Investment Pitches

Pitch Summary:
Vornado Realty Trust (VNO) offers an attractive investment opportunity through its preferred shares, which are trading at a significant discount to par. The company has a strong presence in New York City, owning and operating a substantial portfolio of office, retail, and residential properties. VNO's liquidity position is robust, with $2.5 billion available, and its recent bond issuance at a competitive rate highlights its financial stability. The preferred shares provide a steady yield of up to 7.5%, with potential for significant upside as they trade below par. VNO's improving occupancy rates and strategic financial management make it a compelling choice for income-focused investors.

BSD Analysis:
Vornado Realty Trust's preferred shares present a low-risk investment with high yield potential, making them an appealing option in the current market environment. The company's strategic focus on maintaining liquidity and managing debt effectively positions it to navigate economic uncertainties. VNO's recent bond issuance at a favorable rate underscores its creditworthiness and ability to secure financing. With occupancy rates expected to improve, the company's cash flow is likely to strengthen, supporting its ability to meet preferred dividend obligations. Investors seeking stable income with potential for capital appreciation should consider VNO's preferred shares as a viable addition to their portfolios.

Pitch Summary:
SL Green Realty Corp. (SLG) is a leading real estate investment trust (REIT) with a significant presence in Manhattan. The company is known for its active and opportunistic approach to buying and selling real estate, as well as its involvement in development and redevelopment projects. SLG has successfully sold $8 billion of real estate at favorable cap rates post-COVID and plans to continue its strategy with $2.5 billion in dispositions and over $1 billion in acquisitions for 2026. The company is also managing a new debt fund, expecting to deploy more than $1 billion. Despite high interest rates, SLG is focused on reducing debt and potentially repurchasing shares, as management believes the stock is undervalued.

BSD Analysis:
SLG's management is strategically positioning the company to capitalize on the strong fundamentals of the New York City real estate market. By selling assets at high cap rates and planning significant acquisitions, SLG is poised to benefit from the recovering market. The company's focus on debt reduction and potential share buybacks indicates confidence in its valuation and future prospects. With an implied cap-rate of 8.5%, SLG's stock is trading below its net asset value, presenting an attractive investment opportunity. Investors should consider the company's variable dividend policy, which reflects its taxable income, as a factor in their investment decision.

Pitch Summary:
Meta Platforms, Inc. has demonstrated significant growth in its advertising business, driven by advanced AI technologies that enhance user engagement and ad efficiency. The company reported a 24% year-over-year revenue increase to $59.9 billion in Q4 2025, with Instagram Reels watch time up over 30% and ad impressions increasing by 18%. Meta's AI models, such as GEM, Andromeda, and Lattice, are improving content ranking and advertising attribution, contributing to a 6% increase in ad pricing. These advancements are expected to stabilize revenue growth above 20% into 2026.

BSD Analysis:
Meta's strategic focus on AI integration is a key driver of its business expansion, allowing the company to monetize its platforms more effectively without significantly increasing ad load. The company's investment in AI infrastructure, including doubling GPU clusters for ad ranking, is enhancing the value of each ad impression. However, the substantial increase in infrastructure costs and capital expenditures poses a risk to free cash flow and margins. Despite these challenges, Meta's ability to generate significant cash from operations and its ongoing AI-driven product expansion support a positive outlook for sustained growth.

Pitch Summary:
Western Union remains an attractive investment due to its low valuation, trading at a 5x TTM earnings multiple, and offering a 10% dividend yield. Despite recent U.S. immigration policy changes that could impact its North American revenue, the company's compelling valuation and stable margins support a buy rating. The firm benefits from a diversified revenue stream, with only 38% of its revenue coming from North America, mitigating the impact of U.S. policy changes. Western Union's strategic initiatives, such as its stablecoin initiative, further bolster its long-term growth prospects.

