​This Week in Emerging Growth: FINALLY, No More Going to Two Stores for My Solar Panels and Electric Cars!

Joel Anderson  |


The Trump transition team continues amid rumors of disarray, announcing that it was selecting Alabama Senator Jeff Sessions for Attorney General, Kansas Rep. Mike Pompeo to head the CIA, and retired Gen. Michael Flynn for his national security advisor, a trio that would tend to make the term “hardliners” feel woefully inadequate.

Meanwhile in the business world, it was a stellar week for small-cap stocks, with big gains in industries perceived to be favored by the incoming Trump administration.

Russell 2000 This Week: +32.69 (2.55%) to 1,315.64

S&P 500 Same Period: +17.6 (0.81%) to 2,181.9

Top Reads of the Week

Deals Recap:

  • Developer of selenium-based cross-browser software Sauce Labs raised $70 million in a funding round led by Centerview Capital. The round was undisclosed, so I guess that’s the secret sauce.
  • Cloud-based health information technology company CareCloud raised $31.5 million in a series C round led by Blue Cloud Ventures.
  • Personalized marketing company xAd raised $42.5 million in a series E round led by Eminence Capital.
  • Technician service management solutions provider ServiceMax was acquired by GE Digital for $915 million.
  • Hardware and software solutions company Mentor Graphics was acquired by Siemens AG (SIEGY) for $4.5 billion.
  • Make-up company Too Faced Cosmetics was acquired by Estee Lauder (EL) for $1.45 billion. Hope their lawyers pored over that deal.
  • Maker of audio products and electronic systems Harman International Industries was acquired by Samsung Electronics (SSNLF) for $8 billion.
  • Clothing company American Apparel (APPCQ) was acquired by Gildan (GIL) for $66 million. Maybe they can finally afford to feed those models.
  • Biotechnology company Magenta Therapeutics raised $48.5 million in a series A round led by Atlas Ventures.
  • Maker of environmentally friendly heat pumps Phononic Devices raised $40 million in a series E round led by UBS Wealth Management.
  • Chinese used car trading service Souche raised $100 million in a series C round led by Ant Financial.
  • Software company Bit Stew Systems was acquired by General Electric (GE) for $153 million. For GE’s sake, I hope they don’t roux the day they made this deal.
  • IT consulting company Prevalent Networks raised $60 million in a series C round led by Insight Venture Partners.
  • Maker of implanted medical devices Insprice Medical Systems raised $38 million in a series F round led by Amzak Capital Management.

Emerging Growth News:

  • Messaging app SnapChat (SNAP) officially filed for its IPO on Tuesday, setting in motion an IPO expected to value the company at up to $25 billion by March.
  • Oft-volatile shipping stocks spent the week being, well, volatile. The belief that a Trump administration would juice inflation and fiscal stimulus had shipping stocks soaring this week (despite Trump’s anti-trade stance, oddly enough). That is, until they weren’t. The rising tide carried ships like Danaos Corporation (DAC), Seaenergy Maritime Holdings (SHIP), Globus Maritime (GLBS), Navios Maritime Acquisition Corporation (NNA), Star Bulk Carriers (SBLK), and Diana Shipping (DSX) higher for most of the week… then they all sank. Maybe no company better represented the trend more than DryShips (DRYS), the beleaguered Greek shipping stock that has already done a 1:25, 1:4, and 1:15 stock split this year. It was trading at about $4.50 a share as of the day after the election, gained more than 1,500% (not a typo) in a week to just under $100, and has sent plunged back down to around $12.
  • Snack food company Amplify Snack Brands (BETR) saw shares plunge almost 30% this week after the company’s Q3 earnings report fell short of expectations. Guess the numbers ended up popping investors’ bubble.
  • The International Energy Agency (IEA) put out its World Energy Outlook for 2016 that included the projection that the United States could achieve independence from oil from outside North America by 2040… or sooner if it truly embraces green energy and commits to making a bigger change. Awkward...
  • Crowdfunding site Indiegogo announced on Wednesday that it would be offering the option for equity crowdfunding under the JOBS Act, making it the first big rewards crowdfunding site to foray into the space. That said, I imagine that, if you ask nicely, you can still get a T-shirt, too.
  • The planned merger between Tesla (TSLA) and SolarCity (SCTY) was officially approved on Thursday, paving the way for the dubious combination of Elon Musk’s two largest companies into the hybrid electric car-lithium ion battery-home solar company the markets have just been screaming for. Need a lot of big ideas? Here’s the company for you! Need cash? Maaaaaybe keep looking.
  • Clothing retailer Stein Mart (SMRT) saw shares drop by more than 20% after the company’s Q3 report showed larger-than-expected losses. Why? Well, I’ll still hold that it’s too many disappointed shoppers discovering that the store does not, in fact, sell a wide variety of beer steins, but mot of the market research keeps indicating that I'm wrong and no one likes beer steins as much as I do. Whatever.

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
GE General Electric Company 10.04 -0.02 -0.20 34,604,701 Trade
DAC Danaos Corporation 8.51 0.45 5.58 2,992 Trade
TSLA Tesla Inc. 258.18 4.64 1.83 7,004,069 Trade
DRYS DryShips Inc. 4.09 0.07 1.74 139,075 Trade
SBLK Star Bulk Carriers Corp. 10.65 -0.26 -2.38 650,125 Trade
GLBS Globus Maritime Limited 2.37 -0.08 -3.27 90,762 Trade
SMRT Stein Mart Inc. 0.86 0.01 1.29 99,071 Trade
EL Estee Lauder Companies Inc. (The) 190.83 0.59 0.31 1,229,396 Trade
SCTY SolarCity Corporation n/a n/a n/a 0 Trade
SHIP Seanergy Maritime Holdings Corp 0.64 -0.03 -4.78 518,791 Trade
GIL Gildan Activewear Inc. Class A Sub. Vot. 39.42 -0.74 -1.84 399,277 Trade
DSX Diana Shipping inc. 3.72 0.11 3.05 168,785 Trade
SIEGY Siemens AG (Germany) ADR (Sponsored) 55.85 -0.23 -0.41 114,689
APPCQ American Apparel Inc n/a n/a n/a 0
SSNLF Samsung Electronics Co Ltd 2,210.00 0.00 0.00 0
NNA Navios Maritime Acquisition Corporation 6.50 0.10 1.56 8,843 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

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