1. The tech industry is far too fragmented, with many businesses built on unsustainable foundations. Companies have relied on generating revenues, but no cash flow, spending excessively on SBC, sales & marketing all in the pursuit of "winner takes all".
Markets, like natgas, where the commodity is "just in time" consumed usually exhibit backwardation. There is a plausible theory for why con tango must be rare in such markets.
The argument goes like this: owning reserves is like having an option on natgas, where the strike price of the option is the total cost of extraction and the payoff at expiry is the then spot price.
If natgas were in contango, E&Ps would have no incentive to extract . . .