BSD Analysis:
The recent U.S. immigration visa suspension affects a significant portion of Western Union's customer base, particularly permanent immigrants from countries like Brazil, Colombia, and Nigeria. However, temporary visa holders from countries like Mexico and India, who are significant remittance senders, are not affected by the ban. This provides some resilience to Western Union's revenue streams. The company's operational cost savings have improved its margin profile, and its global presence offers growth opportunities in markets like the UAE and Spain. Investors should monitor upcoming earnings for any margin impacts from the immigration measures.

Pitch Summary:
Reaves Utility Income Fund (UTG) presents a compelling investment opportunity in the infrastructure sector, offering a high distribution rate of 6.35%. The fund has a strong track record of outperforming the broader utilities sector and has consistently grown its distribution since its inception in 2004. UTG's portfolio is diversified across regulated utilities, AI power generation, and critical materials, providing exposure to dynamic growth sectors. Despite trading at a slight premium to NAV, its active management and modest leverage make it an attractive choice for income-focused investors.

BSD Analysis:
UTG's active management has added value over time, outperforming the broader utilities sector by over 100 basis points annually over the past decade. The fund's leverage is modest at 20.43%, which is sustainable given its diversified pool of 63 infrastructure stocks. However, the leverage does pose a risk during market volatility. The fund's exposure to AI-related stocks could lead to underperformance if the AI capex boom proves to be a bubble. Overall, UTG offers a solid one-stop solution for infrastructure investment, balancing high yield with growth potential.

Pitch Summary:
Rayonier Inc. (RYN) trades at a 35% discount to its net asset value, largely due to cyclical weaknesses in pulpwood and housing demand. However, it stands to benefit significantly from the de-dollarization trend, as its high-quality land serves as an excellent inflation hedge. The upcoming merger with PotlatchDeltic is expected to create $40 million in synergies, unlocking further value. RYN is also converting land into higher-value uses like solar leases and carbon capture, offering substantial value appreciation. The company's strong balance sheet and repurchase authorization enhance its capital return potential.

BSD Analysis:
Rayonier's strategic land management and diversification into alternative uses position it to capture significant value over time. The merger with PotlatchDeltic not only provides cost synergies but also expands its asset base, enhancing operational efficiencies. As the housing market recovers, RYN's timberland assets will likely see increased demand, boosting cash flows. The company's focus on sustainable practices and long-term land value optimization aligns with growing environmental and social governance trends, attracting institutional investors. With a solid financial foundation, RYN is well-equipped to weather market fluctuations and capitalize on emerging opportunities.

Pitch Summary:
Camden Property Trust (CPT) is currently trading at a 15% discount to its net asset value, primarily due to oversupply in certain Sunbelt markets and high interest rates affecting REITs. However, the expected decline in new apartment deliveries by 25% in 2026 should rebalance supply-demand dynamics, driving stronger rent growth. High absorption rates and resident retention in Sunbelt markets further support this outlook. CPT is also buying back stock aggressively, with $400 million of buyback authorization remaining, enhancing shareholder value. Its strong balance sheet and strategic asset management position it well to capitalize on the anticipated market shifts.

BSD Analysis:
CPT's strategic focus on high-growth Sunbelt markets positions it to benefit from demographic trends and urbanization. The company's ability to manage its portfolio through asset sales and buybacks at discounted prices demonstrates strong capital allocation skills. As a real asset with short-duration leases, CPT is poised to benefit from macroeconomic trends like de-dollarization, offering a hedge against inflation. The company's robust financial health, with low leverage and no major debt maturities until 2027, provides flexibility to navigate market volatility and invest in growth opportunities.

Pitch Summary:
Netflix shares have recently experienced a significant decline, losing 38% of their value from a peak in late June 2025. Despite this, the investment thesis remains strong, with Netflix continuing to solidify its dominant position in the streaming industry. The company is well-positioned to benefit from industry consolidation, as the economics of streaming increasingly favor scale. Netflix's extensive content library and global reach provide it with a competitive advantage, allowing it to maintain strong subscriber growth and expand into new content categories. The recent bid for Warner Bros. further strengthens Netflix's content offering and market position, making it a long-term winner in the streaming space.

