I began my full-time investor career path while in college between 1988 to 1992. From time to time, I find myself struggling to shed some of the bad habits that get in the way of maximizing my investment experience. I […]
If you have invested in U.S. listed Chinese stocks (ChinaHybrids) you are probably already aware of their rise and fall from grace. If you are thinking about investing in these stocks for the first time, it’s important that you become familiar with the evolution of the space. GeoInvesting has and will continue to play a big role in bringing awareness to the investment risks and opportunities in ChinaHybrids. I bought my first ChinaHybrid in 2004.
Big returns can come in small packages. That’s certainly the case with investing in a micro-cap, the term used to refer to a publicly-traded company with a market capitalization between $50 million and $300 million. Why should you care about […]
One of the more interesting stories we’re following is a 100-plus-year-old manufacturer of industrial equipment that most investors would probably consider a boring industrial stock. For years, the company traded at a low P/E multiple and below or around book value. Investors had plenty of reasons to overlook it, including legacy liabilities and a complicated corporate structure. When we first highlighted it, our thesis was that management could unlock significant value by simplifying the business. The company had already begun selling noncore subsidiaries and winding down inefficient operations, while taking steps to clean up its balance sheet.
This week, we’re looking at a military semiconductor company returning to profitability with record backlog, alongside a structural-steel fabricator securing new hydroelectric project awards that further strengthen its already record backlog. As usual, we highlight the stocks we want to watch most in our Big Movers and Losers list of the week, included at the end of the post.
During our October Open Forum, we reviewed September’s developments, revisited our model portfolios, and discussed where we’re finding information arbitrage opportunities. One of the main themes was the changing market environment and our increasing focus on quality companies with earnings visibility.
We’ve been following this company for some time now, and it continues to be one of the stranger little companies in our coverage universe. Investors just don’t seem to care. That has been understandable at times. It is tiny, its stock is extremely illiquid, revenue was growing from a very small base, and the big distribution deal we have been waiting for has yet to arrive. But the financial profile we originally hoped would emerge is starting to show itself.
As previously communicated, we’re continuing to share select higher-conviction ideas and research from my Cliff Notes Substack with GeoInvesting subscribers, alongside our regular research updates and additional deep-dive work. These pieces are part of our ongoing research process and complement the ideas and coverage we share with our current GeoInvesting subscribers.
The latest piece, “Picks and Shovels #3: Battery Energy Storage Systems and Their Bottlenecks,” takes a closer look at the rapidly expanding BESS market and, more importantly, where the economics and bottlenecks actually sit across the value chain.
Last Sunday, we let you know that we were working on an updated write-up on a company to highlight its progress and share our views on the stock since we published our first write up on it in May 2024.
As you will see, it is now clear that the company has transformed from a struggling non-standard auto insurer into a consistently profitable business. One new takeaway from our research this week is that some of the bullish aspects of the company story are similar to those of property and casualty insurer Kingstone Companies, Inc (NASDAQ:KINS).
Recall that KINS benefited from competitors leaving the New York market, allowing it to capture market share.
Although KINS and the company operate in different insurance segments, it is still interesting that the company is seeing one of its competitors leave two key markets where the company is actually growing nicely.
Our feature this week will be a quick look at an insurance company trading at roughly a 60% discount to its peers, even though its growth and risk metrics are equal to or better than those of its peers. Later in the week, I’ll publish a deeper dive into the company and the industry. We opened the September Open Forum by reviewing the Buy on Pullback and Focus Model Portfolios, with much of the discussion centered on stocks where recent results or conference-call commentary strengthened our conviction. The Buy on Pullback portfolio has given back much of its early gain, but we remain focused on whether the underlying company developments are moving in the right direction rather than short-term portfolio performance.
It’s been a little over two months since Phase 1 kicked off, and some of these picks have been on a serious run. The live leaderboard is now available, so you can see how your pick is performing and where you currently stand against the competition.