Our Run to One portfolio looks at sub-$1 stocks for their long-term potential as multi-baggers. Think of these as higher-risk, long-term “lottery tickets.” Many of these stocks have their challenges—that’s why they trade under $1—but we’re on the lookout for real companies with real revenues and solid management, not pump-and-dump schemes.
Now, almost 11 years later, the stats across the 49 stocks currently in it have been quite impressive, showing that long-term patience pays off.
As the data center industry undergoes transformation, there will be numerous opportunities to discover stocks poised to benefit from the resulting growth trends and emerging demands. Rack integration is just one of the pieces to the puzzle.
So, when I identify a winning theme, I attempt to see if I can find other stocks that will also benefit.
There’s only so much money to go around in the market, and now, some of that money that was finding its way to low-quality companies during the easy money days is going to continue to make its way into the higher-quality microcap universe that we play in (a trend that began in 2022).
For well-managed, undervalued microcaps with great fundamentals and a clear path to growth, the current environment could allow them to shine as capital becomes more selective. We also think the environment is fantastic for high-probability turnaround situations, where balance sheet restructurings or small tweaks in business plans put a company back on track for growth.
At the end of last week’s trading, on Friday, we decided to close Buy on Pullback (BOP) Portfolio #11 at a final closing return of 45.04% (average peak 67.71%). The portfolio was launched on September 25, 2023, as part of our long-standing strategy that we began with BOP #1 in January of 2016, that intended to capitalize on mispriced opportunities in the market.
We transcribed and analyzed this morning’s Moberg Pharma (MOB.ST) conference call negative update on the MOB-015 nail fungus trial results that sent the stock, as well as Canadian licensing partner (for nail fungus product) and GeoInvesting-covered stock, Cipher Pharmaceuticals (OTC:CPHRF) […]
There’s a turnaround story unfolding at a power solutions-focused company entering the data center market segment that could help the company reignite growth and reach profitability The company has not inflected to profitability yet, but we are waiting to see if the things management is doing will allow the company to reach break-even results, anytime soon.
Last week, we were very fortunate that the company’s CEO decided to join us for a deep dive into his company’s multiple growth objectives and the pace of the company’s turnaround.
We’ve been on the trail of data center-themed stocks, especially after one of our Top 5 Faves, $TSSI, showboated its way from $0.27 at the beginning of the year to a recent high of $5.67, or over 1,900%.
This multibagger move was helped along by a series of circumstances that all fed into the stock’s momentum, from an obvious data center branding strategy showcasing itself as a major contender in the data center services space (with DELL as its largest customer), to a better than expected Q2 earnings report, to last week’s Hindenburg Research short report on $SMCI.
Earlier this week on Tuesday, Hindenburg Research, currently the most prominent short-seller, released a scathing report on $SMCI. The report alleged various forms of misconduct, including allegations of fraud, accounting irregularities, and related party issues. But what caught our attention most was Hindenburg’s coverage of SMCI’s quality control concerns, citing