Good morning and happy Monday,
The summer trade continues, there's lot's to cover and plenty of opportunity.
This week's earnings
Mon 7/20: Domino's Pizza (DPZ), W.R. Berkley (WRB), Steel Dynamics (STLD)
Tue 7/21: General Motors (GM), Coca-Cola (KO), 3M (MMM), Danaher (DHR), Northrop Grumman (NOC), Capital One (COF), Charles Schwab (SCHW), Halliburton (HAL), D.R. Horton (DHI), Genuine Parts (GPC), Synchrony (SYF), Hasbro (HAS), Equifax (EFX), Marsh & McLennan (MMC), Interactive Brokers (IBKR), KeyCorp (KEY), EQT (EQT)
Wed 7/22: Alphabet (GOOGL), Tesla (TSLA), IBM (IBM), AT&T (T), Texas Instruments (TXN), Philip Morris (PM), ServiceNow (NOW), Kinder Morgan (KMI), GE Vernova (GEV), CME Group (CME), Southwest (LUV), Otis (OTIS), PulteGroup (PHM), Crown Castle (CCI), Northern Trust (NTRS), AvalonBay (AVB), Wabtec (WAB)
Thu 7/23: Intel (INTC), T-Mobile (TMUS), Lockheed Martin (LMT), Union Pacific (UNP), Comcast (CMCSA), SAP (SAP)
Fri 7/24: American Express (AXP), Verizon (VZ), Charter (CHTR)
You Probably Never Heard of This Stock
Powell Industries, ticker POWL.
A Houston company that builds custom electrical switchgear...
The unglamorous gear that controls and protects the flow of power inside a facility.
Here is why I'm looking at it.
The real bottleneck for artificial intelligence was never only chips.
A data center can hold the best silicon in the world and it does nothing until power can be switched, protected, and delivered.
That is Powell's entire business. 
The company just posted new orders up 97 percent year over year.
A record backlog near $1.8 billion giving revenue visibility into 2028, and it followed that with a single data center order worth more than $400 million.
No debt, over half a billion in cash.
The stock has already run enormously... more than 80 percent in the first half of this year alone. It trades at a rich multiple, north of 40 times forward earnings.
That's because the ones being built now will dwarf everything that came before them. Thanks to AI's ravenous hunger for power …
They are beginning to morph into sprawling behemoths.
Meta has committed $10 billion to a data center in Louisiana set to occupy more than 4 million square feet.
That's Meta's largest data center ever.
Which means the market is valuing it as an AI infrastructure winner rather than the cyclical industrial it has always been.
If sentiment cools, the valuation compresses fast and the drop could be swift.
Another caveat..
...insiders have been sellers, not buyers, this year.
And it's 140 times bigger than all of them.
It doesn’t come from a mine, a well, or a foreign country. It runs 24 hours a day. Produces zero carbon.
Needs no fuel, no batteries, and no sunlight.
The International Energy Agency measured it at 140 times global electricity demand.
So why haven’t you heard of it?
Because until last year, nobody could reach it.
This could be a smaller position for the growth portion of the portfolio and not a core holding..
I'll be watching it for entry spots.
Best
- Greg
This is interesting! Elon Musk did something he has never done before..
(sponsored) Elon’s big $266,000 per second purchase
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