🐧 Educational market commentary, thesis breakdowns, watchlists. My substack: https://xitter.cf/t.co/0W5O6Llyib No personalized financial advice.

Joined September 2025
Tropical Penguin retweeted
$DUOT - LD Micro pres provided some interesting news/insights. Good time to update priors esp with the pullback. Will walk through takeaways (both positive and negative). TLDR: business outlook improving with longer-dated, better counterparty contracts (20MW CSP deal for 2Q27 deployment signed). High visibility into securing another 100MW of capacity to deploy for publicly traded CSP’s and hyperscalers. Georgia AI cluster already partially running/generating revenue. Proving ability to deploy MW for AI DC’s at fast pace. Stock trading at a discount to tangible book value(!!), no upside baked in for future deployments. The big question is getting debt financing, and at what rate. Getting financing is the unlock for the stock IMO, along with continuing to book these 10 year leases with large public companies Positives - 10yr 20MW deal with a mature publicly traded cloud service provider for >$400mm is a great step. 10yr term is a nice upgrade from 5yr, and the CSP customer is a material step up beyond AGPU. Could be one of the hyperscalers, but more likely AKAM, IBM, ORCL, etc. just based on not calling it a hyperscaler. FWIW they called the contract value ~$450mm-$460mm in the Q&A. More of these would be highly preferred over more AGPU biz. More diverse tenant base makes a more attractive biz/takeout target. - Columbus GA cluster is live and revenue generating. they said 7 MW is live and billing right now. Based on disclosure in the new deck, we should see hosting revs from this flow through in 3Q. Proof of execution will show up in PnL when they report in November. - Doug said they just signed a 4MW contract deploying in Roberta, Georgia with a "well backed neocloud" customer. That seems like a new announcement to me. - Under contract/in active negotiations for 100MW of additional powered, data center-zoned land across multiple US sites. Of that, ~25MW is currently under contract across multiple sites in the US, and DUOT is in active negotiations on an additional 75 MW. Expects to finalize all site agreements by year-end. Should have a solid deployment road map after these deals are signed. - They are very focused on raising debt at the project level instead of issuing equity going forward. Longer duration contracts with strong counter parties should help that. Saying 50-70% LTV is how to think about the raise but most debt now is all based on customer contract. Using rough math of ~$120mm cost for Columbus, could mean ~$60mm of capital raised via debt to use as equity in future projects (probably AGPU JV). Even at 12.5% rate and 5yr amort, the site cash flow could cover the debt service. Interested to see if they try to raise debt on the 20MW CSP ahead of deployment to fund construction. Questions/Concerns - Doug says Technology Solutions business has done ~$30mm YTD. Business did ~$3.8mm through 1H26. Did they really do ~$26mm of sales here in 3Q, or is he talking about the backlog #? Is this all flowing through in 2026? - Doug says margin in Technology Solutions is 12-15%. is that an EBITDA margin figure? Business did ~23% gross margin in 1H26 - What ROI/unit economics should we be modeling to? Previous HPC colo example had 75% "contribution margin" that included operating expenses of ~$1.5mm/MW. The new slides imply ~45% site EBITDA margin with ~$1mm/MW. What is driving such a big delta here? This is one of the most important things, and they really aren't being clear on it. - The new unit economics slide says 3 year payback period, but the ~$1mm/MW EBITDA would imply 6 year payback period. They clarify in Q&A saying the bigger deployments have a longer payback but the small 4MW ones are 3 years. One has extremely good returns, one is just in line with the average powered shell provider. What drives them to accept longer payback period? - Of this 100MW of land under negotiation, how much is for unannounced deployments vs. matching announced deployments with land?
