Week in Review Features High-Conviction Model Portfolio Standouts [GeoWire Weekly No. 164]

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Highlights Run to One Model Portfolio: TTLTF return to growth in the cards? Too early to tell, but worth tracking. INXSF Management Briefing: Positive tone shift from INXSF’s CEO. Do we concur? Model Portfolio Performance Review: Bop #12 and Open Forum Focus Portfolios, up 38.62% and 41.58%. Model Portfolio Stocks Review ACFN: Achieved 104% return so far; Blowout Q3 EPS; Now leads the portfolio. PSIX: Currently up 64.2%; Strong Q3; Data center product impact awaited. CVALF: Long-term potential, despite possibility of occasional lumpy quarters. KLNG: Trading at a P/E of 8x; significant upside; Lunoy quarter risk. FTLF: When will MusclePharm acquisition contribute to growth? MSMqi: MS Microcap Quality Index delivers a return of 18.9% in November , spanking  the S&P 500, NASDAQ, Russell by double digits, including a 7% alpha over the iShares Microcap ETF during the month.

I hope you all had a great Thanksgiving holiday with your friends and family—or both. I had the chance to celebrate twice, while visiting my mom in the suburbs of Philadelphia. On Thursday, we had a turkey dinner at a close friend’s house, and then on Saturday, we made it over  to my brother’s house. His wife works as a nurse, so they had to celebrate on the weekend.

Overall, it was a slow week for news in our coverage universe. However, a few earnings crossed the wire, but we’re particularly paying attention to the earnings reports of two stocks which currently reside in our Run to $1 Model Portfolio and are discussed below.

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Run to One Model Portfolio

Total Telecom Corp (OOTC:TTLTF) (Remote Monitoring Products)

Once again, we’re paying particularly close attention to TTLTF.

This stock resides in our Run to One Model Portfolio and had actually topped out at a return of 175% at one point before sales and EPS growth faltered, causing the stock to give back all of its gains.

However, after several quarters of lackluster growth, the company reported strong growth for its first quarter of 2025,

The company is a developer and provider of remote monitoring, asset management and control products and services throughout North America, serving the environmental, fishery, forestry, military, off-road racing and recreational vehicle spaces. (Source: website)

We’ll be watching to see if the company can continue its momentum and jumpstart growth in  some of its newer products, so that it can regain price momentum.

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Management Briefing

Intouch Insight Ltd. (OTC:INXSF) (Cloud Infrastructure and SaaS Provider)

Speaking of Run to $1 stocks, on Monday, we hosted a Management Briefing update with INXSF to get some color on the company’s Q3 2024 earnings report that came out last Friday. We particularly wanted to understand if the change in tone from the CEO, expressed in the earnings press release and SEDAR (Canada) filings, meant that the company is finally in a position where it can sustain and grow profits.

The company provides customer experience management solutions to its customers, through on the ground site visits to company locations to do audits of company operations, and data analytics software solutions.

We’ve been waiting for this “inflection to improving profitability” moment for a while.  Even though the company has been growing revenue for the past several years, substantial profitability had yet to be realized.

INXSF Briefing Replay

We don’t want to get too excited yet, but we think this has the makings of being a very substantial multi-bagger if management’s assessment that the company can accelerate profitability will materialize.

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Portfolio Performance Overview

Buy on Pullback Model Portfolio #12

Because it was a slow week of news and updates from our team, I thought it’d be a good idea to provide   you some perspective on two of our best-performing model portfolios, or basically our highest-conviction model portfolios: the Buy on Pullback Model Portfolio #12 and the Open Forum Model Portfolio. As of today, their returns continue to comfortably outperform the major indexes.

A Word on the Portfolios Buy on Pullback The Buy on Pullback portfolios really are just designed to take advantage of inappropriate price dips in stock prices. We anticipate anywhere from 20% to 100% potential gains from the drop, depending on the situation. Sometimes you will see stocks from the other model portfolios end up on the Buy on Pullback portfolio if those opportunities arise. Open Forum Focus The Open Forum Model Portfolio is intended to include stocks that we think can go up at least 50% in the short term and also have long-term, multi-bagger potential.

