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When Activism Intersects Turnarounds and The Microcap Investing Edge [GeoWire Weekly No. 71]
It’s true. There are a lot of investors and hedge fund managers in the realm of microcap investing that have breathlessly echoed what we have been saying about the advantages of investing in the space for some time. We’ve also been saying that the selloff in many microcap stocks is overdone and it’s time to really pay attention to where the growth and value are. Investment ideas don't have to be screaming in your face at close range. Sometimes it is nuanced, which is why we are so keyed in on deeper research, be it by virtue of idea generation or education, and connecting with the content of peer analysis and discoveries outside the walls of GeoInvesting. So, for the third week in a row, and on the heels of last week’s highlight video reel of our conversation with Vittorio Bertolini, we are focusing on another professional who publishes third party content - Seeking Alpha Contributor, The Institute for Innovative Development (IID), who endeavors to be: “...an educational and business development catalyst for growth-oriented financial advisors and progressive financial services executives who are determined to grow their firms in a business environment of accelerating business and cultural change.” As you might expect and as conveyed by its business model, IID’s columns are intended to be learning fodder for professionals interested in the perspectives of those in networking and business activities to find commonalities across a spectrum of next-generation investment instruments.
Investor Finds Value in Recreational Powerboats Company [GeoWire Weekly No. 70]
In concert with one of our favorite themes of highlighting compelling content from other investors, this week I have opted to bring you another investment thesis from a peer who also focuses on micro to small cap companies. Last week, we shared a pitch from a hedge fund that is putting stake in a money services company that it believes is grossly undervalued and whose opportunities are misunderstood or discounted by investors who think foreign bank notes don’t have a bright post-Covid future. So, after another bout of research from “around the web”, we found an intriguing pitch from a Seeking Alpha author who wrote on a dividend-paying microcap company that designs, manufactures, and sells recreational fiberglass powerboats for the sport boat, sport fishing, and jet boat markets worldwide.
Hedge Fund Assigns a 3-year $70 Price Target on $18 Stock in Finance Industry [GeoWire Weekly No. 69]
While perusing through Twitter, I came across a tweet that highlighted an investment letter by a long/short hedge fund based in New York, which included their bullish thesis on a company, together with its subsidiaries, engages in the money service and payment businesses in the United States and Canada, with a general increase of those activities in some select foreign countries.” A segment of the company’s operation deals with banknotes, which are "bills" or forms of currency that one party can use to pay another party. What caught my attention was that hedge fund has a three year price target of $70 on the stock, and it's currently selling at $18.69 with a P/E ratio of 10.5. We’ll get into the investment thesis in a second. It’s not often that we seriously track companies that are in finance related industries, but when the stock came across our screener in June of 2022, we couldn’t help but do a little more investigating into the fundamentals that were improving, of which success is dependent on some predominant trends in the travel sector that deals with international currency and payments.
We Are Paying Attention To This Nearly 100 Year Old Customer Experience Company [GeoWire Weekly No. 68]
This January, our first Fireside Chat was with a nearly 100 yr-old company that takes a multi-channeled, technology enabled, approach to customer experience (CX), operating through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. It's not our first talk with a company involved in a part of that industry, who dealt with customer satisfaction and employee standard operating protocol management, which could be viewed as a subset of CX. We argued that in the post-Covid era there would be an increased need to put an emphasis on the way businesses understand their customers, and why it’s now more important than ever. As the world sees it, there is plenty of room for CX to grow. A study conducted by Grand View Research determined that...
How Investors Can Turn a Profit from Stocks Going Through Bankruptcy [GeoWire Weekly No. 67]
In light of the riskier market environment we are in, I have been writing to you about our new Recession Proof and Recession Resistant Model Portfolios. A great related next step is to dive deeper into the tunnel and focus on the topic of Chapter 11 Bankruptcy and how to profit by focusing on two buckets: 1) Companies that survive a bankruptcy process. Will Muscle Pharm Corp (OTC:MSLPQ) be a candidate? 2) Companies whose businesses will actually benefit as bankruptcies increase, such as Heritage Global Inc. (NASDAQ:HGBL) and Creditriskmonitor.com Inc (OTC:CRMZ)
GeoWire Monthly, Vol. 3, Issue No. 1, January 2023
We’ll be getting back to the normal Monthly GeoWire format next month, but we wanted to take this first edition of the new year to look back at everything we were up to in 2022. Don’t worry, we will be getting back to our normal video format starting in February. This month’s GeoWire will be split up into 2 issues - one today, and the other next week. A lot happened in 2022, and we thought it was best to split it up into two separate posts to be able to put adequate focus on the themes we want to discuss. This Week: The stock market and recession, our new Model Recession Portfolios, and still the chance to participate in our special offer for 2023.