BSD Analysis:
Netflix's recent Q4 2025 financial results demonstrate strong performance, with revenue surpassing consensus estimates and showing excellent year-over-year growth. The company's ability to add subscribers at a healthy rate and increase ad revenue highlights its robust growth engine. Despite competition from larger peers, Netflix's strategic acquisitions and content expansion efforts position it well for continued success. The Warner Bros. acquisition, although facing regulatory scrutiny, is expected to enhance Netflix's content portfolio and strengthen its competitive moat. With a current share price of $83.50, Netflix is undervalued, offering an attractive investment opportunity with potential annualized returns of 16% based on conservative financial estimates.

Pitch Summary:
@itschrisray argues that Ondas is transitioning from a collection of drone assets into a unified defense technology platform. The company is positioning its centralized command-and-control software as the core product, integrating autonomous ISR, counter-UAS, and ground and aerial robotics. This system-of-systems approach addresses shortcomings of legacy defense architectures that rely on siloed hardware and manual coordination. The upcoming Singapore Airshow launch is framed as a major inflection point, marking the commercial rollout of the full C2 offering. Expanding into Asian defense and security markets materially broadens the addressable market. The thesis is that Ondas evolves from selling drones to selling a defensible, software-defined defense platform.

BSD Analysis:
Ondas is aligning itself with a key shift in modern defense toward multi-domain autonomous operations governed by centralized software. Industry structure increasingly favors integrated platforms over point solutions, particularly in counter-UAS and critical infrastructure protection. A unified C2 layer increases switching costs and expands contract scope from hardware sales to multi-year system deployments. International expansion is critical, as defense budgets outside the U.S. are rising faster in autonomous and counter-drone categories. Execution risk remains high given Ondas’ small-cap scale and capital constraints. However, if the company secures reference deployments for its C2 architecture, valuation could re-rate toward platform peers rather than hardware vendors.

Actual Post Content:
The grand vision at $ONDS is starting to become crystal clear. Today’s press release perfectly outlines what $ONDS has been working towards a centralized C2 platform for all drone defense and deployment needs. Multi platform orchestration like they mention in the slide from Investor Day below. These passages from today’s PR stood out to me Ondas Defense and Security vision is designed to overcome the limitations of legacy siloed defense systems that rely on disconnected sensors manual coordination and reactive responses. The Companys solutions integrate autonomous ISR counter UAS aerial and ground unmanned systems and decision support technologies into a software defined modular and scalable system of systems. This unified approach enables persistent adaptive and proportionate responses to evolving threats across diverse and contested environments. Ondas believes the convergence of robotics AI and autonomous command and control represents a foundational shift in how nations and organizations secure increasingly complex operational environments. $ONDS will attend the Singapore Airshow where itll launch an offering for its comprehensive command and control system. This offering is what $ONDS has been working towards not only offering specific drones to customers for specific purposes but instead pitching the entire unified C2 platform of autonomous threat detection and mitigation technologies. Additionally making a definitive push into Asian markets is HUGE. This will help expand their business beyond just the U S and Europe and open massive new markets for them.

URL: https://x.com/itschrisray/status/2017249279702634917

Pitch Summary:
@weary_centurion presents a constructive but frustrated stance on PayPal, arguing the stock has been trapped in a multi-year consolidation despite intact fundamentals. The author highlights a failed technical breakout in late 2024 as evidence that the market needs a clearer catalyst. The core thesis is not revenue acceleration, but capital allocation and strategic clarity. Suggested actions include aggressive buybacks, tighter cost discipline, improved disclosure around Venmo, and clearer communication on advertising monetization. A stronger shareholder-friendly posture is framed as the fastest path to restoring confidence. The author maintains conviction by holding above long-term moving averages while fundamentals remain sound. If management acts decisively, the stock could re-rate materially toward a much higher valuation.

BSD Analysis:
PayPal operates in a mature but structurally attractive payments market where scale, network effects, and brand trust remain durable advantages. Industry growth has slowed post-pandemic, shifting investor focus from top-line expansion to margin structure and capital returns. PayPal’s competitive position is pressured by wallets, BNPL providers, and platform-embedded payments, but Venmo remains an under-monetized asset. The lack of clear medium-term targets and opaque segment disclosure has weighed on valuation more than fundamentals alone. Capital allocation discipline and cost rationalization could meaningfully lift earnings power without heroic growth assumptions. The primary risk is continued strategic drift while competitors integrate payments deeper into ecosystems. A credible operational reset could support multiple expansion from depressed levels.

