No. of Recommendations: 2
The Trigger: When these corporations and property owners are forced to refinance at today's 6% to 8% rates, the math breaks. We will see a sharp surge in corporate defaults, debt-for-equity swaps, and forced liquidations in private credit markets. When the first major software conglomeration or mega-commercial real estate portfolio defaults, institutional panic sets in, triggering the rapid multiple compression (the P/E drop) you are waiting for.Speaking of AI company equity...
Super Micro stock falls 13% on $7 billion financing plans as company touts AI server orders
Super Micro Computer shares sank 13% on Wednesday after the computer server maker announced $7 billion in equity-related financing deals to help to cover the cost of hardware component purchases.
The company said on Tuesday that it’s planning $5 billion in underwritten stock offerings and a $2 billion at-the-market offering, starting in July, through arrangements with JPMorgan Chase, Goldman Sachs and Citigroup.
Super Micro is the latest company tied to the artificial intelligence boom that’s turning to the financial markets for more capital. Earlier this month Alphabet, which offers AI models and cloud infrastructure for model builders such as Anthropic, said it would sell $85 billion in stock, including a $10 billion investment from Berkshire Hathaway.https://www.cnbc.com/2026/06/09/super-micro-stock-...Corning, GLW, was touted 30 years ago, as an internet play. The chart on bubblevision's web site from those days until the eve of the current hysteria, is not encouraging. GLW did have a 3:1 split in October of 2000. Unclear if bubblevision's historical data takes that into consideration.
Steve...having flashbacks to the Worldcom TV ads about the "information superhighway"
