Welcome To The Mike And Mike Show – A Multibagger Potpourri [GeoWire Weekly No. 189] | BOSC PFHO PSIX TGEN MNTX COV.V BRM.V URL.CN

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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready —where we help our subscribers  get back on track with important information included in our morning email updates and cut through the noise to spot what others have missed.

Last week, we highlighted my conversation with Mike of the Multibagger Monitor Substack.

Inside this week’s issue, I summarize my Investor Insight Skull Session with another Mike and full-time investor, Mike Schellinger.

I’ll also touch on: 

• The eighth stock we just added to our data center screen last week plus a ninth stock we’re about to add
• An earnings recaps on Covalon Technologies Ltd. (OOTC:CVALF) (COV.V), Biorem, Inc. (OOTC:BIRMF) (BRM.V), Namesilo Technologies Corp. (OOTC:URLOF) (URL.CN) and B.O.S. Better Online Solutions (NASDAQ:BOSC).
• A small contract win for an industrial solutions provider that is more meaningful than the contract size portrays.

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For our premium subscribers, the full Weekly Wrap-Up newsletter unpacks earnings, our research reports, management commentary, CEO & investor interviews and market dynamics impacting 1500+ stocks we follow. If you’re not yet a premium subscriber, I invite you to join us—unlock the detailed insights that could sharpen your portfolio decisions, as well access to our stock screens, favorite stocks and Model Portfolios. Also, at the end of this post, you can see all of the individual emails we sent throughout the week that today’s summary covers, and are also individually archived at our premium portal under the Research main menu item.

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Before I get into my discussion with Mike Schellinger, and because we just launched our new Data Center Screen, let’s take a look at some return stats of Geoinvesting’s top performing and first stock screen we launched in 2016 the Infrastructure Screen. Well, we actually added the first stock to the screen in 2012 and then went crazy with it in 2016, with 16 additions. 

We create screens to help Geoinvesting subscribers  start their research process associated with trends we think will produce multibaggers. 

All told, there are 25 stocks in the infrastructure screen, which has produced a CAGR of 19.6% at current prices and 14 total multibaggers at their peaks (10 using current returns). Additionally, 60% of the stocks, or 15, have been acquired.

Maybe you’ll recognize some of the names in this screen, like Ies Holdings, Inc. (NASDAQ:IESC), Nv5 Global, Inc. (NASDAQ:NVEE), Limbach Holdings, Inc. (NASDAQ:LMB),  Sterling Infrastructure, Inc. (NASDAQ:STRL), Jacobs Solutions Inc. (NYSE:J), and Willdan Group, Inc. (NASDAQ:WLDN).

Anyways, in case you missed it, on Wednesday we added our eighth stock to Geoinvesting’s NEW data screen launched just two weeks ago and guess where we pulled it from? The Infrastructure Screen.

Funny enough, the stock increased 1900% at its peak since I conducted a site visit on February 25, 2016. Now I’m digging in to see if their data center business will set the stock up for a round 2 multi-bagger trip.

Infrastructure stocks are great places to hunt for data center pick and shovel stocks. In fact, 15 stocks in the screen have exposure to the data center market.  

Honestly and unfortunately, I didn’t see that connection early enough to fully play the infrastructure data center theme. I was already long gone from owning many of these stocks.

We’ll see if the eighth company will give me a chance at my revenge, even though I have not developed the conviction to own it yet. I just need to reconnect with management. 

I’m a little confused about the optimism expressed in the 2024 fourth quarter press release with respect to the data center business…

“We believe the outlook for 2025 remains very favorable as funding from the Infrastructure and Jobs Act by state and local governments continues. Demand for utility vaults remains strong due to the continued need for data centers to support AI technology.”

It may not match the narrative in the 10K, where the company outlined 2025 expectations for all of its divisions, including the utility division, which is where the company’s data center business lies.

“Utility Sales – Utility products are mainly comprised of underground utility vaults used in infrastructure construction. Utility product sales increased by 171% in 2024 compared to 2023. The increase is related to the increase in the market for dry utility vaults to support the growth in data centers. Utility sales are expected to be similar during 2025 as compared to 2024, although no assurance can be provided.”

You can see the company’s revenue split breakdown and related outlook on pages 14 to 16 of the 10k.

That all being the case, maybe the data center business is a small part of the overall revenues of the utility division. Additionally, the company is forecasting growth for all of 2025 and the upcoming 2025 first quarter:

“The company anticipates first quarter 2025 revenue to be substantially greater than in the first quarter of 2024. Gross margin and net income are both expected to be greater than the prior-year first quarter as well.”

The other interesting thing to watch is the company’s transition from selling its barrier wall products to renting/licensing them, which should create a relatively higher margin and more stable revenue source. 

If you’re going to invest in this stock, you’re going to have to realize that the company has a history of reporting lumpy quarterly results. Maybe the shift to rental revenue will help smooth out some of that volatility and increase the amount of customers that would be interested in its barrier walls.

At a P/E of 20x, the stock isn’t terribly undervalued. However, over the last few years, the stock has held a premium valuation. 

While we’re on the data center conversation, we forgot to add another company to the data center screen due to this tiny disclosure mentioned in a recent press release:

PPIH is now officially added to the data center screen. 

Join GeoInvesting Premium today to get access to our data center screen and the related stocks discussed in this post

Now, onto a recap of a great conversation I had with one of the most respected investors in microcap land: Mike Schellinger.

This turned out to be a great time to catch up with Mike, since he’ll be at Scott Weis’ 6th Annual CEO Event in Chicago on Monday (tomorrow), where 6 companies, Tecogen Inc. (NYSE:TGEN), Lakeland Industries, Inc. (NASDAQ:LAKE), $BOG, Nexgel, Inc (NASDAQ:NXGL), Nextdoor Holdings, Inc. (NYSE:KIND), and Ascent Industries Co. (NASDAQ:ACNT), will be pitching their stories to 32 investors over dinner. 

