5i Research Weekly Rockets and Duds
This week's 5i Research Rockets 
and Duds 
TerraVest Industries Inc. TVK 'Tanks' for the profits, and tariffs? What tariffs? TerraVest rose 36% last week and hit an all-time high on news of a $546 million acquisition of Entrans International, a North American manufacturer of tank trailers and transportation solutions. TVK noted the deal is 'immediately accretive to earnings per share'. The stock got multiple broker upgrades and is one of only a few small cap stocks hitting new highs these days.
Who said Chinese stocks were uninvestable? Not shareholders of Diginex, certainly, whose shares rose 108% last week on the news of a strategic partnership, a dual listing on the Abu Dhabi Stock Market and a potential $250 million capital injection. The company provides environmental, social and governance reporting as well as offering advisory services. It only went public in the US in January, and shares have risen from their $4.10 IPO price to more than $100 in two months. The stock is very tightly held which can cause high volatility. We're pretty sure we will see this one in the 'duds' column later this year, and extreme caution is advised. 
'De-fying' the trend of horrible small cap performance, DeFi rose 46% last week, bringing its one-year gain to 561%. There was no specific news, and the stock had a horrible week the prior week so was set for a bounce. It's up 8% on the year now. Subsequent to the end of the week, the stock was added to the MVIS Global Digital Asset Equity Index and included in the Vaneck Digital Transformation ETF (DAPP). 
One of the worst things to happen to a biotech company, is, of course, the death of a patient. Sarepta, with a promising muscular dystrophy treatment, saw its shares decline 24% last week on news that a teenage patient developed acute liver failure following treatment with Sarepta's drug, Elevidys. Liver toxicity has long been a side effect of gene therapies. With over 800 patients treated, analysts were quick to defend Sarepta's therapeutic regimen, but that did not stop the stock's slide. 
VNET fell 25% last week on news of a $430 million convertible bond issue. The company, which makes carrier-neutral Internet data centre products and provides services, is still up 361% over the past year on the AI frenzy. It has been unprofitable since inception but the 13 analysts who rate it a "BUY" expect it to be profitable this year. Another Chinese company making the Rockets and Duds this week.
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Analysts of 5i Research responsible for this report do not have a financial or other interest in securities mentioned. The i2i Fund does not have a financial or other interest in securities mentioned.
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