FIX - Up 100% In 4 Months - Building Data Centers As Fast As They Can!
Summary
TLDRThe video script discusses two companies, Modine and Comfort Systems USA (Fix), that are capitalizing on the immense demand from tech giants like Google, Amazon, and Microsoft to build massive data centers for their AI and computing initiatives. The demand is so high that these construction firms can barely keep up, leading them to acquire other companies and charge premium prices. The narrator enthusiastically examines their financials, growth prospects, and stock performance, positioning them as compelling investment opportunities to ride this AI-driven construction boom.
Takeaways
- đ Modine and Comfort Systems USA (ticker: FIX) are benefiting from a surge in demand for data center construction driven by tech giants like Google, Amazon, Microsoft, and Meta.
- đïž These companies are involved in constructing massive data centers required to support the computing power of AI systems like Jensen's GPUs and Cerebras' supercomputers.
- đ Modine's stock is up 100% over the last 4 months, while FIX has gained 107% in the past year, largely since October 2023.
- đ° FIX's revenues grew 26% year-over-year, and its backlog of orders increased by $1 billion (20%) to $5.2 billion, with some customers paying upfront.
- đ The demand for data center construction is so high that these companies are being selective about clients and acquiring other firms to meet the unprecedented demand.
- đ„ The speaker believes this is an extraordinary opportunity fueled by tech giants' willingness to spend heavily to enable transformative technologies like AI.
- đ FIX's earnings are expected to grow 26% in 2024 and 13.6% in 2025, reflecting the sustained demand for their services.
- đ”ïž The speaker researched FIX by analyzing its earnings reports, CEO commentary, stock charts, and technical indicators to identify potential buy-in opportunities.
- đ The speaker suggests investors should strategically position themselves to capitalize on this once-in-a-lifetime opportunity by investing in companies like Modine and FIX.
- đ Further analysis is required to determine the optimal buy-in prices for these stocks based on technical indicators and potential market corrections.
Q & A
What companies are discussed in the script?
-The main companies discussed are Modine, a company in the air conditioning business, and Comfort Systems USA (ticker symbol FIX), a building contractor company.
What is the reason behind the growth of these companies?
-The growth is driven by the demand from big tech companies like Google, Amazon, Microsoft, and Meta to build and revamp massive data centers to handle the accelerated compute capacity required for advancements like Jensen's GPUs and Char's supercomputers.
How are these companies meeting the high demand?
-Both Modine and Comfort Systems USA are going out and acquiring other companies to increase their capacity and meet the demand. They are also being paid upfront by clients to prioritize their projects.
What is the significance of the positive cash flow being greater than revenue for Comfort Systems USA?
-It highlights the high demand and the clients' willingness to pay upfront to secure their projects, showing the favorable position the company is in.
What is the process followed by the speaker to research Comfort Systems USA?
-The speaker looks at Seeking Alpha for stock performance and earnings estimates, listens to the company's earnings call, analyzes the CEO's comments, and evaluates technical indicators like moving averages and Fibonacci retracements.
What is the significance of the growth in the backlog for Comfort Systems USA?
-The increase in backlog by $1 billion (20%) from the previous year indicates a strong pipeline of future work and revenue for the company.
How does the speaker view the future potential of these companies?
-The speaker believes that the demand for building data centers will continue for at least five years or more, presenting a significant opportunity for companies like Modine and Comfort Systems USA.
What is the next step mentioned by the speaker?
-The next step is to determine the optimal buying price or entry point for the stocks of Modine and Comfort Systems USA, considering technical indicators and potential dips or corrections.
What is the speaker's overall assessment of the situation?
-The speaker views this as an opportunity of a lifetime, driven by the massive investments and demand from big tech companies to build the infrastructure required for their future advancements and offerings.
What is the speaker's call to action at the end of the script?
-The speaker encourages listeners to sign up for their Platinum program, which is currently on sale, to get insights on determining the buying opportunities for Modine and Comfort Systems USA stocks.
