In today’s briefing:
- Federal Signal’s $396M Bet On Refuse Trucks: Could This Trash Truck Deal Get Dirty?
- Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact
- MHI (7011 JP): Laser Power Transmission Positive, Political Support Unclear
- Bloom Energy Stock Tanks 15% After 540% Surge – Is the AI Power Hype Fading?
Federal Signal’s $396M Bet On Refuse Trucks: Could This Trash Truck Deal Get Dirty?
- Federal Signal Corporation has made a strategic move with its definitive agreement to acquire Scranton Manufacturing Company, doing business as New Way Trucks, for an initial consideration of $396 million.
- This deal, announced on September 25, 2025, includes an additional $30 million earmarked for real estate tied to New Way’s manufacturing facilities in Iowa and Mississippi.
- Further, a performance-based earnout of up to $54 million could be paid over the next two years.
Buys Focused in China, Taiwan, and Korea; Bullish Outlook Intact
- We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
- Market dynamics remain overwhelmingly risk-on; with plenty of global liquidity, we expect upside to continue into year-end and the early part of 2026.
- Remain Overweight Taiwan, China, Korea, U.S., and Greece. Many buys in these countries, and also Europe and Japan. EURO STOXX 50 on the cusp of major breakout above 5500
MHI (7011 JP): Laser Power Transmission Positive, Political Support Unclear
- Laser wireless power transmission technology opens new defense, dual-use and civilian market opportunities.
- Japanese politicians inclined to spend more on defense, but worried about the national budget. Likely to split the difference between 2% of GDP and Trump’s demands.
- Aircraft, Defense & Space to drive sales and profit growth through 2030. Buy on dips for the long term.
Bloom Energy Stock Tanks 15% After 540% Surge – Is the AI Power Hype Fading?
- Bloom Energy’s second quarter 2025 results highlighted both robust growth and certain areas of strategic focus.
- The call was led by CEO K.R. Sridhar, who shared that this was the most profitable second quarter in the company’s history.
- Bloom Energy is seeing increased demand driven by the shift towards AI and data center needs for reliable and rapidly deployable power solutions.
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