Giving GeoInvesting’s Contributors A Shout Out As We Continue Our Model Portfolio Review

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Two weeks ago, we commenced a comprehensive review/cleanup of GeoInvesting’s Model Portfolios, originally launched in 2016.  We began this task by first looking at the Select Longs Model Portfolio and our Reasons for Tracking (RFT) stocks.

Last week, we continued that endeavor by revisiting and reorganizing our RunToOne Model Portfolio.  

Today, we are tackling our Contributor Returns Model Portfolio, one that highlights stocks from  GeoInvesting’s Contributors’ pitches, research, articles and ideas.

An interesting stat we noticed is that 78 of the 81 stocks had risen at some point after the pitch, for a hit rate of 96.3%.

However, some even more startling stats are that 70 were actually up at least 20%, 58 at least 50%, and 8 were at least 11 baggers (1,000%).

Peter lynch once said:

 “Maybe you’re right 5 or 6 times out of 10. But if your winners go up 4- or 10- or 20-fold, it makes up for the ones where you lost 50%, 75%, or 100%.” 

So, I think papa Peter would be proud. 

Now that the carnage of 2022 has passed, it’s a great time to take a look at our contributor pitches to see which ones we want to monitor, heading into the next bull market, especially since many have pulled back hard. These impressive stats are also motivating to seek out more pitches from our investor network.

The following are the symbols we are tracking, but things can obviously change moving forward. The symbols in yellow are the stocks we are particularly interested in.

What follows are some highlights of video pitches and/or written articles of all the above companies, with links to the original material:

7/13/2023 Mark Gomes Stock Pitch on OneSoft Solutions Inc. (OTC:OSSIF)

Mark Gomes, CEO of Pipeline Data LLC pitched the stock Onesoft Solutions Inc (OOTC:OSSIF) during our July Live Open Forum.

OSSIF is a company specializing in software solutions for specific markets, utilizing Microsoft’s Cloud technologies, focused on acquiring and developing next-generation software businesses that offer specialized cloud-based solutions to meet customer requirements. 

The company’s  main focus is selling monitoring solutions to the oil and gas pipe infrastructure.

• Most Recent Financial Report (March 2023) 

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Quim Abril Pitches CreditRiskMonitor.com, Inc. (CRMZ) (5/16/2023)

On May 16, 2023, Quim Abril, of Draco Global, pitched Creditriskmonitor.Com Inc (OOTC:CRMZ)

CRMZ offers interactive business-to-business software-as-a-service subscription products worldwide. Their services cater to corporate credit and procurement professionals. They publish comprehensive credit reports for public and private companies, including financial statement analysis, ratio analysis, trend reports, peer comparisons, FRISK and PAYCE scores, and Altman Z default scores. 

Will the higher incidences of restructuring, and risk of Chapter 11 bankruptcies in the new market environment benefit the company?

• Most Recent Financial Report (March 2023) 

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Semco Capital’s Scott Weis Pitches BK Technologies Corporation (BKTI)

In our April 19, 2023 Live Open Forum, Scott Weis of Semco Capital agreed at the last minute to present one of his bullish latest ideas to us and our premium audience, Bk Technologies Corporation (NYSE:BKTI).

BKTI is a manufacturer of wireless communication products. Their product range includes two-way land mobile radios, handheld radios, as well as radios for vehicles, divided into categories such as business and industrial analog, portables, mobiles, base stations, and repeaters. 

We want to track how successful the company’s rollout of its new generation of products will be.

• Link to Most Recent Financial Report (March 2023)

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Vittorio Bertolini, Co-founder of Coinfolio Capital, Bullish on Marine Products Corporation (MPX)

On January 27, 2023, Maj Soueidan interviewed Vittorio Bertolini, investor and co-founder of Coinfolio Capital, about his recently published Seeking Alpha article on Marine Products Corporation (NYSE:MPX). a manufacturer of luxury sport and fishing boats. Vittorio further elaborates on his bullish MPX thesis in the discussion.

MPX is a designer and manufacturer of recreational fiberglass powerboats. Their product lineup includes various boats for different markets, such as sport boats, deck boats, cruisers, sport yachts, and sport fishing boats. They offer a range of models under different brand names, including Chaparral sterndrive and inboard-powered pleasure boats, such as H2O Sport and Fish and Ski boats

We are reaching out to Bertolini for an update on how he feels about the company.

• Link to Most Recent Financial Report (March 2023) 

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New CEO Puts Envela Corporation On Path To Sustained Growth

By Arham Khan, Eden Capital, January 4, 2021

Thesis

1. Aftermarket products and second-hand goods are recession-proof; certain goods within these defined baskets witness  increased demand during recessions. We define these products as the closest comparables to Envela’s Dallas Gold & Silver Exchange division.
2. Growing demand and acceptance of second hand goods as whole goods.
3. Precious metals prices eclipsed all time highs in 2020 and will end the year up more than 22% from one year ago.
4. E-waste and IT asset disposition are externalities of the IoT, cloud software, and datacenter ecosystem. E-waste management and IT asset disposition are young, growing markets with environmental, administrative, institutional, federal, and municipal catalysts.

