April 2026 Open Forum Highlights NEW data center stock, An Inflecting Turnaround, TSSI and TGEN [GeoWire Weekly No. 234]

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This week’s Microcap Information Arbitrage Weekly Wrap-Up is ready — spotlighting the most important developments across our 1,500+ microcap coverage universe built since 2009, including high-impact earnings reports, information arbitrage discoveries, contract announcements, and model portfolio updates. We also highlight insights from our investor and CEO interviews (Skull Sessions).

Urgent: This weekly update will feature key takeaways from our April Open Forum held last Wednesday, covering what happened in our stock universe throughout March and into the first few days of April.

See all emails sent during the week here.

Stocks discussed at GeoInvesting last week: 

Earnings: INXSF (TSXV:INX) FTGFF (TSX:FTG) 

Research Screen Updates: New stock added to our data center screen due to its first data center contract.

Open Forum Feature Stocks: More clarification on a special situation play, with 100% upside; An electronics manufacturing services turnaround with minor data center inferences. Sign in or join today to reveal symbols.

More Open Forum Highlights: AIXI (more on long-awaited legal update on $1.4 billion lawsuit against AAPL) + why we’re digging into FALC recurring revenue turnaround + PDEX AMPG TSSI TGEN MALJF (TSX:MAL)

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Feature Highlight From Our Microcap Coverage Universe

We had a research screen update with the addition of [MM_Member_Decision membershipID=’2|3|4|5|6|8|9|12′]Cardinal Infrastructure Group I (NASDAQ:CDNL) to our Data Center and Infrastructure screen following its first data center contract win[/MM_Member_Decision]a new stock following its first data center win. The company provides infrastructure services to the residential, commercial, industrial, municipal, and state infrastructure markets.

A P/E of 25x on its 2026 EPS guidance translates into a stock price of $41, compared to the current price of $45.63. At first glance, it doesn’t appear cheap, but analyst estimates may not fully reflect the opportunity. It’s worth tracking, as winning more data center contracts could make the stock look very cheap quickly and lead to an aggressive expansion in its valuation multiples. It’s moving to the top of our interview priority list.

Given a current average return of 527% across 26 stocks in our infrastructure screen, we’re always excited to add another one to the list. 

Furthermore, the current average return across 19 stocks in our data center screen is 187%.

The infrastructure plus data center combo has been an amazing theme for GeoInvesting. For example, LMB, WLDN, NVEE and IESC are examples of infrastructure stocks that eventually started offering data center services. Their returns since we added them to the infrastructure screen in 2016 are:

• Limbach Holdings, Inc. (NASDAQ:LMB) : 472%, peaked at 966%
• Willdan Group, Inc. (NASDAQ:WLDN) : 816%, peaked at 1504%
• Nv5 Global, Inc. (NASDAQ:NVEE) : 247%, peaked at 485%
• Ies Holdings, Inc. (NASDAQ:IESC) : 3025%, peaked at 3096%

The full Open Forum replay is now available on the GeoInvesting Pro Portal.

Inside this Week’s Report:

1. Earnings Reports Worth Monitoring
2. Open Forum Highlights
3. Coverage Universe Stats: Big Movers & Losers and New Highs & Lows

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Earnings Reports Worth Monitoring

In this section of the weekly wrap-up, we provide the following to help you get caught up with what you might have missed during the week and a little extra:

• A table summarizing all the earnings reports in the morning emails we sent to you throughout the week.
• Important  “quick takes” that we provided in the morning emails. 
• New commentary, when relevant, especially if we didn’t offer commentary on a particular stock in the earnings table that we think now is worth mentioning, or if we’ve added a stock to the table that we did not talk about during the week.

We only covered two earnings reports this week, but Q1 earnings season is coming soon.

INXSF (TSXV:INX) remains a longer-term turnaround story with ongoing short-term breakout profitability challenges, while FTGFF (TSX:FTG) delivered strong results backed by sustained aerospace and defense demand, though valuation is becoming more extended after a significant run.

You can read what we had to say about them at this link.

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Open Forum Highlights

SPCOQ’s bankruptcy structure vs. equity outcome

We already talked The Stephan Co. (OOTC:SPCO) Chapter 11 case in last week’s update.

