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