Vertiv Holdings (VRT)

Are doing great cost cuts and have pricing power. Shares were down, because they grew organically 18% vs. the expected 24%. They raised organic growth for the end of the year. Great managers.

Is -27% in three months. It's still expensive at 34x PE.

It plunged 17% today. It reported weak earnings today at 18% organic sales growth vs. the expected 23%. Management said sales were delayed in the second half. They delivered a 10 cent earnings beat, margins were excellent, and they raised their full-year forecast. The stock is unfairly punished.

Primarily in thermal cooling of data centres, whose capacity will continue to explode over the next 4-5 years. Still likes it. Higher beta at close to 1.9x, so know that you'll get some volatility. Very strong growth rate of ~33+%.

Technical structure looks very, very strong -- higher highs and highs lows. Bit of profit-taking in last 3-4 weeks. At the 100-day MA at the moment, so it might be an opportunity for you to layer in. In the AI data centre infrastructure space. RSI is getting close to oversold, but it's a high-beta stock (1.8-1.9x the S&P). Earnings growth of 33-35%, ~40x forward PE.

Good runway to price target. Buy in thirds here, ~$270, and ~$260.

They had an amazing quarter, and the best backlog of any data centre stock, but their 52x PE is too high.

They have an investor meeting on Tuesday, but share are up huge, so it might not matter. 

Liquid cooling solutions for data centres, benefits from AI buildout. This type of picks-and-shovels business is outperforming the data centres themselves.

He's not super-enthusiastic about many of these AI-adjacent companies. They're not super-sophisticated tech that nobody else can do. In the end, there are only 4-5 customers and they have the scale to push prices down. Not interested in adding at current levels.

The price target is $281, and today is $278. This is a classic case of buy high, sell higher.

Tied to the AI story. More data centres means you need stable power and (more importantly) cooling systems. AI data centres are 24/7, and need a lot more computing than traditional computing platforms. Mission-critical infrastructure.

Lots of revenue backlog (~$15B). It goes back to the picks-and-shovels owners will benefit from the big capex spend by hyperscalers. Yield is 0.09%.

It went public through a SPAC merger 6 years ago and has risen 1,950% and been profitable for 5 years. Likes it.

A play on data centre infrastructure. Main product is liquid coolant. Very well positioned with its range of products in the space. Even if coolant division doesn't do as well, rest of products will still be needed. Stock's not cheap, as a lot of upside already priced in. Valuation keeps her away.