Investment Pitches

Pitch Summary:
MSCI Inc. is poised for growth due to its strong position in the passive investing trend, with its indices being highly valued globally. Despite recent underperformance relative to the S&P 500, the company's fundamentals remain robust, and its business model is designed to capitalize on long-term market growth.

BSD Analysis:
MSCI's core business, particularly its Index segment, is a significant revenue driver, benefiting from the global shift towards passive investing. The company's scalable business model, characterized by high operating leverage and low capital expenditure, supports its profitability. With a consistent dividend growth history and a strategic focus on expanding its investor base, MSCI is well-positioned for future growth. The current market undervaluation presents a buying opportunity, with a potential upside of 31% based on a target price of $724 per share. While not involved in the AI trend, MSCI's stable cash flows and market resilience make it a compelling investment for long-term growth.

Pitch Summary:
Altria is undervalued, with a strong defensive position in the market, resilient earnings growth, and robust shareholder returns. Despite regulatory challenges and declining cigarette volumes, the company's strategic pricing and growth in smoke-free products support a Buy rating.

BSD Analysis:
Altria's financial performance in Q2 2025 demonstrates its resilience, with an 8.3% increase in adjusted diluted EPS and a significant improvement in free cash flow. The company's strategic focus on pricing and margin improvements has offset declines in cigarette volumes. Altria's oral tobacco segment, particularly the on! nicotine pouches, shows promising growth, contributing to the company's overall stability. Despite challenges with its NJOY brand, Altria's core business remains strong, supported by a conservative valuation that suggests upside potential. The company's robust dividend yield and buyback program further enhance its appeal as a defensive investment during market volatility.

Pitch Summary:
Shoper is a leading e-commerce platform in Poland, offering a robust SaaS model with a wide range of services that cater to the needs of online merchants. Despite its strong local presence and high gross margins, the company's growth prospects are limited by its geographic concentration and high valuation, leading to a 'HOLD' recommendation.

BSD Analysis:
Shoper has demonstrated impressive revenue growth with a 3-year CAGR of 32%, driven by its comprehensive e-commerce solutions and strong local market presence. The company's recent acquisitions, such as Sempire and Selium, enhance its service offerings and value proposition. However, the recent board changes introduce uncertainty regarding future strategic direction. Shoper's high gross margin of 76.3% indicates strong pricing power, but its reliance on the Polish market poses a risk if international competitors like Shopify decide to aggressively enter the market. The company's valuation appears high relative to its growth prospects, suggesting limited upside potential. While Shoper's business model exhibits monopolistic traits, its geographic concentration and competitive threats warrant caution.

Pitch Summary:
Kaspi.kz is a highly profitable digital payments and e-commerce company with strong growth metrics, trading at a low valuation multiple. It dominates the Kazakhstan market and is expanding into Turkey, offering a compelling investment opportunity.

BSD Analysis:
Kaspi.kz operates as the financial backbone of Kazakhstan, providing a comprehensive suite of services through its consumer and merchant platforms. The company benefits from high engagement, with consumers using the app frequently for various financial transactions. Its interconnected business model, comprising payments, marketplace, and fintech, creates a robust ecosystem that drives profitability and growth. The management's decision to reinvest earnings into expansion rather than distribute dividends demonstrates a long-term growth strategy. Despite its strong financial performance and strategic expansion into a larger market, the stock is undervalued, presenting a significant investment opportunity.

Pitch Summary:
Sisu Investments has acquired a 13.6% stake in Wilmington Capital, which is essentially a cash shell with some smaller holdings remaining.

BSD Analysis:
The acquisition of a significant stake in Wilmington Capital by Sisu Investments suggests potential strategic interest or a belief in the company's underlying value. As a cash shell, Wilmington Capital has limited operations, which could make it an attractive target for restructuring or new investment initiatives. The presence of a large shareholder like Sisu Investments may lead to changes in strategy or capital allocation. Investors should consider the implications of this stake acquisition and any subsequent actions by Sisu Investments. The company's future direction will likely depend on the strategic decisions made by its major shareholders.

