The alpha Brief: Insights on Quant Investing and the alpha Brief Portfolio (aBP)

I am rating Diodes Incorporated a Strong Buy because the company is entering a margin led earnings inflection driven by a durable mix shift toward higher value automotive, computing, and industrial markets.

Western Digital sits at the center of the AI data explosion. Its HDD and NAND flash platforms serve as essential infrastructure for AI training data, inference workloads and cloud storage, where capacity scale, cost efficiency and reliability are critical.

I am rating Penguin Solutions a Strong Buy because the company is at a structural inflection point monetizing AI inference infrastructure where memory performance is the primary bottleneck.

I rate Poet Technologies Inc (POET) a strong buy as it is positioned at the intersection of AI infrastructure and silicon photonics, addressing a critical data center bottleneck as electrical interconnects struggle to scale with next generation AI workloads.

I rate Astera Labs a Strong Buy due to its leadership in next gen AI data center connectivity and first mover advantages in PCIe, CXL and fabric scale interconnect solutions.

I’m rating Dana a STRONG BUY because the company has already completed a structural reset, simplifying its portfolio, embedding cost savings, and materially improving balance‑sheet flexibility—while the market continues to price it on legacy assumptions

I rate NVIDIA a Strong Buy. NVDA is the key platform for global AI infrastructure, with unmatched control over compute, networking, systems and software, making it the default architecture for large scale AI workloads.

Kodiak is leveraging a tight compression market to achieve higher margins, stronger cash flow, and clear growth by 2026.

I am rating Ituran Location and Control a Strong Buy because it is being priced like a hardware manufacturer but performs like a high margin SaaS style telematics platform.

We rate this Aluminium Company a Strong Buy because the earnings setup has improved quickly, helped by stronger aluminium prices, firmer regional premiums, and visible operational recovery

SSR Mining ended 2025 with $471Mn in operating cash flow and $241.6Mn in free cash flow. All this while its most scrutinised asset isn’t fully operational. And I think the market hasn’t caught up to that yet.

PBF is rated a strong buy for three main reasons: the Martinez refinery is restarting, the West Coast oil product market is tightening, and the company is significantly cutting costs through its Refinery Business Improvement (RBI) program.

Centerra Gold is given a strong buy rating. It trades at a significant discount on forward P/E and EV/EBITDA compared to sector medians. Backed by a strong balance sheet, the company is driving growth through self-funded cash flows and active share buybacks. While geopolitical and operational risks remain, Centerra’s deep value and disciplined capital allocation make it a compelling investment opportunity in the mining sector.

Newmont is a strong buy due to its record 2025 financials. Despite a planned production dip, the company is effectively managing costs and leveraging growth from projects. Currently mispriced with a high ROE relative to peers, Newmont is prioritizing shareholder value through a $6 billion share repurchase program and increased dividends. Its diversified global operations and robust balance sheet make it a wise investment, even without further gold price increases.

We rate Shell as a strong buy because the company's leaders are making some structural improvements, cutting costs, and giving back a lot of cash to shareholders something that the market has not appreciated.

AI Memory Demand Is Reshaping the Industry and Micron Technology [MU] is experiencing unprecedented demand for high value AI memory products especially HBM, advanced DRAM and data center grade NAND driving tight supply conditions expected to persist through 2026 and beyond.

Despite unprecedented DRAM/NAND inflation, DELL protects margins through instant repricing, shorter quote windows, and list price resets executed within an hour. AI servers operate at mid single‑digit margins even at scale.

RTX demonstrates strong financial metrics, outperforming the sector median on key valuation ratios, including FWD non-GAAP P/E and FWD EV/EBITDA, which should reassure investors that its valuation premiums are justified.

Summary I’m rating this business a Strong Buy because it’s combining better operating execution (record product yields and near-full utilisation) with a steadily growing logistics platform, which can keep cash returns durable even when the cycle turns. The next 12–18 months have clear catalysts: continued expansions across the logistics and NGL chain toward a large 2027 run-rate EBITDA goal, plus persistent cost and reliability work that should widen margins as market conditi

Investment Thesis The company operates in high-growth, underpenetrated markets with a dominant position, benefiting from strong network effects and technological advantages. Despite temporary regulatory and macroeconomic headwinds, the business remains well-managed, with a clear path to sustainable profitability. Sales, EPS, and free cash flow are projected to grow at 15%, 40%, and 45% CAGRs, respectively, over the next five years, supporting significant stock price appreciat