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CapEx Team

Back to the Dark Ages – OWTW

  CRAZY OR…? As you probably know, things have been a little shaky over in the “growth” world recently. So much so that ARK’s Cathie Wood — the poster child of the “growth” wave — suggested these stocks were now deep value (yes, really!). But fear not! According to Wood, they are heading for the moon: According to our research, emerging innovation platforms will transform our lives and the global economy radically, scaling their equity market capitalizations potentially from roughly $14

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CapEx Team

Santa: A Drug Dealer and Terrorist?! – OWTW

This week we’re swapping the stock charts on our screens for endless reruns of Home Alone, Grinch, and Die Hard with our families. That’s why we’re dusting off an old Christmas post Chris wrote back in 2010 (gosh, has it really been 11 years?!). It’s a deep dive into Santa’s rather unique business model we guarantee you won’t find in any business school. Ironically — or unfortunately — we think you’ll agree it’s even more relevant in today’s PC world. Click here

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Santa Klaus Sticker
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CapEx Team

Beware the Hype – OWTW

The below list (h/t to @silverguru22) caught our attention this week. It shows the performance — or rather underperformance — of the stocks CNBC host Jim Cramer urged the unsuspecting rubes investors to buy earlier this year. Most of these stocks were high-flying “growth” names completely disconnected from fundamentals. Not that that stopped folks from flocking to them. In their defence, the Jim Cramers of the world were hyping up these stocks as the best thing since sliced bread. Rather than buying

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CapEx Team

Ghosts of the Dot-Com Bubble – OWTW

Our friend Tim Staermose shared this chart in the Hedgie Watercooler Telegram group (click here to get free access to the group). After mimicking the Nasdaq during the dot-com boom, Cathie Wood’s ARK Innovation ETF (ARKK) — the poster child of the current growth wave — seems to be also following the patterns of the dot-com bust. Now, there’s always more to investing than just the angle of a chart. But as the saying goes, history never repeats itself, but it

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CapEx Team

Time to Retire? OWTW

High up in their ivory towers, the pointy shoes just realized what most of us have known for some time — high inflation is not as transitory as they have spent months convincing us. Quite a 180 from earlier this year: Federal Reserve Chairman Jerome Powell said prices would rise this year as the pandemic recedes and Americans are able to go out and spend, but he played down the risk that this would spur unwanted inflation. “We do expect that

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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

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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

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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

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