D&A Metropolitan

A 20% earnings yield?... $10m trailing EBITDA on roughly equivalent tangible invested capital, >25% margins, no debt with excess cash, and just grew the screen count 5% in a single quarter(!)...a record period for installations. (that latter piece is the most important part of the update by far if you understand what the value drivers are here). A refinery multiple on this would be uniquely preposterous. It might sell off because it's a microcap that fintwit piled into with borrowed conviction, but its already more than a 60% discount to IMAX's multiple on NTM numbers at today's share price with more growth and runway.

Sohra Peak is long D-BOX Technologies $DBO.TO D-BOX is a niche haptics company with high-margin recurring royalties and inflecting profits unfamiliar to most due to mismanagement for 20+ years Current Year P/E 11x, EPS +15-20%, ROIC 47% New memo available in tweet below (1/2)

$AENT reporting after close. Not expecting anything exciting on the top line given tough comps and challenges in gaming segment, but looking for gross margins to hold 15.8% and commentary on new licensing deals.

I'll be very happy to be proven wrong, but $DBO.TO $DBOXF will probably come in lower YoY and QoQ, mostly due to fewer new theatrical installs in August and September (though these appear to have picked back up in November). Expecting the sim business to continue showing strength, with a good boost this quarter from the Vegas Arcade opening. Royalties should be flattish QoQ, a testament to how well the product is performing even with a light release schedule. I have trimmed 25% of my position since the stock is up 120% in 5 months when the idea was shared. There is a possibility of an overreaction to the downside as the comps could look weak optically.

$BE has gone from $18 -> $129 essentially on the realization that fuel cells can use nat gas to powers data centers. It’s now at $30B market cap. $BW even after this move is at $450m ish. But it’s clear that nat gas can be used to power boilers and steam turbines to power data centers. They just signed a deal with $APLD that: 1) Probably is the first of more 2) Alone represents a truly transformative revenue opportunity I am shocked it is not up more. I think people are price anchoring since $BW has run so hard already + shaky small caps lately. But the thing is, it might be a better r/r here than it was emerging shakily from bankruptcy at lows. I am really excited by this name here, clearly there’s something to their tech. I don’t think $BE at 30B and $BW sub 1B makes any sense, personally.

Posted a writeup on $AENT. It's currently trading at ~5x EBITDA and ~6x EPS despite an impending return to growth in 26/27 and numerous catalysts for a rerating. Full writeup in the usual place.