You’ll hear me mention “high probability turnarounds” often. And by the way, when I refer to turnarounds, I am talking about companies on the verge of dying, not those that are tweaking the business to create new growth or re-ignite growth… Because let’s face it, microcaps are always facing challenges.

It’s a good time to revisit this topic for two reasons. First, as I mentioned in last week’s Sunday update, we reintroduced our turnaround screen. Second, the MS microcap starting Five Defense Conference will have a few companies presenting their turnaround stories, like $VELO (3D printing) and $AUUAF (AUUA.V) (composite materials). 

I’ve been a diversified investor and I’ve been a concentrated investor. I do believe they both have their place. However, diversification in microcaps is interesting. Here are 5 big reasons, from a comprehensive list I’ve been compiling to highlight why I think this is the case:

I initially visited the data center FUD topic a few weeks ago in a Weekly Wrap-Up post, talking about the data center tailwinds positively impacting Sterling Infrastructure, Inc. (NASDAQ:STRL) construction operations and how management addressed the data centers growth skepticism in its Q4 2024 earnings call

Some people might  say that the data center industry itself is currently at a crossroads already and in a “hot or not” debate in the sphere of investing. In some corners, there are mixed signals causing investor uncertainty. On one hand, industry leaders like $DELL, $META and $NVDA assert that the market remains incredibly healthy, with NVDA CEO Jensen Huang forecasting that data center infrastructure spending could reach $2 trillion in the next four to five years. 

Reading press releases is one of the most important (and often overlooked) aspects of microcap research. Yet, reviewing them across multiple financial news wires is often cumbersome and time-consuming. To address this challenge, my team and I are in the early innings of developing a specialized tool called PRaaP (Press Releases as a Platform). It centralizes press releases from various sources, provides core data such as share counts, basic fundamentals, and charts, and allows for advanced filtering based on price, market cap, outstanding shares and news category.

Fresh off our Live Open Forum reviewing December 2024, we are welcoming 2025 with continued optimism that microcaps will continue to perform well, especially in certain industries.  While we didn’t do a full year review as part of the forum, a few days earlier I was able able to sit down with Bobby Kraft of the Plant Microcap Podcast for a focused MicroCap Year-End Review in which we dissected key developments in the microcap space over the past year.

When we introduced the concept of “You Make The Call”, we explained our motivation like this. In case you missed that email here’s what these events are all about.

This event format is on an experimental basis, but we thought it’d be a good idea to bring in management teams from speculatively-viewed companies eager to present their business plans to us. While we recognized that the success rate for these kinds of ventures may not be high, we believed it would be valuable to hear potentially innovative ideas that may have a chance to bear fruit for investors.