GeoInvesting April 2017 Highlights
On The Radar
New stocks we’re taking a first glance At
Multi-bagger potential from burgeoning and unnoticed developing technology company: We have a stock on the radar that we think could potentially be a takeover candidate at prices 4 to 5 times higher than its current price, based on comparable takeovers.
Potential for multi-bagger returns still intact with our latest report: We published a report on an SPAC merger that we believe could have short term upside of 100% and long term upside of several hundred percent. To our surprise, the trade has not played out as we had hoped thus far. However, positive developments continue to increase our confidence that the thesis will begin to play out within 2 months.
Learn With Us
Education to help you become a better investor
- Real Estate Dividend Stock On Our Radar: Limited Downside and 58% Discount to Book Value
- Here’s Why I Finally Took a Long Position in The Eastern Company (EML)
- Could This Speculative Information Arbitrage Play Be Worth An 8 Times Current Price?
On April 22, 2017, Siegfried Eggert, our Special Situations Analyst, published our case study on Blue Bird Corporation (NASDAQ:BLBD) Corporation, a GeoTeam investment where we went active to try and prevent a takeover of the company at a depressed valuation. After being featured in Barron’s, advocating for a higher takeover price for BlueBird, our investment strategy in the company’s warrants paid off handsomely. Our efforts saw the stock increase 35.7% and warrants increase 225% since our initial investment. We detail the investment in this case study, which is timely as our recent SPAC merger investment we made this month also involves an investment in warrants. We have a long list of warrant investments in the pipeline.
Studs & Duds
The reality of investing – Our best and worst picks
Blue Bird Corporation (NASDAQ:BLBD) stock – Bought $13.96 – Current Price $18.95, +35.7%
BLBD warrants (BLBDW) – Bought $1.20 – Current Price $3.90, +225%
On May 5, 2017 we introduced our Multi-bagger Mock Portfolio for investors willing to hold stocks through volatility that could be caused by market gyrations or operational hiccups in companies of interest. However, with the right management teams in place, we feel they may be able to shrug off these obstacles over a span of 3 to 5 years. Additionally, we look at companies that we believe have shareholder-friendly share structures. This is important because a low outstanding share count is a common trait of multi-baggers.
So far, the list contains 4 stocks.
MERU – In early 2015 we stated that we were taking a position in MERU on hopes that activist involvement would lead to an eventual sale of the company. MERU was one of many 13D’s that we investigate on a daily basis in order to try and find positions where activists may look to unlock value. We were excited because a previous call in a similar industry with the same activist led to large gains. In this case, however, the activist wound up quietly selling and the company was eventually taken out under the price we purchased it.
A Note From Maj Soueidan
This month’s message from Geo Co-founder Maj Soueidan
I recently attended the Planet Microcap Showcase in Las Vegas, NV with GeoInvesting analyst Chris Irons. We both spoke on panels – mine was regarding microcap newsletters and his was a general discussion about the microcap community.
I spent a majority of my time not only meeting with other microcap investors and services, but also interviewing numerous microcap companies and their management teams. We are taking a closer look at 3 companies (in the technology, pharma, infrastructure sectors) that attended the conference that we think could have multi-bagger returns.
We attend these conferences in order to sift through hundreds of companies to try and find the best for our subscribers. We are always open to meeting with our Premium Subscribers and those interested in GeoInvesting’s services at these events.
Feel free to contact me personally if you ever want to arrange a meeting by e-mailing me at firstname.lastname@example.org.
Have the next big idea? Become a contributor and get FREE access to GeoInvesting Premium Content. Let us help you find alpha through our vast distribution network, including Bloomberg and Reuters.
Knowledge is power. Subscribe to get these ideas before everybody else.
- Remembering Marty Whitman – Deep Value Portfolio Manager
- Behavioral Finance Is Central To Value Investing
- BlueLinx Holdings Case Study – How We Nailed Attractive Entry Point In Shares of This Building Supply Company
- Five Inspiring Investors And Their Contributions To Value Investing
- Transcript – Andrew W. Lo on “Adaptive Markets: Financial Evolution at the Speed of Thought”
- Change Has Made Us Better, Improving Our Investment Products Is At The Forefront
- Change Has Made Us Better, Improving Our Stock Research Service Is At The Forefront
- Understanding Zoned Properties’ Business: CEO Bryan McLaren on Triple-Net-Leasing, Legislation and Community Relationships
- Gridsum CEO Guosheng Qi On Understanding The Company’s Unique Business Position In Big Data
- I’m A Bull At Heart, But I Have To Keep It Real