GeoInvesting May 2017 Highlights
On The Radar
New stocks we’re taking a first glance At
Warrants with Upcoming Catalyst: We believe that the waiting is nearly over and that the catalyst we have been waiting on for a class of warrants we have owned for a few weeks is finally almost here. We think shares of these warrants have the chance to double in the near term and exceed this for long term investors.
Speculative Tangible Book Value Play: We are following a stock that is trading well below its tangible book value. Insiders have been buying shares aggressively and we have already started our comprehensive research on the name. We believe 2017 could be a breakthrough year for this name.
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
Shareholder Activism Will Help Close the Microcap Valuation Gap
By Maj Soueidan, GeoInvesting Founder
In this educational piece, Maj Soueidan explores how a reversion to the mean in microcaps can be helped along by activist investors sniffing out value in areas that bigger investors and larger banks have missed. As GeoInvesting has done in the past (with cases like BLBD where our research resulted in over 30% returns), small investors can “help management along” by suggesting strategies to unlock value and run a business more efficiently. When management isn’t receptive, sometimes public dissemination can help put pressure on a Board of Directors to help unlock value. Click the link above to read more.
Studs & Duds
The reality of investing – Our best and worst picks
Bluelinx Holdings Inc. Common S (NYSE:BXC) — We first brought BXC to our premium members in June of 2016 at $7.20 and the stock has now hit new highs after posting impressive Q2 numbers and following through on its restructuring initiative. Shares are now at $10.79, a gain of 49.8% since our initial research note.
Data I/O Corporation (NASDAQ:DAIO) — In May of 2017 we introduced our Multibagger Mock Portfolio and added DAIO at $4.77. Shares have recently closed at $7.68, for approximate upside of 61.1%. To see the other stocks in our Multibagger Mock Portfolio, join our premium service now.
Volt Information Sciences Inc. (AMEX:VISI) – On June 9, 2017 VISI reported Q2 2017 results which we summarized here. The stock opened that morning with a muted reaction to the news, but tanked after the conference call. The stock has been weak since. We are working to better understand the business and the company’s restructuring effort already in place to determine if there’s future potential for a larger, secular turnaround in VISI shares.
A Note From Maj Soueidan
This month’s message from Geo Co-founder Maj Soueidan
After June’s rotation out of technology stocks and into safer, lower valuation names in sectors like finance, the financial media has once again helped whip investors into a semi-panic about what I believe is a relatively normal and expected market move. What the media is missing is that the Dow held steady for the most part on Friday and while the NASDAQ (up more than 200% over the last 7 years) took a breather, money wasn’t leaving the market, it was leaving aggressively valued stocks. We are leaving the door open for a rotation into value and microcap stocks, as we talked about many times in the past would happen when the market reached a point where valuations have expanded aggressively. As I have said in the past, “Reversion to the mean is painful, but necessary”. Once again, thank you for taking the time to consider GeoInvesting. Please continue to follow our newsletters for more information and don’t forget to join when you’re ready. Thank you for your continued interest in GeoInvesting.
~ Maj Soueidan, GeoInvesting Founder
Have the next big idea? Become a contributor and get FREE access to GeoInvesting Premium Content.
Knowledge is power. Subscribe to get these ideas before everybody else.