If you are a premium member make sure you sign in to see All the exclusive content In This Issue.
This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting key moves, missed signals, and overlooked opportunities in our 1,500+ coverage universe built since 2009.
Summary Of What’s In This Weekly Wrap-Up
A lot went down this week, mostly good stuff, but of course we had that unexpected disappointment that sneaks up on you, an unavoidable part of being a microcap investor.
My personal highlight of the week was a timely Skull Session Chat with Qualstar Corp. (OOTC:QBAK) just one day before the company dropped news of a 3:1 forward stock split and corporate move to Nevada. These are signs that the story may be accelerating and gearing up for an up-list to the NASDAQ. GeoInvesting Model Portfolio and Research Screen standouts included PPIH, ASYS, FEIM, and VELO.
The average return performance for the week across these 4 stocks was 50.51%. Wow, after a rough November, I really needed that.
Crawford United Corporation (OOTC:CRAWA), a GeoInvesting model portfolio staple, agreed to be acquired at $83.42 per share after a 8-year run in our Select Coverage Universe Model Portfolio that rewarded patient investors with a return of 1416.72% from 8/9/2017 to 12/9/2025 . However, we’re not happy with the buyout price, as it materially understates the accelerated business momentum the company is experiencing.
Lakeland Industries, Inc. (NASDAQ:LAKE)’s Q3 2025 fell short of expectations, leading us to remove it from our portfolio, despite our hopes it might rebound.
Illiquid Reo Plastics, Inc. (OOTC:REOP) kept delivering consistent earnings results and is beginning to show up on investors’ radars.
We’ll get into all of this below.
Here are other highlights this week:
- Optical Cable Corporation (NASDAQ:OCC) received renewed attention following observations tied to its relationship with Lightera.
- Covalon Technologies Ltd. (OTC:CVALF) released “meh” Q4 results and delivered several operational updates in multiple channels.
- Aluula Composites Inc. (OOTC:AUUAF) (AUUA.V) reported strong preliminary Q4 sales results supported by growing demand and a strong order pipeline. Capacity expansion is in the works.
- Butler National Corp. (OTC:BUKS) reported exceptional Q2 results and backlog growth, despite program delays linked to the government.
- Kewaunee Scientific Corporation (NASDAQ:KEQU) sales showed solid growth, though margin pressure weighed on results; backlog remains healthy, with some near-term unevenness expected.
- Frequency Electronics, Inc. (NASDAQ:FEIM) revenue recovered from earlier softness as project delays eased; investors appear focused on the longer-term growth outlook despite weaker EPS.
- Perma-pipe International Holdin (NASDAQ:PPIH) results came in well ahead of expectations, reinforcing confidence in backlog strength and an improving margin profile.
- Mitek Systems, Inc. (NASDAQ:MITK) returned to organic growth, supported by continued momentum in SaaS, while EPS remained under pressure.
Let’s take a closer look at this week’s earnings and research updates across our coverage.
| The Weekly Wrap-Up is meant for those in a hurry, along with those who want to spend a weekend hunting for ideas or quickly catch up what we talked about during the week. Our Weekly Wrap-Up brings together everything we discussed during the week in our morning emails and premium alerts, as well as new information and high conviction ideas that we did not communicate that you should know about. From earnings coverage, new research coverage on stocks, picks and research from our subscribers to event highlights from our monthly open forum that takes place to the beginning of each month and interviews with management teams and investors. 📬 Missed any emails this week? You can catch up on all of them in one place — just check out the full archive here. |
Earnings and Research Updates
Reo Plastics, Inc. (OOTC:REOP), a plastics injection-molding company posted another solid quarter, with Q2 2026 sales up 6.7% year-over-year to $14.3 million and EPS climbing to $2.32 from $1.71. This marks six straight quarters of strong growth and brings 6-month EPS to $4.46, impressive numbers for a company still trading under book and at an annualized P/E of ~6.4x.
This week, MS Microcaps published their REOP Cliff Note on Geoinvesting, highlighting its capacity expansions (13 new presses), consistent workforce investment, and insider ownership (81% held by Carrie Sample). They also pointed out that several of REOP’s end markets in electronics and telecommunications, computer and business equipment, and filtration/flow technology position it as an indirect participant in data center growth through OEM customers whose networking hardware, server housings, cooling systems, and filtration components support modern data center infrastructure. You can read more about that here.
Crawford United Corporation (OOTC:CRAWA), a provider of specialty industrial products and engineered components, is being acquired by Spx Technologies, Inc. (NYSE:SPXC) for roughly $83.42 per share in cash. That’s a $300 million transaction value, structured as a merger, and expected to close in Q1 2026.
We’ve been following CRAWA since 2017, when we flagged the Air Enterprises acquisition as a transformative step and coded the stock as a “GeoBargain” at $5.50. GeoBargain was one of our legacy terms we used for conveying that we had a high conviction for s tock.
Over time, CRAWA built a strong track record: consistent EPS growth, well-timed bolt-on acquisitions, a clean balance sheet, and exposure to attractive end markets. This wasn’t a flashy story, but it was a consistent one, and the market eventually rewarded that. That being said, we are extremely unhappy with the buyout price. If you take into account the company’s current quarterly EPS run-rate and strong comments in the company’s last quarterly report just published, we think the stock should’ve fetched a takeout price target of $100 to $120 per share. We’ve already contacted activists.
Optical Cable Corporation (NASDAQ:OCC), a manufacturer of fiber-optic and copper data-communications cabling, popped back on our radar this week via a small information arbitrage opportunity. While OCC didn’t release any new filings, we came across a bullish
——
Sorry, the full post is only available for paying subscribers. If you are already a paying subscriber, please make sure you are logged in. To become a paying subscriber please click on the link below
(We also offer a new very popular monthly subscription option).
gain Exposure to our expanded coverage on Our 1500+ Microcap Universe, Subscribe below.
200+ multibaggers and counting
GeoInvesting is a premier research platform for microcap investors, dedicated to uncovering high-potential stock ideas in undervalued companies across various sectors. With over 30 years of investing experience, GeoInvesting has covered more than 1,500 equities, providing often actionable proprietary research. The platform has been instrumental in identifying 200+ multibagger stocks, and offers investors exclusive access to over 600 management interview clips, allowing for deeper due diligence and understanding of the microcap stocks, many of which make it to market-beating premium Model Portfolios. Join the GeoInvesting community for the best stock research and microcap insights to help you stay ahead in the market. To learn more about our Premium Services, go here.. (https://geoinvesting.com/premium-research/)