📊 Lawsuits, Loans & LiDAR: Small-Caps in the Spotlight

Good Morning Investors,

This week, small-cap action was anything but quiet. Webull surged 51% with no press release in sight, while Innoviz $INVZ ( ▲ 0.76% ) scored another win, this time with a new strategic partnership pushing its stock up.

But not all stories were growth-fueled glory. 3D Systems $DDD ( ▼ 6.8% ) nosedived amid a wave of investor lawsuits and a major restructuring. Wolfspeed $WOLF ( ▲ 3.08% ) and Critical Metals $CRML ( ▲ 14.22% ) also slipped, the latter despite locking in a $120M loan for a rare earth project in Greenland.

The lesson? Even in choppy markets, momentum favors innovation, but red tape and risky financing can flip sentiment fast.

Matthias Schneider
Editor at Analytica Investor

↑ ↓ 1-day change
Market data: Yesterday’s market close

The small-cap sector witnessed mixed movements in the core indices. The Russell 2000 made a gain of 0.7%, with the NASDAQ composite also in green with a marginal 0.1% increase. However, the S&P/TSX Venture Composite Index took a hit, sliding down by 0.7%. In the secondary indices, a consistent growth was visible as all three indices posted positive increments, with the Dow Jones U.S. Semiconductors Index and NASDAQ Biotechnology rising by 0.7% and 0.5% respectively.

On the news front, the major theme revolved around the Federal Reserve's actions and statements. The rates were held steady, a decision that Federal Reserve Chair Powell says is backed by a solid U.S. economy. Powell’s comments emphasize maintaining low inflation and high employment, and signify the Fed's readiness to respond to significant economic developments. However, uncertainty over tariffs and their impact were also acknowledged (CNBC Television, Bloomberg Markets and Finance). The Fed also signaled patience on rates given the inflation and trade situation (Proactive Investors).

In addition, Jeffrey Gundlach of DoubleLine asserts that Powell is aware of the upside risk to inflation (CNBC Television). This ties in with Powell's statements about tariff-induced price increases and potential rises in energy prices.

To summarize, the day showcased a balanced performance in small-cap, with significant events nationally potentially influencing future trends. A cautious watch on policies and market reactions is advisable.

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📈 Biggest Gainers 

• Webull Corporation Incentive Warrant ($BULLZ NASDAQ) +51%:
  Market Cap: 115,575,178
  
  This corporation operates a digital platform providing trading services, wealth management products, market data, user community, and investor education.
  

• Innoviz Technologies Ltd. ($INVZ NASDAQ) +20%:
  Market Cap: 262,629,840
  
  Designs and manufactures LiDAR sensors and software for autonomous vehicles, with operations in Europe, Asia Pacific, Middle East, Africa, and North America.
  
  The substantial 20% increase in the stock value was principally caused by recent announcements of a strategic partnership with Cogniteam to enhance safety and security solutions, alongside recognition as a Top 5 development program for L3 Global-Production Vehicle Platform. (1, 2)
  

📉 Biggest Losers

• Wolfspeed, Inc. ($WOLF NYSE) 78,330,578 shares traded with an average volume of 33,693,385 (-30%):
  Market Cap: 135,893,496
  
  Provides silicon carbide and gallium nitride materials, RF and power devices for industries such as telecoms, military and renewable energy.

• 3D Systems Corporation ($DDD NYSE) -21%:
  Market Cap: 200,527,110
  
  Provides 3D printing and digital manufacturing solutions globally, offering 3D printers, design software, print materials, and related services across various industries.
  
  The stock's 21% drawback was provoked by a series of public relations releases indicating the launch of multiple investor lawsuits against the company, and the announcement of significant financial restructuring actions including the issuance of $92 Million of Convertible Senior Secured Notes due 2030 and the retirement of $180 Million of existing Convertible Senior Notes due 2026. (1, 2, 3,)
  

• Critical Metals Corp. ($CRML NASDAQ) -20%:
  Market Cap: 214,952,752
  
  As a subsidiary of European Lithium Limited, it operates as a mining exploration and development company, seeking lithium and rear earth element deposits in New York.
  
  The recent 20% decrease in the stock's value was significantly influenced by public relations releases such as an announcement of a secured US$120,000,000 LOI for a 15-year term loan from the US Federal Government Bank for the development of a project in Greenland, and a conference presentation on best practices for the safe and responsible handling of batteries. (1, 2)
  

• ProKidney Corp. ($PROK NASDAQ) -19%:
  Market Cap: 203,805,367
  
  This clinical-stage biotechnology firm specializes in developing cellular therapies for moderate to severe diabetic kidney disease and urinary tract anomalies.

🚀 Biggest Movers

• Opendoor Technologies Inc. ($OPEN NASDAQ) 92,334,241 shares traded with an average volume of 64,670,877 (+2%):
  Market Cap: 422,529,676
  
  This is a digital platform for residential real estate that offers online home buying and selling, along with title insurance and escrow services.
  