Actual Post Content:
$PYPL I agree Actions that should be considered: Buybacks acceleration. Insider buying. Increase buybacks authorisation. Freeze dividend for more buybacks. Breakout full Venmo metrics. Timeline for Ads. Investor day. Clear communication. OVAS breakdown. $PYPL is the one that has NOT moved for us. It has been consolidating still since 2022. Showed great signs of breaking out in late 2024, with a test of the upper consolidation level at $93 but rejected hard. I still hold a position here and I DON'T sell under the 200 WMA if the fundamentals are still strong. BUT the market needs a change here....and I think it's only one clear option. For me, $PYPL can still move to $180 but drastic measures are needed now. That’s a fair point. Yeah I forgot that one I agree, headcount is too big. Forgot that one well said.

URL: https://x.com/weary_centurion/status/2017221480241656059

Pitch Summary:
@itschrisray argues Ondas is entering a new phase by moving from selling point drone solutions to marketing a unified command-and-control offering that ties multiple autonomous defense capabilities together. The immediate catalyst is the company’s presence at the Singapore Airshow, where it plans to formally introduce the broader defense-and-security package and outline a 2026 roadmap. The pitch frames this as a strategic repositioning from “product vendor” to “platform provider,” which could expand addressable spend per customer if Ondas can sell an integrated system rather than one-off hardware. A second pillar is geography: the author views an explicit push into Asia as a meaningful market-expansion lever beyond the company’s existing U.S. and Europe footprint. The implied valuation angle is multiple expansion if investors start underwriting Ondas as a defense-tech platform with a scalable C2 layer rather than a niche drone supplier. Key risks include execution (turning roadmap into deployments), procurement-cycle timing, and the credibility of the “platform” narrative versus entrenched competitors. Overall stance is Bull because the airshow launch is positioned as a decisive go-to-market inflection and international growth opener.

BSD Analysis:
The core question is whether Ondas’ “unified C2” message translates into budget capture at the program-of-record level, where integration, interoperability, and operator workflow matter more than individual drone specs. Defense buyers increasingly prefer system-of-systems architectures (sensor-to-decision-to-effector loops), but incumbents and well-funded challengers compete aggressively on software, interfaces, and customer lock-in. If Ondas can standardize its command layer across heterogeneous assets and demonstrate measurable reductions in manpower and response time, it could earn platform-like economics and higher recurring software/maintenance attach. However, defense revenue is often lumpy, milestone-driven, and sensitive to qualification/fielding timelines; airshow announcements can lead fundamentals by quarters. Asia expansion is attractive, but it introduces channel/partner complexity, export/regulatory considerations, and potential localization requirements. Competitive differentiation must be explicit (e.g., autonomy stack, multi-domain integration, cost-per-protected-site) or the offering risks being viewed as bundled hardware with thin software value. The upside case is a credible transition toward recurring, higher-margin “C2 + services” with expanding international reference accounts; the downside is dilution of focus and prolonged sales cycles that keep results volatile.

Actual Post Content:
$ONDS will attend the Singapore Airshow where it’ll launch an offering for its comprehensive command & control system. This offering is what $ONDS has been working towards - not only offering specific drones to customers for specific purposes, but instead pitching the entire unified C2 platform of autonomous threat detection & mitigation technologies. Additionally, making a definitive push into Asian markets is HUGE. This will help expand their business beyond just the U.S. & Europe and open massive new markets for them. Ondas will participate in the Singapore Airshow, unveiling its rebranding, 2026 roadmap, and multi-layered autonomous defense solutions. $ONDS

