GEO Investing

We’re currently vetting a company in the defense industry that we believe may be uniquely positioned to benefit from the drone emergence by beginning to market existing technologies into the industry. 

While it’s still too early for us to determine if this company will target the drone market, we know the company well, because it’s already part of our Coverage Universe. Our preliminary research indicates that their products could clearly be a good fit within the commercial/military drone industry ecosystem.

The Russell 2000 has come full circle, retracing all of its 9.1% gains achieved during the post-2024 election “Trump rally”. Initially, investors rushed to buy on optimism, only to reverse course, partly as uncertainty over the direction of Trump’s policies grew. For example, what will views be on tariffs and Biden’s $1 trillion infrastructure bill?

We’re currently vetting a company in the defense industry that we believe may be uniquely positioned to benefit from the drone emergence by beginning to market existing technologies into the industry.

This isn’t a “fly-by-night” operation—it’s a business with strong, profitable operations, a solid backlog of contracts, an established relationship with the defense industry, and a 37-year operating history.

We believe this company’s position could give it an edge as drones become a more critical component of modern defense strategies.

So far, December has seen a bit of volatility across several microcap stocks that we actively follow. For example, the MSMqi has declined by approximately 6.25% from record highs reached in November. And I’m okay with that. Our team generally welcomes periods of pause in momentum and related pullbacks in stocks we follow. This provides opportunities to revisit and analyze stocks that we still need to look at or maybe add to current positions. The December performance of other key indexes are mixed:

As we continue to adjust to the evolving market landscape and subscriber feedback, we believe it is prudent to focus on more impactful investment strategies through a main high-conviction portfolio that we’ve been building on a monthly basis through our Live Monthly Forum Events.

The core approach and philosophy that guided the Top 5 Faves Portfolio selections will remain intact, but with a greater emphasis on quality. 

Geoinvesting has launched a few Model Portfolios since 2016. However, we have been tweaking the Model Portfolio framework over the past few months. The latest is the Open Forum Focus Model Portfolio (launched earlier this year), finally replacing the Legacy Top 5 Faves Portfolio, which delivered a 203.81% average return over the course of its existence, or since 2019. The new model portfolio aims to highlight GeoInvesting’s highest-conviction, earnings per share growth-driven ideas in response to shifting investor sentiment favoring value and quality vs. pure growth stocks, since 2022.