Pitch Summary:
Founder and largest shareholder of Zefiro Methane is steadily purchasing shares, indicating potential dissatisfaction with the current board and a push for changes.

BSD Analysis:
The ongoing share purchases by Zefiro Methane's founder and largest shareholder, Mr. Debs, highlight potential internal conflicts and a desire for board changes. This activity suggests that Mr. Debs sees value in the company and is willing to take action to unlock it. The company's focus on methane capture aligns with growing environmental concerns and regulatory pressures, which could provide long-term growth opportunities. However, the internal dynamics and potential board changes introduce uncertainty. Investors should monitor developments closely, as any changes in leadership or strategy could significantly impact the company's direction.

Pitch Summary:
Genius Group has seen significant insider buying, including the CEO's purchase of 500,000 shares, amidst a volatile and chaotic business environment.

BSD Analysis:
The substantial insider buying at Genius Group, particularly by the CEO, suggests a belief in the company's potential despite its current volatility and chaos. The company's diversification into Bitcoin treasury management adds a layer of complexity and risk, which may appeal to investors seeking high-risk, high-reward opportunities. The current share price of $0.90, slightly below the CEO's purchase price, indicates potential undervaluation. However, the company's multifaceted operations and market conditions should be carefully evaluated. Investors should watch for any strategic shifts or announcements that could impact the company's trajectory.

Pitch Summary:
Insiders at FactSet have started buying shares on the open market for the first time in years, indicating potential confidence in the company's future despite current challenges.

BSD Analysis:
The recent insider purchases at FactSet suggest that those closest to the company see value at current price levels, despite a challenging year marked by slowing growth and a muted outlook. FactSet remains a solidly profitable and cash-generating company, which provides a cushion during tough times. Investors should consider the implications of insider buying as a potential signal of undervaluation or future strategic initiatives. However, the broader market conditions and FactSet's growth trajectory should also be taken into account. Monitoring the company's performance and any strategic announcements will be crucial for assessing its investment potential.

Pitch Summary:
American Outdoor Brands announced a $10 million buyback, representing approximately 11% of its market cap, amidst a challenging year for the company.

BSD Analysis:
American Outdoor Brands' decision to initiate a $10 million buyback reflects management's confidence in the company's long-term prospects despite a tough year. The buyback represents a significant portion of the company's market cap, which could provide support to the share price. However, the company's challenges, including a declining share price, suggest that investors should remain cautious. Engine Capital's increasing vocal presence, with a 5.2% stake, indicates potential activist involvement, which could lead to strategic changes. Investors should monitor any developments regarding the buyback's impact and potential activist actions.

Pitch Summary:
Lennar is spinning off its mortgage finance division, Melrose, which could create unique trading opportunities due to the valuation differences between the two entities.

BSD Analysis:
Lennar's decision to spin off its mortgage finance division, Melrose, is expected to create distinct trading dynamics due to the differing valuations of home construction and mortgage finance businesses. The spin-off, effective February 7, 2025, could lead to a revaluation of both Lennar and Melrose. The recent announcement of an offer to exchange Lennar's 20% stake in Melrose for Lennar shares at a 6% discount adds another layer of complexity and opportunity for investors. The expiration of this offer on November 7 provides a timeline for potential strategic moves. Investors should consider the implications of the spin-off and exchange offer on Lennar's overall valuation and market positioning.

Pitch Summary:
enX Group is actively reviewing and selling parts of its operations to maximize shareholder value, having already returned significant capital to shareholders this year.

BSD Analysis:
enX Group's strategy of reviewing and selling parts of its operations is aimed at maximizing shareholder value. The company has already returned R285 per share to investors, and its shares have risen approximately 60% over the past year, adjusted for these returns. This indicates a positive market response to its restructuring efforts. With a clean balance sheet, enX is well-positioned to continue its review process and potentially unlock further value. Investors should keep an eye on future announcements regarding additional sales or strategic moves. The company's proactive approach to value maximization makes it an interesting opportunity in the industrial sector.

Pitch Summary:
Neogen is undergoing a strategic review to sell non-core assets and has implemented a cost-cutting strategy, including a 10% workforce reduction, which could improve its financial position post-merger.