We held a roundtable with Lee Roach (@leevalueroach), Lukas Milosic (@Pixelresearch_), and our analyst Diego La Torre (@Diego_La_Torre_) to walk through both sides of the cases. 

We recorded the session, which covers the bull and bear case in more detail. Read the full post and watch the video here.

However, we decided to go over it again during the April Open Forum.

The return profile looks meaningful if the plan is confirmed, so I wanted to bring it up during the forum.

The Stephan Co. (OTCID:SPCOQ), a distributor of barber and personal care products, filed for Chapter 11 primarily to address legacy asbestos-related litigation that was on pace to exhaust its insurance coverage, rather than due to operational failure.

The reorganization plan routes that liability through an insurance company for roughly $1 million, payable over five years. That structure is important for equity holders because it avoids the typical wipeout scenario. The worst case is approximately 50% dilution if the company misses those payments.

With the stock trading near diluted book value around 40 cents and undiluted book value near 90 cents, the situation presents an interesting setup. By the way, our book value per share calculation includes net operating loss carryforwards.

NSYS’s turnaround signals and data center angle emerging

Nortech Systems Incorporated (NASDAQ:NSYS), an electronics manufacturing services provider, has been in our funnel as a turnaround candidate, with recent conference call commentary turning more constructive versus prior periods.

A product announcement this week has further accelerated our interest: the power-over-fiber platform targets satellites, aircraft, military hardware, and subsea deployments. This end-market mix follows a familiar blueprint we’ve seen in other EMS companies that successfully re-rated toward defense and mission-critical customers.

The stock trades near book value and at roughly 15x earnings, and we’ve flagged it as a high-priority interview to better understand the new product’s realistic contribution and timeline. I also put together a short PodClip breaking down the setup and key questions. Feel free to listen to the full clip here.

AIXI’s patent win reset and what actually comes next

As you know, we reported that AIXI, a China-based cognitive intelligence and conversational AI company, has secured the rejection of Apple Inc. (NASDAQ:AAPL)’s final attempt to invalidate its patent at the Supreme Court level.

This confirms the patent’s validity and removes a key legal overhang in the case against Apple Inc. The Shanghai High Court, which has already heard the case, was likely waiting for this ruling before issuing its decision, which helps explain the extended silence from AIXI.

We are now waiting on the court’s ruling, which could include a damages component tied to the $1.4 billion claim, though actual awards in similar cases are typically far lower than the “ask”. Risks remain around timing, potential appeals after a final judgment, and the balance sheet.

The stock moved as high as $2.75, from around 20 cents, around the news before pulling back to the mid $1.00 area. The legal milestone was meaningful, but the investment setup remains unresolved. Listen to a relevant PodClip I recorded for the complete breakdown and context.

Answering Questions On PDEX Model Portfolio Positioning and AMPG

Pro-dex, Inc. (NASDAQ:PDEX), a medical device company, is on the Select Coverage Universe portfolio rather than the Open Forum Focus portfolio because we are still building conviction. It also sits in the Contributor Index, originating from a Cliff Notes pitch.

On Amplitech Group, Inc. (NASDAQ:AMPG), an RF microwave components manufacturer, the underlying technology is legitimate and has been validated by experts we’ve talked to. However, management has consistently missed its own targets, relied on repeated capital raises, and at one point deployed excess cash into crypto and lost the entire investment.

Until AMPG demonstrates capital discipline and a credible path to profitability, it is difficult for us to build conviction regardless of the quality of the underlying product.

More On PDEX & Why the setup is starting to become compelling

For the first time, Pro-dex, Inc. (NASDAQ:PDEX) appears to have visibility across multiple fronts. A large customer relationship has been solidified under a multi-year contract, and a new opportunity could layer in additional revenue if the margin profile works out.

I have followed the company since meeting management when the stock was in the $8 to $9 range, and what is different now is the combination of a durable anchor customer and a new revenue stream arriving together. A P/E in the 25x to 30x range might be justified. Our analyst Diego La Torre broke down the thesis on the Open Forum.

FALC’s recurring revenue inflection vs. balance sheet risk

Falconstor Software, Inc. (OTCID:FALC), a data backup software company, appears to be in the later stages of transitioning from a perpetual license model to a recurring revenue model. The most recent quarter showed approximately $0.07 in non-GAAP earnings per share (EPS), with annualized recurring revenue up 61% year-over-year.

