Insights: First overcome Amazon's cloud, then conquer the Cosmos

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May 8th, 2021

Real Vision is kicking off a new series featuring a theme of exponential change and opportunity in the years ahead. Raoul Pal gave us a taste of what to expect in an hour-long Daily Briefing Friday where he paid some special attention to carbon trading, alternative fuels, electric vehicles (EV), and of course blockchain. Networks and their related effects are the cryptocurrency building blocks of opportunity and Pal noted that the next blockchain kid on the block was just released.

Positioning for the age of exponential opportunity

On Friday, Dfinity released its network which it calls The Internet Computer (TIC). The mission is to foster adoption by challenging Amazon (AMZN)'s cloud computing business. TIC is a distinct blockchain that comes with its own hardware, a global network of 48 data centers at launch according to Mashable. As such, Dfinity claims to offer better security than running an application on the Amazon cloud as nobody can shut down your application except you. Dfinity also claims its system can execute smart contract functions in between a few milliseconds and about 2 seconds depending on the nature of the data calls involved. At first glance, it appears the costs for running an application on TIC depend on how complex it is and how many calls there are to the network.

Will TIC bring Amazon stock down to earth?

Ultimately, if TIC can provide more security at a cheaper cost than Amazon, it could be a game-changer. In terms of blockchain development, we will have to see if hardware-blind decentralized networks like Avalanche, Cardano, Polkadot, Solana, Zilliqa and, of course, Ethereum are too far ahead for it to catch up in the adoption race. While Dfinity's Chief Scientist Dominic Williams suggests TIC can improve Ethereum as opposed to displacing it, he believes his network's design will help application developers get past the need for blockchain hubs such as those offered by The Cosmos Network.

When it comes to EV, Pal sees the need to remake the entire global car fleet over the next 10 years or so. If he is right, investors may be too short-sighted selling automakers on the back of recent supply chain concerns. In fact, on Friday, we highlighted a combination contrarian and short squeeze opportunity in the auto space where Edward Kernaghan, our insider of the week, was buying.

Of course, hard assets are also part of the EV story. On Wednesday, we wrote about a relatively large junior copper miner that has been on a roll since it was first listed last year, while on Saturday in INK Chat we noted a much smaller junior copper-gold miner that had jumped up the INK Edge rankings.

If the exponential age starts to take hold over the next 5 years as Pal expects, it will likely be deflationary. First, we expect at least one year of vigorous inflation ahead of us. In a May 5th HoweStreet.com interview, we explain how over the next 12 to 18 months we expect oil & gas stocks along with industrial metals miners to initially benefit from inflationary forces, followed by precious metals and related miners.

Adidas footwear | Air Jordan


Top 3 Gainers Last Week

Company NameStock Symbol1 Week %
Hudbay MineralsHBM22.0
StelcoSTLC20.5
Turquoise HillTRQ18.6

Top 3 Losers Last Week

Company NameStock Symbol1 Week %
SunOptaSOY-9.1
EnerflexEFX-7.4
Enthusiast GamingEGLX-5.3

Returns are as of the last trading day of the previous week.

Featured Broadcast

Insider of the Week

Edward Kernaghan

As we wrote in our May 7th morning report, when we featured Exco Technologies (XTC) back on July 3, 2019, the stock was approaching a four-year bear market and Director Edward Kernaghan was buying. That turned out to be a profitable trade as the stock has advanced more than 25% since the report, outpacing the S&P/TSX Composite. The stock has pulled back from recent highs and Mr. Kernaghan is buying again.

INK Canadian Insider Index

1 Year Total Return Performance


Historical Performance

Annualized Total Return as of May 7, 2021 04:49 pm
1 Year 89.65%
3 Years 10.50%
5 Years 11.94%
10 Years 9.15%


To learn more about the Index please visit
https://index.inkresearch.com

5 Year Total Return Performance


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