I’ve been watching the High Bandwidth Memory (HBM) theme play out with SK Hynix, Micron, etc. And people are saying the next bet is optics, or glass substrate, and the more I research these bottlenecks the more I realize they are right. But I cannot bring myself to pay 30X EV/EBIT on a name that just increased revenue by 100%, so instead I sit on the sidelines envious at what could’ve been.
In my state of FOMO, I started to dabble deeper and deeper into the supply chain. I was looking for something that was positioned to grow from these tailwinds, but not priced at a nosebleed multiple. I scoured far and wide.
And then I found it.
At first glance, I thought I found a good company. But as I stopped glancing and started really digging, I realized I had found something much rarer.
I found a company flying under the radar, sitting at a most crucial part of the semiconductor stack, but far enough removed that it has zero mentions on X.
The Moat: It is an Oligopoly, commanding insane margins.
The Valuation: It is trading at a single-digit EV/EBIT while poised to take advantage of the growth in semiconductors.
I do NOT need to forecast aggressive growth because the company is perfectly positioned to ride the wave of AI, robotics, and everything chip-related. And it’s AI-exposed segment has been growing very fast.
Excellent governance.
It’s got a moat that would make Buffett drool but unfortunately he wouldn’t buy because it’s too small (which is another reason it’s undiscovered). It has management that have a firm grasp of governance and capital allocation who have performed extremely well and have earned a exceptional ROIC. And who are investing a lot of money to be close to TSMC.
The company stands to benefit from not just the AI tailwinds, but from robotics, and everything chip related, which in the future- is essentially everything from self-driving cars, unitree’s acrobatic robots, to your AI-infused refrigerator that will soon also be your therapist.
It is, by far, the best company I have written about thus far. (in my career of 10+ years)
Yes, this beats Heritage Insurance (which was a 20-bagger), simply because the risk profile here is superior and the visibility into its future growth is clear. It’s high margin, AI-exposed segment is growing fast, but that growth is currently masked by headwinds in another segment—the perfect confluence of events to create one hell of a bargain.
It stands to benefit from NVIDIA, from TSMC, and supplies names that have already skyrocketed into the stratosphere.
Deep-dive research of this caliber takes weeks to produce and it takes months (years) of rock-turning to find a stock like this. For that reason, the full thesis and the ticker are reserved for paid subscribers.
It is this kind of opportunity I have been waiting for, this kind of quality opportunity that I want my paid subscription to represent. I’m sure you will find it more than worth it.
It’s not just me that thinks this. I reached out to some well-regarded experts to make sure I wasn’t alone in my thinking.
I then sent it to another investor I admire and received this response:
but then after reading-
Last opportunity for my subscribers
Because this is my first ever paid post,
I am pricing my annual subscription at $239 per year.
That’s equivalent to $19.90 per month. For the price of a burger, you get access to institutional grade research that aims to compound your wealth significantly.
If you subscribe at this price, you lock that price in- forever after I will be priced somewhere between $300 and $400.
After that, the price goes up. No exceptions.
Subscribe now. This is the stock that is worth it.
A quick note for everyone who previously pledged at a lower price: when I switched this Substack from “pledges” to full paid, Substack did not automatically turn those pledges into subscriptions. It treated my new $239 plan as a different thing entirely, removed the old pledge list- there was a setting I should have enabled but I missed it on this first attempt. My apologies.
I can only see who left a note for the pledge. I will honor that note with 6 free months. You should see this email still, but now you need to ‘convert’ again. If you pledged at a lower price, please forward me your ‘pledged’ email and I’ll give you the comp.
I greatly appreciate your support.