Multibagger Selection: DeepSeek's picks
DeepSeek picked UMAC, MOB, CAPR, ONDS, RZLV with a twelve-month thesis, measured against SPY at each checkpoint.
| Experiment | Multibagger Selection |
|---|---|
| Model | DeepSeek |
| Prompt version | multibagger-selection-v1 |
| Asked | |
| Horizon | 12-month |
| Benchmark | SPY |
| Status | Being measured |
The picks
| Rank | Symbol | Return | Confidence | vs benchmark | Called right |
|---|---|---|---|---|---|
| 1 | UMAC | — | 72% | — | — |
| 2 | MOB | — | 70% | — | — |
| 3 | CAPR | — | 68% | — | — |
| 4 | ONDS | — | 66% | — | — |
| 5 | RZLV | — | 62% | — | — |
Checkpoints
| Checkpoint | Portfolio return | Return vs SPY | Best peak multiple | Picks reaching 2x |
|---|---|---|---|---|
| 1 week | -5.87% | -7.77% | 1.21x | 0 |
The model's market view
The small-cap environment in late September 2026 is characterised by a bifurcated market: defence-technology and AI-infrastructure names are attracting strong investor attention and capital, while many biotech and consumer-facing microcaps remain depressed and capital-constrained. The Federal Reserve's rate path remains uncertain, with October hike expectations elevated, which is compressing valuations for unprofitable companies. Within this environment, the strongest multibagger candidates are those that combine a verified, near-term catalyst with an existing fundamental inflection—revenue acceleration, margin expansion, or a credible path to free-cash-flow positivity—rather than relying solely on narrative. Defence-tech companies with NDAA-compliant products and US government programs of record offer the most visible revenue ramps. AI-focused data and infrastructure companies with contracted backlog and improving unit economics are second. Biotech names with binary regulatory catalysts carry the highest upside but also the highest risk of permanent capital loss. Liquidity and balance-sheet survivability are critical filters in the current environment.
Why each pick
UMAC
Unusual Machines is a US-based manufacturer of NDAA-compliant drone components, including flight controllers, cameras, video transmitters, motors, and goggles. The company is at the centre of the US defence drone supercycle. Revenue surged 687% year-over-year in Q2 2026 to $16.7 million, following 296% year-over-year growth in Q1 2026 to $8.1 million, demonstrating a genuine revenue acceleration. Enterprise/B2B revenue reached $7.3 million in Q1 from $34,030 a year earlier, showing the shift from a legacy retail business to high-volume defence procurement. The company has received a steady cadence of orders, including a $12.8 million contract, a $1.6 million order, and an $800,000 order from Red Cat, building backlog and visibility into 2026. The US government's Drone Dominance Gauntlet program is expected to order roughly 60,000 drones in the second half of 2026 through a $1.1 billion program, positioning UMAC as a component supplier to multiple drone manufacturers. The stock trades at a premium valuation, with a market cap of approximately $1.19 billion against consensus 2026 revenue estimates of around $28 million, but the revenue trajectory and contracted backlog support a forward re-rating if execution continues.
MOB
Mobilicom is a small Israeli company that provides cybersecure data links, mesh networking gear, and cybersecurity software to Tier-1 defence drone manufacturers. The company has secured a position on a US Department of War Program of Record valued at $250 million over five years through a Tier-1 customer, representing a major inflection point. The company is transitioning from design wins to initial production and ramp-stage programs, with revenue expected to grow from $3.4 million in 2025 to approximately $8.4-10 million in 2026, and $25 million in 2027. Gross margins are expanding from approximately 53% on hardware to 65%+ as higher-margin cybersecurity software becomes a larger mix. The balance sheet is strong with approximately $19 million in cash and no debt, and management has stated it does not need to raise capital, minimising dilution risk. The company is a pick-and-shovel play on the defence drone supercycle, with a sticky, long-duration revenue profile once designed into a platform.
CAPR
Capricor Therapeutics is a clinical-stage biotech developing cell therapies for Duchenne muscular dystrophy (DMD). The company's lead candidate, deramiocel, has a PDUFA target action date of November 22, 2026, following the FDA's acceptance of a major amendment to its BLA. The HOPE-3 Phase 3 study met its primary endpoint in December 2025, demonstrating a statistically significant benefit in upper-limb function, with approximately 54% reduction in the decline of upper-limb function versus placebo. The FDA advisory committee voted 3-9 against supporting efficacy for DMD cardiomyopathy, but the company has refined its indication to focus on upper-limb function, the study's successful primary endpoint. The stock has surged 144% over the past month but remains down 67.5% year-to-date, creating a potential asymmetric setup ahead of the PDUFA decision. This is a binary regulatory catalyst with high upside potential and high risk of permanent capital loss.
ONDS
Ondas Holdings is a diversified technology company focused on private wireless networks, drone solutions, and autonomous systems for defence and industrial applications. The company has secured $10 million in contracts for its autonomous systems over the past year and has raised full-year 2026 guidance to $1.95-2.0 billion. However, the market cap of approximately $4.38 billion against $1.95-2.0 billion in revenue implies a price-to-sales ratio of roughly 2.2x, which is reasonable for a high-growth defence-tech company. The company is benefiting from the defence drone supercycle and the growing demand for private wireless networks in industrial and government applications. Ondas has a market cap near the upper bound of the $200 million to $5 billion range, which slightly reduces its multibagger capacity.
RZLV
Rezolve AI is an AI-powered commerce platform that enables retailers to engage customers through conversational AI and mobile commerce. The company has grown revenue from a very small base to $171.27 million over the trailing twelve months, with quarterly revenue growth of 1,970% year-over-year. However, the company is deeply unprofitable, with an operating margin of -97.93% and a net loss of $183.04 million. The balance sheet is weak, with $33.15 million in cash against $171.12 million in total debt, and a current ratio of 0.49. The company has diluted shareholders significantly, with shares outstanding increasing 72.94% in one year. The stock is down 64.37% over the past 52 weeks and trades near its 52-week low. The thesis here is a turnaround: if the company can slow its cash burn, improve margins, and demonstrate a credible path to profitability, the stock could re-rate sharply from depressed levels. However, the risks are substantial.
Other models on the same run
| Model | Picks |
|---|---|
| Muse Spark 1.1 | NVTS, SOUN, EOSE, ACHR, SMR |
| Gemini 3 Pro | MGNI, CWCO, AMPL, SG, QNST |
| Grok 4.5 | RCAT, AEVA, BKSY, SLN, SERV |
| Claude Sonnet 5.5 | PRE, ETON, CNXC, NVTS, UEC |
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