We adding Our Feature Stock of the week to our Select Coverage Model Portfolio Universe. If our EPS estimates are on target, the stock should rise 180% to 250% over the next 18 months.
We first wrote up the stock in 2019, right before it went on a 1,367% move. To be clear, COVID was responsible for a good deal of this move. However, the COVID “bump” eventually ended, so that sales and EPS comps did not look favorable since then… and the stock reversed most of the Multibagger rise.
I think it’s a good idea to do some deeper dives into some of the earnings reports we review within our microcap coverage universe to help you understand what we’re thinking about these companies. To that point, it’s also helpful for our team. So, we will be providing additional coverage on what we talked about during the week regarding RCMT and KLNG. The stocks were up 19.30% and 16.67%, respectively, on the heels of strong earnings reports last week. If you recall, RCMT basically stopped issuing earnings calls and, now, press releases after the fourth quarter of 2025. So it makes this analysis even more important. The cessation of communicating with investors appears to coincide with the company being part of a large data center project, which it still hasn’t formally talked about.
This week, much of our attention was focused on the MS Microcaps Summer Virtual Conference. The three-day event brought together Canadian and U.S. public companies, microcap investors and several discussions around areas we are actively researching. Later in this post, you’ll be able to click on the link to the videos and investor pitches you want to watch. The investor pitch lineup was: Gurkirat Singh, Aurelion Research, Multibagger Mike, Ben Brostoff and Lee Roach. I also threw in my own pitch at the end of the event. Overall, I was extremely impressed with the quality of the pitches, as well as the quality of the stocks that were pitched. I think a portfolio of these stocks will deliver significant alpha.
ICYMI: Reports on two defense stocks we added to our Model Portfolio Universe – one benefiting from rising missile production, and the other experiencing growth catalysts for the first time in a while. The latter’s real estate value on the balance sheet is materially undervalued by a factor of ~4x.
In other news, early research indicates that new products have given this company a “moatish” investment angle. We are starting to get increasingly excited. The company will likely be added to our Model Portfolio Universe.
A US policy shock, a long-running national-security concern about drug supply, finally crystallized into tariffs, is pushing pharmaceutical manufacturing back onto American soil. The result is a domestic capital-expenditure wave estimated at roughly $370–480 billion of announced commitments through 2030. The durable money in this theme does not sit with the drugmakers, for whom reshoring is a cost, but with the “picks and shovels”: the engineering, process-equipment, and consumables suppliers who design, build, and outfit the new plants. Also this week, we sat down again with $FRTU President Yoel Damas to address Geoinvesting subscriber questions about funding capacity, automation, the audit process, and the company’s capital structure. The conversation focused on whether the company can convert growing demand without taking on unfavorable financing.
We launched a new Battery Energy Storage Systems (BESS) screen with its first three additions. The screen highlights companies positioned to benefit from growing demand for grid-scale energy storage and related infrastructure. Additional rationale and supporting commentary will be provided during the August Open Forum.
Battery Energy Storage Systems are becoming an increasingly important part of the power grid. They store electricity when supply is abundant or prices are low, then release it when demand rises, renewable generation falls, or the grid needs additional support. As electricity demand increases from data centers, electrification, and domestic manufacturing, storage can help utilities manage volatility without relying entirely on new generation capacity.
Please note that this week we held our July Open Forum, where we discussed developments across our coverage universe during the month of June. Part of the discussion focused on a new and potentially very exciting idea discovery.
During the Planet MicroCap Conference in Las Vegas, I pitched $SIF. This is very much a classic “boring but interesting” turnaround idea in the aerospace forging space. SIFCO is a 113-year-old aerospace supplier with established certifications, long-standing customer relationships, and a solid competitive position in both commercial and defense aerospace markets, but one that spent more than a decade in operational decline before recently starting to inflect. In this week’s Skull Session with Hugo Navarro, we discussed how he will balance his new career advising a hedge fund while continuing to write deep-dive research reports on his Substack, as well as four of his favorite investment pitches.