GeoInvesting July 2017 Newsletter

GeoInvesting July 2017 Newsletter

GeoInvesting July 2017 Highlights

On The Radar

New stocks we’re taking a first glance At

Our latest buying opportunity: A stock we have been following since March of this year recently reported strong earnings, but had a muted reaction to the report, which we believe makes for a buying opportunity. We believe this was a result of the company putting out the report during the day as well as not presenting adjusted numbers clearly.  The more representative numbers would have helped the market see the company’s true growth.

We believe that these information arbitrage opportunities could eventually help this stock double from current levels — even after gaining more than 40% since we began following it in March. Additionally, we like the fact that its new management team is led by activist investors that we believe can generate significant value.

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Learn With Us

Education to help you become a better investor

Microcaps Give You a “First Mover Advantage”

By Maj Soueidan, GeoInvesting Founder

This article talks about how I learned how to get a “first mover advantage” from investing in microcaps. My introduction to microcaps began when my Dad would occasionally emerge from his “stock cave” in the basement. He would tell me about a great company he found that I never heard.  Then it would end up quickly doubling! When I finished reading “One Up On Wall Street” by Peter Lynch, given to me by my Dad, I knew I wanted to invest for a living one day.  I eventually learned that my Dad gained a competitive advantage, whether he knew it or not, by investing in Microcaps because it gave him a ”first mover advantage.”

Studs & Duds

The reality of investing – Our best and worst picks

STUDS

Not only have our Mock Portfolios performed extremely well on their own over the last several months, they have also outpaced the S&P — the true definition of alpha.

Here’s a more graphical representation of how our “Buy on Pullback” Mock Portfolios 1 and 2  fared vs. the S&P, even as the S&P itself itself was in took advantage of favorable market sentiment.

 

 

DUDS

Systemax Inc. (NYSE:SYX) is a company we have been following since the first quarter of this year. Despite working to conduct our due diligence on the name, we were a little late to pull the trigger, resulting in us missing out the company’s most recent earnings report. Reporting on August 2, the company saw sales increase 5.1% and operating income nearly quadruple. The stock shut up as a result, moving from about $19 to over $25 on the results. We first started research SYX in March of 2017 with the stock trading at $9.85.

A Note From Maj Soueidan

This month’s message from Geo Co-founder Maj Soueidan

It remains an exciting time to be a microcap investor. The emergence of activism in the smaller cap space is yet another reminder that interest levels continue to rise in an area that we’ve honed as our specialty. Though we have always thought microcaps to be the dominant asset class in terms of risk and reward, we are also trying our hand in some activism, with some success.

A recent activist effort in Bluebird (BLBD), covered by Barron’s, proved to be a success on both the monetary front as well as the PR front for GeoInvesting. Watching other, larger name investors move into the microcap space continues to keep us excited about what the future holds for GeoInvesting and our subscribers.

We currently have a pipeline full of ideas that we are working on vetting so that they may, someday, become points of action for us, and possibly for our members — and you!

Thank you for reading…

~ Maj Soueidan, GeoInvesting Founder

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About the Author:

GeoInvesting is an investment research boutique in Skippack, Pennsylvania The GeoTeam's focus is on providing high quality stock market research tools and in-depth due diligence on U.S. small and micro-cap equities and on Chinese companies trading in China and the U.S. We research long and short ideas, and are the leading research boutique charged with helping investors navigate the treacherous China equity universe with a paramount goal toand protect portfolios from frauds. Numerous notable media outlets have credited GEO We have been credited with exposing numerous fraudulent companies in China. We have built a reputation in the US small and micro-cap space as champions of transparency. On the long side, we have also developed a , with a knack for picking stocks that have the propensity to get acquired at attractive premiums to their current prices will be acquired. Our team is currently comprised of 13 analysts and traders, and 7 on-the-ground researchers in Mainland China.

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