This week, much of our attention was focused on the MS Microcaps Summer Virtual Conference. The three-day event brought together Canadian and U.S. public companies, microcap investors and several discussions around areas we are actively researching. Later in this post, you’ll be able to click on the link to the videos and investor pitches you want to watch. The investor pitch lineup was: Gurkirat Singh, Aurelion Research, Multibagger Mike, Ben Brostoff and Lee Roach. I also threw in my own pitch at the end of the event. Overall, I was extremely impressed with the quality of the pitches, as well as the quality of the stocks that were pitched. I think a portfolio of these stocks will deliver significant alpha.

ICYMI: Reports on two defense stocks we added to our Model Portfolio Universe – one benefiting from rising missile production, and the other experiencing growth catalysts for the first time in a while. The latter’s real estate value on the balance sheet is materially undervalued by a factor of ~4x.

In other news, early research indicates that new products have given this company a “moatish” investment angle. We are starting to get increasingly excited. The company will likely be added to our Model Portfolio Universe.

A US policy shock, a long-running national-security concern about drug supply, finally crystallized into tariffs, is pushing pharmaceutical manufacturing back onto American soil. The result is a domestic capital-expenditure wave estimated at roughly $370–480 billion of announced commitments through 2030. The durable money in this theme does not sit with the drugmakers, for whom reshoring is a cost, but with the “picks and shovels”: the engineering, process-equipment, and consumables suppliers who design, build, and outfit the new plants. Also this week, we sat down again with $FRTU President Yoel Damas to address Geoinvesting subscriber questions about funding capacity, automation, the audit process, and the company’s capital structure. The conversation focused on whether the company can convert growing demand without taking on unfavorable financing.

We launched a new Battery Energy Storage Systems (BESS) screen with its first three additions. The screen highlights companies positioned to benefit from growing demand for grid-scale energy storage and related infrastructure. Additional rationale and supporting commentary will be provided during the August Open Forum. 

Battery Energy Storage Systems are becoming an increasingly important part of the power grid. They store electricity when supply is abundant or prices are low, then release it when demand rises, renewable generation falls, or the grid needs additional support. As electricity demand increases from data centers, electrification, and domestic manufacturing, storage can help utilities manage volatility without relying entirely on new generation capacity.