Mailbag: “Working on a Dinosaur”

[Wide Moat Daily]( Mailbag: “Working on a Dinosaur” By Brad Thomas, Editor, Wide Moat Daily Today, we’ll share some feedback, questions, and comments from our readers. If you recently submitted a question, read on. And if you’d like me to tackle a question in a future mailbag edition, please write to me [right here](mailto:feedback@widemoatresearch.com). First up… Building a Better Carwash Carwashes. The same is true for Wichita, Kansas. As recently as maybe four years ago, we had a couple of major carwashes. Now we have three carwash chains that have come to town. Many are within a mile and a half or two miles of each other. I have been scratching my head over it too. Cheers! -Harry C. I agree with Brad about carwashes. We have several great carwashes here in Fishers, Indiana. They are well-run and do a great job. However, with the cost of living taking a big bite out of discretionary income, I believe that spending $8 or more on a carwash is going to be a discretionary expenditure that can relatively easily be deferred or eliminated altogether. We may not have too many carwashes yet, but the argument that the properties are not easily converted to other uses is a good one. Thanks for the insights, Brad. -Jim S. How about a carwash where you pull in, place your coffee/food order, and when you get through the car wash to the other side, you get your completed coffee/food order and head on your way. Give your customers improved efficiency. Maybe even cross-train employees between coffee and car wash operations for dynamic demand adjustment. Have the carwash lane and another drive-thru lane for coffee sans car wash and prioritize getting the carwash orders done before the driver is ready to exit. -John W. Thanks to all the readers who wrote in. I’ll admit, I wasn’t sure what sort of reception the [humble carwash industry]( would get. But I found it interesting, and I’m glad readers did as well. Jim, you have a veritable bargain on carwashes up your way. I regularly travel to South Florida, and it’s not uncommon to see full-service washes priced between $50 and $100. I’d agree with you. That is most certainly a discretionary purchase, and one that might get cut quickly in an economic downturn. John, if you’re the type of businessman who would be willing to build a better carwash, I wish you Godspeed. In some ways, your idea isn’t too dissimilar from the evolution of movie theaters. They’ve had to add new amenities (reclining seats, full-service dining, etc.) to attract customers. But my concern with carwashes – and movie theaters for that matter – is that once a carwash is built, it’s really only good for one thing… being a carwash. That’s not good for resale value, and it can be a headache for property owners in the event they need to sell. Thanks again to all the subscribers who wrote it. Working on a Dinosaur Brad - Interesting post. Your insight on data center and AI-driven power needs was greatly appreciated! I worked inside the nuclear industry all my career – first in the navy nuclear program and then spent even more time in the commercial nuclear power segment. I have to admit that for many years I thought I was working on a dinosaur, but I always "kept the faith" and talked up the benefits of nuclear power throughout those times. I worked through all the events you talked about, and one thing you could count on was "lessons learned." I sincerely doubt that a "Three Mile Island or Fukushima-type" event would ever happen again because of all of those lessons; and believe me, they have been learned. I could go on for a very lengthy discussion, but I won't. God Bless! -Barry S. Barry, thanks for writing in. And on behalf of all of us, thanks for keeping the faith, as you put it. I think your patience might finally be paying off. For any readers that missed it, on Wednesday we discussed the remarkable demand for new energy coming from data centers and other AI initiatives. My analyst Nick Ward followed up with several more insights on Friday (Catch up [here]( and [here](. I didn’t include it in my original write-up, but there was an interesting chart from Pew Research that demonstrates the remarkable change in the public’s perception of nuclear energy. Here it is: An outright majority of Americans now favor more nuclear power, understandably so. It really is the best option for clean, reliable, baseload power available to us right now. And the market is certainly taking note. As Nick pointed out on Friday, the top-performing S&P 500 stock this year is now Vistra (VST), a power generation company with a strong nuclear profile. It’s up about 200% since January as I write. Constellation Energy (CEG) is also performing well, up about 122% on the year. CEG is the owner of the Three Mile Island plant, which is set to restart in order to provide energy for Microsoft. It’s a compelling thesis. The insatiable demand for more energy and a renewed enthusiasm for nuclear has me excited for this industry in the years ahead. As always, we’ll continue to follow this story for readers. Win City Hello Brad, Just wanted to say thank you for the article on why you're betting on Vegas to have sustained growth. I'm researching the area's residential real estate market for a client, and your article (along with your piece from May) put the city's current market into perspective for me. Since you were just there, do you have any recommendations on Las Vegas residential developments to keep an eye on? P.S. Letting my clients know about the Stansberry Conference; they will be interested in attending. Kind regards, -Kaden R. Kaden, thanks for being a reader. And thanks for giving me the opportunity to talk about one of my favorite subjects, the city of Las Vegas. I love the city itself (who doesn’t?). But as a developer, I’m simply in awe of what that town has accomplished over the years. As I [shared back in May]( the city has transformed from a mostly seedy, mostly gaudy spectacle into a world-class destination of luxury, hospitality, and gaming. And based on everything I’ve seen, people can’t get enough. In the first six months of this year, international flights into Las Vegas were up 20.4% over 2023’s first half. Back in June, the Nevada Gaming Control Board reported that for fiscal year (FY) 2024 (July 1, 2023 through June 30, 2024) gaming revenue for Las Vegas was $9.1 billion, a 6% increase for FY 2023. Hospitality is also booming. Wynn Resorts (WYNN) announced in their most recent earnings that revenue from hotel rooms was $205.8 million, up from $177 million during the same quarter last year. I’ve said it before, but this really is “Win City.” As for your question on residential developments… I don’t have anything specific at the moment. Most of my time has been spent researching the casinos and resorts in the town. But I plan to do all the homework I can until I speak at the conference in October. If you happen to attend, come say hello and perhaps we can chat more. Thanks again to all the readers who sent in feedback. And if you have a question for a future edition, feel free to [send it here](mailto:feedback@widemoatresearch.com). Regards, Brad Thomas Editor, Wide Moat Daily [Wide Moat Research]( Wide Moat Research 1125 N Charles St, Baltimore, MD 21201 [www.widemoatresearch.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. 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