Microcap Value Bull Market Has Arrived [GeoWire Weekly No. 117]

Welcome to The GeoWire , your source for a Peek into GeoInvesting’s Research Coverage, Microcap Stock Education, Case Studies, Featured Videos, and More. Please share this if you like today’s newsletter and comment with any feedback.

If you are new or this was shared with you, you can join our email list here.

By Maj Soueidan, Co-founder GeoInvesting

As we go into another election year, there are certainly going to be some circumstances that will affect the financial markets, but will we be able to predict how? What will the fed position be on monetary policy? How about interest rates…will they lower them three times, as predicted by Wall Street? Will energy prices rise or fall? What will the CDC say about any new strains of Covid? What mundane things will Presidential candidates say that will sway the market one way or the other.

I have friends who tell me that they are always on the wrong side of the news or current events that could temporarily affect or even have major repercussions for their portfolios.

The funny thing is, I can be talking with 2 investors on completely different sides of a specific trade, and they both feel like they are being screwed. That’s just how investor psychology works – in some ways it is self sabotage, and if you can’t win right away…well, you are already losing, or eventually will.

How about me? I think anyone who is familiar with me knows where I stand. Sure, I like taking advantage of bullish themes that come and go, but there is one thing for sure – I’m not so much concerned with current events as I am with where the real value is for the long term.

As I conveyed in GeoInvesting’s first live Forum of 2024, we are in an investment landscape where large cap enthusiasts face a stiff realization that finding a consistent winning strategy is just getting tougher because they have no competitive advantage over the herd that looks at the same companies.

On the other hand, the microcap universe is the most unloved I’ve seen in my over 30+ year investing journey. Ironically, the microcap stock universe provides access to about 10,000 North American stocks, half of the market’s total.

Can you think of a more bullish set up, where you have this many opportunities to find great companies, yet less and less people are looking for them? 

This environment is particularly favorable for value investors focused on undervalued, revenue-generating microcap stocks, a strategy regaining popularity on a broad basis after 15 years of hibernation. This resurgence is poised to significantly increase valuation multiples, laying the groundwork for these stocks to eclipse recent rallies in small and microcap indices. 

The future promises a shift in big movers to more credible companies that have proven and strong business operations with solid underlying financials and bottom lines with predictable growth.

The first clip below from the January Monthly forum held last Thursday touches on this.

We also highlight a playful excerpt from hedge fund manager Dominique Mielle’s book, Damsel in Distressed, that reflects on why investing in ignored segments of the market can make you a great investor.

By the way, we want to stress that it is very important to attend our Live Open Forums. It takes us a few days to make clips and get the video live. More and more, our focus is on going into some deep discussions on our favorite stocks, as well as presenting new stock pitches, like we basically did with the one we highlight in the second clip below. Even though we are long-term investors, we’re trying to identify the most timely information, and we want you to take advantage of this edge.

In the end, we don’t want you to miss very timely updates on existing or new coverage that might affect our positions going forward. 

At the very least, please review the sections of the event that most interest you after we make the recording available.

Our forums carry a lot of weight in that they are a full review of the prior month’s coverage at GeoInvesting, and we might further elaborate on some of that coverage, especially if we see data trends in some of the stocks we follow or in pitch contributions from premium members. (Ex. performance, new highs, etc.)

As an aside, we went back to making it easier to join the events by taking away the registration process. All you have to do is hit the link and you’re in.

Maj Soueidan’s Forward-Looking Philosophy on Microcaps for 2024

–

During the Forum, I also discussed a stock I am going to monitor as we head into 2024. It’s one that we’ve already had a Call to Action on…

—

If you are a premium subscriber and not currently logged in, you can log in here to view The Associated Premium content. Once Logged in, Just click on The link for The Latest Issue Listed At top of your Home Page. If you are not a premium subscriber, please JOIN HERE.

—

GeoInvesting Weekly Premium Email And Call To Action Updates (Jan. 1 – Jan. 5)

Morning Email Highlights  

• MOJO – Strong year over year growth continues; Continues to buyback shares.
• SOFO – Sells main business segment, cleans up balance sheet.

—

 Premium Emails Sent During The Week

01/04/2024

Open Forum Reminder; MOJO Strong Year Over Year Growth Continues; SOFO Sells Main Business Segment 

Stocks : MOJO, SOFO

Highlights Last Open Forum Reminder – Live Today at 2PM EST. MOJO – Strong year over year growth continues; Continues to buyback shares. SOFO – Sells main business segment, cleans up balance sheet. – Notable News On Model Portfolio Holdings EQUATOR BEVERAGE CO (OTC:MOJO) ($0.70; $11.8M market cap) announced 2023 results:…see more.

The post Microcap Value Bull Market Has Arrived [GeoWire Weekly No. 117] appeared first on GeoInvesting.