BSD Analysis:
Neogen's strategic review and asset sales are part of its efforts to streamline operations after a significant merger that increased leverage. The company's decision to cut 10% of its workforce is a move to reduce costs and improve profitability. The market has responded positively to these cost-cutting measures, as evidenced by share price spikes. As Neogen continues to divest non-core assets, it could unlock value and strengthen its balance sheet. Investors should monitor further announcements regarding asset sales and their impact on the company's financial health. The ongoing strategic review presents a potential opportunity for value creation.

Pitch Summary:
Talenom is considering a spin-off of its Easor software business, which could unlock value as the two units are valued at different multiples.

BSD Analysis:
The strategic review and potential spin-off of Talenom's Easor software business could lead to a revaluation of the company, as the market often values software and accounting businesses differently. Currently, the combined entity trades at 7x EV/EBITDA, which may not reflect the true value of each segment. The upcoming 9M update, with insights from both the Accounting and Software business heads, could provide further clarity on the spin-off and its potential impact. Investors should watch for any announcements regarding the separation timeline and expected financial outcomes. The spin-off, planned for H1 2026, could be a catalyst for re-rating the stock.

Pitch Summary:
@secretlyaninja argues that $NCDL offers a compelling risk-reward profile due to its unusually strong credit performance relative to other major BDCs such as ARCC, FSK, OBDC, and NMFC. The author notes that the loan book is over 90% first-lien, giving higher recovery potential and reducing NAV impairment risk even under a recessionary scenario. They highlight low default rates, low PIK usage, and a conservative assumption framework that still leaves a meaningful margin of safety versus the current NAV discount of ~26%. Interest-rate sensitivity is acknowledged, but the author believes earnings remain attractive even under a 100 bps Fed cut. Relative valuation versus peers suggests the NAV discount should compress into the low-teens, implying fair value around $15.50–$16.50 per share. Catalysts include continued credit stability, improved sector sentiment, and potential for aggressive share buybacks following upcoming earnings.

BSD Analysis:
NCDL operates within the BDC sector, where portfolio composition and underwriting discipline drive most valuation dispersion. A portfolio weighted heavily toward first-lien exposure typically exhibits lower loss severity, and the company’s low historical default levels support the argument of tighter risk controls relative to peers. Sector-wide concerns in 2025 centered on potential private-credit stress, yet reported results from several large BDCs indicate only modest deterioration in non-accrual activity. The discount to NAV appears larger than typical ranges for predominantly first-lien portfolios, which may reflect investor caution around interest-rate exposure, liquidity, or the company’s shorter public track record. NII sensitivity to rate cuts is a relevant variable, though modeled outcomes still leave earnings yields above prevailing short-term rates. Share repurchase activity could accelerate NAV accretion if executed at current discounts. Overall, the key determinant of rerating is the durability of portfolio credit performance over the next several quarters.

