11/11/2025
For Portfolio IV
CoreWeave Inc (CRWV)
Reduce the position of CoreWeave Inc to 7% of the portfolio
Resource constrained
Local Gold's Gym had broken AC units several months ago. They were not able to fix it until a month ago. Resource constraints have become bottleneck for data center developers from electric power, chips, severs and labors. AI development has been accelerating; nonetheless, the limited resource is likely to tip the scale to larger entities.
The prosperity of CoreWeave business has not changed much. However, the high valuation at current level will not be sustained with today's development. Current quarterly growth on revenue and operating cash flow are impressive, but the delay of third party data center (for whom CoreWeave did not disclosure) clouded the visibility of near future of the CoreWeave operation. It will limit the growth of revenue and cash flow generation. Therefore, retreat is warranted and observation the continuous the business of CRWV is ongoing quarterly.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
08/21/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Close the position for Core Scientific in Portfolio II & IV
Valuation gap reversed
In the past months, the price of CoreWeave has declined significantly and the valuation gap between CRWV and CORZ has reversed. The price of CORZ is actually about 17% higher than CRWV as today regarding their stock exchange ratio of CORZ to CRWV (1:0.1235) upon company merge. The price of CORZ is $13.58 per share at the time of 11:27 am on 8/21/2025, and the price of CRWV is $93.40. Therefore, the price of CRWV will be $93.40*0.1235=$11.53 per share for CORZ.
This is the reason to close the position of CORZ and to replace it with CRWV or hold cash.
Also, there are two catalysts which may reverse the gaps again which will make the price of two companies to match the ratio of 0.1235. The first, company merge will likely be completed than not. The second, institutional investors is emerged as buyer of the common shares of CoreWeave. However, that is a high probability of reasoning and the most important factor is still the business performance of CoreWeave.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
08/15/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Hold the position for CoreWeave and Core Scientific in Portfolio II & IV
Long term investment
For CoreWeave and Core Scientific:
Business performance from CoreWeave is satisfactory, especially revenue and cashflow from operation. Quarterly increasement for revenue and cashflow operation is outstanding and revenue backlog is adequate. Holding current position for CoreWeave and Core Scientific is ideal as long as the performance and trajectory of revenue and cashflow from operation remain intact and revenue backlog is adequate.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
Concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
07/26/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Additional 2% investment for CoreWeave in Portfolio II & IV
Core Scientific Inc is an alternative for investing in CoreWeave Inc.
Looking for a long term investment
Headwind for CoreWeave:
Great competition from giant data center operators as Microsoft, Oracle, Alphabet, Amazon invest heavily in their AI infrastructures. CoreWeave will become once-hopeful Moderna Inc (MRNA) if it fails to achieve scale, to have huge base of clients, and to continue to grow its revenue.
Huge of debt. CoreWeave has $8.7 billion of debt and accumulates extra $3.75 senior debt at the time of this sentence. Serving the debt payment and interest is huge task. Again, CoreWeave needs to generate enough of revenue to serve the debt and support business growth.
Booking more backlog revenue. CoreWeave has concentrated huge contracts now to support revenue until 2029 from significant customers. So far, Microsoft will remain as a customer until 2029 and CoreWeave has to find enough revenue stream to fill up the gap when Microsoft's contract end.
Tailwind for CoreWeave:
Global integration of AI development. The significance of AI is that AI can be catered to a specific purpose function and become a helping tool. Therefore, it is going to create lots of AI lab and development companies.
NVIDIA's helps
The OpenAI's dispute with Microsoft
The competition between Meta and Amazon in AI development
Investing Core Scientific as an alternative to CoreWeave because of acquisition. This acquisition still needs the regulatory approval and approval from Core Scientific shareholders.
