Last week I talked about how we view investing in COVID-19 themed stocks, although it’s not a huge part of our strategy. We basically broke down the COVID-19 investment choices into three buckets.
I referenced LAKE and APT as companies that are directly serving COVID-19 market segments.
One of our GeoInvesting members, Mark Gomes, reached out to me to delve into this subject and broke down how he views the pandemic and how he is allocating money in reaction to it. Stay tuned for a podcast where we discuss this topic.
On a related note, I said I would also perform a portfolio review of SOME companies and their sensitivity to COVID-19. On a positive note, we made the decision to go over ALL the stocks in our portfolios along with associated disclosures, hence it’s taking a little longer than expected. So, thanks for your patience.
The discussion points within the tabulation will entail the companies’ roles pertaining to COVID-19, how strongly we believe the opportunities are for them, and if these opportunities are a long term or short term growth drivers. We’re aiming to complete this task by the end of the week.
Finally, to increase transparency to premium members on how we develop our conviction in the stocks we may end up buying, we will be ramping up efforts to include you in our live interviews with company executives. Furthermore, many of you asked us how we conduct our interview process. We’re hoping that these types of live webcasts will help to sharpen your own interview process. In the ‘Coming Soon’ section below, we address this subject since Origin Agritech Limited (NASDAQ:SEED) and Viq Solutions Inc (OOTC:VQSLF) have agreed to present to us, hopefully this week.
~ Maj Soueidan
Co-founder, GeoInvesting
GeoInvesting Weekly Premium Email and Call To Action Updates (Aug 31 – Sept 28)
Weekly Wrap Up Summary…
Retail Company Back on Radar – Compelling Case For Stock Price Appreciation
How many times do you find a company growing revenue and earnings, but selling near cash?! We currently don’t own this new retail stock that entered our screens, but the stock is firmly on our radar because of recent strong results and insider buys.
The company first came on our radar in February 2012 when the stock was trading at ~$0.06 and mentioned it could offer an unusual special situation play. Please note that the company affected a 1 for 20 reverse split on. So the $0.06 should be adjusted to $1.20 for comparable purposes. You can see that note here.
We had some concerns about the company’s capital structure and business lumpiness that we wanted to iron out. Unfortunately, multiple attempts to interview management were unsuccessful. Since our first look, the company has cleaned up its capital structure, made some acquisitions, is reporting consistently strong financials and has a strong cash position. To our dismay, we did not execute any meaningful trade or investment on the stock.
We revisited the story in May 2019 and wrote a brief note after the company reported strong Q1 2019 results. We mentioned that the company is as boring as it gets with an average daily volume of less than 1000 shares traded, and that it will likely always have a muted P/E due to its conglomerate-like structure. However, value can not be ignored forever.
The company has 3 main operating units:
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