s largest ETF exposed to the uranium space, has shown strong performance to date, demonstrating a positive momentum as uranium prices continue to rise.
  • Beneficiary of Uranium Upswing: With uranium prices at a 12-year high and anticipated to rise to $60 per lbs, URA stands to benefit due to its heavy investment in uranium-centric companies.

Bear Case:

  • Geopolitical Risks: The geopolitical environment, especially political fallout risks and supply concerns due to global tensions, could adversely affect the uranium market and, subsequently, the performance of URA.
  • Sector-Specific Risks: Being a sector-specific ETF, URA is highly susceptible to any negative developments within the uranium and nuclear sectors which might affect the fund’s performance adversely.
  • Expense Ratio: URA has an expense ratio of 0.69%, which, while not exorbitant, could impact returns over time, especially if the anticipated upswing in uranium prices does not materialize as expected

Full analysis

That’s it for this week.

If you write amazing content and want to be featured, please send it through for consideration.




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  • This newsletter was brought to you thanks to our friends at ​Fenchurch Legal​.
  • I don’t hold positions in any of the investments above.
  • Nothing above is financial advice. DYOR, you filthy animal.



Wyatt Cavalier

Wyatt Cavalier

With a background in finance & intelligence analysis, Wyatt has an unhealthy obsession with finding the best blue chip investment opportunities. His previous newsletter, Fractional, resonated deeply with subscribers, bringing actionable insights and unconventional trading strategies. His rare book collection specializes in banned editions. He currently lives in Spain with his beautiful wife, three young boys, and dog Monty.

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