GeoInvesting June 2017 Highlights
On The Radar
New stocks we’re taking a first glance At
Service as a Software (SaaS) Stories: Situations Where Market is Ignoring Recurring SaaS Revenue
New GeoBargain SaaS Story: In June we identified a company with a recurring revenue stream that makes up more than 60% of its total revenue. This SaaS model has significant appeal to us, as it’s a recipe for huge margins and, ultimately, more cash dropping to the bottom line for shareholders like us. We see upside approaching at least 70%.
GeoBargain on the Radar: A second SaaS turnaround story that we’ve identified is one in which 40% of the company’s revenue is recurring in nature. We first identified this name at the LD Micro Conference last month. Our due diligence continues. We see potential upside of over 100% if our due diligence continues to be positive.
Join our community today for full access and analysis of both of these names.
Learn With Us
Education to help you become a better investor
Chuck Akre on Finding Companies with High Rates of Return
By Maj Soueidan, GeoInvesting Founder
I wanted to pass along an excellent video for you to watch or listen to in your spare time. It’s packed with great perspectives by Chuck Akre about how to approach stock picking strategies to find serial compounders. I love that he started his successful investment career later in life, proving that investing can be a developed skill at any point in one’s life.
Companies with high margins and/or ROICs rank high on our research hierarchy. In fact, in our last email we talked about one we believe is on the verge of hitting some key growth inflection points.
Studs & Duds
The reality of investing – Our best and worst picks
STUDS
When our “Buy on Pullback” Mock Portfolios launched in 2016, we knew we were on to something as quickly started to notice above-average returns. After having closed our first two portfolios with respectable returns by any investor’s standards, 3, 4, and 5 are still active. The average peak performance of the folios, which can be seen at the pro portal here, are:
- Mock 1, 35.61% (Closed)
- Mock 2, 31% (Closed)
- Mock 3, 22.84%
- Mock 4, 42.41%
- Mock 5, 12.31%
Nova Measuring Instruments Ltd. (NMS:NVMI) was one of our stellar performers, sporting a peak performance of 75.49% and final return of 71.63%. ARI Network Services Inc. (NASDAQ:ARIS), another one of our Mock Portfolio stocks, was actually acquired only 8 days after its addition to one of the portfolios above, for a premium of 15.4% over the initiation price.
Here’s a snapshot of Number 3
We’ve been shouting loud for investors to take advantage of these hand-picked portfolios that we invest in, so try not to miss out on the performance of the next one.
DUDS
QUANDRANT 4 SYSTEMS (PINK:QFOR) – Quadrant 4 Systems was a company had on watch since earlier this year. Our January 9 e-mail to members stated that we believed it was “risky and asymmetrical” but with potential to be a multi-bagger. We were betting on the company avoiding a restructuring and repricing accordingly. Unfortunately, the bear case played out when the company just recently voluntarily filed for Chapter 11.
A Note From Maj Soueidan
This month’s message from Geo Co-founder Maj Soueidan
Building on the great success we had in 2016, we are really excited about the performance of our Call to Action picks in 2017 so far. After six months, the average peak return for 17 stocks was 35.04%. Of those 17, six of those CTA’s have been closed at a final average return of 51.35%.
Our Calls to Action are the backbone of what we can offer you if you join now. It is only after performing the most rigorous due diligence and cross disciplinary research that we become confident enough to pull the trigger on a trade, whether it is a purchase or sell. Our Calls to Action are always at the very top of our morning e-mail and on the front page of our Members Exclusive pro portal because they are the culmination of all of the hard work and number crunching that we are doing – so you don’t have to!
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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