Weekly Update #8 - Week Ending 03/29/26
Studs, Duds & On Our Radar | Featuring $NSYS, $MUEL, $UG, and others.
A look into what happened in our Microcap Quality Index (MSMqi) platform last week
What you’ll see inside:
Special Highlights: New Cliff Notes, Research Journals, new multibaggers in our index, etc.
Studs, Duds, On Our Radar: News releases from stocks in the MSMqi using a research tool we built that curates press releases, earnings calls, SEC filings, Form 4s and Presentations in one integrated dashboard (more research items coming soon).
Info Arb Sheet Highlights: Information Arbitrage Tear Sheets on stocks in the MSMqi, using another tool we built to find info hiding in earnings calls, not mentioned in press releases.
Special Highlights
1) Updated Cliff Note: This is the second update we’ve published on this company. Over here, you can see the original Cliff Note released on October 7, 2024, and over here is the first update released on October 18, 2024. We published this new update for three key reasons:
The company just reported Q4 results, giving us a full year of data plus fresh management commentary.
A major government budget dropped with over C$100B in infrastructure and defense commitments, by far the most significant macro catalyst for this company’s industry in decades.
We just announced that we added the stock to our high-performing Spotlight Stock Index as the #14 selection.
Studs (Positive News)
1) MUEL | Stainless Steel Equipment Manufacturer
Quarterly Results
MUEL posted Q4 results with Q4 2025 sales of $94.1 million vs. $70.5 million in the prior year and Q4 2025 EPS of $14.73 vs. $11.89 in the prior year.
While MUEL is already up 55% since we added the stock to the MSMqi platform, it’s currently trading at a TTM P/E of 11.0x and a run-rate P/E of 8.0x. The stock looks cheap, and we think it can re-rate to a 15.0x P/E
Although the ER does not contain any commentary, the 2025 annual report does have some interesting commentary.
Firstly, MUEL is making substantial investments to meet rising demand, combining expansion of physical capacity with workforce development. They are investing $34.4M for a new 100,000-square-foot modular manufacturing facility in Springfield, along with expansions to component production and new specialized equipment.
At the same time, the company is strengthening its talent pipeline through a new on-site training school, a registered youth apprenticeship program in welding and grinding, and partnerships with local educational institutions.
There’s also a little info arbitrage in their annual report. We believe this is the first time they have included Data Centers over here.
