Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. All opinions and projections are my own, may change without notice, and investing involves risk, including the potential loss of principal.
This is going to be a recurring list that I am going to update every month or so. It features names that I believe are at an inflection point, are too cheap, or have enormous potential. Perhaps all at once.
Ideally the company has limited coverage, pristine balance sheet and solid management. Though sometimes I like just slamming some beta.
I will keep descriptions brief and give out short a short thesis. For most of them I will end up making longer pitches or may have already done so.
Let’s dive in:
TRT is a small semiconductor testing company, they also have a strong balance sheet and little to no debt. Their aerospace segment makes the downside limited, while their semiconductor segment is growing fast and has upside. Under 10$ a share I am a buyer.
WSTL is under 60m market cap, with just under 40m in cash and should make 8m+ net income this year. There are fears sales are slowing down, and that was proven true in their last quarter, but the company is still cheap.
CVU just reported a great quarter. Market cap is at roughly 75m and backlog was up 33m to 533m. They did 17m in revenue and were EBIDTA positive. Book-to-Bill is healthy and although the company is leveraged with more debt than cash, the new CFO seems to have turned the tide around. Tools are in place, they just need to keep it together. US government wants their guns.
ESP Uncle Sam wants his guns. Pristine balance sheet. Not super cheap anymore, but potential still there.
IEHC just had a breakout quarter. Backlog, revenue and net income all trending the right way. It is not early anymore, but upside still there. They have the cash to M&A into other segments not named aerospace.
SPCB is at an inflection point. Company revenues are growing quickly and so are ARR. Cash conversion is still a question, but 2h 2026 is when a lot of their recent contract wins will start contributing. There is also buyout potential.
SILC had a great run this week and does not look as attractive near $50 though I do expect the company to give back some gains eventually and the valuation will look attractive again. 50m cash, guiding for 94m in sales this year with just 3m being from AI inference. Next year, given inference is the biggest TAM, revenues could accelerate again. There is a lot of potential here.
BUKS has traded away from ATHs and still has plenty of upside with a strong balance sheet and cash conversion. The aerospace segment is growing quickly and their many certifications create a real moat. They are also investing into more niche aerospace segments to target recurring revenues and even wider moats. As some have pointed out, casino segment spin-off and up listing are potential catalysts though I don’t see any happening soon.
There are a few more names behind the paywall. I will start talking about those once I finish building my positions. A few have already been mentioned on Twitter. My favorite one will be on an article next week.