OWTW
CapEx Team

Let them eat… soy – OWTW

  URANIUM: NO LONGER THE KODAK OF ENERGY When we first started pounding the table on uranium years ago, the yellowcake was the Kodak of energy. Dead. Here’s how Chris captured the sentiment around uranium at the time: Right now the uranium price is so depressed that it will require a near tripling of price to entice the required capital back into this sector — capital that will be required in order to develop production to fill the supply-demand gap which will

Read More »
OWTW
CapEx Team

The Next Tesla – OWTW

Last week we highlighted a SPAC merger deal involving an electric vehicle startup and a lingerie maker as a sign of how out of whack the market is right now. Well, this week we bring you another head scratcher: Rivian, a high-flying EV company pimped as the next Tesla. After the IPO earlier this week, Rivian sports a market cap of $146 billion, which makes it bigger than Starbucks and American Express. At the same time, The Houston Chronicle reports

Read More »
OWTW
CapEx Team

EVs & Lingerie – OWTW

Few things describe today’s market better than this proposed “marriage” of a lingerie company with an electric vehicle startup: Would this kind of stuff be happening if interest rates weren’t forced to historical lows? We think you know the answer…   REMEMBER THE SPAC BOOM? The above merger is just the tip of the giant SPAC iceberg. You probably remember SPACs (or blank check companies) were all the rage earlier this year, attracting big-name underwriters and investors and raising record amounts

Read More »
OWTW
CapEx Team

Coal: Sold Out – OWTW

Not really what you’d expect from a resource that’s supposedly on the way out, is it? “It’s pretty much sold out,” Peabody Chief Executive Officer Jim Grech said Thursday during a conference call. “We only have a small portion left to be sold for 2022 and for 2023.” Arch’s thermal coal output for 2022 is “fully committed,” CEO Paul Lang said Tuesday, with an average price for Powder River Basin output of $16 a ton. That’s well above the $13.25

Read More »
OWTW
CapEx Team

The Economist Strikes Again – OWTW

A few weeks ago we highlighted the ironically prescient “Making Coal History” cover of The Economist. As a refresher, it literally bottom ticked the coal market. Now, they’re back with another doozy of a cover. The reason we find it so mind-blowing is because in the midst of a global energy crisis (the one we have been warning about for the last 3 years), these dolts come to the following conclusion: Spending on renewables needs to rise. And the supply

Read More »
OWTW
CapEx Team

What the Frac!? – OWTW

  FOOD PRICES: WHAT HAPPENS WITH OIL AT $100? Did you notice how your grocery bills have risen “a little” over the past year? Considering that what you pay in the supermarket is the end of the value chain — which is 6-12 months in the making — the prices are going to be a hell of a lot higher 6-12 months from now. Our friend Tracy (aka @chigirl) pointed out something that seems to be lost on our political leaders… Given

Read More »
OWTW
CapEx Team

Inflation: Talk Dirty to Me – OWTW

Ah, those Perrier-sipping, pointy-shoed central bankers… It wasn’t that long ago when they assured us we were crazy to even mutter the dreaded “i” word — even as raging consumer goods prices were obvious to everyone (but them). But after a while, the charade became too obvious. They admitted that there was some inflation, after all. But — like everything bad in life — it, too, shall pass. “Transitory” became the word du jour. Fast forward to today… The pointy-shoes

Read More »
OWTW
CapEx Team

Santa’s Out of Coal Too – OWTW

  MAKING HISTORY We highlighted the predictive power of magazine covers in these missives before. More often than not, they tend to time market tops (and bottoms) with stunning accuracy. The following gem adorned the cover of The Economist in early December 2020. The political class in power has been hellbent on making coal history. Instead, coal is making history. And not in the way the pointy-shoes had intended. And not just that. The above cover nailed the beginning of a

Read More »