This is goodbye...

The year is coming to an end and after two and a half years this blog is also coming to an end. The goal of the blog was to show that there are plenty of opportunities in microcap stocks, and I think that this has been demonstrated by now: of the roughly 25 stocks that I profiled here one stock went 12X, one 4X, and two 3X in this short time frame. I also showed that undervalued microcaps get noticed sooner or later by others, leading to 5 companies getting acquired at a nice premium. Of course not all of them were successful (yet), and some disappointed, that is also a fact in microcap land: sometimes success takes a lot longer than expected to arrive, and sometimes it doesn’t come at all. The positives, however, outweigh the negatives and when you can find a growing company early in its growth trajectory, returns can be spectacular when you get a combination of growth, margin expansion and multiple expansion, like we saw at Kraken Robotics.

I probably would have continued this blog for some more time, but I got the opportunity to put my theory into practice as of next year: I will be joining De Blick Capital, a small fund that doesn’t have size constraints, and can invest in the best microcaps and smallcaps available in the market. It would not be fair towards its clients if I kept giving my best ideas away here for free in the future, so I decided to now end this blog. If anyone wants to contact me in the future about opportunities, I can still be reached at geert@deblick.capital.

I will wrap up with my final thoughts on each of the companies and wish every reader good luck with their investments in the coming years, and I hope my blog has helped everybody a bit on their investment journey. Have a good and prosperous 2026!

M-Tron Industries

I had a meeting with M-Tron this month and it more or less confirmed my view of the company: it looks like they should have a couple more years of double digit growth ahead, fueled by defense demand, but also avionics as Boeing and Airbus ramp up production in the coming years. Margins have been a bit lower this year due to temporary factors and one-offs, but they should recover in the coming years, so I think they can not only grow sales but also profits by double digits in the coming years.

Access Newswire

The transition to a more recurring revenue model is progressing more slowly than I (and management) had hoped. Subscriber numbers are increasing, but slowly. This is annoying me, and other investors, and 2026 will probably be a very important year for Access: either they can show a successful increase in subscriber numbers and ARPU, or investors will lose their patience. I know ceo Brian Balbirnie is intelligent and highly motivated (and incentivized because he owns a big part of the shares) so I still think they have a good chance of succeeding, but I’m less sure of it now than a year ago.

Teqnion

Teqnion looked like one of the next successful Swedish serial acquirers in its early stages, but with the downturn in the Swedish economy, we found out that some of their companies were a lot more cyclical than we thought. It does look like the quality of acquired companies has improved since Daniel joined a couple of years ago, with more emphasis on looking for companies with some kind of moat and higher margins. As the economic recovery in Sweden progresses, we should therefore see results gradually improve again. The last quarter could have been the turning point, but it’s still too soon to tell. I still like their chances and think they could become a successful compounder in the next decade, but we’ll need to see some more confirmation in the coming quarters and years.

Kraken Robotics

Kraken Robotics has been the biggest success so far. When I first read about this company and saw that they were winning big tenders from NATO countries against multibillion dollar defense contractors, I realized that they were special. Growth has been impressive in the past few years, with their battery division being the biggest driver. It looks like they have the best batteries for underwater drones today, and with demand for underwater drones increasing massively, they could still have a long runway for growth ahead of them. After the big run up in the share price, a big piece of that growth is, however, already baked in to the share price, so if growth comes in a bit lower than expected in the coming years, the share price might disappoint.

TechPrecision

After struggling for several quarters, and a weird takeover attempt of a company twice their size, TechPrecision finally seems to be showing some improvement, but confirmation is needed in the coming quarters. Demand for the main products they make will only increase in the coming years, and as a sole supplier for most of them, their only job is to execute properly, and then results should really improve. The share price today mainly reflects their screw ups of the past, which means that there’s a lot of upside if they just do their job in the coming years, because then results should improve dramatically.

