My Top 10 Multibagger Ideas for H2 2026
Ten names I'm watching into the back half of the year - and how you can read every thesis in full.
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We’re nearly halfway through 2026, so I’m putting the ten ideas whose setups I like most right now in one place.
You can access all ten, plus every other company covered, in the Multibagger Research Portal. If you hold a paid subscription, log in with the same email and it’s all there.
🎁 Make sure you read until the end… 🎁
These aren’t new names. They’re the ones from the research already covered that I’m most drawn to heading into the second half of the year. Each gets a short briefing below - what the business is and why I like the idea - with a link to the full thesis.
Let’s get into it.
To be clear: these are simply my personal highest-conviction names at the moment - the ideas I like most. That’s it. Nothing here is investment advice or a recommendation to buy or sell anything. Do your own research.
Idea #1: Eton Pharmaceuticals (NASDAQ: ETON)
Eton is a serial acquirer of orphan drugs - therapies for rare diseases in markets too small for Big Pharma to bother with. It buys the rights, then does what the previous owners never did: actually commercialises them. The economics are exactly what you want: high gross margins, strong switching costs (once a paediatric patient is stable on a therapy, doctors don’t switch), reliable reimbursement, and serious operating leverage as a flat sales infrastructure scales across a growing portfolio. Disciplined, cash-funded M&A keeps reseeding the model, the business is now GAAP profitable, and margins are climbing toward management’s long-term target. A classic compounding setup hiding in a boring corner of healthcare - and the biggest products in the portfolio are still ahead.
Idea #2: D-BOX Technologies (TSX: DBO)
D-BOX makes the motion systems that turn an ordinary cinema seat into a premium experience - the picks-and-shovels play on premium-format cinema, without the capex of an IMAX or a Dolby screen. The model is a razor-and-blade annuity: every system an exhibitor installs throws off a royalty stream for years, so the installed base compounds on top of whatever the box office happens to do. Royalty revenue has been growing far faster than the underlying box office, operating leverage keeps lifting margins, and the balance sheet is a net-cash fortress with a buyback authorisation in hand. A recurring-revenue engine the market still treats like a hardware vendor.
Idea #3: Ashtead Technology (AIM: AT.)
Ashtead is the picks-and-shovels play on offshore energy - it owns the largest independent subsea equipment fleet in the industry and rents survey robotics, mechanical solutions, and asset-integrity gear to operators across oil & gas and renewables. It’s also a disciplined serial acquirer: strict IRR hurdles, effective multiples around 4x EBITDA after synergies and cross-selling, and a deep pipeline of fragmented bolt-on targets. High margins, ROIC north of 20%, falling leverage, and plenty of balance-sheet firepower for the next deals. The piece the market underrates, in my view, is the energy-security tailwind: with offshore spending back on every government’s agenda, organic growth has real operating leverage stacked on top of the M&A engine.
Idea #4: Acorn Energy (OTCQB: ACFN)
A microcap that sells remote monitoring for backup generators and cathodic protection - boring, essential infrastructure. The attraction is the razor-and-blade flywheel: hardware gets installed once, then throws off a high-margin monitoring annuity that compounds on top, with monitoring gross margins north of 90%. Management targets around 20% growth with roughly half of every incremental dollar dropping to operating income - that’s the operating leverage in a recurring-revenue model. The free option is a new infrastructure-solutions partnership management is quietly building dedicated reporting around: companies don’t do that for businesses they expect to stay small. Clean balance sheet, zero debt, a large NOL shielding future M&A, and management paid in equity that only works if the stock does. The near-term hardware comps look soft, but the recurring engine is intact - and patience is the asset here.
Idea #5: A monopoly-like authentication business mid-transformation
A monopoly-like authentication business - covert materials, banknote security, and anti-counterfeiting technology sold to central banks and governments on contracts that run 10-15 years. The structural shift in the thesis is the move from selling components for pennies to delivering complete systems worth millions, which lifts margins and lengthens the contract tail. Underneath sits a recurring base - covert materials, optical, gaming software, plus signed long-dated maintenance - compounding double digits a year as a structural floor, while a quiet gaming-security segment and a turnaround division both inflect. The big free option is a substrate qualification with a second central bank that could add meaningful recurring revenue if approved. The market still prices this as if the business-model transition never happened.
Idea #6: The only public US search-fund platform
The only public US vehicle for the search-fund model at scale - a permanent-capital serial acquirer that backs entrepreneurial CEOs to buy and grow small, asset-light, recurring-revenue service businesses (plumbing, cardiac monitoring, fractional CFO work, IT managed services). It pairs search-fund acquisition economics - an asset class with roughly 32% pooled IRRs over four decades - with holding-company permanence, so intrinsic value compounds per share rather than crystallising at exit. The flywheel is turning: the growth segment is now the majority of the business, the J-curve is resolving as acquisitions emerge from integration cost into profit, and portfolio operators are self-sourcing their own tuck-ins on top of the central pipeline - that’s the operating leverage showing up. Add high insider ownership and hundreds of millions in NOLs shielding earnings as it scales. The kicker: the market still classifies this as a legacy insurer rather than the serial-acquirer compounder it has become, and those trade at very different multiples.
