So far, December has seen a bit of volatility across several microcap stocks that we actively follow. For example, the MSMqi has declined by approximately 6.25% from record highs reached in November. And I’m okay with that. Our team generally welcomes periods of pause in momentum and related pullbacks in stocks we follow. This provides opportunities to revisit and analyze stocks that we still need to look at or maybe add to current positions. The December performance of other key indexes are mixed:
As we continue to adjust to the evolving market landscape and subscriber feedback, we believe it is prudent to focus on more impactful investment strategies through a main high-conviction portfolio that we’ve been building on a monthly basis through our Live Monthly Forum Events.
The core approach and philosophy that guided the Top 5 Faves Portfolio selections will remain intact, but with a greater emphasis on quality.
Overall, it was a slow week for news in our coverage universe. However, few earnings crossed the wire, but we’re particularly paying attention to one, which currently resides in our Run to $1 Model Portfolio and is discussed below.
Geoinvesting has launched a few Model Portfolios since 2016. However, we have been tweaking the Model Portfolio framework over the past few months. The latest is the Open Forum Focus Model Portfolio (launched earlier this year), finally replacing the Legacy Top 5 Faves Portfolio, which delivered a 203.81% average return over the course of its existence, or since 2019. The new model portfolio aims to highlight GeoInvesting’s highest-conviction, earnings per share growth-driven ideas in response to shifting investor sentiment favoring value and quality vs. pure growth stocks, since 2022.
Understanding the anatomy of a multibagger stock—one that multiplies its initial investment value several times over, defined as gaining 100% or more—can be transformative for investors. Multibaggers case studies can offer a lens through which to examine the factors that drive exponential stock growth. Many multibagger stories can be blueprints of how company fundamentals, industry trends, management decisions, and market conditions converge to create outsized opportunities.
Now, onto another spotlight—replays of MS Microcap’s second installment of The Starting 5 Virtual Conference held on November, 13, 2024 and hosted by MS Cliff Notes. So, we’ll get right into the videos which include bios, strategies and pitches of all the event’s participants.
The biggest hurdle for early-stage growth companies, from an investment perspective, isn’t simply determining whether they have a good business model. It’s assessing whether they can grow that business without destroying their capital structure by continually raising dilutive equity to cover losses on the path to (potential) profitability.
We decided for the first time to use this due diligence framework as an experimental launching pad for a potential ongoing series of Skull Sessions labeled, ‘You Make The Call.”
When we introduced the concept of “You Make The Call”, we explained our motivation like this. In case you missed that email here’s what these events are all about.
This event format is on an experimental basis, but we thought it’d be a good idea to bring in management teams from speculatively-viewed companies eager to present their business plans to us. While we recognized that the success rate for these kinds of ventures may not be high, we believed it would be valuable to hear potentially innovative ideas that may have a chance to bear fruit for investors.