Tornadoes And Turnarounds: While It’s A Little Early, One Stock Is Getting Very Interesting Again [GeoWire Weekly No. 142]

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“The anticipated cost savings alone equates to about a whopping $1.70 (tax adjusted, $1.27) in pre-tax EPS!! At the current price of $8.00, the stock is selling at a P/E of 6.29x on just the expense savings, assuming no growth in the company’s business. A re-rate to a P/E of 10x or 15x would equate to an eventual price target range of $10.27 to $26.25, respectively. 

We will be revisiting this story, with an obsession, in the coming weeks…Stay very tuned.”

~ Key quote from this Sunday’s Weekly Wrap Up.

Highlights 

Tornadoes and Turnarounds in focus: While it’s a little early, One stock is getting very interesting again.

• KEQU: Classic Turnaround Case Study
• ALAR Takes round 2 in bull vs. bear battle royale, rebounding from a standing 10 count in round 1.
• CRWS Turnaround worth watching due to low P/E and 6% dividend yield.
• Nanomaterials industry is expected to grow 33.1% from 2023 to 2030. Trying to get the CEO of nanocap player, no pun intended, on a GeoInvesting Skull Session Fireside Chat to present his company’s growth plan that just inflected.
• A walk down memory lane with a GeoInvesting Intern from 2008.

If there was a recurring theme in our email communications this week, it was clearly turnarounds. Among our 10 point checklist to find tier one micro cap stocks is identifying high-probability turnarounds. Our vigilance for these opportunities remains a key component in trying to identify multibaggers early in their formations. Don’t get me wrong, finding multibagger turnarounds is not easy and took me years to get right.  

I guess this parallels with a storm chaser who gambles on deciding to follow and bet on an EF1 tornado developing into an EF5. In fact, Less than 1% of tornadoes are classified as EF5s, the most damaging tornadoes. But when you get it right, it’s exhilarating. 

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GeoInvesting Weekly Premium Email And Call To Action Updates (Jun 24 – Jun 28)

Morning Email Highlights Notable Updates

• HHS – Cost saving measures continue with pension plan termination.
• KEQU; Q4 adjusted EPS of $1.55 vs adjusted EPS of $0.34 in the prior year; Backlog remains healthy; Run-Rate P/E of 10x.
• CANOF – Watching to see if recent strong revenue will lead to sustained profitability.
• CRWS – Stock trading at P/E of 10 and pays dividend of around 6%, we want to dig into the company’s transformation. 

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 Premium Emails Sent During The Week

06/25/2024

HHS Cost Cutting Measures In Focus 

Stocks : HHS

Highlights HHS – Cost saving measures continue with pension plan termination. – ** Notable News/Commentary on Followed Stocks Harte-Hanks, Inc. (NASDAQ:HHS) ($7.59, $54.9M market cap) has finalized the successful divestment and termination of its obligations to its pension plan. Recall, in past conference calls management had discussed cost saving measures that could reduce cost by $16 million over…see more. 

06/27/2024

KEQU: Considerable Upside In Cards after Q4 2024 Report? 

Stocks : KEQU

** Notable News/Commentary on Followed Stocks KEQU; Q4 adjusted EPS of $1.55 vs adjusted EPS of $0.34 in the prior year; Backlog remains healthy; Run-Rate P/E of 10x Kewaunee Scientific (NASDAQ:KEQU) ($38.74; $111.3M market cap) announced Q4 and full year results: Q4 Sales of $56.7 million vs $53.9 million in the prior year Q4 Adjusted EPS of $…see more. 

06/28/2024

CANOF Nearing Profitability; Will CRWS Valuation Re-Rate Higher?; Next Open Forum 

Stocks : CRWS

Highlights CANOF – Watching to see if recent strong revenue will lead to sustained profitability CRWS – Stock trading at P/E of 10 and pays dividend of around 6%, we want to dig into the company’s transformation. Next Live Open Forum this coming Tuesday, July 2 – ** Notable News/Commentary on Followed Stocks California Nanotechnologies Corp. (CNO.V) (CANOF)…see more. 

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