URL: https://x.com/itschrisray/status/2017241169504194974

Pitch Summary:
@crux_capital_ presents LASR as a core beneficiary of the U.S. military’s shift toward scaled directed-energy weapons. The thesis centers on nLight’s ability to move beyond counter-drone systems into megawatt-class lasers capable of neutralizing hypersonic and ballistic threats. The company is positioned as a critical supplier to major Department of Defense initiatives including SHIELD and the Golden Dome defense architecture. Manufacturing expansion and prototype delivery timelines suggest near-term execution momentum. Analyst upgrades and contract wins reinforce institutional validation of the business. Risks include valuation after a sharp run and dependence on continued defense prioritization of laser-based systems. Overall, the pitch is a high-conviction long tied to a structural defense technology supercycle.

BSD Analysis:
Directed energy is transitioning from experimental to deployable defense infrastructure, fundamentally changing procurement economics versus kinetic interceptors. nLight’s vertically integrated architecture and coherent beam combination create a rare capability moat at megawatt scale. The key underwriting question is not technical feasibility but program durability and pacing of DoD budget allocation across platforms. Margin expansion depends on volume absorption as production ramps, particularly given long procurement cycles. Competitive risk is limited in the near term due to technical barriers, but program concentration remains material. If megawatt-class deployment becomes standardized, earnings power could scale non-linearly.

Actual Post Content:
A laser that can shoot down hypersonic missiles $LASR. The Dept. of War is making it clear that Scaled Direct Energy is a defining kinetic capability in 2026. nLight ($LASR) is positioned at the center of this paradigm and they are on track to a deliver a 1-MW class laser weapon prototype in the first half of 2026. 50kw systems address drones. 1MW provides the thermal intensity required to destroy hypersonic glide vehicles and ballistic threats at the speed of light. This platform serves as the high-energy engine for the $151B SHIELD IDIQ and the multi layered Golden Dome homeland defense shield. By leveraging proprietary coherent beam combination, nLight has enabled ground to space lethality for space force mission in low earth orbit. The company has more than doubled its manufacturing capacity in Colorado to support this production ramp for the DoW. Long $LASR NFA.

URL: https://x.com/crux_capital_/status/2017236359103062220

Pitch Summary:
@Heady_Creek recommends a long position in DECK, arguing that both core brands, Hoka and Ugg, are executing materially better than the market expects. Hoka is seeing tight channel inventories and limited discounting, contrasting sharply with promotional pressure at competitors like Nike and On. Ugg is benefiting from new sneaker silhouettes such as Lowmel, which are selling through quickly across wholesale and DTC without the need for promotions. The author believes consensus gross margin expectations are overly conservative given pricing discipline and strong demand. Valuation underpins the bull case, with the stock having de-rated to roughly 12x earnings, an all-time low multiple for DECK. Proprietary survey data further supports a structural shift away from Nike, particularly among older and high-mileage runners who show low intent to return. The combination of brand momentum, margin resilience, and depressed valuation supports upside to a 15x multiple and a $108.75 target.

BSD Analysis:
Deckers sits in an unusually strong competitive position within athletic and lifestyle footwear, driven by differentiated brands rather than broad category exposure. Hoka’s strength among older, higher-income runners suggests durable demand and pricing power, especially as competitors rely more heavily on promotions. Ugg’s evolution toward sneaker silhouettes meaningfully extends its addressable seasonality, which can smooth revenue and margin volatility over the year. The key buy-side question is sustainability: whether low promotions persist as volumes scale and wholesale exposure expands. Survey evidence pointing to weak recapture rates for Nike implies Hoka’s gains may be structural rather than cyclical. Valuation provides downside protection given DECK’s margin profile relative to specialty retail peers. Risks include fashion cyclicality at Ugg, brand fatigue, or a broader consumer slowdown that forces renewed discounting. If brand momentum holds and margins prove more resilient than modeled, earnings power could surprise meaningfully on the upside.

