​This Week in Emerging Growth: Fear and Loathing in Cleveland

Joel Anderson  |

All eyes were on Cleveland this week as the Republican National Convention officially nominated Donald Trump as a candidate for President, but that didn’t mean the markets weren’t churning along in their own right during an up-and-down week of trading.

Major News Recap:

  • Tesla’s (TSLA) CEO Elon Musk released the company’s “Master Plan Part Deux” laying out an incredibly ambitious vision for autonomous cars and home energy systems.
  • Netflix (NFLX) posted solid revenues and profits in its Q2 earnings report, but news that it whiffed on hitting new subscriber goals sent the stock skidding.
  • AB InBev (BUD) got approval from U.S. Antitrust regulators to merge with SABMiller (SBMRY) after agreeing to sell off the Miller brand and keep competition open for smaller brewers, combining the two largest beer companies in the world into… the largest beer company in the world by a much wider margin.
  • What’s true for beer, though, appears not to be true for health insurance as the Justice Department sued to block two different mergers involving four of the largest health insurers in the United States: a merger between Humana (HUM) and Aetna (AET) and Anthem’s (ANTM) acquisition of Cigna (CI).

The Week’s Market Action

S&P 500: +13.01 - 0.6% to 2,175.03

Nasdaq: +70.57 – 1.4% to 5,100.16

Top-performing Stocks:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Mega-Cap

Microsoft (MSFT)

5.34% or $2.87 to $56.57

Mega-Cap

Exxon Mobil (XOM)

1.18% or $1.12 to $94.01

Large-Cap

VMWare (VMW)

15.27% or $9.48 to $71.55

Large-Cap

Netflix (NFLX)

12.7% or $12.50 to $85.89

Mid-Cap

Joy Global (JOY)

20.57% or $4.77 to $71.55

Mid-Cap

Skechers (SKX)

22.88% or $7.41 to $24.99

Emerging Growth Company News

The Russell 2000 was up and down this week but ultimately closed up over a half percent.

Russell 2000 Performance: +7.58 – 0.63%

Emerging Growth Stock Performance:

Top Performers

Company

Gain

Bottom Performers

Company

Loss

Small-Cap

Relypsa (RLYP)

55.15% or $11.40 to $32.07

Small-Cap

Essendant (ESND)

35.87% or $11.59 to $20.72

Micro-Cap

TCP International Holdings (TCPI)

84.4% or $0.92 to $2.01

Micro-Cap

Zafgen (ZFGN)

55.84% or $3.73 to $2.95


Deals Recap:

Emerging Growth News

  • Radio frequency technology company Parkervision (PRKR) spiked its value on Monday after settling a patent suit with Samsung (SSNLF) that would see Samsung pay for worldwide licensing of Parkervision’s technology. The company closed Friday just over $3.50 a share but spike to a high over $7 on Monday before closing a hair under $6 a share for a gain of just over 70%.
  • Specialty pharmaceutical company Evoke Pharma (EVOK) saw shares crater on Monday after news that its diabetic gastroparesis drug EVK-001 whiffed in its late-stage Phase III clinical trial. The company stock plummeted close to 75% on the news.
  • Fuel-cell maker Ballard Power Systems (BLDP) was gaining big on Monday on news that it was signing an agreement to build a fuel cell factory in South China, putting more manufacturing capacity close to the expanding market for fuel cell buses in China. Shares gained nearly 45% to crack $2 apiece on Monday on the news before returning some value over the course of the week.
  • Bioparhmaceutical company Zafgen saw shares shed about half their value on Wednesday after the company announced that it would be suspending the development of its lead treatment, obesity drug beloranid. The company, which focuses on treatments for obesity and weight loss, saw shares plunge from $6.75 apiece to under $3.25.
  • Workplace item distributor Essendant was in free-fall on Thursday after the company’s Q2 earnings report showed profits well below expectations and had to cut guidance as a result. Shares plunged over 35% on the day.
  • Biopharmaceutical company Relypsa popped more than 60% on the most simple of stories: it was purchased by Galenica Group for $1.53 billion. Relypsa’s hyperkalemia treatment Veltassa has FDA approval and recently gained value after a competing treatment from AstraZeneca (AZN) was shot down by the regulatory agency due to manufacturing problems.

Top Reads of the Week

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
CI Cigna Corporation 201.21 1.30 0.65 1,359,150 Trade
ANTM Anthem Inc. 293.73 1.03 0.35 1,368,517 Trade
TSLA Tesla Inc. 354.83 2.61 0.74 6,187,361 Trade
EVOK Evoke Pharma Inc. 1.23 -0.07 -5.38 362,824 Trade
TCPI TCP International Holdings Ltd n/a n/a n/a 0
VMW VMware Inc. Class A 165.70 -3.92 -2.31 798,083 Trade
HUM Humana Inc. 338.47 0.70 0.21 1,235,724 Trade
SKX Skechers U.S.A. Inc. 39.40 -0.51 -1.28 1,027,073 Trade
BLDP Ballard Power Systems Inc. 6.54 -0.23 -3.40 1,549,217 Trade
BUD Anheuser-Busch Inbev SA Sponsored ADR (Belgium) 78.57 0.14 0.18 647,270 Trade
ZFGN Zafgen Inc. 0.79 0.02 2.03 677,906 Trade
JOY Joy Global Inc. n/a n/a n/a 0 Trade
AZN Astrazeneca PLC 47.61 0.60 1.28 2,408,521 Trade
NFLX Netflix Inc. 311.69 6.53 2.14 7,489,523 Trade
RLYP Relypsa Inc. n/a n/a n/a 0 Trade
MSFT Microsoft Corporation 149.48 -0.14 -0.09 18,581,289 Trade
SBMRY SABMiller Plc (United Kingdom) ADR (Sponsored) n/a n/a n/a 0
SSNLF Samsung Electronics Co Ltd 2,210.00 0.00 0.00 0
XOM Exxon Mobil Corporation 69.67 1.64 2.41 14,080,983 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

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