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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting the most important developments across our 1,500+ microcap coverage universe built since 2009, including high-impact earnings reports, information arbitrage discoveries, contract announcements, and model portfolio updates. We also highlight insights from our investor and CEO interviews (Skull Sessions) and other events.
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Stocks discussed at GeoInvesting last week:
InfoArb Alert [Case Study]: EFOI data center contract alert yields one day return opportunity of 27% To 82%
Earnings: KTEL FSI PPIH CAWW MOJO, Including a Fave multi-bagger sleeper
Updates: TGEN, NNBR
Spaces Event: SIF, PPIH
New Idea Research Pipeline: As stock at an inflection point
InfoArb Tear Sheets: XELB FTGFF (TSX:FTG) RELL RTMNF (TSXV:RET) MAMA CREX IFABF (TSX:IFA) MIND IIIN ADFJF (TSX:DRX) HOFT LAKE
***In case you missed last week’s Wrap-up, it’s available here***
InfoArb Case Study: Feature Highlight From Our Microcap Coverage Universe
Friday’s near intraday multibagger move in Energy Focus, Inc. (NASDAQ:EFOI) (lighting solutions) (from its open price) continues to convince me that the data center trend is the new industrial revolution or gold rush.
EFOI is a struggling commercial lighting solutions company that got hit hard after COVID. It was once a legitimate company that we had actually followed at GeoInvesting in the past. We had essentially stopped actively covering it because a recovery to its earlier days of glory looked pretty unlikely.
The company hadn’t issued a press release since 2022, and then suddenly, last Friday at 9:00 a.m., it dropped a release tied to hyperscaler data center contracts.
After doing some quick research, which was necessary given the company’s distressed situation, we issued a premium GeoInvesting alert at 9:30 a.m., with the stock trading near $5.40. Shares closed at $6.84 after touching $9.84. The stock had been trading in the mid-$4 range for most of the premarket.
Here’s more on how this all played out, from idea discovery to the premium tweet alert:
One of my analysts received a real-time alert on this contract using the press release research tool our team built. He had created a real-time “data center” filter:
I immediately went to the SEC filings (now available in the tool) to understand if they’ve been talking about entering the data center “Arena.” And there it was:
Also, the value of the data center contracts were nearly double the revenue the company did in 2025.
So we sent the premium alert for those investors that wanted to dig in:
Ideally, I wish I would’ve been ahead of this news when they filed their 10K in March, but to be honest, EFOI was nowhere in my research funnel priority list. Now, I will be looking at EFOI, especially since it’s located in Ohio where hyperscalers are setting up shop. By the way, as you might know, Perma-pipe International Holdin (NASDAQ:PPIH) just moved into its data center services facility, located in Ohio.
There’s four lessons to ponder from this case study.
- Don’t forget to check in on past stocks that you used to like but don’t anymore.
- Make sure to read those SEC filings.
- Start asking AI to look at some of the stocks you own or have owned in the past to see if there’s anything new in the trend world that could spark investor interest.
- And you knew this was coming… start using the press release tool we built. I’m not just saying that because it’s our product and something we’ll likely market more heavily once it’s no longer free. It is what it is. I’m highly invested in its success. But honestly, whether it was a product or not, I built it for myself after 30+ years of doing stock research as a full-time investor. It won’t be for everyone, but I think some of you will find real alpha using it. Stay tuned for more case studies on how it’s helping me.
I keep telling myself that I want to move away from investing in stocks tied to the data center theme, but I keep coming back to it because that’s where the earnings, contracts, business development deals, and future multibagger setups keep taking me.
At the same time, it’s still important to validate earnings quality, check management claims, and monitor capital structure risks that could cap upside. The challenge is wading through all the news to separate the true opportunities from the BS.
Something I like about investing in this theme is that traditional value investors will not want to invest in it because it’s seen as crowd-driven, sexy, or hot…things that many value investors stay away from. But I’ve always been a proponent of finding value and growth at the same time and investing ahead of where others see opportunity. I like to stay very flexible in my approach to investing.
