GeoInvesting October 2017 Highlights
What We’re Buying
Money-making Moves that the GeoTeam Conveys to its Premium Members
Microcaps Reacting Well to Earnings: A name that we have covered in the past and followed for years recently again became intriguing to us and just reported a great earnings report during November, for its Q2 2018 results. We are long shares of this company that delivers its services through its software as a service (“SaaS”) model. Revenue increased about 10% and adjusted earnings beat analyst expectations, rising more than 50% from the year prior. This company also raised its 2018 guidance. To access this report and find out why we think the stock has over 40% upside, please consider upgrading to GeoInvesting premium membership.
Learn With Us
Education to help you become a better investor
By Maj Soueidan
Peter Lynch might be an investing god, but like with all religions there is great misinterpretation of what he meant by what he said, and the common understandings are often plain wrong. We want to explore probably the greatest of these (Buy What You Know). Yet first a caveat: our team at GeoInvesting loves Peter Lynch, but we have a problem with his statement that you should avoid smaller companies until they are profitable — we believe it is hypocritical of Lynch to make that statement while his spectacular returns included smaller companies in the portfolio that can experience volatile earnings that dip negative at times.
Read Maj’s full write-up on buying small companies here.
Studs & Duds
The reality of investing – Our best and worst picks
STUD: ZYNEX INC (OTCQB:ZYXI)
ZYXI is a great example of how sometimes we can quickly benefit from information arbitrage. Taking into account the company’s impressive earnings report back in August of this year, we decided to hold our position, which had nearly tripled from the $0.40 price we initially acquired shares at. The stock currently trades for $2.75. See our full case study here.
DUD: Tor Minerals (NASDAQ:TORM)
Despite TORM’s underperformance in the near term, we believe it still has potential to be a multi-bagger. The company’s most recent earnings were disappointing. Despite some uncertainty, we still believe the company can succeed. TORM was added to our Multi-Bagger Premium Portfolio on 5/9/17 and returned 8.4% at first. Unfortunately, customer concentration risk was to blame for the stock trading lower this past quarter, an issue management is addressing. Our Multi-Bagger Premium Portfolio is for investors with a long term focus who are willing to hold through volatility.
A Note From Maj Soueidan
This month’s message from Geo Co-founder Maj Soueidan
Criticism of the penny stock world continues now at a fever pitch, and rightfully so. Most of the stocks we buy are not penny stocks, but because some of the microcaps that we cover have share prices that are under $1, sometimes our picks are mistakenly written off as “penny stocks” that should be avoided. But rest assured, GeoInvesting has the expertise to differentiate between “pump and dump” penny stocks and microcap names with credible businesses and potential for future growth that just happen to trade at low share prices. In fact, we have outed 17 pump and dumps, which you can see more about here. This is why we have been able to stock our “Run to One” Premium Portfolio with stocks that were under $1, but have since moved significantly higher and sport an average current return of 146%. As always, if you have any questions, feel free to e-mail me directly at email@example.com.
~ Maj Soueidan, GeoInvesting Founder
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