Kerrisdale Capital

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[Kerrisdale Capital @KerrisdaleCap]

We’re long $RRX, report at https://t.co/TO3tuc29aF. Regal Rexnord is a power transmission / motion control powerhouse that offers an excellent way to play the upcoming “Physical AI” boom, incl both industrial automation & humanoids, plus a fast-growing data center power biz. 1/8

[Kerrisdale Capital @KerrisdaleCap]

We see $RRX shares motoring at least 100% higher, with exciting optionality on numerous growth opportunities. Forget Prometheus, Agility and Figure AI – we’d rather buy the picks, shovels, knees, elbows, ankles of the Physical AI revolution at a low teens EBITDA multiple. 8/8

[Kerrisdale Capital @KerrisdaleCap]

We’re long $RRX, report at https://t.co/TO3tuc29aF. Regal Rexnord is a power transmission / motion control powerhouse that offers an excellent way to play the upcoming “Physical AI” boom, incl both industrial automation & humanoids, plus a fast-growing data center power biz. 1/8

[Kerrisdale Capital @KerrisdaleCap]

Given its transformation and bright future, $RRX trades far too cheap, at just 11.5x 2027E EBITDA. Compare Regal to other industrial equities benefiting from data center demand, A&D exposure + robotics, and the company’s discounted valuation is striking. 7/8

[Kerrisdale Capital @KerrisdaleCap]

Our 3 AI / Data Center plays from last year

$ACMR: +580%
$STX: +830%
$AIXA: +270%

We have a new datacenter and humanoid beneficiary tmrw

[Yellowbrick Investing @joinyellowbrick]

The $STX pitch from @KerrisdaleCap just crossed the 1y mark and is up an insane 700%+

[Grok @grok]

**Kerrisdale has the stronger case overall.**

MRAM *does* excel in radiation/magnetic resistance for space, aerospace, and defense—Everspin has legit tech there, flight heritage, LEO satellite use (~10% revenue), and a $40M DoD contract. That's a real niche strength.

But the stock's 300% spike was classic AI/memory hype misfire. Everspin's biggest market is still casino gaming, revenue has been ~$50-65M and mostly flat for years, and MRAM isn't competing in the high-density, high-bandwidth AI server memory game (that's HBM/DRAM territory). Valuation at 10x+ forward sales looks stretched for a small, niche player.

Tech is cool. The valuation pump wasn't.

[Kerrisdale Capital @KerrisdaleCap]

As $MRAM re-rates toward the valuation of a niche industrial semiconductor supplier rather than a real AI infrastructure beneficiary, we see fair value at $14/share, representing ~63% downside from current levels. (8/8)

[Kerrisdale Capital @KerrisdaleCap]

We are short $MRAM (Everspin Technologies), a niche industrial memory chipmaker whose stock has soared 300%+ as speculative investors pile into anything remotely associated with “memory” and AI. Report at https://t.co/aGmiOgZgnh (1/8)

[Kerrisdale Capital @KerrisdaleCap]

Recent trading action bears all the hallmarks of speculative frenzy. Trading volume exploded from a few million dollars to more than $1bn in a single session despite no comparable change in the business. Meanwhile, the CEO, CFO, and two directors sold stock into the rally. 7/8

[Jarad @JaradCapital]

from MTU aero engine earnings call - $MTX:GR $MTX

“We have not received a single cancellation or meaningful deferral as of now.”

“Capacity available… is still below the market demand… we don’t have a lot of open slots.”

“We didn’t lose any shop load event… even if customers change, we can compensate with other engines.”

“Impact is absorbed by older, less fuel-efficient fleets… demand for modern engines remains unaffected.”

“Very low retirement rate… almost none.”

“Airlines confirm easing AOG numbers… improvement expected through 2026.”

“US$ MRO revenues increased 20%… clearly exceeding full year guidance.”

“We are in a comfortable situation… able to pass price increases on rather easily.”

“People are actively searching for slots… we don’t have open slots.”

“We do not see any weakening in spare engine prices.”

Verdict: bullish! @KerrisdaleCap