GeoInvesting Week In Review: 5/24/2019

//GeoInvesting Week In Review: 5/24/2019

GeoInvesting Week In Review: 5/24/2019

On Monday, we closed out a long position in Cui Global, Inc. (NASDAQ:CUI), a company that engages in the acquisition, development, and commercialization of power and electromechanical components worldwide. We are working on a case study for our members on where we went wrong on the CUI story – remember, we sometimes learn more from our failures than our successes.

On Tuesday, shares of a turnaround stock we recently began coverage on hit a new 52 week high on the heels of the company’s bullish Q1 2019 conference call. You can see our original research note from April 3, 2019 that discusses the catalyst that sparked the stocks strong run thus far in 2019.

We also noted that Evans & Sutherland Computer Cor (OOTC:ESCC) director Tim Pierce filed a Form 4 showing he purchased 49,600 shares at an average price of $0.60. This open market purchase, coupled with the fact that ESCC is trading near cash per share of ~$0.55, has us believing the stock is near a level of support and revisiting the story, despite lumpy results over the past year. Of particular note, this is the first major insider buy we have seen at the company since we’ve been following the stock since 2014. Pierce joins billionaire Peter Kellogg as a large shareholder.

Mid-week, Geo co-founder Maj Souiedan visited Tss Inc (OOTC:TSSI) headquarters in Texas. The company provides various services for the planning, design, development and maintenance of mission-critical facilities and information infrastructure, as well as integration services. TSSI has been part of our Run to One Portfolio since September 20, 2017, when the stock traded at $0.20 per share, our Multi-bagger Portfolio since November 2017 and our Favorite Model Portfolio since December 2017. Shares currently trade at $0.85.

On Wednesday, we also secured an interview with new possible Run to One candidate Phonex Holdings Inc (OOTC:PXHI).  On May 17, 2019 we highlighted the company’s strong Q1 2019 results, a reason why we wanted to speak with management. We will soon update our members with notes from our call with the founder and CEO.

On Thursday, we reported Form 4 activity from three different companies: infrastructure company Gse Systems, Inc. (NASDAQ:GVP), telecom company Otelco Inc. (NASDAQ:OTEL) and food company Innovative Food Holdings Inc (OOTC:IVFH). At GVP, CEO Kyle Loudermilk purchased 100,000 shares on the open market at $2.30. OTEL’s largest stakeholder, Ira Sochet, purchased ~28,000 shares on the open market at an average price of around $15.35. Finally, at IVFH, JCP Investment Partnership filed a 13D/A showing it has increased its stake to 10%, or 3.37 million shares.

Finally, Friday we noted that Stereotaxis Inc (OOTC:STXS)a company that designs, manufactures, and markets robotic systems and instruments for the treatment of abnormal heart rhythms in the United States and internationally, saw its shares hit new 52 week highs on the heels of a bullish Seeking Alpha article titled, “Stereotaxis: Well Positioned To Become ‘Intuitive Surgical Of Endovascular Surgery’ With Genesis Launch And Proprietary Catheter Development”.

Additionally, Synalloy Corporation (NASDAQ:SYNL), a company engaged in a number of diverse business activities, including the production of stainless steel pipe and tubing, fiberglass and steel storage tanks and specialty chemicals, was sent another letter by Privet Management, who reiterated its $20.00 per share acquisition proposal and its belief that its offer represents a premium value for shareholders.

Lastly, we noted that a company that develops and provides cellular communications systems for enterprise customers, reported earnings. The company has been working with Tier 1 US carrier sales teams in numerous jurisdictions and first responder counties in the United States, completing installations and trials, where orders are expected upon commercial launch. The company and its carrier partners continue to see growing world-wide demand for 4G/LTE PTT devices in all verticals of the enterprise market including the “in-vehicle” category. We had previously mentioned the company’s shift from an older 3G legacy product offering to a new 4G product portfolio. We mentioned that while it goes through this process that revenues would continue to be adversely affected.

By | 2019-05-24T16:02:49-04:00 May 24th, 2019|News Letter|0 Comments

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 to protect portfolios from fraud. 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 knack for picking stocks that have the propensity to get acquired at attractive premiums to their current prices. Our team is currently comprised of 13 analysts and traders, and 7 on-the-ground researchers in Mainland China.

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