GEO Investing

After interviewing the CEO, we learned that the company’s data center product is an enclosure designed to protect power systems. This caught our attention because power is one of the biggest growth areas in the data center market. The global data center power market is expected to grow from approximately $22.46 billion in 2023 to $41.3 billion by 2029, with a compound annual growth rate (CAGR) of 10.6% during this period.

The following is a developing story we alerted our premium members to on 8/23/2024 when the target stock in this update was trading at around $4 per share.

Just when I thought I would swear off investing in any U.S. listed China based stock (due to the painful years-long Origin Agritech Limited (NASDAQ:SEED) journey), along comes another one.

Before you say anything, DON’T SHOOT THE MESSENGER.

This company, trading on the NASDAQ, is a Chinese software company with a focus on AI technology, particularly a conversational AI platform. The company has licensed its technology to major telecom firms in China, sports annual revenue of about $59 million and is backed by Chinese conglomerate, Alibaba.

While the target company is losing money and has a debt burden, fortunes could be dramatically changing soon.

Thomas Birnie, a part-time investor and GeoInvesting contributor, presented a case study on $NFLX as a multi-bagger investment opportunity, focusing on the period around 2011-2012. During this time, Netflix’s stock experienced a significant decline, losing about 75% of its market value. Birnie emphasized that this was partly due to the company splitting its DVD rental service from its streaming service, leading to margin compression and a drop in investor confidence.