Actual Post Content:
Our $DECK write-up presented to clients 12/1 and 12/30 (also mention $NKE): DECK Write-Up We are recommending a long position in DECK, makers of Hoka and Ugg shoes. Hoka: channel inventory is tight and discounts are minimal compared to peers Nike and On Running. Ugg: new silhouettes like the Lowmel sneaker are in high demand with stock-outs reported across wholesale and DTC channels, making promotions unnecessary. We are also observing strong sell-through at new wholesale relationships such as Dick’s. Given lack of promotions and high price-points for Ugg this holiday season, we think analysts are modeling too severe a contraction in gross margin (250-300bps lower y/y). Valuation provides a floor: the stock has de-rated from a peak valuation of 38x to 13.5x. Based on our updated estimates, we believe the stock is trading at close to 12x, which is an all-time low for DECK. Given where comparable specialty retailers are trading (though we note few if any have margins close to DECK), we believe the stock should trade at 15x our estimate for $7.25 or $108.75. Side-note: we are close to completing a proprietary running survey, but we wanted to share some preliminary findings: Only 15% of runners that switched from Nike to Hoka are planning to or have tried the new models from Nike. This compares to 40% of runners that switched from Nike to On Running that would be interested in or have tried the new Nike running models. We found this surprising given Nike’s long-standing position in the structure category which appeals to older runners looking for stability and cushioning. For runners completing between 50-100 miles per week, Asics was the most popular brand. Of the runners in this cohort who said they switched from Nike to another brand, only 5% were considering a return to Nike. The shift away from Nike to Adidas within the lifestyle category appears to be driving interest in performance at Adidas. For respondents that voted Adidas as their preferred lifestyle shoe, 40% owned or planned to purchase a performance shoe from Adidas. This is up from 32% when we conducted this survey mid-year. We don’t believe analysts are considering how the pullback in lifestyle by Nike could create a headwind for performance running. DECK: The Structural Shift away from Nike Structure, the all-season Ugg Heady Creek recently performed its monthly athletic footwear, apparel, and athleisure survey. One question we’ve been included in the survey has, over time, yielded answers that suggests previous Nike Structure runners that moved to Hoka are less likely to switch back to Nike. What the survey results show is that, over the course of the year, less Hoka runners were considering going back to Nike’s Structure franchise. Hoka’s average age skews oldest across Hoka, On, Nike and Adidas, which gives us confidence in the purchasing power of the average Hoka runner. Ugg has introduced a new model, the Lowmel, that is one of the best selling models ever introduced by the brand. Most importantly, it is a sneaker silhouette and likely to be the first true all-season shoe by Ugg.

URL: https://x.com/Heady_Creek/status/2016991255218041121

Pitch Summary:
Sprott Physical Gold and Silver Trust (CEF) We added CEF to conservative portfolios back in 2022 around $16 as a straightforward alternative to bonds. Unlike most precious metals ETFs that use derivatives or futures contracts, Sprott actually owns physical gold and silver bars sitting in a vault. No counterparty risk, no financial engineering, just METAL. CEF’s 90% surge in 2025 made this look prescient. It wasn't, we bought it as insurance. The fact that it worked this year is almost beside the point. CEF is there to provide ballast when fiat currencies do what they tend to do over long enough time horizons (e.g. inflate). We're holding.

BSD Analysis:
Sprott’s trust is not a business—it’s a conviction vehicle for hard-asset exposure without operating risk. The “moat” is physical backing and investor trust, not returns on capital. Value tracks metal prices minus friction, with no internal compounding. Discounts and premiums to NAV reflect sentiment more than fundamentals. It shines when fiat confidence wobbles and looks dead when real yields rise. There is no management alpha, only custodial integrity. The bull case is monetary stress and inflation psychology. The bear case is opportunity cost during equity-led growth cycles. This is protection, not productivity—and should be sized accordingly.

Pitch Summary:
Heico (HEI) We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. Nothing flashy, but they execute well. The reliable compounder that keeps working while we take swings elsewhere. We're holding alongside the Mendelson family.

