Speaking Of P/Es -- May 25, 2024

Locator: 47177INV.

After Nvidia's 1Q25 earnings were reported, analysts began dissecting the results. Almost across the board, most analysts "negative" or "somewhat negative" with regard to Nvidia commented on NVDA's "high P/E." 

For as long as I've followed Apple, analysts that don't like Apple comment on APPL's "high P/E." Apple's "high P/E" is generally 27 to 30.

Right now, DIS seems to be one of the "darlings" of CNBC if not Wall Street.

Ticker  DIS:

Now, let's take a look at NVDA's P/E:

Now, back to DIS:

At least it "has" a P/E.

Doctoral Degree At Age 17 -- May 25, 2024

Locator: 47176EDUCATION.

Link here.

An incredibly interesting article. 

Not sure what the writer found most interesting.

This was the sub-heading, again:

From another, unrelated note, link here:

"It Ain't Over Till The Fat Lady Sings" -- May 25, 2024

Locator: 47175TECH.

Updates

May 27, 2024: valued at $24 billion after fresh funding.

Original Post 

Link here. Archived.

The third-richest man in the world is going to be buying a lot of Nvidia blades. 

Tech is tracked here.

Parlor game:

• make two lists, in two parallel columns
• identical lists of the top 30 global tech companies
• now, draw lines from column A to column B suggesting / guessing which companies will be "partnering" with each other -- use a very broad definition of "partnering"
• example: in both columns (since they are identical), one will find Apple and TSM
• one can draw a line from Apple to TSM
• now, "who" connects with Microsoft?
• "who" connects with Qualcomm?
• "who" connects with Broadcom?
• "who" connects with Amazon?
  
• note: 
• it won't be a perfect match
• it will be a dynamic list 

The point of this little exercise: many of the tech companies in the top 30 global tech companies have a unique niche or a relative monopoly in the niche in which they live. Many of these top 30 global tech companies have specific needs if they want to continue to grow.

Break, break.

This past week, maybe Wednesday or Thursday, CNBC interviewed a guest with regard to Nvidia. He acknowledged that Nvidia's earnings were surprising and well-deserved, but he suggested the rate of growth of those earnings could only last two, or at most, three more quarters. 

Trending over at SeekingAlpha: 

ERCOT -- Update -- May 24, 2024

Locator: 47174ERCOT.

The stories:

Link here. This is a dynamic site.

Nvidia -- NVDA -- May 25, 2024

Locator: 47173TECH.

Updates

Later, 9:39 p.m. CDT: Elon Musk plans xAI supercomputer. 

Original Post

Link here.

Tech is tracked here. Particularly relevant: at this site, scroll down past the microprocessors (the CPUs) and scroll to the last ten entries of GPUs.

Week 21: May 20, 2024 -- May 26, 2024

Locator: 47172TOPSTORIES.

Top story:

• Israel moves into Rafah; doesn't seem to be much coverage (or much interest)
• international high court issues arrest warrant for Netanyahu; orders Israeli invasion to stop
• US Navy-installed relief pier suffers major damage due to sea storm
  
• Dow: longest "win" streak so far in 2024 continues
• NVDA has huge earnings; announces 10-1 split; announces increase in income from four cents to five cent for a $1,000-stock
  

Top international non-energy story:

Iran president, second-in-line, killed in helicopter crash in mountainous region in northwest Iran

Top international energy story:

Top national non-energy story: 

• Trump criminal trial coming to an end
• Elon Musk plans xAI supercomputer
  

Top national energy story:

• WTI stuggles; closes below $78
  

Focus on fracking: link here.

Top North Dakota non-energy story:

• 
  

Top North Dakota energy story:

• 
  

Geoff Simon's quick connects: link here.

*************************************
Market

Market at the close, end of the week, May 26, 2024:

Apple iMac Update -- May 25, 2024

Locator: 47171APPLE.

Apple's M4 iMac: an update. 

The next-generation 24-inch ‌iMac‌ is expected to get the M4 chip, which is the same chip that Apple used for the latest iPad Pro models. iMacs right now have the M3 chip, so the M4 will be a direct update.The M4 is built on the same 3-nanometer technology as the M3, but it is a second-generation chip with some speed and efficiency improvements. In a Geekbench benchmark test, the M4 proved to be up to 25 percent faster than the M3 chip, which is a notable jump in performance. 

The M3 had a single-core score of 3,087 and a multi-core score of 11,702, while the M4 had a single-core score of 3,695 and a multi-core score of 14,550. 

