5i Research Weekly Rockets and Duds
This week's 5i Research Rockets 
and Duds 
Newsmax Inc. NMAX Extra! Extra! Read all about it. News is not dead! How would you have liked to own a stock last week that was up 350%? That would have dulled some of the market pain, for sure. Not only that, Newsmax, which publishes and produces editorial content, went public at $10/share last week and shares rose as high as $265 before settling at $45, for a 350% gain. At its peak, the stock was up 2,550%. A small share float of course can increase volatility, but the company is still a $7.6 billion company, and it certainly is 'news' that a large-ish company can move so much. But, it is that type of market. Greed will always be somewhere.
Extra! Extra! Read all about it. News is not dead! How would you have liked to own a stock last week that was up 350%? That would have dulled some of the market pain, for sure. Not only that, Newsmax, which publishes and produces editorial content, went public at $10/share last week and shares rose as high as $265 before settling at $45, for a 350% gain. At its peak, the stock was up 2,550%. A small share float of course can increase volatility, but the company is still a $7.6 billion company, and it certainly is 'news' that a large-ish company can move so much. But, it is that type of market. Greed will always be somewhere. 
Corcept Therapeutics Inc. CORT Corcept stock more than doubled last Monday, and settled the week up 36%. It released positive drug trials on its ovarian cancer treatment, showing improved progression-free survival in patients. When all else in the market fails, buying stocks in companies who keep people alive longer is always usually a good strategy.
Corcept stock more than doubled last Monday, and settled the week up 36%. It released positive drug trials on its ovarian cancer treatment, showing improved progression-free survival in patients. When all else in the market fails, buying stocks in companies who keep people alive longer is always usually a good strategy. 
Small Cap Growth Stocks IWO Ah, those poor small companies. After years of underperformance, in the shadow of the Mag 7, small companies experienced an 8% 'Trump Bump' after the election last year, and are now experiencing a 'Trump Dump' with tariff and other market fears hitting small companies hard. When fear is rampant, and it is certainly that right now, investors want nothing to do with small companies. This can of course create opportunities for investors going the other way, but for now small companies are untouchable by many investors. The small cap growth ETF symbol IWO fell more than 10% last week, and is now in an official bear market.
Ah, those poor small companies. After years of underperformance, in the shadow of the Mag 7, small companies experienced an 8% 'Trump Bump' after the election last year, and are now experiencing a 'Trump Dump' with tariff and other market fears hitting small companies hard. When fear is rampant, and it is certainly that right now, investors want nothing to do with small companies. This can of course create opportunities for investors going the other way, but for now small companies are untouchable by many investors. The small cap growth ETF symbol IWO fell more than 10% last week, and is now in an official bear market. 
Restoration Hardware RH The poster child for the negative impact of tariffs, Restoration shares plunged 40% last Thursday following 'Liberation Day'. Apparently, shifting production from China to Vietnam is not working out so well, with Vietnam hit by giant 46% tariffs. Restoration is now down 63% for the year so far. The CEO is adamant that the current tariff rate is not going to 'stick'. But investors don't want to stick around for a possible repeat of the early 2000s. Restoration was on the brink of bankruptcy in 2001 before it executed an amazing turnaround, until about a month ago.
The poster child for the negative impact of tariffs, Restoration shares plunged 40% last Thursday following 'Liberation Day'. Apparently, shifting production from China to Vietnam is not working out so well, with Vietnam hit by giant 46% tariffs. Restoration is now down 63% for the year so far. The CEO is adamant that the current tariff rate is not going to 'stick'. But investors don't want to stick around for a possible repeat of the early 2000s. Restoration was on the brink of bankruptcy in 2001 before it executed an amazing turnaround, until about a month ago. 
Vaxcyte Inc. PCVX Boy, it is a bad time to be a vaccine developer. Vaxcyte fell 54% last week as the FDA's top regulator for vaccines, Peter Marks, resigned, citing difficulties and 'lies' from his boss. The stock is down 61% for the year. When the next pandemic arrives, it might be best to just hide in your basement for a while. Frankly, considering the current state of the market, we think we are going to just head there now for about three and a half years.
Boy, it is a bad time to be a vaccine developer. Vaxcyte fell 54% last week as the FDA's top regulator for vaccines, Peter Marks, resigned, citing difficulties and 'lies' from his boss. The stock is down 61% for the year. When the next pandemic arrives, it might be best to just hide in your basement for a while. Frankly, considering the current state of the market, we think we are going to just head there now for about three and a half years. 
Take Care,
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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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