Dentalcorp

The acquisition of Dentalcorp has been approved by shareholders and by the Court, and will close in the first quarter of 2026. It will be the fifth company that gets acquired, and with each of the 5 companies acquired I was disappointed, because there was a lot more potential upside if they could have stayed listed longer and continued to grow. This will keep happening in the future, and the only comfort is that it usually happens at a nice premium, which gives you the opportunity to reinvest the profit in other interesting companies.

Sanara MedTech

The failure of THP was a disappointment, because I thought it was going to be another growth engine for the company in the coming years. Now expectations have been reset, and the company is now laser focused on growing its surgical business. Upside for the shares in the coming years will depend on whether they can keep growing at 15-20%, or if this will slow down towards 10%. Key things to watch will be if Biasurge can become a second success product next to CellerateRX, and what the new product OsStic will contribute after the product launch in Q1 2027.

MacFarlane Group

MacFarlane has suffered some headwinds in the past 2 years from a weak economic environment, which has now interrupted their usual pattern of steady growth. I think this is a temporary thing, and somewhere in 2026 (or 2027?), when economic growth improves, they should return to their normal pattern of steady annual growth of 5 to 10%. Timing is difficult to predict, but at the current share price investors’ expectations seem pretty low, so if they do return to their normal pattern, then returns from these levels could be attractive in the coming years.

JD Wetherspoon

JD Wetherspoon’s return to pre-COVID profit margins has been delayed by all the extra taxes and other measures the British government has taken in the past two years. But unless the British government comes up with a lot more measures that impact the profitability of companies in the coming years, the return to higher profit levels should come in the next few years. This is because JD Wetherspoon still is the best pub chain in Britain, with (by far) the lowest prices, that should continue to attract customers, and probably steal customers away from other pubs where prices are starting to reach levels where customers are beginning to get annoyed. Look at JD Wetherspoon as the Ryanair of pubs (without the annoying behavior): I would expect them to take more market share in the coming years from weaker competitors with higher prices, and that should then lead to higher profits in the coming years. The business model has proven its success in the past, and I don’t see that changing anytime soon.

CVS Group

Now that the CMA investigation is going to end in 2026 with no dramatic measures that would impact profitability in a major way, CVS can go back to ‘business as usual’ soon. I would expect them to continue to grow by further consolidating the sector, but with the British market now somewhat concentrated already and with more intense competition, I expect them to focus on Australia in the coming years for acquisitions. Once the CMA investigation is officially over, the valuation of CVS should go back to the levels they were at before the investigation started.

Property Franchise Group

TPFG should continue to grow organically in the coming years, with financial services becoming a bigger part of the sales. I still expect some M&A to give growth a further boost, but it will probably be smaller deals, because big targets like Belvoir are hardly available anymore. The big thing to look out for is if AI somehow disrupts the industry and alters the way homes are sold, because that is a potential threat for the coming years.

EVS

We know results at EVS will be lower this year because of the weaker dollar and the tariffs, but that should only be a temporary setback as 2026 is looking good: the two acquisitions announced this year will contribute fully next year, and big sports events like the Olympic Winter Games and the World Championship football will give extra rental income. I expect them to further grow in the years after that and achieve their BHAG (Big Hairy Audacious Goal) of reaching € 350 M in sales by 2030, because they seem to be taking market share from their competitors with superior products and a full ecosystem. The current valuation still doesn’t seem to reflect their successes of the past couple of years and their bright future.

Judges Scientific

Judges is another company like MacFarlane, where a successful track record got interrupted in the past two years. China pushing its companies to buy more locally will probably remain a headwind in the coming years (and could intensify further), and cuts in university budgets in the US could also remain a headwind in the coming years. This means that the future for Judges remains somewhat blurry, and it is more difficult now to estimate what their growth path will be in the coming years. Growth will be lower than in the past, but I think they should still be able to grow at 5 to 10% a year in the coming years, but I have to admit that this estimate could prove to be too optimistic when looking back in a few years, if those headwinds don’t decrease.