I’ll be interviewing the CEO of Tecogen Inc. (NYSE:TGEN), wearing my Tss, Inc. (NASDAQ:TSSI) shirt to motivate him! Don’t screw this up Abinand!

This will be back to back years in which I will have interviewed a data center stock at Scott’s event. Last year, it was the CEO of TSSI, Darryll Dewan.

By the way, I’m planning an delivering a surprise “gift” for Geoinvesting Subscribers when I return from the event  

Investor Focus: Lessons from a Microcap Diehard

Mike Schellinger is known on Twitter as @MikeDDKing and was a key person in building the Microcap Club (MCC), to what it is today. By the way, Mike carried the number one spot on the MCC investor leader board for many months, and still ranks in the top 5, years later.

I’ve wanted to sit down with Mike for a while, and the conversation didn’t disappoint. For anyone who’s ever tried to make a career out of tracking down value where no one’s looking and managing the chaos of illiquid names—Mike is one of the most seasoned investors to do it.

Mike’s hands-on research process totally resonates with me. He doesn’t just screen for stocks. He hunts. Every morning starts with a ritual: reading through SEC and SEDAR filings and press releases, meticulously sorted by tickers he’s owned or researched—over a thousand by his count. 

This takes me back to my early days as an investor, where I relied heavily on press release research, due to the lack of resources available to the “poor” everyday investor at that time.  I still carry that part of my research process with me today, so it was great to talk to Mike  about how he mines press releases on a daily basis to uncover mispriced microcaps before the crowd catches on.

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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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Mike isn’t afraid to act fast on a quietly bullish 10-Q, but what makes his edge durable is the deep context he builds over time. Mike’s a press release hawk and a believer in info arbitrage, the kind you only earn by obsessing over the small stuff that others skim past. You can imagine that I connected with that.

His story started with a background in embedded software engineering and a father who was a CPA. That combination of analytical rigor and financial curiosity laid the foundation. But it was the low valuation rabbit hole that pulled him into microcaps, and he’s been neck-deep in them ever since. He’s weathered cycles, survived value traps, and held names for years when conviction and liquidity allowed. 

Pacific Health Care Organizatio (OOTC:PFHO) was a standout case—he started buying it at 50 cents in 2011 (or $0.03, 16:1 forward split adjusted) and watched it go to $60 ( $3.75 split adjusted), all because he caught a strong quarter in the filings before anyone else did. But he was quick to note, the fun can end fast if you don’t plan your exit in illiquid names, where timing your sell can matter as much as nailing the buy.

I purposely brought up PFHO in our conversation because it’s a stock that GeoInvesting eventually highlighted when it traded at $0.235 (split adjusted) on 5/16/2012. The company helps its customers manage their Workmen’s Compensation affairs. 

I was so happy that I thought I found the company before the crowd, as well as excited to profile the company on MicroCapClub (MCC)—until I realized that Mike had already profiled the stock on MCC.

Obviously, PFHO was one of Mike’s picks that helped propel him to the number one spot on the MCC leaderboard. Ah…what my life could’ve been like had I beat Mike to the punch. I still don’t forgive him for this!

Interestingly, I remember being able to build a rather sizable position in this illiquid stock, proving what I’ve mostly experienced in the microcap arena. If you get in early enough or during market dislocations, you’ll find enough liquidity to build a nice position in even illiquid stocks. 

There’s always some disappointed or disgruntled seller out there. You just have to flush them out. Sometimes it’s ignorance, sometimes it’s buyer’s fatigue/frustration, and sometimes it’s market panic, margin calls or a fund winding down its position.

Mike’s approach is rooted in growth over deep value. He’s not necessarily chasing turnarounds or broken stories for the sake of cheapness. He wants revenue and earnings moving in the right direction, preferably with a small hint in the filing that the next quarter will look even better. That’s what excites him—an inflection point that the market hasn’t priced in/found yet.

He’s also candid about where he draws lines—steering clear of Chinese stocks, approaching private placements with caution, and maintaining a healthy skepticism toward promotional management teams. While Mike does occasionally call CEOs, it’s not necessarily to dig for info, but to better understand how operators think—gauging tone, trustworthiness, and strategic posture.

As we discussed the art of interpreting communication, I shared one of my own favorite reminders: “There’s the literal press release… and then there’s reading between the lines.” That nuance—seeing what’s not said—is a skill Mike clearly values too.

At one point, I recalled a CEO who once hung up on me after bluntly saying, “Just read the filing.” Mike laughed; he’d been there in his own way. That’s the nature of this work. You fish in obscure waters long enough, you learn what a real opportunity smells like—and when to toss one back. By the way, regarding the CEO of that company that hung up on me years ago, well, that was the Buffett-like stock we highlighted here.

My chat with Mike reminded me just how much of this game is about putting in the hours and sharpening your instincts. In a time when AI tempts us with shortcuts, it’s a lesson that newer investors in particular would be wise to keep in mind.

A few clips from my talk with Mike

Mike Schellinger on How a Software Engineer Became a Microcap Diehard

Mike Schellinger & Maj on Sizing Up Positions and Knowing When to Trim

Mike Schellinger on Why He Prioritizes Growth Over Deep Value

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Now, onto the latest updates from our coverage universe… including more news from the two stocks we highlighted…

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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 Welcome To The Mike And Mike Show – A Multibagger Potpourri [GeoWire Weekly No. 189] | BOSC PFHO PSIX TGEN MNTX COV.V BRM.V URL.CN appeared first on GeoInvesting.

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