GEO Investing

GeoWire Monthly, Vol. 2, Issue No. 11, December 2022

This week, the video component of our monthly newsletter series continues with 5 insightful video clips from Jim O’Shaughnessy, parsed from a “Talks At Google” interview moderated by Saurabh Madaan.

Jim O’Shaughnessy, investor and founder of O’Shaughnessy Asset Management LLC, discusses what it takes to be a successful active investor.  He shines a light on the contrast between active and passive equity investing including the associated risks and rewards.

O’Shaughnessy covers several traits required by successful active investors, including patience and persistence, a strong mental attitude, a focus on process over outcome, and the courage to ignore forecasts and rely on one’s own research data.

O’Shaughnessy also offers guidance from his years of experience as an active investor, citing key points from his book What Works On Wall Street. He discusses the importance of momentum and earnings in putting together your portfolio.  He also delves into market cap, lottery stocks, shareholder yield, and applying long-term data in one’s investment strategy.

We hope that you enjoy O’Shaughnessy’s insights into what it takes to be a successful active investor. Hint, it’s much harder than you think.

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Stock Pitch World Cup™ – Team USA on PAYS, PXHI, ASRT [GeoWire Weekly No. 62]

On December 6 to 8, 2022, Bobby Kraft hosted a Stock Pitch World Cup™ that featured pitches from Team USA and Team Europe. Representing USA was Maj Soueidan, co-founder of GeoInvesting, who brought with him MS Microcaps analyst Jan Svenda (@jansvenda), Quim Abril, founder of Draco Global (@abrilquim), and Scott Weis of Semco Capital (@SemcoRealEstate) to present the ideas of Paysign, Inc. (NASDAQ:PAYS), Phonex Holdings Inc (OOTC:PXHI) and Assertio Holdings, Inc. (NASDAQ:ASRT), respectively.

Every member of the squad has contributed each of these ideas to the GeoInvesting community in the past, and in this case expanded on their convictions, providing insight into their current views and reasons why the stocks continue to be top selections in their portfolios.

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KonaTel C Suite Event A Success, Replay Now Available [GeoWire Weekly No. 61]

We’re back from our meeting we had with Konatel Inc (OOTC:KTEL) over the weekend, where we were able to introduce a panel 5 of the company’s top decision makers who were able to go into great detail about their roles. After having held this event, we’re more confident than ever that we made a great decision to follow through with what we feel is a very unique way to connect shareholders with management. It gave the execs a chance to address tough questions in a more intimate and casual setting, over a round of golf.

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Putting Trust in Management Commentary Can Be Tricky At Times [GeoWire Weekly No. 60]

There’s going to be certain times when you need to think twice before believing bullish commentary from management teams. You need to understand that that bullish commentary can change on a dime. I learned this lesson when considering investing in some technology stocks right before and during the dotcom bust. At that time, as risk was escalating, many technology company management teams I interviewed commented that they saw no problem with their industry. They assured me that they’d be able to navigate an economic slowdown. Well, that couldn’t have been further from the truth as many of these companies pivoted on their bullish stance just weeks after these interviews.

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Video Display Company Back on Radar After 2 Newly Announced Contracts [GeoWire Weekly No. 59]

There was a good amount of optimism within the company’s 2021 10-K and 2021 Q1 communications about the prospects of a post-pandemic normalization, which led to our favorable take on the valuation on what we thought was a reasonably valued stock with some upside if certain things played out:

“VIDE is trading at 0.7x TTM price to sales multiple which we believe is not that unreasonable if the company can reach consistent profitability, considering the positive growth outlook management has communicated for the remainder of its 2021 fiscal year. We also like management’s shift to focus on cyber security which could also be a reason to assume that shares could eventually trade at a price to sales multiple well in excess of 4x.”

Long term price appreciation never materialized, but to be fair, as seen below, the company’s fiscal 2021 results did actually come in at an aggregate year over year increase, sending the stock to a brief high of $3.10. You could say, if just for a short moment, that the results supported the company’s outlook. However, investor conviction in the stock waned almost immediately, with the price settling back to its pre-financials levels.

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