This week, we were focused on video content.
Portfolio Protection Discussion
First, I hosted a think tank of individuals on the podcast I host, “Avoiding the Crowd,” to delve into a discussion on Purple Innovation, Inc. (NASDAQ:PRPL). This is published at Robert Kraft’s Stock News Now (SNN) Network channel and can be reviewed here on GeoInvesting along with a few slides that detail some key stats and risks associated with an investment in PRPL. PRPL’s stock has been on a tear, increasing 555% from its March 2020 low of $4.42 to close Friday at $28.96. The discussion is the first installment of the podcast’s “Portfolio Protect” series where I will break down special risks associated with certain companies. .
We are neither long nor short PRPL and actually debate the bull vs. bear thesis with an open mind as opposed to the “every risk factor is a fraud” mantra that a crowded short seller universe tries to employ. We actually conclude that we could see PRPL being a long-term success, but only if management addresses some key corporate governance issues related to intellectual property and restrictions that certain licensing agreements place on PRPL’s ability to compete. This would allow the company to capture additional revenue and compete in certain global markets, like Europe.
We hope you find this approach refreshing and that it will give you clues on how to structure your research process via multiple angles.
Please see the video here.
I also invited GeoInvesting member Mark Gomes to be a video guest to discuss the strategies he is using to invest in companies capitalizing on opportunities created by COVID-19. Recall that the introduction to our Weekly Wrap up email on September 20, 2020 centered around how to approach investing in COVID-19 themed stocks as the pandemic becomes more under control. One stock that we discussed in that introduction was Alpha Pro Tech, Ltd. (NYSE:APT), a manufacturer of PPE products, including N95 masks. We had expressed some concern over whether APT’s PPE product lines could have staying power past the pandemic. The introduction caught Mark’s attention because he is bullish on APT.
We then followed up with a COVID-19 risk assessment on 38 stocks in our coverage universe.
So I thought it would be a good idea to get Mark’s perspective on the subject which led us discuss many others stocks like Pacific Ethanol, Inc. (NASDAQ:PEIX), Pharmchem Inc (OOTC:PCHM), Smith Micro Software, Inc. (NASDAQ:SMSI), and Summer Infant, Inc. (NASDAQ:SUMR)
I really enjoyed the conversation and the color Mark provided on the PPE theme, one that he’s been taking a deep dive into for several months.
Please see the discussion here.
~Maj Soueidan. Co-founder GeoInvesting
P.S. – We also finally published our article on Agent Information Software Inc (OOTC:AIFS), which you can read here. AIFS Sells its software platform to libraries to help address back office and book lending logistic challenges.
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