Cummins (CMI)

Had underappreciated data centre exposure, making back-up generators for them.

Hitting an all-time high. Revenue growth is 18%. It benefiting from the data centre build-out.

They reported a blow-out quarter, sending shares 9% higher. They beat revenues in 4 of their 5 largest divisions, boasted expanded marginsThey are part of the transition to nuclear energy, even though it will likely get less support under Trump, at a pace that will match customer needs. Also, he likes their power systems business (generators, commercial power systems for buildings), timely during the data centre boom. Caveat: While only 9% of their sales come from China, those could be hit by Trump tariffs.

Industrials have outperformed the past few years. CMI's trucking has seen a modest improvement, but wants to see more. Earlier this year they went through a period of adjustment in freight.

A truck engine maker that has a subsidiary that makes hydrogen fuel cells. They're working on hydrogen-powered truck engines.

A great industrial company that yields almost 3%, but industrials are selling off now because of higher interest rates. Cummins will come back, but it will take time, because a slowdown is hurting the industrials more than any sector.

Formerly made dirty truck engines, but now make EV chargers. The new CEO revealed their new zero-emission mandate.

Industrials usually show strength from January to May, but CMI-N has shown weakness earlier than expected. This has him worried about this company and this sector as a whole. Technical support has been broken as well, so he would not buy this.

He is looking for what the tax policies are coming out of the Trump administration. If he offers accelerated depreciation then this one would benefit.

It is very cyclical and for some of them he thinks it is only mid way through the downturn. It is a good cash flow generator for sure.

One of the global leaders in diesel engine technology. Has been a fabulous company since early 2000. It has followed a lot of the global growth in truck manufacturing. Has been weak lately because emerging markets have been weaker, and the order books out of some of those areas have been slow. Trucking in general had some headwinds 2-3 years ago with the $100 oil. Long-term this is a great company. Looking for it to grow earnings probably in the 10% rate over the next 3-5 years. Valuation is quite low right now. On his watch list and he is waiting for the US$ to settle down a bit. Attractive at this price.

Very, very well-run company. Good track record of really good capital allocation. Trading at very reasonable multiples and very capital efficient. Good dividend which should grow over time. Have done a good job of expanding overseas. Considering the big drop off in heavy equipment manufacturing and purchasing, this has done an excellent job. Expanding well into China and India and picking up dealerships. You should have this in your portfolio.

Very good company, not expensive at 12-14 times earnings. Engine manufacture and designer. A lot of revenue comes from the US and they are trying to expand into China. They have good potential internationally for their products.