Why We’re Confident in Adding This Medical Device Stock to Run to $1 Model Portfolio After Our Fireside Chat [GeoWire Weekly No. 172]

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Highlights New Run to $1 (R21) Model Portfolio Addition: We are adding a niche medical device company  to our Run to One (R21) Model Portfolio, which is defined as a portfolio of stocks trading under $1 that we believe have a good chance of eclipsing the $1 mark in the future. Under-the-Radar Growth Story: Management believes the company’s specialized products, rapid manufacturing capabilities, and disciplined financial execution give it a competitive edge in a traditionally slow-moving industry. Scaling Without Dilution: After achieving three consecutive profitable quarters and a 20% revenue increase, the company recently raised capital—not for survival, but to expand sales efforts without needing further dilution. Potential Multi-Bagger: With a product that has clear competitive advantages, expanding margins, and an attractive valuation, we believe significant upside exists, including being an acquisition target in the future.

Medical Device Stock Makes It To our Run to $1 Model Portfolio

Today, we are adding a new stock to our Run to One (R21) Model Portfolio. The company operates in a niche segment of the medical device industry, specializing in custom solutions designed for complex surgical procedures. Their products are used by leading trauma centers, academic hospitals, and specialized surgical teams across the U.S., with a focus on precision, durability, and reducing surgical complications. As was seen last week the company selected GeoInvesting as the platform for its inaugural investor presentation via a Fireside chat Skull Session Event we had with the CEO, COO and CFO on 2/29/2025. The leadership believes they have a business that is still under the radar, but we believe is poised for the kind of performance that could eventually stand out among our past high-performing R21 selections.

Historically, the R21 Model Portfolio has identified some of the best-performing stocks in our coverage, with a ~45% average return across 49 stocks during the portfolio’s 11-year tenure. It includes multiple R21 stocks with current returns in the 100s of percent, like Tss, Inc. (NASDAQ:TSSI) (7105%), ZYXI (2077%), Pharmchem, Inc. (OOTC:PCHM) (690%), and Paysign, Inc. (NASDAQ:PAYS) (443%). While we still need to do more research and channel checks on our new addition, some of the characteristics that led us to this new R21 mirror those of our past winners. As a reminder, the portfolio is composed of stocks trading under $1 that we believe have the potential to eventually surpass the one-dollar mark, with a likelihood to become multibaggers.

By the way, we love medical device companies. When you find them at the right time—especially those with recurring revenue models—there’s significant upside potential. Once these companies reach profitability, valuation multiples can expand dramatically.

We’ve been searching for another high-potential medical device company ever since our deep research on Koru Medical Systems, Inc. (NASDAQ:KRMD) led us to one of our most impressive multi-baggers.

We added KRMD to our Select Coverage Universe Model Portfolio at $0.24, and it eventually attained a price of $12.70, or a peak return of 5191.66%.

Led by a management team with deep industry experience, the company with whom we spoke has spent the last several years stabilizing its operations, improving profitability, and expanding its reach. The team collectively brings regulatory, financial, operational, and industry-specific expertise to the business.

While it has remained relatively small compared to its larger competitors, the executives believe their differentiated product, unique manufacturing capabilities, and ability to deliver products  quickly in a traditionally slow-moving industry give them a competitive edge. With a recent 20% revenue increase and three consecutive profitable quarters, management believes they are demonstrating the kind of operational discipline that is rare in this space—especially among companies at their stage of growth. 

The key challenge, as the team sees it, has not been demand, but rather expanding access. While the company has already established a presence in key medical centers across the U.S., management has identified a significant number of untapped markets that offer the opportunity for additional growth.

To support this, they recently raised capital—not for survival, but to scale their sales efforts. Moving forward, the company would be disappointed if it didn’t at least maintain revenue growth of at least 20% for the next few years, with expanding margins, without needing to raise additional capital. 

Said in another way, it looks like the company is in a good position to increase earnings per share at a much greater rate than revenue growth. This is a dynamic that could make them particularly attractive to potential acquirers in the industry, as they demonstrate growth.

Given the company’s disciplined financial management, its focus on execution, and its position within a specialized medical segment, we are adding it to our Run to One (R21) Model Portfolio.

The stock currently trades at a price to sales multiple of 2.8x, while the company carries zero debt on their balance sheet. We could easily see the price to sales multiple comfortably exceeding six times revenue if management demonstrates it can execute its business plan.

Below, please find select clips we chose to parse out of the full conversation, which you can find here.

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