Apple's M4 chip has a 10-core CPU and a 10-core GPU, featuring six efficiency cores and four performance cores. There is a variant of the M4 with a 9-core CPU that Apple has used in the ‌iPad Pro‌, but it is unlikely that this chip would be offered in the ‌iMac‌. 

Other Macs will get upgraded M4 Pro, M4 Max, and M4 Ultra chips, but the 24-inch ‌iMac‌ is an entry-level product on par with devices like the MacBook Air, so it will only be offered with the M4 chip.

It's incredible how fast Apple is moving to the M4 chip.

Tech is tracked here. Apple Silicon is particularly relevant.

****************************
The Book Page

Walk With Me: Hamptons: Photographs, Susan Kaufman, published May 14, 2024.

Link here.

The NY Times.

Daily Activity Reports, Thursday And Friday, May 24 And May 25, 2024

Locator: 47170B.

WTI: $77.72.

Active rigs: 37.

Eight new permits, #40780 - 40787, inclusive (in a long note like this, there will be typographical and content errors; if this information is important to you, go to the source):

• Operators: MRO (3), Oasis (4), Enerplus
• Fields: Bailey (Dunn), Murphy Creek, (Dunn), Indian Hill (McKenzie), Sorkness (Mountrail), Bonetrail (Williams), Little Knife (Dunn)
• Comments:
• MRO has permits for three wells -- Crooks, Orval, and Belle -- NENW 26-146-93 and SESW 12-144-95; 
• Crooks and Orval will be sited 740 FNL with Crooks be to be sited 2442 FWL and the Orval well to be sited 2402 FWL; spacing for these two wells: sections 13/14/23/24-146-93; 
• the Belle well, will be sited 333 FSL and 2384 FWL, spacing units, sections 1/12-144-95;
• Oasis has a permit for a Barnes Federal well, SWSE 11-152-102, 
• to be sited 354 FSL and 2389 FEL; spacing unit, sections 2/11-152-102; 
• in addition, Oasis has permits for two Nordby wells, NWNE 12-157-93, Sorkness oil field, 
• both wells to be sited 2433 FEL with one at 291 FNL and one at 357 FNL, the two Nordby wells are spaced for sections 12/13/24-157-93; 
• Oasis also has a permit for a Merlin well, SWSE 15-156-102, 
• to be sited 454 FSL and 2575 FEL; the spacing unit for the Merlin well is section 3/10/15-156-102.
• Enerplus has a permit for an Olson well, SWSW 34-147-97, Little Knife (Dunn), 
• to be sited 527 FSL and 442 FWL, spacing for sections 26/27/34/35-147-97.

Four permits renewed:

• Formentera Operations, two permits, #34950 and #34952, Portal oil field, Burke County;
• CLR (2): two Harms West Federal permit, #38939 and #38940 , Elm Tree McKenzie

Two producing wells (DUCs) reported as completed:

• 38011, 240, BR, CCU Plymouth 34-29MBH, Dunn County;
• 40190, 846, Whiting, Tri D Ranch, Williams County;

Bakken Acreage Value -- May 25, 2024

Locator: 47169B.

A decade ago -- maybe longer -- when I first started following the Bakken -- I tracked the value of the mineral acres based on prices paid for mineral acres, data from various sources. Then I compared that to what I thought the minerals were worth based on a number of facts and personal assumptions. I've always maintained that prices paid for Bakken mineral rights are far below what they are truly worth. But that's all in the eyes of the beholder. Just wild-ass-guesses (WAGs). 

So, this I found particularly interesting. A reader occasionally sends me updates regarding offers he gets for his/her mineral rights. 

This was the most recent. This data is the most recent I received. This is all from the same reader.

The reader has mineral rights in several locations in the Bakken.

In the spreadsheet below (all of the data is hidden except for three columns). 

Lines 3 and 8 represent the very same property, the same section in both cases. 

Note, in line 3, the landman offered $6,480 / acre for the mineral rights back in October, 2022. Despite this acreage having produced since the boom, the landman most recently offered $13,157.64 for the same parcel, May, 2024.

On October 24, 2022, WTI was going for $86.12.

On May 20, 2024, WTI was going for $81.39.

Link here.

So, the price of WTI hasn't changed much since the original offer (has actually dropped a bit) and yet the offer (for a somewhat depleted parcel) is now worth more than twice what it was since the original offer. 

No further comment.

Oh, one last comment. The minerals acres are in Tier 1 Bakken but not the best Bakken.