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Sunday, November 1, 2026

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@StableBread

Fajasy on X

When I first wrote up Quantum $QMCO on May 6, 2026, at $7.36/share, it traded at ~0.85x EV/Sales. By my August 16 update, where I said I’d look again if its sales multiple gave back part of its re-rate while demand still outran supply, $QMCO was at $26.11. The stock then ran another 32.1% to a $34.50 close on October 2, 2026, a week before $QMCO fired its CFO. At $20.25/share, $QMCO has a market cap of $798.1M and an EV of $825.3M ($902.3M on 44.6M diluted shares - $77.0M of cash, including the $22.6M warrant and option holders would pay to exercise, with no debt). That’s 2.8x TTM revenue, down from 4.9x at the October 2 peak and 3.7x at the $26.11 price in my August update (measured the same way), but still 34.4x the September quarter’s $6M ±$1M of adjusted EBITDA guidance, annualized. So $QMCO isn’t cheap on profits yet, since its adjusted EBITDA margin is still under 10%. The sales multiple has given back part of its re-rate, and by management’s account, demand still outran supply as of the June-quarter call.
@ACapitalLP 2 clicks

A Capital on X

𝙀𝙭-𝘼𝙣𝙩𝙚 𝙫𝙨. 𝙀𝙭-𝙋𝙤𝙨𝙩 𝘾𝙖𝙩𝙖𝙡𝙮𝙨𝙩𝙨 One of the more important distinctions in catalyst-driven investing is “ex-ante” vs. “ex-post” catalysts (my words). Both can offer significant valuation dislocations, but the mechanics of realizing that value are fundamentally different… “Ex-ante” trades are cleaner. You identify a gap between price and intrinsic value, with an upcoming event (spin-off, asset sale, regulatory decision, etc.) that can force the market to reassess the security. You have a mechanism for value realization and at least (some) visibility into timing. “Ex-post” trades are much harder. Something unexpected happens, investors “shoot first, ask questions later,” and the stock collapses. Deep-value and distressed investors love these situations because the apparent discount to intrinsic value can be enormous. But the event that created the dislocation does absolutely nothing to resolve it. Look at $BAYN, where an identifiable June litigation catalyst helped drive a meaningful rerating. Contrast that with $CODI following its Lugano accounting scandal, where the stock collapsed from the high teens into the single digits. It took months of financial reporting progress, improved visibility, and renewed confidence for the stock to recover even partially. On the flip side, look at $VRRM following its major contract loss, where what initially looked like a massive overreaction was followed by further deterioration, with the stock now at $2.80. The irony is that ex-post trades almost always require a new “mini ex-ante” catalyst to unlock value. Otherwise you’re simply betting that the market eventually recognizes something is cheap. That can take years, and even then the security may never recover anywhere close to its prior valuation. The lesson is that a catalyst creating a valuation gap is not the same as a catalyst closing it. Cheapness is not a catalyst, and the magnitude of a selloff tells you very little about the probability of recovery…
@StableBread

Fajasy on X

I found no named data center or space customer, and no disclosed revenue from either, in TOYO Co., Ltd’s $TOYO filings, releases, or decks, even though its pitch increasingly mentions AI and space. The mentions are then-CEO Junsei Ryu’s November 2024 line about grid demand from “data centers, electric vehicles, and industry,” CEO Takahiko Onozuka’s May 2026 plan for a U.S. R&D center to help “power the AI economy,” a Citi $C investor webcast on space and AI on July 8, and “data-center applications” among the end markets for the ~$240M of module contracts, with no dollar split. The space pitch rests on the HJT (heterojunction) cells $TOYO plans to make in Texas. The slides CTO Dr. Aihua Wang and Chief Technical Advisor Dr. Jianhua Zhao presented at the Citi webcast priced HJT modules at $0.46/W, vs. $70-170/W for the multi-junction cells satellites use today. But HJT cells turn only 20% of sunlight into power in space, vs. 30-34% for multi-junction cells, and the same slides say efficiency matters more than cost in space, since a more efficient cell gets more power from the same payload. $TOYO’s Analyst Day deck later called the comparison “an internal technology evaluation” and “not a disclosed business line.” Rhone Resch, $TOYO’s Chief Strategy Officer, still told analysts that “every single data center that goes up in space is going to be solar powered.” Data centers and space add no disclosed revenue today, and none of my valuation cases counts new business from either, which, if you were being optimistic, makes them a free option on a cell technology $TOYO doesn’t yet produce.

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TSOH Weekly Roundup (10/30/2026)

Markel spent $315 million repurchasing shares in Q3 as Thrive agreed to buy ADT for $7.6 billion and Hasbro cited rising adult toy demand.

BBW $327M
TSOH Investment Research 1 click

OSS Q3 FY12/26 Earnings Analysis

One Stop Systems grew Q3 continuing-operations revenue 36% to $12.6 million, raised FY2026 revenue guidance to $45 million, and used $11.8…

OSS $129M
Cestrian Capital Research 1 click

2025 Bilbel Capital Annual Letter

Bilbel Capital’s 2025 letter details CareCloud’s $16.5M Medsphere acquisition, targeting $35–40M EBITDA in 2026, and recounts losses from…

CCLD $75M
Bilbel's Substack 2 clicks

NLOP - I'm Buying Again

NLOP’s selloff after a weak KBR property sale has created a high-potential IRR entry point.

NLOP $133M
Nat Stewart - Stock Picking Newsletter 1 click

Programmatic DSPs

Entravision’s Smadex AdTech unit generated 104% revenue growth and 378% EBIT growth, becoming the main upside driver after Meta ended its…

EVC $588M
The Mikro Kap 1 click

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