Two Small Cap Insider Stocks for 100X Gains

Money talks, as the old saying goes. That’s why when company insiders are throwing vast amounts of their own money into their own company’s stock, it screams “Buy!”

Those insiders know things about their company that Main Street investors aren’t privy to… like sales since the last quarterly report, new product releases or an upcoming FDA approval. If an insider likes where their company is headed, they’ll buy shares. And they have to tell you when they do – it’s the law.

If the people who know the company best are buying up shares left and right, it’s a sign that you should likely follow suit.

The two stocks in this report are prime examples of the sort of insider buying I look for. They’re small, but their insiders are spending big money to pick up as many shares of them as possible. Both of these companies just hit over 1,000% in growth and are decidedly undervalued. We have an opportunity with each of them to get in on the ground floor… but don’t wait. They won’t stay small for long.

Breeding a Better Future

The media likes to demonize genetically modified foods (GMOs), but selectively bred or “modified” plants are nothing new…

For example, bananas used to be filled with large seeds. Modern bananas are the result of generations of tampering with the fruit to get the modern, small-seed or seedless bananas you can find in the grocery store.

Carrots are another prime example. They used to come in several colors, but the orange strain, bred for the Dutch royal family to be their country’s national color, became the default carrot in most of the world.

Today, we selectively breed and modify plants so they produce more caloric yield per plant and are more resilient against diseases and pests. It’s what has allowed us to feed the planet’s ever-growing population.

The only problem with selective breeding and essentially editing the genes of plants is that it takes years. On average, it takes 16 years for new, more productive crops to be developed…

But with Cibus Inc.’s (Nasdaq: CBUS) incredible Rapid Trait Development System, or RTDS, new traits can be bred into crops in just three to five years. The company then sells the rights to those traits to seed companies and receives a royalty.

A royalty is a payment you receive repeatedly from owning a single asset or a single piece of work. You’ve likely heard it used in the context of the music industry. Ever wonder why every artist under the sun has a Christmas song that gets played on the radio every year between Thanksgiving and New Year’s Eve? The answer is royalties.

Once you own a royalty-producing asset, you never need to spend another penny. You can simply keep collecting profits – sometimes worth many times your original investment – for years or even decades.

As Warren Buffett once said…

“The best business is a royalty on the growth of others – requiring little capital itself.”

And that’s exactly what Cibus is doing with plant traits. Let me illustrate what I mean with an example from Cibus’ catalog of products…

Canola seed is primarily used for its oil. Farmers lose up to 40% of their canola yield during high winds and rainstorms because the canola pods can break open prematurely, dumping the seeds on the ground where machines can’t pick them up.

But using its gene editing technology, Cibus bred a canola plant that virtually eliminates pod shatter.

This gives farmers a higher yield without needing more land or fertilizer. But the company’s efforts don’t stop at seed oil. It’s in the process of developing rice that uses nutrients in the soil more efficiently, tolerates herbicides more effectively and is more resistant to disease, and soybeans that resist nematodes. It hopes to eventually expand to developing traits for corn and wheat.

Those five crops – rice, wheat, soybeans and corn, in particular – are the staple crops that nearly every country’s food infrastructure is based on. And with Cibus’ technology, farmers will be able to extract greater yields from the same amount of farmland and lose less to disease or pests without using more chemicals like herbicides and pesticides.

In all, the company expects it can leverage the traits developed by its RTDS system for royalties in excess of $2 billion per year. And that’s just factoring in rice, soybeans and canola…

Perhaps that’s why the company’s CEO, Rory B. Riggs, bought 517,107 shares for nearly $5.5 million in December 2023. He’s clearly expecting big things for Cibus in the near future. And Riggs hadn’t sold even a single one of those shares to date.  

It could also have something to do with the fact that the company saw considerable revenue growth in 2023. In the fourth quarter of the year, it saw revenue grow 2,526% year over year on the back of 1,031% growth in Q3 2023.  

In all, the company brought in $1.8 million in 2023, which may not sound like much, but it represents 1,057% growth over 2022.                   

And that revenue growth has continued into 2024. For the third quarter of last year, the most recently reported quarter, revenue surged 250% over Q3 2023.  The company also holds $28.8 million in cash to just $7.93 million in debt, which is a rarity in a market as overleveraged as ours.  

Revenue momentum is building quickly and based on Mr. Riggs hanging on to every share of his big purchase since the end of 2023, I think we can expect the final results for 2024 and the results throughout 2025 will make investors happy.  

If you buy in now, you can profit alongside Cibus’ CEO – and at just shy of $10 per share, the stock is an absolute bargain.  

***Action to Take***

Buy Cibus Inc. (Nasdaq: CBUS) at market. Set a 25% trailing stop to protect your principal and your profits.

Modern Solutions to Modern Problems

As AI technology has developed, it has gotten easier and easier for scammers and hackers to impersonate others. And this has created a whole host of new problems for individuals and businesses…

In the U.K., fraudsters used voice cloning to mimic a CEO… and stole $243,000 from his company.

Anybody with a computer can now produce “deepfakes” – videos that look and sound like a real person but are digitally produced.

AI can now analyze tens of thousands of passwords and hack into accounts faster than ever. And phishing scams, made more common by the shift to remote and hybrid work, now cost organizations $15 million annually on average.

It has driven the creation of a zero-trust internet, where security is the primary concern for anyone looking to operate on it either as an individual or as a business. And it’s an internet that authID Inc. (Nasdaq: AUID) has the solutions for.

The company provides a password-less authentication system that relies on biometrics rather than easily compromised or leaked passwords. As the company’s slogan advertises, “Know who is behind the device.” Users have to take a selfie to authenticate their login attempts.

And we need this authentication technology now more than ever. A full 84% of banks saw an account takeover in 2021 alone. One in three login attempts in that same year were suspected account takeover attempts…

But companies that adopted authID saw a 67% reduction in help desk requests in 2022.

You might be able to spoof someone’s voice using AI, use a program to figure out passwords, or write and send phishing emails, but authID needs a user to take a photo of themselves when they log in. Your face is your ID, and AI can’t fake that…

It’s created an incredible opportunity for us… as company after company partners with authID to implement biometric ID software. CyberArk, Microsoft, Verified Inc. and DataPro have all partnered with authID and, as a result, the company is growing fast…

In 2023, the company achieved sales growth of 1,200% – six times faster than Nvidia. In the third quarter of 2024, the most recently reported quarter, it grew its revenue by 473.6% over Q3 2023.  

And a cluster of insiders have purchased $1.57 million worth of shares over the past twelve months. These include Michael Thompson, a director, who bought $50,000 worth of shares in 2023 and added to that recently with a 12,254 share purchase in June 2024, and Stephen Garchik, who made a series of share purchases in late 2023 and all throughout 2024.  

With a share price in the single digits, this company is dirt cheap and gives you a chance to get in on the ground floor of a young tech company with extraordinary potential.

***Action to Take***

Buy authID Inc. (Nasdaq: AUID) at market. Set a 25% trailing stop to protect your principal and your profits.

Inside Opportunities

The companies in this report are healthy, have strong, competent management, and are decidedly undervalued. I have no doubt in my mind they’re going to rise in value…

And the insiders have put their chips in. They’ve got skin in the game, which signals to us that now is the time to act.

So start taking advantage of the single greatest buy indicator Main Street investors have access to, and profit alongside the company insiders who know their companies inside and out.