Important GeoInvesting Portfolio Moves Support Shifting Microcap Investor Focus [GeoWire Weekly No. 165]

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Highlights Transition to Open Forum Focus Model Portfolio: The Legacy Top 5 Faves Model Portfolio, which delivered a 203.81% average return, has been replaced with the new Open Forum Focus Model Portfolio, designed to spotlight GeoInvesting’s highest-conviction, earnings-driven ideas. Reintroduction of Company as a High-Conviction Pick: Intouch Insight Ltd. (INXSF) was re-added to the high-conviction portfolio after stronger-than-expected Q3 results and a renewed focus on profitability, driven by its unique blend of on-the-ground services and software solutions. TGEN’s Progress Toward Profitability: Tecogen (TGEN) secured multiple new contracts, including an upfront cash payment deal, which could push the company toward break-even profitability while minimizing the need for a capital raise. BIRMF Added to the Select Coverage Universe: Biorem (BIRMF) was elevated to the Select Coverage Universe Model Portfolio as growing demand, a solid order backlog, and new recurring revenue streams signal potential for sustained growth.

This week’s aim is to bring you some key discussion points from our 12/5/2024 Member Open Forum. In particular, there was an extended discussion on our Legacy Top 5 Model Portfolio, which was recently closed and how we are replacing this model portfolio with the new Open Forum Focus Model Portfolio.

Launched in 2019, the Top 5 Faves Model Portfolio was designed to showcase GeoInvesting’s highest-conviction stock ideas, offering members a curated selection (from a larger list of favorites) of actionable investment opportunities with what we felt to have strong longer-term multibagger return potential. 

As we already touched on, over its five-year run, the portfolio delivered strong results, generating a total average closing return of approximately 203.81%. This outperformed the Russell Microcap Index by 126.38% over that duration, even after taking into account the poor performance from a few stocks that got caught in the transition of investors putting greater emphasis on deploying capital into growth investing in traditional quality value stocks (earnings and cash flow matters most) vs. traditional growth stocks (high revenue growth matters most).

However, it’s worth pointing out that even the worst 5 underperforming stocks were up handsomely at their peak returns during their tenures in the model portfolio, for an average of 96.98%.

The decision to close the portfolio comes in tandem with our new high conviction Model Portfolio launched in 2024, Focus Model Portfolio, aligned with the shifting dynamics of investors’ focus to value investing and quality, where earnings matter. It also simplifies our Model Portfolio structure.

As we continue to adjust to the evolving market landscape and subscriber feedback, we believe it is prudent to focus on more impactful investment strategies through a main high-conviction portfolio that we’ve been building on a monthly basis through our Live Monthly Forum Events.

The core approach and philosophy that guided the Top 5 Faves Portfolio selections will remain intact, but with a greater emphasis on quality. 

We also talked about the Buy on Pullback Model Portfolio being our other high conviction portfolio.

By focusing on this more unified structure, we are offering members a clearer and more efficient way to access our highest-conviction ideas while maintaining our emphasis on identifying high-return opportunities. 

By the way, there is an irony that was obviously evident with our new high-conviction selection, so read on for more to see how we covered it in the forum. Make sure you’re signed in if you’re a premium member.

HIgh-Conviction Focus Stock of the Month…

 

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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/)

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