From Chaos to Conviction: Lessons on Diversifying the Right Way [GeoWire Weekly No. 193] | 🇺🇸 TGEN PPIH PSIX FEIM MIND FTEK SPRO OUST CTLP IDN KEQU 🇨🇦 FTG.TO CNO.V OML.V 🇸🇪 AAC.ST

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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting key moves, missed signals, and overlooked opportunities in our 1,500+ coverage universe built since 2009.

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If you enjoy performing press release research or think you will see value in a tool that expedites your press release research process, you should check out a press release tool my team is building by going here.

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I kicked things off with a look at how diversified microcap investing—with the right selective bets—can tilt the odds in your favor. I had originally posted these thoughts on “X.” However, the post was well-received, so I thought I should share it with all of you in this weekly update, just in case you missed the post.

By the way, I also wrote an educational post on my Substack about the short-term versus long-term investing conundrum:

The Short-Term Game Is Fun, but Don’t Ignore the Long Game

You can read that here if you’re into these kinds of posts.

I also recapped my participation in Wolf Financial’s regular X Small Cap Investing Space, where investors dissected macro head fakes, hidden catalysts, and what it takes to spot multibaggers early.

Finally, we move into two model portfolio standouts: Kewaunee Scientific Corporation (NASDAQ:KEQU), which delivered blowout Q4 earnings and nice backlog growth, proving that DOGE is not negatively impacting their business at all.

California Nanotechnologies Corporation (OOTC:CANOF) (TSXV:CNO) continues to scale smartly while reducing customer concentration. 

By the way, KEQU’s 54% move for the week pushed our Buy On Pullback Model Portfolio (BOP) #13 well into alpha-generating territory. More specifically, the average return of the 9 stocks across BOP 13 is now 38.78% since we launched it on March 7, 2025. This compares to a return of +7.00 %, +11.44 %, +4.88 % and +9.62 % for the S&P, NASDAQ, Russell 2000, and iShares Micro‑Cap ETF, respectively. The top 3 performing stocks in BOP #13 are:

• Tecogen Inc. (NYSE:TGEN): +266.82%
• Perma-pipe International Holding (NASDAQ:PPIH): +75.87%
• Firan Technology Group Corporation (OTC:FTGFF) (TSX:FTG): +68.47%

We’re still banking on California Nanotechnologies Corporation (OOTC:CANOF) (TSXV:CNO) underwhelming performance in BOP 13 reversing.

GeoInvesting’s Buy on Pullback (BOP) model portfolios are designed to capitalize on temporary market mispricings by identifying high-potential microcap stocks that have recently experienced a price dip, or “pullback,” often due to market volatility or temporary factors rather than fundamental issues with the company. Since their inception in 2016, these portfolios have typically contained an average of 5 to 7 stocks that were unfairly punished by the market, aiming to exploit contrarian opportunities and enhance investment returns. For a more in-depth understanding of GeoInvesting’s BOP strategy, you might find this video informative.

Get ready for BOP #14 by subscribing to Geoinvesting today by going here. We have an annual plan and a new monthly subscription plan. 

We actually wanted to note that In the wake of market jitters leading into Monday’s open, longtime investor @Shantaram83 shared why staying grounded in research-driven conviction—fueled by insights from GeoInvesting and MS Microcaps—led to his best single-day percentage gain since 2001. Here’s what he had to say:

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Investment Process: Concentration vs. Diversification

I’ve been a diversified investor and I’ve been a concentrated investor. I do believe they both have their place. However, diversification in microcaps is interesting. Here are 5 big reasons, from a comprehensive list I’ve been compiling to highlight why I think this is the case:

1. It can take time for microcaps to catalyze, due to a lack of investor interest.
2. A few bad bets won’t ruin you. For example, even though you may have done great research on a concentrated bet, things can change that can dramatically dampen prospects. Maybe it’s tariffs, maybe it’s a regulatory event in the industry, maybe it’s losing insurance coverage for a biotech or medical device company.
3. You can get multiple exposures to quality megabagger opportunities in trending industries (I’m not talking about low-quality pump and dumps). You only need one or two to work. For me, it’s been stuff like data center stocks (TSSI, TGEN, PSIX, PPIH) and satellite themes (FEIM, ACCMF). Subsea is an interesting industry theme: MIND KLNG CODA. All of these stocks reside in our Quality [Multibagger] Index.
4. You can place a few small bets on very undervalued stocks in industries that you don’t normally invest in or have an edge in. For me, that would be banks, biotech, medical devices, mining, and the oil & gas industry.
   
5. Even the CAGR of a concentrated portfolio with some great multibaggers can be normalized if outsized returns take several years to catalyze. This might sound absurd, but I’m looking for a much bigger CAGR of 20% to 30%. The drawdowns that can occur in microcap land demand that I aim for a lot higher CAGR. At least, that’s my opinion.

But this is really important. You still have to learn to be a good investor with a good research process. If you don’t, you’re going to either end up owning a few pieces of shit or a pile of shit.

Sure, megabagger returns like an MSMqi holding TSSI, can more than offset the weaker performance of the laggards, but you still need the portfolio to have a high “multibagger hit rate.” This means you want it to produce a good amount of multibaggers, maybe up to 40% to 50%, which is where our MSMqi currently sits. Why? Because drawdowns in a diversified microcap portfolio can be massive, possibly more than a concentrated portfolio.

I’ve concluded that some type of mix of diversification with selective concentration across a diversified portfolio fits my investing style. I just love researching companies and owning pieces of lots of great stories.

