$MOD
A lot is happening with Modine right now, and I think the market might be overlooking the bigger picture
First, Modine is planning to spin off its legacy automotive focused business and combine it with Gentherm. This would leave Modine with a much greater focus on data center cooling, commercial HVAC and refrigeration.
And the data center business has already grown nearly 100% YoY
But here’s where things get interesting
Hunterbrook recently reported that it found what appeared to be Modine’s internal business data sitting in a publicly accessible GitHub repository.
Apparently, during a migration of internal reporting systems, a developer’s repository was left public, exposing over 100,000 rows of data across 41 tables
Hunterbrook spent about a week investigating the files and reported some pretty eye opening numbers
Google: $4B in cooling agreements, plus another $4.5B in potential demand
AWS: Roughly $12.4B in estimated demand, including over $700M in firm orders
Nearly $23B in modeled demand across the database.
Modine was reportedly working to qualify a liquid cooling system for NVIDIA’s requirements.
Obviously, $23B in modeled demand is NOT $23B in confirmed revenue. A lot of this is potential business, and the leaked data hasn’t all been independently verified
But here’s why the spin off makes this even more interesting
Modine is separating its automotive focused business to concentrate more heavily on its climate solutions operations, including its growing data center cooling business
We’re potentially looking at a company with a much more concentrated focus on AI infrastructure, alongside reported opportunities with some of the biggest companies in the world
The biggest question is how much of this pipeline actually turns into revenue & how much growth is already priced into the stock
Hunterbrook also disclosed that its affiliated investment firm is long MOD, so keep that in mind when reading the report
Here’s the link to the report (https://hntrbrk.com/investigations/modine)
My position is I’m long 18,183 shares of $MOD at $184.99
