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Super Bowl Sunday investing story time: In early 2023, I decided I wanted to get some exposure to cybersecurity sector Was still on the fence, until I saw the Crowdstrike Trojan horse ad during the Super Bowl Bought $CRWD shares the next day, +240% 🔥🫡 Opportunity is all around us at all times. Stay vigilant during the commercial breaks 😎

The current bottleneck: Transformers/Switchgear. 

Trade Idea: Long Hammond (~2.2B CAD / ~$1.5B USD) at 184 CAD. They dominate the market for: -Transformers (dry, multi year bottleneck ~23% of market), -serve to switchgear (2-3Y bottleneck) -and manufacture liquid too (5Y, larger bottleneck) 
I personally anticipate components price hikes like NAND, as $AMZN, $MSFT and others compete for allocation. 

You might have seen: “Half of US data center builds have been delayed or canceled, growth limited by shortages of power infrastructure”… Then you go further:

“To address shortages… Canada, Mexico… became the biggest suppliers of high-power transformers for AI data centers to AI data centers”

Guess who is in Canada (Guelph).. Mexico (Monterrey 3 and 4)… and the US?

Hammond

Then here’s the reason the articles cite why hyperscaler DB buildouts are falling apart: 
 “Major reason behind these setbacks is the availability of key electrical components — such as transformers, switchgear”.  Institutions are probably looking at Powell, Eaton, and others… but little do they know? Companies like these actually buy Hammond’s transformers to put inside their own switchgear (“strong sales into data centres, switchgear manufacturers")

Their market share over the transformers market is actually pretty large (eg. ~23% dry).  
The most compelling signal:

-> 122% Y/Y 2025 backlog increase. And we can infer this to be 1B+ CAD.  Eg. company achieved 898m CAD in sales in 2025, capacity ceiling. Management said close of Q3 2025 orders were valued at 53% of the entire closing third-quarter backlog. Given that Q4 2025 revenue was 254 million and the backlog is "more than doubled," we can infer a total backlog value exceeding 1 billion CAD. Also: 
“Gross margin compression last year was due to the buildout of their Mexico facility, but both gross margins are expected to increase and the facility expansions are expectied to turn into accelerated revenue Q2 2026)” which is now.

Downside is if raw material costs (copper, electrical steel) spike again, but given this bottleneck, they can price hike. 

Personal FWD P/E estimates would be ~18-21 for 2026, <15 for 2027 from volume ramp. But I think it’s possible to hit single digit fwd P/E if they do price hikes mixed with hyperscaler emergency orders. But that might get a little mixed with the new acquisition. Regardless still looks cheap. 
 Just a TLDR:  
$AMZN, $MSFT, $META, $GOOGL, $ORCL datacenter are being bottlenecked because of a lack of transformers/switchgear.

Seems like markets missed this little player with large market share, despite backlog visibility and increasing revenue from capacity expansion coming online. I personally found it pretty compelling, so I went long. Just sharing my personal thoughts, of course DYOR before making any decisions yourself.

Trump says the U.S. made $45B in 8 months from its $INTC stake.

Never forget that the default direction of the market is up. It’s always been up. If you bought $1 worth of the S&P500 on any day in history…you’d have more money today. Up doesn’t mean smooth, but if you zoom the timeframes out enough…good assets go up. Period. Most people just don’t stay around long enough (blowups, boredom, lost belief) to see the big meaty move. Learn to marinate in your winners.

$RDW update There is a lot to like here: - growing revenues - large/growing contract backlog - stellar technical setup - obvious sector tailwinds but a lot of valid concerns too: - questionable management transparency - established recurring history of dilution - unimpressive cash reserves relative to cash burn, implying more dilution is may be on the way So, with market cap still under $2B - this is a high risk/reward bet in the space sector but DAMN do I love this technical setup: - huge wedge consolidation pattern - brushing against the breakout point now - coinciding with the 2021 IPO levels Looks like a nice spot for a swing trade along the lines of: - breakout with profit targets around green lines (depending how aggressive one wants to play) - stop loss if the breakout fails Intriguing setup 🧐