GEO Investing

We are constantly on the search for stocks that fall in the face good news.   These types of overreactions are often the result of market gyrations or failure by investors to digest the full scope of a particular news event. For that reason, in the beginning of 2016, we introduced our “buy on pullback” mock portfolio product to you, so that you can see what stocks we were buying to take advantage of these mispricing scenarios.

Mock Portfolio 1.0

We constructed mock 1.0 on January 19 2016 in the midst of the market correction. Quality microcap stocks were getting hammered, pushing them to prices that were attractive to us. This mock portfolio returned around 36% at its peak within 3 months.  By the end of May 2016 when we closed the portfolio it had returned 16.7%.

Mock Portfolio 2.0

By the time Q1 2016 earnings season came to an end over 1000 micro caps reported their financials. Thus, riding the success of Mock 1.0, we created a wish list of stocks that declined or had muted reactions to positive earnings results.

We initiated Mock 2.0 with the following four stocks on May 31, 2016…

*ORBK was added on June 30, 2016 and closed on July 28, 2016. Current return is closing prices from July 27, 2016.

Now that companies are reporting their second quarter earnings it’s time to start making that wish list for stocks you want to buy if the market fails to reward good news. We will certainly let you know which stocks we will be  buying.

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