BSD Analysis:
HEICO’s moat is quiet dominance in FAA-approved replacement parts where certification, not branding, blocks competitors. Once an airline qualifies an HEICO part, switching back makes no economic sense. The aftermarket focus delivers high margins and long-duration cash flows tied to flight hours, not aircraft cycles. Decentralized operations preserve entrepreneurial speed, but rely heavily on disciplined managers. Growth is steady rather than explosive, driven by part proliferation and acquisitions. Valuation often prices perfection, leaving little room for execution slip-ups. Defense and space add diversification without diluting focus. The bull case is continued global fleet growth and relentless aftermarket penetration. HEICO compounds by being boring, approved, and everywhere it needs to be.

Pitch Summary:
AST SpaceMobile (ASTS) If you've followed our emails, you'll recall we added ASTS in March 2025 around $30 per share. It is a founder-led bet on eliminating cellular dead zones through space-based broadband to unmodified smartphones. Partnerships with major carriers like AT&T and Verizon, a wholesale revenue model with high margins, and some technical milestones made the case for our first ‘space economy’ investment interesting. ASTS surged nearly 245% for the year, turning our position into a solid multi-bagger. Things accelerated in December with the successful launch of BlueBird 6, the largest commercial communications array ever deployed in low earth orbit. This is a next-gen satellite that enables peak speeds up to 120 Mbps, supporting full voice, data, and video. They're aiming for 45-60 satellites by late 2026. We continue holding. Abel Avellan and his team are building what could become a massive subscription business. This is a more volatile/speculative idea. Patience remains key as the satellite constellation builds out.

BSD Analysis:
AST SpaceMobile enters 2026 as one of the most promising high-risk, high-reward plays in the satellite communications sector. The company has secured billion-dollar carrier deals with AT&T and Verizon to provide direct-to-cell satellite broadband, a potentially world-changing technology. Management has successfully built a $1.2 billion cash buffer, significantly de-risking the launch and deployment of its first commercial satellite constellation. While the stock has seen massive technical swings, analysts project a potential 50% soar by the end of 2026 as initial service begins to go live. The company’s ability to "connect the unconnected" without the need for specialized ground hardware gives it a massive competitive moat over Starlink. For 2026, ASTS is the premier "moonshot" play for investors betting on the future of global 5G connectivity from space.

Pitch Summary:
Selected Positions MicroStrategy (MSTR) If you've been with us for a while, you know Strategy (formerly MicroStrategy) has been a big part of the approach over the last few years. Our original cost basis is around $17/share. To understand MSTR, you first have to grasp Bitcoin. Bitcoin functions as scarce, portable, digital gold that is now gaining some traction as an institutional hedge against currency debasement. If BTC fails, the MSTR thesis falls apart. Likewise, owning MSTR means betting on Chairman Michael Saylor, the founder who has led the company since 1989. Saylor endured the dot-com bust, which included a high-profile corporate scandal. Through it all, he has survived many of his peers and has reinvented the company repeatedly. He still has skin in the game (around 10% ownership with strong voting control), which we like for the alignment with us as common stock shareholders. In its current form, Strategy operates as the leader in pioneering corporate bitcoin strategy. The company holds the largest corporate bitcoin stash (by far). It monetizes this through fixed-income securities like convertible notes and structured debt. These products appeal to institutions seeking BTC exposure without owning the asset directly. The case for MSTR is leveraged bitcoin upside under proven capital allocators, with a steady software business on the side. 2025 was a tough year for MSTR. The stock declined 47.53% thanks to BTC volatility and market rotation away from high-conviction names. Putting the ‘treasury company’ hype aside, which now includes many MSTR copycats, I still think the core thesis holds. Certainly, the pullback improves valuations from here. With bitcoin's institutional narrative advancing through maturing spot ETFs and growing corporate interest, we will monitor to see if Saylor and CEO Phong Le can learn from a wild year and right the ship.

