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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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TransMedics Group Inc. (TMDX)
Q: Hi! Could you explain the sharp dip in price for TMDX recently?
Also, I am down almost 20% HPS.A and keep waiting for it to get better. It tries, then falls, rinse and repeat. What's going on here? Is there good reason to be patient?
Thanks so much.
Also, I am down almost 20% HPS.A and keep waiting for it to get better. It tries, then falls, rinse and repeat. What's going on here? Is there good reason to be patient?
Thanks so much.
5i Research Answer:
Small/mid cap stocks with big embedded gains (one year 123%) typically get hit hard in a market sell off. TMDX's 5% decline this week was higher than average but not out of line with some decliners. There has been no relevant company news. HPS is somewhat similar (up 100% over the past year). It is much smaller and thus more volatile. It had a nice run from $108 to $125+ in August and has now checked back with the market sell off. It announced a capex increase in late August (comments posted) but there has been no other news. It remains cheap, and attractive. None of these two concern us much, at least in the context of the small/mid cap market and typical market gyrations when recession fears surface.