The focus of today’s post revolves around a recession resistant company, whose customers include 25 Fortune/Global 500 enterprises, looking to gain steam from one of the most important and critical components of the United States infrastructure – the power grid.
The overall crux of this company’s services is the role it plays in power grid efficiency by allowing companies to monitor their operations and address issues with less staff.
The reason we like this stock is because of 2 new growth initiatives that open up its addressable market by several magnitudes of their current target market – true information arbitrage that is not widely understood or known by investors.
In an August live management briefing event with the company, hosted exclusively on GeoInvesting, the CEO elaborated on the details of these large scale projects, one in which they are the only player in town once they launch it. It’s geared towards making gas company operations run more efficiently through mission critical services.
For its second initiative, the company entered into a partnership with a company to allow for the strategic usage of electricity where it’s needed most.
***Please be aware that we did not take compensation or payment from this company to participate in this event.***
Per the CEO in the briefing, these initiatives are slated to start contributing to revenue in 2024.
Further making the stock more appealing to us is that competitive pressures that were present in 2022 and interrupted the company’s history of consistent growth, have abated. This environment had caused the stock to underperform.
So, in a nutshell, we have a scenario where it looks like new growth initiatives are about to be catalyzed at the same time as competitive pressures have been alleviated, which will also allow the company to resume growth in its legacy businesses.
You could say the stock is a bit of a sleeper… well, maybe as far as investors buying the stock goes, but the CEO has been aggressively buying stock at depressed prices.
Price under $1.00; Revenue under $15 million.
Internet of Things (IoT); Wireless Remote Monitoring.
Two new growth initiatives (additional recurring revenue); Insider buying; Investor awareness of growth initiatives; Building a moat; Competitive pressure abatement.
The company resides in our RunToOne Model Portfolio, a portfolio which is specifically curated to identify stocks trading below $1.00 that could have the potential to increase to a price well over $1.00 if business objectives are met.
Again, this is a classic case of information arbitrage that management teams often present in the live interviews we conduct with them. In this case, we discovered that a ramp up in revenue growth is right around the corner.. These live Interviews are also archived at our pro portal.
In all, the company’s new growth strategies have the potential to disrupt traditional energy sector practices, as it expands its market reach as an innovative player in its industry with new and growing streams of annual recurring revenue.
Along with this idea, you will get all the research we’ve done on the company to date, which includes an archived copy of the Management Briefing containing the arbitrage we’ve identified.
Geoinvesting is a research platform founded in 2007 to publish premium research on microcap stocks that meet a certain set of criteria that we have proven leads to superior returns. Empirical evidence proves that investing in microcap stocks beats the returns of larger cap stocks by 8.24% per year. Even Warren Buffett and Peter Lynch have said that if they were to invest in one type of stock, it would be microcaps. We provide our subscribers with an even bigger edge by combining the microcap investing edge with our own tested strategies to find the best stocks that are undervalued relative to their growth prospects or other positive catalysts. Our approach is based on qualitative and quantitative factors that finds stocks a point where they are going through significant changes that the market has yet to identify. This opportunity is only available in the Microcap world, an area ignored by institutions, Wall Street and the financial media.
Over the last 15 years, we have also built a expert Microcap investor network who contribute ideas to our subscriber base.
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