Many of our names need a full writeup and model update. Once earnings season is out of the way next week, we'll get to more of them. Here are brief updates on our MicroCap Candy names. We go through the published names, the new ones we haven't published yet, and some we have sourced from colleagues that our own work validates.
Published Coverage Names
Cantaloupe $CTLP - $5.97 is consolidating its big move from December of last year. It's still very unknown to most investors. The self-service theme in retail is robust, and there are only a few players. See our note on them for more. The current market cap is $430M, which is small relative to the size of the opportunity and the recurring nature of their revenues.
Arlo $ARLO - $5.22 is back! This "Broken Candy" name from 2020 performed so well that we removed it. The story is much like in our original post - Broken Candy: Arlo Technologies. The company reported a strong quarter, and the shares jumped 40% but remain too cheap, so it's back in the portfolio. There are some new developments there I am factoring into an updated PFV model that will determine if we want to keep this one long-term.
Vox Royalty $VOXR - $2.32 has done nothing since we published the note. I still like it and have received good feedback on the name. Although it's not part of our investment case, others have said that their NAV is much larger, perhaps a multiple or more of what is currently estimated.
In Process Names
Genasys $GNSS $3.41 continues to progress in building its SaaS business. Recent quarterly results were just okay, but they did land a mega-deal (for them) with Aramco on the enterprise side. It remains a unique and underappreciated story.
DocGo $DCGO - $8.96 is consolidating its recent gains. Investors are still new to this SPAC IPO, so perhaps a little leary of what the next report will bring. Everything I have seen so far increases my conviction about this name. Their pilot with Dollar General $DG has all the hallmarks of how some parts of healthcare delivery evolve.
Yext $YEXT - $8.99 is an old IPO name we hated in the past but dusted off when ChatGPT stirred investor interest in AI names. This one has legitimate exposure to the trend. New management is focused on what matters more to investors, so I see a long-term turnaround. The shares have moved up sharply but are still attractive. I bet some of their "old wall" coverage analysts will upgrade the shares soon.
Glass House $GLASF $3.11 is a large-scale producer of cannabis. This is not a sector I want a lot of exposure to, but I do like that they are the low-cost producer in the best US state market. A solid team is in place. I see this as a good place to get paid to wait for the day that further cannabis legalization happens.