A respected GeoInvesting subscriber and research contributor just came to us with a new idea and pitched it exclusively to us this past week. This is on the heels of one his long time picks, Aehr Test Systems (NASDAQ:AEHR), at a 166% gain year-to-date, so we were all ears.
His new pick provides remote software solutions to the energy industry to help them stay up-to-date with the maintenance of infrastructure in a timely fashion to prevent costly disaster events or production downtime. He believes the stock qualifies for our RunToOne Model Portfolio (R21) because it is nearing a major inflection point of growth and undervalued by as much as 300%.
Here are some key points he shared with GeoInvesting Subscribers earlier this week:
- He believes the stock is under investors’ radars as they may have not identified a new key bullish catalyst…yet.
- The company provides a service that competitors are unable to replicate, creating a moat around their business model.
- The value of the company’s contracts grows year over year, making revenue predictable.
- It would take $50 million, he posits, to replicate the technology powering the company’s software.
- And in fact, the software has AI capabilities due to a large dataset aggregated over many years.
- He estimates the company can grow at a rate of 50% per year for several years.
- The stock price is well under $1.00, but he thinks the stock should rise to over $1.00 within the year.
A Free Trial premium subscription will unlock the entire pitch, the symbol related to this pitch and gives you immediate access to all of our premium services.
About The RunToOne Model Portfolio (R21)
As you may know, investing in microcaps presents a unique overlooked opportunity because the universe is a less explored avenue for so many investors. This holds more true for stocks trading under $1.00.
Our R21 Model Portfolio is made up of stocks that are trading under $1.00 that meet a set of quality criteria. We believe they have a strong chance to go over $1.00 in the future.
Since its inception, of the 40 stocks that entered our RunToOne Model Portfolio, 26 remain on the list as actively tracked. The average return for the 15 stocks that we removed from the portfolio was 289% at the time we closed them out.
About GeoInvesting
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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