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Tropical Penguin retweeted
$FTAI PLEASE READ And if you are an actual human thinking being who knows anything about the Aero space tell me where you disagree! THIS IS A NON POWER VALUATION ONLY Current EV is $19B. The Non Power 2027 Guide is $1.85B EBITDA - Aerospace Products: $1.4 billion Aviation Leasing: $450 million Traditional leasing trades for 9-10x... $4B EV AP Multiples- Transdigm 19.0x 45% margins and high value moat Heico 27x 28-30% margins w/ proprietary parts GE 30x 27% margins Howmet 31x 32% nargins AAR 14.5x 12-14% Margins and ariframe heavy so lower value FTAI- I would argue 15x AP is fair and conservative based on margins, growth rate, GE Supply deal, Chromalloy PMA deal for turbine blades and vanes, UAL Long term service deal, growing global presence etc etc So Aero Prod $21B EB There are 100mm shares and 25B EV I AM GIVING ZERO VALUE TO THE POWER BIZ THAT HAS ALREADY SIGNED A $1.5B POWER DEAL = $450mm EBITDA and will do an additional $300MM EBITDA in the near term!
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Tropical Penguin retweeted
.@elonmusk said 10GW in 2027 in addition to the 3GW by the end of this year. @SpaceX aiming for 20GW so that the amount of power and cooling is far in excess of what is needed to turn the GPUs on. Where is $SPCX specifically getting 10GW or 20GW of incremental power from? Does $FTAI Power still have capacity or are they sold out?
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Tropical Penguin retweeted
That’s one of the reasons I own and keep buying $FTAI. Power is the trade for the next 5 years. 10GW+ of compute by end-2027 (or more) doesn’t happen without a lot more electricity, and fast. $FTAI at 7.5x EBITDA still turning CFM56 cores into 25MW aeroderivative turbines that can actually ship in 2027 while the big turbine guys are booked out past 2031. Don’t get blurred by the day-to-day bullshit and the newest HF to blow up...
Maybe more than 10GW
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Very well written. I also think people use Neo cloud as a blanket term. There aren’t many “Neo clouds”. When you think Neo cloud you need to think GPU buyers + power connectors. These would be NBIS CRWV IREN (the big three). CIFR + WULF are co locators. Other companies plug and play GPUs and CIFR + WULF do not have direct exposure to GPU pricing and depreciation. I think a bunch of popular fintwitters say Neo Cloud but they don’t differentiate Neo Cloud vs Co Locators.
Gartner says over 80% of neoclouds won't survive as independent companies by 2030. $CRWV fell 15% on the day it came out. I read the release line by line. The headline is directionally right. The math underneath it is not. Here's what it says, where it breaks, and what it means for $NBIS, $WULF and the AI Infrastrcuture names. WHAT GARTNER ACTUALLY SAID Over 80% of neocloud providers will "cease independent operations" by 2030. That includes being acquired or merged, not just failing. And it's a count of companies, not of capacity or revenue. AI providers spend ~$1T on infrastructure in 2026 and another ~$6T in 2027-30. To cover that capex, financing and a 12% return, data-center owners would need $8.5T of revenue through 2030. Gartner sees no more than $3.6T of AI revenue tied to data centers. Result: $3.5T+ of spending exposed to write-downs by 2030, $4T+ by 2032. PROBLEM 1: THE WINDOW The $8.5T has to recover the full $7T of capex by 2030. But most of that money is spent in 2028-30, on buildings and power that last 20+ years and chips that last 5-6. A cluster built in 2029 can't pay for itself by 2030. Nothing can. I rebuilt it on an accrual basis (my math, my assumptions): depreciation, plus 12% on invested capital, plus operating costs at 25% of revenue. Revenue needed through 2030: $4.3-5.1T, not $8.5T The gap: ~$0.7-1.5T, not $4.9T ~70% of the $7T is still on balance sheets at end-2030, with years of earning life left PROBLEM 2: GARTNER'S OWN MARKET SIZING Gartner puts global AI-optimized IaaS spending at $42B in 2026 and $66B in 2027, rising to $174B in 2030. Now look at what's already booked: $CRWV and $NBIS alone guide ~$16B of 2026 revenue and a $25.5-28.5B run-rate exiting the year. Two