Take your pick, Macro or Micro, this was a week full of impactful news. It was also a great week for Tailwinds as our stories around our stocks seem to be coming together in real time. This drove a nice 5% return in the portfolio. A return that looks even better as the return of trade war fears brought about a -2% loss in the Russell 2000 for the week.
Speaking of trade wars, an interesting tidbit of information on them turned the market around on Friday. It turns out the new tariffs are on items shipped as of Friday. Meaning, there’s a couple of weeks before those goods are in US ports; weeks during which a trade agreement could be reached. Alternatively, we are likely to see ongoing consternation over trade during that time if no settlement can be found.
Looking more micro, many in our TW universe (and other stocks we watch more casually) had news or earnings this last week. This week’s newsletter covers the highlights and the lowlights of those stocks over the last seven days.
Here’s what we found meaningful, ranked alphabetically in reverse order, just to share the love with WISA which is the last in our universe alphabetically every week…
Summit Technologies (WISA): A very bullish report on their technology and its integration with LG came out in Germany which prompted a rally in the stock. This was, expectedly, met with selling as financing looms. We expect this trend to reverse upon the completion of said fundraising, which is imminent.
Vuzix (VUZI) and Kopin (KOPN): two stocks we used to cover and keep our eye on for the simple reason that the Augmented Reality industry has amazing potential. We bring them up now, however, as both reported earnings last week. The growth that we are looking for continues to be elusive and we remain on the sidelines until some signs of rapid adoption begin to emerge.
Resonant (RESN): reported a weak number, but rhetoric around 5G is stronger than ever. The Company expects to sign a partner during Q2 and this could come with a large upfront fee. If/when this happens, RESN will likely be seen as a leader in 5G, a space that is going to capture immense investment dollars over the next couple years.
MTBC (MTBC): Reported strong numbers and maintained guidance. We just sit here awaiting the next acquisition, which, when it happens, could push them over $100M in revenue and cause a significant revaluation of the stock. Every day that goes by brings us one day closer, right?
ImageWare (IWSY): reported earnings, which were as expected. The stock made a huge move earlier in the year and has slowly given a large chunk of it back. Will the adoption of their platform happen? Potentially huge, totally lacking visibility…
HyreCar (HYRE): reported in-line with preannounced numbers. Suggest you read our longer piece on it here.
Harrow Health (HROW): a very bullish earnings call. Once the litigation with Allergan is over, which could be very soon, we expect HROW stock to resume the uptrend it had late last year. A great growth story.
ETON (ETON): this recent spinoff from Harrow is poised to have very large success with the FDA and investors. We care because HROW still owns 3 million shares. If you don’t know the story, listen to the earnings call on their site; it’s compelling.
Dyadic (DYAI): announced two more partnerships and earnings. The pipeline of opportunities is very large and the stock, despite its strength, is still inexpensive. Future looking very bright here.
ChromaDex (CDXC): earnings are strong, business is expanding globally, and they just raised $10M in a convert from high profile investors. This stock is not cheap, but never will be. As long as they execute, that won’t matter.
ChemBio (CEMI): good news out of Brazil has moved the stock higher. Still expecting an approval in the US which should take shares up another notch.
Catasys (CATS): where to begin? They announced another expansion with a major health plan, a partnership with Lyft, and the ability to treat loneliness. Oh yeah, their earnings beat expectations and the call was incredibly bullish.
Aqua Metals (AQMS): did another financing at yet lower levels. I continue to believe that, until proven otherwise, their facility will not be able to operate at positive gross margins.Tailwinds' Disclaimers & Disclosures: For a full list of disclaimers and disclosures, please visit http://