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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting key moves, missed signals, and overlooked opportunities in our 1,500+ coverage universe built since 2009.
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Later in this update, we will be showing some microcap pitch clips from all the investors that were guests on our Investor Insights Skull Sessions this year. By the way, if you did not know, we track the returns of all these pitches via the Contributor Index on the Geoinvesting pro portal, accessible under these main menu items:
- Model Portfolios > Contributor Index
- Tracking > Contributor Returns
We also took a look at the earnings reports from Phonex Holdings, Inc. (OOTC:PXHI), Konatel, Inc. (OTCQB:KTEL), Covalon Technologies Ltd. (OTC:CVALF) (TSXV:COV), and B.o.s. Better Online Solutions (NASDAQ:BOSC).
Additionally, we announced that Kingstone Companies, Inc (NASDAQ:KINS) CEO will be in the spotlight during a Skull Session Fireside Chat hosted by Scott Weis of Semco Capital on August 25, 2025 (tomorrow at 11 AM Eastern Time).
But the big news this week was that we officially closed Buy on Pullback Portfolio #13, with an average return of 53.2%. Our last three BOPs have now had a pretty impressive streak, with returns of 45.3%, 30.6% and 53.2% over an average time span of 8 months.
We actually highlighted BOP 13 in last week’s Sunday post. Here was the official closure announcement:
There’s no doubt that the BOP is turning out to be our best and most consistent high-returning model portfolio.
Here’s some stats to put this history, that started in 2016, into perspective.
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Earnings
Moving on to earnings, even though the previous week was the peak of micro cap earnings releases, we still had a few more stocks to cover this week, including PXHI, CVO CVALF and BOSC.
Here’s a snapshot earnings table covering all the stock summarized in our morning emails last week.
Phonex Holdings, Inc. (OOTC:PXHI), a platform for buying and selling used smartphones, is trading near its cash-per-share value as it shifts into a licensing model with scalable upside. This quarter, the company posted Q2 sales of $2.4 million, tripling from last year, and an adjusted EPS of $0.03 (vs. a loss of $0.02), which excludes the gain from its asset sale. With shares trading at $1.75, that cash position alone equates to nice downside protection of $1.39 per share. The company is now focused on recurring revenue via its Platform Partnership business, investing in scalability and additional target market use cases.
Our Quick Take:
This story continues to get more compelling as the company is basically trading near cash per share with a growing recurring revenue high margin business, which it can finally solely focus on, now that it has sold the majority of its asset heavy business. Stay tuned for more updates.
Konatel, Inc. (OTCQB:KTEL), a cloud communications solutions provider, triggered a late-session surge on August 19 after its 10-Q quietly revealed a major contract with a top healthcare provider, targeting millions of Medicaid recipients in California. While Q2 revenue fell 50% YoY, the decline was related to lack of government funding for the previously funded Affordability Connectivity Program (ACP) targeted towards helping low income households gain access to high speed broadband. It appears that the revenue decline has stabilized.
Our Quick Take:
The company is not out of the woods yet, but the healthcare partnership seems like a great step in the right direction and in line with stated goals of pursuing asset light opportunities for its government subsidized telecom business. We still have to understand the economics of this relationship. Given the company’s lack of execution over the last couple years, we suspect investors will remain skeptical until more clarity is offered around this new development. This could provide an opportunity to buy some stock on this cheap, if the healthcare partnership is a big deal.
Covalon Technologies Ltd. (OTC:CVALF) (TSXV:COV) posted soft Q3 results, with revenue down to C$8.37M from C$9.22M YoY with EPS down to C$0.00 from C$0.06 a year ago, missing expectations.
Despite upbeat management commentary, highlighting >35% YTD growth in U.S. Vascular Access sales anda 40% sequential growth in U.S. Wound Care sales, none of this strength showed up in the top-line. Strategic options are still being explored, but tangible progress remains to be seen.
Our Quick Take:
The company continues to struggle to gain momentum in sales and EPS since phase one of its turnaround stabilized the company’s operations to achieve current revenue levels and profitability. Furthermore, the fact that the company was trying to call the quarter a success because of the sequential increase in revenue and downplay the year of your decline is kind of bush league. We still like the CEO and his vision for the company, but obviously we need to see some better traction soon. We would have liked the company to have provided an update on the company’s progress on exploring strategic opportunities in the press release, although the CEO did address it on the earnings call:
“Answer – Management: And yes, there’s been a ton of progress, a lot of really exciting engagement. It’s one of those processes that once we have something to announce, we will. But I would say it’s been — it’s been very, a very encouraging process to date. And when there’s an outcome that warrants advising on, we will do that .”