companies, ~40% of Gartner's entire 2027 world market, before any 2027 growth. $ORCL did $7.4B of cloud infrastructure revenue in one quarter (+121%), with $664B of RPO and ~half expected to convert within 36 months. CoreWeave's backlog is $104B, plus $25B+ signed in Q3. Oracle's 36-month conversion plus CoreWeave's backlog alone roughly equal Gartner's entire 2027-30 global forecast (~$457B, interpolated). So one of three things is true: Gartner's forecast is 2-3x too low; it excludes the lab and hyperscaler contracts that make up most neocloud revenue (wrong yardstick); or it quietly assumes mass contract defaults. None of them supports the 80% call as written. Gartner has under-forecast this series before. In October 2025 it put 2025 at $18.3B and 2026 at $37.5B. Ten months later those became $21.5B and $42.3B. And demand keeps outrunning it. Anthropic reached a ~$65B run-rate by July. OpenAI was at ~$50B by September (Bloomberg; the two count partner revenue differently). PROBLEM 3: PRICES ARE RISING SemiAnalysis H100 one-year contract index: +38% from Oct 2025 to Mar 2026 B200 rentals: +79% in three months Nebius and AWS both raised GPU prices this month Three-year-old H100s getting more expensive is not what "rapidly depreciating assets" looks like. The caveat: this is shortage pricing, and H100 rents have fallen sharply once before when supply caught up. PROBLEM 4: "80%" IS A HEADCOUNT One directory counts 536 GPU cloud operators across 45 countries. Revenue sits with a handful. Roughly 430 of them losing independence, many by acquisition, is how every capital-intensive industry matures. It says nothing about the leaders. WHERE GARTNER IS RIGHT The killer isn't demand. It's capital. The 10-year Treasury is ~5.2%, around its highest since 2007 $CRWV carries ~$35B of debt, paid ~$640M of interest last quarter (25%+ of revenue), and its bonds yield 13-15% A backlog doesn't help if you can't fund the build. And supply is coming. Nebius's own CEO estimates the industry adds ~10 GW this year and 15-20 GW a year in 2027-28. Meta is reportedly building a unit to rent out spare GPUs. SpaceX rents Colossus 1 to Anthropic on what Musk calls a 180-day lease. Some "contracts" are short. $NBIS: SURVIVAL ISN'T THE QUESTION Score Nebius on Gartner's own two criteria. Cost pressure: Secured debt at SOFR+250, against $CRWV loans at SOFR+450-550 $8B of cash at June 30, plus $5.75B of convertible notes raised in August $37.5B of contracted backlog (RPO) Meta committed to buy up to $15B of capacity Nebius doesn't sell to others Differentiation: SemiAnalysis ClusterMAX top Platinum tier, alongside CoreWeave Two GPU price increases in 2026 Full-stack software, not just bare metal Control: Volozh's family trust holds about half the vote. Nobody forces a sale. My estimate: 75-85% odds Nebius is still independent in 2030. THE REAL $NBIS RISK IS RETURNS My math: hyperscaler bare-metal contracts (~$12M per MW a year) take ~4-7 years to pay back the hardware. They keep the lights on and secure cheap financing. The value comes from 1-3 year cloud deals ($20-25M per MW) and short-term deals ($40-50M per MW). Those roll over in 2027-29, straight into the supply wave. And the bill is large. Q2 GAAP EBIT was still -$176M, with depreciation above adjusted EBITDA. The CEO puts all-in cost at ~$50B per GW and ~$250B for the 5 GW pipeline, with ~20% financed so far. Survives: very likely. Compounds from here: depends on 2028 pricing and how the next $200B is raised. $WULF IS THE LANDLORD, NOT THE NEOCLOUD Lake Mariner is leased to Fluidstack, backstopped by Google. TeraWulf has also signed Anthropic directly in Kentucky. If Fluidstack gets acquired, the leases go with it. That counts toward Gartner's 80%, and WULF still gets paid. WHAT WOULD CHANGE MY MIND GPU rental indices rolling over $NBIS missing in Q3 (mid-November): the second half needs ~$1.0-1.2B of revenue per quarter vs $582M in Q2 Hyperscalers trimming 2027 capex on the late-October calls $CRWV bonds staying near distress BOTTOM LINE Gartner is right that the long tail consolidates and that capital is the killer. It's wrong on the math, and "80%" says nothing about the leaders. Disclosure: long $NBIS, $WULF, $CIEN, $LITE, $MRVL. Not investment advice.
