Report by Aitken Advisors

James Aitken believes that society remains in the foothills of our collective AI journey. As powerful as it has been, as many questions as we have about return on capital employed, it seems to him that the AI juggernaut is accelerating. James isn’t trying to take advantage by catching the Dell, Micron, SK Hynix, Samsung Electronics or related AI pianos. (Although he points out that if Jensen Huang builds out his desired ecosystem, Nvidia is not that expensive). What he’d like to buy during this turbulence is more Shell, then BHP, RIO, Glencore and Tivan. In other words, more of the ‘picks and shovels’ winners of the AI boom and winners of national resilience agenda with dependable management, and excellent execution. That includes Bloom Energy, too, which James believes will soon jump from small to megacap, missing out midcap.

Report by Forensic Alpha

SMCI moves to Forensic Alpha's maximum ‘10’ risk rating after its 10Q revealed extreme working-capital swings: receivables surged from $2.5bn to $11bn in one quarter, heavily concentrated in a single customer, while payables ballooned to $13.8bn, masking weak cash conversion. Bloom Energy also remains a top concern, with a widening gap between adjusted and statutory earnings, rising contract assets and growing reliance on off-balance-sheet JVs. NiSource’s score rose on higher DSO and advances to unconsolidated VIEs, while Cummins saw a jump in sales to equity investees to $1.70bn, with receivables outstanding from these investees of $523m, suggesting extended credit terms. Other stocks flagged last week include Amentum, Atlassian, Becton Dickinson, Ford and Impinj.

Industrials

Renewables are the future but the transition is being fumbled - due to the nature of its products Northcoast sees Generac (TP $292; 20% upside) as having the most near-term opportunity and Chart Industries (TP $209; 20% upside) winning as it benefits from the growth in small-scale LNG projects that are often used for utility load management solutions. Looking over the horizon, Bloom Energy (TP $23; 40% upside) and Capstone Green Energy (TP $7; 160% upside) will find success thanks to their unique power generation solutions.

Industrials

Northcoast recently expanded their coverage to include the Clean Technology space. BE is one of their preferred plays - its solid oxide module requires little modification to enter multiple applications with a TAM of over $2.6tn. Discusses BE’s disruption of the centralised grid model and its best-in-class electrical efficiency (at rapidly reduced costs). With an experienced management team and multi-year revenue opportunities, BE is ideally placed to benefit from the global shift to alternative energy generation and hydrogen use. TP $35 (50% upside).