​Stocks that Somehow Survived Wall Street’s Horrible 2016 Start

Henry Truc |

The first week of 2016 is coming to a close, and for most investors probably, the weekend probably couldn’t come soon enough. The S&P 500 and Dow Jones are staring at over 5% drops this week, while the Nasdaq and the Russell 2000 are on pace for drops of over 6%. It’s the market’s worst start to a year on record, and one of the worst weeks since the steep drop in August.

While the drop was pretty much across the board, there were quite a number of stocks that moved against the grain and did quite well for investors this week. One key group that did really well among the top performers were small-cap gold stocks. Here’s a look at this group, as well as a few other names that managed to avoid this week’s pullback.

Bounce of the Harmony Gold Mining Co. and Gold Stocks

While it’s pulled back considerably on Friday, Harmony Gold Mining Company Limited (HMY) is still sitting on a 39% jump this week, extending a one-month run that has seen its share price nearly double. A promising catalyst for the South African miner is the collapsing rand, which helps the company keep its operation costs low since it receives its revenue in dollars. Shares of HMY are trading around $1.29 a share with a market cap $545 million. It should be noted that it hasn’t been all sunshine and rainbows for Harmony. Like much of the sector, shares have been decimated in recent years, but it’s certainly having a good start to 2016.

Other notable performers in the gold mining space this week include IAMGOLD Corp. (IAG), up nearly 18.3%; Primero Mining Corp. (PPP), up almost 12.7%; Yamana Gold, Inc. (AUY), Lake Shore Gold Corp. (LSG), Seabridge Gold, Inc. (SA), Sibanye Gold Limited (SBGL) and Alamos Gold, Inc. (AGI) are all up over 5% despite enduring Friday’s pullback.

Much of the group’s rally can be attributed to the rise in gold price, which was spurred by a number of global headwinds this week. Whether that trend will continue from here remains to be seen.

MakeMyTrip Goes for a Ride

Unlike most companies covered in this week’s top performers, MakeMyTrip (MMYT) actually extended its run on Friday. Since news of a $180 million investment into the company by CTrip, India’s leading travel company has soared nearly 30% to $22 per share with a market cap of $928 million. MakeMyTrip had quite a turbulent year in 2015 in which its share fell as much as 50% before trending higher from its low August low.

Milacron’s a Bit of a Headscratcher

On the surface, it’s not immediately clear why industrial plastics company Milacron Holdings Corp. (MCRN) jumped about 15% this week. The company, which IPO’d in late June, had been trending consistently lower since its peak in September before spiking off the lows to start the year. In mid-December, Credit Suisse cut its price target on Milacron to $17 from $18, and maintained a “neutral” rating on the stock. Shares of Milacron are trading around $14 at a market cap of $965 million.

Nautilus Does, In Fact, Lift

Fitness equipment maker Nautilus, Inc. (NLS) popped almost 16% this week on news that it was acquiring Octane Fitness from North Castle Partners. Nautilus is best known for making the Bowflex, and Octane specializes in ellipticals. Aerobic, meet anaerobic. It’s a nice two-pronged approach for consumers looking for a total workout. Shares of Nautilus have settled lower since the news first hit, currently trading around $19 a share with a market cap of about $600 million.

Hooker Furniture Seals the Deal on Home Meridian

Keeping with the theme of consumer goods acquisition that the market liked, Hooker Furniture’s (HOFT) acquisition of Home Meridian resulted in a 16% jump this week. The deal is expected to double Hooker’s size, launching it into one of the top five players in the U.S. furniture market. On Thursday, BB&T Capital upgraded its rating on Hooker Furniture from Hold to Buy with a price target of $33.00. Shares are currently trading at around $29 with a market cap just north of $300 million.

Dynavax Pops on Hepatitis B Trial

It’s been a pretty good week for biotech company Dynavax Technologies Corporation (DVAX), which has seen its shares jump nearly 11% this week after the company reported positive Phase 3 results on HEPLISAV-B, the company’s hepatitis B vaccine. The company said HEPLISAV beat GlaxoSmithKline's (GSK) Engerix-B in the clinical trial results. After a near 10% drop on Friday, shares of Dynavax are trading a bit below $27 a share with a market cap of just around $1 billion.

Henry Truc is the editor of Equities.com. You can follow him here and on Twitter @henrytruc.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
LSG Lake Shore Gold Corp n/a n/a n/a 0
GSK GlaxoSmithKline PLC 37.70 0.27 0.72 3,910,786
MMYT MakeMyTrip Limited 24.60 0.50 2.07 291,287
IAG Iamgold Corporation 3.86 0.18 4.89 9,047,035
DVAX Dynavax Technologies Corporation 4.70 0.35 8.05 1,487,495
AGI Alamos Gold Inc. Class A 6.26 0.13 2.12 2,001,412
PPP Primero Mining Corp. New (Canada) 0.93 0.02 2.01 1,685,287
AUY Yamana Gold Inc. (Canada) 3.03 0.12 4.12 11,726,302
SA Seabridge Gold 10.10 0.35 3.59 597,081
MCRN Milacron Holdings Corp. 17.18 0.43 2.57 308,850
HMY Harmony Gold Mining Company Limited 2.29 0.00 0.00 4,447,057
HOFT Hooker Furniture Corporation 28.30 -0.25 -0.88 49,985
SBGL Sibanye Gold Ltd ADR (Sponsored) 8.47 0.13 1.56 2,072,903

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