B.o.s. Better Online Solutions (NASDAQ:BOSC) delivered a strong Q2, with revenue up 35% to $11.5M and EPS rising to $0.12 from $0.09. Full-year revenue guidance was raised slightly, with net income expected between $2.6M and $3.1M. Margins were pressured, especially in the RFID division (gross margin down to 19.1%), due to operational inefficiencies. Restructuring is underway, with gross margin normalization expected by Q4. Supply chain margins also dipped on product mix.
You can access all our morning emails here.
Skull Session: KINS CEO
Looking ahead, Kingstone Companies, Inc (NASDAQ:KINS) will be in the spotlight during a Skull Session Fireside Chat hosted by Scott Weis of Semco Capital this August 25, 2025 at 11:00 A.M. EST. As the President and CEO of Semco, Scott brings deep experience investing in companies undergoing significant transformations such as restructurings, divestitures, and acquisitions. He is also a full-time investor and turnaround specialist, and has become a key contributor to the GeoInvesting community. His last pitch on April 21, 2023, focused on Bk Technologies Corporation (NYSE:BKTI), which has returned 393.41% to date, with a peak return of 431.47%.
Speaking of contributors, they’ve been a consistent source of high-conviction ideas and deep research. You can explore the full list via our Contributor Index. For this week’s feature, we’re highlighting pitches shared during our Skull Sessions in 2025 by:
- Mike, Multibagger Monitor – Hallador Energy Company (NASDAQ:HNRG)
- Thomas Niel – Lesaka Technologies, Inc. (NASDAQ:LSAK)
- Lee Roach – Pardee Resources Co. (OOTC:PDER)
- Charles Hutchison – Hydreight Technologies Inc (OTCQB:HYDTF) ($NURS.V)
- Jesse Fleiszig – Matrix Composites & Engineering Limited (ASX:MCE)
- Mathieu Martin – Cannara Biotech Inc. (OTCQB:LOVFF) (TSXV:LOVE), High Tide Inc. (NASDAQ:HITI)
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Mike’s (Multibagger Monitor) Long Thesis on Hallador Energy (HNRG)
Mike (@Mike10947310) pitches Hallador Energy Company (NASDAQ:HNRG), a name he believes is positioned to benefit from the power demands of AI infrastructure. He explains how its grid interconnection and coal plant assets create optionality for hyperscaler deals, while recent policy shifts have extended the life—and relevance—of what many consider obsolete infrastructure.
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| The Weekly Wrap-Up is meant for those in a hurry, along with those who want to spend a weekend hunting for ideas or quickly catch up what we talked about during the week. Our Weekly Wrap-Up brings together everything we discussed during the week in our morning emails and premium alerts, as well as new information and high conviction ideas that we did not communicate that you should know about. From earnings coverage, new research coverage on stocks, picks and research from our subscribers to event highlights from our monthly open forum that takes place to the beginning of each month and interviews with management teams and investors. 📬 Missed any emails this week? You can catch up on all of them in one place — just check out the full archive here. |
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Thomas Niel Breaks Down His Bull Case for Lesaka Technologies (LSAK)
In this stock pitch, Thomas Niel (@realThomasNiel) lays out why Lesaka Technologies, Inc. (NASDAQ:LSAK) is on his radar. He discusses the company’s turnaround narrative, emerging market exposure, and improving fundamentals. As a value investor focused on information arbitrage, he sees the stock as a potential sleeper hit. This is a great example of the kind of thesis-driven thinking he brings to his Value Never Sleeps audience.
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Private Investor Lee Roach Makes the Case for Pardee Resources (PDER)
In this brief pitch, Lee Roach (@leevalueroach) introduces Pardee Resources Co. (OOTC:PDER) as a company he finds attractive. He summarizes its business model, which includes diversified natural resource holdings, and notes its long operating history and asset-based valuation appeal. The pitch reflects his broader preference for underfollowed, asset-rich companies. Lee Roach is private investor and writer behind the Substack newsletter, The Value Road.
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Charles Hutchison Spotlights Hydreight Technologies (HYDTF) (TSXV:NURS)
In this pitch, Charles Hutchison (@charlesbhutch) discusses Hydreight Technologies Inc (OTCQB:HYDTF) (TSXV:NURS), a nationwide telehealth company operating across all 50 states. He outlines its three revenue streams. Two are already profitable and are expected to generate CA$20 million this year. The third is a licensing model focused on direct-to-consumer providers, charging $200 per state monthly and targeting 150,000 monthly orders. Hutchison notes upcoming growth catalysts including a planned pharmacy acquisition, while also emphasizing the importance of compliance management. He sees Hydreight as a scalable opportunity in the digital healthcare space.
