Monthly Wrap-Up – November 2026, Covering October 2026

The October forum is going to be an important one. The last couple days of October were tough on many other stocks in our coverage universe, which flowed right into November. It’s a perfect time to review some of the stocks that got crushed based on market fear versus fundamentals. We think the panic in the market is a head fake, offering one of those great opportunities to start looking at some great companies that should not have been punished across the market-cap spectrum and across different industries. We’re looking for boring companies that are non-tech, as well as tech and AI companies that are growing, trading at value investing multiples, something you don’t see often. We’re extremely excited to share our opinions with you.

Key Highlights This Month

• Defense suppliers delivered accelerating fundamentals: FTGFF and SODI reported stronger earnings, expanding backlog, and improving operating leverage. FTGFF’s classified defense programs and SODI’s missile-component pricing were particularly compelling.
• New InfoArb surfaced in overlooked companies:  PDEX confirmed its first Zimmer validation-unit timeline, BURCA disclosed an unexpected data-center cooling opportunity, and CANOF began converting R&D relationships into recurring commercial production.
• Industrial turnarounds offered substantial earnings leverage: MTW entered our Infrastructure Screen with a potential aftermarket-driven margin transformation, while CMT’s Investor Day quantified a much larger long-term revenue opportunity despite near-term guidance pressure.
• Our research process continued expanding: New high-conviction Cliff Notes integration, InfoArb Monitor enhancements, and Investor Insights interviews reinforced our focus on uncovering underfollowed companies and independently identifying meaningful inflection points.

Model Portfolio & Screen Updates

To view October 2026 Model Portfolio updates, along with the most recent statistics for our Top Five Model Portfolio, Open Forum Focus Model Portfolio, and Buy On Pullback Portfolio, please review the slides linked here:

October Open Forum Model Portfolio Updates

You can also access all GeoInvesting Model Portfolios here.

• MTW / New Infrastructure Investment Thesis (10/06): Added Manitowoc to our Infrastructure Screen and Select Coverage Universe Model Portfolio. A potential crane replacement cycle, higher-margin aftermarket expansion, and management’s 12%+ EBITDA margin target support our modeled 80% upside by year-end 2027 and 2.4x potential by year-end 2028, assuming execution.
• CMT / Investor Day Valuation Reset (10/09): Management outlined $85M in annual product sales already won but not launched and a $210M annual quoting pipeline. Although reduced 2026 margin guidance pressured our near-term estimates, our 2030 base case implies approximately $3.73 EPS, or roughly 6x earnings at the referenced share price; December’s 2027 guidance is the next checkpoint.
• BURCA / Valuation Re-Rating Watch (10/23, 10/26): Burnham’s earnings acceleration and entry into data-center cooling introduce an unexpected growth angle to a business trading near book value and approximately 7x trailing adjusted earnings. Our next priority is determining whether the recent growth rate is sustainable enough to justify a materially higher multiple.

Research Articles and Updates Picks From GeoInvesting, MS Microcaps 

• MTW / MS Cliff Notes Deep Dive (10/06): A new high-conviction research piece examines Manitowoc’s aftermarket transformation, aging crane replacement cycle, margin targets, and potential multi-year earnings re-rating.

Investors Network Research and Stock Picks

• Matheus Lonning / Finding Underfollowed Microcaps (10/07): Investor Q&A on independent stock selection, balance-sheet protection, management conversations, and distinguishing misunderstood companies from businesses that deserve low valuations.
• Scott Felsenthal / Inflection Over Perfection (10/28): Investor Q&A exploring how operating experience shapes investment decisions, why imperfect companies can offer compelling opportunities, and how to recognize meaningful progress before it becomes obvious to the market.

Earnings Highlights

• FTGFF (10/08): (Select Coverage Universe) Revenue reached $64.1M versus $47.7M, adjusted EPS jumped to $0.41 from $0.12, and bookings increased 75% to $90.2M. Record $220.7M backlog and a 1.41x book-to-bill suggest the earnings acceleration may extend beyond one quarter.
• RELL (10/08): Revenue grew 19% to $64.9M, EPS more than doubled to $0.27, and backlog climbed to a three-year high of $184.4M. Operating expenses increased only 9%, supporting further earnings leverage as semiconductor demand and energy-storage activity grow.
• SODI (10/14): (Select Coverage Universe; Contributor Index) Sales increased 42% to $5.66M, EPS swung to $0.60 from a $0.11 loss, and backlog reached a record $24.1M. The company trades near 15x our fully taxed FY2027 EPS estimate despite its sole-source position on a major missile program.
  • INFOARB: The Q2 filing referenced updated pricing in reported sales for the first time, suggesting the AMRAAM Lot 39 reset is beginning to affect earnings rather than bookings alone. Gross margin reached 48.6%, and the remaining opportunity depends on new missile orders and the transition from older production lots.
• BURCA (10/23): (Data Center Screen; Select Coverage Universe; Buy On Pullback; Open Forum Focus)Revenue increased 27.9% to $74.6M and adjusted EPS rose to $0.44 from $0.21. The improving operating performance is notable given approximately $1.5M in remaining Crown bankruptcy-related quarterly costs.
  • INFOARB: Despite previously indicating it would remain focused on its traditional heating business, Burnham is introducing chilled-water buffer tanks for data-center cooling at existing customers’ request. The potential contribution remains unquantified, but the development adds an entirely new growth avenue to the thesis.
  • We found some additional information confirming that two competitors have dropped out of the market.
• PDEX (10/30): (Select Coverage Universe; Contributor Index) Non-GAAP EPS increased to $0.88 from $0.60, beating the $0.66 estimate, while backlog recovered to $43.1M from $32.9M in June. The rebound supports management’s explanation that the earlier decline was timing-related, although higher operating expenses and customer concentration remain important considerations.
  • INFOARB: Management disclosed plans to ship validation units for the Monogram/Zimmer mBôs surgical robot during the January–June 2027 period. This is the first concrete shipment timeline disclosed by PDEX for the program, creating a milestone investors can monitor ahead of potential commercialization.

