To the Editor: A more conservative way to play the AI boom is through public utilities, which are a direct beneficiary of AI's huge power consumption ("Is the AI Capex Bubble About to Burst? What 250 Years of Market History Tell Us," Cover Story, Aug. 27). As they are signing long-term contracts with the hyperscalers, utilities like American Electric and others stand to greatly benefit as AI grows. While they may not generate the price appreciation of the hyperscalers, they are relatively safe from massive price swings and pay respectable dividends.
Bruce Green On Barrons.com
Sticking With T-Bills
To the Editor: Regarding bond yields sending a "rational message": With an administration and Congress unwilling to align spending and taxes, a tariff regime based on punishment and grievance, a costly and endless Iran adventure, opposition to renewable energy, and a $40 trillion debt demanding rising interest payments that a Treasury twist won't be able to mitigate, I'll stick with Treasury bills until the U.S. government is willing to pay me 8% for 10 years.
Matt Polsky New York City
Give SHOE the Boot?
To the Editor: Yes, sneaker sellers and manufacturers were run out of town last week ("Dick's Hit by a Footware Apocalypse," Review, Aug. 28). The market mavens also kicked Shoe Station Group down the field. Yet Shoe Station is a family footware retailer selling casual, work, and children's shoes across multiple brands. The balance sheet shows $129 million in cash and no debt. It has a small, well-covered dividend. It gave full-year guidance of $1.55 to $1.75. At a close of $13.69, this gives a mid-estimate price/earnings ratio of 8.3. The next earnings release, on Sept. 26, will either give it the boot or support firm footing.
Harvey Rosen Brooklyn, N.Y.
Investors in Denial
To the Editor: Regarding "Why Beer and Alcohol Stocks Are No Bargain" (The Trader, Aug. 28): Under the Biden administration, Surgeon General Vivek Murthy officially issued a historic advisory declaring alcohol a Group 1 carcinogen-putting it in the same high-risk category as tobacco, radiation, and asbestos. Obviously, all alcohol-related investments are likely to perform in a manner similar to investments connected to these scourges of the past-and for the same reason. Denial can be as self-destructive to investors as it is to addicts.
Dr. David J. Pasek Charlotte, N.C.
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