Red-Flagging a Hot Data Center Play
Why this 110-year-old industrial company is at risk.
▶Call me nuts, but I’m red-flagging a supplier to data centers.
I don’t take this one lightly, because its stock has been a rocket, rising 1,000% over three years.
On the other hand… that’s what snared me into taking a look at 110-year-old Modine Manufacturing, which got its start making radiators for tractors. And not just any radiator, but the Spirex radiator, which helped solve the problem of engines overheating under heavy workloads.
While the Spirex radiator is long gone, Modine went on to become a major factor in thermal management systems in vehicles, which then, in a small way, morphed into data centers pre-pandemic… but more conventional IT infrastructure-related data centers rather than anything having to do with AI.
Which gets us to where we are now and why Modine is ripe for a red flag.
The Bullish Spin
Before I explain why, let’s go to the AI-generated bull case courtesy of my pals at Tenzing MEMO, which was used in researching – not writing! – this report…