5i Research Weekly Rockets and Duds

Welcome to week five of 5i Research's market ROCKETS AND DUDS

Inari Medical Inc. $NARI : Inari is primarily known as the protector god of rice cultivation and is said to further prosperity and is therefore worshipped by merchants and farmers. Well, you got that right! Inari Medical, which makes minimally-invasive, novel, catheter-based mechanical thrombectomy devices, rose 59.3% this week as Stryker Corp. made a $80-per-share cash bid for the company, for a value of $4.6 billion. With healthcare stocks in general in panic mode over the incoming Trump administration's goals of cutting costs everywhere, perhaps Stryker is hoping some of that Inari prosperity would rub off on it during Trump's next term in office, and is willing to spend close to $5 billion to find out.  

FuboTV Inc. FUBO   Shareholders! Rejoice! FUBO shares soared 255% this week, as the company reached a deal with Disney to end litigation and combine with Hulu+Live TV, which will see Disney own 70% of the shares. Analysts called it a 'fairy tale outcome', which is about what one might expect with a Disney partnership.  But it wasn't all a fairy tale: Long term shareholders! CRY!! Despite the gains this week, FUBO shares are half the level they were in their October, 2020 IPO, and down 91% from their peak in December of that same year. Who said investors should hold for the long term? What were they thinking??

Vir Biotechnoogy Inc. $VIR  Vir Bio soared 61.3% last week after the early-stage company published results of its initial Phase I data for VIR-5818 in solid tumours and VIR-5500 in metastatic castration-resistant prostate cancer. Data showed early clinical response signals. VIR has $1.1 billion in cash to continue trials, but did have negative $467 million in cash flow in the last 12 months. There is nothing funny about cancer so no jokes here. 

D-Wave Quantum Inc. $QBTS  Well, as we predicted last week, a quantum computing stock again makes the Rockets and Duds list this week. Of course, this time they were all duds. The CEO of Nvidia in a speech at CES last week noted that quantum computers won't really be a thing for 20 to 30 years! Now, investors should be thinking long term, but that's too long term to keep the quantum speculative bubble continuing. D-Wave fell 36.9% this week as the bubble popped. That's what happens when no one really knows what they are buying anyway, and few have any idea what a quantum computer actually is. 

Mobileye Global Inc. $MBLY  Mobileye Global fell 27% this week even though the company also made a big presentation at the CES Show, But the presentation was 'lacking commercial progress updates'. At last year's show, the company announced a slate of new design wins, and thus investors were expecting more of the same this year. This is why investor expectations are often more important than company performance. If expectations are not met, stocks will fall. MobilEYE, perhaps, should have SEEN this one coming. 

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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.