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Tropical Penguin retweeted
This week, $DUOT announced the sale of its #GPUaaS entity to @Axe Compute, meaning more capital for sites and a sharper focus on #AI #colocation. At #DuosEdgeAI, we’re focused on the infrastructure behind AI: power, cooling & scalable colocation capacity. duosedge.ai/home
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Tropical Penguin retweeted
This puts some important pieces of the puzzle together for $DUOT and is a positive for the business and the stock. AI data center colocation is where Doug & team have a true advantage, and demand for these 10MW-30MW distributed clusters is only going to accelerate. Freeing up the balance sheet and focusing on differentiated deployment capabilities is the right move. In the short term, good to see guidance reiterated. Wouldn’t be surprised to see another cluster deployment location announced soon. On this deal specifically: > extending the term from 3 years to 5 with options is great and matches with the rest of the colocation deals. > the AGPU release notes that DUOT will receive the remaining unpaid balance of the ~$43mm equity check either 12 months from signing or upon getting securitized financing of the GA cluster. I imagine this gets rolled into another cluster down the line. > the exec comp EBITDA margin target makes a lot more sense now based on how the GPUaaS deal gets restructured. I’m hoping management gives a slide explaining that this dilutes margins but is the same profit $ as any other Colo deal.
$DUOT has completed the sale of its GPU-as-a-Service Entity to @AxeCompute ($AGPU), freeing capital for new AI colocation sites. Duos will continue to deliver service to the end customer at Columbus under a revised five-year agreement. Details here: globenewswire.com/news-relea… #DUOT
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$DUOT has completed the sale of its GPU-as-a-Service Entity to @AxeCompute ($AGPU), freeing capital for new AI colocation sites. Duos will continue to deliver service to the end customer at Columbus under a revised five-year agreement. Details here: globenewswire.com/news-relea… #DUOT
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Tropical Penguin retweeted
This gives some clues on the $DUOT GPUaaS deployment. Looks like an institution bought the entire ~$98.1mm GPU-backed loan from @USDai_Official Based on the season and sell description, I believe this cluster is likely online generating revenue. Positive sign for DUOT…
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Tropical Penguin retweeted
Replying to @jdm_trades
Absolutely right. And here’s why I like the CEO of $RFIL. He’s not touting “hypescalers” in his major TAM. He thinks some benefit will partly arise from the need for edge solutions because of data centers. He’s very quick to say that the opportunities are big in other areas. In my interview with him at the @MSmicrocaps 2026 virtual, I made sure to ask him how penetrated the telecom DAC opportunity was. He said barely. Will be interesting to fact check that, but that means the opportunity is pretty big and wide open. Back on the subject of data centers, I’m also hearing that modular data centers are finally gaining momentum. So, even though RFIL would not have a solution for hyperscalers, I’d presume they can have some presence in the modular business.
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Tropical Penguin retweeted
1/19 $RFIL already gave us one huge multibagger run. With a P/E of 10x, has a pullback given investors a 2nd shot? RFIL was ~$5 in June 2025 & ~$22 by June 2026. After the AI pullback + Q3 selloff, it round-tripped. Yet the business arguably looks BETTER today. Here is why🧵
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Once you understand the basic information that actually drives a thesis, additional information has a tendency to increase confidence more than it increases accuracy in judgment. There is a large body of evidence that supports this. So, good investing is far more about identifying the key variables that matter, than knowing everything that can be known.