A question I often get is, “What are some of these companies worth? What are their price targets?” That’s a tough question to answer, especially when I look at things with a longer-term lens. But I understand that some of you, particularly newer subscribers, would like to have that color, especially if you’re looking at some of these stocks that have gone up substantially and wondering what to do. So stay tuned, I’ll be working on some shorter-term price targets and have an update for you soon.

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Key Portfolio Highlights

Acorn Energy, Inc. (OTCQB:ACFN) (IoT Networking and Monitoring Solutions)

I wanted to make a notable mention here about ACFN, which we added to our Open Forum Focus Model Portfolio in September, and has already reached a peak return of 104.14% since its addition, and currently settles at 99.78% gains as of Friday. Having risen 44.23% in the month of November alone, it surpassed PSIX as the portfolio’s top=performing stock. Despite a nice short-term move from ACFN, I believe substantial additional upside can occur over the long run, driven by a growing recurring revenue base.

Power Solutions International, (OOTC:PSIX) (Generator Enclosure and Power Solutions Manufacturer)

PSIX, the only company that has a spot in both above-mentioned portfolios, reported a strong Q3, but we still don’t have any color on how much of the results include contributions from the company’s new data center product that makes covers or encasements for generators in data centers.

In the Open Forum Focus Portfolio, yhe stock previously peaked at a 83.85% return and is now up 64.2%. We’re assuming the financial numbers are only going to get better as revenues from the new product start to impact the company.

Covalon Technologies Ltd. (OTC:CVALF) (Advanced Wound Care and Infection Control Company)

Koil Energy Solutions, Inc. (OTCQB:KLNG) (Subsea Infrastructure Solutions)

Fitlife Brands, Inc. (NASDAQ:FTLF) (Health and Nutrition Consumer Products Company)

When I look at the Open Forum Model Portfolio, I would say two of my favorite stocks out of that portfolio right now are CVALF and KLNG. You might find this interesting because both companies can experience lumpy quarters from time to time, which could lead to temporary pullbacks in their stock prices. However, I’m making this statement from a long-term perspective. So, I think that 18 to 24 months from now, we’ll be looking at much higher prices.

CVALF is currently trading at a run-rate PE of 12x, well under a P/E of 25x that we think the company can eventually trade at.. You can see our recent comprehensive report on CVALF here.

KLNG is currently trading at a run-rate PE of 8x and presents yet another opportunity for significant appreciation in value over time, when taking into account our target P/E of 15x.

Finally, I can’t leave out FTLF as one of my favorite stocks right now. The company has seen strong success under the leadership of CEO Dayton Judd. I think he’s only getting started.

The company’s acquisition of MusclePharm out of bankruptcy a few quarters ago has already shown promise, and we’re anticipating some nice numbers from that acquisition in future quarters. Judd has a proven track record, and I think he’ll likely make another acquisition to help accelerate growth even further.

From the Q3 press release:

“…The Company continues to evaluate potential M&A opportunities with a specific focus on accretive, non-dilutive transactions.”

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MS Microcaps Quality Index (MSMqi)

I also wanted to bring up the performance of the MS Microcaps Quality Index (MSMqi), launched in February 2022, up 18.9% last month, better than the S&P 500’s and NASDAQ’s gains of 9.73% and 8.14%, respectively. The MSMqi also exceeded IShares Microcap Index, its closest comparable index, by 7% in November.

The average return across all 102 stocks added to the MSMqi since inception in February 2022 is currently 87.23%.

Remember, this index requires that stocks of a certain quality are only added when they also meet multi-bagger markers.

Since 2022, I’ve been saying that quality is back, and the performance of the MSMqi is showing that that is the case. It also shows that great companies that marinate over time just get better.

I think it’s a pretty incredible feat that the index was still able to beat the smaller-cap indexes by a big margin in November. We weren’t sure how the index was going to perform once the Russell and the microcap ETFs started humming. We’ll see how things go moving forward, but so far, I’m very happy with the outcome of the index, which also serves as a research funnel for some of the stocks that eventually make it to GeoInvesting’s model portfolios.

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