Emerging Growth Recap: When the Irish IRS Isn’t Charging

Joel Anderson  |

Donald Trump made a visit to Mexico to talk with Enrique Peña Nieto, holding a press conference afterwards where he appeared downright docile and avoided most of the fiery rhetoric that had marked his campaign to that point. He then turned around and headed to Arizona, where he returned right back to said fiery rhetoric. Hillary Clinton, meanwhile, had to spend an entire week watching the polls tighten more than she might be comfortable with before the FBI opted to drop its report on the investigation into her email server on Friday afternoon. I think I know someone looking forward to the long weekend…

Emerging Growth Company News

Russell 2000 Performance: +13.58 (1.1%) to 1,251.83

Deals Recap:

Emerging Growth News

  • Shares in Karyopharm Therapeutics (KPTI) gained more than 30% on Tuesday and are up over 50% on the week after research firm Jefferies upgraded the stock to a buy. The company also announced on Tuesday that it has scheduled a conference call for next Tuesday to provide an overview of top-line results for trials of cancer drug selinexor. I’m gonna go out on a limb here and say people are thinking that call’s going to go well.
  • Rigel Pharmaceuticals (RIGL) popped more than 35% Tuesday after its drug Fostamatinib met the primary endpoint in its phase 3 clinical trial.
  • It was a pretty lousy week for fashion retailers with shares in Abercrombie and Fitch (ANF), G-III Apparel Group (GIII), and Genesco (GCO) were all in freefall following bad Q2 earnings reports. I guess people just don’t like clothes anymore, huh?
  • Defense contractor Vectrus (VEC) lost more than 20% on Thursday on news that it had missed out on an Army contract to provide logistics support in Kuwait and Qatar.
  • The Wall Street Journal published a piece about its review of documents on venture capital firm Andreesen Horowitz’s first three venture funds, providing a fascinating insight into the high-return world of venture capital as well as giving fuel to ongoing Silicon Valley rivalries. The three funds sported respective ROIs of 2.6, 2.5, and 1.7 with an internal rate of return of 42%, 25%, and 27%. All told, that meant that just the first fund was in the top 5% of funds as the Wall Street Journal had measured it. Boy, that makes me feel real bad for those poor investors in the other funds that ONLY had an IRR of 25%.
  • Dynavax Technologies (DVAX) saw shares nosedive over 30% on Friday after the FDA canceled a planned meeting of experts on the company’s hepatitis B vaccine, Hepislav-B.

Top Reads of the Week

The Week’s Major Market Action

S&P 500: +10.89 (0.5%) to 2,179.98

Nasdaq: +30.6 (0.59%) to 5,249.90

Major News Recap:

  • The Labor Department reported that the unemployment rate remained unchanged at 4.9% after America added just 151,000 jobs in August, well short of the anticipated 170,000. In market logic, though, this was good news, as it indicated that the Fed wouldn’t be raising rates in September, leading to the major indices starting the day up by over half a percent before retreating as the day wore on.
  • The European Union hit Apple (AAPL) with a $14.5 billion tax bill stating that Ireland’s absurdly low tax rate on the tech giant represented anti-competitive state aid. This proved an extremely unpopular move with Ireland, despite the fact that it means a $14.5 billion windfall for the nation. It also drew criticism from US Treasury Secretary Jack Lew that effectively boiled down to, “Hey, those are OUR taxes they’re evading.”
  • Things continued to heat up between Alphabet (GOOG) and Uber this week, as Uber ejected Alphabet senior executive David Drummond from Board Meetings. Hmm, I wonder if that had anything to do with Google launching its own ride-sharing service in San Francisco that same week? I dunno, hard to say.
  • Brazilian President Dilma Rousseff was officially ousted on Wednesday when the national senate voted to convict her of manipulating the federal budget by a vote of 61-20. Of course, many of those very Senators voting on her ouster are themselves under investigation for corruption, but let’s not sully something as pure as an impeachment with politics.
  • It was a rocky week for Elon Musk. Not only did a rather expensive Falcon rocket blow up on the launching pad, but filings for the proposed SolarCity (SCTY)Tesla (TSLA) merger showed that the financial situation at both companies is not at all great. It’s almost starting to look like there’s something to be said for trying to focus on just the one truly revolutionary business idea at a time instead of all of them simultaneously.

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