For those of you reading this week’s wrap-up who are not Geoinvesting  premium members and not aware of our Buy on Pullback Model portfolios, we are constantly on the search for stock prices of companies we like that fall or have muted reactions to good news.  These types of overreactions or under reactions are often the result of market gyrations or the inability of investors to digest the full scope of a particular event.  In early 2016 we launched “Buy on Pullback” Model Portfolio 1.0 in order to take advantage of these mispricing scenarios.

We just closed out all the positions in our Buy on Pullback Model Portfolio 8.0 created earlier this year which posted an average return of 85.3% in 5 months. On October 30, 2020 we opened Buy on Pullback Model Portfolio 9.0 to take advantage of falling stock prices during a market selloff.  The portfolio is off to a great start:

  •  4 out of 5 stocks in the portfolio are up
  • There is a cumulative return of 51.22% across 4 stocks
  • The average return is 10.24%

The early returns are being buoyed by the performance of Ocean Bio-chem, Inc. (NASDAQ:OBCI), up 23.25%.

On June 19, 2020 we initially disclosed a long position in Ocean Bio-chem, Inc. (NASDAQ:OBCI) at $7.50 as we felt the company would experience short term and long term bump in sales as their products become more attractive in the current and post COVID-19 environment. 

OBCI’s products include:

  • Boating and RV products (benefitting from surge in demand for boats and RVs during COVID-19)
  • Performacide, a commercial sanitization product line (benefitting from combating the spread of  COVID-19)

The stock had a runup to $22.55 on August 3rd, 2020 before pulling back sharply.

Then, we added the stock to the Buy on Pullback Model Portfolio 9.0 on Monday, November 9, 2020 after the stock fell ~20% to $12.50 in one day. We surmised that the big one-day pullback  was a result of negative investor sentiment that the demand for the company’s products would be dampened by the imminent arrival of Pfizer’s “90% effective” COVID-19 vaccine. We believe the negative investor sentiment was way off the mark.

Instead, we think that OBCI’s product lines will remain strong and maybe get stronger after COVID-19 passes, as stated in last Monday’s tweet:

Tweet OBCI 11-9-2020

Following a strong 2020 Q2 financial outing in July, OBCI issued fantastic 3rd quarter numbers during the day last Friday:

Tweet OBCI Q3

In reaction to Q3 numbers, the stock climbed ~13% on Friday to close at $15.24. We anticipate a related press release will be issued tomorrow morning and hope it will shed more light into some of the bullish assumptions we are making.

GeoInvesting Weekly Premium Email and Call To Action Updates (Nov 9 – Nov 13)

Weekly Wrap Up Summary…

On Wednesday, November 11, 2020, we added a new stock to our Buy on Pullback Model Portfolio 9.0. Similar to our OBCI addition, we believe the recent COVID-19 vaccine-related pullback is completely unwarranted and that the momentum created during pandemic created a new level that sill stick around. Furthermore, the stock experienced record rev before the pullback.

Hop into a GeoInvesting Trial to get the latest updates on our Pullback Portfolio #9.

Don’t Have A Premium Account Yet?

Calls To Action

Calls to Actions include alerts on the stocks our team is buying and selling. You can choose to follow these moves to build your own portfolios or buy stocks at your convenience. About 1 CTA per week, so we don’t flood you with too much to think about.

Model Portfolios

Model portfolios focus on specific proven strategies to outperform the market. These custom portfolios are perfect for every level of experience and vary in strategy to appeal to different types of investors.

Premium Research

GeoInvesting provides institutional-grade research that’s affordable to the everyday investor. Unlike Wall Street investment banks, we don’t get paid by companies to talk about them. The GeoTeam’s research has powered over 11 years of investing success.

Education

We’re on a constant, daily search to improve our research methods and learn more about all things related to the stock market. Improve your stock picking skills and portfolio management from learning how we find winning management teams and avoid risky stocks.
Get Your Free Trial

About the Author:

GeoInvesting is an investment research boutique in Skippack, Pennsylvania. The GeoTeam's focus is on providing high quality stock market research tools and in-depth due diligence on U.S. small and micro-cap equities and on Chinese companies trading in China and the U.S. We research long and short ideas, and are the leading research boutique charged with helping investors navigate the treacherous China equity universe with a paramount goal to protect portfolios from fraud. Numerous notable media outlets have credited GEO We have been credited with exposing numerous fraudulent companies in China. We have built a reputation in the US small and micro-cap space as champions of transparency. On the long side, we have also developed a knack for picking stocks that have the propensity to get acquired at attractive premiums to their current prices. Our team is currently comprised of 13 analysts and traders, and 7 on-the-ground researchers in Mainland China.

Leave A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.