29 Capital

High-conviction ideas, market analysis, and asymmetric opportunities.

Not investment advice.

[29 Capital @the29capital]

We believe $CPSH is one of the most misunderstood small-cap industrial names in the market.

Most investors see a company generating roughly $33M in annual revenue.

We see a company approaching an inflection point.

$CPSH

[29 Capital @the29capital]

Warren Buffett has said that after you buy a stock, you should be prepared for it to fall 50%.

Stay calm. Be patient.

If you have the cash, average down. If you can’t handle the swings, investing in stocks may not be the right game for you

$SIVE $CPSH $BLG $XFAB

[29 Capital @the29capital]

$BLG is an interesting one.

Current revenue ~A$5M. Management references a US$100M opportunity pipeline. If they convert just 25% of that into commercial revenue, the upside from current levels could be meaningful.

Eyeing a potential entry.

[29 Capital @the29capital]

We couldn’t resist.

Today we initiated a position in $XFAB.

Still holding our full position in $CPSH as well.

Two very different stories, but both sitting in areas where we see a favorable risk/reward setup.

[29 Capital @the29capital]

A few days ago everyone was telling us why $CPSH couldn’t get back to $8.

Now it’s $9.13 after hours.

Let’s have some fun:

Where do we close on Friday?

[29 Capital @the29capital]

Yesterday we said we’d like to see $CPSH back above $8 while it was trading around $6.70.

Today it’s $8.35 premarket. 🎯

A good reminder that markets can move a lot faster than most people expect.

Now let’s see if it can hold.

[29 Capital @the29capital]

Follow-up thought on $CPSH:

We’re less concerned with how quickly the stock gets back to $14 and more interested in where it stabilizes.

A close above $8 by the end of the week would be a constructive sign that the post-offering selling pressure has largely been absorbed.

[29 Capital @the29capital]

@Muskcode Difficult, not impossible.

What a day. After trading near $6, closing at $7.74 is exactly the kind of price action we’d want to see if the stock is in the process of finding its footing.

Let’s see if the momentum carries through the rest of the week.

$CPSH

[29 Capital @the29capital]

Follow-up thought on $CPSH:

We’re less concerned with how quickly the stock gets back to $14 and more interested in where it stabilizes.

A close above $8 by the end of the week would be a constructive sign that the post-offering selling pressure has largely been absorbed.

[29 Capital @the29capital]

@TwoStockPicks If we had to put a timeframe on our base case, we’d say by the end of this year.

A few meaningful contract wins can materially change revenue and earnings expectations.

That’s the type of thing that can drive a re-rating. We’re watching the business more than the calendar.

[29 Capital @the29capital]

@TwoStockPicks Base case is $20+

Bull case is $35-$40+

Remember, at a ~$128M market cap today, $CPSH is still a very small company.

If growth holds up and profitability improves, it doesn’t take much for the market to rerate it.

[29 Capital @the29capital]

7/ Our view: if CPSH continues executing, maintains margin expansion, and demonstrates that recent growth is repeatable, a $20-30 share price later this year is achievable.

Not because of hype.

Because the market may be forced to revalue the business.

[29 Capital @the29capital]

We believe $CPSH is one of the most misunderstood small-cap industrial names in the market.

Most investors see a company generating roughly $33M in annual revenue.

We see a company approaching an inflection point.

$CPSH

[29 Capital @the29capital]

6/ We think the market is valuing $CPSH based on what it is today.

We’re valuing it based on what it could look like if management continues executing and backlog converts into sustained revenue growth.

Those are two very different numbers.

[29 Capital @the29capital]

Opened at position in $CPSH. Looking for $20+ here in the near term.

[29 Capital @the29capital]

We continue to believe that $SIVEF $SIVE is on track for an $11.50 minimum target heading into its anticipated Nasdaq listing by October.

The setup here is hard to ignore.

[29 Capital @the29capital]

$SIVE $SIVEF quietly became a 5G backbone play: 56% revenue now comes from the US, up from 18% just two years ago. A 130-person Swedish chipmaker supplying mmWave tech to American infrastructure, sometimes the biggest disruptors look nothing like the giants.

[29 Capital @the29capital]

@machoman3314 @stonkmane69

[29 Capital @the29capital]

What's $SIVEF price the day after NASDAQ uplisting?