In this Investor Insight session, Nicholas Cortellucci and I sat down with Kyle Adams, a fast-rising retail investor in the microcap space who’s been part of our Starting Five community before. I’ve followed Kyle’s development over the past couple of years and have really come to appreciate how far he’s come. He’s grounded, focused, and thoughtful in his research. He now runs his own Substack, KyleAdamsStocks, where his first feature was Permapipe ($PPIH) and his next will cover Legacy ($LGCY).
Kyle opened by sharing how his investing journey began while recovering from chronic pancreatitis. During his time away from work, he dove into Seeking Alpha and breakout investor groups, using that period to build the foundation of his now-disciplined investing process. Over time, he’s become much sharper at evaluating management credibility and company fundamentals—what he calls his improved “BS detector.”
He then walked us through his presentation on MPTI (Microwave Filter Company/Intricon). The company manufactures radio frequency filters, oscillators, and crystal resonators, which are mission-critical components used in radar, electronic warfare, satellite communications, and drone systems. Kyle tied MPTI’s relevance directly to macro trends, noting that global defense spending is on track to exceed $1 trillion, with programs like the “Golden Dome” and expanding UAV initiatives driving long-term demand for precision RF components.
MPTI’s backlog recently hit $61 million, up 35% year over year, supported by elite customers such as Lockheed Martin and Northrop Grumman. With gross margins above 45% and management guiding for 10% revenue growth, Kyle pointed out that the team’s track record of exceeding guidance makes that forecast look conservative. He also noted that the company’s focus on organic growth, coupled with disciplined M&A in complementary defense electronics niches, provides an additional runway for expansion.
Nicholas emphasized that MPTI fits perfectly into the type of story we look for at the Starting Five: companies that already execute well in their base business but have built-in optionality through new products or emerging defense segments like drones and SATCOM. I agreed, adding that management’s history of beating expectations and the coming ramp in U.S. defense spending by 2026 could turn that 10% baseline into a much higher growth trajectory.
We also discussed how Kyle’s investment lens has matured; he’s now looking for companies “in the right field at the right time” with growing backlogs and entrenched customer relationships. That same framework shaped his earlier Substack feature on Permapipe ($PPIH). Kyle recapped his recent call with management, describing a strong discussion with the new leadership team. He came away confident in their operational focus, relationship strength in the MENA region, and plans to enhance investor communication through quarterly calls and more consistent updates.
Permapipe’s biggest opportunities, as Kyle outlined, are tied to Saudi Aramco and Qatar infrastructure projects, while the company continues to build out exposure in North America and Canada. He noted that management downplayed short-term excitement around data centers, redirecting attention back to their core piping business, which is performing well and driving backlog growth. Nicholas and I both agreed that the story reflects the kind of steady industrial compounder that can quietly create value as regional infrastructure investment expands under Saudi Vision 2030 and future World Cup projects.
We closed the conversation by reaffirming how much Kyle’s approach aligns with the spirit of these sessions, identifying microcaps with strong backlogs, recurring customers, conservative management, and exposure to long-term growth themes. Nicholas and I both appreciated the clarity of his analysis and how he ties together operational data with broader macro trends. It was a sharp, insightful discussion that perfectly captured what the Starting Five Defense Conference is all about.
