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[Make sure not to miss our new high conviction idea later in this post]
I’ve been speaking breathlessly about Information Arbitrage (InfoArb) in the world of microcaps for years, and quite honestly, won’t stop stressing how important it is in weeding out potentially exceptional investments. In my most recent appearance in a podcast called Riches in the Niches, I made no exception.
After all, with every chance I get to convey my years of experience in rooting out the cream of the microcap crop, I get to impart a few nuggets of knowledge in the many ways that InfoArb can help the everyday investor. In the episode, aptly named “Information Arbitrage in Microcap Equities” (listen here), I spoke with the host, Richard Sosa, who admitted that this was the very first time he heard of Information Arbitrage, an incredible research process tool to find multibaggers in the microcap universe where hidden public information can go unnoticed for long periods of time.
To me, it was a bit of a bonus to elaborate on the subject because I could see the lights turn on, knowing that I drove home an important concept that he could spread to his listeners who yearn for more ways to perform research and find ideas in a truly differentiated way.
Ultimately, because of the strategy I use to look for information where others are not, I arrive at high conviction ideas that land on Model Portfolios at GeoInvesting’s pro portal.
Speaking of high conviction picks, back on July 9, 2021 we reiterated to members that we added to our position in a stock included in our Favorites Model Portfolios. In our ensuing Weekly Wrap Up that week, we made it clear that the stock was not at all where we thought it should have been trading after falling to a surprising level that gave us a chance to pounce on the pullback.
Since that alert, the stock has climbed 70.58%, and is actually up 190% since its inclusion in our Long Disclosure list. It’s one of a trio of stocks to which we just assigned multibagger potential, even after its rise. (Yes, that means we don’t think the run is over by any stretch.)
Ironically, after the release of the 3 reports, the government’s bilateral decision to release funds for the United States’ infrastructure only strengthens our conviction.
Also part of that trio is a stock that we feel is at least as timely, in terms of the speed that we believe it will reach multibagger status. It’s in the same industry, and frankly, I’m going to once again walk the talk and say that if you held a gun in my head right now requiring me to share an idea with my mom, it would be this pick, as described in our premium section below.
An important note: we believe the catalyst for the beginning of the stock’s ascent will be when they report earnings this week.
~Maj Soueidan, Co-founder GeoInvesting
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Recommended Reading From Around The Web
While we are not too savvy when it comes to biotech investing, we still find it interesting. An article here on The Tycoonist observes a trend in “Baby Making”, making it hard to deny that there is investment opportunity in several of the themes associated with that subject matter.
“Thanks to TikTok (because where else?), I recently learned that there’s such a thing as a breeding fetish, which WebMD helpfully defines as “being strongly attracted to the idea of impregnation.” Learn something new everyday, right?
No idea how many people are actually into this sorta thing, but what we do know is that Wall Street is definitely turned on by the idea.
Assisted reproductive technology (ART), i.e. fertility treatment, is projected to grow from a $21B industry in 2019 to more than $50B by 2027. In 2018, PitchBook reported that private equity investors injected nearly $700M into the fertility industry.”
Baby-making is big business… and here’s why it’s only going to get bigger.
“Women in their 20s are increasingly hedging their bets through oocyte cryopreservation, (OCP), otherwise known as egg freezing, in a process that can cost up to $20,000 per cycle. Even single men are freezing their baby batter during prime years on the off-chance that they develop issues later in life.”
We couldn’t help but notice that there was a passage in the article that hits close to a company that we follow closely, and that operates in a related field. We actually spoke to the CEO (See Featured Clips section below) where he explained to us everything you ever need to know about cellular processing and cryogenic cellular storage with a focus on the collection and preservation of umbilical cord blood stem cells for family use. Phew!
A tale of two decades. pic.twitter.com/jvmzAlwIsH
— ValueStockGeek (@ValueStockGeek) November 6, 2021
The longer you take, the better. For perspective comes with time.
— Augury (@AuguryInvesting) November 4, 2021
Find a tribe of people above your level at what you want to do, listen, learn, and put your reps in.
You will develop the habits and the pattern recognition of the tribe.
This is the most effective way to accelerate your learning & earning curve.
— Nighthawk (@StrykerCapital) October 10, 2021
Clip from a CEO in the Stem Cell Industry
Below is a soundbite from the CEO of a company that is hitting the stem cell industry hard with innovative techniques to preserve stem cells that are obtained from umbilical cords for potential use in the treatment of disorders. We have a lot more on the company at our pro portal, including our full interviews.
Educational PodClip on Interviewing Management
If you’ve ever considered reaching out to the management of a microcap company, we’ve got a PodClip that covers several things that you should try to get out of the conversation, like handling adversity, employing marketing strategies, new products and services revenue opportunities from existing customers, and understanding competitors. Take a listen below, and read the full transcript here.
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