Modine Manufacturing (MOD)

The sleeper story is that Modine just hired an army of 1,200 workers who are sitting around waiting for factories to open, creating a $10-12M quarterly cash burn that nobody's modeling correctly. Yes, data center demand is real and the $2B target by FY28 looks achievable, but they're building 60% more capacity than needed while margins collapse and they've stopped telling us the backlog number. The binding constraint isn't demand, it's their ability to execute this massive operational transition without blowing up the P&L, as evidenced by the CEO admitting 'we try to do something a little bit different...and it was costly.' My view changes if Q4 margins actually normalize above 20% as promised, proving they can scale efficiently.