Inference Of Data Center Solutions, Along With Industry Recovering From Bottom, Improving Gross Margins and Operating Leverage Signaling Growth Inflection Point

Cliff Note #106 - Attempting To Schedule A Site Visit Next Week

The best way to start out this cliff note and to convey the essence of how we feel about this potentially bullish setup is by referencing our valuation section up front and center. We think it will give you some good perspective as you read through the entire cliff note.

You’ll find that It’s not a very complicated story.

Acknowledging that the company operates in a boring and commoditized industry, we are particularly drawn to the company’s operating leverage, exposure to the data center market, and potentially strengthening competitive positioning based on bold decisions by management not to cut labor staff during industry pressures over the last 18 months. This was done with the knowledge that it takes time to ramp up and train labor to service new projects. This should put the company in a position to bid for projects and win bids, now that industry conditions are improving. It’s actually quite the chess move.

We still have at least 16 research tasks to complete to gain a full understanding of the growth and risks associated with the stock, but we wanted to get this cliff note out to you, since we believe some near-term catalysts are present that could surprise investors, such as the data center angle and a big jump in quarterly EPS to well beyond the pennies it reported in its recently reported Q4 report.

This is a good moment to remind you that when making decisions to add stocks to your portfolio, the question is not necessarily yes or no. It is often about position sizing. The stock does not necessarily rank super high on our conviction scale… yet …, but we think it deserves to be in the MSMqi. What follows below is the Valuation Section Excerpt that puts the story into perspective, followed by the entire Cliff Note…