This evening I want to bring a few things to your attention.

For the first order of business, I wanted to let you know that, on the behalf of Littlegrapevine.com, I sat down with Doug Gaylor, President and COO of Crexendo, Inc. (NASDAQ:CXDO) to get an update on where the company stands after navigating COVID-19 and to get a preliminary look at some of the benefits the company hopes to achieve if it consummates the planned acquisition of NetSapiens. This acquisition was discussed in a company press release last week. CXDO and NetSapiens both serve the cloud communications / UCaaS market. 

You can see the chat at Littlegrapevine.com.

A key takeaway from the fireside chat with Doug is that NetSapiens brings a whole host of new technology and services to Crexendo that it can now offer its customers. CXDO will end up having a true platform solution in which it owns all the technology. NetSapiens will get the benefits of joining a public company with access to growth capital and a first class management team. 

I thought the interview would be relevant to Geoinvesting premium members since CXDO is one of 17 companies in our Favorite Model Portfolio

Little Grapevine plans to host a followup chat with Doug and the founder of NetSapiens once the acquisition closes, hopefully by early April 2021. 

On a related note, I’m looking forward to presenting at Bobby Kraft’s next Planet Microcap Showcase virtual event being held between April 20 and April 22, 2021, where I, along with a panel of other investors will interview the management team of a company we have yet to choose. Stay tuned!

Registration for the event is currently open here.

One more thing on the video front. I plan to sit down with Brian McCann, a GeoInvesting premium member and research contributor.  The video is part of the next “Avoiding the Crowd” podcast series. Brian is a certified financial planner and the founder of Bootstrap Capital, a firm focused on building long term wealth for clients. Brian also invests in microcaps and writes insightful articles on investing and risk management at his site.

You can see all Avoiding the Crowd videos and opt in to be alerted of upcoming installments by visiting the home page here. So far, I have interviewed 6 microcap investors and discussed several topics on the podcast.

Finally, and maybe most importantly, we are about to publish a table containing our model portfolio selections with associated rankings to make it easier for you to understand where we stand on conviction, associated business challenges, along with short and long term valuation assessments. We have discussed our intent to take on this task over the last few months  after engaging with many of you who suggested that we should provide a little more clarity on some of the stocks in our model portfolios. We plan to update this table on a routine basis and will continue to identify things we can do to improve your premium member experience at GeoInvesting.

Thanks for your time and have a great week!

~Maj Soueidan

GeoInvesting Weekly Premium Email and Call To Action Updates (Mar 8 – Mar 12)

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Heritage Global Inc. (NASDAQ:HGBL) a company that, through its subsidiaries, engages in the asset liquidation and alternative lending business saw its CEO, Ross Dove, file a Form 4 showing he added 6500 shares at an open market price of $3.03. 

Alto Ingredients, Inc. (NASDAQ:ALTO), a leading producer of specialty alcohols and essential ingredients reported its Q4 2020 results. We disclosed we were closing out our long position based on the sub par results. You can see our earnings coverage note here. We participated in the conference call hoping for more color on guidance, like management has done in the past. While the Company did not provide specific 2021 guidance, it did provide some details for gross profit goals for its specialty alcohol division:

“Given the ongoing market demand dynamics and associated volatility in both the hand sanitizer and renewable fuel markets, we believe it’s inappropriate to provide guidance at this time. What we can provide is additional framework related to our specialty alcoholic contracted product. Setting aside the many other variables, including the sale of both our renewable fuel and uncontracted specialty alcohol, we would expect our specialty alcohol contracted sales to contribute at a minimum $60 million in gross profit for 2021.”

The gross profit guidance of $60 million does not imply strong growth, when compared to gross profit of $52.9 million achieved in 2020. We will continue to monitor ALTO’s restructuring process.

The full transcript can be read here

Tecogen Inc. (OTC:TGEN), a producer of commercial and industrial natural gas fueled engine driven, combined heat and power products, reported its Q4 2020 results on March 11, 2021, which we covered here. Below is a summary slide of the conference call with the associated comments. The full transcript can be read here

TGEN Final Comments

“I’d like to make some final comments regarding the outlook for the company. 2020 was a difficult year, as I just reviewed, but it also gave us an opportunity to focus on making improvements to our business activities across the board that puts us in a good position to achieve profitability in 2021.”