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(B)(N) The Chips Are Down

May 4, 2018
Integrated Circuits

Atom Lithography

Drama. Microchips and integrated circuits (IC’s) have grown to drive the World where once there was only wood, wool, cotton, coal, steel, and oil and the US is still the biggest driver and most of those developments were driven by defense considerations and that requirement has become a pressing need for defense wannabe’s much more than mere coal, steel, oil, and fabrics closer to the ground (Bloomberg, April 29, 2018, Why Can’t China Make Semiconductors?).

Only four companies (as known today but there are lots of secret labs working on quantum computing) can produce the most advanced nano-scale chips – Intel, Samsung, Taiwan Semiconductor Manufacturing – and GlobalFoundries which is headquartered in Santa Clara, California and a spin-off from Advanced Micro Devices (AMD) in 2009 but the company manufactures and sells globally specialty and made-to-order chips made in Germany, Singapore and the US for cars and robots and anything else that you can imagine if you have enough money for it.

Abu Dhabi

Chips Ahoy! Mubadala

GlobalFoundaries is privately owned by the Emirate of Abu Dhabi through its subsidiary, Advanced Technology Investment Company (ATIC/Mubadala), and it is one of the Crown Jewels of their Sovereign Wealth because Abu Dhabi does not do oil, coal, or fabrics for a living.

And neither do we because the market for chips is driving 30% a year into the cotton pockets of our retail suit but this market is not without problems and – surprise – it’s the investors and not so much the owners who have those problems; for more details on how to become an owner and not just another investor when the chips are down, please click on the chart below (and again to make it larger as required).

Exhibit 1 (B)(N) The Chips Are Down - Cash Flow Summary

Exhibit 1: (B)(N) The Chips Are Down – (B)-Class Portfolio – Cash Flow Summary

For more information on real “risk management” in modern times and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class actionLa Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in AmericaBig OilShopping in America or Banking in America, to name just a few.


We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond
Alpha-smart with 100% Capital Safety and 100% Liquidity
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to


Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”). The Canada Pension Bond®™, The Medina Bond®™, The Barometer®™, the Free Market Yield®™ and Extreme Economics®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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