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Is +23% in the last 3 months. Last year was rough with -20% earnings, but last February they reported in-line sales and a big earnings beat. Last May, they reported another revenue beat and earnings beat. Also, they maintained their full-year sales outlook and raised their FY earnings forecast. Tariffs are not all good for ROK; some customers in cars are delaying plans (makes sense), and ROK must pay tariffs on cell phones and components. But if we see a huge wave of re-shoring to the US, ROK will be a winner.
China: The US needs their rare earths for smartphones, semis, EVs, lasers, fighter jets, tablets and other devices. What were we thinking when we slapped tariffs on China before settling the rare earths issue?? Brazil: Need an immediate deal with them, because they have one-fifth of the world's rare earths. Vietnam: Also we need to strike a quick deal with them for their rare earths. Australia: same.
47% of their business is defence, 17% civilian, 15% energy/environment, 11% intelligence and 10% space. Clients include NASA, Air Force and federal agencies, so they depend on government contracts. Defence is a solid business, unless Washington reduces this spend. Last earnings were good: beating revenues and earnings and reiterated full-year guidance. However, the growth rate disappointed the street and DOGE threatens to kill some of their government contracts, though he thinks that's overblown. ACM has longstanding relationships with government agencies and they have a huge order backlog. He wants to see their big shareholders reduce their stakes before jumping in, but this is worth watching.
Is surprised this doing poorly, -11.83% in the last 6 months. It yields 5% and trades at 10x PE, which he thinks that go to 12x. Hold or even add shares.