FRM offers a strong bull thesis driven by memory volume growth (avoiding commodity risks) and significant optionality in quantum computing.

Yeah, first on the table today is form factor. This is ticker symbol FRM.

Okay. So, if you see a case for higher volume, but you're worried about the memory prices themselves, then I have a stock for you that can allow you to profit off the higher volume without worrying about the commoditization.

That company here, as mentioned, is form factor.

Now, what form factor does is it makes probe cards. probe cards. Basically, as the memory is getting made, they need to have these little electrical connectors touch down and make sure that they work before they go out of the factory to the customer.

And what we're talking about really, really small things that it is testing. And so all of these probe cards have to be custommade. So what this does is form factor makes these probe cards.

It is going to be the company running those probe cards throughout that generation of memory, but also works with its customers because it's having to work ahead several generations getting into the design phase to make sure that when production is ramped up, it already has the probe cards ready to go.

Total revenue since 2017 component growth rate is only 6%. So that's not that crazy. Uh but there has been a nice jump over the past six months to a year. That would indicate exactly what you're talking about.

You're kind of getting ahead of things. Profit margin has gone up a little bit over that same time as well.

Valuation is a little bit steep though. Uh enterprise value to sales is almost eight and the forward price earnings multiple is 33.

is the idea here though that the volume is going to increase more than enough because remember even in the most I think the most recent quarter Micron said hey we didn't change our volume at all like so the the capacity additions that we're talking about bringing online in memory are not going to be hitting until 2027 at the earliest 2028 2029 that's when you would really see this benefit is they're kind of doing that groundwork right now and then the future growth is going to be the driver of the business.

So maybe paying 30 times earnings isn't that big a deal if you're have an opportunity to double, triple, quadruple profits over the next few years. The market is looking ahead to the higher volume down the line and pricing that in.

Now you know one of the in fact not one of the the top customer for form factor is SKH and SKH recently partnering with Nvidia. They're integrating things into the design phase.

SKH Highix recently having its own US IPO raising money. It needs to increase production and so that does point ahead to good times for form factor.

Another thing I'll point out here is it's not just memory. There are other ways that probe cards are used and and one intriguing area of optionality is quantum computing. CQITS also need probe cards and form factor is getting into many test designs here for quantum computing companies.

Now, here's the wild card here. If all of a sudden a quantum computer company has a breakthrough and we need to start scaling up rapidly going into more than just testing, more than just experimental, now we're actually into production mode.

Formfactor is the one who already has the design of the probe cards for the thing that is ramping up. So, it could very quickly turn into a tailwind before anyone's realized what's happening.

the one that has my most attention that I got to dig into a little bit more is form factor. Maybe it's something about the ease of understanding that testing equipment, and I know that's one of those kind of forgotten businesses.

It's it's difficult to develop these products. They're really precision products. I mean, I've seen this. I knew somebody who owned a spring measurement company and just did a phenomenal business because like who's going to come in and develop another spring measurement device.

It's just it's it's a niche product. So you can have a really good business and then you actually grow up with your customers like you're saying. So as we have more expansion in the memory market, they're just going to ride right along with that.

That's a great core thesis to me. The optionality in quantum computing that sounds really compelling to me.