Turnarounds, Breakouts, and Bullish Setups Heading into Q2 2025 [GeoWire Weekly No. 179]
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Highlights
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Last week was packed with updates across several stocks in our microcap coverage universe, showcasing a mix of momentum, business shifts, and bullish setups heading into Q2 2025.
| At the end of this post, you can see all of the individual emails we sent throughout the week that the following summary covers. You can also view them in individual email posts at our premium portal under the daily bulletin sub menu item. under the Research main menu item. |
Turnaround at KLYG?
Cranial implant company Kelyniam Global, Inc. (OOTC:KLYG) continued its turnaround story by reporting full-year revenue growth of 27% to $3.3 million and a full-year profit of $211k vs a loss of $365k, although Q4 revenues dipped slightly, with a slight loss —likely due to minor FDA compliance costs, now resolved.
With the proceeds from a recent dilutive raise and previous management failed execution strategies behind them, attention turns to a more aggressive marketing push in 2025 and a new product.
Please view our 1/29/2025 Fireside Chat with company management, their first ever investor-facing discussion.
LFVN Eyes Global Expansion
Meanwhile, Lifevantage Corporation (NASDAQ:LFVN) (lifestyle, weight management, supplements) announced the international rollout of its GLP-1 System to Asia and Canada.
This marks a significant step in their metabolic health initiative and could drive upside not yet factored into analyst expectations. Still, we’re not getting too excited about this yet, since 75% of the company’s revenue comes from North America.
TGEN’s Data Center Push
Tecogen Inc (OTC:TGEN) (natural gas, cogeneration equipment ) delivered a Q4 loss, in line with our expectations, but it was management’s bullish tone and their strengthening ties to the data center industry that caught our attention.
A key contract win with a Connecticut data center validated their data center growth goals, and the newly inked Vertiv partnership has the potential to open new doors.
A couple weeks ago, I made a quick phone call to Dan Kunze, our first Geoinvesting intern from 2006 to 2008. He has carved out a nice reputation as being an expert in various areas of technology, particularly with AI related trends. When I told him about the Vertiv partnership, he poured some mildly warm water on the deal, telling me I first need to find out if the contract is going to require TGEN to do most of the marketing to potential clients or if Vertiv is going to be taking a lead. To that point, you may have noticed that an earnings call participant asked that particular question during the live Q4 call. And the answer was clear, Vertiv will be the lead horse.
Question from Alex Blanton
“Now what is the strategy that’s going to be pursued with them? Are they going to market your product with their customers, is that what’s going to happen?”
Abinand Rangesh, CEO TGEN
“Correct. I mean they have a broader marketing strategy, right, when it comes to any product, whether it’s theirs or ours. I mean they have their existing channels that they put information out. They do various learning opportunities, plus they have relationships already with a large number of the bigger colocation owners. So they have various different ways that they approach that market.
Some of the details of that are confidential, so I can’t get into that. But that’s because they have a lot of these existing relationships, they’re in a very strong position to just present this, knowing which customers are building AI, which ones have power constraints, that kind of thing.”
Another particular item that’s worth understanding is the palpability of TGEN’s potential data center contract pipeline. It’s one thing to have a pipeline of potential customers, and it’s another to actually be fairly certain that you’re going to get orders from that pipeline.
The earnings call may have provided a hint around this topic in that the CEO mentioned that data centers are waiting to actually sign leases with potential customers before they pull the trigger on ordering some of TGEN’s solutions.
“The other data center projects we’re working on are still moving through the procurement process. The customers are working on signing up AI tenants before placing equipment purchases. Some of these projects have also been scaled up significantly in size because of market demand.”
The earnings call also disclosed that the size of the Connecticut data center deal was about $13 million and on the small side of contract sizes. To put that into perspective, the company’s breakeven level is about $7 to $8 million per quarter.
We don’t want to get too excited just yet, but there could be the possibility that TGEN becomes an even bigger opportunity than Tss, Inc. (NASDAQ:TSSI) because it is addressing power, the biggest obstacle to data center growth—an obstacle that even the CEO of TSSI continually points out.
The great thing about the Connecticut deal was that we may not have to wait for the Vertiv partnership to catalyze before the market gets excited about TGEN being a serious player in the data center market, especially if they get more of these deals, even before the Vertiv partnership comes through.
“We also expect to see more data center activity from the projects we have been developing ourselves. Margins are also expanding across the board, especially in the service group, thereby increasing our recurring cash flow stream. Finally, our other market segments are looking strong, so I’m very optimistic about what the future brings”.
We’re actually quite astonished that the market isn’t giving TGEN’s stock more props, which might be due to the weak market conditions we are in right now.
To get some perspectives on the strength of the datacenter industry through the positioning of infrastructure company Sterling Infrastructure, Inc. (NASDAQ:STRL), you can read our 3/2/2025 weekly GeoWire issue.
