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Micro Opportunity Capital's avatar

We've followed this name for a few years--wondered if the short-sighted "green"/woke anti-NG policies of NYS would result in their demise. Encouraging to see growing realization that NG is probably the preferred option for booming energy demand, and may provide a fast onramp for DCs well before SMRs get off the drawing board. Great insights on this by Murray Stahl (pg 6.) re: co-location of DCs in the Permian. https://www.frmocorp.com/_content/letters/2024.pdf

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Rush's avatar

Thank you for the interesting idea and write up! Very compelling but I'll play devils advocate

a) Is there a risk that these guys are just trying to jump on the next fad? I see that they had previously positioned themselves as a cannabis play in 2021/2022 during the cannabis stock mania:

https://www.tecogen.com/news-events/press-releases/detail/405/tecogen-to-establish-new-business-unit-focused-on-indoor

What gives you confidence that this isn't more of the same?

b) What is the "moat" here? The stuff they are building is not rocket science so is there any opportunity for sustained pricing power and/or recurring revenues or will this get quickly competed away?

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