M-Tron Industries (NYSE:MPTI) — mrkt cap $200mm; Price $69.8; EV/EBITDA 26
SPECULATIVE POSITION INITIATED. MPTI is a U.S.-based, vertically integrated engineering and manufacturing firm specializing in filters, oscillators, and resonators—small electronic components essential for enabling precise communication and navigation in satellite, defense, telecom, and radar systems. The overall defense related electronic components market is poised for significant growth though the company is trading at the higher end of fair value (4x P/S). However, further upside potential is significant due to MPTI’s positioning as a “drone stock,” providing critical components to drone and drone-related systems. Fundamentals and sentiment are likely to improve beyond management’s expectations, though the current pricing limits our position sizing. Special thanks to subscriber Brent F. for bringing this opportunity to our attention.
Ferragamo (MI:SFER) — mrkt cap €1.01B; Price €6.12; EV/EBITDA 7.1
PASS. Ferragamo is a leading luxury brand globally, renowned for its leather goods and shoes, which constitute the majority of its revenue. The brand has faced challenges, with revenues peaking in 2016 and declining since. While it maintains strong appeal among older generations, it has struggled to connect with younger audiences. Current CEO Marco Gobbetti, formerly of Burberry, has been in his role for two years. What was initially expected to be a swift turnaround is evolving into a longer-term effort. Significant time and strategic marketing will be required to regain relevance with younger consumers. For now, we prefer to remain on the sidelines.
Freightos (NAS:CRGO) — mrkt cap $89mm; Price $1.81; EV/EBITDA NA
MORE RESEARCH NEEDED. Freightos is a freight booking and payment platform connecting importers and exporters globally. It competes with FlexPort and traditional freight forwarders that directly manage cargo shipments for customers. The global freight industry remains antiquated, undergoing early stages of digital transformation. CRGO has achieved double-digit growth in both carriers and buyers over the past several years. However, questions remain regarding its long-term unit economics. Further research is needed to understand the firm’s strategy and competitive positioning against FlexPort. Thanks to subscriber Herbert Z. for bringing this company to our attention.