ELA is engaged in buying and selling jewelry and bullion products to individual consumers, dealers, and institutions in the United States. They offer a wide range of jewelry and fine-watch products, including bridal jewelry, fashion jewelry, custom-made jewelry, diamonds, gemstones, watches, and jewelry components. 

• Link to Most Recent Financial Report (March 2023)

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Quim Abril Bullish On Electronic Components Company IEHC Corp. (IEHC)

By Quim Abril, Draco Global, November 2, 2020

Thesis

Ieh Corp (OOTC:IEHC) operates in a market niche with a single competitor, has technological leadership, manufactures, and sells a product with high added value. Their connectors provide high switching costs and attractive returns on invested capital. It is a family business, net cash, and no analyst coverage. The stock is trading at $ 15, but we think it is worth more than double, with upside potential greater than 100%. If IEHC were to go public on the Nasdaq, the value could go as high as $ 40 ( 166% potential upside).

IEHC is a designer and manufacturer of high-performance electronic printed circuit connectors and specialized interconnection devices. These products are utilized to establish electrical connections between electronic component assemblies.

As we recently pointed out, the company faced some headwinds during Covid, which hurts business. Furthermore, the company finally got current on its reporting of its financial filings to the SEC that it was delinquent on.

• Link to Most Recent Financial Report (Years ending 2020, 2021, 2022)

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Response to August 25, 2020 GeoInvesting Research Note

Bryan McCann, Subscriber, October 30, 2020

They recently earned $0.16 in TTM earnings, and their Q1 increased to $0.03 from $0.02 LY. And this was during a period where they had significant staffing challenges due to COVID. They trade at a ridiculously cheap ~6X multiple of earnings. Might be a good one for your pullback portfolio.

Greystone Logistics Inc (OOTC:GLGI) – A company involved in two main businesses in the United States. Firstly, they manufacture and sell plastic pallets, offering a variety of types such as rackable, nestable, display, monoblock, and stackable pallets. They also produce specialized pallets like picture frames and Web-top pallets using a proprietary blend of recycled plastics. 

As a reminder, we want to see if the company‘s recent acquisition will help diversify its customer base which is highly concentrated. This has been limiting consistency in growth, as well as expansion in the company’s valuation multiples.

• Link to Most Recent Financial Report (February 2023)

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AirIQ (IQ-TSX.V): Recurring Revenues And Strong Downside Protection

By Trevor Treweeke, Subscriber, August 20, 2020

Thesis

We think Airiq Inc (OOTC:AILQF) (IQ.V) is an inexpensive Company that is trading at a cheap enough valuation to warrant a position. At this valuation, there’s adequate downside protection based on the low multiple from the recurring revenue business segment. In addition, the balance sheet has strong liquidity with zero debt and a healthy amount of cash.

AirIQ is undiscovered and early in the discovery lifecycle. With a market capitalization of $7M and only $5M in sales, we are expecting this to be a long-term holding until the Company becomes more discovered – barring no negative or material changes to the business.

AILQF (IQ.V) is a Canadian company that specializes in developing and operating a telematics asset management system. They use specialized software, digitized mapping, wireless communications, the internet, and the global positioning system to provide a web-based platform. This platform offers fleet operators and vehicle owners a suite of asset management solutions, enabling them to monitor, manage, and protect their assets efficiently.

The company’s recurring revenue engine seems to be accelerating. This is something we want to pay close attention to. We are actually planning to reach out to management to invite them to a GeoInvesting Fireside Chat Skull Session.

• Link to Most Recent Financial Report (March 2023)

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Namsys: A Profitable, Bond-Like Equity with Significant Upside

By Andrew Vermeer, Subscriber, October 6, 2019

Thesis

Namsys Inc (OOTC:NMYSF) (CTZ.V) is an undervalued SaaS company led by a talented, non-promotional management team that has demonstrated an ability to under-promise and over-deliver on growing a profitable, str­­eamlined software business in the currency management industry.

NMYSF (CTZ.V) specializes in providing software solutions for currency management and processing in the banking and merchant industries, primarily in North America. They offer the Cirreon software-as-a-service platform, which assists banks and armored carriers with Smart Safe and daily credit offerings. The platform also supports cash-in-transit logistics, offering barcode track-and-trace, routing, and real-time fleet services. 

While the company isn’t reporting huge earnings per share numbers, its recurring revenue is building.

• Link to Most Recent Financial Report (April 2023)

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RCM Technologies – Elevator Pitch On Bullish Catalysts

By Waypoint Wealth, September 10, 2019

Thesis

Rcm Technologies, Inc. (NASDAQ:RCMT) is an overlooked stock trading at an attractive valuation with 3 distinct catalysts.  I do not believe the business is very high quality, but it isn’t a total dumpster either.  Over the next 3 years, with the Hawaii contract rolled in, the CBD business beginning to roll in, and some modest operating leverage, RCMT could generate $0.60 in EPS.  At 14x, the target price is $8.50, well ahead of today’s $2.85 price.  The annual rate of return opportunity is over 50%.

