- The Peel
- Posts
- Big Oil Gears Up
Big Oil Gears Up
🛢 Big oil companies are making a game plan in response to Trump’s “drill baby drill” agenda.
Silver banana goes to…
In this issue of the peel:
🛢 Big oil companies are making a game plan in response to Trump’s “drill baby drill” agenda.
đź’¸ Trump Media and Mobileye surge, while UniFirst and Pony AI take a hit.
â‚ż Gamestop takes a page out of Microstrategy's book and dumps its cash in B*tcoin.
Market Snapshot
Banana Bits
Inside the war strategy planning group chat that a journalist accidentally got added to.
Big oil companies are working overtime in response to the new administration’s policies.
Gamestop is throwing stuff at the wall to see what sticks, announcing it is converting cash to b*tcoin on the balance sheet.
Consumer confidence hit a 12-month low amid a flurry of economic data.
Chinese EV company BYD just blew past Tesla with $100 billion in sales.
BOXABL officially reserved NASDAQ stock ticker symbol BXBL…
BOXABL is the home construction company bringing assembly line automation to the home industry. With their patented technology and 53 patent filings, BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market. And they just reserved the ticker symbol BXBL on Nasdaq*!
Most houses take seven months to complete. BOXABL can put one out of the assembly line every four hours, including electrical, HVAC, and plumbing! Now, the company is raising funds and has made shares available to the public but the round is closing soon on StartEngine!
Currently, shares are being offered at $0.80 per share. With a $1,000 minimum investment, you can join 40,000 investors to help solve the housing crisis.
Time is running out the closing date 3/29 is day to invest in BOXABL on StartEngine.
Disclosure: This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl
*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so.
Macro Monkey Says
Drill Baby Drill!
In the latest twist in the Big Oil saga, President Trump is pushing for a major increase in drilling under his “Drill Baby Drill” agenda.
It sounds like something straight out of a Texas oil baron’s dream, and some of the largest oil players—ExxonMobil, Chevron—are starting to ramp up production in response.
On the surface, this seems like a no-brainer: higher production, higher profits, right?
But here’s the catch—pushing for more drilling could create a supply glut. If too much oil hits the market, prices could dip fast.
Industry execs don’t want people to get too carried away. Oil is always in demand, especially with global tensions and geopolitical hotspots keeping prices elevated.
But, while Trump’s plan might boost short-term production, it’s also setting the stage for potential long-term price volatility. Is the market really ready for all that supply? Only time will tell.
The Takeaway?
Trump wants to boost American oil by punishing companies for going elsewhere. While big oil might enjoy a moment in the sun, don't be surprised if things get a bit tough.
Oil prices rely on supply/demand remaining in equilibrium, and removing other countries from the equation could completely throw things out of whack in the long-term.
Career Corner
Question
I was recently asked this question and would love to get some input on how I should answer it: "What are some line items that might be included in the COGS section of the income statement of a tech and/or biotech company?"
Answer
Look up the public financials of a tech company and a biotech company, and you'll see what they include in COGS (directly below revenue, above gross profit). You want to make sure these line items are directly tied to the production of revenue.
Then, research each of the line items and learn about what they are.
Head Mentor, WSO Academy
What's Ripe
Trump Media & Technology Group (DJTWW, DJT) 12.3%, 8.9%
Who knew Donald Trump was quite the fintech mogul? Apparently, investors in his media & technology stocks did, and they’re seeing nice returns as the company announced the launch of its own cr*pto platform. The company’s expansion into new technologies has investors optimistic for more digital asset reform in the future.
Mobileye (MBLY) 8.7%
Mobileye gained as the small company grew and started playing with the big boys. Mobilye makes ADAS, a critical technology used in self-driving vehicles. They just announced a major partnership with Volkswagen, which gives the company some real legitimacy and a huge customer at the same time.
What's Rotten
UniFirst (UNF) 14.3%
UniFirst is the victim of a business deal gone bad. This is a hard lesson in what can happen when a stock gets overhyped on M&A rumors, only for the deal to fall apart. Cintas was supposed to buy the company, which would have valued the shares at $275. Instead, Cintas pulled out at the last second, sending the stock tanking.
Pony AI (PONY) 8.1%
In all honesty, an 8% stock decline isn’t bad for a robotaxi company betting on something that may never happen, especially considering the company reported a 29% decline in sales and an insane 61% decrease in robotaxi-specific sales. Their is in a tough spot as the autonomous vehicle push may be farther out than we think, causing people to consider whether the company is worth investing in.
Thought Banana
Gamestop’s crypto gamble
GameStop, the meme-stock darling, is taking its gambling addiction (and volatility) to another level with its latest move: adding B*tcoin as a treasury reserve asset.
CEO Ryan Cohen is looking to follow in the footsteps of MicroStrategy and convert its balance sheet into Bitcoin. With cr*ptocurrency still shaking off its latest dip, this could either be a stroke of genius or a crazy experiment gone wrong.
Let’s be real: GameStop’s stock has been a rollercoaster of short squeezes, viral tweets, and hedge fund meltdowns. But now, the company is looking to transform itself.
No longer just a haven for gamers who need to offload unwanted controllers, GameStop is dabbling in cr*pto as it reinvents itself in the digital age. The bold move could help bolster its cash reserves and make some waves in the cr*pto community.
Or, it could leave GameStop looking like that guy who invested his entire savings in D*gecoin. Oops.
The Takeaway?
It’s GameStop—expect the unexpected. Whether this turns into a digital treasure chest or a cr*pto dumpster fire remains to be seen. Either way, at least they’re trying to level up from “that store where you trade in your old games for $5.”
The Big Question: Is GameStop’s move to hold B*tcoin a genuine financial strategy, or just another attempt to fuel meme-driven speculation?
Banana Brain Teaser
Previous
David has d books, which is 3 times as many as Jeff and ½ as many as Paula. How many books do the three of them have altogether, in terms of d?
Answer: 10d/3
Today
There are 8 teams in a certain league, and each team plays each of the other teams exactly once. If each game is played by 2 teams, what is the total number of games played?
Send your guesses to [email protected]
The only way to do great work is to love what you do.
How Would You Rate Today's Peel?
Happy Investing,
Chris, Vyom, Ankit & Patrick