The $CRWD disaster had me looking for stocks in Geoinvesting’s microcap coverage universe that might have competitive offerings or offerings that could work with Crowdstrike to prevent future similar disasters. That’s when I realized that we had already written a short Reasons for Tracking (RFT) on $CSPI on September 28, 2023. stock is actually up 73% since we published the RFT. At the time we published the RFT, we noticed that the company had launched a proprietary cybersecurity software platform to help jumpstart growth and complement its unexciting, yet profitable, legacy business offering third-party hardware and software IT solutions.

Let’s start out this week’s stock commentary with AWW, a “turnaround company” in our Run to $1 Model Portfolio that manufactures and markets health and beauty aids. GeoInvesting’s “Run to $1.00 Model Portfolio” (R21) focuses on microcap stocks trading under $1 per share that have the potential to exceed this threshold.

The newest product from CCA Industries is Neutein, a brain health supplement. Launched in the second quarter of fiscal 2024, Neutein is now available in 3,420 CVS stores across the country. This product is part of the company’s efforts to turn around their financial performance and is supported by a marketing campaign featuring NFL Hall of Fame football player Mike Singletary.

It’s refreshing to see the microcaps rebound after a somewhat tepid last two months, during which many stocks we track were down significantly from their highs. On this point, in our June 2024 Review monthly newsletter, you might have noticed that we adjusted our Model Portfolio/Screen performance table to reflect stocks rising only more than 10%. We did this to be able to actually include about the same amount of stocks we are usually able to highlight when using our usual 20% to 25% benchmark.

So, this rally in the smaller cap market, spurred by the recently reported cool inflation numbers, marks the first major movement since the end of 2023, when it rose nearly 30% in the last 2 months of 2023.

This past week, I was pleased to see our team worked hard to ensure that our July 2024 Monthly Open Forum kicked off right at the start of July. We’re committed to maintaining this schedule for future Monthly Forums, focused on bringing you the previous month’s highlights early, before rolling too deep into the next each month. This timing helps our team focus on delivering more value-added research throughout the month rather than preparing for the forum.

Historically, turnaround companies often fly under the radar, as initiatives are put in place that are perceived as overly risky due to unknown outcomes. Successes within their strategies may not immediately reflect in financial metrics, yet these are the stocks that sometimes yield significant gains. But the “unknown” is what makes these stocks, which may look very expensive today, amazingly cheap on future earnings power if turnaround moves bear fruit. A willingness to have an open mind can give you an enviable first mover advantage. 

If you told any microcap nonbeliever to go visit the TSSI facility without telling them the stock is a microcap stock, they would assume they were in the presence of a seasoned Big cap, generating $100,000,000+ in revenue.

My impression of Darryl Dewan is that if you want someone to be on the front line with you in a battlefield, it’s him. And that’s no coincidence. Darryl played high school and college football (Connecticut and Notre Dame), at the Quarterback (HS) and running back (college) positions.

Before diving into those updates, we want to share our experience at the inaugural MSM Microcap Starting Five Virtual Conference held on June 12, 2024. Each company’s presentation and Q&A built on our understanding of their stories and in some cases strengthened our conviction in the four presenting companies.

May 2024 was another busy month for us – lots of really cool, great things transpired, not only within our model portfolios universe, but also within the universe of stocks that are pitched to us by our contributors. Our contributors pitch stocks to our network, either through writing articles or video pitches, usually as part of a member-attended monthly open forum or scheduled podcast.