At times, I’m looking at a deep value situation. At other times I’ll be looking at growth and sometimes I’m looking at growth plus value…The list goes on and on.
It’s interesting how the data center theme is evolving and showing up across very different types of names. You’ve got all these legitimate companies executing into the theme and repositioning toward it. Over and over again, we’re seeing companies that looked all but dead, finding ways to capitalize on what they do to target the data center market, in ways you wouldn’t expect.
Now, our team is starting to really hone in on trying to predict where that might happen. As you know, we’ve already talked about how infrastructure companies (construction & engineering) have found ways to wiggle into the data center market.
Last week, we highlighted the returns of some of these companies in our infrastructure screen, like:
I actually think at least 50% of the stocks on the screen right now have entered the data center market.
Just last week, we talked about an infrastructure company, Cardinal Infrastructure Group I (NASDAQ:CDNL), getting its first data center contract. The stock is now up 17.20% since we added it to the screen that day.
But now we’re starting to see more companies outside of the infrastructure theme target the data center market.
I just showed you that with EFOI. Of course, we all know how Tecogen Inc. (NYSE:TGEN) is trying to transition its power generation and cooling technologies into the data center market. Even though the stock is well off its high of $12.07, we were able to start framing this narrative for GeoInvesting when the stock was under a dollar, after seeing significant insider buying and commentary in earnings call transcripts.
Then there’s Rf Industries, Ltd. (NASDAQ:RFIL), a boring wire and cable equipment company, that resurrected a previously acquired business that had been sitting idle. In layman’s terms, this division makes a smart fan that sits on top of HVAC equipment to provide additional cooling.
We talked about it when the stock was trading around $3.97. This week, it hit a high of $14.84. We didn’t add it to any of our model portfolios, but we did include it on our data center screen for those who wanted to dig in further. Here’s the first time I talked about it on the 5/7/2025 Open Forum. We also went into more depth about the theme surrounding the stock in our 8/13/2025 Open Forum, in this clip.
Now, we’re seeing legit residential construction companies like Comstock Holding Companies, Inc (NASDAQ:CHCI) move into the data center market. On March 13, they announced the launch of a data center platform. The stock is now $18, but didn’t really start moving until March 16.
Ceco Environmental Corp. (NASDAQ:CECO) has been a monster multibagger performer, partly due to incorporating data center emissions control solutions into its environmental consulting services. That’s why we continue to watch to see if Fuel Tech, Inc. (NASDAQ:FTEK) can win its first emissions control data center contract.
Finally, we think the data storage solutions theme is going to be a great theme to invest in, which is why we’re watching anotehr stock closely…
Inside this Week’s Report:
- New Research Pipeline Idea
- Earnings Reports Worth Monitoring
- Business & Operational Developments
- X Spaces Event with @Wolf_Financial
- Latest InfoArb Tear Sheets
- Coverage Universe Stats: Big Movers & Losers and New Highs & Lows
New Research Pipeline Idea…
In other news, an emissions catalyst company finally showed a bit of progress with a return to profitability, reporting $0.01 in EPS vs. a loss of $0.02 last year, although revenue growth is still light. They’re relying on onsite power and emissions solutions tied to data center infrastructure and energy demand. It’s still early, but at least the financials are starting to move in the right direction. It’s one of my favorite sleeper long-term MultiBagger plays.
Alongside the results, the company has been more active outlining how its catalyst technology fits into data center infrastructure. A recent post walked through how diesel and natural gas backup generators are a core part of power reliability for AI-driven facilities, and how emissions control systems are required to meet increasingly strict regulatory standards.
The company’s focus is on engineering the catalyst components used inside those systems, including solutions for reducing NOx (nitrogen oxides), a group of harmful gases produced when fuel is burned., particulate matter, and other emissions tied to continuous and backup power generation. The discussion also highlighted how rising data center electricity demand is putting more pressure on system design, particularly around balancing uptime, efficiency, and compliance.
The messaging lines up with what we’ve been seeing around onsite power demand tied to data center growth, and it’s worth keeping an eye on how that translates into more consistent financial performance.
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