Actual Post Content:
Even if I assume $NCDL has all loans marked at par, I'm buying at 87. In a recession, maybe we get 10% cumulative payment defaults (ignoring tech. defaults & m2m losses). @ 50% default recovery (conservative given >90% 1st lien), hit to NAV is 5%. My cushion is 13%. Worth noting that $NCDL's current default rate is only 0.4% (cost basis). Compare that to high profile BDCs: $ARCC's default rate is 2.8%, $FSK 5.3%, $OBDC 1.6%. $NCDL's credit performance has been far better than nearly all BDCs. And $NCDL's superior credit perf is not due to extend-n-pretend typical of some BDCs. The way to tell is high PIK income. When BDCs do E2P, troubled loan is usually converted to PIK. But $NCDL's PIK as % of NII is low @ 10% (ARCC 14%, FSK 31%, OBDC 14%). Next, interest rate risk. $NCDL, like all BDCs, own floating rate debt so is exposed to Fed rate cuts. Its NII is $1.84/sh annualized so earnings yield is 13.9% at my cost. Last 10Q disclosed that -100 bps rate cut would lower NII by $3.8 MM. That would take $NCDL's annual NII from $1.84 now to $1.52. That's still 11.4% yield which is not bad in a world where ST rates are scraping 3%. And that assumes 100 bps Fed cut (which is where Fed Fund futures are). If inflation is persistent, maybe less cuts & higher yield? So where should $NCDL trade? Current price doesn't make sense vs comps. Its port is 90% 1st lien and NAV discount is 26%. If investors are concerned about credit losses, 1st lien port should trade better. Yet $ARCC's 1st lien is only 59% yet NAV discount is paltry 5%. $OBDC port is 77% 1st lien and NAV discount is 25%. $NMFC 1st lien is 65% and NAV discount is 27%. And all of these comps have defaults and PIK exposure that's materially higher than $NCDL. Based on comps, $NCDL current NAV discount should be 10-15% maybe (so trade @ ~$15.50/sh). Mid-term fundamental price target is between $16-16.5. My caveman math says $NCDL loses 5% of NAV from realized credit losses (ignoring m2m losses) over next 12 months. And it should trade MSD discount to that lowered NAV. Current NAV is $17.92 so that takes me to ~$16.20. The obvious catalyst is credit performance over next 12 months. If no worse than 10% default/50% recovery, then $NCDL should trade higher. Another is stock BB. Stock BB was $63 MM in 1H when stock was trading much higher. I expect mgmt to do aggressive BB post 3Q earnings. $OBDC CEO pushing back hard against narrative that BDCs are in trouble. He notes that both First Brands and Tricolor were credit losses for liquid markets, not private credit. 3Q earnings from $NCDL and other BDCs to shift narrative. Also, bigly stock BBs. $ARCC, BDC bellwether, reported decent 3Q results. NAV increased +0.6% qoq to $20.01 & defaults ticked down from 2.0% to 1.8% (cost). This is far from a priv cap disaster investors were pricing in ~3 weeks ago. $NCDL (& BDC) recovery continues. So far, I bottom ticked it. 🤞 $NCDL reported decent 3Q results. NII ticked down to $0.43/sh (from $0.46) due to lower interest rates as expected. NAV $17.85 (vs $17.92) and non-accrual 0.9% (vs 0.4%). Modest credit issues doesn't deserve 20% discount to NAV. Stock +10% since my purchase with more to go.

URL: https://x.com/secretlyaninja/status/1977566636543758722

Pitch Summary:
@stock_logging pitches Embention (MLUAV.PA) as a “pick-and-shovel” play on the drone and eVTOL industry, thanks to its comprehensive product stack (autopilots, avionics, motor controllers, control stations, tracking, etc.) and broad customer base including major defense and commercial players. The author highlights Embention’s strong historical growth (50% 3-year revenue CAGR), high margins (92% gross margin, 40% operating margin, 55% ROCE), and its position as a supplier to Amazon’s Prime Air drone-delivery program. Key catalysts: recent regulatory/production certifications (POA by Spain’s AESA; APDOA by EASA) that could speed up drone/eVTOL certification, and a potential near-term trigger if Amazon exercise acquisition rights or order volume expands. The pitch assumes low liquidity (≈ €1,300/day trading volume) but views Embention as under-appreciated given its growth potential in civil and defense drone markets.

BSD Analysis:
Embention operates in a high-growth, high-potential niche — drone/autonomous-aircraft systems — where regulatory certification and safety standards are major entry barriers. Its dual civil and defense focus gives optionality: civil drones/eVTOL offer growth if adoption scales, while defense UAVs can provide steady long-term contracts. The recent POA and APDOA certifications (which appear credible per company and market-data sites) significantly increase the likelihood that Embention’s autopilots can be deployed broadly and perhaps pre-certified for integration — a substantial competitive advantage in a sector where certification is slow and costly. However, the company is still small (market cap ≈ €236 m), illiquid, and its high margin claims and growth rates may be vulnerable to execution risk, regulatory delays, or slower-than-expected drone adoption. Valuation multiples (30× P/E LTM per author) seem aggressive for a small cap in a nascent industry; downside remains if its large defence / commercial customers (e.g., Amazon) don’t scale orders. The bull case is plausible but speculative, and substantial value depends on growth execution and broader demand for drones/eVTOLs.

