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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting the most important developments across our 1,500+ microcap coverage universe built since 2009, including high-impact earnings reports, information arbitrage discoveries, contract announcements, and model portfolio updates. We also highlight insights from our investor and CEO interviews (Skull Sessions).
See all emails sent during the week here.
As usual, we highlight the stocks we want to watch most within our big movers and losers list of the week, included at the end of this post. For example:
Well, I didn’t think I would be doing this anytime soon, but Richardson Electronics, Ltd. (NASDAQ:RELL) is back on our radar due to recent news about its expanding role in the power solutions narrative, including data centers and battery energy storage systems (BESS).
The stock is not cheap, and the company has had a challenging time returning to growth since 2022/23. However, in the current market where narratives are driving prices ahead of fundamentals or inflecting catalysts, we recognize a benefit to start tracking stocks earlier than we normally would. If you know me… I am totally ok with more stocks.
This week, I recorded a deep dive investor insight Skull Session with Dean Pernas of Pernas Research. They have a really cool investing framework they call “motor investing.”
I was joined by Lukas Milosic of Pixel Research.
We unpacked how Pernas identifies companies before their financials inflect, why improving trajectories matter more than static “quality,” how AI is changing research workflows, and the kinds of overlooked microcap opportunities they are seeing today, although most of their time is spent investing in stocks with market caps between $300 million and $5 billion. Dean also discusses an AI tool he built and walks us through his stock research website, which you can visit at this link.
Read the summary here.
Stocks discussed at Geoinvesting last week:
Feature Stock: RELL
Microcap Investing Cliff Note: TPC
Earnings: CVALF (TSXV:COV) INXSF (TSXV:INX) TATT LRGR PXHI FSI
New InfoArb: Not identified during the week that we found during some early morning Saturday research. This company’s (Sign in or join today to reveal) weak industry conditions may have bottomed and seeing strength from data center markets.
InfoArb Tear Sheets (comparing press releases to earnings calls): TSSI ASYS INSG CMT III SCEYF (TSX:SHLE) EXFY CSPI SUMXF (TSX:SXP) SRTS HGBL ACFN QRHC ATGN DCBO MPTI ULBI SGHC PSIX HROW ALCO VTSI STRR ATRO CDNL VELO PAYS QUIK NCMI ELMD SMTI HQI EML UPXI IZEA DCMDF (TSX:DCM)
Skull Sessions: Investor Insights with Dean Pernas of Pernas Research
Feature Highlight From Our Microcap Coverage Universe
We first started tracking Richardson Electronics, Ltd. (NASDAQ:RELL) (Power and Microwave Technologies, Canvys, and Green Energy Solutions) in earnest in late 2021, when we added it to one of our Model Portfolios after meeting CEO Edward Richardson at the LD Micro Conference.
In February 2022, we hosted a Fireside Chat with the CEO, where he outlined the various industries in which the company operated. In March 2022, we visited the facility ourselves (you can watch the clip here). The ultracapacitor business for wind turbines, increasing exposure to lab-grown diamond manufacturing, 5G order flow, and the operating leverage that kicked in above the $160 million revenue threshold all fit the profile of the kind of turnaround we had previously seen become a multibagger.
We added the stock to our Top 5 Favorites on February 3, 2022, at $12.26. It later ran to a high of $27.24, a gain of more than 120%, before we took it off the board at $21.62, a gain of about 76%. We ultimately removed it from all model portfolios by the end of 2022, partly due to recession risk and concerns about semiconductor exposure, and partly because the stock had simply met our near-term targets.
At the time, we still believed RELL had the makings of a multibagger over the long run, and we meant it. Now, a few years later, we’re watching to see if a new chapter is taking shape. One of the problems with RELL is that it has several divisions, but things got simpler when in 2025, they sold their Healthcare segment, which was losing a good chunk of money.
We’ve been watching RELL more closely lately as a series of recent announcements begins to reshape the story around the company, suggesting it is positioning itself around two major long-term themes: energy storage and AI-driven power infrastructure.