Outlines
đ Discovering the Modine and Comfort Systems USA (FIX) Companies
The speaker discusses a video they made about Modine, a company in the air conditioning business, whose stock has risen 100% in the last four months due to revamping data center cooling systems. A viewer asked about Comfort Systems USA (FIX), an $11 billion building contractor involved in constructing massive data centers for tech giants like Google and Amazon. The speaker researched FIX and found their business is booming due to high demand for data center construction, leading them to acquire other companies to meet the workload.
đïž FIX's Rapidly Growing Business and Financial Performance
The speaker examines FIX's recent earnings report, which highlights their 26% year-over-year revenue growth, $5.2 billion backlog (up $1 billion from last year), and strong financial position. The CEO, Brian Lane, explains that big tech companies are hiring them for data center construction, both modular and on-site. FIX is being selective about clients due to overwhelming demand and has been paid upfront for some projects. The stock has doubled since October 2023, and FIX has acquired two more companies to keep up with the workload.
đ Evaluating Investment Opportunities in FIX and Modine
The speaker expresses amazement at the unprecedented demand and profits in the data center construction industry, driven by tech giants' ambitions to revolutionize various sectors. They plan to analyze FIX's and Modine's technical indicators, such as moving averages and Fibonacci retracements, to identify ideal entry points for investment. The speaker encourages viewers to join their investment program to capitalize on these unique opportunities in the companies supplying the hammers, nails, and concrete for massive data center projects.
Mindmap
Keywords
đĄData Centers
đĄHVAC
đĄBacklog
đĄModular Construction
đĄBig Tech
đĄJensen/Charle's
đĄAcquisitions
đĄPositive Cash Flow
đĄBonanza
đĄTechnical Analysis
Highlights
The company Modine, which is in the air conditioning business, is experiencing explosive growth as they are revamping and rebuilding air conditioning systems in data centers.
The commenter 'printer gang Investments' asked about the company 'fix' (Comfort Systems USA), which is a $11 billion building contractor involved in constructing data centers.
There is a huge demand for building massive data centers to handle the accelerated compute capacity driven by advancements like Nvidia's Jensen GPUs and supermacro computers.
Companies like Modine and Comfort Systems USA are being bombarded with demands to build data centers, and they are acquiring other companies to meet this demand.
Both Modine and Comfort Systems USA are experiencing rapid revenue growth, with Comfort Systems USA's revenues up 26% from the prior year and a backlog worth $5.2 billion.
Comfort Systems USA is being selective in choosing clients, turning away some business, and prioritizing existing customers due to the overwhelming demand.
Comfort Systems USA's stock price has doubled in the last four months, from $153 in October 2023 to $312 currently.
The speaker believes that the demand for data center construction is an opportunity of a lifetime, and he recommends finding the right entry point to invest in companies like Modine and Comfort Systems USA.
The speaker emphasizes the importance of extensive research to determine the fair market price and potential dips in stock prices to identify buying opportunities.
The speaker offers access to his Platinum program, which provides guidance on investment opportunities like Modine and Comfort Systems USA, related to the data center construction boom.
The speaker sees the data center construction demand as a phenomenon driven by tech giants like Amazon, Google, Microsoft, and Meta, who are investing heavily to profit from upcoming advancements.
Comfort Systems USA has acquired two new companies since January 1st to help meet the demand from big tech companies.
The speaker highlights the unprecedented nature of the current data center construction boom, which even the CEO of Comfort Systems USA has never experienced before.
The speaker draws a parallel between the data center construction boom and his previous video on a company called "Your Future," which offers access to knowledge for $339.99 a month.
The speaker believes that the tech giants are investing heavily in data centers because they know the potential profits and world-changing capabilities of the upcoming advancements will make the construction costs insignificant.
