July Open Forum Recap and New Information Arbitrage Highlights [GeoWire Weekly No. 195] | 🇺🇸 OCC, RFIL, ACFN, TGEN, KTEL, FTEK, OPXS, DALN, FEIM, SMID 🇨🇦 FTG.TO

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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.

This week’s update includes highlights from our monthly open forum, including stats from our coverage universe during June, such as the biggest movers and new highs.

Remember, information arbitrage isn’t a hard strategy to implement. You just have to know where to look for hidden clues and apply it in an area of the market that most people ignore, giving you substantial time to buy a stock before the crowd finds it microcaps. 

This week also featured an Investor Insight Skull Session I had with Thomas Niel (@realThomasNiel), a private investor, accountant, and curator of the Substack Value Never Sleeps. The conversation offered a unique window into the thought process of a part-time investor who hunts almost exclusively in the ignored and obscure corners of the microcap and nanocap market. 

Recent stocks discussed on his Substack include Butler National Corp. (OTC:BUKS), where we were intrigued by what a split between its casino and aerospace divisions might imply for the stock, and Espey Mfg. & Electronics Corp. (NYSE:ESP), which we flagged as a lesser-known submarine buildout play with expanding backlog visibility.

Toward the end of the session, Thomas pitched one of his favorite speculative stocks in the fintech industry.

Finally, this Weekly post reviews some of the highlights from our morning emails sent throughout the week. Optex Systems Holdings, Inc. (NASDAQ:OPXS) kicked things off with a new military hardware contract tied to the Army’s XM30 program. Firan Technology Group Corporation (OTC:FTGFF) followed with record quarterly revenue, stronger-than-expected earnings, and continued traction in its commercial aerospace strategy. 

Then came a victory lap for contributor J. Manna, as DallasNews Corporation (NASDAQ: DALN) announced an agreement to be acquired, reflecting a 200%+ gain from the initial thesis. Earnings from Frequency Electronics, Inc. (NASDAQ:FEIM) and Smith-midland Corporation (NASDAQ:SMID) showed strength but were paired with tempered near-term outlooks.

It’s a long one, so get some popcorn.

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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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This past Wednesday, we held our July 2025 open monthly forum, discussing news and developments in our coverage universe for June.

At the beginning of every month, Maj, our founder, holds a live Video slide presentation session where he goes over what happened in our entire coverage universe over the previous 30 days. He discusses everything from the best earnings reports, new stocks we’re researching, and most importantly, our NEW feature, where we highlight our favorite stock of the month. Geoinvesting Open Forums are archived for your convenience. Furthermore, the slide presentations, which have important information, as well as links that you may want to reference for your own research purposes, are made available to download.

My introductory comments of the monthly forum zeroed in on something simple but essential: quality over quantity, especially when it comes to Geoinvesting subscribers who contribute their research and favorite stock pitches to publish on our research platform. We think our increasing attention to quality and a focus on reaching out to investors who have superior or promising investment disciplines is why the returns of our contributors have been exceptional. For example, since 2015, our research contributors have now produced 52 multibaggers out of 128 total stocks, with 27 still in multibagger territory.

I also talked about why we’ve doubled down on what we see as a core responsibility: Curating all the information out there into research you can trust, making it easier for you to act on the most important short and long-term signals. With more headlines, platforms, information sources, and pitch decks vying for your attention than ever before, it’s easy to get confused or overwhelmed. 

More than ever, I think our team is doing a really good job of rising to the challenges to meet these goals by bringing you closer to the best microcap investors and by focusing on the research that’s most important, so you can make quicker and smarter decisions across our 1,500 microcap stock universe.

That approach was front and center at the July Open Forum, where we spotlighted emerging catalysts and timely opportunities across a select group of stocks. Optical Cable Corporation (NASDAQ:OCC) entered the data center narrative in a big way following its new partnership and $2 million investment (minimal dilution) by Lightera, which has a large focus on targeting data center / ai solutions in the cabling solutions industry that OCC operates in. This came as a huge shocker because, per earnings call commentary, OCC seemed largely disinterested in aggressively pursuing the data center market segment, despite actually operating a data center subsidiary in Dallas, Texas. I guess they decided to ask ChatGPT if the data center market is worth pursuing and then called Lightera: “hey, curious if you ever heard of this data center or AI thing, it seems really big?”

