GEO Investing

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.

Despite the Russell 2000 and Microcap ETF indexes experiencing very muted action over the last two months, wavering in both slight negative and positive territory, there have actually been a few bright spots at GeoInvesting. By the way, if you’re a new premium subscriber to GeoInvesting, you might be unaware that, every Sunday, we provide an update to our premium community of the previous week’s developments in our 1500+ microcap stock coverage universe. What follows is a summary of what’s been happening and what we’ve been talking about with our community for the last three weeks.

While the majority of our microcap research is generated  in-house, we believe in the power of research collaboration and the strength of our GeoInvesting contributor community that’s been cultivated over the last 16 years. Our success is not just measured by the performance of the stocks we research and wear on our sleeves, but by the dedicated authors who selflessly pitch their own ideas, enriching our collective investment knowledge.

Just yesterday, we got notice that Bobby Kraft made his Top Tier Tracks from the 2024 Vegas Planet Microcap Showcase available on his channel. Prior to the replays being published, Bobby got a chance to sit down with Maj Soueidan and Mathieu Martin, who both regularly appear on his channel to discuss the current state of the microcap market in the U.S. and Canada. 

Maj and Mathieu shared their initial impressions and overall positive feedback about the event’s organization and quality of companies, and focused on some key interactions of and observations with company management.

During our May 9, 2023 Open Forum, we discussed a microcap insurance company that was just announced as our idea of the month.  While we normally do not love insurance companies, valuation, management commentary and market expansion potential are worth exploring with our newest idea of the month. 

Here’s what we have so far: The company is profitable, Shares trade below tangible book of $3.77, TTM P/E of 6.8x, Q1 Run-rate P/E is 5x, Similar players have been acquired for over 3x the tangible book, Large cash infusion from asset sale will increase the number of policies that can be written, Under-penetrated market presence.

Given $LAKE’s announcement last Wednesday stating a new “Strategic Partnership” with LineDrive, a leading outsourced sales and marketing organization, it gives us a chance to highlight a part of a post-earnings April conversation with the company’s CEO Roger Shannon about expanding LAKE’s market presence.

The partnership can be certainly viewed as a foreshadowing of things to come in the near future regarding Lakeland’s M&A initiatives, with the move potentially putting them in a position to accelerate the effectiveness of new partnerships or acquisitions.

A few weeks ago, I was getting caught up with the messages in Geoinvesting’s Twitter inbox. There was a message I had not read yet from somebody who said they found us after listening to a podcast and wanted to know more about our services.

It was a recent Podcast from one of the most popular voices on Twitter, Chris Irons, or Quoth The Raven (@QTRResearch), with his guest and trading expert, Sang Lucci (@SangLucci). Raven used to work at GeoInvesting a few years ago, but we hadn’t really kept in touch since then. I recently ran into Sang Lucci in Puerto Rico, where I usually spend half the year. Sang rents out fully loaded work stations at a spot called Trade Space.

Ben Claremon, the host of Compounders Podcast, which has a regular spot on Bobby Kraft’s channel on YouTube, Planet Microcap, picked Maj’s brain on the challenges of being a microcap investor in recent years, the things that go into assessing management teams through interview, portfolio construction, microcap misconceptions, and opportunities in other markets such as those in Canada and little-followed sectors.