Transcripts
I did a video last week on a company by
the name of Modine it's in rine
Wisconsin and they're in the air
conditioning business and I explained to
you that their business is exploding
because they're revamping and uh
rebuilding the air conditioning systems
in the data centers and uh their stock
is up 100% over the last four months and
I I got a uh response in in the comments
from that video uh that basically asked
me uh it it was from printer gang
Investments that that's the guy's handle
and he says I like my D Modine what's
your opinion of fix fix in small letters
and I had I I didn't know what he meant
but so I I searched it and I found that
fix is actually a building contractor
it's a 11 billion company uh and it's
it's it stands for or it's its name is
Comfort Systems USA and so uh I I looked
at it and I want to walk you through the
steps I took to familiarize myself with
fix uh Comfort Systems USA because what
I realized is yeah uh Google and and
apple and Amazon and Microsoft are
throwing a ton of money at at getting
these uh data centers revamped to handle
the accelerated compute capacity that is
coming with the with Jensen's gpus and
Char's um super macro computers but what
I what I what I'm learning is there's
there's a whole other element of this
that is not Tech it's not semiconductor
it's it's brick and mortar not brick but
actually steel and and and and
fiberglass and and and concrete to build
these massive data centers uh thousands
of square feet millions of square feet
and somebody's got to build them and and
it's a demand that wasn't there two
years ago and these companies are being
bombarded and in both Modine and fixes
uh cases they're going out and buying
other companies to help them get this
done such as in in fix as I'll explain
to you they they can build it from the
stick that is come on site and build you
what you want or they have plants
modular plants where they'll build the
parts and then ship it to you and put
this thing up and they're their business
is growing faster than they can keep up
and in both cases um both Modine and and
comfort systems they're going out and
buying other companies to help them meet
the demand and as they say usually what
happens is we buy these companies and
within three years they've tripled in
size because of the demand of for what
we're have we're getting and and they're
saying uh our our as as we're our
revenues are going up our margins are
going up equally if not greater so we're
we're getting better business from
people we know that can pay us and
actually pay us up front he said he said
in fact we had more positive cash flow
this last quarter then we had Revenue
because people were paying us in in
advance to build for them so that they
could move to the front of the line
that's right he said their their
positive cash flow was greater than
their revenues think about that that and
and and and the work isn't done yet and
won't be done for a matter of of of
months these
people are in a Bonanza and I think the
key now is to figure out how to how to
price their stock and and where to buy
in but let me first take you to to my
computer and show you how I
research um uh fix to come to the
conclusion that this is something I have
to own I'll get to that right after I
explain this is not Financial
advice best of us investors presents
Carrie
GM so the first thing I do is I go to
Seeking Alpha and I come across this
chart that says they're up uh 107% in
the last year and I look at it and I can
say say Well it all happened basically
since October the 26 2023 it's gone up
uh I I then always go and look at their
earnings and um what their earnings
estimates are and it says that uh their
earnings are going to go up 26% in 2024
and then another 13.6% in
2025 uh I then go back to the summary
and I said well how big of a company is
this it's a market cap of 11 uh .2
billion so it's not a it's not a monster
but it's a good siiz company the next
thing I do is uh I go to this this is
their annual report um our quarterly
report fourth quarter it was on February
the 23rd so it's pretty current and I
come in here and I I I basically say
play the call I forward it up to where I
get to the CEO and and he starts telling
me about his company his name is Brian
Lane and he's uh he's going to explain
to me how they've had a a banner quarter
and how it's How their company is
growing Leaps and Bounds and he he's
going to tell me that their their growth
is basically because the big tech
companies have been calling them and and
telling them we need you to build us
some data centers and you can both you
you you have you can build build them
what they call stick or you can build
them in modular and and he tells me that
that his business's revenues are up 26%
from the prior year and he and then he
goes on to tell me that he has a backlog
of uh $5.2 billion worth of orders some
of them in particularly the modular ones
he's been paid up front on them um so
that and that that backlog is up a
billion dollars from what it was last
year that's
20% um and and that um that's going to
give them they're they're booked for all
their work work uh for the next three
quarters and big Tech is asking them to
