Update to Cliff Note #64 - New Data Center Growth + New Growth Inflection

Shareholder letter provides an abundance of information arbitrage.

This company has piqued our curiosity due to some verbiage within the company’s 2024 year-end shareholder letter, indicating that the company is about to enter a period of growth for the first time in several years, which appears to include tailwinds from the data center market. More importantly, this growth period is expected to last several years.

We first added the stock to our MS Microcap Quality Index (MSMqi) in 2023.

With a tiny enterprise value to sales multiple, we are extremely curious and are bringing this idea to the top of our priority, among the 121 stocks already in our MSMqi.

It’s also nice that, at the current price, shares offer some downside protection based on a healthy cash per share and tangible book value per share.

This instance is beginning to highlight the value of the MSMqi as a fantastic hunting ground as the years roll by, for serious investors.

For example, a few weeks ago (May 25), we did the same with WSTL, now up 149% from that update and up 228% from when we first added the stock to the MSMqi.

Without further delay, here is our update to our original Cliff Note #64, published in July 2023.