Q: CAN YOU EXPLAIN IN SIMPLE TERMS 1.WHAT HAMMOND DOES 2. WHAT FACTORS CAUSED ITS RISE 3. WHAT FACTORS CAUSED ITS CURRENT DECLINE THANKS RICHARD
5i Research Answer:
HPS builds and sells electrical transformers which are a key component to the distribution of electricity. Trends in AI and data centers that have led to increasing demand for electricity which has led to increased demand for products such as what HPS offers. The recent weakenss is on the heels of markets reevaluating the demand picture and how long the runway is. This was spurred by the 'Deepseek' developments a month or two back. More recently, tariff concerns have also been a bit of a weight on shares.