However, I also like taking big bets. This blend fits my personality, but it might not fit those of others. There are many ways to make money investing in stocks. I’m just fortunate and blessed that I found my “research style niche”, and found it early in life

Now, onto the latest highlights from the week—including key takeaways from my participation in an X Spaces panel and fresh updates from two of our model portfolio names.

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The Weekly Wrap-Up is meant for those in a hurry, along with those who want to spend a weekend hunting for ideas or quickly catch up what we talked about during the week. Our Weekly Wrap-Up brings together everything we discussed during the week in our morning emails and premium alerts, as well as new information and high conviction ideas that we did not communicate that you should know about. From earnings coverage, new research coverage on stocks, picks and research from our subscribers to event highlights from our monthly open forum that takes place to the beginning of each month and interviews with management teams and investors. Missed any emails this week? You can catch up on all of them in one place — just check out the full archive here.

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Voices From the X Space: Panelists Zero In on Undervalued Small Caps

This week, I made it back to Wolf Financial’s regular X Smallcap Investing Space Event, where investors and myself discussed how macro tensions and evolving tech trends are shaping current opportunities. Well, to be fair, I did not chime in on the macro. Despite rising geopolitical risks, speakers saw a muted market response and framed the environment as potentially ripe for selective small-cap accumulation rather than widespread retreat.

Among the stocks spotlighted, I described Mind Technology, Inc. (NASDAQ:MIND) (Mind Technology Inc., marine seismic imaging tech) as a classic information arbitrage play. While headline Q1 2025 results looked soft, management’s tone and comments on the earnings call suggested strong growth ahead. Longtime MIND bull @smantel (aka “The Godfather”) reiterated his thesis, pointing to the company’s tech moat, the speculation of a sale still being in play and tight float as ingredients for a potential move to $10—or even $15 in a takeout scenario. @KyleAdamsStocks is also very bullish on the name. He was not able to attend this particular space event, but had attended a previous event where he went through the reasons he was bullish.

Fuel Tech, Inc. (NASDAQ:FTEK) (Fuel Tech Inc., emissions control solutions) also earned airtime when it was my turn to speak. Though historically tethered to coal, the company is now targeting natural gas turbines used in data centers—an evolution that aligns well with the AI and infrastructure themes echoing across the market. As we’ve discussed before, this is a classic asymmetric bet: two or three OEM contracts could swing the company back into strong profitability, with downside cushioned by $1.00/share in cash and $1.25 in tangible book. 

FTEK had a great week, rising 24%, as the Space event and a few tweets from yours truly helped to bring some eyes to the story, including Chris Irons, Quoth The Raven on X and Fringe Finance on Substack.

Several other intriguing small-cap ideas surfaced from the panel. Ben Rabizadeh of @storytrading laid out the bull case for Spero Therapeutics, Inc. (NASDAQ:SPRO) (Spero Therapeutics, biotech), citing backing from GSK and acquisition chatter in the $4–$5 range. He also flagged $GSRT (GSR III Acquisition Corp.), a SPAC merging with a small modular reactor firm, as a sleeper benefactor of nuclear energy sentiment, with its upcoming investor day pegged as a key catalyst. Ben has a discord channel here.

The Godfather also discussed Ouster, Inc. (NASDAQ:OUST), a 3D LiDAR player now DoD-certified. He sees it as a serious contender in what he called “physical AI”—enabling robotics, smart infrastructure, and autonomous mobility—with a price target north of $30 if valuation multiples normalize. This would translate into 25%+ upside.

Geoinvesting community regular Mark Gomes added updates on names like Cantaloupe, Inc. (NASDAQ:CTLP) (Cantaloupe Inc., cashless vending tech), which has received a buyout offer, and Intellicheck, Inc. (NASDAQ:IDN) (Intellicheck Inc., ID verification), which he sees as an M&A target due to insider buying and increased cybersecurity and fraud. Intellicheck, Inc. (NASDAQ:IDN) provides digital identity validation solutions for fraud prevention, KYC compliance, and age verification.

Finally, Perma-pipe International Holdin (NASDAQ:PPIH) (Perma-Pipe International Holdings, piping for infrastructure) earned a nod from me, for its Middle East infrastructure modernization footprint and potential tailwinds from data center demand. It, along with Fuel Tech, Inc. (NASDAQ:FTEK), sits on our new Data Center Screen.

The key takeaway? Small-cap picking is about finding fertile ground in names where industry themes, hidden value, and catalysts align. As always, careful parsing of earnings calls and filings remains a core edge in separating hype from true upside.

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If you enjoy performing press release research or think you will see value in a tool that expedites your press release research process, you should check out a press release tool my team is building by going here.

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Coverage Updates: KEQU | CNO.V

KEQU Flexes Its Muscle: Backlog Grows, Acquisition Paying Off

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GeoInvesting is a premier research platform for microcap investors, dedicated to uncovering high-potential stock ideas in undervalued companies across various sectors. With over 30 years of investing experience, GeoInvesting has covered more than 1,500 equities, providing often actionable proprietary research. The platform has been instrumental in identifying 200+ multibagger stocks, and offers investors exclusive access to over 600 management interview clips, allowing for deeper due diligence and understanding of the microcap stocks, many of which make it to market-beating premium Model Portfolios. Join the GeoInvesting community for the best stock research and microcap insights to help you stay ahead in the market. To learn more about our Premium Services, go here.. (https://geoinvesting.com/premium-research/)

The post From Chaos to Conviction: Lessons on Diversifying the Right Way [GeoWire Weekly No. 193] | 🇺🇸 TGEN PPIH PSIX FEIM MIND FTEK SPRO OUST CTLP IDN KEQU 🇨🇦 FTG.TO CNO.V OML.V 🇸🇪 AAC.ST appeared first on GeoInvesting.

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