Chris Forte’s Thoughts to Start the Day

Posted on April 4, 2022 by Scott Shuda

April 4, 2022: Just to clear things up, Elon Musk has not taken a stake in Breakout Investors. The rumors are not true, but if he wants to talk we will listen. We’re just not sure he can keep up with our energy and work ethic. . . Jamie Dimon has addressed the “Russian Challenge.” Two of his main points are to increase the military budget and implement a Marshall Plan for energy security at home and in Europe. I couldn’t agree more.

 

A few good plays on these themes in the CF Room include drone and missile defense play RADA Electronics (RADA) and nuclear energy service company GSE Systems (GVP). RADA has run from $9 in February to a high of $16 but has pulled back to $14. We expected RADA to have significant growth in 2022 and 2023 even before worldwide defense budgets expanded. GVP, with a market cap of only $42M is coming back to life after the pandemic slammed the brakes on their service business with energy providers, particularly nuclear. Many countries are doing a U turn on their commitment to nuclear as it has finally become apparent that nuclear is the best way to solve the World’s increasing needs for energy. GVP hit a new 52w high last week. On the Feed you’ll find fantastic notes on GVP’s latest conference call from Paul Rieutort. Look for “GSE Systems Reports Fourth Quarter.”

 

Aaron Warwick has a new article on Seeking Alpha, “Quipt Convertible Debenture Hedging Provides An Incredible Opportunity.” . . . One of the most commented on companies on the Feed is Sanara MedTech (SMTI), first introduced by Scott Shuda along with excellent insights by Neil Cataldi. Just out this morning, Sanara MedTech has entered into a definitive agreement and plan of merger with Precision Healing . . . Also just out from our adtech favorite, Perion Networks (PERI): “Perion rises 8% on 1Q22 prelim revenue above the consensus.” Prelim 1Q22 revenue of $125M (+39%Y/Y) above consensus, Adj. EBITDA +150% Y/Y, EBITDA margin of 42% vs 25% a year ago. The company’s cookieless targeting platform contributed to the good results. . . SNL’s Michael Che, “Will Smith said love will make you do crazy things. You know what else with make you do crazy things? Crazy.” . . . Good luck to all.

Join us on the Breakout Investor Platform (BIP) to discuss QIPT, RADA, GVP and SMTI and other companies where our community shares research and analysis. We seek to be Ahead of the Curve in identifying great little companies with catalysts that could make them the next Breakout Investment. Membership and most of the content on BIP is free.

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