GEO Investing

This January, our first Fireside Chat was with a nearly 100 yr-old company that takes a multi-channeled, technology enabled, approach to customer experience (CX), operating through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services.

It’s not our first talk with a company involved in a part of that industry, who dealt with customer satisfaction and employee standard operating protocol management, which could be viewed as a subset of CX. We argued that in the post-Covid era there would be an increased need to put an emphasis on the way businesses understand their customers, and why it’s now more important than ever.

As the world sees it, there is plenty of room for CX to grow. A study conducted by Grand View Research determined that…

In light of the riskier market environment we are in, I have been writing to you about our new Recession Proof and Recession Resistant Model Portfolios. A great related next step is to dive deeper into the tunnel and focus on the topic of Chapter 11 Bankruptcy and how to profit by focusing on two buckets: 1)
Companies that survive a bankruptcy process. Will Muscle Pharm Corp (OTC:MSLPQ) be a candidate? 2) Companies whose businesses will actually benefit as bankruptcies increase.

In 2016 we addressed the dichotomous approach to understanding the differences between generally accepted accounting principles (GAAP) and non-GAAP earnings. There are ways they should be scrutinized when trying to get a sense if numbers being reported by a company are a true representation of what is going on at the net income level. Non-GAAP financials are also referred to as “adjusted.”  For example, “adjusted earnings per share (EPS) or “adjusted earnings before interest taxes & depreciation & amortization (EBITDA).

Because we plan on delving into this subject in a Tweet thread that we anticipate will engage our investor network and extensions thereof, we feel it is a good idea to give another primer on the subject, especially since GeoInvesting’s Premium Subscriber base has grown substantially since 2016.

If part of your investment strategy is executing bullish or bearish short-term stock trades on earnings report news flow, it’s extremely important to understand if the GAAP and Non-GAAP earnings per share numbers being reported in a press release are “clean”.

The sales, earnings and thus share prices of cyclical stocks (cyclicals) tend to fluctuate with the overall economy and are associated with industries that are heavily affected by the economic cycle and consumer demand. (Example: stocks in the automotive, airline, hospitality, housing, building material and retail industries).

Cyclicals do well when the economy is strong and consumer demand is high, and conversely, can suffer when the economy is weak and consumer demand is low. This makes them an attractive investment class for those who are skilled at identifying economic trends or when it becomes fairly obvious that an economy is peaking or bottoming.

While it’s certainly been a tough investment environment in 2022, RWWI is now sitting at $20 per share, an all-time high, and 5 times its price at the time of the article. It has basically turned into a quintessential case study for putting an emphasis on operating leverage trends as a potential way to spot a multibagger in the making. Now that growth at a reasonable price (GARP) investing is back in focus, we are going to keep our eye open for these types of setups.

There were other bullish factors at play, such as its recurring revenue model, its position as a prime acquisition target, and very unique relationship with Autodesk, Inc. (NASDAQ:ADSK) for which it was not only a reseller but also a developer of add-ons to extend the utility of the software it sold.

So, this brings us to another stock on which we’d like to begin to put a spotlight based on operating leverage. We’d like to do a similar analysis, more comprehensive analysis like the one we put out on RWWI, but we have yet to look at additional factors that might lead us to write a full RFT.

In this stock market environment, think of a dividend as a welcome gift that tempers any pain you might be going through as you wait for things to come back to normal.

Furthermore, we believe the company’s involvement in the healthcare services industry allows it to possess traits that make it “Recession Proof.” A little later in this post, we refer you to a forum clip where we touch upon what it means for a company to be recession proof versus recession resistant.

So, we spoke with a company representative in early November to pre-qualify it for a Live Fireside Chat that will be accessible by and exclusively archived for you.

We are in the process of scheduling this call, as we believe the stock has the potential to double. 

We’ve clipped out a section of our December 2022 Monthly Open Forum where Maj talks about the stock and the reasons why there is a potential for it to claim a spot on our Favorites list. 

On December 6 to 8, 2022, Bobby Kraft hosted a Stock Pitch World Cup™ that featured pitches from Team USA and Team Europe. Representing USA was Maj Soueidan, co-founder of GeoInvesting, who brought with him MS Microcaps analyst Jan Svenda (@jansvenda), Quim Abril, founder of Draco Global (@abrilquim), and Scott Weis of Semco Capital (@SemcoRealEstate) to present the ideas of Paysign, Inc. (NASDAQ:PAYS), Phonex Holdings Inc (OOTC:PXHI) and Assertio Holdings, Inc. (NASDAQ:ASRT), respectively.

Every member of the squad has contributed each of these ideas to the GeoInvesting community in the past, and in this case expanded on their convictions, providing insight into their current views and reasons why the stocks continue to be top selections in their portfolios.

We’re back from our meeting we had with Konatel Inc (OOTC:KTEL) over the weekend, where we were able to introduce a panel 5 of the company’s top decision makers who were able to go into great detail about their roles. After having held this event, we’re more confident than ever that we made a great decision to follow through with what we feel is a very unique way to connect shareholders with management. It gave the execs a chance to address tough questions in a more intimate and casual setting, over a round of golf.