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Matrix Composites & Engineering (MCE.AX): Subsea Buoyancy Pitch by Tenva Capital
In this detailed pitch, Jesse Fleiszig, Founder of Tenva Capital (@TenvaCapital), presents his case for Matrix Composites & Engineering (ASX: MCE). He explains the company’s niche in producing subsea buoyancy solutions, its turnaround progress, and why it could benefit from both industry recovery and potential M&A interest. Fleiszig outlines the operating leverage embedded in Matrix’s underutilized facility and why Tenva Capital sees the stock as a compelling undervalued play with catalysts on multiple fronts.
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Cannabis Investing: Mathieu Martin Breaks Down HITI, LOVE, and Sector Valuations
Mathieu Martin (@Stocks_Stones) explains why he’s bullish on Canadian cannabis despite past challenges. He highlights undervalued licensed producers trading below book value, some profitable and growing 30%, backed by real estate. With Canada’s stable regulatory framework and improving supply-demand dynamics, Martin sees strong upside potential. He also notes Quebec-based producers benefit from low electricity costs and favorable ties with the provincial distributor, giving them a competitive edge.
These recent pitches offer a glimpse into the kind of deep, thesis-driven thinking our contributors bring to Geoinvesting subscribers, and the insights keep coming. Now, let’s move to one of this week’s Investor Insights Skull Session, where we revisit Covalon and the cannabis industry with a long-time expert in the Canadian microcap scene, Mathieu Martin.
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Mathieu Martin: Investing With Conviction, Deep Dive Investing Process, Revisiting Covalon and The Cannabis Industry
For this week’s Investor Insights Skull Session, I had the chance to speak with Mathieu Martin, someone I’ve followed for a while and finally got to sit down with for a deeper conversation. He’s the portfolio manager of the Rivemont MicroCap Fund and runs the Stocks and Stones Substack, where he tracks Canadian microcaps more closely than almost anyone I know.
Mathieu comes from a unique background, he was a professional poker player before getting into investing, and that mentality carries over. He talks about finding “easy games,” and for him, that means Canadian microcaps under $100 million where the competition is mostly retail. He’s not screen-hunting or chasing headlines, he’s reading every single press release in Canada daily, keeping tabs on nearly 1,000 companies to catch inflection points others miss.
The two main themes we hit on were Covalon Technologies Covalon Technologies Ltd. (OTC:CVALF) (TSXV:COV) and Canadian cannabis. Both are areas we’ve tracked at Geo, so it was great to compare notes. Given Covalon’s weak Q3 last week, Mathieu’s perspective comes at the right time.
On Covalon, Mathieu’s still long and laid out a clear sum-of-the-parts case. The collagen business is profitable and likely worth over C$100 million on its own, based on the $10 million in EBITDA they disclosed. With a C$60 million enterprise value, cash on hand, and a fast-growing vascular access division (which he thinks is operating at a small loss now but has big upside), Covalon is worth tracking. It might be worth having a follow up conversation with Mathieu, to put things into perspective, given the weak Q3.
We also dug into his cannabis thesis, which honestly surprised me. I hadn’t expected him to be that active in the sector. Like a lot of people, he had never touched cannabis stocks during the bubble, but started noticing something interesting early this year in the Canada. Several profitable, growing licensed producers are trading well below book value, some at just 5 to 7 times free cash flow. His largest position in the space, Cannara Biotech, picked up a $250 million cultivation facility for $27 million and is now gaining market share in Quebec with double-digit EBITDA margins.
What I really appreciated was how he approached cannabis like any other sector. Not trying to play hype cycles, just finding solid operators where the valuation and market sentiment are completely disconnected.
If you missed it live, a replay is available here. It’s worth a listen to hear how a thoughtful investor builds conviction in overlooked spaces, and how deep domain knowledge and process can pay off even when the crowd has moved on.
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| If you enjoy performing press release research or think you will see value in a tool that expedites your press release research process, you should check out a press release tool my team is building by going here. |
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GeoInvesting is a premier research platform for microcap investors, dedicated to uncovering high-potential stock ideas in undervalued companies across various sectors. With over 30 years of investing experience, GeoInvesting has covered more than 1,500 equities, providing often actionable proprietary research. The platform has been instrumental in identifying 200+ multibagger stocks, and offers investors exclusive access to over 600 management interview clips, allowing for deeper due diligence and understanding of the microcap stocks, many of which make it to market-beating premium Model Portfolios. Join the GeoInvesting community for the best stock research and microcap insights to help you stay ahead in the market. To learn more about our Premium Services, go here.. (https://geoinvesting.com/premium-research/)