Today I wanted to point out another stock highlighted by my friend, and my old boss, Maj Soueidan, the best and most obsessive micro-cap investor I personally know. Maj’s Substack is here and is worth reading.
The last call I highlighted from Maj is up about 10% since I wrote about it in April. Previously, in March, I had identified three other names Maj pointed out to me. One is now down about -19% since January of this year when it was first highlighted, one is up about +80% from the March article, and the third is up just about +100% as of the pre-market session this morning.
Today, Maj has dropped a new name for me to watch that I wanted to share with my subscribers. What caught my attention wasn’t that the company suddenly discovered some magical new product. In fact, the company and its product are “boring” and have been around for decades, but could benefit from the current AI build out boom, not unlike the “high risk, high reward” name we discussed days ago.
It was the possibility that the business itself may finally be reaching an inflection point after years of inconsistent execution. If operating leverage is finally kicking in at the same time secular demand is improving, earnings can change much faster than investors expect. Those are often the kinds of situations Maj likes spending time on—not because they’re guaranteed winners, but because the market can be slow to recognize a business that quietly starts working after years of disappointment.
And once a company changes direction, getting in a quarter or two ahead of everyone else noticing could lead to outsized gains. Of course, keep in mind, there is also the notable risk that a company at an inflection point doesn’t make it, which usually leads to stock sales, dilution, and underperformance.