Aside from bringing a medical device stock with 100% upside into our coverage universe, my favorite features this week included earnings updates from Cineverse Corp. (NASDAQ:CNVS), Firan Technology Group Corporation (OTC:FTGFF) (TSX:FTG) and Burnham Holdings, Inc. (OOTC:BURCA), and a skull session with quant investor, Carlos Morales.
The stock is trading well below its larger peers, and we think that as the company continues to grow revenues and turns profitable, the valuation multiples will expand. In fact, we are projecting that earnings per share will inflect to profitability over the next 1-2 quarters. Shares are trading at a 2026 P/E of 15.5x based on our EPS estimates.
We have earnings coverage updates from Aluula Composites Inc. (OTCQB:AUUAF) (TSXV:AUUA), Qualstar Corp. (OOTC:QBAK), Invitro International (OTCQB:IVRO), Sifco Industries, Inc. (NYSE:SIF), Calian Group Ltd. (OOTC:CLNFF) (TSX:CGY).
We also review AUUAF’s capital raise to expand capacity, a new product launch from Qualstar Corp. (OOTC:QBAK) to attract larger customers, the addition of Calian Group Ltd. (OOTC:CLNFF) (TSX:CGY) to our Defense Screen, and a defense contract announcement for Velo3d, Inc. (NASDAQ:VELO).
This week, we held our monthly Open Forum, where we delved into the hot topic of the last two weeks: what to make of software stocks getting pummeled because of advancements in AI. We took a quick, cursory glance at four buckets investors should consider to understand where the risk is and where the opportunity lies. On that note, we dug deep into our 1,500+ microcap stock archives to resurface an old MultiBagger that we think actually benefits from what’s going on with AI and fits squarely in between the third and fourth buckets we discussed.
This week’s coverage focused on our Skull Session with Buda Juice, Inc. (NYSE:BUDA) following its recent IPO. The CEO/co-founder shared insights on scaling fresh juice brands nationally, expanding distribution, and maintaining profitability while managing supply chain and operational challenges. The discussion highlighted early revenue traction, customer expansion, and capital spend decisions that the company hopes will drive long-term growth.
We usually don’t look at IPO’s in microcap land. So many tend to be too aggressively priced or are losing money. We generally would like to wait to see how things play out after the company goes public. However, BUDA caught our attention because it’s actually making money, and beverage companies, in general, are known to post mountains of losses as they chase revenue and market share.