Category Archives: financial engineering / financial shenanigans

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The Oracle in the AI coal mine?

Over the last months, I have written two Weeklies, criticizing the from my view not sustainable AI investment frenzy, featuring Meta’s stock as my main target. Maybe this was because Meta is a mainstream darling that on top has delivered a stellar return over the last three years. However, little did I know that there is an even more interesting case in the second row. With some interesting developments in the recent past, is this the Oracle in the AI coal mine for what to expect?

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Meta going all in – More cracks in the AI Capex bubble

In August 2025, I published my first Weekly fully dedicated to this topic. It became my second most read Weekly so far. I gave it the name “Artificial Intelligence meets natural stupidity – and a potential winner no one is counting on”. I introduced my readers to the growing Capex mania of the Big Tech companies, focussing on Meta, and concluding that Apple might turn out to be the winner thanks to avoiding doing stupid things. While the mania continues at even more extreme levels, the risks for a big burst have only increased.

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Artificial Intelligence meets natural stupidity – and a potential winner no one is counting on

Is AI the biggest bubble we have ever witnessed? There are many voices claiming so, while others are of the view mankind has reached a new plateau in its evolution. As this is not a new topic per se, and my skepticism is well-known among my readers, I am not going to drill deeper on this front. However, there is a subtopic that deserves much more attention than it actually gets. Maybe because it is so boring and likely ahead of its time, the majority currently does not care. I do, though. And you probably should either.

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When do buybacks create shareholder value?

Buying back own stock on the open market is a frequently used tool to let shareholders participate in the success of a company. At least in theory. Ideally, free cash flow is used to repurchase equities to lower share count, thus making every single piece a bit more valuable. There are examples where buybacks indeed created shareholder value. On the other hand, plenty of money has been wasted with the goal to appease shareholders, but without a positive outcome. Are buybacks good or bad, respectively when so?

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Quick profits through short squeezes + new research report

Every (amateur) investor’s dream is to get rich quickly. After a few years in the markets, more experienced investors know this is a naive attitude, most often only good enough to lose money quickly, i.e. the opposite of what was intended initially. However, a suitable strategy which can be mixed into a stock portfolio – especially when searching for uncorrelated ideas – is to look for potential short squeeze targets, given the underlying businesses are not one step away from bankruptcy. A look back at some prominent short squeezes. My members on top receive my latest research report with a potential short squeeze candidate.

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Checkmate – more kings to have on the radar for dividend cuts

My longer time readers know that dividend cuts have been one of my favorite topics. It is of high importance for me to ring the bell in order to help investors get more cautious with their investments. There are no risk-free stocks. The same applies to proclaimed “bond-proxy” dividend stocks, no matter which useless title they hold in connection with their dividend series. Today, I’m presenting two more kings I have on my radar for a cut.

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Raspberry going public – cheap under-the-radar opportunity?

Hobbyist computer company Raspberry – known for its small single board devices of the size of a credit card – will become a publicly traded company in a few weeks. In fact, Raspberry is more than just a hardware company for do-it-yourselfers. It’s targeted 500 mn. GBP IPO looks cheap on the surface with a (debt-free) PE of 20x and a growth story attached to it. I took a closer look into the prospectus – the stock will likely be way more expensive than you might think. Caution is advised.

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Why you should look out for Cannibals

My perception is the majority of stock investors do either prefer dividend stocks or something with a high growth component like first and foremost technology. The third group would be turnarounds (which I am also not opposed to). What is much under-appreciated, though, are cannibals or buyback monsters. I think this topic should earn more attention. Good for those who know about it.

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BlackRock: ESG harmful for business – hated stocks poised to come back?

One of the big investment topics of this decade could be the return of those neglected and hated sectors that did not fit into boldly advertised ESG policies. Dirty, careless, only return focussed, etc. Yet, that’s not the same as not needed or replaceable, not to mention affordability. On the other hand, you have greenwashing, higher costs of living and ousting of non-liberal, more conservative customers with silly messages and acts. BlackRock is writing it and the market is speaking. Listen.

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“Fallen Angels” – why you should be cautious + new research report

No matter whether experienced or not, almost every investor is on the hunt for undervalued stocks to make money. What could be less welcome than a stock which has fallen in price and become cheaper? The problem is, “cheap” is not automatically “cheap”. In fact, buying cheap can become a costly mistake. I see a strict urgency to clean up with this dangerous myth that a stock only has to fall enough to become attractive.

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