To briefly define it upfront, a battery energy storage system (BESS) stores electricity and releases it when needed, helping businesses and utilities reduce energy costs, improve grid reliability, and provide backup power during disruptions. As power demand continues rising, especially from AI data centers, manufacturing, and critical infrastructure, energy storage is becoming an increasingly important part of the broader energy landscape.
The biggest recent development was RELL’s partnership with China based Gotion to launch U.S.-manufactured BESS products. The partnership gives RELL exposure to a rapidly growing market as businesses, utilities, and infrastructure operators look for more reliable and efficient power solutions.
Just a week later, RELL announced another partnership, this time with NoMIS Power, focused on advanced silicon carbide (SiC) power technologies. Borrowing a passage from our special situation write-up on Cvd Equipment Corporation (NASDAQ:CVV):
“Silicon carbide (SiC) is a compound that handles higher voltages, higher temperatures, and switches electricity on and off faster than regular silicon, all while wasting less energy as heat. That makes it increasingly essential for power electronics in electric vehicles, industrial applications, and AI data centers
As you know, AI data centers consume enormous amounts of power. The equipment that converts raw electricity into usable power for servers relies increasingly on SiC semiconductors, because SiC runs more efficiently and generates less heat than traditional silicon.”
The NoMIS collaboration specifically targets AI data centers, renewable energy systems, and next-generation power infrastructure. As AI data centers continue driving massive electricity demand, efficient power conversion and reliability are becoming increasingly important, and SiC technology is emerging as a key part of that shift.
These partnerships also build on the company’s Illinois manufacturing expansion announced last year, which is aimed at supporting future energy storage and power infrastructure production.
The Gotion partnership gives RELL exposure to the growing BESS market, the NoMIS partnership adds a potential entry point into AI data center infrastructure, and the manufacturing expansion provides the foundation to support both. It is still early, and commercial adoption will ultimately determine how meaningful these opportunities become, but for a company that has long been looking for new growth drive drivers within its core segments, the positioning is becoming harder to ignore. This is especially true in the current market, where narratives are driving prices before the fundamentals or catalysts inflect.
Please keep in mind that Gotion and NoMIS are not in the same ballpark, and the NoMIS partnership does not appear to be a near-term opportunity.
Gotion is a publicly traded Chinese battery manufacturer founded in 2006, with Volkswagen holding a 24% stake and annual revenue approaching $6 billion. It ranks among the top ten battery manufacturers globally and derives more than 20% of its revenue from energy storage.
NoMIS Power is a very different profile. It does not appear to be generating substantial revenue and seems to operate primarily on Department of Energy (DOE) and National Science Foundation (NSF) grant funding. However, the underlying IP targets exactly the right market at the right time, as data centers push power infrastructure requirements to new extremes.
Founded in 2020 as a spinout from the University at Albany, the company is in its early stage, with five employees and less than $1 million in grant funding raised to date. NoMIS has received funding from both the DOE and the Advanced Research Projects Agency-Energy (ARPA-E) for its SiC power module development and was selected as one of eight Phase 1 winners in the DOE’s American-Made Silicon Carbide Packaging Prize.
Inside this Week’s Report:
- New Microcap Investing Cliff Note
- Earnings Reports Worth Monitoring
- InfoArb Alerts
- Latest InfoArb Tear Sheets
- Skull Sessions
- Coverage Universe Stats: Big Movers & Losers and New Highs & Lows
Microcap Investing Cliff Note
Recall that we are now publishing at least one idea a month from my Microcap Investing Cliff Note Substack, especially if the stock is also being covered at Geoinvesting or if we’re developing a high conviction on the company. We did this to bring you more idea flow.
Tutor Perini Corporation (NYSE:TPC) (civil construction contractor)
This week includes a contributor Cliff Note on TPC from the Microcap Cliff Note Investing Substack, published as a follow-up to its recent addition to our Data Center Tracker Screen. The note covers TPC’s infrastructure backlog, valuation setup, and the potential for data center exposure to become a more meaningful part of the story after management introduced data center work as an emerging specialty during the Q1 2026 earnings call.
We are crazy-surprised that the stock, selling at a P/E of 14.3x, is not
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