In this quick read, you will see how a little-known chip stock turned into a +106% gain, thanks to a simple approach: buying cheap, high-quality businesses. This case study of Techpoint shows how following clear, backtested investment strategy can lead to big wins, even in overlooked areas of the market. You will learn why discipline beats guesswork, how takeover targets often start as undervalued gems, and how to avoid emotional mistakes by sticking to proven systems.
If you want faster, less stressful investing this is for you.
Estimated Reading Time: 6 minutes
CASE STUDY: How Our Quant Value Newsletter Delivered +106% With Techpoint — And Why Cheap, Quality Stocks Often Attract Takeovers
How One Undervalued Chip Maker Became a Big Win
In April 2024, our Quant Value Newsletter highlighted a small, overlooked semiconductor company: Techpoint, Inc.
At the time, Techpoint traded at rock-bottom valuations:
-
Price to Earnings: 9.1
-
Price to Free Cash Flow: 7.5
-
EV to EBIT: 5.4
-
EV to Free Cash Flow: 4.5
-
Dividend Yield: 5.7%
Its business? Designing mixed-signal chips for security and automotive cameras. A niche market with steady demand. Despite modest growth, the company’s financial health was sound, with healthy profits and insider ownership near 50%.
Why We Picked It
The Quant Value Newsletter uses strict, proven rules:
-
Cheap valuations with solid free cash flow.
-
Quality checks using the Piotroski F-Score and other filters.
-
Market timing filter to avoid buying when markets are falling.
Techpoint ticked every box. Plus, it paid a generous dividend, a rare find among small tech firms.
What Happened Next
From April 2024 to February 2025, the stock rose 104.7%, with an extra 3% in dividends. Total gain +106.2%.
This was because Techpoint was acquired by Taiwan’s ASMedia Technology. This is no coincidence. Undervalued, well-run companies often catch the eye of larger players looking for bargains - another reason our system focuses on cheap, quality stocks.
Key Takeaway
When you buy undervalued businesses with strong balance sheets, you stack the odds in your favour. Sometimes, the market rewards you slowly through dividends and re-ratings. Other times, it rewards you fast through acquisitions.
Either way, you win.
Why Discipline Beats Guesswork
This is one example of many. Our newsletter follows strict, backtested rules:
-
Never second-guess the model.
-
Use proven valuation screens.
-
Apply stop-losses and timing filters.
The result? You cut out emotion, follow a plan, and capture gains like this - even in uncertain markets.
Why Discipline Matters More Than Perfect Picks
Of course, we do not claim to get every pick right, no one does.
That is why we follow strict rules to protect your money. We only buy new stocks when the market is strong (above its 200-day moving average) and sell if a stock drops more than 20% from its high.
This keeps big losses small and lets our winners run.
And we have the data to prove this. As of the end of June 2025, ideas with gains over 20% outnumbered losses by 3.4 to 1. That means 260 winners versus only 76 losers. Discipline makes all the difference.
Ready to Take Control?
If you want clear, systematic picks like Techpoint - without hours of research - our Quant Value Newsletter is for you.
Start now. Stay disciplined.
Your next +100% could already be out there.
FREQUENTLY ASKED QUESTIONS
1. How do I know when a stock is truly undervalued, not just cheap for a reason?
Look at both price and quality. Techpoint was cheap (P/E of 9.1, EV/EBIT of 5.4), but it also had strong free cash flow, solid insider ownership, and passed our quality filters like the Piotroski F-Score. You want low price and high financial health.
2. Why do some undervalued stocks suddenly get bought out?
Because smart companies love bargains too. Larger firms often buy profitable but ignored businesses. Techpoint’s takeover was not luck - it had a strong balance sheet, steady cash flow, and was very undervalued. Those traits attract acquirers.
3. What if I invest and the market suddenly drops?
That is why the newsletter uses a market timing rule. We only buy when markets are above their 200-day average. This protects you from buying into a falling market. It is not about predicting crashes—it is about avoiding bad timing.
4. How do I stop emotions from ruining my investing?
Follow strict rules. Our system tells you exactly when to buy and when to sell. For example, we sell if a stock drops more than 20% from its peak. That stops small losses from becoming big ones. No guessing, no gut feelings.
5. I missed Techpoint. Is it too late for other wins like this?
No. The system finds opportunities like Techpoint every month. The key is staying consistent. One Techpoint can make up for many small losses. Discipline gives you the next +100% -not luck.
6. Do I need to research these stocks myself after I subscribe?
No. The heavy lifting is done for you. Each pick is screened and verified. You just follow the updates once a month. It takes less than 30 minutes. That is why busy investors love it.
7. What if I do not have much investing experience?
Perfect. In fact, it helps. Experienced investors often overthink. This system works best when you follow the rules without emotion. If you can follow a recipe, you can follow this system - and let the data do the work.
