Microcap Investing Cliff Notes

Microcap Investing Cliff Notes

Share this post

Microcap Investing Cliff Notes
Microcap Investing Cliff Notes
Cliff Note #121- Recurring model nearing an inflection point needed for valuation expansion

Cliff Note #121- Recurring model nearing an inflection point needed for valuation expansion

Multibagger Themes: Recurring Revenue Inflecting - Niche Markets - Increasing Wallet Share - Mission Critical Software

MS Microcaps LLC's avatar
MS Microcaps LLC
Aug 05, 2025
∙ Paid
1

Share this post

Microcap Investing Cliff Notes
Microcap Investing Cliff Notes
Cliff Note #121- Recurring model nearing an inflection point needed for valuation expansion
Share

We are adding a new stock to our index. It has been growing its revenue, posting a recovery off of COVID lows.

Part of the the upward revision in valuation multiples that we think will occur over time will come from the company’s recurring revenue growing to become a bigger part of overall revenue.

It appears that the company is nearing this inflection point as it more aggressively penetrates its core markets and layers on additional solutions to its software platform.

At an P/E of around 10x and a healthy insider ownership we see the stock as a perfect quality selection to add to our Microcap Quality [MultiBagger] Index…

Multibagger Themes: Recurring Revenue Inflecting- Niche Markets - Increasing Wallet Share - Mission Critical Software 

Please note, we first wrote about this company in a Sunday Journal Research Pipeline post published last month. You can read that here.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 MS Microcaps LLC
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share