When the Government Becomes Your Co-investor
Summary
Host Tyler Crowe joins Matt Franl and Lou Whiteman to discuss the growing trend of government equity stakes in companies, analyzing deals like Intel and L3Harris through a national security lens. The trio also reviews Forgent Power Solutions' strong earnings, highlighting its massive backlog and margin expansion driven by grid modernization needs. Finally, they address investor discipline during periods of heightened market volatility, emphasizing the importance of sticking to long-term theses despite daily price swings.
Topics discussed
Introduction: Investing with government involvement
Forgent Power Solutions Q4 earnings overview
Forgent: Profitability, guidance, and EPS boost
Forgent: Massive backlog and margin analysis
Forgent: Unanswered questions and customer concentration
Forgent: AI trade vs. grid modernization demand
Forgent: Backlog timing and supply constraints
Sponsor: Charles Schwab and Thinkorswim
Elmet Group: $450M DoD investment reaction
Government equity stakes: Historical context
Is government co-investment a permanent shift?
Investor perspective on government partnerships
European models and pension fund dynamics
Case study: L3 Harris munitions capacity deal
Social Security reserves and passive investing
The pendulum swing: Reconsolidation trends
Sponsors: Fundrise and Range Rover Sport
Mailbag: Staying disciplined in volatile markets
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