That was followed by the addition of a fresh entry to the Focus Model Portfolio, a funeral home roll-up that we dubbed as an early “mini-Berkshire” comparison due to a consolidation strategy that the company is just starting to implement in a market characterized by inefficiently run mom-and-pop operations.

The Open Forum Focus Stocks are part of a portfolio designed to perform well in the current market environment. These stocks are chosen for their quality and profitability, making them more likely to succeed in today’s conditions. Maj considers these to be among the highest conviction picks, meaning they have strong potential for both short-term and long-term growth. The goal is to target stocks with the potential for 50-100% upside, as well as multi-bagger returns.

We then revisited Rf Industries, Ltd. (NASDAQ:RFIL), up 80.60% since we added to our data center screen on May 7, 2025, whose SmartDAC cooling tech is quietly gaining traction in edge and AI infrastructure. 

But the big information arbitrage alert of the forum was when we flagged a contract catalyst for a microcap specialty chemicals company that could give us some clarity on when earnings per share growth could materially accelerate. Most investors have likely NOT picked up on the arbitrage implications of this catalyst-related news that the company recently released. However, because we are intimately aware of the growth catalyst for this company, we know it’s potentially a huge catalyst. If earnings implications can be trusted, we think the stock could more than triple from current prices over the next 18 months, and even potentially earn a spot in the focus model portfolio.

From there, Acorn Energy, Inc. (OTCQB:ACFN) and another company rounded out the forum’s InfoArb setups, one leaning into monitoring revenue for backup power generators, the other streamlining operations through an asset divestiture with huge EPS implications. 

We closed the Open Forum introduction with updates on three names you’re all familiar with by now: Tecogen Inc. (NYSE:TGEN), where partner Vertiv could unlock substantial data center related revenue potential; Konatel, Inc. (OTCQB:KTEL), where an industry wide legal overhang finally cleared a Supreme Court ruling that preserves the Lifeline subsidy program and potentially has much bigger applications for the expansion of the program; and Fuel Tech, Inc. (NASDAQ:FTEK), where multiple emissions-control bids by its OEM partners attacking the data center industry could potentially double the company’s size if even one contract lands. 

We also couldn’t resist talking about our “FUD” buster work playing out beautifully with Kewaunee Scientific Corporation (NASDAQ:KEQU), rising 52.63% in June. Here is our related FUD buster primary evidence research:

• A New Twist on a Familiar Industry: Why This Lab-Focused Microcap Could Be a Hidden Gem (GeoWire)
• KEQU Flashing Signals (GeoWire)
• KEQU Commentary on Unwarranted Pullback, April 2025 (Portal Research)

Remember, information arbitrage isn’t a hard strategy to implement. You just have to know where to look for hidden clues and apply it in an area of the market that most people ignore, giving you substantial time to buy a stock before the crowd finds it microcaps. 

A further look inside this installment of the Weekly Wrap-Up

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July Open Forum Highlights

Data Center Frenzy, Deal-Making, and Funeral Homes: July Forum Charts the New Market Pulse

This week’s GeoInvesting updates were anchored by the July 2025 Open Forum, which packed in over two hours of deep-dive discussion, community Q&A, and emerging stock highlights. It was a record turnout, and with good reason; between the data center supertrend, a new “mini-Berkshire” addition to the Focus Model Portfolio, and evolving strategies for navigating FUD (fear, uncertainty, and doubt) in microcap land, there was no shortage of material to chew on. Let’s break down the key themes and stock developments that framed this pivotal week.

Forum Focus: InfoArb Is Having Its Moment

The core message I shared at this month’s forum was clear: information arbitrage isn’t just alive, it’s thriving. As holding periods continue to shrink and more investors lean into short-term catalyst trading, I made the case that fundamentals-first research, especially when it uncovers hidden cues in filings, transcripts, and overlooked releases, can offer an edge that’s more relevant than ever. Whether I’m spotting new revenue streams buried in a segment footnote or catching a subtle shift in tone during a CEO fireside chat, InfoArb continues to generate alpha in a landscape where most eyes are elsewhere.

The session also provided a look under the hood at Geo’s internal tools, including new InfoArb tagging systems, a filter for microcaps under $2 billion market cap, and a data center screen that is proving to be a goldmine… With data center and infrastructure themes still heating up, this toolkit is paying dividends.