Actual Post Content:
MLUAV.PA The most illiquid stock I've ever bought. Pick-and-shovel play for the drone industry. ➢ 143m EUR mcap ➢ 50% 3Y Rev. CAGR ➢ 92% GM, 40% OM, 55% ROCE ➢ 30x P/E LTM ➢ Supplier for $AMZN drone program ⚠️ ≈ 1,300 EUR trading volume/day!! 📌Quick pitch below 🧵 ➢ The Spanish company Embention was founded in 2007 by David Benavante. Benavante is an aviation & aerospace engineer and computer scientist, and as CEO he holds around 64% of the outstanding shares. The company’s stock is listed on the Euronext in France in the Access segment. ➢ Embention’s flagship products are autopilots for drones (for both civilian and military purposes) as well as eVTOLs (electric Vertical Take-off and Landing aircraft capable of carrying passengers). The hardware modules, known as Veronte, enable the aircraft to process sensor data and derive flight control commands from it, allowing them to perform semi-autonomous or even fully autonomous flights. Autopilots are essentially the brain of the aircraft. The software for Veronte is developed in-house by Embention to ensure full compliance with all regulatory requirements. ➢ In addition, Embention offers a range of other drone components, including: ▪️ Avionics – supplementary devices that either deliver data to the autopilot (e.g., sensors) or transmit its commands to the hardware (e.g., communication modules). ▪️ Motor Control Systems – regulate the speed, power, coordination, and monitoring of the motors. ▪️ Control Stations – ground-based communication systems from which pilots or operators can plan, monitor, and control missions. ▪️ Tracking Systems – antennas that align in real time with the aircraft to transmit data. ➢ Additional revenue source: service offerings such as training and certification for operating drones and eVTOLs. ➢ In my view, Embention’s greatest competitive advantage lies in the numerous certifications the company has obtained over the years. ▪️ The company complies with many so-called DO standards, which are key process standards in the aerospace industry, covering areas such as software, hardware, and environmental and reliability testing. In addition, it meets several quality management standards, including ISO 9001 and EN 9100. ▪️ The company achieved very important additional milestones in the summer of 2025. - On the one hand, it obtained a POA (Production Organisation Approval) from the Spanish aviation authority AESA, meaning formal manufacturing approval in accordance with aerospace quality standards. - On the other hand, it received an APDOA (Alternative Procedures to Design Organisation Approval) from the European Union Aviation Safety Agency (EASA). This allows Embention to independently design and certify its autopilots under EASA supervision. With these two certifications, Embention became the first drone autopilot company in Europe ever to achieve them. ➢ These achievements bring the company much closer to its major goal: obtaining the ETSO-C198 approval. Up to now, whenever an autopilot is integrated into a drone or eVTOL, it has had to be validated again within the overall system. With ETSO certification, following manned aviation standards, Embention could sell its autopilots as ready-made, off-the-shelf components. Only the correct installation would then need to be demonstrated. ➢ This would drastically accelerate the certification process for new aircraft and could represent a massive growth driver for Embention. The ETSO certification process has been actively underway since mid-2024. ➢ While the ETSO focuses primarily on civil applications, Embention is also engaging in the European defense sector through its participation in the ACTUS project (Advanced Capabilities & Certification for Tactical UAV Systems), which aims to establish a similar certification framework for military UAVs. ➢ Embention’s (MLUAV.PA) client list is impressive: among its 600+ customers worldwide are $AMZN Amazon, $RHM $RHM.DE Rheinmetall, $BA.L BAE Systems, $AIR.DE Airbus, the state-owned Israeli defense company IAI, and many others. ➢ Particularly noteworthy is Embention’s strategic partnership with Amazon. The company is a key supplier for Amazon’s Prime Air drone program. Amazon has even secured an option to acquire up to 27% of Embention’s shares if order volumes exceed €30 million. The initial commitment amounts to €17 million over a three-year period, starting in 2024. ➢ Amazon has set an ambitious goal of delivering 500 million packages per year by drone by 2030. However, it should be noted that this target appears unlikely to be achieved, as the company has recently faced several setbacks, one in January 2025 and another in early October 2025.

