The Rational Cloning: Weekly Ideas #31
Laughing Water + Old West Q1'22 Letters, Tweets That Make You Go… Hmm 🤔
Welcome to the 31st edition of the Rational Cloning Newsletter (Weekly Ideas Series).
Helping you discover the best ideas of others.
Happy cloning.
Weekly Investment Ideas
LWC's Q1'22 letter to investors is available. In the letter I touch on things I know for certain in an uncertain world, and provide updates on select investments. $AIM.TO, $CSP.L, $MSOS, $TACT, $THRY
Check out Old West’s Q1 2022 Investor Letter. We discuss our + double digit % quarter led by our investments in #uranium miners, #NuclearEnergy and #gold miners, and we give a write-up on our investment in #agribusiness company Bunge Ltd $BG.
Long $PHX. The turnaround strategy of transforming into a royalty co. is working and the company should screen better as the crappy hedges put in place during the worst of Covid start roll off later this year.
PHX is a cash flow machine with a growth pipeline.
Sultan Ameerali @SultanAmeerali
When mkts get poleaxed I like to re-underwrite large existing investments to make sure R/R is still superior (against new opportunities mkt inevitably throws up).
Cpl quick updates on few names have discussed publicly here lately...will update ad hoc w other names
1) $HRBR
Tweets That Make You Go… Hmm 🤔
Ep. 223 - Expressing Macroeconomic Theses through MicroCap Stocks with Sid Grover, Founder and Managing Partner at Canterbury Lane Holdings
Jeff Currie on the ongoing capital starvation of this cycle for oil, gas, fertilizers, metals, everything except so called “capital light (because most turn out to be capital heavy) business models”…
No big deal. Palm oil isn’t used for much. And Indonesia is only like 60% of global production. @DoombergT
Sidhant Sibal @sidhant
If I had told you 2 years ago that $XOM would have a substantially larger market cap than $NFLX in 2022, I think you would’ve called me crazy. Markets are humbling. H/t @charliebilello
If passive strategies took equity valuations to stupidly overvalued levels on the way up…
…they can likely take equity valuations to stupidly undervalued levels on the way down.
With the 50 day moving averages broken on the major indexes, the next stop down are their 2/24 lows. I expect this fast two day drop to be followed by a grinding, torturous decline with weak rallies that shouldn’t be traded. The goal is to loss a little as possible.