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Tropical Penguin retweeted
$FTAI President bought $500k at $201 Current price: $190 Just saying…
$FTAI insider activity: President David Moreno bought 2,475 shares on July 31 at $201.27, investing $498,143. CEO & Chair Joseph Adams exercised options for 12,448 shares at $25.44 on May 11. With 7,752 shares withheld for costs and taxes, his net holdings rose by 4,696 shares.
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Tropical Penguin retweeted
$FTAI added as a new "Best Idea Long" by @HedgeyeIndstrls. Jay consistently does great work. Looking forward to reading the full report! Long FTAI: Van Sciver is presenting New Best Idea Long (FTAI) Thursday, September 3rd @ 2pmEST. FTAI is perhaps one of the more contentious names in Industrials. Jay has been pitched it as a long and as a short. Investors no doubt suffer a bit of ‘brain damage’ to understand the business model and complexities. Jay has come to think much of that skepticism stems from missing the broader picture of a business with several higher-return investment options…along with management’s inconsistent communication. Over time, FTAI has grown well and executed within a favorable niche in aerospace (+ energy).  For investors, the transition to a leading independent platform in the engine leasing and MRO market with opportunistic moves beyond the core aviation platform, should be rewarding. Van Sciver thinks shares of FTAI offer 30%+ upside from current levels, with the recent down move getting us off the fence. FTAI certainly isn’t perfect, and we recognize that the upside is better appreciated than it was a few years ago. Engine platform dependence, tie-ins with the data center build-out narratives (sum-of-the-parts framework), and moves outside of core markets all present some risks.  @Hedgeye @KeithMcCullough
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Tropical Penguin retweeted
The more and more I learn about $FTAI the more bullish I get on it. This thing is incredibly misunderstood by the market. They’ve built a flywheel ecosystem that is only getting started.
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$AP DCF Analysis & Thoughts > High-Level, not a high growth biz; should be a steady grower benefiting from a radically improved cost structure due to shutdown of U.K. steel rolling facility. > $AP is pretty significantly undervalued, even when using more conservative assumptions. > Assumptions expect a return to growth in FY26 fueled by a robust H2'26 as significant backlog and order growth across both segments in H1'26 convert and ship. > As seen with AP's Q2'26 financials, the FCEP segment achieved its more realistic margin floor, thus would expect additional expansion as volume increases + OpLev and other efficiencies on the ALP side as well, especially as revenue grows. > Improving steel market, pumps for power generation and Navy, increasing investments in manufacturing by Pharma driving demand for AP's air handling solutions, heat exchanger demand for nuclear facilities which have many coming back online.
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Tropical Penguin retweeted
$FTAI Morgan Stanley -Raises to Top Pick and takes Price target from $319 --->$360 Reiterate OW and Top Pick in Aerospace We continue to view FTAI’s growth story favorably as the company continues to expand its positioning across Aerospace Products, SCI, and Power. In Power, the $450 mm adj. EBITDA guide reflects materially fewer than 100 units, while prior economics remain intact and additional contracts could support upside toward ~ $750 mm. In Aerospace Products, we view the near-term margin pressure as a constructive tradeoff for larger, stickier Tier 1 airline customers and continued share gains. Meanwhile, SCI I has entered harvest mode as SCI II begins deploying capital, scaling a more recurring and capital-efficient earnings stream. With multiple upside levers across Power, Aerospace Products, and SCI, we continue to see an attractive risk reward skew of ~8.6x. We reiterate our OW-rating and Top Pick in Aerospace on FTAI and increase our PT to $360 from $319.
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Tropical Penguin retweeted
Needham defending $SEI we think the market is confusing temporary bridge power with the permanent plant. We make no estimate changes, maintain our Buy rating and $98 price target, and would be buyers of the weakness. SEI is down ~9% intraday on two headlines that we think are being read more negatively than the underlying facts support. The key point is that the lawsuit concerns temporary turbines that were already scheduled to leave the Stateline site, while SEI’s permanent ~900 MW behind-the-meter plant has a separate Title V air permit that is already in hand and is not being challenged. Separately, the Memphis City Council moratorium appears focused on new data centers inside Memphis city limits, while the Stateline generation project is located in Southaven, Mississippi. In our view, neither headline changes the economics of SEI’s contracted asset base.