to book more and and basically he's
saying we're having to be pretty um
discriminatory as to who we do business
with and we've got to deal do business
with those that we've done business in
the past so we're turning a lot of
people
away yeah that's what I found so then I
said well okay let's let's look at uh
how is how is their price how's their
stock doing and so I come over here and
I look at their their chart and and I
see that um I could could have bought
this stock back on October the 23rd 2023
for about um
$153 and today it's selling for uh uh
312 so it's doubled in price in the last
four months and and so then my question
is well is that a flash in the pan has
has the has uh the the market grown into
it and and it's it's just going to go
down from here and it'll come down and
cover this Gap at $250 in the next
couple weeks or is it going on and I I I
go back to the the earnings call and and
he tells me he's bought two new
companies since January the 1st uh to
help them meet the demand that they're
getting from Big tech and and again he
he he says uh um our our our uh our
precedent right now is good working
conditions for our employees and our
hard workers he said because these
people have been with us for decades and
we want them to be working in good
conditions and we want them to get paid
extremely well because they're they're
uh talented uh workers and then we have
to go out in many communities that were
doing this work in in higher subs and we
got to pay them the top price so we get
best best of price for everything that
we're
doing okay this sounds to me just like
Modine which I did a a u a video on last
week these people are being their doors
are being beat down to say um help us
get this done it's going to take five
years or more um and we need you and
whatever it's going to cost we can pay
it it and we will pay it and you move us
to the front of the line and that's
what's happening with um comfort systems
of USA ticker symbol fix
fix uh I don't know that I have ever
seen anything quite like this before I I
wasn't attune to the build out of um the
internet I don't I I did not I wasn't
aware of that there there is so much
money being thrown around right now to
get this done and get it done as fast as
you can because the profits that we will
be able to make off of it are going to
make the cost that we're spending
insignificant that's what we're looking
at I did a video just uh a short video
just
yesterday on um your future is available
to you if for
$339.99 a month uh and that's that's
that's a high price because these people
are going to deliver you all the
knowledge in the world and they know it
they know that they're going to change
your life they know they're going to
change education they know they're going
to change the medical world they they
know they're going to cure hunger
they're going to cure uh the global
warming they know this and they're
spending in money as fast as they can to
get to where they're going and all the
attention right now is on on Nvidia and
super macro because they are they are
the recipients of the money and and
Jensen and Charles are figures you
recognize but you don't know Brian Lane
you've never heard of him and he right
now is trying he's running as fast as he
can to keep up with this something and
he's no spring chicken um he has never
experienced anything like this in his
life and probably never will but right
now he's captivating on it and I think
you and I should as well okay so we're
ahead of the game um so what do we do
next well I what I do next is I figure
out where is the buyin price what do I
do for that I go back to technicals I
look at at fix and it's got a gap it
today at
$315 it's got a gap all the way down at$
250 uh is it going to go that way it's
it's nday moving uh average is 301 is
that where you buy in it's got a
Fibonacci retracement of 240 what's it
what's its fair fair market Price we got
to do some research and we got to come
up with where is where is this when when
something happens that is negative to
the market where is this going to drop
to um with Modine selling right now at
90 its 50-day moving average is uh
71 its 9 day is uh 89 and its fibon is
65 so this is what I will do next is
figure out where is my buyin opportunity
when when the market gets scared for
whatever reason what's it going to come
into and and where am I going to buy at
it because that's I don't want to buy it
at its peak right now uh so that's what
I do on my cheat sheets and that's where
you come to uh best of us investors you
sign up for our uh Platinum program uh
it's on sale right now at 50% off you
can get the coupon on that in the
description and let's figure out where
do we buy fix where do we buy Modine
because these people are the the the the
the Hammers and the nails and and the
concrete and the and and in the the
sheet metal that are going to build
these massive data centers that
companies like Amazon Google uh
Microsoft and and and um meta have to
have in order to profit off of what they
are going to deliver to us next okay uh
come to the website get on the bus and
let's uh let's make this an opportunity
of a
lifetime
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