We came across a bearish thesis on Littelfuse, Inc. on Quality Value Investing’s Substack by David J. Waldron. In this article, we will summarize the bulls’ thesis on LFUS. Littelfuse, Inc.'s share was trading at $253.56 as of December 1st. LFUS’s trailing and forward P/E were 53.42 and 20.33 respectively according to Yahoo Finance. Littelfuse Incorporated (LFUS), a long-standing small-cap electronics manufacturer in the information technology sector, is reexamined in this updated coverage to determine w ...

Core Thesis - Verra Mobility Corporation (VRRM) is positioned as a compelling investment opportunity due to its strong market presence, growth potential, and underappreciated contracts, particularly with New York City [1][4]. Company Overview - Verra Mobility Corporation operates in smart mobility technology solutions across the United States, Australia, Europe, and Canada, focusing on two main segments: Commercial Services (CS) and Government Solutions (GS) [2]. - The company holds a market share of over 90% in CS and 70% in GS, indicating strong competitive positioning [3]. Segment Performance - CS is experiencing high-single-digit growth driven by the rise of cashless tolling and increased toll-road usage, while GS growth is accelerating due to new legislation and the expansion of automated traffic enforcement programs [3]. - The largest customer, New York City, contributes $139 million in annual service revenue, with a recently secured five-year contract valued at $963 million, which includes a 25% increase in recurring service revenue compared to 2024 [3]. Financial Outlook - The consolidated business is projected to generate significant free cash flow, with an estimated $266 million by 2028, and the stock is currently trading at a forward free cash flow yield of approximately 5% [4]. - The anticipated growth in both CS and GS segments is expected to exceed consensus estimates for FY26 and FY27, supported by stronger-than-expected throughput and travel demand [4]. Investment Catalysts - Near-term catalysts include the official announcement of the NYC contract and potential upgrades from analysts, which could further enhance the stock's appeal [4].

Core Thesis - The article presents a bullish thesis for Merck (MRK), highlighting its strong product portfolio including Keytruda, Gardasil, and Noxafil [1]. Company Attributes - Merck is characterized by several bullish attributes that position it favorably in the pharmaceutical industry [1]. Investment Strategy - The article reflects an interest in both long and short trading strategies, indicating a focus on building financial assets for retirement [1].

Core Thesis - Pfizer Inc. is viewed positively due to its strong financials, robust cash flow, and potential for capital appreciation despite recent revenue normalization post-COVID [2][5]. Financial Performance - Pfizer's revenue has decreased from approximately $100 billion in 2022 to $58 billion in 2023, but is projected to rebound to around $64 billion by 2025 due to new drug launches [2]. - The company maintains strong profitability with operating margins near 28% and net margins exceeding 35% [2]. - Pfizer generates over $18 billion in annual free cash flow, which supports dividends, share buybacks, and R&D without reliance on capital markets [3]. - The stock offers a dividend yield near 6.7%, with a historical record of not cutting dividends since the 1940s [3]. Valuation Metrics - Pfizer's trailing and forward P/E ratios are 12.78 and 7.74 respectively, indicating a valuation below the industry average [1][2]. - If the dividend yield reverts to its historical average of 4%, Pfizer shares could imply a price range of $42–$45, suggesting significant upside potential [3]. Technical Analysis - Technical indicators show a medium-term bullish trend with a higher-low/higher-high structure since May, positive RSI and MACD momentum [4]. - Key retracement support is identified around $25.10–$25.20, providing a disciplined entry point for investors [4]. - Upside targets are set at $27.50 and $29, with a stop-loss below $24 to mitigate downside risk [4]. Strategic Outlook - The company has a strong pipeline of new therapies and has engaged in strategic M&A with Seagen, which supports its long-term growth prospects [5]. - Despite a 17% depreciation in stock value since the last coverage, the overall investment thesis remains intact due to attractive cash flow and valuation metrics [5].

Core Viewpoint - The article discusses the conditions under which the author would reconsider their bullish investment thesis, emphasizing the importance of understanding international market dynamics [1]. Group 1 - High-quality market opinions require a comprehensive understanding of international factors [1].

Core Thesis - Taseko Mines Limited (TGB) is viewed positively due to its strong asset base and growth potential, particularly from the Florence in-situ copper project, which is expected to significantly enhance the company's EBITDA and production capacity [1][5]. Company Overview - Taseko Mines is a Canadian-based, US-listed junior copper miner with one producing asset (Gibraltar mine), one near-term project (Florence), and three large-scale greenfield developments [2]. - The Gibraltar mine has a 32-year mine life and produced 106 million pounds of copper in 2024 at a cash cost of $2.30 per pound, with a projected increase to 120 million pounds in 2025 [2]. Florence Project - The Florence project, with buildout costs of $235 million, is expected to produce 85 million pounds annually at a cash cost of $1.11 per pound, placing it in the first quartile of the global cost curve [3]. - The project is anticipated to begin ramping up in Q4 2025 and contribute approximately $325 million in EBITDA, in addition to Gibraltar's $250 million [3]. Long-term Growth Potential - Taseko has three greenfield projects in British Columbia: New Prosperity, Yellowhead, and Aley, with Yellowhead prioritized for development due to its superior economics [4]. - By 2027, TGB's projected copper production of 88,000 tons is valued at $12,841 per ton, significantly lower than peers, suggesting a potential for a 50%+ upside in stock valuation if copper prices rise [4].