As of 7/11/2025, the Data Center Screen has an average return of 543.95% and a peak return of 765.67%.

Meanwhile, as of 7/11/2025, the Infrastructure Screen has an average return of 362.80% and a peak return of 329.87%

OCC’s Data Center Wake-Up Call: New Partnership, New Narrative

One of the most buzzed-about tickers during the forum was Optical Cable Corporation (NASDAQ:OCC), which announced a strategic collaboration with Lightera, a private AI data center solutions company. Investors might’ve shrugged at the news at first glance, after all, Lightera and OCC have worked together before. But this time is different: Lightera also took a 7.24% equity stake, and the new deal positions OCC to handle marketing and sales of the joint solutions they are planning to co-develop. That suggests Lightera is betting on OCC’s distribution reach (management has referenced) to help drive growth.

Forum discussion emphasized that this could be a real revenue inflection point for OCC, which has historically struggled with earnings volatility and lack of breakout revenue, velocity. Management believes the collaboration could significantly increase sales. I found this to be interesting because the company has not really been outwardly vocal regarding confident comments about revenue growth. 

But even more importantly, our research indicates that the company has a significant amount of operating leverage in that sales could increase by at least 50% without a substantial increase overhead costs. 

If revenue can tick just slightly above $20 million quarterly, historical results suggest EPS could start to move meaningfully. For now, the stock remains in our Buy on Pullback Model Portfolio 13.0, and post-announcement volatility due to investors downplaying this development may offer more buy on pullback opportunities.

Meet RMB.V: Executing a Roll-Up Strategy in the Funeral Home Cremation Business

A major highlight of the forum was the addition of Rumbu Holdings, Ltd. (TSXV:RMB), a funeral home operator in Western Canada, to the Focus Model Portfolio. Please be aware that the company only currently trades in Canada on the venture exchange.

A full write-up will follow, but for now, Rumbu joins our growing list of high-conviction Model Portfolio holdings. Here’s a summary of the pitch:

Rumbu combines a real-estate-backed acquisition model, tech-enabled modernization, and a capital-efficient roll-up strategy focused on cremation services. With 80% of Canadian funerals now involving cremation, and 80% of funeral homes still independently owned, the company sees a long runway for consolidation.

Insider ownership is strong, profitability has started to take shape, and I emphasized that the stock trades at just 10x earnings on an annualized basis. In my view, it likely deserves a much higher multiple, given the industry’s stability and the business’s highly predictable nature.

Revisiting RFIL: Data Center Cooling Gets Real

Another name featured during the forum was Rf Industries, Ltd. (NASDAQ:RFIL), which recently confirmed that its SmartDAC cooling solution is seeing traction in edge network and data center applications. This line had previously flown under the radar, but commentary in the company’s Q2 call confirmed that RFIL’s cooling systems are being evaluated for AI and telecom infrastructure, a major InfoArb trigger for GeoInvesting.

It’s also worth noting that RFIL’s SmartDAC division includes remote monitoring features, offering a possible SaaS angle in the future. 

While the company’s legacy business is still modestly growing and has historically been lumpy due to telecom spending cycles, this new vertical adds a higher-margin, potentially recurring revenue component. 

Management hasn’t broken out the contribution yet, but this could evolve into a major value driver.

FSI Reaches Inflection on Hidden Contract Momentum

Flexible Solutions International (NYSE:FSI) stands out as a classic InfoArb opportunity. In January, the company announced a major contract win with the potential to double its revenue base, but the market has yet to fully reflect the potential upside. A key detail emerged on a recent earnings call: the new customer has already invested $2.5 million to upgrade FSI’s cleanroom infrastructure, a required step for product deployment. That investment meaningfully reduces the risk of the contract failing to generate task orders.

One analyst is modeling $0.73 in 2026 EPS. If that target is met, a 20x multiple would imply a share price above $14, nearly three times the current level. Despite this potential, the stock has yet to undergo a broad rerating, making it a compelling candidate for watchlists.

ACFN and BWEN: Two InfoArb Deep Cuts Worth Monitoring

Acorn Energy, Inc. (OTCQB:ACFN) remains a favorite for its recurring revenue model tied to remote monitoring of backup power generators, especially for cell tower infrastructure. Management commentary suggests the company’s recent contract is just the beginning, with more deployments and potential customer expansion in the pipeline.