At roughly 2x revenue on an enterprise value basis, the stock appears inexpensive for a software business if that earnings power is sustainable.

However, the balance sheet complicates the picture. Preferred stock increases the enterprise value above the market cap, and full conversion of the preferred could roughly double the share count. Whether the company can service that obligation from current cash generation requires further verification before conviction can increase.

That being said, the conversion price of the preferred is so far out of the money that conversion might not be an issue. Management would be smart to take the preferred off the table via some type of settlement offer.

Dell relationship clarity and modeling the real earnings power at TSSI

This clip goes over Tss, Inc. (NASDAQ:TSSI), a data center infrastructure services provider, and how the the earnings call created confusion because the 2026 guidance implied a step-down from the guidance given in the third quarter, which the market read as reduced expectations. Quite honestly, we wish the company would stop issuing guidance because of the unpredictability of different segments of the business.

The only thing we really care about moving forward is how aggressively they can grow the rack integration business. We don’t think we’ve seen the full effect of the Dell Technologies Inc. (NYSE:DELL) minimum guarantees because TSSI’s new facility wasn’t fully operational until mid-December 2025, and they had some ERP issues in Q4, which caused billing issues for DELL and led to some order delays.

At some point during 2026, we expect some big rack integration revenue… so, we’ll start to see what the minimum commitment from DELL looks like. When that happens, we think investors will be pleasantly surprised.

Regarding the strength of the Dell relationship, certain issues from the prior quarter were resolved, Dell compensated TSSI for incremental costs, and the contract was amended and extended for two more years. The key remaining question is the minimum order commitment structure in the agreement, which would give us a more reliable modeling foundation.

Delays, pipeline visibility, and why the market may be wrong on TGEN

Tecogen Inc. (NYSE:TGEN) has been punished due to the lack of an announcement on its first data center contract win.  But as far as I’m concerned, the fourth quarter earnings call was one of the more transparent quarters we have seen from the company, including a $63 million pipeline slide that provided improved forward visibility. We talked about that in a previous weekly wrap-up here.

The more significant development is the Vertiv relationship, which is being restructured from a loosely defined marketing arrangement into a more integrated partnership with TGEN’s products embedded in Vertiv’s customer deliveries. Insider buying following the selloff is also worth highlighting.

The company is expected to continue losing money in 2026, but we believe the market is mispricing the probability of data center contract wins.

MALJF’S demand strength showing through

At a P/E of approximately 12.7x at the time of the forum, Magellan Aerospace Corporation (OOTC:MALJF) (TSX:MAL) valuation appears cheap given the three-year earnings trajectory. Ongoing capacity expansion should support continued revenue growth as capacity comes online.

We discussed MALJF as a natural fit for the Aerospace theme screen we are considering formalizing, alongside Firan Technology Group Corporation (OTC:FTGFF) (TSX:FTG), Tat Technologies Ltd. (NASDAQ:TATT), and Sifco Industries, Inc. (NYSE:SIF).

The Inaugural Prime Microcaps Conference

We briefly mentioned the Prime Microcaps Conference, which took place in March and featured 50 attendees and 8 presenting companies. The format was successful, with replays and accompanying research now available on the Prime Microcaps website (on substack… no sign in required).

If you missed the live April Open Forum, the full replay is now available on the GeoInvesting Pro Portal.

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.

Coverage Universe Stats: Big Movers & Losers and New Highs & Lows

A useful research resource for identifying potentially undervalued momentum stocks and beaten-down names that may rebound over time.

Weekly Top Gainers and Losers

These are the top 10 stocks with the largest overall gains and losses for the entire week.

• Top 10 Gainers – Weekly (April 6, 2026 – April 10, 2026)

• Top 10 Losers – Weekly (April 6, 2026 – April 10, 2026)

New 52-Week Highs and Lows

These are stocks that reached new 52-week highs or lows during the week.

• New 52-Week Highs

• New 52-Week Lows

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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 April 2026 Open Forum Highlights NEW data center stock, An Inflecting Turnaround, TSSI and TGEN [GeoWire Weekly No. 234] appeared first on GeoInvesting.

Source: https://geoinvesting.com/april-2026-open-forum-highlights-new-data-center-stock-an-inflecting-turnaround-tssi-and-tgen-geowire-weekly-no-234/