GEO Investing

Well respected financial Substack newsletter writer, Dakota Quint (Left Field Investing) (@LeftField_FHRS), joined me and my analyst, Jan Švenda, to discuss Model Portfolio Holding $CPHRF (CPH.TO), a specialty pharmaceutical company in Canada that offers an array of skin care products, notably in the areas of acne and keratosis.
Our bullish coverage was initially highlighted in 2 articles, here and here on 9/27/2022 and 10/10/2022, respectively.. Even though shares are up 152% from the first of those analyses, much more gas could be left in the tank.

The company reported earnings last week, helping the stock rise 13% for the week. Since Dakota knows about Cipher intimately, we thought it would be a good idea to chat with him about the company to get his opinion on how the company stands to benefit as the licensee of Moberg Pharma’s AB, (MOB.ST) topical nail fungus treatment, MOB-015, in Canada. While the drug is still not approved to be sold in Canada or the U.S., it has been approved to be sold in 10 European countries.

Friday after close $MUEL announced its 2023 financial results, where it reported earnings per share of $4.32 for the fourth quarter and $15.75 per share for the year.

Most importantly, the company published a separate press release that we believe is their attempt at sending a message to the market that they are not a value trap anymore.

They announced they are willing to buy $15 million worth of stock from any shareholder who may want to sell (otherwise known as a tender offer) at $80.00. This price is 15% above the current market price. Furthermore, the amount of shares that could be bought with $15 million represents about 20% of the company’s outstanding shares.

GeoInvesting research contributor Thomas Birnie’s perspective on investing is characterized by a transition towards a more consistent, long-term strategy irrespective of market conditions. His investment philosophy centers around identifying high-quality businesses trading at what he perceives as good or undervalued prices, with a particular focus on the small and microcap sectors, where he sees significant opportunity.

FTG CEO Brad Bourne’s career has been deeply rooted in the aerospace and defense sectors, reflecting a long-standing passion for these industries. He joined FTG when it was a relatively small enterprise based in Toronto, operating with a revenue of about $20 million. Under his leadership, FTG has aimed to double its business every five years, a goal that, despite challenges such as the pandemic, has seen substantial progress.

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).