Idaho Strategic Resources

IDR has benefitted in the past two years from the rising gold price, and have used the cash that it produced wisely to invest in infrastructure and exploration to further increase gold production in the coming years. It will also be interesting to see in the coming years if and how they can monetize their rare earths assets, which could surprise investors in a positive way. I like management (one of the best in the industry) and their long term strategy, which makes me think that there’s a good chance that they will continue to grow successfully in the coming years, but they are of course dependent on the gold price: if the gold price were to collapse again for some reason in the coming years, then they would suffer too.

LGL Group

LGL has been an exercise in patience: they have been sitting on their cash pile for a long while now, and the Connectivity Partnership that they announced earlier this year is still a work in progress. They are taking their time, but I would expect it to start somewhere in 2026. When that happens they can start collecting management fees, and with the Gabelli’s experience and connections, I would expect them to be successful at finding target companies, and turn the Connectivity Partnership into a success in the coming years. Meanwhile the shares are still trading below cash, so downside seems rather low. I also think TPF will grow organically in the coming years, and through some acquisitions in adjacent fields, it could become a much bigger company five years from now. The main negative is that communication from management is limited, and valuation can remain low if this doesn’t improve in the future.

Fitlife Brands

In the coming year, the focus at Fitlife Brands will be on integrating the acquisition of Irwin Naturals. If that is successful, like with previous acquisitions, then that should give profits a boost. What will the future bring after that? I would expect them to then look out for other acquisition targets and continue to grow Fitlife. However, Dayton Judd has been invested in the company already for so long, that I wouldn’t be surprised if he planned an exit and sold the company in the coming years.

Kinepolis

The movie line up has been somewhat disappointing this year, so Kinepolis could see less visitors than in 2024, which is a headwind. Next year should see a better movie line up, and that could then give visitor numbers (and profits) a boost. I would also expect further M&A in the coming years, that can give their profits an extra boost, because as one of the best operators in the business Kinepolis can usually rather quickly lift profit margins at the companies they acquire by introducing their successful premiumization concepts in those movie theaters. The success of blockbuster movies however remains unpredictable and unexpected hits and flops can make results volatile. For the long term we need to keep an eye on total visitor numbers and the attractiveness of cinemas: I expect a modest annual decline, but Kinepolis can compensate that with cost reductions and price increases, but if the overall numbers of cinema visitors start to go down faster in the coming years, then Kinepolis will have a hard time to grow its business. Netflix’s attempt to buy Warner Bros is something to closely monitor: if it succeeds (and similar takeovers follow) and it means fewer movies coming to cinemas in the future, than that could become a bad evolution for Kinepolis.

Intermap Technologies

Intermap share price took a hit when they announced that the government of Indonesia had postponed its decision about the phase 2 project by 2 weeks. This also meant that 2025 guidance would not be met. In the big picture for Intermap those 2 weeks don’t make a big difference: the key thing for them is whether or not they are awarded the phase 2 contract. As the incumbent I still think they have a good chance of winning, but it is not a certainty. If they don’t win, then we can probably throw our projections for the big increases in sales and profits for the coming years out of the window, and the share price will react accordingly. If they do win, then that would confirm their position as the leader in their niche, and that would be the start of a couple of good years for the company.

Ashtead Technology

Not much news to report about Ashtead: sentiment for stocks in the oil & gas sector is still very negative, and Ashtead’s stock is still reflecting that. I still think that the slowdown of activity in the sector will only temporarily impact Ashtead’s results and that its business in a couple of years will be much bigger than today. The current period of low organic growth won’t last, but the exact timing of when it improves is difficult to predict. At the current valuation it looks like investors don’t believe that Ashtead will grow in the coming years, and I think that they are probably wrong.

McCoy Global

2026 will be an interesting year for McCoy: we should see the big contract tenders in the United Arab Emirates and the further adoption of their smart products. This should give their sales and margins a boost and this can continue in 2027 with even bigger contract tenders then. At the current valuation not much of that potential seems to be priced in.

Disclosures / Disclaimers: This blog is for informational and educational purposes only. This is not a solicitation to buy or sell any stock.. To be clear, I do not encourage or recommend for anyone to follow my lead on this or any other stocks. I am not a financial advisor. Please do your own due diligence.