MSmicrocaps

The microcap index focused on quality+value+momentum at growth inflection points (MSMqi) supported by Cliff Notes & tools:

[MSmicrocaps @MSmicrocaps]

Easily, one of our favorite companies from our microcap quality index.

-They will probably be pushing a two dollar per share annual EPS run-rate in the near future, reversing prior year losses.
-It’s the lowest P/E of its comps (15x vs. 25x or higher). Implies a double in the short-run and long-term MultiBagger.
-Five previous companies the CEO ran have been acquired.
-Backlog growing year over year and sequentially.
-Defense theme.

Link in bio

[Maj Soueidan @majgeoinvesting]

Entries for phase one of @MSmicrocaps 2026 Stock Picking Contest ends TONIGHT. $5k pool of $15k total prize pool. No entry fee. Pick your fave Cos. from the June @PlanetMicroCap. We created tear-sheets on every Co. that presented at the conference, including presentation links.

[Maj Soueidan @majgeoinvesting]

Phase one of our earnings calendar at @InfoArbMonitor is deployed. You can:

•Set desktop and email alerts
•Monitor watchlists
•Filter by market-cap
•Read transcripts as live earnings calls take place
•Read past calls

More features coming during Q2 earnings season.

[Maj Soueidan @majgeoinvesting]

You’re asking the wrong person 🤭. I have held some stocks for more than 10 or 15 years before they catalyzed, like $KRMD $TSSI . I run a pretty diversified portfolio, so waiting isn’t an issue. That being said, with TGEN, it’s a little different because they’re losing money which creates a shot clock. I think I will start to get mildly concerned if they haven’t bagged a data centers contract by Q1 2027. But there is some interesting upside besides the data center business.

Surprisingly, the legacy business is starting to pick up. Everyone talks about the data center cooling opportunity, but power grid issues span well beyond that, into other areas that they target that had been subdued growth markets, but this may be changing.

Also remember, 10% to 20% of every project sale translates into recurring revenue. Breakeven is probably about $8 million per quarter. I think they’re at about $4 million in recurring revenue right now.

In general, I feel the data center opportunity is actually stronger today than it was before and now the legacy business is looking stronger. I find that all pretty interesting.

[EPSMonitor @EPSMonitor]

Hmm.. Wonder where one could start that process. Perhaps, our earnings EPS monitor for the good prospects + @DeepSailCapital short selling substack to know what to avoid..🤭

[Hugo Navarro @HugoNavarroPer2]

Recommend everyone to watch this podcast I made with Maj. I tell you a bit about my journey and four investment ideas.
$CCLD , which is crazy cheap with growth ahead at 4x FCF.
$E Enterprise Group, where I expect growth to come back to the picture, offering a low risk re-rating.
A 20% sustainable dividend in offshore and a duopoly at below 3x EV/EBITDA.
All of that in the podcast.

[MSmicrocaps @MSmicrocaps]

https://t.co/zoBu07eB2z

[MSmicrocaps @MSmicrocaps]

Cliff Note # 146 is out: Sole-source defense supplier. Their flagship program's budget is projected to jump 3x+.
- Earnings inflection the market hasn't priced.
- Sole-source on its flagship program.
- Budgeted procurement is set to jump more than 3x.
- Record backlog + fresh pricing reset.
- Potential strategic catalyst in play.

10th aerospace & defense name in our Microcap Quality Index. The first 8 returned a median 260% (370% at highs), with 6 multibaggers. #10 is next.

🔗 Link in comments 👇

[MSmicrocaps @MSmicrocaps]

The great thing about $TPC is that it’s a deep value stock with a growth angle that hasn’t been priced into the stock yet. It’s the same thing you saw with megabagger $STRL, as it went through its multi-year P/E expansion cycle. It’s why TPC has been added to our quality index.

[Maj Soueidan @majgeoinvesting]

Either I’m missing something or $TPC sharp pullback from highs is a unique gift. Maybe as much as $OCC pullback. TPC has come through with both of their information arbitrage catalyst disclosures on their Q1 call. Nice data center contract + debt refi. Source: @InfoArbMonitor

[Maj Soueidan @majgeoinvesting]

Either I’m missing something or $TPC sharp pullback from highs is a unique gift. Maybe as much as $OCC pullback. TPC has come through with both of their information arbitrage catalyst disclosures on their Q1 call. Nice data center contract + debt refi. Source: @InfoArbMonitor

[EPSMonitor @EPSMonitor]

The Weekly Earnings Brief #24: Jun 29 – Jul 5, 2026 | $CAF.V, $CNO.V $CANOF, $MUSH.V, $EACO & $TIKK.

$TIKK Excerpt:

Nano-Cap Defense Electronics Turnaround

•The setup: Just reported FY2025 (a year behind on reporting), net loss of $4.9M on $9.3M revenue as the main legacy product went obsolete. Management notes that FY2026 revenue improved to $10.4M, with the operating loss narrowing. Management participated in recent financing to shore up the balance sheet.

•What we’re watching:
◦Backlog of $11M includes the first $3.5M of a ~$20M government production contract. Full-rate production starts this month, and management projects it will add $5M in annual revenue, with “extremely strong growth and profitability” guided from Q2 of the current fiscal year.

•Valuation: Less than 1.0x EV/Sales, with managment hinting at strong revenue growth.

