GEO Investing

As a follow-up to last week’s primer on the upcoming Skull Session roundtable that was about to take place on February 21, 2024, this week is the perfect opportunity to review the discussion I had with the panel of microcap investing experts to shed light on the nuanced strategies of investing in the small to microcap space, with the expressed intent of idea discovery, case studies and at times, pitches.

Investors have not found one of our Top 5 Fave Model Portfolio holdings that should benefit from the AI “hype” that is not actually hype. We have followed it for 7 years, but today, the company is led by a new CEO that used to work for its biggest customer.

This little known data center company generates around $20 million in revenue, is profitable and has a major customer at the front lines of building out AI data center infrastructure with its partner, NVIDIA Corporation (NVDA).

The digital landscape has undergone a seismic shift in the past few decades, transitioning from traditional, monolithic software development practices to the modern, agile, and infinitely scalable solutions offered by cloud computing.

This immense sea of legacy code highlights the challenges and opportunities in transitioning to cloud computing, an endeavor that demands innovative approaches and technologies, including the potential, yet debated, role of Artificial Intelligence (AI) – a discussion point elucidated upon by industry expert and COO of a COBOL modernization company, Bonnie Castello, with whom we spoke in mid-January during an Expert Insight Skull Session chat we hosted.

While perusing Twitter, I came across a Twitter post by Clark Square Capital (@ClarkSquareCap) highlighting a list of stocks from the River Oaks Capital H2 2023 Report that included a table of companies that were labeled as either an ‘Excessive Discount’ or ‘Wonderful Business’. We recommend that you read the entire update to get a feel on their take on stock idea discovery.

On January 18, 2024, I was once again able to connect with private/full time investor Tim Heitman via an Investor Insights Skull Session. We riffed back and forth on various topics including investing strategy, the utilization of models in investment analysis, approaches to conference calls and related transcripts as tools for post-earnings research, behavioral finance, document analysis, the analogies between personal life and investment decisions, using industry experts to more fully understand an industry in which potential investments reside, criteria to look for in multibaggers, and much more.

It’s been an interesting 15 years for GeoInvesting. Those who have grown with us probably know our history pretty intimately. They know that we began as a research firm offering free bullish biased research on quality microcaps and high probability turnarounds. They know that for a period of time our research included intense investigatory due diligence, rooting out fraud in the universe of China-Based companies listed on U.S. exchanges, as well as on U.S. Pump and Dump schemes.

Now that we are heading into 2023 Q4 earnings reporting season, we thought it to be a good idea to tabulate the last several months of company financial performances that we compiled for our Monthly Forums, going back to August 2023.

As you know, we curate the most notable earnings releases from our Model Portfolio stocks, and generally from across our large universe of microcap coverage. Some mornings can get a bit hectic.

For those of you that use GeoInvesting for idea generation, we’ve created a page for you to be able to search, sort and filter for various criteria related