https://www.livewiremarkets.com/wires/6-small-stocks-with-big-fut...

https://www.livewiremarkets.com/wires/6-small-stocks-with-big-futures

6 unique microcaps under the radar (for now)

Harley Grosser, Capital H Management

I’ll give you two. One that I’ve written about on Livewire is 5GN. This is a telco and data centre play.

I like the business model of owning acquiring select parts of the telco infrastructure, cross selling services to the existing client base, selectively deploying CAPEX to improve service delivery (and reduce OPEX), and extracting synergies by running services over your own network or hosted in your own data centres.

The strategy works well as a microcap because 1) it can be built from the ground up as a public company, so you can get on board early and 2) the model scales and returns on capital can be sustained or improved as the company grows and makes larger acquisitions (there is a limit of course, but we are not there yet).

We bought into 5GN when it was around a $20m market cap and today it is close to $100m. I think, with ongoing execution, that they are just getting started.