Spotlight Stocks #12 & #13 Selections
Short-Term and Long-Term MultiBagger factors have arrived
To view the performance dashboard for all Spotlight Stocks, visit this link. To see all of our Spotlight posts, go here.
We are adding our 12th and 13th stocks to our Spotlight Stock Index. Both stocks embody a growth plus traditional value investing set-up. However, the growth part of the equation has not been found by the market.
When investors do realize what is going on, we believe that the price to earnings and enterprise value to sales multiples will start expanding at the same time each of the company’s’ growth rates begin to expand. I like to call this the “double whammy multi-bagger factor.” You just can’t beat this powerful combination.
By the way, for the convenience of new subscribers, here are the stats, as of the end of August 2025, for the Spotlight Stock Index to prove that quality matters (launched in April 2024):
11 Spotlight Stock selections.
Average Return: 48%
High Return: 68%
One stock eclipsing 300% (FEIM).
Eight more stocks reaching at least a 40% return. (ASYS, FTLF, FACO, KEQU, TATT, PPIH CPH.TO HRX.TO)
Diversification across 8 industries.
One stock was acquired at a 41.67% premium a few weeks after it was added to the index. (HRX.TO)
Anyways, back to Spotlight Stocks 12 and 13:
Here’s a summary of some of the MultiBagger factors we wrote about in each respective Cliff Note:
Stock 12
The rationale for adding this stock to the Spotlight Stock Index is mainly because the company’s backlog has finally gotten to a point where we have strong visibility, setting the stage for consistent sales and earnings per share growth for several quarters. This could also lead to an upward revision in the stock’s valuation multiples. Furthermore, due to past volatility in financial results, the stock does not currently screen well. This will allow vigilant investors to accumulate shares before the crowd finds the stock.
Stock 13
This stock is trading near its cash value per share and is about to experience an acceleration in its growth due to a focus on aggressively marketing its business to business (B2B) software services. Additionally, the company is finding new markets for its software, which may actually have better economics than the applications it’s currently serving. The company is a clear leader in its target markets and is run by a CEO who has proven that he is all in on maximizing shareholder value. Finally, the company has aggressively repurchased stock in the open market and private transactions over the last several years.
Please note that the Spotlight Index is only available for paying members of this Substack.
For those newer to our community, the Spotlight Index is a growing list of stocks we pull from our microcap quality index platform (well over 100 Stocks now) when we believe they check enough boxes on our:
✅10-Point Quality Factor Checklist and our
✅Growing Multibagger Checklist
These are names where we see favorable short-term return potential alongside long-term compounding upside.
I really want to stress that we’re doing our best to not just choose Spotlights that have exceptional short term return potential, but also have long-term staying power.
We launched our Spotlight Index to help you navigate our growing list of stocks that occupy our indexes, (with the accompanying research Cliff Notes).
Our team has performed extensive due diligence on the next two stocks we are adding to the Spotlight Index. Not only have we published research Cliff Notes on both these companies, but I have also recorded interviews with both CEOs to understand the MultiBagger factors their company’s are hitting, along with their associated risks.
See Spotlight Stocks 12 and 13, below. And as always, thanks for your support.