GeoInvesting August 2017 Highlights
On The Radar
New stocks we’re taking a first glance At
Our Next Potential Takeover Candidate — This stock has already moved up 19.01% since we first disclosed to members we were buying it in early August. We also published why we thought the company was an acquisition target in our “Reasons for Tracking” series. We believe that a takeover of this name could cause shares to appreciate as much as 70%.
Continuing Opportunities from Last Month — We believe this continuing information arbitrage opportunity could eventually help this stock more than double from current levels. Since profiling it last month, weak market conditions and a misunderstood story have caused the stock to get cheaper, leading us to believe it continues to be a lucrative opportunity. Additionally, we like the fact that the company’s new management team is led by activist investors that we believe have already started creating significant value.
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Learn With Us
Education to help you become a better investor
By Maj Soueidan
Peter Lynch was my hero as a kid — Joel Tillinghast worked alongside him for years. As a Peter Lynch disciple for nearly 30 years, it’s great to see Lynch’s style relived through Tillinghast’s strategies. The book is a fantastic read that I have recommended not just to members, but to my own team. It’s a balanced read that even mentions some popular activist shorts — a great read for both value investors and shorts alike. For almost 30 years, Tillinghast has consistently delivered superior results with Fidelity’s Low Priced Stock Fund (FLPSX).
Studs & Duds
The reality of investing – Our best and worst picks
Responsys Buyout: A “Stud” Case Study
In keeping with our theme of takeovers, we wanted to highlight an “oldie but a goodie” — the takeover of MKTG. This was one of the 40+ companies that GeoInvesting has profiled over its 8 year history that wound up hitting its terminus in the best way possible: the company was acquired at a premium of 248% of its price when we first profiled it.
We first pointed out MKTG to our members in November of 2012, noting that the company’s third quarter results had caught our interested. We added the position to our “long positions” on January 14, 2013 while the stock was trading at $7.76. We followed up with members throughout 2013, like this note from June when the stock was trading at $13.09.
By December of 2013, the company announced it was going to be acquired by Oracle for $27.00 per share in cash. You can read our comprehensive notes on MKTG here.
We continue to see takeover deal flow increasing in the microcap space and we’re continually looking for the next opportunity for our members.
Please consider joining our community for full access to our pipeline of well-researched ideas. Our New Member 90-day Guarantee is still available.
A Note From Maj Soueidan
This month’s message from Geo Co-founder Maj Soueidan
Hurricane Harvey – Irma Rebuilding Process
On behalf of the GeoTeam, our prayers are with those who are being impacted by Hurricane Harvey and Irma. It is unfortunate that as investors, in times of natural disaster, we are compelled to search for companies that will experience an uptick in sales and earnings as a result of increased demand for their products. Still, we need to face reality and try to put our emotions on the shelf for a moment. We should also be thankful that Americans have a habit of coming together in times like these, and that we have capable companies that are prepared to lend their hands in the rebuilding process.
Please note that The American Red Cross website will help you schedule a blood or monetary donation to help those in need.
In 2016, we created a list of firms that are rebuilding the infrastructure of the U.S, many of which we have been recently keeping an eye on due to the annual cyclical nature of the hurricane season. We have pored through this list and carved out companies that do a lot a business in Texas that we think will be active in the rebuilding process. Most of these companies already have had good growth prospects due to their fundamentals. Additionally, because of their smaller capitalizations, they do not have the attention from CNN and other major outlets that larger organizations enjoy, such as Lowe’s Companies Inc. (NYSE:LOW) and Home Depot Inc. (NYSE:HD).
We expect that over the next several weeks to months, these companies will sign lucrative contracts and book additional revenue as they help rebuild Houston and other devastated areas throughout the Gulf region. We also expect that, over time, investors will find these stocks as opportunistic.
We’d love to share our ideas with you. You can join GeoInvesting and get full access by clicking here.
~ Maj Soueidan, GeoInvesting Founder
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