I highlighted some information arbitrage from Bobby Kraft’s Vegas Planet MicroCap Showcase on April 23rd, where the CEO commented that the increased level of revenue they are experiencing right now is not an aberration and will not fall off the cliff, as it stands to potentially expand its contract with its new cell tower telecom customer and land more customers in this new telecom segment. 

As a reminder, cell tower sites need backup generators which need to be monitored. That’s where ACFN comes in. We are waiting for any kind of news indicating that the current telecom contract will be expanded to more of the customer’s sites or news that the company has won contracts with other cell tower operators.

Meanwhile, Broadwind, Inc. (NASDAQ:BWEN)was framed as an acquisition-arb setup. The company is selling one of its assets, a move that’s expected to reduce annual operating costs by 50%, or  $8 million. Based on simple math, this could swing EPS to be hugely positive, even under conservative gross margin assumptions. But the market has barely reacted, leaving the door open for future rerating if/when the deal closes.

Tecogen Inc: Heating Up with Data Center Tie-Ins

Tecogen Inc. (NYSE:TGEN) remains a core name in both the Buy on Pullback and Focus Model Portfolios, and it continues to look well-positioned in the broader data center infrastructure theme. Tecogen’s high-efficiency natural gas cogeneration systems are being evaluated by data centers looking to offset rising electricity costs and grid instability. The company recently closed a sale with a Connecticut-based data center and is partnered with Vertiv Holdings, a giant in data center infrastructure.

As I mentioned during the forum, TGEN’s future likely hinges on how Vertiv decides to position and push Tecogen’s offerings. If Vertiv aggressively markets the solution, the leverage could be huge. Even though the company’s cash balance sits above $5 million, allowing it to execute on smaller project opportunities, the company is probably going to have to raise money at some point in the future to “attract” larger products. We would actually view a raise as a positive indication that the company is nearing its first large contract opportunity in the data center world.

KTEL’s Legal Clouds Parting, Lifeline Upside Returns

Underpinning Konatel, Inc. (OTCQB:KTEL) received a bit of indirect positive news after a long-simmering industry legal overhang was resolved. The Supreme Court upheld the FCC’s ability to fund telecom subsidies via regulatory fees, which protects the core economics of KTEL’s Lifeline mobile phone business. I also discussed an even more intriguing  potential positive outcome from this win. 

Basically, it may give the FCC the ability to start collecting additional fees from a broader set of telecom and broadband players to be used as subsidies to expand its role of ensuring low income households have access to voice services, but also to high speed broadband. 

I also  discussed the renewed interest by some members of Congress to bring back some version of the Affordable Connectivity Program (ACP), which could reinstate broadband subsidies, adding a huge revenue opportunity for companies like KTEL.

While nothing is guaranteed legislatively, the ruling was a clear positive and removed a key source of uncertainty. 

FTEK: Waiting for the Emissions Payoff

Fuel Tech, Inc. (NASDAQ:FTEK) continues to sit quietly on GeoInvesting’s radar as a sleeper emissions-control play with large upside optionality. Through its OEM partners, the company is currently part of several bids on several contracts targeting projects. Just one of these contracts could double the size of the company, with three potentially making it a full-scale turnaround story.

With a cash-rich balance sheet, providing some downside risk protection, the name remains a speculative but asymmetric setup. Forum chatter reiterated that while the company hasn’t yet landed its big win, any large system order could act as a trigger for valuation rerating.

In addition to spotlighting actionable stock ideas, the forum also served as a pulse check on how our strategies are performing across portfolios. From standout contributor wins to updated model portfolio returns and 52-week high data, the session gave us a comprehensive view of where things stand, and where momentum may be building next.

June Recap: Stats & Highlights

This Month in Numbers

• Buy on Pullback Model Portfolio (#13) (as of 6/30):

Opened Buy on Pullback Model Portfolio (BOP) #13 on March 7, 2025. All positions are open. As of June 30, the average return of all opened positions was 37.82% and the average peak return stood at 60.03%.

• Open Forum Focus Model Portfolio (as of 6/30):

Open Forum Focus Model Portfolio dates back to May 2023. As of the end of June 2025, the real return (open + closed positions) was 45.89%, the average return of all positions, as if all still open, was 50.14%, and the current average peak return stood at 85.58%. 