KLNG Contract Momentum
Koil Energy Solutions, Inc. (OTCQB:KLNG) (subsea products/services) also made headlines with a large contract win, reinforcing comments from their MS Microcaps Fireside Chat about reducing lumpiness through trying to secure at least one or two large contracts per quarter..
A Few Earnings Highlights: AATC, MMS
We took a quick dive into Q4 earnings reports from Autoscope Technologies Corporat (OTC:AATC) (traffic management hardware software) and Maison Solutions Inc. (NASDAQ:MSS) (specialty grocery retailer).
AATC’s progress in AI-powered traffic solutions suggests that its pivot from radar to video-based tech is gaining traction, while MSS posted a strong beat on both revenue and earnings.
MSS
The guidance does imply a sequentially down quarter and that the company’s balance sheet is not in great shape.
AATC
We adjusted the quarters to reflect a 25% tax rate as both quarters were non-standard. This quarter was taxed at near 50%, last year had tax gain using loss carry forwards. Our analysis indicates the company will be paying taxes moving forward.
We are tracking Autoscope Technologies Corporat (OTC:AATC) because it operates in the intelligent traffic systems sector, a market expected to grow due to increasing demand for road safety and traffic management solutions. The company has shifted its focus to video-based detection technology after selling its radar business, which could improve efficiency and profitability. With governments allocating funds to modernize transportation infrastructure, AATC may benefit from increased adoption of its products.
Financially, AATC has shown improved performance, reporting higher sales and earnings per share. It maintains a stable balance sheet and provides consistent dividends, making it a potential source of returns while awaiting further growth. The company’s partnership with Econolite expands its market reach, and its efforts to develop advanced technology suggest it could gain market share as outdated traffic systems are replaced. Monitoring AATC allows us to evaluate whether its recent changes translate into sustained revenue and EPS growth.
Furthermore, the company’s expansion into AI-driven solutions adds another compelling reason to track AATC’s progress. The expansion translates into:
- New AI Product Lineups: AATC has launched Autoscope IntelliSight and Autoscope Analytics, integrating AI and machine learning for advanced traffic detection and analysis.
- Stronger Market Position: These innovations enhance real-time data collection, support Vision Zero safety initiatives, and improve decision-making for traffic management.
CPHRF (CPH.TO) Share Buyback and Growth
Cipher Pharmaceuticals, Inc. (OTC:CPHRF) (CPH.TO) (specialty pharmaceuticals) showed solid Q4 revenue growth thanks to its Natroba acquisition, though growth of its legacy pharmaceutical products was flat, as the company has to absorb some higher expenses that came with the Natroba acquisition, most notably, salesforce expenses.
Importantly, the company approved a share repurchase program, signaling confidence in its long-term prospects despite near-term EPS stagnation.
BOF Finalizes Key Deal
Branchout Food Inc. (NASDAQ:BOF) (plant-based dehydrated fruit and vegetable snacks; powders) finalized a deal previously announced as an LOI, which looks like it could nearly double annual revenue—an important piece of their industrial ingredient growth story and a driver behind management’s optimism about 2025 growth potential.
Conference Recap & Insights
We also wrapped up our breakdown of the MS Microcaps Virtual Conference. For those who missed it, we’ve compiled top takeaways, company profiles, and key clips so you can catch up efficiently. Sahil Khetpal of TIKR.com also joined us for an informative walkthrough of their investment research platform—well worth checking out.
Contributor UCLE Turnaround Pitch
Finally, contributor Todd Schuh shared a detailed turnaround pitch on Us Nuclear Corp. (OOTC:UCLE), a microcap aiming for profitability in 2025 and 50%+ growth through facility consolidation and possible acquisitions. Of course, we have to ask ourselves how the company is going to finance those acquisitions with a stock price of $0.06.
Todd laid out a multi-scenario roadmap showing how the company could transition from years of underperformance to sustained profitability. With Chamberlain Capital now advising the company, Todd posits that UCLE has begun executing key operational improvements, including consolidating manufacturing operations to reduce overhead by $60K–$80K per month.
That move alone, Todd persuades, could swing the company into the black by mid-2025.
Todd featured a layered upside potential: a forecasted 50% growth rate in both 2025 and 2026, a potential acquisition that could double revenue, and even a possible reverse merger in 2026. While financing risks and historical reporting delays are notable concerns, Todd makes a strong case that the company is serious about turning things around.
His most bullish case projects a share price as high as $2.53 by 2026, assuming all cylinders start firing. It’s a speculative name, but the analysis highlights why UCLE might be worth a closer look for investors who can stomach the risk.
~ Maj Soueidan, Co-founder, GeoInvesting
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The post Turnarounds, Breakouts, and Bullish Setups Heading into Q2 2025 [GeoWire Weekly No. 179] appeared first on GeoInvesting.
Source: https://geoinvesting.com/turnarounds-breakouts-and-bullish-setups-heading-into-q2-2025-geowire-weekly-no-179/
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