Old-Fashioned Stock-Picking for Modern Markets
September 7, 2025
From the Editor
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Hello boys and girls.
Small-cap stocks seem to be on the mend, and barring unforeseen economic catastrophe (which should surprise nobody if it actually happens… see Ray Dalio recent commentary), should continue to outperform through year-end and hopefully thereafter.
The theme for this month is Industrial Services as a cheap way to play the AI theme. “Digital Twin” technology is a means of recreating factories, pipelines, commercial buildings, oil refineries, steel mills, etc. on a digital plan using drones, heat sensors, laser scanners, robotics, and the like to monitor structures for breakage, leaks, theft, and any number of other “inefficiencies”. There are a good number of publicly traded companies with depressed stocks that seem to be past inflection points but still trading at very low EBITDA multiples, in part due to Trump tariff uncertainties, especially as regards Steel. Drone plays like Lightpath Technology (LPTH) and Maris-Tech (MTEK) have already moved due to defense related headlines and growth, but companies like Mistras Group (MG) and Team Inc. (TISI) are fairly pure industrial plays that (utilizing drones) are likely to benefit more than commensurately from any success in the Presidents “onshoring” plans. Both companies still send service people on ropes for inspections, but only where necessary, and we note that vaunted companies like Accenture and Deloitte are getting into the business because the potential market seems lucrative, and frankly, backed up a bit. Some might call it a cyclical low.
Consult your Value Line and look for more….
In Closing
*The Dinosaur* doesn’t roar, it rumbles quietly, patiently, confidently. When the tide turns—as it always does—those who held to discipline, valuation, and patience will be well rewarded.
Until next time,
—The Editor