[MSmicrocaps @MSmicrocaps]

$TPC: The 130-Year-Old Infrastructure Co With 2026-2027 Earnings Already in the Bag + Free Data Center Optionality

Multibagger Factors: Backlog Visibility - Data Center Optionality - Margin Inflection - Refinancing - GARP

https://t.co/sX5efjuWHT

[MSmicrocaps @MSmicrocaps]

If you enjoy investing vs. gambling, here’s what you’ll find at our Substack:

•Information arbitrage
•Quality microcaps & high-probability turnarounds
•Multibagger frameworks
•Process over predictions
•Flexible investing
•First mover advantage

Free Cliff Note in reply

[MSmicrocaps @MSmicrocaps]

“What if you could buy a biz with entrenched positions in certified, mission-critical aircraft avionics, products that stay on planes for decades, with customers who don’t switch away lightly?”

Our next aerospace Multibagger candidate.. Link to research: https://t.co/WVefn151ny

[MSmicrocaps @MSmicrocaps]

“What if you could buy a biz with entrenched positions in certified, mission-critical aircraft avionics, products that stay on planes for decades, with customers who don’t switch away lightly?”

Our next aerospace Multibagger candidate.. Link to research: https://t.co/WVefn151ny

[MSmicrocaps @MSmicrocaps]

We just added our 9th aerospace & defense name to our microcap quality index. The first 8 generated median current & high returns of 260% & 370%. 6 became multibaggers - a 75% hit rate. We believe this 9th stock will soon join this multi-bagger “hall of fame.”

Link in reply

[MSmicrocaps @MSmicrocaps]

This is basically how we find a good deal of stocks we add to our microcap quality index.

Growth + Value + catalysts + Ignored = Alpha

We use @InfoArbMonitor to help us find real-time InfoArb. It’s a tool we built for open minded investors who believe in this formula.

[Maj Soueidan @majgeoinvesting]

This 2012 David Tepper CNBC clip perfectly encapsulates InfoArb in microcaps - ignored intel staring you right in the face, telling you where a stock is going to go with almost total certainty.

David basically says: We’re not that smart, we just listen. @InfoArbMonitor

[MSmicrocaps @MSmicrocaps]

@kgtotheh @majgeoinvesting @InfoArbMonitor @GeoInvesting @Diego_La_Torre_ Amen, brother

[MSmicrocaps @MSmicrocaps]

@LockStockBarrl 💯 in agreement

[MSmicrocaps @MSmicrocaps]

A big mistake we can make with operating leverage is waiting until it shows up in the income statement to get us interested.

Operating leverage can start showing up somewhere else first:

-Backlog growth, especially in higher margin areas
-Capacity expansion
-Hiring that suddenly slows
-Management becoming more confident
-Intent to raise prices
-A strategy shift toward higher-margin products

Those clues often appear several quarters before the income statement catches up.

That’s why I spend so much time reading earnings releases and conference call transcripts.

[MSmicrocaps @MSmicrocaps]

Investment Process Post: “Operating leverage is one of the many multibagger factors we evaluate when selecting stocks for our Microcap Quality Index. Two stocks in the Index are now reaching operating leverage inflections. One is a high conviction Spotlight stock” 👉Link in reply

[MSmicrocaps @MSmicrocaps]

Bookmark this. Every cycle feels different while you’re living through it. The investor psychology never changes.

[Maj Soueidan @majgeoinvesting]

Same phases happens during every hype cycle:

1 - Everything goes up. The quality and the crap.

2 - Perma bulls say valuations don’t matter.

3 -Perma bears predict Armageddon.

4 - The first few pullbacks get bought immediately. The junk rallies hardest, “reinforcing” the idea that valuation doesn’t matter. Bulls get cocky, downing top shelf shots. The bears get depressed and are annoying to be around, downing bottom of the well shots.

Then it starts.

5 - Uber drivers tell you they’re crushing the market. Some dude at a barbecue says he’s buying AI stocks full-time because investing is “easy.”

Just like what happened in other cycles in the past such as dot com, EV, crypto and cannabis.

6 - Meanwhile, “quality” investors get frustrated because disciplined investing is underperforming speculation. Some abandon their process and chase what has already worked.

7 - Eventually almost everything becomes expensive. Then valuations reset for a painful period of time. Nothing consistently works.

8 - Investors who never understood what they owned discover that conviction borrowed from social media, AI summaries, or momentum isn’t conviction at all. Many sell near the bottom.

9 - A few perma bears finally have their moment on CNBC, declare victory, but most forget to calculate what years of being early and wrong did to their long-term returns, and their youth.

10 - The quality bulls become too afraid to buy at the bottom.

The lesson isn’t to become a “bull” or a “bear.” It’s to:

• Avoid becoming either at the extremes.

• Understand this isn’t a game of “I’m right, you’re wrong.” There are many ways to make money in the market.

• Know what kind of investor you are and build a repeatable process around it.

• If you’re a fundamental investor, don’t think you’re smarter than everyone else and become envious of the MOMO crowd just because they’re making money. Their game isn’t your game.

• If you’re a FOMO investor, not really paying attention to time tested fundamental principles, don’t think “now is different” or mistake a bull market for investing genius. Beta has a funny way of making everyone feel like an expert.

•Expect cycles. For most, an awareness of the type of investor you really are, and maintaining the discipline it requires, will matter far more than your ability to predict the next cycle.

•If you’re a FOMO / MOMO investor, you better realize that a good deal of the stocks you own may not have a bottom when they fall.

•If you’re more of a fundamental investor, sometimes you’ll just have to be patient for longer than you’d like.