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In late July, they reported an excellent quarter, taking shares to all-time highs. But oil prices have remained high and interest rates keep rising. GM has lost some of its gains, but is still up 49% this year. However, they just released heavy-duty truck models and have a growing digital services business. Business is holding up well.

Shares have plunged by half since summer highs. The data centres are driving their power business, which makes up 78% of their revenues, plus 20% in construction and 2% in communications and data networks. Their power is based on natural gas which is abundant in the US and whose plants are easier to build than nuclear. Their Q2 results were super: top and bottom line beats, 62% revenue growth, the power business +53%, their industrial business more than doubling, their small tele-data business grew 40%. Some of their revenue in Q2 came earlier than expected, so their Q3 could be a little light. Argan remains bullish for the full  year. This quarter, their industrial margins were down a lot from a few poor projects that won't finish for 6 more months. At end of last July, their backlog was $2.55 billion down from $2.93B last January. No new major power projects were added in Q2 and it's uncertain when it will come, perhaps a year from now. Though small, the dividend was raised this year, and the company has bought back a moderate amount of shares since 2021. Shares are down 36% the past 6 months because data centres have become politically toxic which will hurt power demand. The PE is under 25x 2027, which is paying a premium for growth. He likes the company, but you can take profits now.

They're doing AI fiber at the edge, took some investment money from Nvidia, and are a core component during the growth of data centres.

He doesn't like the food stocks now.

The construction had a great moment, came down and are now oversold. He doesn't know when they will turn, but they haven't bottomed yet.

Interest rates are rising and their fundamentals are not good.