URL: https://x.com/stock_logging/status/1977407823740010869

Pitch Summary:
SiTime Corporation designs MEMS timing chips such as oscillators and resonators for electronic components. It is the dominant market leader for MEMS timing chips, which are rapidly displacing quartz-based systems in high-performance processors. The fund initiated the position in June and continued buying in July during share price weakness, expecting accelerating sales momentum from new design wins. Subsequently, SiTime reported better-than-expected revenues and earnings that supported the thesis. Later in the quarter, as SiTime’s price increased by 39%, the position was trimmed.

BSD Analysis:
SiTime is a pure-play MEMS timing leader positioned to take share from legacy quartz as precision, reliability, and temperature stability become mission-critical in AI, cloud, and automotive. Margins are strong, technology leadership is deep, and the product portfolio expands with every generation. Cycle softness hit hard, but underlying design-win momentum is building again. Investors still treat SITM like a quirky niche vendor — wrong. Timing is becoming a strategic bottleneck in high-performance systems. SiTime is uniquely positioned to dominate. A high-quality semiconductor timing play with leverage to AI infrastructure.

Pitch Summary:
Kratos Defense & Security, the U.S. defense company producing unmanned systems and satellite communications, announced a new partnership with the German air force for its Valkyrie collaborative combat aircraft (CCA) and later noted that the Valkyrie CCA would become the program of record for the U.S. Marines. In its subsequent earnings report, Kratos’s revenues, margins, and earnings all exceeded expectations with better-than-expected growth across all segments. Management noted several new high-probability wins at the end of its fiscal quarter, which should continue Kratos’s sales momentum. In the near term, its shares gained 95% and the fund trimmed on that strength.

BSD Analysis:
Kratos is a high-conviction defense-tech story with leadership in unmanned aerial systems, satellite communications, and tactical drones. It operates where legacy primes move too slowly, winning contracts in emerging warfare domains. Margins are expanding, backlog is growing, and the new drone programs could be transformational. KTOS is volatile because it swings between prototype wins and production ramps — but the trajectory is up. The Pentagon’s shift toward lower-cost autonomous systems plays directly into Kratos’ strengths. High-beta defense innovation with real upside. A prime contractor in the making.

Pitch Summary:
We continued to build our position in Ultra Clean Holdings, adding on price weakness early in the quarter. UCTT is a $1.2 billion market cap supplier for the semiconductor capital equipment industry, focusing on gas delivery systems. It also provides cleaning services for installed equipment. Lam Research is UCTT’s largest customer at 33% of revenues, Applied Materials is number two at 23% while service makes up 12% of revenues. UCTT shares ended the quarter at $27.29, well below their 52-week high of $41.84, due to the continued weak semi capital equipment (capx) spending environment in 1H25, which was likely impacted by the global investment pause caused by the ‘Liberation Day’ tariffs.
We see a compelling investment outlook for UCTT as we think the semi-capx cycle has begun to inflect positively, while street revenue and earnings estimates have yet to discount this expected improvement. We believe UCTT will be able to retain and potentially improve its strong financial profile over the balance of 2025 and into 2026 even as it continues to invest in new products and capacity. On September 15th, UCTT revamped its term loan facility with Barclays to reduce the variable interest rate spread over SOFR by 50 basis points. This reduction, combined with the 25 bps Fed funds cut on Sept. 17th reduces UCTT’s borrowing costs by 75 bps for 4Q25 forward, before any additional potential Fed easing. As of 2Q25, UCTT’s gross debt was $478.4 million, offset by $327.4 million in cash, for a net debt/EBITDA ratio of approximately 1x.
We see three potential earnings growth drivers for UCTT now, including secular growth of the logic and foundry space, a nascent cyclical recovery in semi-conductor capx spending and a strong self-help program of capacity re-alignment that should drive margin growth irrespective of any potential revenue improvement. We believe theme of advanced semiconductor capabilities is well understood by investors and UCTT plays into this theme by offering foundry applications including packaging and GAA (Gate-All-Around) to support AI. We think UCTT will continue to grow in this area as it invests in new products. Its 2Q25 announcement of new a new business win in its Czech facility for a new product is a positive catalyst. Also, Lam Research has indicated it is increasingly looking to qualify suppliers for progressively more technical specifications.
We believe the cyclical recovery potential of UCTT has not been recognized by investors. Since peaking in 2022 at $2.37 billion, UCTT’s revenues have fallen to an expected $2.05 billion in 2025 (down 15%), as logic and memory demand has been soft. UCTT’s gross margins have fallen over 300 basis points, from 19.2% to an estimated 16.1%, over the same period. This softness has seen shares of UCTT fall from $65.33 in 2021 to $27.29 at the end of 3Q25. We believe the strongest investment returns in cyclical investing are made when a downcycle first inflects positively, in hopes of starting a cyclical upswing. In this sense, we note in its most recent slide-deck update, UCTT states that “inventories are stabilizing” and that a “cyclic recovery across end markets [is] continuing.” On its 2Q25 call Lam Research also indicated that “we see a little bit stronger” with WFE estimates now raised to $105 billion for 2025, up from $100 billion. While we are not expecting an overnight recovery, we do see the strong potential for a cyclical recovery to benefit UCTT over the next few years that should allow UCTT to reaccelerate its revenues and margins, and we see time as our investment ally while we await this acceleration.