Idea #7: A founder-led Italian industrial-services roll-up
A founder-led serial acquirer rolling up three structurally fragmented Italian industrial-services markets - logistics for field technicians, HVAC, and waste valorisation - where most operators are small, regional, family-owned businesses without the capital or systems to scale nationally. The roll-up arbitrage sits in HVAC: buy profitable regional operators at sensible multiples, integrate them onto one platform, and unlock purchasing scale and cross-selling competitors can’t match. The original logistics business adds operating leverage on a largely fixed cost base, where each new blue-chip contract drops a high share of marginal revenue to profit. Margins have expanded even through an acquisition-heavy phase - the exact opposite of what bears expect, and the cleanest signal of underlying quality - while net bank debt stays minimal and cash conversion runs high. The tell for me: a respected US fund recently became the first meaningful institutional anchor on the register, the kind of validation that often precedes broader discovery.
Idea #8: A German defence-comms specialist riding rearmament
A German specialist in audio and video communication systems for environments where comms failure costs lives - military, police, firefighting, aviation, hazardous industry. The moat is vertical integration: almost everything is designed and built in-house, which protects IP, secures the supply chain defence procurement demands, and locks in switching costs once the kit is embedded in a force’s helmets and radios. The business has quietly shifted from a lumpy, cyclical hardware maker into a largely contracted one - multi-year framework deals called off in annual lots, with recurring revenue above two-thirds of sales - right as Europe enters a decade-long rearmament cycle. Order intake and backlog sit at records, covering well over a year of run-rate revenue, with real operating leverage on a high-fixed-cost base. One honest caveat: net margins have run below where I’d underwritten them on security-related investment, so it’s worth confirming whether that’s a temporary build-out. The market still prices it like an old-school defence contractor while the backlog says otherwise.
Idea #9: An ingredient-brand specialty-materials platform
A specialty-materials company with a patented, heat-fused composite fabric that’s far stronger than steel by weight, ultralight, waterproof, heat-weldable, and recyclable. The model is the ingredient-brand playbook of Gore-Tex, Dyneema, and Scotchgard: the branded material gets built into someone else’s premium product, the end brand does the marketing, and the supplier collects a per-meter margin every time the product sells. The moat is structural switching cost - once a brand engineers a product around the material, swapping it means a costly, multi-quarter requalification, so each commercialised customer becomes a multi-year revenue annuity, protected by a long-dated patent estate. Margins already sit in the target range, the order book is growing fast, and a funded capacity expansion removes the one thing capping growth while opening industrial verticals - shipping, defence, aerospace - that aren’t in any current number. The more speculative end of the list - size it accordingly - but exactly the kind of asymmetric setup worth a small position.
Idea #10: A founder-led subsea connection-layer turnaround
A founder-led subsea microcap that supplies the connection layer of offshore energy - the umbilicals, flying leads, connectors, and distribution units that link a seabed production tree to the platform on the surface, plus the engineering and field services around them. Think of it as a picks-and-shovels play on deepwater development, with a recurring services layer building underneath the lumpier fixed-price product book. The story is a turnaround inflecting: a management team that delivered a multi-year growth plan ahead of schedule, record revenue, strong EBITDA growth, a swing to profit, and operating leverage building toward a mid-teens margin target. On top sits real optionality - pre-qualifications in Brazil’s concentrated subsea market, a first integrated-systems award, and a structural tailwind from rising subsea activity and the shift to tiebacks. It trades around 1x sales with no sell-side coverage. Real risks - OTC liquidity, project lumpiness, a disclosed internal-controls weakness - but the underlying setup stays asymmetric.
Where to Read Everything
That’s the ten. Reading all of these write-ups in Substack can get tricky - the archive is hard to navigate once it grows.
That’s exactly why I built the Multibagger Research Portal: log in with the same email as your paid subscription and every thesis is there, far easier to navigate and read through in one place.
And as a thank you for reading this far: I’m putting out a single discounted subscription. Just one. It’s a 25% discount, and it goes to whoever claims it first through the link below.
Thanks as always for your support - it’s the reason any of this exists.
Nico
Disclaimer: The Content does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Nothing in this newsletter should be construed as a personal recommendation or advice to buy, sell, or hold any investment or security. All Content is provided for general informational purposes only and should not be relied upon for making investment decisions. You should not make any investment decision based solely on the Content without first consulting with qualified financial advisors, conducting your own research, and considering your individual financial circumstances, investment objectives, and risk tolerance. To read our full disclaimer, click here.