BSD Analysis:
Strategy Inc., formerly known as MicroStrategy, has fully solidified its identity in 2026 as the world’s leading "Bitcoin Development Company," now holding over 712,000 BTC valued at more than $55 billion. The investment thesis centers on its aggressive "42/42 Strategy," an upsized capital-raising plan targeting $42 billion in equity and $42 billion in debt over three years to maximize its digital asset treasury. For 2026, the primary catalyst is the company's inclusion in major indices like the MSCI World, which has validated its model as a legitimate operating business rather than a closed-end fund. While the stock has faced high volatility—trading at a roughly 20% discount to its Net Asset Value (NAV) in early 2026—this rare valuation gap provides a unique entry point for investors seeking leveraged exposure to Bitcoin. Management continues to leverage its core enterprise analytics business to generate steady cash flow, which supports interest payments on its $8.2 billion in outstanding debt. The stock effectively functions as a high-beta proxy for the institutionalization of Bitcoin, offering outsized upside potential during cryptocurrency rallies. With a USD reserve of $2.25 billion to cushion its preferred dividends, Strategy remains a high-conviction play for those betting on the long-term scarcity and adoption of digital capital.

Pitch Summary:
The Thesis: Listed subsidiaries of large Japanese conglomerates are often overlooked. As the IT arm of JFE Steel, this company was trading like a cyclical steel firm despite being a high-margin, cash-generative IT consultant. The 2025 Outcome (+60% Return): We benefitted from the "Governance Wave." Following the Tokyo Stock Exchange’s push for listed subsidiaries to justify their listing, JFE Systems transitioned to a company with an Audit & Supervisory Committee in June 2025, signaling a move toward more independent, transparent governance. This shift, combined with steady revenue of ¥63.97 billion, led to a sharp re-rating of the stock.

BSD Analysis:
JFE Systems’ moat is parent-group proximity and deep industrial domain expertise, not open-market competition. Integration into manufacturing and steel operations creates high switching friction. That embeddedness ensures stability, but also caps addressable market size. Growth is tied to capex cycles and internal demand more than innovation. Margins are protected by specialization, yet never escape service economics. Independence risk exists if group priorities shift. The bull case is sustained industrial digitization and automation spend. The bear case is parent capex pullbacks limiting growth. JFE Systems works as industrial infrastructure—not a tech compounder.

Pitch Summary:
The Thesis: A consultant and BPO provider specializing in management accounting. Our interest was piqued by their "BBS2026" roadmap, which aimed to transition toward higher-margin recurring revenue. The 2025 Outcome (+74% Return): Execution was the key catalyst. BBS achieved an organic sales growth rate of 13.0% while improving business profit margins to 7.3%. The company also demonstrated a "shareholder-first" mindset by announcing a significant change in its dividend policy and completing a share repurchase program in early 2025.

BSD Analysis:
Business Brain’s moat is legacy ERP and accounting system expertise inside conservative Japanese enterprises. Once embedded, displacement is rare—but expansion is equally rare. Revenue quality is stable, yet growth relies on project wins rather than platform leverage. Pricing power is limited; trust substitutes for margin. Labor availability and retention are strategic risks, not HR issues. Cloud migration creates opportunity, but also invites new competitors. The bull case is continued digital modernization among mid-sized enterprises. The bear case is stagnation as legacy systems persist without expansion. Business Brain is durable—but structurally low-octane.

Pitch Summary:
The Thesis: A high-quality IT services provider within the Mitsubishi Group ecosystem. We identified this as a "responsible value" play—a firm with a 50-year history and mission-critical industrial clients, yet trading at a steep discount to its intrinsic value. Ryoyu saw its EPS compound at 21% over the last 4 years. As the market recognized this fundamental acceleration, its Price-to-Earnings multiple expanded from 9 to 13x. Furthermore, management rewarded shareholders by growing the annual dividend from ¥30 to ¥85 per share over the 5 year, in line with EPS growth.

BSD Analysis:
Ryoyu Systems’ moat sits at the intersection of logistics know-how and IT integration, where customers value continuity over innovation. Switching costs exist because systems are embedded in physical operations, not because software is best-in-class. Revenue visibility is decent, but growth is incremental. Margins are constrained by customization and service intensity. Competitive pressure is constant from larger SI firms and niche specialists. Execution errors show up quickly because logistics tolerates zero downtime. The bull case is steady demand for logistics optimization and automation. The bear case is customer consolidation squeezing margins. Ryoyu compounds slowly when operations stay boring.