No research done for Core Scientific.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
06/27/2025
For Portfolio II, III, IV
CoreWeave (CRWV), GE Vernova (GEV), Netflix (NFLX), Hingham Institution of Saving (HIFS)
Additional 2% of investment for CoreWeave for the Portfolios (II, IV)
Increase the position of both GE Vernova and Netflix to 4% of Portfolios (II, III, IV)
Decrease the position of Hingham Institution of Savings 50% (II, III, IV)
For long term
The development of AI industry is a ongoing process and the span of 5 years is a foreseeable future. The goal for CoreWeave now is to build the position of investment for the company and observe the progress quarter by quarter until its dominance of significant market shares.
For GE Vernova, it is about diversity of investment in energy section other than solar energy.
Netflix should be self explanatory.
Decrease the investment in Hingham Institution of Saving is due to the following reason.
The uncertainty of inflation. Even the inflation will be clear in later days, the interest rate in the marketplace will be affected greatly by other factors.
US currency dominance in the world is changing. In recent days, several countries of different region are moving away from US dollar and Euro is gaining strength. Moreover, countries in Asia are trying to form alliance and move away from US dollar for global trade. Such movement will decrease the creditworthy of US currency.
National debt of the United States is reaching a level of unsustained. Never a business or home hold can have great debt and without bankruptcy. The money of a trillion interest payment can have lots of utilization. Such debt level will definitely reduce the creditworthy of the United States and increase the borrowing cost. Should have the auction of US Treasury been failed, bond market is going to be terrible. So will be the mortgage market.
The real worry for citizen of the United States is the "real interest rate" in the financial market. In the past year, the mortgage rate remains in a elevated level even Federal Reserve reduces fund rate. Such indication points to the higher borrowing cost for ordinary people.
Investment in Hingham should be reduced.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
06/02/2025
For Portfolio II, III, IV
CoreWeave Inc (CRWV), GE Vernova (GEV).
Add 2% of investment of the Portfolios for CoreWeave (II, IV) and 2% of investment of the Portfolios for GE Vernova (II, III, IV).
For long term.
No research material is done. To invest in CoreWeave should consider the following.
AI can become powerful tools for business operations, personal advancement. It can be big as PC invention, Internet, and smart phone if it fulfills its promises.
CoreWeave provides a very different kind of cloud platform infrastructure, one with GPU for AI developers, operators and businesses who use AI application. Its cloud is running on GPUs infrastructure differ from traditional data centers which run on CPUs.
CoreWeave right now is a leading provider for GPU cloud infrastructure; however, as always, technology sector is an extreme competitive place. Rapidly building up the platform network and scale up operation is a necessity for CoreWeave to become a dominant AI infrastructure provider and not being eaten alive by Microsoft, Alphabet, Amazon.
Because of this reason, CoreWeave has accumulated $8 billion of debt as first quarter of 2025 before additional $2.0 billion senior note offering. Serving the debt (Cash flow for debt service is 460 million which includes $271 million principal, $189 million interest payment that includes $47 million capitalized interest ) and paying off and serving debt is going to be a tough job for CRWV.
On the positive side, CoreWeave has generated sizable cash flow from operation, $457 million, which excluding working capital changes in 1Q 2025.
Microsoft's contract ends in 2029, and it is one-time deal. Therefore, CoreWeave has to fill the empty spot in 3 and half years.
The following links provide more information.
For GE Vernova, it is a energy consumption necessity. Beside all the electronic devices usage by consumers and business, the new born of AI industry will require huge amount of computing power and energy to run it. GE Vernova is a spin off from General Electrics and is specifies on provide energy equipments and services for all kind of electricity generation, coal, gas, gasoline, nuclear and wind. It is a perfect match for energy-AI mix investment.
Following is from Google AI search:
Building a coal-fired power plant typically takes 3-5 years
Building a gas-fired power plant typically takes 27.5 months-7 years
Building a nuclear power plant typically takes over 5 years for construction only
Building a 100 MW wind farm typically takes 8 to 14 months
Building solar farm takes 8-18 month of construction time.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.