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 »
OWTW
CapEx Team

You Can’t Make This Sh*t Up – OWTW

While cheerleaders of the “green economy” would have you believe that you’re either out of your mind to invest in coal… or a reader of ours (or both), this is happening in the world. You really can’t make this sh*t up. The thing that should be as exciting to you as being elected to judge a wet t-shirt contest featuring Scarlett Johannson is the fact that, while coal prices have been doing what we promised they’d do (go higher), coal

Read More »
OWTW
CapEx Team

No Love for Commodities – OWTW

  HIGH YIELD: A LOSING PROPOSITION Take a look at this chart and then ask yourself what happens when folks wake to the reality that inflation is transitory in the same way as tofu is tasty? Suddenly, that capital seeks inflation protection, that’s what.   NO LOVE FOR COMMODITIES Now, where could that capital seek a safe haven? Hint… For the majority of investors out there, commodities are still as hated as ever. To get a better sense of just how out

Read More »
OWTW
CapEx Team

WallStreetBets, Meet Yellowcake – OWTW

After helping push up meme stocks to the moon, WallStreetBets has now zeroed in on an unlikely target: uranium. Yes, you read that right! If you are a long-time reader, uranium has probably been on your radar for a while (in Insider we first dipped our toes in uranium stocks in September 2016 and then doubled down on them in late 2018), and you are probably tired of hearing us drone on about it. That said, the author of this

Read More »