We are finally launching our 11th Buy on Pullback Model Portfolio. The first four companies are being added to the model portfolio, and we plan to add 1 to 3 more. Averaging our 12-month expected return of these 4 stocks translates to an expected portfolio return of 80.58%. In January 2016, GeoInvesting introduced the “Buy on Pullback” (BOP) Model Portfolios, aimed at swiftly capitalizing on mispriced opportunities in the market, identifying stocks experiencing negative or muted reactions to positive news or downside overreactions to negative news that we see as temporary.
On September 7, 2023, Ridgewood Investments Portfolio Manager Sam Namiri joined me for an Investor Insights Skull Session, where we delved deep into the realm of microcap investing, shedding light on Sam’s personal journey and the intricacies of his investment approach. We discussed the significance of networks and conferences in sourcing investment opportunities, highlighting the value of trade shows as fertile grounds for gaining insights.
There are lots of reasons you might choose to join a stock research platform like GeoInvesting. However, when it comes down to it, in the end, you are probably looking for interesting ideas on stocks that you might want to add to your portfolio or perform research on.
So, that’s why in this installment of the Monthly GeoWire, we are reiterating a new addition to our website – The Pitch Lobby, a concept we recently sent you some information about on September 9, 2023.
We don’t want to focus on short term returns, but it’s nice to see that the stocks included in the Pitch Lobby are performing nicely. Within less than 2 months, the Average return was over 9% at the time of our email, while the NASDAQ and Russell 2000 small-cap index were down 2.4% and 4.1%, respectively. The peak average return was 16.92%.
It’s fitting that as we cross the threshold to the 100th Weekly GeoWire edition, that we also crossover to a Monthly Open Forum format that we feel will bring more value to you. It basically revolves around honing in on the most important coverage of the prior month to get you up to speed on subject matter that we put the most time and effort into.
This doesn’t, however, mean that we are abandoning some of the staples of the forum, such as earnings coverage – it just means those stapes will be much more pointed. For example, of the 3 dozen earnings releases we highlighted in August, we spotlighted 10 of those in this past week’s event.
GeoInvesting’s Skull Sessions continue with Investor Insights featuring Paul Tschischik (Investmentideen at Twitter), a part time special situations investor/financial analyst. Paul is a former Constellation Software employee, a Joel Greenblatt Connoisseur, financial analyst, and contributor at the Investmentideas Substack, Value In Special Situations, for “Investors who want to invest against the crowd.” In the full video replay of the event, he and Maj Soueidan delve into investment strategies, exploring where they intersect. Paul highlights the importance of, Grasping a business’s operations, Properly valuing stock, Understanding catalysts for growth, and the role these catalysts play in unlocking shareholder value, Expansion in valuation multiple, Effective capital allocation and share buyback program, and Dividends and EPS growth.
Last week, had a Skull Session/Investor Insights session with Tim Heitman, an investor of over 40 years who transitioned from investing in larger companies to focusing on micro and nano caps. His pivot was driven by the greater potential for alpha generation due to market inefficiencies and fewer analysts covering these stocks.
Among the many things we discussed, we tackled analytical approaches to investing in smaller companies and the challenges and opportunities presented by the OTC market. We also discussed the importance of qualitative analysis, management change, and the need for adaptable strategies in this space.
This past week, I engaged in a Skull Session Management Briefing with Jan Loeb, the CEO and President of Acorn Energy Inc (OOTC:ACFN), covering the company’s second-quarter results, growth strategies, and growth initiatives.
Acorn Energy manufactures remote monitoring products, focusing on industries like commercial, industrial, and residential power generation and corrosion protection. They faced a growth slowdown in 2022 due to the sunsetting of 3G technology, which led to a reduction in connections and revenue. However, they rebounded with a renewed focus on LTE technology and are now aiming for 20% annual cash basis revenue growth.
Had Nolan Ryan selected a different career path….say microcap investing…I’d venture to say that it’s likely his mindset and tenacity to achieve greatness would have made him as successful an investor as he was a pitcher.