An Under-the-Radar Growth Story with Strong Fundamentals…In An Unloved Industry

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We have one under-the-radar stock in our Run to $1 Model Portfolio which stands to benefit significantly from President Trump’s policies aimed at reviving U.S. fossil fuel energy production and bolstering economic expansion.

Under previous administrations, many smaller companies within the fossil fuel energy sector were dismissed as obsolete. The lack of valuation expansion in some traditional energy stocks has been driven by unfavorable political sentiment, a lack of pro-growth initiatives, and investor neglect.

However, we believe the new U.S. administration’s efforts to ease operational constraints and stimulate U.S. oil and gas production will rejuvenate the traditional energy industry.

This shift should lead to increased revenues, lower costs, improved profitability, and increased valuation for certain stocks that we follow in the industry.

he recent pullback in this stock in focus appears to be driven more by investor ignorance than by any fundamental weakness.

It’s rare to see a company’s stock price decline at the precise moment when geopolitical and macroeconomic factors align to fuel its growth.

But that’s exactly what happens in the misunderstood microcap universe, where the absence of institutional investors creates opportunities for those who recognize mispriced value before the broader market takes notice.

Reasons to be bullish:

• Price to earnings (P/E) ratio of only 5.6x
• Consistently Profitable – This company has delivered nine consecutive quarters of positive earnings, showing steady financial performance.
• Impressive Margins – Net margins sit at a range of 10% to 17%, with additional tax loss carryforwards expected to keep profits strong for years to come.
• Sustained Revenue Growth – The company has maintained steady growth, reporting a 15% increase in fiscal 2024 revenue over the prior year. The first quarter of fiscal 2025 continued this momentum with a over 30% year-over-year revenue increase, driven by new customer additions and favorable market conditions.
• Lean and Efficient Operations – Running with just a handful of employees and minimal overhead, the company maximizes cash flow while maintaining service quality.
• Limited Competition – The primary competitor is a multi-billion-dollar company, yet this business has carved out a niche by offering faster service and better customer relationships.
• Expansion Potential Without Dilution – Management has no plans to raise dilutive capital or take on debt, instead focusing on self-funded growth.
• Tapping Into Underpenetrated Markets – Demand remains high, and the company is expanding its footprint into new regions and customer segments.
• Proven Resilience in Market Cycles – Even in downturns, the company benefits from customer reinvestment in critical infrastructure, ensuring steady demand.
• Insider Commitment – The CEO has personally financed operations and previously executed a multi-million share buyback, signaling confidence in the company’s future.
• Growth Bottleneck is Inventory, Not Demand – The company is turning away business simply due to limited inventory, meaning that as it reinvests profits, revenues could accelerate further.

Please also note that we were able to get the CEO on for a live fireside chat conversation with our analyst team, and with our community present, which was his first ever investor-facing appearance. The conversation is archived on our Pro-Portal, which you can access with a risk free trial or full annual membership.

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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.

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