New Ask Claude or ChatGPT about any stock, using Bullpen. Bullpen in Claude or ChatGPT. 7 days free
Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Tuesday, November 10, 2026

Back to the front page

From X

@kevin__mak

Kevin Mak on X

The post below dovetails into my view on "powered shells" or essentially the utility companies of the AI trade ($CORZ, $RIOT, $WULF, etc.) These companies largely (or entirely) own no GPUs. They lease a building with electricity/cooling/infrastructure to the hyperscalers/neoclouds/AI labs, who bring in their GPU racks/fiber and run their datacenters. They're the bottom ~$1 of the "per GPU hour" value chain. They're essentially real estate/utility company plays where they collect pre-specified rent for a very long time. As far as I can see, the only real downside that these companies face is that their tenants go bankrupt, AND nobody else takes over the lease/continues running the datacenter. In other words, datacenters "go dark" due to overbuilding. In my opinion, this is exceptionally unlikely. The cost of running these facilities is exceptionally small relative to the neocloud or "frontier model" pricing. If margins ever compress, it should come out of the "top of the stack" way before it comes out of anywhere else. In a world where there's an overbuild of datacenters, and datacenters are literally dark, it also means new ones aren't being built. That means GPUs and memory and all that infra are no longer being sold, because it's way easier to turn on a dark datacenter than it is to build a new one. If new datacenters aren't being built, most of the semi/hardware industry is also dead. These powered shells are occasionally trading below their contracted value, never mind adding the terminal value of their buildings and the option value of their expansion capacity. I think the reason why they're trading down so hard lately is because they're "correlated to the AI trade". But the mistake the market is making is that their operations are much less risky than the rest of the "AI trade" stack. The heroic assumption for current pricing isn't "industry grows at 50% yoy", or "margins stay >40%". It's just "datacenters don't go dark", which is a very low bar. I own $CORZ and $RIOT because I think you're getting pretty close to a free call option on AI growth. As long as these datacenters don't go dark, I think you make your money back plus a small/reasonable return (depending on your assumptions). If the AI sector grows and leases more power, renews leases, etc., then these companies will benefit. Disclosure: Creek Drive and its affiliated funds holds long positions in RIOT and CORZ. Views expressed are current opinions for information only, subject to change and are not investment advice or a recommendation to buy or sell any security. Investing involves the risk of loss and past performance is not indicative of future performance. See the disclosures link in my bio for more important information.
@ACapitalLP

A Capital on X

Still think the PSPs, particularly $CIFR / $CORZ, offer incredible asymmetry. A value investor’s dream: perception ≠ reality. The market is treating neocloud credit concerns like the underlying land and power have suddenly disappeared. $CIFR trades at a discount to its contracted business, with effectively nothing assigned to its multi GW pipeline. Even the Byrd Man still has a $27.50 PT after taking a machete to his assumptions. Regulatory risk is real, but are we pricing in an actual moratorium or just scary headlines…

Investor Letters

All letters

Seed Corn

Chiron’s failed $49 million Beaumont sale and $178 million Pinnacle acquisition leave XRN with $70 million of liquidity and medical-office…

XRN $372M
Orphan REITs 2 clicks

STRL: 80 new electricians a week

Sterling’s $4.1 billion backlog faces Texas permitting risk after a governor proposed a moratorium, while Connexion, Capital Asset Planning…

STRL $7.6B
Trade Ideas Flow 1 click

Diamond Estates: Research Note

Diamond Estates converts $4.7 million of Lassonde debentures at a 69% premium, cutting debt to $10.9 million and raising Lassonde ownership…

LSDAF $1.2B
Atrium Research - Equity Research 3 clicks

Vicor Update, Part Four

Vicor’s Federal Circuit hearing put Foxconn’s disputed patent license under pressure, reinforcing its AI server royalty model and licensing…

VICR $6.8B
CV's Substack 3 clicks

Floor & Decor 3Q26: Business Update

Floor & Decor’s 3Q26 sales rose 3% while comparable sales fell 1.4%; it cut 2027 openings to 10-15 as high mortgage rates pressure…

FND $5B
Speedwell Memos 1 click
NGVC · long

Natural Grocers Vitamin Ctge

Natural Grocers (NGVC) returned to $27.80 after a prior long entry at $21 and exit recommendation at $46.

NGVC $682M
Value Investors Club

GREAT DEC-TECTIVE WORK

Diversified Energy reported $255.6 million of “true” nine-month free cash flow, while its $1.8 billion Birch acquisition would shift…

DEC $900M
The Oak Bloke 4 clicks

Problems at Twist Bioscience (TWST)

Twist Bioscience’s $200 rebound followed an Anthropic-linked short squeeze, yet its DNA and protein services face broad competition while…

TWST $8B
Hunterbrook 4 clicks

VSH Earnings Review

Vishay reported record Q3 revenue of $979 million, up 24%, and guided Q4 to about $990 million as rising backlog and margins contrast with…

VSH $3.6B
Cestrian Capital Research 3 clicks

Publications we follow

Every publication on this site, hand-picked.

129 publications

Newsletters 109

YouTube 4

Blogs 15

Seeking Alpha 77 of 281

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

91 accounts
Nominate an account

Investor letters we follow

360 firms

Sectors

Ordered by how often our editor reaches for them.