For a quick view of all earnings reports covered in October, including links to our commentary and analysis, please visit the Monthly Earnings Highlights | GeoInvesting table.

Notable News

• PPIH / North American Orders and Jordan Expansion (10/20): PPIH announced more than $28M in new North American orders during the first two months of fiscal Q3, covering district heating, Canadian oil and gas, and U.S. data centers. The company also established its legal presence in Jordan, with the joint venture targeted for completion before quarter-end.
• CANOF / Manufacturing Capacity Expansion (10/21): CANOF increased its Santa Ana facility footprint approximately 80% to 35,000 square feet following major purchase orders and a Fortune 100 development agreement. Recent order flow represents a meaningful step toward commercial scale, though profitability and the added fixed-cost burden remain important watch items.
• KLNG / Repeat Subsea Contract (10/23): KOIL secured a significant repeat subsea cable-management contract combining specialized rental equipment with operational support and spooling services. The award reinforces the thesis that rental assets can generate associated service revenue and repeat customer engagements.
• FTEK / Contract Pipeline Conversion (10/26): FTEK announced $3.3M in contract amendments, maintaining approximately $20M in backlog. The company continues pursuing utility, industrial, and potential data-center power-infrastructure projects, but converting its larger 75M–100M opportunity pipeline remains the key test.
• MUEL / Pharma Reshoring Policy Watch (10/26): Additional proposed restrictions on U.S. investment in certain foreign pharmaceutical and biomanufacturing businesses could reinforce domestic capacity expansion. We continue monitoring MUEL for equipment orders potentially emerging in H2 2027; the new proposal itself does not generate orders.
• InfoArb Monitor / Platform Enhancements (10/09): Development continues on expanded monitoring and research capabilities designed to identify changes across earnings calls, press releases, filings, and company commentary. Delta Sheets remain a central part of the process for isolating information that may be overlooked in conventional earnings coverage.

Info Arb Highlights Recap

• SODI / Missile Pricing Finally Reaches Revenue (10/14): The Q2 filing referenced updated pricing in reported sales for the first time, suggesting the AMRAAM Lot 39 reset is beginning to affect earnings rather than bookings alone. Gross margin reached 48.6%, and the remaining opportunity depends on new missile orders and the transition from older production lots.
• PDEX / Zimmer Biomet Timeline Emerges (10/30): Management disclosed plans to ship validation units for the Monogram/Zimmer mBôs surgical robot during the January–June 2027 period. This is the first concrete shipment timeline disclosed by PDEX for the program, creating a milestone investors can monitor ahead of potential commercialization.
• BURCA / Management Changes Course on Cooling (10/23, 10/26): Despite previously indicating it would remain focused on its traditional heating business, Burnham is introducing chilled-water buffer tanks for data-center cooling at existing customers’ request. The potential contribution remains unquantified, but the development adds an entirely new growth avenue to the thesis.
• CANOF / R&D Converts Into Commercial Orders (10/21, 10/26): CANOF’s $147K satellite-component award marks the transition of an aerospace customer from development work into recurring production. The initial annualized production rate could reach approximately $459K, with a potential doubling by year-end 2027 subject to customer demand and further orders.
• FSI / Strong Growth, Unanswered Questions (10/19): Preliminary Q3 revenue rose 36% to $14.35M, exceeding our approximately $12M estimate. However, Panama revenue shifted from Q2, ENP benefited from seasonality, and the status of the food-grade production ramp remains unclear; the headline growth needs confirmation in the full results.
• TSSI / Warehouse Expansion Beyond Existing Relationships? (10/06): TSSI leased an additional 380,000 square feet to support AI/HPC infrastructure demand. The important unanswered question is whether this expansion opens opportunities beyond Dell and the previously discussed Vera Rubin integration investment, potentially broadening the customer and revenue base.

Live Events

Starting Five Virtual Conference (GeoTeam Reports ) — Our subscriber-only event featured four microcap companies and an analyst stock pitch, providing direct access to management discussions and live Q&A.

• Diego La Torre — Exclusive stock pitch
• CVALF — Covalon Technologies fireside chat
• CDTI — CDTi Advanced Materials fireside chat
• DDOSF — Corero Network Security presentation, co-hosted by Ben Brostoff
• CLIR — ClearSign Technologies fireside chat, co-hosted by Jev

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