BSD Analysis:
Ultra Clean rides directly on semiconductor-capex cycles, and AI-driven wafer equipment demand is breathing new life into the story. Margins are recovering as utilization improves, and UCTT’s positioning in subsystems makes it a critical supplier for leading equipment OEMs. Execution has tightened after a messy couple of years. The balance sheet is manageable and improving. Semicap cyclicality will always add volatility, but structural AI/advanced-node demand strengthens the medium-term outlook. Investors undervalue how essential UCTT is in the supply chain. A levered but attractive way to play the semicap upcycle.

Pitch Summary:
Kyndryl was our weakest performer in 3Q25, down 28.43%, as its FY1Q26 report showed that its revenues came in a bit below street expectations. We think the decline is an overreaction, as Kyndryl reiterated that it still expects to post positive revenue growth for Fiscal 2026, and to deliver sustained growth over at least the next several years. We maintain our optimism on KD and see opportunity in the shares at current levels.

BSD Analysis:
Kyndryl has pulled off one of the most unlikely post-spin transformations, shifting from “IBM’s legacy IT corpse” to a leaner, higher-margin infrastructure services provider. Strategic alliances with hyperscalers are finally translating into revenue growth. The turnaround isn’t complete, but the trajectory is unmistakably up. Cost discipline is strong, and the contract mix is shifting toward higher-value modernization work. The market still treats Kyndryl like a melting ice cube, not a stabilization story with operating leverage. If growth continues, this becomes a genuine rerating candidate. A surprisingly credible recovery in old-school IT services.

Pitch Summary:
Varex Imaging was our top 3Q25 performer, posting a return of 43.02%. Its share price recovered from its “Liberation Day” sell off as the investors recognized the tariff impact on VREX should not be as bad as feared. VREX’s China business predominantly serves only China, and the market there for VREX has improved. VREX also has significant flexibility to move production globally to offset the worst impacts of tariffs. We continue to think VREX is undervalued and neglected, as analysts have not recognized the healthcare CT market recovery and the growing strength of its security screening offerings.

BSD Analysis:
Varex is a pure-play x-ray imaging component supplier with deep OEM relationships and a defensible position in detectors and tubes. The business is cyclical, but margins are expanding as supply-chain pressures ease and mix tilts toward higher-value digital components. Healthcare demand is sticky, and industrial NDT markets add incremental torque. Varex is not a flashy med-tech name, but its installed base gives it long-duration revenue stability. The stock trades at a discount as if growth is structurally capped — it isn’t. Execution has tightened, and cash flow is improving. A quiet imaging infrastructure play with more upside than its valuation implies.