RCMT offers business and technology solutions to both commercial and government sectors in the United States, Canada, and Puerto Rico. The company operates in three segments: Information Technology, Engineering, and Specialty Health Care Services. Under the Information Technology segment, RCM provides various services such as enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, life sciences solutions, and other offerings tailored to specific vertical markets.

The company has been outperforming other staffing companies. We want to understand why. Furthermore, this could really set the company up for a nice growth story when the economy  improves.

• Link to Most Recent Financial Report (March 2023)

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Issuer Direct’s cloud transition should lead to a higher bottom line

By William Xion, Subscriber, April 24, 2017

Introduction

I think Issuer Direct Corporation (NYSE:ISDR) is a simple investment thesis. ISDR is a US microcap that is growing rapidly, but whose growth is being masked by declining legacy segments. Once the growth business overtakes the declining businesses, the results will show on their financial statements and significant capital appreciation should be expected.

ISDR operates under multiple brands, such as Elite Financial Press, My EDGAR, Bassett Press, Edgarization, The Edgar Service Bureau, iProxy Direct, Issuer Logistics, Comply, Shareholder Direct, and Audit Ready. It is primarily an issuer services focused company, assisting other companies in creating and disseminating their financial and business communications through online and print mediums.

• Link to Most Recent Financial Report (March 2023)

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Innovative Food Holdings  Will Finally Reach TTM Profitability

By William Xion, Subscriber, March 22, 2017

Thesis

Innovative Food Holdings Inc (OOTC:IVFH) is a company growing at double digits in a trendy segment of the specialty food distribution industry with a strong competitive advantage and high operating leverage. It is trading at a very low multiple and with the upcoming earnings release, news sites like Yahoo Finance will finally show a positive TTM net income and PE which will attract investors and drive the stock up.

IVFH is a food distribution company offering a wide range of origin-specific perishable and specialty food products. Their distribution includes approximately 7,300 items, such as origin-specific seafood, domestic and imported meats, exotic game and poultry, artisanal cheeses, caviar, wild and cultivated mushrooms, micro-greens, heirloom and baby produce, organic farmed and manufactured food products, estate-bottled olive oils, aged vinegars, and healthcare food products.

Will activist involvement finally put this company back on a path to profitable growth?

• Link to Most Recent Financial Report (March 2023)

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5 reasons why you should watch Galaxy Gaming (GLXZ)

By William Xion, Subscriber, August 23, 2016

William elaborated on the reasons why Galaxy Gaming Inc (OOTC:GLXZ) should have been on your radar.

GLXZ  specializes in developing, manufacturing, and distributing casino table games. Some of their popular games include Lucky Ladies, Texas Shootout, and Emperor’s Challenge. They are also known for their innovative electronic table game wagering platforms, such as the Bonus Jackpot System. Based in Las Vegas, Galaxy Gaming distributes its products across North America and on cruise ships globally, and is the world’s second-largest provider of such casino table game products.

Will a key addition to the board help accelerate growth?

• Link to Most Recent Financial Report (December 2022)

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Semler Scientific: New Contract Wins Scrutinized

By Jakewell Parker, Subscriber, November 30, 2015

Summary

• According to the Semler Scientific, Inc. (NASDAQ:SMLR) CEO, WellChec contracts have been signed for immediate delivery from several top 25 health insurers.
• Insurers need valid risk models for patients. Obamacare or not, the SMLR risk assessment package appears to be carving out a new market.
• Recent Q3 proof-of-ROI accelerated their business outlook.
• SMLR transformed a ‘basically worthless’, and often skipped, annual wellness physical into a highly profitable, high patient satisfaction event. This is disruptive innovation by any other name.
• Whether SMLR’s WellChec is the iPod of annual medical exams remains to be seen, but it is fair to say that they are making traditional exams look like a Walkman.

SMLR is a US-based company that is engaged in providing technology solutions to improve the clinical effectiveness and efficiency of healthcare providers. It focuses on developing, manufacturing, and marketing proprietary products and services that assist customers, including insurance plans, physicians, and risk assessment groups, in evaluating and treating chronic diseases. The company markets its vascular-testing product under the QuantaFlo brand, which is a four-minute in-office blood flow test.

We’re extremely interested in tracking SMLR. Shares have pulled back sharply after the company announced that Medicare and Medicaid reimbursement will be a lot less or a limited amount for one of its  medical testing devices.

However, the stock looks really cheap and the company is also in the process of launching a few new products.

We want to see if those new products can make up for a decline they may experience from the legacy revenue. Furthermore, the drop off in legacy revenue may not be as large as people are assuming if  the test is saving lives.

• Link to Most Recent Financial Report (March 2023)

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