• Tilray Brands, Inc. ($TLRY NASDAQ) 50,249,980 shares traded with an average volume of 26,386,357 (-0%):
  Market Cap: 393,085,649
  
  Engages in the cultivation, production, distribution, and marketing of medical cannabis, beverage alcohol, and wellness products globally.

🏦 Recent & Relevant IPOs

The most noteworthy recent small-cap stock IPOs include CAI International with a market cap of $541 million and Slide Insurance Holdings valued at $391 million.

• Blue Acquisition Corp. Unit ($BACCU) on NASDAQ (2025-06-13). Market Cap: $175,000,000

• AIRO Group Holdings, Inc. Common Stock ($AIRO) on NASDAQ (2025-06-13). Market Cap: $60,000,000

• BEST SPAC I Acquisition Corp. Unit ($BSAAU) on NASDAQ (2025-06-13). Market Cap: $55,000,000

• Jyong Biotech Ltd. Ordinary Shares ($MENS) on NASDAQ (2025-06-17). Market Cap: $20,000,002

• CAI International, Inc. ($CAI) on NASDAQ (2025-06-18). Market Cap: $541,176,460

• Slide Insurance Holdings, Inc. Common Stock ($SLDE) on NASDAQ (2025-06-18). Market Cap: $391,000,000

• Happy City Holdings Ltd ($HCHL) on NASDAQ (2025-06-18). Market Cap: $8,050,000

Post Of The Day

👀 Stocks To Add To Your Watchlist

$QMCO ( ▼ 12.28% ) · NASDAQ Global Market — Quantum Corporation
Technology/Computer Hardware
YTD: -82.341%
Market Cap: $62,722,356

A leader in digital video and unstructured data storage solutions, has recently experienced volatility in its stock performance. With a current price of $9.61, the stock has ranged from $2.22 to $90.64 over the past year.

Despite a recent 2.83% decline, insider trading activity suggests confidence among executives, highlighted by multiple share acquisitions at zero cost. Coupled with a high volume of insider trades and an upcoming fiscal Q4 2025 earnings report, investors should closely monitor QMCO for potential growth opportunities stemming from its innovative storage and data management solutions.

$PRAA ( ▲ 0.27% ) · NASDAQ Global Select — PRA Group, Inc.
Financial Services/Financial - Credit Services
YTD: -28.898%
Market Cap: $580,603,368

Has shown resilience in a fluctuating financial market with its consistent focus on the acquisition and collection of nonperforming loans. Despite broader market uncertainties due to interest rates and trade tensions, PRAA's strategic initiatives have led to a 19% growth in portfolio purchases and a record Estimated Remaining Collections (ERC) of $7.8 billion in Q1 2025.

The recent promotion of Owen James to president of PRA Group Europe signals further expansion and fortification of their global leadership position in the debt collection market. This, combined with a genuine bounce back in stock performance in recent trading sessions, positions PRAA as a stock with potential upside for investors looking at the financial services sector.

$DMRC ( ▼ 1.4% ) · NASDAQ Global Select — Digimarc Corporation Technology/Information Technology Services
YTD: -68.109%
Market Cap: $276,296,640

Despite a challenging legal landscape highlighted by multiple securities fraud lawsuits, Digimarc Corporation (DMRC) has demonstrated resilience in stock performance amidst sector volatility. Over recent sessions, DMRC recorded a modest increase, climbing to a close of $12.82, with a notable trading volume.

Concurrently, the Technology sector has shown fluctuating yet overall positive performance. Investors may find opportunity in DMRC's ability to maintain stability and potentially capitalize on sector trends. Consider monitoring DMRC closely for signs of continued resilience or sector-related growth cues.

$CLRB ( ▼ 20.16% ) · NASDAQ Capital Market — Cellectar Biosciences, Inc. Healthcare/Biotechnology
YTD: +12.496%
Market Cap: $16,842,203

CLRB recently highlighted a substantial milestone with the FDA granting Breakthrough Therapy Designation for its leading candidate, iopofosine I-131, targeting relapsed/refractory Waldenstrom macroglobulinemia.

Coupled with significant insider buying and a pressing one-for-thirty reverse stock split to bolster its market position, this biopharmaceutical player is making aggressive strides in cancer treatment innovations. Investors should monitor CLRB's upcoming regulatory interactions and clinical advancements for potentially enhanced stock valuation.

$FRBA ( ▼ 0.27% ) · NASDAQ Global Market — First Bank
Financial Services/Banks - Regional
YTD: +6.866%
Market Cap: $367,716,272

In light of First Bank's recent announcement to complete a $35 million subordinated debt offering, this regional bank exhibits a strategic financial maneuver to strengthen its balance sheet.

By redeeming its outstanding $30 million subordinated notes, First Bank is poised for operational flexibility and growth, showcasing a robust financial position despite the market's challenges. This move, alongside a stable stock performance with slight volatility, suggests potential for patient investors. FRBA remains a stock to watch within the financial services sector.

That’s it for this episode!

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