One of Our Run2One Stocks Just Got Very Timely
I’m excited about a stock in our pipeline that we have been following since 2020.
This stock is listed in our Run2One Model Portfolio, a selection of stocks trading below $1.00 that we anticipate will surge beyond the $1.00 mark due to their current undervaluation and the potential for substantial revenue and net income growth.
The company helps its clients understand their customers’ habits via data collection services and on-site inspections by field agents.
A recent acquisition has given the company the only one-stop-solution for the suite of services that potential customers currently have to piecemeal together from different service providers.
We think this acquisition is going to be the catalyst to take the stock over the dollar mark in the coming weeks. This would lead to an increase in the stock price of nearly 200%.
But even better, we found some information tucked away in the company’s filings that were not in the Q3 2023 press release, indicating that business conditions have improved (we call this Information Arbitrage).
They conveyed that the performance of the company’s Q3 2023 sales over the prior year marked a turning point in the challenging economic conditions many of their clients had been facing.
Last Wednesday, Nov 22, I hosted a Skull Session Management Briefing interview with the company’s CEO, the day after it reported surprisingly strong third quarter financial results.
Why was this interview so important? Aside from understanding some of the dynamics of the recent acquisition, we wanted to understand if weak industry conditions had finally truly bottomed.
The stock had fallen 40.9% from March 2023 to November 2023, trading near its 3-year low.
The dip is attributed to a temporary deceleration in customer orders. While its customers were still engaging with the company, many of them pulled back the pace of their order flow because of some uncertainty regarding the economy.
While demand was still somewhat strong, it wasn’t as strong as it was in the past as customers were taking a wait-and-see attitude on the direction of the economy.
Well, our chat with the CEO of the company confirmed the statements he made in the filing that industry conditions have bottomed, and that the company is back in the high growth mode they were about to enter before COVID-19 severely hurt the business because many of its clients are in the retail and hospitality business. But, now it looks like it’s game on!
I find it ridiculous that this profitable company with high recurring revenue and a low customer abandonment rate is trading at a price to sale of around 0.5x. To put this in perspective, from our experience, companies with these types of characteristics would typically minimally sell at a price to sales multiple of between 2x to 4x.
Now that we have information that the industry trends are turning positive for the company, and that the acquisition has totally transformed them, the case is even stronger that the shares should gravitate towards this valuation range.
Including the revenues from the recent acquisition, this would translate into a price performance target range of 362% to 824%.
KEY FACTS
Run to One; Severely Undervalued; New Growth Phase
Transformative Acquisition; Information Arbitrage; Industry Conditions Have Materially Improved
Data Analytics; Software as a Service (SaaS)
$30 million
Along with this idea, you will gain access to all of GeoInvesting’s wide array services, content and tools that will help you make informed investing decisions.
Geoinvesting is a research platform founded in 2007 to publish premium research on microcap stocks that meet a certain set of criteria that we have proven leads to superior returns. Empirical evidence proves that investing in microcap stocks beats the returns of larger cap stocks by 8.24% per year. Even Warren Buffett and Peter Lynch have said that if they were to invest in one type of stock, it would be microcaps. We provide our subscribers with an even bigger edge by combining the microcap investing edge with our own tested strategies to find the best stocks that are undervalued relative to their growth prospects or other positive catalysts. Our approach is based on qualitative and quantitative factors that finds stocks a point where they are going through significant changes that the market has yet to identify. This opportunity is only available in the Microcap world, an area ignored by institutions, Wall Street and the financial media.
Over the last 15 years, we have also built a expert Microcap investor network who contribute ideas to our subscriber base.
Our History
1500+ Equities Covered
200+ Multibaggers
30+ Years Of Investing Experience
200+ Management Interview Clips
The post One of Our Run2One Stocks Just Got Very Timely appeared first on GeoInvesting.
Source: https://geoinvesting.com/one-of-our-run2one-stocks-just-got-very-timely/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.