I initially visited the data center FUD topic a few weeks ago in a Weekly Wrap-Up post, talking about the data center tailwinds positively impacting Sterling Infrastructure, Inc. (NASDAQ:STRL) construction operations and how management addressed the data centers growth skepticism in its Q4 2024 earnings call
Despite a market backdrop still marked by caution, we continue to perform research, hoping to find some nice underappreciated gems during a time where there is less competition from investors who probably have thrown in the towel in the short term. But I’ll be ready to sell them the shares I’m buying on the dips when the crowd returns.
Currently trading at a P/E of around 9.7x, we see clear room for this company to experience a re-rating due to growing earnings that are becoming more predictable. Public peers in this infrastructure industry typically trade at far higher valuations, often in the P/E of 15–20x range. Our target company has now significantly expanded its manufacturing footprint, positioned itself closer to key customer clusters, and cleaned up both its cost base and legal overhangs.
This stock we are pitching today is dropping fast for the wrong reasons and now has a P/E of near 5x. This is despite being a growth company with the lowest risk it has had in years. However, we believe the P/E could eventually expand to over 20x, setting us up for a rare multibagger move of at least 300%.
Sometimes the best opportunities in microcap investing aren’t buried in futuristic tech or obscure biotech patents. Sometimes, they’re hiding in plain sight.
There’s a little-known company we’ve been tracking for a while now—a turnaround story that’s been quietly grinding through operational changes, product rollouts, and a broader reinvention of its brand identity. It’s not the kind of name you’ll hear pitched by even other microcap investors, but recent developments in a new supplement market it recently entered just made this stock a lot more interesting for investors who appreciate the power of information arbitrage.
April’s Open Forum laid the groundwork for new biotech research, quant integration, and sentiment tools like the Zombie Index. This past week we also covered four – companies (Firan Technology Group Corporat (OTC:FTGFF) (FTG.TO), Perma-pipe International (NASDAQ:PPIH), Lakeland Industries, Inc. (NASDAQ:LAKE), Phonex Holdings, Inc. (OOTC:PXHI) showed how different strategies—from geographic diversification to SaaS pivots—are navigating current market conditions.
We kicked off the week with some M&A action. Agent Information Software, Inc (OOTC:AIFS), which we’ve followed for over a decade, is finally off the board—acquired by Soutron Global in a deal that values the company at $2.34 per share, a hefty 111% premium to its March 27 closing price. Of that, $1.99 was paid up front, with the remaining $0.35 potentially coming in 18 months. AIFS has spent most of this time trading sideways from the time that we published our research report on the company
In reaction to Trump’s tariff chaos on the market, investors are selling first and asking questions later. We want to profit from this irrational behavior.
What follows are the key product groups that are exempt from Trump’s last round of tariffs.
Our goal will be to find a few nanocap, microcap and and small cap stocks that operate in these categories, where their stock prices are getting hammered. AND that may actually benefit from these tariffs.