Hammond Power Solutions Inc. (HPS.A-T)

Double-top on the chart was a warning sign. Trendline broke pretty dramatically ~$120. We're now just above some longer-term support, around $60. After a selloff, investors tend to step into the bigger names first, so a smaller name like this can languish a bit. 

Stock may have overshot last few years. Pullback is an opportunity to accumulate. Really needed if you believe in the electrification trend. Not as exposed to tariffs as other companies, as they have pricing power.

Still owned by founder, second generation. Has done the same thing for a long time; what changed is number of places they could sell to. Good business, but not a great price right now. 

DeepSeek was like a "man overboard" moment for a stock like this, as many own it simply as a beneficiary of data centre buildout. This sentiment makes it harder for the long-term investor.

He sold it after rising 300% for him. Problem now are their capacity constraints. They're growing capacity in Guelph and New Mexico, but you're overpaying on limited growth. He doesn't see the growth, considering their PE.

Exposed to the right verticals. One of the very few pure-plays in Canada. Management's been great. Stock has benefited from pickup in demand. But is it sustainable? Margins can't remain elevated forever. Power demand is real. Given the runup, be careful. 

Hold, or reduce on strength. Better ways to get exposure.

On a tear. It's always been expensive. Revenues have been growing, though net income's been a bit slow to follow. If it can get to a critical mass, then stock will be OK. Expect volatility. Look for big selloffs around quarterly earnings. Watch position size in your portfolio.

Dry transformers. Spending fair bit of money to ramp up production and capabilities. Strong balance sheet. Data centres are going to use a lot of power, so the story will continue. Trades ~10x EBITDA, but growing at really high teens multiples for revenue and EBITDA. Yield is 0.8%.

Is exposed to all the right verticals. They make transformers to optimize energy, driven by the AI boom (the need for data centres). There's still upside despite the huge rally. Business is booming, and the growth trajectory is good. Trades at 18x PE, but growth makes the future PE reasonable.

Shares have taken off due to the electrification of the grid, driven by EV demand. Kudos if you own this, but he doesn't buy smallcaps. Owners own a lot of shares. Needs to research this more.