Top Performers

• Top 5 Performers Across All GeoInvesting Portfolios & Screens (June 2025):
  ALAR (+100.15%), TSSI (+99.65%), PPIH (+72.08%), PAYS (+61.80%), RFIL (+54.42%)
• Top 5 Performers from the Contributor Index (June 2025):
  ALAR (+100.15%), ZDGE (+69.92%), PAYS (+61.80%), LEU (+44.33%), ETST (+35.71%)

52-Week Highs

• New 52-Week Highs – GeoInvesting Portfolios & Screens:
  28 stocks
• New 52-Week Highs – Contributor Index:
  16 stocks

All June Weekly Issues

Here’s a quick overview of all the weekly issues we published in June, gathered in one place for easy reference. You can always find these on the GeoInvesting website under the GeoWire Newsletter section.

• 06/01 – GeoWire Weekly No. 189
• 06/08 – GeoWire Weekly No. 190
• 06/15 – GeoWire Weekly No. 191
• 06/22 – GeoWire Weekly No. 192
• 06/29 – GeoWire Weekly No. 193

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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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From Blogs to Buyouts: Skull Session with Thomas Niel Surfaces Deep Value Gems

This week’s featured Skull Session gave me the chance to sit down with Thomas Niel, a private investor, accountant, and the mind behind the Substack “Value Never Sleeps.” Our conversation offered a unique look into the thought process of a part-time investor who focuses almost exclusively on microcap and nanocap names, often digging into situations where the dust has long settled and few investors are still paying attention.

Thomas cut his teeth reading microcap blogs like OTC Adventures (now Exploring with Alluvial Capital) and Nate Tobik’s (@oddballstocks) work, and over the years has developed a style focused on finding unloved, obscure, or forgotten companies, especially those that may eventually attract activist interest or get acquired. His approach blends bottom-up sleuthing with a steady diet of 13D filings, management-driven special situations, and sub-$100 million market cap oddballs that are often flying completely under the radar.

One of the more compelling parts of the conversation was how Thomas balances quantitative rigor with qualitative curiosity. He tends to screen for low EV/EBITDA or tangible book names but isn’t dogmatic about it. He’s just as likely to pursue an activist situation with boardroom tension or a restructuring story that smells like a future roll-up.

Recent stocks discussed on his Substack include Butler National Corp. (OTC:BUKS), where we were intrigued by the potential split between its casino and aerospace divisions, and Espey Mfg. & Electronics Corp. (NYSE:ESP), which he flagged as a lesser-known submarine buildout play with expanding backlog visibility.

We also covered the post-pandemic evolution of the OTC landscape,  how regulation and delistings have paradoxically left many quality companies in the dark while scammy tickers stay listed, and discussed the hazards of being too patient with dead money in a market that often fails to rerate obscure names even after the thesis plays out.

Toward the end of the session, Thomas pitched Lesaka Technologies, Inc. (NASDAQ:LSAK), a U.S.-listed but South Africa-focused fintech company that’s transitioning from payments processing into full-fledged digital banking. Lesaka is acquiring Bank Zero to gain a banking license, which could help lower its borrowing costs and expand lending capabilities. It’s a bet on the underbanked, roll-up execution, and international investor re-rating, not without risk, but an idea he’s watching closely.

For readers interested in deep value turnarounds, high insider ownership plays, and overlooked corners of the market where the information gap still exists, following Thomas’s work may be worth the bookmark. His “Value Never Sleeps” Substack is currently free, and his monthly write-ups include both actionable pitches and mini case studies on companies like Servotronics, Paragon Technologies, and Woodland Holdings.

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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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Select Coverage Summaries From Our Morning Emails: OPXS, DALN, FEIM, SMID | FTG.TO

OPXS Secures New Military Hardware Deal

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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 July Open Forum Recap and New Information Arbitrage Highlights [GeoWire Weekly No. 195] | 🇺🇸 OCC, RFIL, ACFN, TGEN, KTEL, FTEK, OPXS, DALN, FEIM, SMID 🇨🇦 FTG.TO appeared first on GeoInvesting.

Source: https://geoinvesting.com/july-open-forum-recap-and-new-information-arbitrage-highlights-geowire-weekly-no-195/