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Tropical Penguin retweeted
$FTAI PLEASE READ The capital markets playbook is repeating. - Residential MBS (first pooled 1970 but exploded in the late 1980s–2000) and CMBS (mid-1980s but real takeoff was early–mid 1990s with RTC/conduits) turned illiquid, long-duration real-estate cash flows into liquid, rated, capital-markets products. Cost of capital collapsed, originators scaled, and residual/secondary markets deepened. - Aircraft ABS (first pooled in 1992, real scale in the late 1990s then post-GFC boomed) turned leased jets and engines into financeable, residual-supported assets that let lessors recycle capital and grow fleets. - Manufactured-housing ABS (Green Tree pioneered mid-1980s, boom through the 1990s) and then container / shipping ABS (first pooled ~2001, first major public deal 2006) did the same for other large, cash-flowing physical assets---lowering cost of capital, deepening secondary markets, and unlocking enormous value. - CFM56 engines already live inside the aircraft ABS world. But now the same engines sit at the center of a second, far larger demand shock. $NVDA just announced $500B+ compute financing platforms with $APO, $BLK, $BX, $BAM, $GS and $KKR are designed to turn GPUs, full-stack AI infrastructure, data centers and power into a mainstream investable asset class. Jensen’s language is 100% pure securitization: “revenue-generating assets,” productive, long-lived (pushing useful-life narratives toward a decade +), easily transferable between customers, and able to support long-duration, usage-linked financing. Importantly, Nvidia’s optional ~25% backstop is the classic credit-enhancement move that made early aircraft ABS and EETCs work. - That power demand is exactly what extends the economic life of CFM56 engines via aeroderivative conversion. Residuals, parts demand, longer servicing needs and financing capacity all benefit. - FTAI is positioned to capture more of this than anyone else. It already controls one of the largest CFM56 bases (scaling toward 1,600+ w/ SCI II), runs exclusive MRE on its SCI I & II portfolios, owns the critical hot-section PMA pathway with Chromalloy for blades and vanes, holds a multi-year materials agreement with CFM, and just printed its inaugural SCI ABS. The same capital that industrializes “compute as an asset class” at half-a-trillion scale is the capital that will underwrite stronger residuals and longer tenors on the engines FTAI owns, maintains, and is converting into power. History shows who wins when a new end-use collides with an established ABS asset class. FTAI is sitting in the middle of it! More bullish than ever!
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Tropical Penguin retweeted
$FTAI Research Note Jones Trading Buy PT $600 FTAI | ~$22B Mkt Cap Net-Net: FTAI continues to execute on its transition to an asset-light model. SCI II funding de-risks AUM growth, supports recurring fee revenue, and reinforces the long-term thesis of a much larger aviation asset management platform. - Asset-light transformation accelerating: SCI II is expected to take FTAI more than halfway toward its $20B AUM target, shifting the business from aircraft leasing to higher-quality fee-based asset management. - Major capital raise for growth: Secured a $2B warehouse facility with a $1B accordion, providing up to $3B of acquisition capacity for SCI II. - SCI platform scaling rapidly: SCI I grew from an initial $3B target to ~$6B, and SCI II is targeting a similar $6B platform. - Higher-quality earnings profile: Growing AUM should drive recurring management fees, co-investment returns, and captive MRE (maintenance/repair/engine) demand. - Near-term revenue tradeoff, long-term value creation:Management is intentionally de-emphasizing lower-return balance-sheet leasing in favor of a scalable, higher-margin asset management model. Halfway to $20B Asset Management Franchise: Asset Light Model Transition Moving Ahead - Forest for the Trees Thoughts: As FTAI de-emphasizes the legacy leasing balance sheet-heavy business, there was a near-term impact to revenues. However, the trade for higher margin/value SCI asset fees long-term on a $20B (we believe much higher eventually) is a very attractive trade to make.
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